SICC (688234) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was RMB 1.11 billion, down 13.21% year-over-year, mainly due to strategic price reductions to expand market share amid intense competition.

• Net profit attributable to shareholders for the same period was RMB 1.12 million, a 99.22% decrease year-over-year, impacted by lower sales prices, reduced gross margin, increased R&D and selling expenses, and foreign exchange losses.

• Basic and diluted EPS for the period were both RMB 0.00, down 100% from the previous year.

Financial highlights

• Operating income for Q3 2025 was RMB 318.2 million, a 13.76% decrease compared to Q3 2024.

• Total profit for Q3 2025 was a loss of RMB 2.82 million, down 106.92% year-over-year.

• Net cash flow from operating activities for the first nine months was RMB 70.36 million, a turnaround from negative cash flow in the prior year, due to increased subsidies and reduced cash outflows for purchases.

• R&D investment for the first nine months was RMB 123.31 million, up 29.75% year-over-year, with R&D spending accounting for 11.09% of revenue.

Outlook and guidance

• The company is focusing on expanding the application of silicon carbide products and increasing market share, which has led to strategic price reductions and higher R&D investment.