Sanan Optoelectronics received a subsidy of 725 million yuan and another project started

Yesterday evening (6/29), Sanan Optoelectronics issued an announcement announcing that Hunan Sanan had received two government subsidies from the Commerce and Market Supervision Bureau of the Hunan Xiangjiang New Area Management Committee, namely: 525 million yuan in equipment purchase subsidies and 200 million yuan in incentives for the second phase of construction. Including the 6.2 million yuan in scientific and technological progress awards, outstanding product awards and other awards received on January 5 this year, as well as the 209.6356 million yuan in industrial support funds received on March 30, Hunan Sanan received a total of about 940 million yuan in government subsidies in the first half of the year.

According to Sanan Optoelectronics statistics, from April 1 to June 29, 2023, the company and its subsidiaries received other income-related government subsidies of 26.7159 million yuan. Adding the 725 million yuan this time, as well as the 50.4148 million yuan and 209.6356 million yuan in the first quarter, Sanan Optoelectronics received a total of approximately 1.012 billion yuan in government subsidies in the first half of the year. In terms of amount, Hunan Sanan received the highest proportion of subsidies.

In addition, Hubei Sanan also recently received various awards such as scientific and technological progress awards and excellent product awards worth approximately 14.15 million yuan. The construction of the Hubei Sanan Mini/Micro display industrialization project is also progressing steadily. The main products produced by this project include Mini/Micro LED epitaxial wafers and chips. The products are currently supplied to customers such as Samsung, CSOT, Tianma, and Konka.

In terms of performance, Hubei Sanan performed well last year, achieving revenue of 284 million yuan, a year-on-year increase of 316%, and its net profit also successfully turned a profit of 18 million yuan. This year, against the background of the recovery of downstream demand and the further development of emerging applications, the growth space and growth rate of Mini/Micro LED are highly optimistic. Hubei Sanan is also expected to achieve incremental sales as terminal shipments increase, driving performance to a higher level. The above-mentioned subsidies are also expected to have a positive impact on Sanan Optoelectronics' performance this year.

The vehicle-grade power chip technical transformation project started

According to Hunan Daily, on June 27, 83 projects in Hunan Xiangjiang New District were completed. One of them was Hunan Sanan's vehicle-grade power chip mass production consistency improvement technical transformation project. The total investment of this project is 300 million yuan, which is mainly aimed at upgrading production equipment and supporting facilities for the current product line.

The Hunan Sanan Semiconductor Project has a total investment of 16 billion yuan and is constructed in two phases. The first phase project has been put into production in June 2021, establishing the country's first SiC vertically integrated industrial chain covering substrate materials, epitaxial growth, wafer manufacturing to packaging and testing. According to news in May, Hunan Sanan’s SiC production capacity has climbed to 15,000 pieces/month. The second phase of the project is expected to be completed this year. At present, the main building of the factory has been closed down, and the supporting annual production capacity will reach 360,000 pieces after reaching capacity.

Last year, Hunan Sanan’s cumulative shipments of SiC diodes exceeded 100 million units, and 7 products passed vehicle certification and began to be gradually shipped. In terms of R&D progress, the R&D of 8-inch substrates is currently progressing well. Last year, Hunan Sanan performed well, achieving annual revenue of 639 million yuan, a significant year-on-year increase of 909%. From January to February this year, Hunan Sanan's business maintained a rapid growth trend. Sales in two months are expected to exceed 200 million yuan, and customer orders amounted to 559 million yuan.