Sanan Optoelectronics’ big move: over 400 million equipment disposal, 4.1 billion financial management, and arbitration case counterattack!

In 2025, Sanan Optoelectronics, a leading company in the domestic LED industry, will suffer an annual pre-loss for the first time in 17 years since its listing. The 2025 annual performance forecast and supplementary announcements show that according to preliminary calculations by the company's financial department, the company expects to achieve a net profit attributable to the parent company in 2025 of -200 million to -300 million yuan.
As for the reasons for the pre-loss, Sanan Optoelectronics stated that the company's proportion of high-end LED products further increased during the reporting period. Although the revenue scale and profitability of the integrated circuit business increased year-on-year, the filters and silicon carbide business in integrated circuits still weighed heavily on the company's profits.
At the same time, the government subsidies received by the company decreased year-on-year; R&D expenses increased year-on-year; the difference between the tentative sales price of precious metal scrap and the price trend of the Shanghai Gold Exchange resulted in a decrease in investment income; according to According to the provisions of the "Accounting Standards for Business Enterprises", the provision for depreciation of inventories whose net realizable value is lower than the cost has increased year-on-year.
It is reported that Sanan Optoelectronics’ net profit attributable to its parent company will show a downward trend starting in 2022. From 2022 to 2024, the net profit attributable to its parent company will be 685.1 million yuan, 366.6 million yuan, and 252.8 million yuan respectively.
It is worth noting that this pre-loss is Sanan Optoelectronics’ first annual loss since it went public in 2008, which has attracted widespread market attention. If the equipment assets are successfully disposed of this time, it is expected to be a good supplement to the company's cash flow.
Faced with the pain of transformation, Sanan Optoelectronics has launched intensive actions. Through asset optimization, cash management, supply chain rights protection and other actions, it has demonstrated its determination to break through the transformation.
Dispose of old equipment with a net value of 447 million On the evening of February 24, Sanan Optoelectronics issued an announcement stating that the company planned to dispose of equipment that did not meet business needs. The original book value of this batch of equipment is 866 million yuan, the accumulated depreciation is 419 million yuan, and the net book value is 447 million yuan, accounting for approximately 1.93% and 1.86% of the company's net book value of fixed assets at the end of 2024 (audited) and the end of September 2025 (unaudited) respectively.
Sanan Optoelectronics stated that this asset disposal is to optimize the company's product structure, improve production technology and efficiency, and is conducive to improving the company's profitability. It is expected that this asset disposal will not have an adverse impact on the company's normal production operations and profits.
4.1 billion idle funds for financial management Sanan Optoelectronics also announced that it will use part of the idle raised funds for cash management. Announcement in progress It was mentioned that in order to improve the efficiency of the use of raised funds, and without affecting the safety of the company's raised funds and the normal progress of the raised fund investment plan, based on actual needs, it is planned to use the total raised funds not to exceed 4.1 billion yuan to purchase products with high safety, good liquidity, and robustness (including time deposits, etc.) to increase capital returns and obtain corresponding cash management benefits for the company and shareholders.
According to Sanan Optoelectronics' announcement, currently, the company is steadily advancing the construction of investment projects with raised funds in accordance with the use plan of raised funds. Since the construction of investment projects with raised funds requires a certain period of time, part of the raised funds will be temporarily idle according to the construction progress of the investment projects with raised funds. The company plans to rationally use idle raised funds for cash management and improve the efficiency of the use of raised funds.
327 million arbitration case counterattack Recently, FitTech held a press conference to explain important information, announcing that the China International Economic and Trade Arbitration Commission had ruled that two companies under Sanan should pay FitTech the equipment price, interest and compensation, with a total amount of approximately NT$1.491 billion (approximately RMB 327 million).
Regarding the equipment sales dispute with Whit Technology, Sanan Optoelectronics responded that Sanan will submit a request to the court for supervision of the arbitration award in accordance with the law; Whit Technology's equipment has serious quality problems, causing serious losses to Sanan Optoelectronics, and Sanan Optoelectronics will file an arbitration claim in the near future.
Information shows that FitTech is a supplier of optoelectronic semiconductor testing equipment. It focuses on the manufacturing and system integration of application equipment related to industrial processes such as optoelectronic semiconductors and semiconductors, and sells it globally under its own brand FitTech.
The relevant person in charge of Sanan Optoelectronics further stated that the equipment delivered by Whit Technology does not meet the technical specifications agreed in the contract. There are both hardware problems such as missing parts in delivery, and software problems such as failure to capture the dies, arrangement spacing issues, software lags, and machine crashes. etc. questions. Sanan has been actively communicating with Huite Technology and asking it to solve serious quality problems. Although the company invested a lot of manpower and material resources to cooperate with Whit Technology to debug the software and hardware, Whit Technology has been unable to solve the problem. Both parties agreed that subsequent equipment would not be shipped for the time being. Huite Technology used so-called "stocking photos" to prepare the equipment. However, the photos were very blurry and contained no equipment serial number information. They could not reflect the equipment under the contract, let alone the time and quantity of the equipment. Regarding the arbitration award, the relevant person in charge of Sanan Optoelectronics stated that the company will submit a request to the court for supervision of the arbitration award in accordance with the law.
He emphasized that the fundamental contract for the survival of the semiconductor equipment industry is that equipment manufacturers can quickly transform early instability into long-term reliable competitive advantages on customer production lines through their technical capabilities and response speed; quality must achieve "continuous, visible, and rapid improvement." Any party that violates this bottom line of credit will suffer backlash and punishment at the industry chain level.
It is reported that in January 2024, due to an equipment purchase contract dispute, Taiwanese semiconductor equipment manufacturer Whit Technology filed an arbitration against Hubei Sanan and Quanzhou Sanan, both of Sanan Optoelectronics. cut.
From 2020 to 2021, Huite Technology signed a series of contracts with Hubei Sanan and Quanzhou Sanan, agreeing that the latter will purchase sorting machines, automatic lamination machines, flip-chip wafer spotting machines and other equipment from the former.