The actual controller's detention leads to the controlling shareholder's shares being fully frozen again. Sanan Optoelectronics' Chairman and General Manager plan to jointly increase their holdings.

With thousands of listed-company announcements to review every day, which ones should you focus on? When it comes to major event announcements that can run dozens or even hundreds of pages, what exactly matters? If there are a lot of professional terms in an announcement, how do you know whether they’re good news or bad? Please take a look at Caixin Financial News’ “Rapid Read of Announcements” column—our reporters stationed across the country will bring you accurate, fast, and professional interpretations on the night the announcements are released.

Caixin Financial News March 29 (Reporter Fang Yanbo): While the controversy surrounding the de facto controller being detained for investigation has not yet quieted down, the shares held by the controlling shareholder of Sanan Optoelectronics (600703.SH) have also been subject to a full share judicial freeze and a subsequent pre-freeze.

Tonight, the company released an announcement stating that the controlling shareholder Xiamen Sanan Electronics Co., Ltd. (hereinafter “Sanan Electronics”) and the indirectly controlling shareholder Fujian Sanan Group Co., Ltd. (hereinafter “Sanan Group”) have both had their company shares judicially frozen and pre-frozen.

According to the announcement, the application for freezing the shares held by Sanan Electronics is filed by the Chongqing First Intermediate People’s Court and the Chongqing Higher People’s Court; the applicants for freezing the shares held by Sanan Group are the Xiamen Intermediate People’s Court and the Ezhou Intermediate People’s Court in Hubei Province.

At present, Sanan Electronics has cumulatively frozen 1.214 billion shares, accounting for 100% of the shares it holds, and 24.33% of the company’s total share capital; Sanan Group has cumulatively frozen 257 million shares, accounting for 100% of the shares it holds, and 5.14% of the company’s total share capital. Together, the two shareholders have frozen 1.47 billion shares, accounting for 29.47% of the company’s total share capital. In addition, 850 million shares are in a state of pre-freeze, accounting for 17.04% of the company’s total share capital, and the freeze applicants are also courts in places including Chongqing, Xiamen, and Ezhou.

In its announcement, the company stated that Sanan Electronics and Sanan Group have not yet received the legal documents, notices, or other information regarding the aforementioned judicial freeze and pre-freeze. This freeze of shares will not temporarily have a significant impact on the company’s control rights, equity structure, corporate governance, and other related matters. If the frozen shares are not properly resolved in the future, it may lead to scenarios such as forced transfer and judicial auction, thereby creating risks that may affect the stability of the company’s control rights.

Currently, the company’s production and operations are normal. The controlling shareholder and the company remain independent in terms of assets, business, finance, and other aspects, and there are no circumstances that harm the interests of listed companies, such as non-operating use of funds or improper guarantees. Sanan Group has set up a dedicated team to resolve the matter of the frozen shares. It is actively communicating with creditors to safeguard their legitimate rights and interests, and the government has also stepped in to actively coordinate and push for the early resolution of debt issues.

What is worth noting is that the disclosure of this share-freeze announcement was issued only one week after the disclosure that the company’s de facto controller Lin Xiucheng was detained and investigated by the National Supervisory Commission. On the 22nd of this month, Sanan Optoelectronics announced that its de facto controller Lin Xiucheng had been detained and filed for investigation.

Possibly due to the impact from the controlling shareholder side, Sanan Optoelectronics’ stock price has faced sustained pressure recently. Over the past week, this LED chip leader’s market value has evaporated by nearly 20 billion yuan. To stabilize market confidence, the company today disclosed a shareholding increase plan by its chairman and general manager, proposing to invest a maximum of 50 million yuan of its own funds to buy the company’s shares.

According to the announcement, the company’s chairman Lin Zhiqiang and the deputy chairman and general manager Lin Kechuang plan to increase their holdings of the company’s A shares from March 31, 2026 to September 30, 2026, using the centralized bidding method on the Shanghai Stock Exchange.

Massive information, precise interpretation—only on the Sina Finance APP