Sanan Optoelectronics Co Ltd

Sanan Optoelectronics announced on the evening of September 24 that its actual controller, Lin Xiucheng, has been criminally detained by public security authorities on suspicion of embezzlement and misappropriation of funds. The company had previously disclosed that Lin Xiucheng was placed under lien and investigation by supervisory authorities, and on September 24, 2026, it received notice from his family that he had been detained. Lin Xiucheng has not held any position at the company since July 10, 2017. The company stated that production, operations, and management remain normal, that this matter is unrelated to the company, and that it will not have a significant impact on production and operations. Sanan Optoelectronics was founded in November 2000 and is headquartered in Xiamen, Fujian Province. It is a globally renowned compound semiconductor research, manufacturing, and services enterprise. On September 24, Sanan Optoelectronics closed down 2.81 percent at 12.47 yuan per share, with a total market value of 62.2 billion yuan. Lin Xiucheng was born in 1956 in Anxi County, Quanzhou, Fujian Province. He controls Sanan Optoelectronics through Sanan Group, and the chairman is currently his eldest son, Lin Zhiqiang. The 2026 Hurun Global Rich List shows that Lin Xiucheng and his son ranked 2,044th with a fortune of 16 billion yuan, placing third among listed billionaires from Xiamen. In 2010, he was the richest person in Xiamen on the Forbes rich list.

On the evening of September 24, multiple listed companies on the Shanghai and Shenzhen stock exchanges issued major announcements. Sanan Optoelectronics announced that it had received notice from the family of its actual controller Lin Xiucheng that Lin had been criminally detained by public security authorities on suspicion of embezzlement of his position and misappropriation of funds. Lin has not held any position in the company since July 10, 2017, and the company said the matter is unrelated to the company and will not have a material impact on production and operations. Hengtong Optoelectronics plans to issue shares to specific investors to raise no more than 6.636 billion yuan, for projects including research and production of next-generation optical fiber, construction of high-end optical new materials in Inner Mongolia, and research and development of advanced CPO packaging. Guanghuan Xinwang plans to make an additional investment of no more than 1.265 billion yuan in the Helinger intelligent computing center project, bringing total project investment to approximately 2.5 billion yuan and raising IT load capacity from 60 to 100 megawatts to 90 to 120 megawatts. China Life Insurance plans to subscribe for capital contributions of no more than 4.5 billion yuan in a partnership with total subscriptions of no more than 6 billion yuan, focusing on high-quality unlisted equity in the artificial intelligence and semiconductor sectors. Shandong Gold Mining has adjusted its 2026 gold production plan from no less than 49 tonnes to between 36 and 38 tonnes. The company's mined gold output in 2025 was 48.89 tonnes, and net profit attributable to the parent is expected to decline year on year in 2026. In addition, Zhongji Innolight completed a buyback of 5.6531 million shares for 4.997 billion yuan, Jifeng Auto Parts' controlling subsidiary received a nomination for a passenger car seat assembly project with an estimated total life-cycle value of 9.2 billion yuan, and EVE Energy plans to transfer a 45 percent stake in Hubei Enjie New Materials for 1.15 billion yuan.

Jifeng Shares announced that its controlling subsidiary has secured a passenger car seat assembly project nomination, with an estimated total lifecycle value of 9.2 billion yuan. On the same evening, Halo New Network plans to make an additional investment of 1.265 billion yuan in the Helinger Intelligent Computing Center project, China Life plans to contribute no more than 4.5 billion yuan to participate in a partnership enterprise investing in high-quality unlisted equity in the artificial intelligence and semiconductor sectors, and Digital Zhengtong's wholly-owned second-tier subsidiary plans to purchase servers for 576 million yuan. Biwin Storage completed its first buyback of 1.0447 million shares on the same day at a cost of 222 million yuan; Seres' largest shareholder and its concert parties increased their holdings by 4.1501 million shares, Inovance Technology's largest shareholder plans to increase holdings by 150 million to 200 million yuan, and Chacha Food plans to buy back shares worth 50 million to 100 million yuan. China Railway Signal and Communication won three important railway market projects from July to August, with a total value of approximately 976 million yuan; ST Yitong will have its delisting risk warning removed starting September 29. In addition, Montage Technology's third-largest shareholder WLT plans to reduce its holdings by no more than 2.33 million shares, and Sanan Optoelectronics' actual controller Lin Xiucheng has been criminally detained on suspicion of embezzlement and misappropriation of funds.

Sanan Optoelectronics released its 2026 interim report, showing operating revenue of 6.47 billion yuan, down 28.0% year on year, and a net loss attributable to the parent company of 97.9 million yuan, down 155.5% year on year. Second-quarter operating revenue was 3.56 billion yuan, down 23.8% year on year, while the net loss attributable to the parent company widened to 165 million yuan from 35.42 million yuan in the same period last year. The company is mainly engaged in the research, development, production and sales of compound semiconductor materials and devices, with core products including sapphire, gallium arsenide and gallium nitride. Its LED epitaxial chip business achieved operating revenue of 3.103 billion yuan, up 11.81% year on year. Management said that in response to rising raw material prices, prices of some LED chips, radio frequency chips, power electronics chips and optical technology chips have been raised.

Sanan Optoelectronics released its semi-annual report for 2026, achieving operating revenue of 6.468 billion yuan, down 28.04% year-on-year. Net profit attributable to shareholders of the listed company was a loss of 97.9 million yuan, swinging to a loss from a profit a year earlier. The company posted a net loss of 165 million yuan in the second quarter, compared with a net profit of 67 million yuan in the first quarter, meaning the second quarter swung from profit to loss on a quarter-on-quarter basis.

Sanan Optoelectronics announced that General Manager Lin Kechuang has been placed under detention, and his share purchase plan has not yet been implemented. If the detention is not lifted before the plan's expiration, the plan may face the risk of not being implemented on schedule. The company achieved revenue of 2.907 billion yuan in the first quarter of 2026, with net profit attributable to the parent company of 67.49 million yuan.

Sanan Optoelectronics announced that its wholly-owned subsidiary, Quanzhou Sanan Semiconductor Technology Co., Ltd., recently conducted a self-inspection and needs to pay back taxes and late fees totaling approximately 86.4095 million yuan. As of the announcement date, 54.7367 million yuan has been paid, and the remaining portion is being communicated and confirmed with the tax authorities. This tax-related matter does not involve administrative penalties and will not affect the company's normal operations. The back payment amount will be recorded in the current profit and loss for 2026.

Sanan Optoelectronics' controlling shareholder Sanan Electronics has had 8.7 million company shares frozen under rotation, accounting for 0.77% of its holdings and 0.17% of the company's total share capital. The freeze was applied by the tax bureau of Xiamen Torch High-Tech Industrial Development Zone under the State Taxation Administration due to tax-related matters involving Sanan Electronics. As of July 22, 2026, the cumulative frozen shares of controlling shareholders Sanan Electronics and Sanan Group reached 1.312 billion shares, representing 100% of their holdings and 26.30% of the company's total share capital. After this rotational freeze, the cumulative shares frozen under rotation for Sanan Electronics and Sanan Group reached 7.012 billion shares, accounting for 534.36% of the shares held by the two entities and 140.55% of the company's total share capital. In the first quarter of 2026, Sanan Optoelectronics achieved revenue of 2.907 billion yuan and a net profit attributable to the parent company of 67.49 million yuan.