Shanghai, Jan 26, 2026, 08:37 CST — Premarket
- Sanan Optoelectronics shares surged Friday, closing well up; China markets set to reopen Monday.
- Local media reported that the firm’s silicon-carbide (SiC) project in Chongqing has moved into “risk production.”
- Attention now turns to the April annual report for audited figures and progress on the SiC ramp.
Sanan Optoelectronics’ A shares on the Shanghai exchange ended Friday at 16.54 yuan, climbing 5.75%. The stock is drawing attention again ahead of Monday’s open. Local outlets reported Monday that the company revealed its Chongqing silicon-carbide project has passed several product validations and entered “risk production,” a precursor to full-scale manufacturing. During the last session, shares fluctuated between 15.61 and 16.75 yuan, with turnover at 5.47%. stocks.sina.cn
The reason it matters now is straightforward: Sanan’s newer investments must begin shouldering a bigger share of the burden. Silicon carbide goes into power electronics for electric vehicles and industrial energy systems, sectors where clients expect lengthy qualification processes and reliable supply.
The timing couldn’t be worse. On Jan. 13, Sanan flagged a 2025 net loss for shareholders between 200 million and 400 million yuan. The company pointed to its filter and silicon-carbide segments as ongoing profit drains. It also blamed a drop in government subsidies, elevated R&D expenses, and bigger inventory write-downs for the shift.
Sanan’s Chongqing project is linked to STMicroelectronics, which announced in 2023 a silicon-carbide manufacturing joint venture with Sanan in the city, with an estimated cost of around $3.2 billion. The facility will produce devices solely for ST. “China is moving fast towards electrification in automotive and industrial,” ST CEO Jean-Marc Chery said then. Reuters
“Risk production” might sound like just a label, but it’s a crucial hurdle for chip factories. Yields, reliability, and process stability all get put under the microscope before any volume ramp-up. Sometimes it speeds along fast, other times it grinds to a quiet halt.
Investors will be focused on whether Friday’s gains stick in the next session, keeping an eye out for new disclosures on yields, customer qualification, and when the Chongqing line shifts from costing money to generating revenue.
Still, the risks are real. Producing more doesn’t guarantee profits, especially since silicon-carbide prices and demand fluctuate with the EV and industrial markets. Sanan has warned investors that segments of its integrated-circuit lineup, including SiC, are weighing on earnings — a sharp reminder that scale can be a double-edged sword.
The company’s 2025 annual report, due April 25, is the next major event. Investors will zero in on audited loss numbers, cash burn, capex details, and whether there’s a shift—or confirmation—in the Chongqing SiC ramp plan.
