SICC (688234) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 1.46 billion, down 17.15% year-over-year; net loss attributable to shareholders was RMB -208 million, reversing from a profit last year.

• Gross margin dropped to 17.10%, down 15.82 percentage points year-over-year, mainly due to lower average selling prices and higher costs.

• The company maintained its global leadership in SiC substrates, with a 27.6% global market share and over 50% share in 8-inch products.

• Significant R&D investment (RMB 166 million, up 16.91%) supported breakthroughs in 12-inch SiC substrates and expansion into new applications.

• Cash flow from operations improved to RMB 231 million, up 249.79% year-over-year, aided by government subsidies and reduced cash outflows.

Financial highlights

• Revenue: RMB 1.46 billion, down 17.15% year-over-year; net loss: RMB -208 million.

• Gross margin: 17.10%, down 15.82 percentage points; basic EPS: -0.47 yuan.

• Operating cash flow: RMB 231 million, up 249.79% year-over-year.

• Total assets: RMB 9.58 billion, up 30.27%; equity: RMB 7.17 billion, up 35.03%.

• R&D expense: RMB 166 million, 11.32% of revenue.

Outlook and guidance

• The company will focus on expanding 8-inch and 12-inch SiC substrate production, targeting further market share gains.

• Strategic priorities include cost reduction, efficiency improvement, and deepening partnerships with global leading customers.

• Continued high R&D investment is planned, especially in next-generation products and new application fields.