Under the shadow of the actual controller being detained for investigation,Sanan Optoelectronicshas recently issued multiple announcements.

Controlling shareholder's shares frozen

On the evening of March 29, Sanan Optoelectronics announced that the companycontrolling shareholder, Xiamen Sanan Electronics Co., Ltd. (hereinafter referred to as "Sanan Electronics"), and its indirect controlling shareholder, Fujian Sanan Group Co., Ltd. (hereinafter referred to as "Sanan Group"), have had their company shares judicially frozen and subject towaiting list freezing.

The announcement shows that the applicants for the freezing of shares held by Sanan Optoelectronics are the Chongqing No. 1 Intermediate People's Court and the Chongqing High People's Court; the applicants for the freezing of shares held by Sanan Group are the Xiamen Intermediate People's Court and the Ezhou Intermediate People's Court of Hubei Province.

Currently, Sanan Optoelectronics has a cumulative total of 1.214 billion frozen shares, accounting for 100% of its shareholding, and 24.33% of the company’s total share capital; Sanan Group has a cumulative total of 257 million frozen shares, accounting for 100% of its shareholding, and 5.14% of the company’s total share capital. The two shareholders have a combined total of 1.47 billion frozen shares, accounting for 29.47% of the company’s total share capital. In addition, another 850 million shares are under waiting-list freezing, accounting for 17.04% of the company’s total share capital, with the freezing applicants also being courts in Chongqing, Xiamen, Ezhou and other places.

The company stated that Sanan Optoelectronics and Sanan Group have not yet received the legal documents, notices or other information regarding the aforementioned judicial freezing and waiting-list freezing. The current freezing of shares will not have a significant impact on the company’s control, equity structure, corporate governance, etc. If the aforementioned frozen shares are not properly resolved in the future, it may lead to situations such as forced transfer and judicial auction, thereby posing a risk to the stability of the company’s control.

The announcement stated that Sanan Grouphas formed a specialized team to address the matter of frozen shares, is actively communicating with creditors to safeguard their legitimate rights and interests, and the government has also intervened to actively coordinate and promote the speedy resolution of debt issues.

Chairman and General Manager Plan Joint Share Increase

Also on the evening of March 29, Sanan Optoelectronics issued an announcement declaring its share increase plan.

The announcement stated that, based on confidence in the company’s future development prospects and recognition of its long-term investment value, and to enhance investor confidence and protect investors’ interests, the Company Chairman Lin Zhiqiang (son of Lin Xiucheng) and Vice Chairman and General Manager Lin Kechuang intend to implement a share increase plan.

According to the increase plan, Lin Zhiqiang and Lin Kechuang will, within six months starting from March 31, 2026 (inclusive) (i.e., until September 30, 2026), increase their holdings of A-shares of the listed company through centralized bidding via the Shanghai Stock Exchange system. Regarding the increase amount, Lin Zhiqiang plans to increase his holdings by no less than RMB 20 million and no more than RMB 40 million; Lin Kechuang plans to increase his holdings by no less than RMB 5 million and no more than RMB 10 million. The funding sources for both individuals’ increases will be their own funds or self-raised funds.

Prior to the disclosure of this increase announcement, Lin Zhiqiang did not hold any shares of the company (shareholding quantity was 0 shares), while Lin Kechuang held approximately 1.75 million shares of the company, accounting for 0.04% of the company’s total share capital.

It is worth noting that this announcement was released only one week after the disclosure of the announcement that the company’s actual controller, Lin Xiucheng, was detained for investigation by the National Supervisory Commission. On the 22nd of this month, Sanan Optoelectronics announced that the company’s actual controller, Lin Xiucheng, had been detained and placed under investigation. Breaking! Sanan Optoelectronics’ actual controller Lin Xiucheng detained for investigation

Received government subsidies

In addition, Sanan Optoelectronics issued an announcement regarding the receipt of government subsidies. From January 1, 2026, to March 27, 2026, Sanan Optoelectronics and its subsidiaries received government subsidy funds related to income, which did not trigger information disclosure obligations or meet disclosure standards, amounting to approximately RMB 20.0711 million.

The amount of deferred income amortized and transferred to other income for the company in the first quarter of 2026 is expected to be RMB 146.0000 million.

Sanan Optoelectronics stated that the combined total of the above two items is approximately RMB 166.0711 million, accounting for 65.68% of the net profit attributable to shareholders of the listed company in the most recent audited period.

Whether Sanan Optoelectronics can resolve the risk of control loss and stabilize its operations will be the focus of investors' attention in the coming period. It is evident from the frequent announcements that, facing the dual pressures of the actual controller's detention and equity freezing, the company is stabilizing the situation through measures such as senior management share purchases, government-coordinated relief, and policy subsidies. China Light Network will continue to monitor subsequent developments.