SICC Co., Ltd. (02631) reported a 15.1% year-on-year growth in mid-term operating revenue to 914 million yuan, focusing on ramping up large-sized products and driving the continuous optimization and upgrade of product structure.

SICC Co., Ltd. (02631) announced its performance for the six months ending June 30, 2026, reporting an operating revenue of 914 million yuan, a year-on-year increase of 15.10%, and a comprehensive gross profit margin of 22.86%. With the accelerated evolution of new energy vehicles towards high-voltage platforms and the continuous expansion of AI computing infrastructure, the value of silicon carbide in downstream application scenarios continues to stand out, and market penetration is steadily increasing. During the reporting period, the company's product output and sales steadily grew, achieving year-on-year and quarter-on-quarter revenue growth; relying on its market-leading position in large-sized silicon carbide substrates, combined with ongoing cost reduction and efficiency improvement measures, and supported by recovering downstream demand driving product prices to stabilize, the company's gross profit margin level improved. In terms of quarters, the second quarter of 2026 achieved operating revenue of 548 million yuan, setting a new historical high for a single quarter, with a year-on-year growth of 42.06% and a quarter-on-quarter growth of 49.97%. The quarterly gross profit margin was 25.36%, with a net profit attributable to shareholders of the listed company of 1.893 million yuan for the quarter. Large sizing is one of the core directions for cost reduction, efficiency improvement, and the expansion of applications in the silicon carbide substrate industry, and it is also a key endogenous variable for the company's operational improvement in the first half of 2026. During the reporting period, the company adapted to the industry's trend of upgrading from 6 inches to 8 inches and proactively laid out 12-inch products, forming a clear product tier of "stable supply of 6-inch, accelerated rollout of 8-inch, and continuous breakthroughs in 12-inch." Among them, the 8-inch products have gradually moved from the technical leading stage to mainstream application, with the main business revenue of the company's 8-inch products exceeding 50%. According to data from Fuji Economy, the company's global market share of conductive silicon carbide substrates of 8 inches is projected to reach 51.3% by 2025, ranking first globally. In terms of larger size layout, the company launched the industry's first 12-inch silicon carbide substrate in November 2024, and completed the technical challenges of the full series of 12-inch conductive N-type, conductive P-type, and semi-insulating products in the first quarter of 2025. Currently, 12-inch products have already received orders from leading customers, indicating that the company is at the forefront of the next generation of large-sized substrates. The significance of the 12-inch is not just a technical demonstration; rather, the mass production of 12-inch will enable successful implementation in many emerging fields, allowing SiC, as an advanced platform material, to further reduce unit costs in various areas and open up larger commercial spaces. In the first half of 2026, the company's R&D expenses were 74.5744 million yuan, roughly in line with the same period last year. The R&D investments were primarily focused on the development of 12-inch silicon carbide substrates, improving the yield and reducing costs of 8-inch substrates, P-type substrates, as well as emerging fields such as optics and advanced packaging. The company did not reduce its R&D investments during the industry's tough phase but continued to increase its focus on forward-looking technologies and new application directions, demonstrating strong long-term investment commitment.