Regarding the reasons for the pre-loss, Sanan Optoelectronics stated that during the reporting period, the proportion of the company's high-end LED products further increased, although the revenue scale and profitability of the integrated circuit business improved year-on-year, but the filter and SiC businesses within the integrated circuits still significantly dragged down the company's profits. At the same time, government subsidies received by the company decreased year-on-year; R&D expenses recognized as costs increased year-on-year; investment income decreased due to adjustments for the difference between the tentative price of precious metal waste sales and the price trend of the Shanghai Gold Exchange; in accordance with the provisions of "Enterprise Accounting Standards", the provision for inventory impairment (where net realizable value is lower than cost) increased year-on-year. It is reported that starting from 2022, Sanan Optoelectronics' net profit attributable to the parent company has shown a downward trend. The net profit attributable to the parent company for 2022, 2023, and 2024 was 685.1 million yuan, 366.6 million yuan, and 252.8 million yuan, respectively. 值得注意的是，此次预亏是三安光电2008年上市以来的首次年度亏损，引发市场广泛关注。若本次成功处置设备资产，预计会对公司现金流有较好的补充。 Facing the pains of transformation, Sanan Optoelectronics has launched a series of actions. Through asset optimization, cash management, and supply chain rights protection, it has demonstrated its determination to break through and transform.
Dispose of old equipment, net value 447 million
On the evening of February 24, Sanan Optoelectronics announced that it plans to dispose of equipment not meeting business needs . The original book value of this batch of equipment is 866 million yuan, with accumulated depreciation of 419 million yuan and a net book value of 447 million yuan. This represents approximately 1.93% and 1.86% of the company's net fixed asset book value as of year-end 2024 (audited) and end of September 2025 (unaudited), respectively. Sanan Optoelectronics stated that this asset disposal is to optimize the company's product structure, improve production processes and efficiency , which is beneficial for enhancing the company's profitability. It is expected that this asset disposal will not have an adverse impact on the company's normal production operations and profits.
4.1 billion idle funds for wealth management
Sanan Optoelectronics also announced that it will use part of its idle raised funds for cash management. The announcement states that, to improve the efficiency of using raised funds , and under the premise of ensuring the safety of the company's raised funds and the normal progress of the raised fund investment plan, according to actual needs, it plans to use a total amount of raised funds not exceeding 4.1 billion yuan to purchase high-safety, high-liquidity, and stable products (including time deposits, etc.), in order to increase capital returns, thereby obtaining corresponding cash management returns for the company and shareholders. According to Sanan Optoelectronics' announcement, the company is steadily advancing the construction of projects funded by raised capital in accordance with the usage plan. Since the construction of these projects requires a certain period, based on the progress of the raised capital-funded projects, some of the raised capital may temporarily remain idle. The company intends to reasonably utilize the idle raised capital for cash management to improve the efficiency of capital usage.
Counterattack on the 327 million arbitration case
Recently, FitTech held a major press conference to explain significant information, announcing that the China International Economic and Trade Arbitration Commission has ruled that two companies under Sanan must pay FitTech equipment costs, interest, and compensation, totaling approximately NT$1.491 billion (about RMB 327 million). Regarding the equipment sales dispute with Whit Technology, Sanan Optoelectronics responded that it will legally request judicial supervision of the arbitration award; Whit Technology's equipment has serious quality issues, causing significant losses to Sanan Optoelectronics, which will initiate arbitration proceedings shortly to claim compensation. Data shows that Whit Technology is a supplier of optoelectronic semiconductor test equipment, focusing on the manufacturing and system integration of process-related application equipment for optoelectronic semiconductors, semiconductors, and other industries. 三安光电相关负责人进一步表示，惠特科技已交付的设备不符合合同约定的技术规格，既存在硬件问题如缺件发货，也存在软件问题如抓取晶粒失败、排列间距问题、软件卡顿、机台死机等问题。三安一直积极与惠特科技进行沟通，要求其解决严重质量问题。尽管公司投入了大量人力物力协同惠特科技对软硬件进行调试，但惠特科技一直未能解决。双方一致同意后续设备暂不发货，惠特科技以所谓的“备货照片”主张进行了备货，但是照片十分模糊，照片内容无设备序列号信息，无法体现属于合同项下的设备，更无法体现备货时间及数量。Regarding the arbitration award, the aforementioned Sanan Optoelectronics representative stated that the company will legally request judicial supervision of the arbitration award from the court. It emphasizes that the fundamental contract on which the semiconductor equipment industry relies is for equipment vendors to leverage their technical capabilities and response speed to quickly convert early instability into long-term reliable competitive advantages on customer production lines; quality must achieve 'continuous, visible, and rapid improvement'. Any party that breaches this bottom line of trust will suffer backlash and penalties at the industry/supply chain level. It is reported that in January 2024, due to a dispute over equipment procurement contracts, Taiwanese semiconductor equipment manufacturer Whit Technology initiated arbitration against Sanan Optoelectronics' Hubei Sanan and Quanzhou Sanan. From 2020 to 2021, Whit Technology signed a series of contracts with Hubei Sanan and Quanzhou Sanan, under which the latter agreed to purchase from the former equipment such as sorters, automatic film-laminating machines, and flip-chip die wafer testers.
