Release of the detention on the Vice Chairman and General Manager of Sanan Optoelectronics

On the evening of October 7, Sanan Optoelectronics issued an announcement stating that on October 5, the company received a “Notice of Termination of Detention” from the supervisory authority, lifting the detention measures imposed on Lin Kechuang, Vice Chairman and General Manager. The announcement further noted that Lin Kechuang is now able to perform his duties normally, and the company’s production and operations remain stable.

Since March 2026, the actual controller and senior management of Sanan Optoelectronics have been successively investigated, while shares held by the controlling shareholder have been subject to multiple rounds of freezing.

Timeline of Events

Time

Event

March 21

The company received notification from Sanan Group that the actual controller, Lin Xiucheng, had been placed under detention and formally investigated by the National Supervisory Commission (announced on March 22).

March 30

Sanan Group and Sanan Optoelectronics held a press conference in Xiamen, stating that Lin Xiucheng had not held any position at the listed company since July 2017, and that a risk-management task force had been established at the group level.

April 7

The company received a notice from the Yuzhong District Supervisory Commission in Chongqing, indicating that Vice Chairman and General Manager Lin Kechuang had been placed under detention and formally investigated.

April 8

The announcement disclosed that Lin Kechuang was under detention; on the same day, it also revealed that 1.377 billion shares held by Sanan Electronics and Sanan Group had been placed under sequential freezing (representing 27.60% of the total share capital), with the two shareholders collectively having 1.470 billion shares judicially frozen—100% of their holdings.

Mid-June

29 million shares held by Sanan Electronics were placed under sequential freezing by the Siming District People’s Court in Xiamen; as of June 14, the two shareholders had a combined total of 6.963 billion shares under sequential freezing, accounting for 139.56% of the total share capital.

August 25

The semi-annual report disclosed that revenue for the first half of the year reached RMB 6.468 billion, while net profit attributable to parent company recorded a loss of RMB 97.9045 million.

August 27

The announcement stated that Lin Kechuang’s originally planned share increase—between RMB 5 million and RMB 10 million—could not be executed due to his detention, and that Chairman Lin Zhiqiang would step in to fulfill the commitment on his behalf.

August 31

Lin Zhiqiang completed his planned share acquisition, purchasing a total of 3.57 million shares worth RMB 49.8578 million, thereby concluding the share-increase program.

September 2

Creditor Lin Suzhen withdrew her bankruptcy-reorganization application against Sanan Electronics and Sanan Group from the Xiamen Intermediate People’s Court, which subsequently ruled to grant the withdrawal.

September 24

The announcement indicated that Lin Xiucheng had been criminally detained by public security authorities on suspicion of embezzlement and misappropriation of funds; as of September 23, the two shareholders had a combined total of 7.083 billion shares under sequential freezing, representing 539.79% of their holdings and 141.98% of the total share capital.

October 5

The company received a “Notice of Termination of Detention,” officially lifting the detention measures on Lin Kechuang.

October 7

The announcement confirmed that Lin Kechuang has resumed his duties.

Under relevant provisions of the Supervision Law, the termination of detention may signify either the conclusion of the investigation or a change in coercive measures; however, the company’s announcement did not disclose the outcome of the investigation.

Public records show that Lin Kechuang is the son-in-law of Lin Xiucheng, born in 1976, holds a master’s degree, and is a professor-level senior engineer. He has long been responsible for the integrated circuit and optical communications business segments within the Sanan Group, earning an annual salary of RMB 2.0996 million in 2025. His resumption of duties is expected to contribute positively to maintaining the continuity of the listed company’s daily operations.