Sanan Optoelectronics Actual Controller Lin Xiucheng Under Investigation! Rose from Scrap Steel Trading to Cross into Optoelectronics Industry, Once Xiamen's Richest Person

What impact will the investigation of AI · Lin Xiucheng’s detention have on San’an Optoelectronics’ future strategy?

Source: Times Weekly Reporter: Zhao Peng

On the evening of March 22, San’an Optoelectronics (600703.SH) announced that on March 21, 2026, the company received notice from Fujian San’an Group Co., Ltd. (hereinafter referred to as “San’an Group”) that San’an Group had recently received a notice from the National Supervisory Commission regarding the actual controller, Lin Xiucheng, being detained and under investigation. Regarding the reasons for Lin Xiucheng’s detention and investigation, San’an Optoelectronics stated that they are not aware.

In the announcement, San’an Optoelectronics stated that since July 10, 2017, Lin Xiucheng has not held any position in the company. Currently, the company has a complete organizational structure and a standardized governance system, with normal production and management operations. The above matters will not have a significant impact on the company’s production and operations.

It is reported that Lin Xiucheng started his career in scrap steel trading and founded San’an Group. Around 2000, Lin Xiucheng entered the optoelectronics industry, and in 2008, San’an Optoelectronics, under his leadership, was listed via a backdoor listing. In 2010, Lin Xiucheng was also listed as Xiamen’s richest person on Forbes’ billionaire list.

On March 23, San’an Optoelectronics experienced a continuous decline, hitting the daily limit down with a 9.98% drop.

Source: Tuchong

Early Cross-Industry Entry into Optoelectronics

San’an Optoelectronics’ announcement shows that San’an Group and Xiamen San’an Electronics Co., Ltd. (hereinafter referred to as “San’an Electronics”) hold 5.14% and 24.33% of the shares of San’an Optoelectronics, respectively. San’an Electronics is a controlling subsidiary of San’an Group, and Lin Xiucheng is the controlling shareholder of Fujian San’an Group Co., Ltd. Therefore, Lin Xiucheng is the actual controller of San’an Optoelectronics.

Born in 1955, Lin Xiucheng is a senior economist and currently serves as chairman and general manager of San’an Group. According to media reports, in the 1980s, Lin Xiucheng earned his “first pot of gold” through scrap steel trading-related businesses. San’an Group has since continued to transform, expanding from steel metallurgy and trading into LED chips, third-generation semiconductors, real estate, tea industry, hydropower station operations, and other fields.

According to Strait Herald, in 1999, at the first China International High-Tech Achievements Fair held in Shenzhen, Lin Xiucheng was attracted by the energy-saving prospects of LED technology. Although he was unfamiliar with high-tech fields at the time, he decisively decided to enter the industry. In 2004, Lin Xiucheng moved the company’s headquarters to Xiamen, establishing a strategic focus on optoelectronics, gradually divesting from early diversified businesses such as steel and tea.

In October 2007, San’an Group, through judicial auction, acquired a 45.43% stake in Hubei Tianfa Industrial Group Co., Ltd. *ST Tianyi. In July 2008, Lin Xiucheng injected LED assets of San’an Group into *ST Tianyi for a backdoor listing, renaming the company San’an Optoelectronics.

With the development of the optoelectronics industry, Lin Xiucheng’s net worth soared, and he was once called China’s “LED King” by the industry. In 2010, Lin Xiucheng’s family ranked 773rd on Forbes’ billionaire list with a net worth of $1.3 billion, making him Xiamen’s richest person.

Targeting Cutting-Edge Industries

The Times Weekly reporter noted that after 2018, San’an Optoelectronics ended its medium-high-speed growth phase, and its performance began to fluctuate. From 2018 to 2020, net profit attributable to the parent company declined for three consecutive years. After a brief recovery in 2021, from 2022 to 2024, net profit attributable to the parent again declined for three consecutive years, with net profit excluding non-recurring gains and losses also suffering losses for three years in a row.

According to the company’s 2025 annual performance forecast and its supplementary announcement, San’an Optoelectronics expects to achieve a net profit attributable to the parent of -200 million to -300 million yuan in 2025, and a net profit excluding non-recurring gains and losses of -750 million to -850 million yuan. 2025 marks the first time since listing that the company has reported a net loss attributable to the parent.

The company explained that the reasons for the loss include the further increase in the proportion of high-end LED products, the growth and profitability of the integrated circuit business, although both have improved, the filters and silicon carbide businesses within the integrated circuits still drag down profits significantly. Additionally, government subsidies received decreased year-on-year, R&D expenses increased, and adjustments in the temporary prices of precious metal waste sales compared to Shanghai Gold Exchange prices led to reduced investment income. According to “Enterprise Accounting Standards,” inventory with a net realizable value below cost was written down, increasing impairment provisions.

After entering a mature stage in its main business, San’an Optoelectronics and Lin Xiucheng’s son, Lin Zhiqiang, have begun to target more cutting-edge industries. San’an Optoelectronics has participated in investments through Fujian Anxin Investment Management Co., Ltd. (“Anxin Investment”) and Yangtze River Industry Investment Private Equity Fund Management Co., Ltd. (“Yangtze River Industry Fund”).

Among them, Anxin Investment, led by a major fund, mainly invests in semiconductors+, while Yangtze River Industry Fund has participated in 15 IPOs through its fund of funds, including Yitang Co., Ltd., Heyuan Biological, Xi’an Yicai, Moer Thread, Angrui Microelectronics, Muxi Co., Ltd., covering fields such as semiconductors, new energy, healthcare, and artificial intelligence.

Lin Zhiqiang has participated as an LP in many funds in emerging industries. The Times Weekly reporter noted that Lin Zhiqiang committed capital to Shanghai Xianghe Hong’an Equity Investment Partnership (“Shanghai Xianghe Hong’an”), whose executive partner is Yonghua Investment Holdings’ Shanghai Yongshi Enterprise Management Partnership. Notably, Yonghua Investment was an early investor in Cambrian.

Additionally, Lin Zhiqiang has indirectly participated in dozens of companies such as Jing Sheng Co., Ltd., Lianxun Instruments, Kangxi Communications, Yibei Technology, Chenxin Semiconductor, Daoyuan Technology, and Haide Star Technology through products managed by Xiamen Xinding Guorui Asset Management Co., Ltd., including Xiamen Xinrui Jiyuan Venture Capital Partnership, Xiamen Xinrui Jimei Venture Capital Partnership, Xiamen Xinrui Jiying Venture Capital Partnership, and Xiamen Xinrui Jitai Equity Investment Partnership.

Recently, Lin Zhiqiang appeared again in the 1 billion yuan financing of Guanglun Intelligent (Beijing) Technology Co., Ltd. (“Guanglun Intelligent”). He participated indirectly through Xiamen Dingbang Investment Management Co., Ltd. in Guanglun Intelligent’s financing. Guanglun Intelligent is a technology company focused on embodied data and simulation technology, and the funds raised will be mainly invested in three core areas: continuous R&D of physical simulation engines, upgrading of large-scale model evaluation systems, and building global delivery and local deployment capabilities.