SICC (688234) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 793.81 million, down 12.98% year-over-year; net profit attributable to shareholders was RMB 10.88 million, down 89.32% year-over-year.

• Gross margin and profitability declined due to lower substrate prices and increased R&D investment.

• The company maintained its global top-three position in conductive SiC substrate market share and launched the industry's first 12-inch SiC substrate.

• H-shares were successfully listed on the Hong Kong Stock Exchange in August 2025.

Financial highlights

• Operating income: RMB 793.81 million, down 12.98% year-over-year.

• Net profit attributable to shareholders: RMB 10.88 million, down 89.32% year-over-year.

• Net cash flow from operating activities: RMB 289.47 million, a significant improvement from negative RMB 82.04 million in H1 2024.

• R&D expenses: RMB 75.85 million, up 34.94% year-over-year.

• Basic and diluted EPS: RMB 0.03, down 87.5% year-over-year.

Outlook and guidance

• The company will continue to invest in large-diameter SiC substrate R&D and expand into new application fields such as AR glasses and optical markets.

• Management expects to leverage the new 12-inch product line and international partnerships to drive future growth.