Is high-end LED a false proposition, and there is no distinction between low-end and high-end? Is the LED industry not distinguishing between high-end and low-end, and is it declining as a whole, evolving into a red ocean industry, or even a sunset industry? Then, your company's two private placements of nearly 16 billion yuan invested in the LED industry in Quanzhou and Hubei, is it a waste of money?

Sanan Optoelectronics: The company's LED segment products include Mini/MicroLED, plant lighting, automotive lighting, ultraviolet/infrared LED, etc., with high product added value. With the intensive release of terminal products, the expansion of application scope and the accelerated penetration of products, the market demand for segment products will accelerate, thereby driving the company's continuous improvement in production capacity, and the proportion of the company's segment products will further increase. The company's wholly-owned subsidiary Hubei Sanan is mainly engaged in Mini/MicroLED epitaxial wafers and chips and chip deep processing, etc. It has supplied customers such as Huaxing Optoelectronics, Tianma, Konka, Ruifeng, and Zhaochi, and has become the main supplier of many well-known large customers. With the continuous penetration of Mini/MicroLED solutions in the application field and the release of market demand, the production capacity advantage will drive Hubei Sanan's revenue and benefits to increase rapidly. Quanzhou Sanan's production capacity is being continuously released. In the future, as demand improves and the pace of customized customer shipments accelerates, sales revenue and profits will also be further improved.