SICC (688234) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥912.23 million, up 108.27% year-over-year; net profit attributable to shareholders was ¥101.89 million, turning profitable from a loss last year.

• Gross margin was 23.01%; company maintained nine consecutive quarters of revenue growth, driven by strong demand in EV and power electronics.

• Company is a leading domestic SiC substrate supplier, with major capacity expansion at Shanghai Lingang plant and increased international customer penetration.

• R&D investment was ¥56.21 million, 6.16% of revenue; 33 new patents filed, 15 granted in H1 2024.

• No dividend or capital increase plan for the period; new stock incentive plan approved.

Financial highlights

• Operating income: ¥912.23 million, up 108.27% year-over-year.

• Net profit attributable to shareholders: ¥101.89 million, up 241.40% year-over-year.

• Operating cash flow: -¥82.04 million, down from -¥43.26 million last year, due to increased inventory and payroll.

• Basic and diluted EPS: ¥0.24, up from -¥0.17 last year.

• Total assets: ¥7.11 billion, up 2.89% from year-end 2023.

Outlook and guidance

• Company expects continued strong demand for high-quality SiC substrates in EV, renewable energy, and power electronics.

• Plans to further expand 8-inch SiC substrate capacity and accelerate international market penetration.

• Will maintain high R&D investment and focus on process innovation for large-diameter, low-defect SiC products.