Breaking: Sanan Optoelectronics Actual Controller Lin Xiucheng Placed Under Investigation

On March 22, Sanan Optoelectronics (600703.SH) announced that on March 21, 2026, it received notice from its controlling shareholder Fujian Sanan Group Co., Ltd. stating that its actual controller Lin Xiucheng has been placed under investigation and a case filed by the National Supervisory Commission.

The announcement shows that Lin Xiucheng has held no position in the company since July 10, 2017. The company stated that current production and operation management is normal, the governance structure is sound, and the above matters will not have a significant impact on the company's production and operations. The company will continue to monitor the progress of the matter and fulfill its information disclosure obligations.

Public information shows that Lin Xiucheng, born in 1955, holds a university degree and is a senior economist. He serves as Chairman and General Manager of Fujian Sanan Group Co., Ltd.

Sanan Optoelectronics is headquartered in Xiamen, Fujian Province. Data shows that Sanan Optoelectronics Co., Ltd. , formerly the listed company Huoli 28 in Hubei, went public on May 28, 1996. It was later renamed Tianyi Technology and successfully completed a backdoor listing under Sanan Optoelectronics in 2008. Sanan Optoelectronics' core business is the R&D, production, and sales of compound semiconductor materials and devices. Its main products include LED epitaxial chips, LED application products, and integrated circuit chips.

In the 1980s, Lin Xiucheng made his first fortune by acquiring scrap steel offcuts and reselling them to factories. In 1992, he co-founded the Sanan Ironmaking Plant with the Fujian Sanming Steel Mill.

In 1999, he began to devote himself to the semiconductor field. In 2000, Sanan Optoelectronics Co., Ltd. was established. In 2008, Sanan Optoelectronics completed a backdoor listing and entered the A-share market. Sanan Optoelectronics became the dominant player in China's LED chip industry, and Lin Xiucheng was once called the "LED King" of China.

In 2017, Lin Xiucheng voluntarily stepped down, and his 43-year-old eldest son, Lin Zhiqiang, succeeded him as Chairman of Sanan Optoelectronics. After taking office, Lin Zhiqiang led the team in transformation. In 2018, he led the company to invest 33.3 billion yuan in developing III-V compound semiconductor materials, LED epitaxy, chips, microwave integrated circuits, and other industries. Subsequently, Sanan Optoelectronics' market value once exceeded 200 billion yuan, with annual revenue exceeding 10 billion yuan. Later, after experiencing a cyclical downturn in the industry, Sanan Optoelectronics' latest market value is approximately 80 billion yuan.

Lin Xiucheng's two sons—eldest son Lin Zhiqiang and second son Lin Zhidong, along with his son-in-law Lin Kechuang—all hold key positions within the Sanan group. The 2026 Hurun Global Rich List shows that father and son Lin Xiucheng and Lin Zhiqiang from Sanan Optoelectronics rank third among Xiamen's wealthiest individuals with a combined wealth of 16 billion yuan.

Prior data disclosed by Sanan Optoelectronics regarding its 2025 earnings forecast shows , that for the year 2025, the company expects a net profit attributable to shareholders of -200 million to -300 million yuan; and an adjusted net profit of -750 million to -850 million yuan, compared to -511 million yuan in the same period last year.

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 increased further. Although revenue scale and profitability of the integrated circuit (IC) business both improved year-on-year, the filter and silicon carbide (SiC) businesses within the IC sector still significantly dragged down the company's profits. Meanwhile, government subsidies received by the company decreased year-on-year; R&D expenses recognized as costs increased year-on-year; adjustments due to the difference between the tentative price of precious metal waste sales and the Shanghai Gold Exchange price trend led to reduced investment income; and according to the provisions of "Enterprise Accounting Standards", the increase in inventory provision for decline in value was higher than the previous year due to net realizable values falling below cost.

From the perspective of government subsidies, Sanan Optoelectronics received 657 million yuan in government subsidies in the first three quarters of 2024, while this figure dropped to 460 million yuan in the first three quarters of 2025, a decrease of approximately 200 million yuan year-on-year.

In addition, on March 11, Sanan Optoelectronics responded to investor inquiries on an interactive platform, stating that the company has launched deep cooperation with Tsinghua University, China Mobile, and other entities in the fields of Micro LED optoelectronic devices and high-speed optical communication, jointly promoting the research and development and application verification of relevant technologies. The Micro LED light source devices produced by the company have excellent performance and have been sent to leading domestic and international enterprises for module assembly verification.

至于调查事由，官方尚未披露，目前市场说法不一。鉴于信息未经证实，中国之光网暂不评价。