Sanan Optoelectronics plans to dispose of some equipment

On February 24, Sanan Optoelectronics disclosed the "Announcement on the Disposal of Certain Equipment."

The announcement shows that Sanan Optoelectronics plans to dispose of equipment that does 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 and the end of September 2025, respectively.

Sanan Optoelectronics stated that this asset disposal is to optimize the company's product structure, improve production processes 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.

Sanan Optoelectronics is mainly engaged in the research and development, production and sales of compound semiconductor materials and devices. Its core business is epitaxial wafers and chips involving new compound semiconductor materials such as sapphire, gallium arsenide, gallium nitride, silicon carbide, indium phosphide, and aluminum nitride.

It is worth mentioning that in August last year, Sanan Optoelectronics disclosed a matter that attracted market attention, that is, it planned to cooperate with foreign investors to acquire the equity of Lumileds, and announced the latest progress of the acquisition in December of the same year.

According to the plan, Sanan Optoelectronics plans to acquire 74.5% of Lumileds’ equity, with the remaining 25.5% held by Inari Amertron Berhad. According to the data, Lumileds was formerly the LED and automotive lighting business unit of Royal Philips.

Sanan Optoelectronics has said that this acquisition will complement the company's existing LED chip and packaging business, help it quickly enter the international high-end supply chain, and use Lumileds' overseas production capacity and channels to improve its global layout and enhance its competitiveness in the automotive and special lighting fields.

In terms of performance, on January 31, Sanan Optoelectronics released a supplementary announcement for its 2025 performance forecast. According to further calculations by the company's financial department, the company's net profit range attributable to shareholders of listed companies in 2025 is expected to be adjusted from the original -200 million to -400 million yuan to -200 million to -300 million yuan.

The main reasons for the company's expected loss in this period's performance include: During the reporting period, the company's proportion of high-end LED products further increased. 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; research and development expenses increased year-on-year; the adjustment of 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; in accordance with the provisions of the "Accounting Standards for Business Enterprises", the provision for depreciation of inventories whose net realizable value is lower than the cost increased year-on-year.