Sanan Optoelectronics' Actual Controller Lin Xiucheng Placed Under Retention by National Supervision Commission Following Involvement in 1.79 Million Yuan Bribery Case

Lin Xiucheng was born in 1956 in Anxi County, Quanzhou, Fujian Province. He controls San’an Optoelectronics through San’an Group. Since July 10, 2017, he has not held any position at the listed company. Currently, the chairman of San’an Optoelectronics is Lin Xiucheng’s son, Lin Zhiqiang.

Author: Zhang Xiaohui

Cover image: San’an Optoelectronics official website

As of the morning close on March 23, 2026, San’an Optoelectronics (600703.SH) stock price hit the daily limit down, trading at 14.89 yuan per share, with a total of 1.36 million orders at the limit.

On the evening of March 22, San’an Optoelectronics announced that the actual controller, Lin Xiucheng, was placed under detention by the National Supervisory Commission and is under investigation.

The notice of detention for Lin Xiucheng was sent to the listed company by its controlling shareholder, Fujian San’an Group Co., Ltd. (hereinafter referred to as “San’an Group”), on March 21.

On the morning of March 23, a reporter from Economic Observer called the secretarial office of San’an Optoelectronics to ask, “Is the stock price limit down due to the detention of the actual controller, Lin Xiucheng?” Staff replied, “That could be a reason.”

The reporter then asked, “What is the reason for Lin Xiucheng’s detention?” Staff responded, “We don’t know the specific details; all information has been disclosed in the announcement.”

Lin Xiucheng was born in 1956 in Anxi County, Quanzhou, Fujian Province. He controls San’an Optoelectronics through San’an Group. Since July 10, 2017, he has not held any position at the listed company. Currently, the chairman of San’an Optoelectronics is Lin Xiucheng’s son, Lin Zhiqiang.

In the 1980s, Lin Xiucheng made his first fortune by purchasing scrap steel and waste materials. In 1992, he co-founded San’an Ironmaking Plant with Fujian Sanming Steel Factory. In 1999, after engaging with LED technology at the Shenzhen High-Tech Fair, Lin decided to shift to the semiconductor industry. In 2000, San’an Optoelectronics was established, and in 2002, it successfully developed its first epitaxial wafer. In 2008, San’an Optoelectronics went public via a backdoor listing on the Shanghai Stock Exchange. In 2017, Lin Xiucheng handed over San’an Optoelectronics to his eldest son, Lin Zhiqiang.

According to the Hurun Global Rich List 2026, Lin Xiucheng and his son rank 2,044th with a wealth of 16 billion yuan, making them the third-richest in Xiamen.

Lin Xiucheng withdrew from the San’an Optoelectronics board and ceased holding any official position at the company in 2017, possibly due to his involvement in the bribery case of Zheng Yunfeng, a standing member of the Xiamen Municipal Party Committee and deputy mayor.

The first-instance criminal judgment (Case No. 【2017】Min 06 Xing Chu 45) disclosed on the Judgments Website shows that between 2003 and 2010, Zheng Yunfeng, while serving as the mayor and party secretary of Siming District, Xiamen, and as the district mayor and party secretary of Haicang District, Xiamen, used his positions to benefit San’an Group in land use, tax rebates, and environmental assessments, receiving multiple bribes including 1.5 million RMB in cash, 20,000 USD, and shopping cards worth 75,000 RMB, totaling approximately 1.7893 million RMB.

Lin Xiucheng’s testimony indicates that at the end of 2000, the Xiamen government intended to provide his company with an industrial land plot (now San’an Optoelectronics’ factory). The Xiamen Urban-Rural Development Bureau, citing environmental pollution concerns from his company’s production, was reluctant to supply the land, and Zheng Yunfeng helped coordinate with the bureau. Around 2001, due to arsenide emissions from his company’s production process, environmental authorities believed it could impact the surrounding environment, so environmental assessment approval was delayed. Lin sought Zheng’s help, who then coordinated with the Xiamen Environmental Protection Bureau.

Zheng Yunfeng was sentenced to ten years and six months in prison and fined 800,000 RMB in the first trial. Lin Xiucheng, as the briber, was not subject to criminal punishment.

On January 31, 2026, Lin Xiucheng and Lin Zhiqiang appeared at San’an Optoelectronics’ 25th anniversary and the 2026 Spring Festival celebration, where Lin Xiucheng delivered a speech. This was his most recent public appearance at San’an Optoelectronics, speaking as the founder and chairman of San’an Group.

San’an Optoelectronics’ main business is the research, production, and sales of compound semiconductor materials and devices. Since 2022, the company’s performance has been poor, with net profit after non-recurring gains and losses turning negative for the first time, with a loss of 310 million RMB in 2022; 1.088 billion RMB in 2023; and 511 million RMB in 2024.

The 2025 performance forecast indicates the company expects a net profit attributable to shareholders of the listed company between -200 million and -300 million RMB.

San’an Optoelectronics explained the reasons for the losses as follows: during the reporting period, the proportion of high-end LED products increased further; revenue and profitability of the integrated circuit business improved year-on-year, but filters and silicon carbide segments still dragged down profits; government subsidies decreased compared to the previous year; R&D expenses increased; sales of precious metal waste at the temporarily set prices diverged from Shanghai Gold Exchange prices, reducing investment income; and according to accounting standards, inventory with a net realizable value below cost was impaired, leading to increased provisions for inventory write-downs. These factors collectively resulted in the reported losses.