Interpretation of San 'an Optoelectronics' 2024 Annual Report and 2025 First Quarterly Report

In the development wave of the LED and semiconductor industries, San 'an Optoelectronics, as an important company in the industry, has attracted much attention every time its performance announcement. Recently, San 'an Optoelectronics officially disclosed its 2024 annual report and the first quarter report of 2025. These two reports are like a barometer of industry development, clearly showing San' an Optoelectronics 'operating status in the past period of time and potential future development trends. Through in-depth analysis of these data, we can not only gain insight into the growth trajectory of San 'an Optoelectronics itself, but also spy on the development context and trend of the entire industry.

2024 performance review

Overall revenue increased and net profit declined.

Judging from overall performance data, San 'an Optoelectronics achieved operating income of 16.11 billion yuan in 2024, a year-on-year increase of 14.6%. This revenue growth reflects that the company has achieved certain results in market expansion, product layout and business promotion, and continues to stabilize and expand its market share in the industry competition.
However, in terms of net profit attributable to the parent company, there has been a year-on-year decline. In 2024, net profit attributable to the parent company will be 253 million yuan, a year-on-year decrease of 31%. The net profit deducted from non-parent assets also showed a negative status, at-511 million yuan, but from the perspective of growth trend, it increased by 53.05% year-on-year. The decline in net profit is related to many factors, including product price fluctuations caused by market competition, some businesses are still in production capacity climbing and benefits have not yet been fully released during the investment stage, and the reduction in government subsidies related to income received by the company.

The LED chip epitaxial business has grown steadily, and the product structure optimization has achieved remarkable results

in the LED chip epitaxial business segment. San 'an Optoelectronics has shown strong resilience and growth potential. In 2024, the revenue of this business will be approximately 6.037 billion yuan, achieving a year-on-year increase of 6.56%
And it has maintained a sustained growth trend in the past two years. In terms of product segments, traditional LED epitaxial chip products increased by 4.05% year-on-year, while high-end LED epitaxial chip products increased more significantly year-on-year, reaching 13.91%. This data fully demonstrates that as the company continues to deepen the product structure adjustment of the LED business, high-end products have played an important role in revenue growth.
At the same time, the company actively adopted cost-reduction measures such as improving yield and efficiency, with remarkable results. The gross profit margin of the LED business in this period increased by 8.79 percentage points year-on-year. Cost control and product structure optimization were driven by two-wheel drives, effectively improving the profitability of the business.

Mini LED, Micro LED and automotive LED businesses have blossomed in many

places. San 'an Optoelectronics' products have been widely used in televisions, displays, notebook computers, car displays, VR and other fields. And its share in many well-known international major customers such as MM006, YH004, and YR003 has steadily increased. This is due to the company's continuous investment and optimization in technology research and development, product quality control and customer service, and gradually It occupies an important position in the global Mini LED market.
In terms of Micro LED chips, San 'an Optoelectronics has carried out in-depth cooperation with well-known consumer and technology leading companies at home and abroad. Its product application areas include wearables, AR glasses, car displays, high-end TVs, commercial displays, etc. In the field of medium and large display, products have achieved continuous and stable shipments, and MiP products have also been recognized by domestic and foreign customers, and are accelerating their commercialization. This series of achievements marks that San 'an Optoelectronics is at the forefront of the industry in Micro LED technology research and development and market expansion, laying a solid foundation for the large-scale growth of this business in the future.
The automotive LED business has also achieved outstanding results. San 'an Optoelectronics has continued to make breakthroughs in technology research and development, adding many well-known car companies and Tier 1 customers, and continues to increase its market share in the high-end headlight market. With the development trend of automobile intelligence and electrification, the market demand for automotive LEDs continues to grow. Relying on its own technological advantages and accumulation of customer resources, San 'an Optoelectronics is expected to gain more market share in this field and achieve continued business growth.

Projects under construction are progressing steadily, and the Hubei San 'an Project has achieved results.

As a key project under construction of San' an Optoelectronics, the Hubei San 'an Project has a total investment of 12 billion yuan (including land use rights and working capital), mainly focusing on Mini/Micro LED epitaxial wafers and chips and chip deep processing and other businesses. The project has a total construction area of 477,700 square meters and has a grand plan. After the project reaches production capacity, it is expected that the new chip production capacity will be approximately 2.36 million chips per year (with a 4-inch equivalent chip) and 84,000 packaged products for 4K displays per year, which will greatly enhance the company's production capacity in the Mini/Micro LED field. and market competitiveness.
As of the end of the reporting period, the project has invested a total of 2.720 billion yuan, purchased 5,728 sets of equipment to the factory, and currently has a production capacity of 125,000 pieces per month. During the reporting period, the project achieved operating income of 532 million yuan, a year-on-year increase of 100.81%, showing the good development trend and growth potential of the project. However, net profit was 89 million yuan, a year-on-year decrease of 71.03%. This is mainly because the project is still in the construction and production capacity climbing stage, and the initial investment is large. With the subsequent improvement of the project and the further release of production capacity, the profit level is expected to be significantly improved.

Highlights of performance in the first quarter of 2025

Revenue and net profit have increased significantly, and profitability has improved significantly

. Entering 2025, San 'an Optoelectronics has shown strong growth momentum in the first quarter. Operating income reached 4.312 billion yuan, a year-on-year increase of 21.23%. This growth rate exceeded the revenue growth rate for the whole year of 2024, showing the accelerating trend of the company's business growth.
The net profit attributable to the parent company achieved a significant increase, reaching 212 million yuan, a year-on-year increase of 78.46%; the net profit deducted from non-profit was 74.69 million yuan, a year-on-year increase of 331.43%, successfully turning a deficit into a profit. The significant increase in net profit was mainly due to various factors: First, the increase in gold prices during the reporting period led to a significant year-on-year increase in the company's sales revenue of materials and waste; second, the proportion of high-end LED products further increased, which not only drove the revenue of the LED business. The expansion of scale and its higher profit margin have also significantly improved the overall profitability of the LED business; Third, the operating income of the integrated circuit business increased year-on-year, and its profitability improved. Multiple factors worked together to significantly improve the company's profitability in the first quarter.

The coordinated development of various business segments drives performance growth

. In the LED business segment, the continuous increase in the proportion of high-end products is one of the key factors in performance growth. As the market demand for high-end LED products continues to increase, San 'an Optoelectronics quickly seized market opportunities with its early investment in technology research and development and product structure adjustment, achieving double growth in the revenue scale and profitability of the LED business.
The integrated circuit business also showed a good development trend. The year-on-year growth in operating income and improvement in profitability reflect the company's positive results in technology research and development, market expansion and customer resource integration in the integrated circuit field. With the continuous development of the integrated circuit market, San 'an Optoelectronics is expected to further expand its market share and increase its business contribution in this field.
To sum up, San 'an Optoelectronics has shown development trends at different levels in 2024 and the first quarter of 2025. Although net profit has declined in 2024, many results have been achieved in terms of revenue growth, business structure optimization and new business expansion; in the first quarter of 2025, significant growth has been achieved in revenue and net profit, and various business segments have coordinated development, showing good development prospects. In the future, as the company continues to advance in technology research and development, market expansion and production capacity release, it is expected to maintain its leading position in the LED and semiconductor industries and achieve more stable and sustained growth.