Core Viewpoint - Tianyue Advanced (02631) expects a significant decline in both revenue and net profit for the fiscal year 2025 compared to the previous year, primarily due to market price decreases and strategic adjustments in market share expansion [1][2] Group 1: Revenue and Profit Forecast - The company anticipates annual revenue for 2025 to be between 1.45 billion to 1.5 billion RMB, representing a decrease of 318 million to 268 million RMB, or a year-on-year decline of 17.99% to 15.17% [1] - The expected net profit attributable to the parent company is projected to be a loss of 225 million to 185 million RMB, a reduction of 404 million to 364 million RMB compared to the previous year, equating to a year-on-year decrease of 225.68% to 203.34% [1] Group 2: Factors Influencing Financial Performance - Despite an increase in sales volume of substrate products, overall revenue has declined due to falling market prices, influenced by domestic market competition and the company's strategic decision to expand market share [1] - Increased sales expenses are attributed to the company's efforts to explore new applications for large-sized products, while R&D expenses have risen to maintain technological leadership in the industry [1] - Additional factors contributing to the decline in net profit include increased tax expenses and penalties, reduced gross profit due to lower product prices, foreign exchange losses from RMB fluctuations, increased asset impairment provisions, and higher costs associated with overseas listings [2]

Core Viewpoint - Tianyue Advanced Technology Co., Ltd. is expected to experience a significant decline in both revenue and net profit for the fiscal year 2025 compared to the previous year, indicating potential challenges in the company's financial performance and market position [1][2]. Group 1: Financial Projections - The company anticipates a revenue range of 1.45 billion to 1.5 billion RMB for 2025, representing a decrease of 318.14 million to 268.14 million RMB, or a year-on-year decline of 17.99% to 15.17% [1]. - The projected net profit attributable to the parent company is expected to be a loss between 225 million to 185 million RMB, reflecting a decrease of 404.03 million to 364.03 million RMB, which translates to a year-on-year decline of 225.68% to 203.34% [1]. - The net profit attributable to the parent company after excluding non-recurring gains and losses is projected to be a loss of 275 million to 235 million RMB, indicating a reduction of 431.09 million to 391.09 million RMB, or a year-on-year decrease of 276.18% to 250.55% [1]. Group 2: Market and Operational Factors - The company experienced an increase in substrate product sales; however, overall revenue declined due to falling market prices influenced by domestic competition and strategic adjustments aimed at increasing market share [2]. - Increased sales expenses were incurred as the company actively sought to expand the application of large-sized products in new markets, while R&D expenses rose due to ongoing investments in maintaining technological leadership [2]. - Factors contributing to the decline in net profit include increased tax expenses and penalties, reduced gross profit due to lower product prices, foreign exchange losses from RMB fluctuations, increased asset impairment provisions, and additional costs associated with overseas listings [2].

（於中華人民共和國註冊成立的股份有限公司） 山東天岳先進科技股份有限公司 SICC CO., LTD. （股份代號：2631） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不會對本公告的全部或任何部分內容所產生或 因依賴該等內容而引致的任何損失承擔任何責任。 2025年年度業績預告 本公告乃根據山東天岳先進科技股份有限公司（「本公司」或「公司」）根據香港 聯合交易所有限公司證券上市規則（「上市規則」）第13.09條及13.10B條及香港法 例第571章證券及期貨條例第XIVA部項下之內幕消息條文（定義見上市規則）而 作出。 一、本期業績預告情況 （一）業績預告期間 2025年1月1日至2025年12月31日 （二）業績預告情況： 經財務部門初步測算： 1、 營業收入：176,814.10萬元。 2、 利潤總額：15,926.41萬元。 3、 歸屬於母公司所有者的淨利潤：17,902.51萬元。 4、 歸屬於母公司所有者的扣除非經常性損益的淨利潤：15,609.30萬元。 5、 每股收益：0.42元。 報告期內，公司襯底產品銷量增加但 ...

Core Viewpoint - The silicon carbide (SiC) power device market is experiencing significant growth due to its superior characteristics such as lower conduction resistance, higher operating temperatures, and higher voltage capabilities, leading to increased applications in high-voltage and high-power sectors [1][7]. Market Overview - The global power semiconductor device market is projected to grow to 37.45 billion yuan by 2025, with the SiC power device market expected to reach 2.83 billion yuan, resulting in a market penetration rate of 7.56%. By 2026, the global power semiconductor market is anticipated to reach 40.78 billion yuan, with the SiC market growing to 3.88 billion yuan and a penetration rate of 9.51% [1][5][7]. Industry Definition and Classification - SiC power devices include SiC diodes, SiC switches, and SiC power modules, with various subcategories such as SBD diodes, PiN diodes, and SiC MOSFETs. SiC materials exhibit high thermal conductivity and can operate at high temperatures, making them suitable for extreme conditions [2][4]. Current Industry Status - The power device market is benefiting from the resurgence in consumer electronics demand and the growth of emerging applications such as automotive electronics, IoT, and AI. The SiC power device market has seen substantial growth, with a rise from 450 million yuan in 2020 to 2.83 billion yuan in 2025, and a penetration increase from 1.42% to 7.56% during the same period [4][7]. Industry Chain - The SiC power device industry chain consists of upstream materials like SiC epitaxial wafers and substrates, midstream production involving IDM and wafer foundries, and downstream applications in sectors such as photovoltaic power generation, electric vehicles, and smart grids [7][8]. Competitive Landscape - The global SiC power device market is characterized by a dual oligopoly of international giants and domestic leaders. Key international players include Rohm, Fuji Electric, and Infineon, while domestic companies like BASiC Semiconductor and Stada Semiconductor are gaining market share through vertical integration [8][9]. Future Outlook - The SiC power device sector is expected to continue evolving to meet increasing demands for cost efficiency and quality, with applications expanding in electric vehicles and renewable energy. The industry is focused on enhancing energy conversion efficiency and reliability while reducing costs [10].

Summary of SICC Co Ltd Conference Call Company and Industry Overview - **Company**: SICC Co Ltd (688234.SS) - **Industry**: Greater China Technology Semiconductors Key Points and Arguments 1. **SiC Substrate Pricing Trends**: - 6-inch SiC substrate prices have increased by approximately 15% to Rmb2,100 (~US$300) due to vendors bundling with higher margin products to improve profitability [2] - In contrast, pricing for 8-inch substrates continues to decline, reaching around Rmb4,500 (~US$640) [2] 2. **Profitability Outlook for SICC**: - SICC's profitability is expected to improve as 6-inch pricing rebounds and the company benefits from technological advancements and economies of scale [3] - The share price of SICC rose 26% year-to-date to Rmb111.19 as of January 16, 2026, outperforming the Shanghai Composite Index, which gained 2% in the same period [3] 3. **Market Reaction**: - The market's reaction to SICC's share price increase is viewed as an overreaction, suggesting potential volatility in investor sentiment [3] 4. **Growth Opportunities**: - The total addressable market (TAM) opportunities for augmented reality (AR) glass and AI data centers have been previously assessed, indicating potential growth areas [3] - However, for newer growth drivers like interposers and heat sinks, it is considered too early to evaluate their impact [3] Financial Metrics - **Current Share Price**: Rmb111.19 - **Market Capitalization**: Rmb47,779.6 million - **52-Week Range**: Rmb49.09 - Rmb111.19 - **Projected Revenue**: - 2025: Rmb1,764 million - 2026: Rmb2,119 million - 2027: Rmb2,442 million [5] Valuation and Risks - **Valuation Methodology**: Utilizes a P/B ratio of 5.4x based on historical averages since the company's listing in January 2022, reflecting the industry's volatility [9] - **Upside Risks**: - Lower-than-expected erosion in SiC substrate pricing - More long-term agreements with global integrated device manufacturers (IDMs) - Faster market share gains compared to peers [10] - **Downside Risks**: - Higher-than-expected erosion in SiC substrate pricing - Fewer long-term agreements with IDMs - Slower market share gains compared to peers [10] Additional Insights - **Analyst Ratings**: The stock is rated as "Equal-weight" with a price target of Rmb67.10, indicating a potential downside of 40% from the current price [5] - **Earnings Projections**: - EPS for 2025 is projected at Rmb0.06, with a gradual increase expected in subsequent years [5] This summary encapsulates the critical insights from the conference call regarding SICC Co Ltd, highlighting the company's current market position, pricing trends in the SiC substrate market, and future growth opportunities along with associated risks.

Summary of SICC (688234.SS) Conference Call Company Overview - **Company**: SICC (688234.SS) - **Industry**: Silicon Carbide (SiC) substrate manufacturing Key Points Industry Dynamics - The downward trend in SiC substrate pricing is expected to broaden its application across various sectors, including electric vehicles (EVs), AI data centers, and AI glasses, leading to a stronger penetration rate and healthier competition in the market [1][2] - The adoption of SiC technology is anticipated to accelerate industry consolidation, enhancing competitive dynamics [1] Company Performance and Strategy - Management expressed a positive outlook for 2026 and beyond, supported by strong R&D efforts aimed at improving yield rates and profitability, despite the declining prices of SiC substrates [1] - SICC is actively reducing prices for 8-inch SiC substrates to capture more market share while aiming to lower costs faster than the price reductions to maintain profitability [2] - The company holds a leading position in the semi-insulating SiC substrate market, being the first to deliver 12-inch SiC substrates and innovating in liquid phase growth (LPG) techniques [2] Product Applications - Key applications for SiC include: - **Electric Vehicles (EVs)**: Enabling fast charging capabilities - **AI Data Centers**: Enhancing power efficiency through the use of SiC in 800V HVDC, PSU, and BBU, which improves energy conversion efficiency and cooling [1] - **AI Glasses**: Improving performance and reducing weight [1] Financial Projections - Expected revenue growth of SICC is projected at a compound annual growth rate (CAGR) of +53% from 2025 to 2028, with 8-inch SiC substrate revenues contributing over 80% by 2026 [1] - Gross margin (GM) is anticipated to recover to 34% by 2026 [1] Risks and Valuation - The 12-month target price for SICC is set at Rmb115, based on a P/E ratio of 30.9x for 2029E [3] - Identified downside risks include: - Slower-than-expected capacity expansion and shipment ramp-up of 6-inch substrates - Slower penetration into high-power supply applications [3][6] Additional Insights - SICC's superior product quality allows for higher average selling prices (ASP) in the industry, and clients using their substrates achieve better yield rates in SiC device production [2] - The company is focused on continuous enhancements in SiC ingot thickness and production efficiency, which are critical for maintaining its competitive edge [2] This summary encapsulates the essential insights from the conference call regarding SICC's strategic direction, market dynamics, financial outlook, and associated risks.

Group 1: Robotics Sector - The robotics concept stocks experienced a broad increase, with notable gains from companies like XAG (02590) up 5.93%, Yunji (02670) up 5.10%, and Blues Technology (06613) up 4.82%. According to an Omdia report, the global annual installation of humanoid robots is expected to add approximately 16,000 units by 2025, with Zhiyuan Robotics leading the market in installations [1][2] - Tianyue Advanced (02631) surged over 15.8% as a report from Zheshang Securities highlighted its active expansion into silicon carbide applications in emerging fields, indicating long-term growth potential [1] - WeRide (00800) rose over 3.4% as it announced that its global Robotaxi fleet will reach 1,000 vehicles by January 12, 2026, with successful commercial operations in cities like Guangzhou, Beijing, and Abu Dhabi [1] - Cao Cao Mobility (02643) increased nearly 8% following its announcement of two strategic acquisitions, including a full acquisition of Weixing Technology and plans to acquire Geely Business Travel [1] Group 2: Energy and Materials Sector - Oil and gas stocks saw significant declines, with Shandong Molong (00568) dropping over 8.1% due to a sharp decrease in international oil prices, with Brent crude futures falling by $2.76 or 4.15% to $63.76 per barrel [2] - Innovation Industry (02788) rose nearly 8% as aluminum prices have surged significantly since 2026, with Huatai Securities indicating that the overall supply-demand tightness will continue, supporting a long-term profit increase in the aluminum sector [2] Group 3: Aerospace and Technology Sector - The commercial aerospace sector showed signs of recovery, with companies like Asia Pacific Satellite (01045) and JunDa Co. (02865) both rising by 5.02%. This follows Elon Musk's announcement that SpaceX aims to increase Starship launch frequency to over once per hour within three years [2] - Weichai Power (02338) increased over 4.9% as it announced advancements in solid-state battery research and strong demand for its power generation products [3] - Zhaoyi Innovation (03986) rose over 6.2% as a Counterpoint Research report indicated that the memory market has entered a "super bull market," surpassing historical highs from 2018 [4] Group 4: US Market Highlights - Nuclear power stocks strengthened, with Talen Energy (TLN.US) up 11.8% and Vistra Energy (VST.US) up 6.63%, following news of a new bipartisan bill proposing a $2.5 billion Strategic Resilience Reserve to secure key minerals domestically [5] - Morgan Stanley (MS.US) rose 5.78% after reporting Q4 revenue growth of 10% to $17.89 billion, exceeding market expectations [5] - The weight loss drug sector faced pressure, with Eli Lilly (LLY.US) down 3.76% as its weight loss drug was placed under FDA review, delaying a decision until April 2026 [6] - Dell Technologies (DELL.US) increased by 0.82% as Omdia reported a significant recovery in the global PC market, with a projected 9.2% increase in total shipments for 2025 [8]

Group 1 - Tianyue Advanced (02631) saw a significant increase of over 17%, reaching a new high of 70.4 HKD per share, with a current trading price of 68.4 HKD and a transaction volume of 314 million HKD [1] - Zhejiang Securities' report highlights Tianyue Advanced's active expansion into silicon carbide (SiC) applications in emerging fields, indicating long-term growth potential [1] - The report identifies three key areas for SiC application: 1. AR Glasses: SiC materials are expected to be ideal for next-generation AR glasses due to their high refractive index and lightweight properties, leading to better display performance [1] 2. AIDC: With the surge in AI computing demand, SiC power devices can significantly enhance server power efficiency, aligning with the trend of data centers transitioning to 800V high-voltage architectures driven by giants like NVIDIA [1] 3. Advanced Packaging: Single crystal SiC's thermal conductivity is 2-3 times higher than silicon, making it an ideal material for intermediary layers, potentially providing new thermal management solutions for CoWoS packaging [1] Group 2 - TSMC's Q4 2025 performance exceeded expectations, marking the seventh consecutive quarter of double-digit growth, with net profit soaring 35% year-on-year to approximately 16 billion USD, setting a historical record [2] - TSMC's gross margin has surpassed 60% for the first time, and the company has significantly raised its capital expenditure guidance for 2026 to 52-56 billion USD, nearly 40% higher than previous estimates [2] - The report from Huaxin Securities indicates that SiC materials meet the performance requirements for AI chips, with major AI clients leading the upgrade of intermediary layer materials [2]

Group 1 - Tianyue Advanced (02631) saw a significant increase of over 17%, reaching a new high of 70.4 HKD, with a trading volume of 314 million HKD [1] - Zhejiang Securities' report highlights Tianyue Advanced's active expansion into silicon carbide (SiC) applications in emerging fields, indicating long-term growth potential [1] - SiC materials are expected to be ideal for next-generation AR glasses due to their high refractive index and lightweight advantages, leading to improved display performance [1] - The demand for AI computing power is driving the need for efficient data center energy consumption, where SiC power devices can significantly enhance server power efficiency [1] - SiC is anticipated to become a key material as major companies like NVIDIA push data centers towards an 800V high-voltage architecture [1] - Single crystal SiC has a thermal conductivity 2-3 times higher than silicon, making it an ideal material for intermediary layers, potentially providing new thermal management solutions for CoWoS packaging [1] Group 2 - TSMC's Q4 2025 performance exceeded expectations, achieving double-digit growth for the seventh consecutive quarter, with net profit soaring 35% year-on-year to approximately 16 billion USD, marking a historical high [2] - TSMC's gross margin has surpassed 60% for the first time, indicating strong operational efficiency [2] - The company has significantly raised its capital expenditure guidance for 2026 to 52-56 billion USD, nearly 40% higher than previous expectations [2] - TSMC anticipates a substantial increase in capital expenditures over the next three years [2] - SiC materials are identified as meeting the performance requirements for AI chips, with major AI clients leading the upgrade of intermediary layer materials [2]

Summary of SICC (688234.SS) Conference Call Company Overview - **Company**: SICC (688234.SS) - **Industry**: Semiconductor, specifically focusing on Silicon Carbide (SiC) substrates Key Points 1. Strong Technology - SICC has a leading market position in semi-insulating SiC substrates - First company to deliver 12-inch SiC substrates - Early developer of liquid phase growth (LPG) technology, combining LPG with vapor phase methods - Fully in-house designed crystal growth furnace and continuous enhancement in SiC ingot thickness - Superior product quality allows for higher average selling prices (ASP) and better yield rates for clients producing SiC devices [2][3] 2. Expanding Applications - Management is optimistic about expanding SiC applications across various sectors: - Electric Vehicles (EVs) for fast driving - Power semiconductors in AI servers (800V AIDC) - Augmented Reality (AR) glasses, specifically optical waveguide lenses - Advanced packaging for better heat conduction to support rising GPU computing power - Expected showcase of SiC products in AR glasses in the second half of 2026, with significant revenue contributions anticipated in 2027 - A single 12-inch SiC substrate can support the production of 10-12 AR glasses [3][4] 3. SiC Substrate Pricing Trend - Substrate prices are projected to decline by mid-double digits in 2025, with a continued downward trend expected in 2026 - This price decline is anticipated to facilitate wider adoption of SiC across various applications - Smaller vendors may exit the market due to lower profits - SICC's management remains positive about profitability due to their leading market position, strong technology, and product quality - Ongoing enhancements in production costs and technology development (e.g., thicker ingots and LPG) are expected to support gross margin (GM) expansion in the coming years [4][9] 4. Financial Projections - 12-month target price set at Rmb115, based on a P/E ratio of 30.9x for 2029E - Revenue projections for the next few years: - 2024: Rmb1,768.1 million - 2025: Rmb1,603.9 million - 2026: Rmb2,878.5 million - 2027: Rmb4,167.7 million - Expected EBITDA growth from Rmb436.4 million in 2024 to Rmb1,639.3 million in 2027 - EPS forecasted to increase from Rmb0.42 in 2024 to Rmb2.18 in 2027 [10][8] 5. Risks - Potential risks include: - Slower-than-expected capacity expansion and shipment ramp-up of 6-inch substrates - Slower penetration into high power supply applications (e.g., EVs, transportation) - Increased competition in the SiC substrate market - Volatile valuation due to short listing history - Loss of access to key equipment or supply tightness [9][10] Conclusion - SICC is positioned strongly within the SiC substrate market, with a focus on technology and expanding applications - The company is expected to benefit from declining substrate prices and increasing demand across various sectors - Financial projections indicate significant growth potential, although risks remain that could impact performance