Chinese famous LED chip maker San’an announced a sluggish market report for the first half of the year 2023

Chinese famous and biggest LED chip maker San’an recently announced a drop in in revenue to  6.469 billion yuan while its operating costs grew to to 5.592 billion yuan. Facing the slow market demand at the half of the year 2023, its gross margin had been cut by 530 million yuan, down about 80% compared with that in the same period last year.

The poor LED chip business and decrease in product prices resulted in 15.24% year-on-year decline in LED epi-wafer revenue. Besides, the dropping prices of conventional LED chip inventory and increasing warehousing expenses might may occur along with the inventory depreciation of approximately 180 million yuan compared with that in previous year.

Luckily, its IC business is still booming with the estimated revenue up about 9% in gross profit equivlent to 120 million yuan. Among which ,its revenue of major SiC business rose over 170% ths year. 

Facing the sluggish market of LED chips, San’an has disclosed the draft of the fifth phase of the employee stock ownership plan (ESOP), which will resume depending the performance assessment between 2023 and 2024.