On 20th October, SICC (688234) released its Q3 2026 financial report, presenting highly impressive data:
The cumulative revenue for the first three quarters reached CNY 1.559 billion, a year-on-year increase of 40.22%, while net profit surged by 2330.24% year-on-year.
Revenue for Q3 alone reached CNY 646 million, up 102.89% year-on-year, with the revenue share of 8-inch products also breaking through the 50% mark.
However, on the first trading day after the report's release, its A-share stock price actually fell by 10%. Perhaps many failed to grasp the true "quality" of this financial report or see through the industry trends in the SiC sector hidden behind the numbers. Today, we will break it down layer by layer.
First, let's take a look at SICC's revenue performance.
In the first three quarters of 2026, SICC's revenue reached CNY 1.559 billion. If we extend the timeline and place this figure within the context of historical annual revenues, the development trend revealed by the financial data will become much clearer.
As shown in the chart below, SICC's revenue in the first three quarters of this year has already significantly surpassed the full-year 2025 figure of CNY 1.465 billion. It is expected that the total revenue for the full year will surpass the peak performance of CNY 1.768 billion in 2024, reaching a historical "best position".
This demonstrates that after a brief adjustment in 2025, SICC's performance has experienced a strong rebound and recovery, returning to the track of high-speed growth.
In the context of the SiC substrate industry, as a first-tier global manufacturer, SICC's financial report is not just its own scorecard, but also a barometer for observing the domestic SiC industry cycle. Although not all SiC substrate companies can achieve steady growth like the leading enterprises, it is sufficient to show that the development momentum of the SiC track is being continuously released.
If we compare SICC's revenue for the first three quarters with historical data, we might also see new trends at the industry level.
Notably, SICC's revenue in the first three quarters of 2026 increased by 40.22% year-on-year, setting a new historical high of CNY 1.559 billion for the same period.
Placing this data back into the historical coordinates reveals that SICC's revenue for the first three quarters grew from CNY 370 million in 2021 to CNY 1.559 billion in 2026, achieving a scale expansion of over four times in five years.
Compared to full-year data, the growth rate for the first three quarters more intuitively reflects the realization pace of the company's capacity landing, and also reflects the continuous volume increase on the demand side of the SiC substrate track.
Regarding the revenue growth in the first three quarters of this year, SICC pointed out that this is driven by multiple downstream scenarios: the continuous increase in the penetration rate of 800V high-voltage platforms in NEVs drives the steady volume increase of automotive-grade conductive substrates; high-voltage power supplies for AI servers have become a core new demand, coupled with the release of demand for optical storage and high-power ultra-fast charging. The synergy of multiple downstream sectors drives the growth of substrate shipment scale, achieving a year-on-year increase in revenue.
If we continue to break it down to the single-quarter financial report, we can read another layer of key signals.
On the one hand, from Q1 2026 (CNY 366 million), Q2 (CNY 548 million) to Q3 (CNY 646 million), it can be seen that SICC has achieved positive quarter-on-quarter growth for three consecutive quarters.
On the other hand, SICC achieved an operating revenue of CNY 646 million in Q3 this year, a year-on-year increase of 102.89%. This figure directly broke the company's historical highest single-quarter revenue record, and the year-on-year doubling growth rate of over 100% fully demonstrates the resonance between SICC's capacity release and market demand, steadily entering a high-growth trajectory.
Secondly, let's take a look at SICC's net profit. Revenue reflects how much the scale has expanded, while net profit is the key to judging the substance of the growth.
The report shows that SICC's net profit attributable to shareholders of the listed company for the first three quarters totaled CNY 27.2162 million, a year-on-year increase of 2330.24%.
The cumulative net profit is only about CNY 27.21 million, which may be the main reason for its stock price decline. However, many may have overlooked that SICC successfully turned losses into profits in the first three quarters of 2026, delivering a highly resilient profitability performance.
In particular, the net profit in Q3 this year truly marks the turning point of this round of profitability improvement. This may reflect the return of SICC's profitability to the right track, and also releases a possible signal of profitability recovery for the entire SiC industry.
The financial report shows that SICC's net profit attributable to shareholders of the listed company reached CNY 85.8329 million in Q3 this year, achieving a turnaround from loss to profit, with the quarterly gross margin reaching a healthy level of 27.46%.
Looking at SICC's historical single-quarter profit margins, the net profit for this single quarter not only refreshed its historical highest single-quarter profit record since its listing, but also surpassed the profit peaks of all previous periods.
Regarding the rapid increase in profit, SICC stated that this is due to the expansion of SiC revenue scale bringing an increase in gross profit, and the scale effect and product structure optimization further pushing up the gross margin (the revenue share of 8-inch SiC substrates exceeded 50% in the single quarter). Moreover, although financial expenses increased due to exchange rate fluctuations, the company's total profit still achieved significant growth.
The strong profit performance in this quarter is not only a reflection of the phased recovery of SICC's own profitability, but also indicates that the price reduction pressure in the SiC substrate industry is improving.
Research Summary
Rather than worrying about the rise and fall of stock prices, it is better to understand the signals being released by the SiC substrate industry through SICC's financial report. Looking at the entire industry landscape, as SiC substrate processes continue to iterate and costs decline, the applicable scenarios for SiC devices are constantly expanding. With the simultaneous release of demand in NEVs, data centers, solid-state transformers, industrial power supplies, etc., the industry is ushering in a new round of demand windows.
We look forward to SICC continuing the momentum of growth and improvement in Q4, moving more steadily and better in the future. We also look forward to the entire SiC substrate industry achieving healthier development amidst demand release and profitability recovery.