Latest! Partial shares of Sanan Optoelectronics' controlling shareholder unfrozen; Xiamen XinDa receives RMB 1.011 billion in enforcement funds

Recently, Xiamen XinDa and Sanan Optoelectronics successively issued announcements disclosing significant progress in litigation enforcement and equity freezing.

1

Xiamen XinDa receives RMB 1.011 billion in enforcement funds

On June 4, Xiamen Xinda Co., Ltd. (Stock Abbreviation: Xiamen Xinda; Stock Code: 000701) issued an announcement on litigation progress, stating that it received an enforcement payment of RMB 1.011 billion and expects to increase its net profit attributable to shareholders for 2026 by RMB 540 million.

Reviewing the events, in 2020, due to sales contract disputes with Qinghai Huapeng Energy Development Co., Ltd. (hereinafter referred to as "Qinghai Huapeng") and Golmud Shenghua Mining Co., Ltd. (hereinafter referred to as "Golmud Shenghua"), Xiamen Xinda listed Lin Xiucheng, the joint and several liability guarantor, as a co-defendant, filed a lawsuit with the Intermediate People's Court of Xiamen City, Fujian Province (hereinafter referred to as the "Court"), and the case was accepted by the Court.

In August 2020, under the mediation of the Court, regarding the series of lawsuits concerning sales contract disputes between the Company and Qinghai Huapeng and Golmud Shenghua respectively, the Company voluntarily reached a mediation agreement with Lin Xiucheng and Fujian Sanan Group Co., Ltd. (hereinafter referred to as "Sanan Group") and signed for the civil mediation statement. According to the civil mediation statement, Lin Xiucheng and Sanan Group voluntarily agreed to pay the Company the claim amounts and interest for fund occupation under the relevant litigation items on schedule.

Later, as Lin Xiucheng and Sanan Group failed to fully perform their obligations under the civil mediation statement, Xiamen Xinda continued to promote the performance of the civil mediation statement through measures such as negotiations with all parties and judicial procedures. The Court took preservation measures in accordance with the law and froze the shares of Sanan Optoelectronics Co., Ltd. (Stock Abbreviation: Sanan Optoelectronics; Stock Code: 600703) held by Sanan Group.

The latest announcement shows that recently, the Court informed about the successful auction of the Sanan Optoelectronics shares involved in the case and served the "Execution Ruling of the Intermediate People's Court of Xiamen City, Fujian Province" to Xiamen Xinda. According to the Court's execution inquiry record with Xiamen Xinda, the Court has publicly auctioned 74,273,746 shares of Sanan Optoelectronics held by Sanan Group in accordance with the law, all of which were sold, and has disbursed execution funds of approximately RMB 1.011 billion to Xiamen Xinda.

Xiamen Xinda stated that, as of the announcement date, the company has received the aforementioned enforcement funds issued by the court.

Xiamen Xinda further stated that the company has not yet received the notice of case closure. Preliminary calculations estimate that the enforcement funds received this time will impact the net profit attributable to shareholders of the parent company in the 2026 consolidated financial statements by approximately RMB 540 million.

According to available information, Xiamen Xinda went public on the Shenzhen Stock Exchange in 1997. Its main businesses include four major segments: supply chain, digital intelligence technology, electronic technology, and automotive distribution. In the optoelectronics business within the electronic technology segment, Xiamen Xinda focuses on the research, development, production, and sales of lighting applications and LED packaging products. Its product portfolio covers LED road lighting luminaires, LED indoor lighting luminaires, and more, widely applied in special lighting, indoor and outdoor lighting, and other fields. The company has formed a business pattern with coordinated development in two major areas: application lighting and display packaging.

In terms of performance, in 2025, Xiamen Xinda achieved revenue of approximately RMB 32.378 billion, a year-on-year decrease of 26.19%; it achieved net profit attributable to shareholders of the listed company of approximately RMB 15.2422 million, a year-on-year increase of 101.88%. The company successfully implemented multiple key domestic lighting projects, including municipal street light renovations, subway, airport, and underground parking garage intelligent tube projects, and leveraged Alibaba.com to build an online global operation channel, driving a 226% year-on-year growth in sales revenue for lighting application businesses; it laid out high-value-added fields such as engineering lighting and commercial photography, entering high-end customized markets like outdoor energy-saving screens, DCI cinema screens, translucent screens, and others, with the proportion of new products in display packaging products continuing to rise.

2

Sanan Optoelectronics: Partial Shares of Controlling Shareholder Unfrozen

Sanan Optoelectronics announced on June 3 that the transfer registration for all 74.27 million unrestricted circulating shares of its indirect controlling shareholder, Fujian Sanan Group Co., Ltd., which were subject to judicial auction, has been fully completed.

From the perspective of the transferees, Xiamen ITG Innovation Investment Co., Ltd. acquired 63.0937 million shares, accounting for 1.26% of the total share capital, becoming the largest buyer in this auction. The company is part of the Xiamen ITG Holding Group Co., Ltd. system, which is a state-owned enterprise group directly administered by the Xiamen Municipal Government.

Overall, all 74.27 million shares whose transfer has been completed account for nearly 1.5% of the total share capital. In other words, Sanan Optoelectronics has lost nearly 1.5% of its equity to Xiamen state-owned assets and large individual investors.

It is worth noting that, concurrently with the completion of the share auction, changes also occurred in the judicial freeze status at the level of Sanan Optoelectronics’ controlling shareholder.

On June 6, Sanan Optoelectronics released its latest announcement. The company received a notice from its controlling shareholder, Xiamen Sanan Electronics Co., Ltd. (hereinafter referred to as "Sanan Electronics"), on June 5, 2026. Sanan Electronics and Sanan Group learned through inquiries with China Securities Depository and Clearing Corporation Limited that part of the shares held by Sanan Electronics and Sanan Group in the company have been unfrozen.

The specific details are as follows: On June 4, the First Intermediate People's Court of Chongqinglifted the judicial freeze on 29,087,743 shares held by Sanan Electronics in the company and the waiting-list freeze on 1,016,911,084 shares, and lifted the waiting-list freeze on 182,359,796 shares held by Sanan Group in the company.

This unfreezing relates to a case involving another applicant for enforcement, not Xiamen Xinda. Nevertheless, this indicates that the Sanan group is making efforts to dismantle the "judicial shackles" binding it.