The actual controllers and general managers have been placed under detention one after another, causing San'an Optoelectronics' market value to evaporate over 20 billion yuan in half a month.

Does AI · Will Lin Kechuang’s detention affect the governance stability of San’an Optoelectronics?

On April 8, San’an Optoelectronics (600703.SH) released an evening announcement stating that on April 7, 2026, the company received a notice letter issued by the Supervisory Commission of Yuzhong District, Chongqing. Vice Chairman and General Manager Lin Kechuang of the company has been detained and is now subject to filing for investigation.

San’an Optoelectronics stated that, as of now, the company has not received any documents relating to an investigation into the company or cooperation with any investigation. At present, the company has made proper arrangements for the relevant work. Other directors and senior management personnel are performing their duties normally. The board of directors is operating normally, and production and operations and management are also normal.

Previously, the company’s actual controller, Lin Xiucheng, was detained and filed for investigation by the National Supervisory Commission. It is reported that Lin Kechuang is Lin Xiucheng’s son-in-law. San’an Optoelectronics Chairman Lin Zhiqiang is Lin Xiucheng’s eldest son, and Director and Deputy General Manager Lin Zhidong of San’an Optoelectronics is Lin Xiucheng’s youngest son.

On the evening of March 22, San’an Optoelectronics announced that on March 21 the company received a notice from Fujian San’an Group Co., Ltd., stating that in recent days Fujian San’an Group Co., Ltd. received a notice letter issued by the National Supervisory Commission regarding Lin Xiucheng being detained and filed for investigation—the company’s actual controller. Since July 10, 2017, Lin Xiucheng has not held any position in the company.

On the evening of March 29, San’an Optoelectronics announced that on March 28 the company received a notice that the total 1.47 billion-plus shares of the company held by the company’s indirect controlling shareholder and the controlling shareholder, had all been judicially frozen and subject to pending freeze. This accounts for as much as 29.47% of the company’s total share capital.

On March 30, San’an Optoelectronics held a media briefing to respond to concerns from the market. At that time, San’an Optoelectronics General Manager Lin Kechuang emphasized that Lin Xiucheng’s detention is a personal matter concerning the actual controller and has nothing to do with San’an Optoelectronics. It will not have any material adverse impact on the listed company’s production and operations or its future development.

At the media briefing, Lin Kechuang said that the company has a sound organizational structure, a standardized governance system, and a mature business and management team, and that all businesses are steadily being advanced according to the established plan. On the one hand, San’an Group has set up a dedicated team to address the frozen shares matter, and is actively communicating with creditors to promote the rapid resolution of debt issues. On the other hand, the company’s chairman will increase his shareholding in the company by RMB 20 million to RMB 40 million; he will also increase his holdings of the company’s shares by RMB 5 million to RMB 10 million. In addition, the company has a sound organizational and management structure and a standardized governance system, and the company remains independent from the controlling shareholder in terms of assets, business, finance, personnel, and institutions. Details>>>

On the evening of April 8, in addition to the announcement about General Manager Lin Kechuang being detained, San’an Optoelectronics also announced that the company recently received a notice from its indirect controlling shareholder, San’an Group. The shares of the company held by San’an Group and controlling shareholder San’an Electronics have been subject to pending freeze. The total number of shares subject to this pending freeze is 1.377 billion shares, accounting for 93.68% of their shares held, and 27.60% of the company’s total share capital. As of the date of disclosure, the total number of shares that San’an Electronics and San’an Group have cumulatively been judicially frozen amounts to 1.470 billion, accounting for 100% of their shares held and 29.47% of the company’s total share capital.

The company stated that the above matters will not temporarily have any material impact on the company’s control rights, shareholding structure, etc., and that its production and operations are currently normal. If such issues are not properly resolved subsequently, there may be risks that affect the stability of control rights. San’an Group is actively communicating with creditors, and the government has stepped in to coordinate and promote the resolution of debt issues.

On April 8, San’an Optoelectronics rose 3.24%, closing at 12.41 yuan per share, with a total market value of RMB 61.9 billion.

On March 20, San’an Optoelectronics’ closing price was 16.54 yuan, with a total market value of RMB 82.518 billion. Since March 23, San’an Optoelectronics’ stock price has cumulatively fallen by 25%, and its total market value has evaporated by RMB 20.6 billion.

Part of the content comes from 21st Century Business Herald (Reporter Zhang Sainan)