Breaking: Sanan Optoelectronics is required to pay an additional 86.41 million yuan in taxes and late-payment penalties.

On the evening of July 31, Sanan Optoelectronics issued two significant announcements.

Sanan Optoelectronics: Subsidiary Required to Pay Back Approximately RMB 86.41 Million in Taxes and Late Payment Penalties

Sanan Optoelectronics announced that its wholly owned subsidiary, Quanzhou Sanan Semiconductor Technology Co., Ltd. (hereinafter referred to as “Quanzhou Sanan”), recently conducted a self‑inspection of tax‑related matters in accordance with applicable tax laws and regulations. The self‑inspection revealed that Quanzhou Sanan is required to pay back approximately RMB 86.4095 million in taxes and late payment penalties.

As of the date of this announcement, Quanzhou Sanan has already paid RMB 54.7367 million in taxes, while the remaining balance is currently being coordinated and confirmed with the tax authorities.

The company stated that this tax matter does not involve any administrative penalties and will not affect its normal business operations.

The announcement further indicated that the RMB 86.4095 million to be paid will be recognized as current-period expenses in 2026, with the specific impact on the net profit attributable to shareholders of the listed company for 2026 subject to the final audit findings of the certified public accounting firm.

Sanan Optoelectronics: General Manager Lin Kechuang Has Not Yet Executed the Share‑Purchase Plan

In addition, Sanan Optoelectronics released on the same day an update on the progress of the general manager’s share‑purchase plan.

Recall that on March 30, 2026, the company disclosed the “Announcement Regarding the Share‑Purchase Plan of the Chairman and General Manager.” According to the plan, General Manager Lin Kechuang intended to increase his holdings of the company’s shares through centralized bidding on the Shanghai Stock Exchange within six months starting from March 31, 2026 (inclusive), with a proposed purchase amount ranging from no less than RMB 5 million to no more than RMB 10 million.

The latest announcement indicates that, as of the date of this release, General Manager Lin Kechuang has been placed under detention measures and has not yet carried out the planned share purchases.

Sanan Optoelectronics noted that if, prior to the expiration of the share‑purchase plan, Lin Kechuang remains under detention, there could be a risk that the plan may not be implemented as scheduled.

From a fundamental perspective, the simultaneous occurrence of these adverse developments has further intensified the company’s operational pressures. In 2025, the company faced overall operational challenges, posting a full-year loss and experiencing a marked decline in core business profitability. Entering 2026, the downward trend in performance has persisted; according to the latest interim results forecast, the first half of the year continues to show losses. Against this backdrop, the inclusion of nearly RMB 100 million in tax liabilities and late payment penalties into the current period’s income statement will further erode annual profits, exacerbating financial strain and compounding the already weak fundamentals.

Overall, these issues are not isolated incidents but reflect a cascading chain of risks—spanning from the actual controller and controlling shareholder down to the tax compliance of subsidiaries. Although the company has repeatedly stated in its announcements that “production and operations remain normal and shipments are unaffected,” and that production lines continue to run smoothly, uncertainties regarding corporate governance and funding have yet to be fully resolved.