Sanan Optoelectronics, the largest LED epitaxy wafer manufacturer in China, announced that it has received funds from its strategic investors including Quanzhou Financial Holding, the China Industrial International Trust, and An Xin Capital.
The three organizations plan to provide a joint investment of at least CNY 5.4 billion (US$801.64 million) to Sanan and Quanzhou Financial Holding will offer liquidity assistance of CNY 600 million (US$ 89 million).
Sanan Optoelectronics has been through a financial crisis in January with its stock price dropped more than half of its value in the past one year and reached the lowest point since 2009. The inventory has stopped the falling stock price of Sanan. However, according to Bloomberg, Sanan said that purpose of the increased inventory is to expand production capacity to meet growing demand.
The growing rate of the output value of China’s LED sector has slowed down, coming to 12.8 percent in 2018 which has dropped by 12.5 percent compared to the previous year, according to China Solid State Lighting Alliance. Moreover, with the extra tariffs imposed by the U.S. and the continuing trade dispute between China and the U.S., the demands for Sanan’s LED wafer might not grow as expected.
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