On July 13, Sanan Optoelectronics disclosed that it projects a net loss attributable to shareholders of the parent company within the range of RMB 90 million to RMB 135 million for the first half of 2026, indicating a transition to a loss position compared to the same period last year. This alteration in performance is mainly attributable to the company's strategic initiative to elevate the proportion of high-end LED products. However, the profitability of its core businesses, specifically those involving filters and silicon carbide in integrated circuits, has yet to witness an upturn, thereby exerting pressure on the profit derived from its main operations. Concurrently, impacted by fluctuations in exchange rates, the foreign exchange losses have escalated on a year-on-year basis, while the interest income from bank deposits has diminished over the same period, culminating in an increase in financial expenses. Furthermore, the company has made asset impairment provisions for inventories in compliance with accounting standards, leading to a year-on-year surge in inventory write-downs.