SICC Co., Ltd. Warns Shareholders as Losses Exceed One-Third of Share Capital

SICC Co.,Ltd. Class H ( (HK:2631) ) just unveiled an announcement.

SICC Co., Ltd. reported that its accumulated undistributed losses reached RMB 331.29 million as of 31 December 2025, exceeding one-third of its paid-in share capital of RMB 484.62 million. In line with Chinese company law and its articles of association, the board has approved submitting this uncovered loss situation to a shareholders’ meeting for deliberation.

The company attributed the losses to several factors, including lower average selling prices driven by intensified competition and a strategic push to gain market share, despite year-on-year growth in substrate sales volume. Rising selling and R&D expenses to promote large-size products and maintain technological leadership, higher income tax and surcharges, foreign exchange losses, asset impairment provisions, and expenses related to its overseas listing collectively turned prior profits into losses and significantly weakened profitability.

The most recent analyst rating on (HK:2631) stock is a Buy with a HK$79.00 price target. To see the full list of analyst forecasts on SICC Co.,Ltd. Class H stock, see the HK:2631 Stock Forecast page.

More about SICC Co.,Ltd. Class H

SICC Co., Ltd. is a Chinese manufacturer in the silicon carbide substrate industry, supplying materials used in advanced electronics and emerging application markets. The company focuses on large-size silicon carbide substrates and related processes, aiming to expand its market share and consolidate its competitive position amid intensifying domestic competition.

Average Trading Volume: 1,778,178

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$38.11B

Learn more about 2631 stock on TipRanks’ Stock Analysis page.