SICC Overview
SICC is a pure-play maker of single-crystal silicon carbide (SiC) substrates and one of the few companies worldwide that grows, slices and polishes SiC wafers at industrial scale. It covers every diameter from 2-inch to 12-inch. Fuji Keizai's March 2026 survey put SICC first in the global conductive-type SiC substrate market for 2025, with 27.6%, ahead of Wolfspeed, and first in 8-inch conductive substrates, with 51.3%. Its wafers go into SiC power devices made by more than half of the world's ten largest power-semiconductor manufacturers, including Infineon and Bosch. They end up in 800V electric-vehicle drivetrains, AI data-centre power supplies, solar inverters, energy storage, fast chargers, rail traction and RF communications. SICC led the industry to 12-inch substrates: it launched the first 12-inch product in November 2024, completed the full 12-inch range (conductive N-type, conductive P-type and high-purity semi-insulating) in 2025, and has taken 12-inch orders from leading customers. It manufactures in Jinan and Shanghai Lingang, is building a site in Malaysia, and since August 2025 has been listed in both Shanghai and Hong Kong.
What the company does. SICC researches, develops, manufactures and sells SiC substrates, the monocrystalline wafers on which SiC epitaxial layers are grown before devices are fabricated. Production runs from high-purity SiC powder synthesis, through physical vapour transport (PVT) crystal growth at about 2,300°C, to ingot processing and wafer slicing, then lapping, chemical-mechanical polishing (CMP), cleaning and inspection. The company also uses a liquid-phase growth method for large-diameter crystals and designs its own crystal-growth furnaces.
The company's own description. In its FY2025 annual report and Hong Kong filings, SICC calls itself a leading company in the global wide-bandgap semiconductor materials industry that has concentrated on research and industrialisation of high-quality SiC substrates since it was founded. Its products are used in power semiconductor devices, RF semiconductor devices and newer optical, filter and thermal applications.
Business model.
Revenue model: Description: Product sales, essentially all of revenue. SiC substrates (including off-specification crystal and gem-grade material sold as "other business") generated RMB 1,459 million in FY2025. Leasing and services generated RMB 6.0 million. There is no subscription or licensing revenue.
Contracting: Description: Long-term supply agreements and framework contracts with international device makers (Infineon in 2023; Bosch in 2023; a three-year framework with "Customer F" worth RMB 804.8 million including tax, signed August 2023), plus spot and quarterly orders in China
Pricing: Description: Price per wafer, varying by diameter, conductivity type, grade (automotive vs. non-automotive) and defect density. In 2025 the company deliberately cut prices to gain share. Selective price increases on new and rush orders followed in 2026.
Value-chain position: Description: Upstream materials: substrate (SICC) → epitaxy (in-house at device makers or specialists such as TYSiC and EpiWorld) → device fabrication (Infineon, onsemi, STMicroelectronics, ROHM, Bosch, CRRC, United Nova Technology and others) → modules → end systems
Customer types: Description: Integrated device manufacturers (IDMs), SiC foundries, epitaxy houses, RF device makers, optical component makers
End markets: Description: EVs (traction inverters, on-board chargers, DC-DC converters); AI data-centre high-voltage DC power and solid-state transformers; solar inverters and energy storage; high-power charging; rail traction and the power grid; 5G base-station RF (semi-insulating); AR/AI-glasses optical waveguides; TF-SAW filters; heat-dissipation parts and advanced-packaging interposers
Independent characterisation. SICC is a capital-intensive, single-product materials manufacturer. Its earnings depend on three things: wafer prices, the mix of diameters (8-inch wafers carry higher prices and margins than 6-inch) and how fully its plants are used, since depreciation is a large fixed cost. Its 2023–2026 history shows both how much operating leverage that creates and how sharply profits swing with the cycle. Revenue nearly tripled in 2023 as the Lingang plant ramped. Profit peaked in 2024. In 2025 a domestic price war pushed the gross margin to about −6% in the fourth quarter even though shipments rose by more than two-thirds. From the second quarter of 2026, tight 8-inch supply and stabilising 6-inch prices lifted the quarterly gross margin to 27.5%. The company competes on scale (2025 output of about 690,400 equivalent wafers), on diameter leadership (8-inch volume production, and the first 12-inch products) and on qualification with tier-one overseas IDMs, which have historically paid much better margins than domestic buyers.
Strategy
Stated strategy (FY2025 annual report and 2026 investor communications). Management's recurring themes are:
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Lead in large diameters. 8-inch is the company's "core growth engine" and main product; 12-inch is "the next generation of technology and the high ground of pricing power". The company has completed the full 12-inch range and is converting validation into orders.
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Trade price for share in the downturn. Accept lower prices for a period to speed SiC's replacement of silicon in new applications. Management argues that falling prices "expand" end-market demand.
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Cut costs through technology. In-house growth furnaces, thicker usable crystal per run, purer powder and lower losses in slicing, lapping and polishing, all aimed at lowering capital cost and depreciation per wafer.
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Expand capacity only against orders. "Order-oriented expansion, no blind expansion", with Jinan focusing on crystal growth and Lingang on back-end processing.
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Globalise. Deepen ties with the top ten power-device makers (more than half are already customers), build the Malaysia base, and use the Hong Kong listing as an international capital platform.
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New applications. AI data-centre 800V DC power and solid-state transformers, advanced-packaging interposers and heat spreaders, AR-glasses waveguides, TF-SAW filters, and P-type substrates for the grid.
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Shareholder returns. A "quality, efficiency and returns" action plan (published 28 March 2025, with a mid-year review) and the November 2026 buyback proposal.
Initiatives announced in the past 24 months.
Nov 2024: Initiative: 12-inch substrate launch; Detail: First in the industry
Dec 2024–Aug 2025: Initiative: H-share listing; Detail: Net proceeds about HK$1.94 billion for domestic capacity, a Southeast Asian base, R&D and working capital
Mar 2025: Initiative: Quality, efficiency and returns action plan; Detail: Shanghai Stock Exchange initiative
Mar 2025: Initiative: Restricted-share reserved grant; Detail: Retention of key staff
Aug 2025: Initiative: Toshiba MOU; Detail: Wafer quality and supply; ended Sep 2025
2025: Initiative: Full 12-inch range completed; Detail: N-type, P-type and high-purity semi-insulating
2025–2026: Initiative: Lingang phase two; Detail: About 960,000 wafers a year of planned capacity by end-2026; emphasis on 12-inch
2026: Initiative: Jinan phase two; Detail: Crystal-growth capacity
2026: Initiative: Malaysia subsidiary; Detail: First step toward manufacturing outside China
2026: Initiative: Foreign-exchange derivatives; Detail: Additional hedging limit of up to US$400 million approved at the 29 May 2026 AGM
2026: Initiative: Single reporting standard; Detail: CAS-only reporting from FY2026 to cut cost and complexity
2026: Initiative: Selective price increases; Detail: Low-double-digit increases on new and rush orders above contracted volumes
Nov 2026: Initiative: Share buyback proposal; Detail: RMB 50–80 million
Medium-term guidance. SICC does not publish numerical revenue or margin targets. In September 2026 management said the industry was moving from a period of rapid price cuts to one of "stable prices and expanding demand", that its prices had broadly stabilised since the start of 2026, and that sales were growing faster than output. In November 2026 it said order books were full and rolling.
Products & Services
SICC's only business line is SiC substrates. The products below are grouped by electrical type and diameter.
Pricing is negotiated per wafer and is not published. Industry data show how fast prices move. Yole forecasts the average 8-inch conductive price falling from US$1,087 in 2026 to US$844 in 2027. In May 2026 JPMorgan forecast 8-inch prices of RMB 3,000–4,000 per wafer by the end of 2026 and RMB 2,500–3,500 in 2027.
Product Portfolio
| Product line | Description and key specifications | Target customers / applications | Commercial status |
|---|---|---|---|
6-inch (150 mm) conductive N-type 4H-SiC substrate | Main product of the Jinan base; automotive grade (IATF 16949) and industrial grade | MOSFET and diode makers for EV inverters, on-board chargers, solar, storage, chargers, white goods | Mass production. Still the industry's highest-volume diameter. Prices fell sharply in 2025, then stabilised in 2026 with a partial rebound. |
8-inch (200 mm) conductive N-type 4H-SiC substrate | Flagship product; supplied in volume and quality-qualified; made mainly at Lingang. Liquid-phase growth produced the industry's first 8-inch crystals without macro defects. | Infineon (its most heavily booked overseas customer; 2026 orders doubled), United Nova Technology (80–90% of its 8-inch substrate supply), CRRC (more than 3,000 wafers a month), and other global top-10 power-device makers | Mass production. Over 50% of revenue in 2026. Fuji Keizai 2025 share 51.3% (Yole: about 60%). Supply has been tight since Q2 2026. |
12-inch (300 mm) conductive N-type substrate | First launched November 2024 | Next-generation power devices; lower cost per die. Usable area is 2.25× an 8-inch wafer and the effective yield ratio about 2.5×. | Orders received from leading customers; Lingang phase two will focus on 12-inch |
12-inch conductive P-type substrate | Developed in 2025; supports bipolar and ultra-high-voltage devices (for example IGBT-type structures for the grid) | Grid, rail and ultra-high-voltage power devices | Development complete; customer validation under way |
12-inch high-purity semi-insulating substrate | Developed in 2025 | RF, optical waveguides, advanced-packaging interposers and heat spreaders | Development complete; leading customers validating or ordering. The project was named one of China's top ten third-generation semiconductor technology advances of 2025. |
4- and 6-inch high-purity semi-insulating (HPSI) substrates | The company's original RF product; one of China's earliest semi-insulating suppliers | GaN-on-SiC RF devices for 5G base stations and microwave electronics | Mature production; a smaller share of revenue |
Optical-grade SiC substrates | High-transparency, high-refractive-index SiC for diffractive optical waveguides | AI and AR smart-glasses makers; "global leading optical customers" | Technical cooperation and deliveries under way. Management describes demand as "pre-release"; volume timing has not been disclosed. |
SiC for TF-SAW filters, thermal management and advanced packaging | High-thermal-conductivity SiC used as a carrier or interposer (for example a possible replacement for silicon interposers in CoWoS packaging) | RF filter makers; heat-dissipation component makers; advanced packaging | Early commercial and development stage |
Gem-grade and off-specification crystal material | Boules and wafers below semiconductor grade, sold for moissanite and similar uses | Gem and industrial buyers | Part of the RMB 240 million of "other business" in FY2025, at a −7.59% gross margin |
Leasing and services | Equipment and property leasing; technical services | Various | RMB 6.0 million in FY2025 |
Financial Narrative
Income statement
Revenue grew at a compound annual rate of 31.2% from FY2021 to FY2025. Under IFRS, the Hong Kong FY2025 results announcement reports cost of sales of RMB 1,323.1 million, gross profit of RMB 141.8 million (a 9.7% margin, against 24.6% in 2024) and a basic loss per share of RMB 0.47. The CAS gross margin is 13.05% because taxes and some cost items are classified differently. FY2025 EBITDA was about RMB 253 million.
Commentary.
FY2021–FY2022: building the base: The FY2021 profit of RMB 90.0 million depended on government grants of RMB 88.9 million. Recurring profit was only RMB 13.0 million. In FY2022, weak semi-insulating demand and the costly ramp of conductive production led to a gross loss and a RMB 175.7 million net loss.
FY2023: the Lingang inflection: Lingang started delivering in May 2023 and wafer sales rose 254.7% to 226,300. Revenue tripled, the gross margin rose every quarter, and Q3 and Q4 were profitable.
FY2024: peak profit: Lingang reached 300,000 wafers a year ahead of schedule, output reached 410,200 wafers and the gross margin reached 25.9%. Net profit rose to RMB 179.0 million and every quarter was profitable.
FY2025: the price war: The industry cut prices across 6-inch wafers, Chinese rivals added capacity, and SICC chose to "adjust its market strategy for a period" to defend share. Volume rose about 75% but average prices fell steeply, especially for non-automotive wafers. Selling expenses (+7.7%), R&D (+16.9% to RMB 165.8 million) and administrative costs (+26.2% to RMB 239.0 million, including H-share listing costs) all rose. Other drags were foreign-exchange losses, asset impairments, and higher income tax plus late-payment surcharges arising from tax matters. Q4 2025 alone lost RMB 209 million at a gross margin of about −6%.
2026: recovery: Gross margin climbed from 19.1% in Q1 to 25.4% in Q2 and 27.5% in Q3 as 8-inch passed half of revenue and prices stabilised. 9M 2026 revenue was RMB 1,559 million (+40.2%), net profit RMB 27.2 million and recurring net profit RMB 8.8 million, the first positive year-to-date recurring profit since 2024. The main remaining drag is foreign-exchange losses on USD assets as the RMB strengthened: finance expenses were 10.84% of revenue in 1H 2026.
Balance sheet
FY2025 balance-sheet detail (RMB million).
Cash more than doubled in 2025 because of the H-share proceeds (HK$1.94 billion net, unspent at year-end). The parent company had accumulated losses of RMB 212.5 million at the end of 2025, which limits its ability to pay dividends until they are recovered. During 2026 leverage rose: the liabilities-to-assets ratio reached 29.1% at 30 June and 32.3% at 30 September. Book value per share was RMB 14.67 at mid-2026.
Cash flow
Operating cash flow rose 249.8% in FY2025 even though the company made a loss, because heavy depreciation is added back. It was RMB 10.2 million in Q1 2026 (−92.9%) and RMB 89.0 million for 9M 2026 (+26.5%). Capital spending in 2025 went mainly to 8-inch and 12-inch capacity. The company has not bought back shares; the RMB 50–80 million programme proposed in November 2026 would be its first.
Ratios (FY2025, calculated from annual-report figures)
Inventory of about ten months of cost of sales is high. It reflects long crystal-growth cycles, wafers in process, and finished goods built up during the 2025 downturn. The FY2025 inventory impairment of about RMB 49 million is linked to this. Interest coverage is not meaningful because the company was loss-making in FY2025 and had net interest income in FY2024. In 2025 interest expense rose by RMB 19.9 million as bank borrowing increased.
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View Subscription PlansFinancial Detail
Group Entities
| Entity | Location | Role |
|---|---|---|
SICC Co., Ltd. (parent) | Jinan, Shandong | Headquarters, R&D centre, Jinan manufacturing base (mainly 6-inch conductive and semi-insulating; phase two focuses on crystal growth) |
Shanghai Tianyue Semiconductor Materials Co., Ltd. (上海天岳) | Lingang New Area, Shanghai | Main conductive-substrate plant (mainly 8-inch), handling slicing, lapping and polishing; phase two will focus on 12-inch |
Shanghai Yuefu Trading Co., Ltd. (上海越服) | Shanghai | Trading and sales subsidiary |
Shanghai Yuelianfeng Technology Co., Ltd. (上海越联峰) | Shanghai | Technology subsidiary |
Malaysian subsidiary (wholly owned) | Malaysia | Holding entity for the planned overseas manufacturing base |
Employee shareholding platforms: Shanghai Maiming, Shanghai Zhuao, Shanghai Juepeng, Shanghai Cehui | Shanghai | Equity-incentive vehicles; Zong is general partner of Maiming and Zhuao |
Segment Revenue
| Category | Revenue | Cost | Gross profit | Gross margin (%) | Share of revenue (%) |
|---|---|---|---|---|---|
Semiconductor materials | 1,225 | 1,016 | 209 | 17.10 | 83.6 |
Other business (off-spec crystal, gem-grade and other material sales) | 240 | 258 | -18 | -7.59 | 16.4 |
Total | 1,465 | 1,274 | 191 | 13.05 | 100.0 |
Products
| Product | Revenue | Gross margin (%) |
|---|---|---|
SiC substrates (including related crystal material) | 1,459.0 | 13.04 |
Leasing and services | 6.0 | 16.58 |
Revenue by Segment and Segment Margins & Growth (%)
| Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|---|---|---|
Revenue (CNY Mn) | 408.0 | 386.0 | 318.4 | 352.5 | 365.5 | 548.0 | 646.0 |
Gross margin (%) | 24.0 | 12.6 | 20.6 | -5.9 | 19.12 | 25.36 | 27.46 |
Net profit attributable (CNY Mn) | 8.52 | 2.36 | -9.76 | -209.44 | -60.51 | 1.89 | 85.83 |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (CNY Mn) | 493.86 | 417.03 | 1,250.70 | 1,768.14 | 1,464.88 |
Revenue growth (%) | 16.25 | -15.56 | 199.90 | 41.37 | -17.15 |
Gross margin (%) | — | -5.8 | 15.8 | 25.90 | 13.05 |
Operating profit (CNY Mn) | 81.85 | -178.32 | — | 158.70 | -160.79 |
Pre-tax profit (CNY Mn) | 83.83 | -176.24 | — | 159.26 | -199.44 |
Net profit attributable (CNY Mn) | 89.95 | -175.68 | -45.72 | 179.03 | -208.32 |
Net profit excl. non-recurring items (CNY Mn) | 12.97 | -258.5 | -113.0 | 156.09 | -245.9 |
Net margin (%) | 18.2 | -42.1 | -3.7 | 10.1 | -14.2 |
Basic EPS (MYR Bn) | 0.23 | -0.41 | -0.11 | 0.42 | -0.47 |
Dividend per share (MYR Bn) | — | — | — | — | 0 |
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View Subscription PlansBalance Sheet and Margin Analysis (%)
| Metric | FY2024 | FY2025 |
|---|---|---|
Total assets (CNY Mn) | 7,357 | 9,583 |
Total liabilities (CNY Mn) | 2,044 | 2,409 |
Equity attributable to shareholders (CNY Mn) | 5,313 | 7,174 |
Liabilities-to-assets ratio (%) | 27.78 | 25.13 |
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View Subscription PlansFinancial Analysis
| Item | FY2025 |
|---|---|
Cash and bank balances | 3,178 |
Accounts and notes receivable | 621 |
Inventories | 1,063 |
Total current assets | 5,292 |
Fixed assets | 3,609 |
Construction in progress | 129 |
Intangible assets | 269 |
Goodwill | 0 |
Total borrowings | 1,040 |
of which due within one year | 696 |
of which due after one year | 344 |
Net cash (cash minus borrowings) | 2,138 |
Undistributed profit, consolidated | -331 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (CNY Mn) | 111 | — | 6 | 66 | 231 |
Capital expenditure (CNY Mn) | — | — | 1,328 | — | — |
Dividends paid (CNY Mn) | 0 | 0 | 0 | — | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2024 | FY2025 |
|---|---|---|
ROE on year-end equity (%) | 3.4 | -2.9 |
ROA on average assets (%) | — | -2.5 |
Borrowings / equity (%) | — | 14.5 |
Net debt / EBITDA (x) | — | net cash |
Asset turnover on average assets (x) | — | 0.17 |
Inventory days (on CAS cost of sales) | — | 305 |
Receivable days | — | 155 |
Region Overview
| Region | Revenue | Cost | Gross profit | Gross margin (%) | Share (%) |
|---|---|---|---|---|---|
Mainland China | 785 | 840 | -55 | -6.96 | 53.6 |
Overseas | 679 | 434 | 246 | 36.19 | 46.4 |
Region Margins & Growth (%)
| Region | FY2024 | FY2025 |
|---|---|---|
Mainland China gross margin (%) | 20.79 | -6.22 |
Overseas gross margin (%) | 42.05 | 35.97 |
A Shares by Reference
| Reference | A shares (MYR Bn) | H shares (HKD) |
|---|---|---|
IPO price | 82.79 (Jan 2022) | 42.80 (Aug 2025) |
All-time low | 40.88 (5 Feb 2024) | — |
All-time / 52-week high | 188.88 (25 Jun 2026) | 138.70 |
Recent close | 77.20 (6 Nov 2026) | 38.84 (3 Nov 2026) |
Change vs. IPO price (%) | -6.8 | -9.3 |
Change vs. all-time high (%) | -59.1 | -72.0 |
Valuation Multiples
| Multiple | SICC |
|---|---|
Market capitalisation (CNY Mn) | 37,412 |
TTM revenue (CNY Mn) | 1,912 |
TTM net profit attributable (CNY Mn) | -182 |
P/e Details
| P/E (TTM) | n.m. (loss) |
|---|---|
P/S (TTM, x) | 19.6 |
EV/Sales (TTM, x; FY2025 net cash) | 18.5 |
P/B (x; mid-2026 book value per share MYR Bn 14.67) | 5.3 |
EV/EBITDA (FY2025 EBITDA MYR Bn 253 M, x) | 140 |
Analyst Ratings & Targets
| Broker (date) | Rating | 2026E revenue | 2026E net profit | 2027E net profit | 2028E net profit |
|---|---|---|---|---|---|
China Galaxy (29 Apr 2026) | Recommend | 1,829 | 65 | 120 | 195 |
Huayuan (May 2026) | Buy | 2,272 | 38 | 185 | 309 |
China Post Securities (Aug 2026) | Buy | 2,050 | 68 | 247 | 408 |
AVIC Securities (24 Aug 2026) | Buy | 2,113 | 84 | 198 | 352 |
Analyst Conclusions
Management guidance. No numerical guidance. Management says prices have stabilised, 8-inch supply is tight, sales are growing faster than output, order books are full, and capacity is above 700,000 wafers a year and still rising. It expects 8-inch prices not to swing sharply in the short term, with long-term prices falling as costs fall.
Consensus. Brokers expect 2026 revenue of about RMB 1.8–2.3 billion (+25% to +55%) and net profit of about RMB 38–84 million. For 2027 they expect net profit of RMB 120–247 million and revenue growth of about 20–33%. 9M 2026 revenue of RMB 1,559 million plus a Q4 similar to Q3 points to about RMB 2.2 billion for the year, at the upper half of that range.
Bull case.
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Operating leverage. The gross margin rose from about −6% in Q4 2025 to 27.5% in Q3 2026 as 8-inch passed 50% of revenue. Q3 2026 net profit of RMB 85.8 million is roughly RMB 340 million annualised before further mix gains.
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Structural share gains. First globally in conductive substrates (27.6%) and in 8-inch (51.3%, or about 60% according to Yole), with doubled 2026 Infineon orders and near-sole supply to United Nova.
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New growth layers. AI 800V DC power and solid-state transformers, 12-inch interposers and heat spreaders, and AR waveguides could lift demand well beyond EVs, and 12-inch orders are already in hand.
Bear case.
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Price deflation. JPMorgan and Yole both forecast steep 8-inch price falls in 2026–2027. Domestic gross margin was −7% in 2025, and Chinese rivals keep adding capacity.
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Earnings quality. The 2,330% growth in 9M 2026 profit comes off a RMB 1.1 million base. TTM earnings are still negative, FX losses keep recurring, and inventory amounts to about 305 days.
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Geopolitics and overhang. The Toshiba termination shows the risk of losing non-Chinese customers. Pre-IPO investors keep selling, and the H shares trade below their IPO price.
Catalysts and monitorables for the next 12 months.
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Board approval and execution of the RMB 50–80 million buyback — Expected timing: Nov–Dec 2026
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Q4 2026 results and FY2026 profit warning or preliminary results — Expected timing: Jan–Feb 2027
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FY2026 annual report (first CAS-only report) and dividend decision — Expected timing: Mar 2027
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Contract pricing for 2027 with Infineon and other global IDMs; 8-inch price trend against Yole and JPMorgan forecasts — Expected timing: Q4 2026–Q1 2027
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12-inch capacity timeline at Lingang phase two and volume 12-inch orders (packaging and interposer use) — Expected timing: 2027
Malaysia plant investment decision and construction: Expected timing: 2027
- Lingang reaching about 960,000 wafers a year of planned capacity; utilisation at Jinan — Expected timing: Q4 2026–1H 2027
RMB exchange rate and the results of FX hedging: Expected timing: Ongoing
Further sales by Hubble, Guocai and Haitong-linked funds: Expected timing: Ongoing
- Trade, export-control or security actions affecting Chinese SiC suppliers — Expected timing: Ongoing
Analyst verdict. SICC came out of the 2025 SiC price war with a larger share of a market that is now tightening. Its gross margin went from about −6% in Q4 2025 to 27.5% in Q3 2026, and quarterly net profit from a loss of RMB 209 million to a profit of RMB 86 million. The drivers are structural rather than cosmetic. Eight-inch wafers, where SICC has about half the world's merchant supply, now make up more than half of revenue and command higher prices and margins. Six-inch prices have stopped falling. The tier-one overseas customers who stayed at about 36% gross margin through the downturn are increasing orders. The balance sheet is sound, with cash of about three times borrowings at the end of FY2025. The company leads on 12-inch, which offers optional upside from AI power, advanced packaging and optics.
Investors should not mistake the turnaround for durable earning power yet. Trailing earnings are still negative. The 2026 profit recovery is small next to a market value of about RMB 37 billion: about 19.6 times trailing sales and more than 100 times even the most optimistic 2026 profit forecast. The industry has repeatedly shown that new capacity follows price recoveries, and leading forecasters already expect 8-inch prices to fall by a fifth or more in 2027. Domestic sales were loss-making in 2025. Exposure to security-driven decoupling is real, as the Toshiba MOU showed. The sell-off of more than 55% since June 2026 has removed much of the speculative premium. The H shares now trade below their IPO price despite the earnings recovery.
On balance, SICC is the strongest-positioned merchant SiC substrate supplier as the industry moves to 8- and 12-inch wafers. The investment case depends on whether cost reductions from larger diameters and in-house equipment can outpace price erosion in 2027. The key evidence will be the Q4 2026 gross margin, the terms of 2027 contracts with global IDMs, and progress on 12-inch capacity. If quarterly gross margins stay above 25% through the 2027 price reset, today's valuation could be justified within two to three years. If 8-inch follows 6-inch into a price war, the 2025 losses could return.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Position | Appointed | Age (FY2025 report) | Background / education | FY2025 pre-tax remuneration (MYR Bn 10,000) |
|---|---|---|---|---|---|
Zong Yanmin (宗艳民) | Chairman, executive director, general manager; core technical staff | Director since 2 Nov 2010; current term to 28 Feb 2027 | 62 | Founder; has led the company since 2010; controlling shareholder | 374.56 |
Gao Chao (高超) | Executive director; chief technology officer; core technical staff | Director since 15 Aug 2019; CTO since Nov 2020 | About 39 | B.Sc. in inorganic non-metallic materials, Shandong University of Science and Technology (2009); Ph.D. in materials physics and chemistry, Zhejiang University (2014); senior engineer (professor level). Previously R&D engineer and head of the R&D centre. | 228.58 |
Wang Junguo (王俊国) | Executive director (employee representative since 30 Oct 2025); securities affairs representative | Nominated non-independent director Jul 2025 | 48 | Bachelor's degree; intermediate accountant; partner in employee platform Shanghai Juepeng | 30.49 |
Qiu Yufeng (邱宇峰) | Non-executive director | — | About 66 | Nominated by an investor | — |
Li Wanyue (李婉越) | Non-executive director | — | — | Nominated by an investor | — |
Li Honghui (李洪辉) | Independent non-executive director | — | — | — | 18.00 |
Liu Hua (刘华) | Independent non-executive director | — | — | — | 18.00 |
Li Guohong (黎国鸿) | Independent non-executive director (Hong Kong-based) | Appointed for the H-share listing | — | — | 15.02 |
Zhong Wenqing (钟文庆) | Board secretary; joint company secretary | Board secretary since 29 Aug 2022 | 58 | CFO Dec 2018–Apr 2023; executive director Apr 2023–Feb 2024 | 201.66 |
You Ying (游樱) | Chief financial officer | CFO since 29 Sep 2024 (joined Apr 2024 as Shanghai Tianyue's finance director) | 51 | Master's in economics; senior accountant (professor level); CPA; certified tax agent; Certified Internal Auditor | 135.62 |
Board & Management Changes
| Date | Change |
|---|---|
Apr 2023 | Zhong Wenqing moves from CFO to executive director; finance leadership changes |
Feb 2024 | Zhong leaves the board and stays as board secretary |
29 Sep 2024 | You Ying appointed CFO |
19 Feb 2025 | Zong Yanmin and Gao Chao re-designated as executive directors under the HKEX board structure |
Jul 2025 | Wang Junguo nominated as a director |
30 Oct 2025 | Wang Junguo appointed employee-representative director |
1H 2026 | Fang Wei leaves as non-executive director |
Major Shareholders
| Rank | Shareholder | Type | Shares | Stake (%) |
|---|---|---|---|---|
| 1 | Zong Yanmin | Individual (controlling shareholder) | 129,302,726 | 26.68 |
| 2 | HKSCC Nominees Limited (H shares) | Overseas nominee | 54,906,190 | 11.33 |
| 3 | Guocai Equity Investment Fund (Jinan) LP (managed by CNBM Private Fund Management) | Fund | 23,309,437 | 4.81 |
| 4 | Shanghai Maiming Enterprise Management Center LP (controlled by Zong) | Employee platform | 23,133,000 | 4.77 |
| 5 | Liaoning Zhongde Industrial Equity Investment Fund LP (managed by Haitong New Energy PE) | Fund | 20,329,623 | 4.19 |
| 6 | Hubble Technology Venture Capital Co., Ltd. (Huawei) | Corporate investor | 18,539,367 | 3.83 |
| 7 | Shanghai Zhuao Enterprise Management Center LP (controlled by Zong) | Employee platform | 12,900,000 | 2.66 |
| 8 | Liaoning Haitong New Energy Low-Carbon Industry Equity Investment Fund | Fund | 6,414,700 | 1.32 |
| 9 | Hong Kong Securities Clearing Co. (Northbound Connect) | Nominee | 4,865,940 | 1.00 |
| 10 | China AMC SSE STAR Market Semiconductor Materials & Equipment ETF | Fund | 4,433,000 | 0.91 |
Competitive Landscape
Key Competitors
| Competitor | Home market | Position |
|---|---|---|
Wolfspeed (US) | US | Former global leader in conductive substrates; restructured through Chapter 11 in 2025; negative gross margin in calendar 2025 (−3.23%) |
Coherent (SiC business) (US) | US | Major 6- and 8-inch supplier; Denso and Mitsubishi Electric invested in the SiC unit |
SK siltron css (Korea/US) | Korea/US | Supplier from US fabs |
onsemi (GTAT) (US) | US | Captive substrate supply for its own devices |
ROHM / SiCrystal (Japan/Germany) | Japan/Germany | Captive and merchant supply |
STMicroelectronics (Norstel) (Europe) | Europe | Partly captive supply |
TankeBlue (天科合达) (China) | China | Leading domestic conductive rival |
Shanxi Semisic (烁科晶体) (China) | China | State-linked domestic rival |
Hebei Synlight (同光) (China) | China | Domestic rival |
Sanan Optoelectronics (三安光电) (China) | China | Vertically integrated from substrate to device; 2025 gross margin 12.43% |
TYSiC (天域半导体, HK 2658) and EpiWorld (瀚天天成, HK 2726) | China | Epitaxy specialists that are both customers and potential competitors |
Key Competitors (Annual)
| Company | Main business | FY2024 | FY2025 |
|---|---|---|---|
SICC | SiC substrates | 25.90 | 13.05 |
Sanan Optoelectronics | SiC substrates and power devices | 11.90 | 12.43 |
EpiWorld | SiC substrates and epitaxy | 34.11 | 24.81 |
Wolfspeed (calendar year) | SiC substrates and power devices | 9.59 | -3.23 |
NSIG (沪硅产业) | Silicon wafers and epitaxy | -8.98 | -17.06 |
Xi'an ESWIN (西安奕材) | Silicon wafers and epitaxy | 5.94 | 3.92 |
Peer Comparison FY2025
| Metric | FY2024 | FY2025 |
|---|---|---|
SICC share, all conductive (%) | 22.8 | 27.6 |
SICC share, 8-inch conductive (%) | — | 51.3 |
SICC share, 6-inch conductive (%) | — | 27.5 |
