BRIEF: SICC swings to loss as price pressures erode margins
Semiconductor materials maker SICC Co. Ltd. (2631.HK; 688234.SH) said on Monday that it swung to a loss in 2025, as falling product prices and rising costs weighed on its profitability. The company forecast it will report a net loss of between 185 million yuan ($26.6 million) and 225 million yuan for the year, compared with a net profit of about 179 million yuan in 2024.
Revenue for the year is expected to total between 14.5 billion yuan and 15 billion yuan, representing a year-on-year decline of 15.2% to 18.0%, the company said.
SICC noted that while its substrate products sales volume increased during the period, stiff competition forced it to lower its average selling prices, leading to an overall revenue decline. At the same time, selling expenses rose as the company promoted the use of large-diameter products into new application areas. Continued investment in large-size substrates and new manufacturing processes also pushed up R&D costs.
Higher tax-related expenses, foreign exchange losses caused by fluctuations in the yuan, asset impairment provisions, and costs associated with its Hong Kong listing further pressured earnings during the year.
The company’s stock opened lower on Tuesday in Hong Kong, closing at HK$58.5 by the midday break, down 4.57%.
By Lee Shih Ta
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