On September 26, Gelonghui reported that in the first half of the year, downstream demand gradually recovered, helping Sanan Optoelectronics (600703.SH) achieve revenue of 7.679 billion yuan, an increase of 18.70% year-on-year, achieving a net income attributable to the parent company of 0.184 billion yuan, an increase of 8.44% year-on-year. In 2024 Q2, the company achieved revenue of 4.122 billion yuan, an increase of 15.74% year-on-year and 15.89% quarter-on-quarter, with revenue gradually improving. It is worth noting that at the end of 2024H, the company's net inventory value decreased by 0.122 billion yuan compared to the beginning of the period, with the net value of LED inventory decreasing by 0.178 billion yuan, the net value of integrated circuit inventory increasing by 0.056 billion yuan, and the company's inventory level continuously decreasing, with the inventory structure continuously improving. In addition, the joint venture company Suzhou SC Semiconductor, established by Hunan Sanan and Li Auto Inc, has achieved production line connection, and the full-bridge power module C sample has been delivered. It is expected to complete product validation in the second half of 2024 and is expected to start mass production of modules in 2025. The company is given a "buy" rating.