As Demand Stagnates, China LED Lighting Giant Feels the Heat

The future is looking less rosy for Sanan Optoelectronics Co., China’s largest LED lighting manufacturer, at least for now. Driven by concern about weakening demand for light-emitting diodes from the domestic property and automotive sectors, Sanan’s Shanghai-listed stock has lost more than half of its value in the past 12 months and seen its valuation decline to record lows. Investors were recently spooked by a social media report questioning the financial dealing of its controlling shareholder, prompting Sanan to issue statements to dismiss the concerns.