On July 13, Sanan Optoelectronics disclosed that it foresees a net loss for the first half of 2026, with the estimated loss ranging between RMB 90 million and RMB 135 million. This represents a stark reversal from the profitability witnessed during the same period last year. Throughout the reporting period, despite the company's dedicated efforts to optimize its product portfolio and elevate the share of high-end LED products, the profitability of its core businesses—namely filters and silicon carbide integrated circuits—has remained stagnant, exerting significant pressure on the overall profitability of its main operations.

Simultaneously, the company was adversely impacted by exchange rate fluctuations, which resulted in a year-on-year increase in exchange losses. Concurrently, the interest income derived from bank deposits dwindled, contributing to a surge in financial expenses. Furthermore, in compliance with the Accounting Standards for Business Enterprises, the company conducted impairment tests on its inventories. Consequently, provisions for asset impairment were made for inventories with a net realizable value below their cost, leading to a year-on-year escalation in inventory write-downs.