Lin Xiucheng, the actual controller of Sanan Optoelectronics, has been placed under criminal detention on suspicion of embezzlement and misappropriation of funds.

On the evening of September 24, Sanan Optoelectronics, a leading LED chip manufacturer, issued an announcement stating that it had received notice from the family of its actual controller, Lin Xiucheng. Lin Xiucheng has been placed under criminal detention by public security authorities on suspicion of embezzlement and misappropriation of funds.

In its announcement, Sanan Optoelectronics emphasized that the company’s production, operations, and management are currently normal. Since July 10, 2017, Lin Xiucheng has not held any position within the company; therefore, this matter is unrelated to the company and will not have a significant impact on its operations or financial performance.

After Six Months of Detention, the Case Has Entered Criminal Proceedings

On March 21, 2026, Sanan Optoelectronics was informed by its indirect controlling shareholder, Fujian Sanan Group, that Lin Xiucheng had been detained and placed under investigation by the national supervisory authority. The company disclosed this information publicly on March 23. On the day the news broke, Sanan Optoelectronics opened at the daily limit down, with its market capitalization shrinking from over RMB 80 billion to RMB 74.29 billion.

Six months later, the announcement on September 24 signals new developments in the case: the matter has transitioned from supervisory detention to criminal proceedings, and the alleged offenses have been explicitly identified for the first time as embezzlement and misappropriation of funds.

Fundamentals of the Listed Company: Operations Remain Unaffected

The company’s interim report for 2026 shows that Sanan Optoelectronics recorded revenue of RMB 6.468 billion in the first half of the year, up 8.97% year-on-year compared to the same period last year after excluding proceeds from precious metal scrap. Net loss stood at RMB 97.9 million. Notably, the optoelectronics business segment demonstrated significant improvements in both revenue and profitability, achieving profitability in the second quarter.

As of the close of trading on September 24, Sanan Optoelectronics was trading at RMB 12.47 per share, with a total market capitalization of approximately RMB 62.21 billion.