SICC CO.(SH:688234) Xin Lang Zheng Quan·2025-06-20 09:02Core Viewpoint - Tianyue Advanced, known as the "first stock of silicon carbide substrates," is planning to issue up to 87.21 million H-shares to accelerate international expansion and enhance its capital strength and competitive advantage [1][2]. Group 1: Company Overview - Tianyue Advanced was established in November 2010 and focuses on the research, production, and sales of silicon carbide substrates, which are widely used in microwave electronics and power electronics [2]. - The company ranked third globally in the semi-insulating silicon carbide substrate market by sales from 2019 to 2020, according to Yole report [2]. Group 2: Financial Performance - The actual issuance price of Tianyue Advanced's shares was 82.79 CNY per share, nearly double the previously expected price of 46.54 CNY, resulting in a total fundraising of 3.203 billion CNY, exceeding the target by 1.203 billion CNY [3]. - Despite increased production capacity, Tianyue Advanced reported a total net loss of 221 million CNY from 2022 to 2023, with a significant drop in gross margin from 25%-35% to -5.75% in 2022 [4][5]. - In the first quarter of 2025, the company recorded a net profit of 8.52 million CNY, a year-on-year decrease of 81.52%, with a net margin of 2.09% [5]. Group 3: Stock Performance - Tianyue Advanced's stock has been underperforming, with approximately 70% of the time trading below its initial public offering price, and as of June 20, 2025, the stock price was 57.38 CNY, down 30.69% from the IPO price [6][7]. - The stock price fell to a low of 41.00 CNY within four months of listing, indicating a significant decline from the initial offering price [6]. Group 4: Shareholder Activity - Major shareholders, including those associated with Haitong Securities, have reduced their holdings twice, cashing out approximately 760 million CNY, raising concerns about the company's future prospects [8].