Sanan Optoelectronics: Partial shares of the controlling shareholder to be subject to judicial enforcement

On April 13, Sanan Optoelectronics (600703) announced that the company had received an Enforcement Ruling from the Chongqing Intermediate People's Court. Due to the company's controlling shareholder Sanan Electronics failing to fulfill its obligations in a contract dispute, the court ruled to forcibly dispose of 68.562957 million unrestricted circulating shares held by Sanan Electronics within 30 trading days, accounting for 1.37% of the company's total share capital.

As of the announcement date, Sanan Electronics holds 1.214 billion shares of the company, representing 24.33%, and together with its concerted parties, the total shareholding ratio is 29.47%. All shares held have been judicially frozen.

According to the announcement, on March 24, the Chongqing Intermediate People's Court initiated enforcement proceedings in the contract dispute case between Chongqing Gaoyong Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as "Chongqing Gaoyong") and Sanan Electronics, among others. The subject matter of enforcement is the repayment of principal amounting to RMB 1 billion plus interest, etc. During the enforcement process, the Chongqing Intermediate People's Court legally froze 93 million unrestricted circulating shares of Sanan Optoelectronics held by the person subject to enforcement, Sanan Electronics. Now, the applicant for enforcement, Chongqing Gaoyong, has applied to the Chongqing Intermediate People's Court for the disposal of 68.562957 million out of the aforementioned 93 million frozen shares, on the grounds that the person subject to enforcement, Sanan Electronics, failed to fulfill the obligations determined by the effective legal documents.In accordance with the relevant provisions of the Civil Procedure Law of the People's Republic of China, the Chongqing Intermediate People's Court rules as follows:

1. Adjust the frozen status of the 68,562,957 unrestricted tradable shares of Sanan Optoelectronics held by the person subject to enforcement, Sanan Electronics, to allow sales.

2. During the enforcement period, buying, fund transfers, securities purchases, transfer of custody, and revocation of designated trading are prohibited in the capital account. The freeze period is from April 2, 2026, to March 24, 2029. The above restrictions will be lifted after the funds are deducted.

3、冻结状态调整为可售冻结之日起，30个交易日内将被执行人三安电子所持三安光电无限售流通股票共6856.2957万股强制卖出，并将变卖所得价款（含股息、红利等孳息）扣除相关费用后直接划付至重庆中院账户。

Sanan Optoelectronics announced that the proportion of shares subject to enforcement in this instance is small relative to the controlling shareholder's holding ratio. It will not result in a change of control of the company, nor will it have a significant impact on corporate governance or continuous operations.

In recent days, Sanan Optoelectronics has successively issued announcements regarding share freezes. All equity interests in the listed company held by Sanan Electronics and its controlling party, Sanan Group, acting in concert, have been judicially frozen and queued for freezing. As of April 9, the cumulative number of shares frozen for Sanan Electronics and Sanan Group totaled 1.47 billion shares, accounting for 100% of their shareholdings. Among these, queued frozen shares amounted to 1.377 billion shares, representing 93.68% of their holdings and 27.60% of the total share capital.

According to iFind data, from March 2026 to date, the company's stock price has fallen from 16.70 yuan/share to approximately 12.45 yuan/share, a cumulative decline of 25.45%, with nearly 21.2 billion yuan wiped off its total market capitalization.