Understanding the Market | SICC rose nearly 4%, with R&D expenditure in the first half increasing by approximately 34.94% year-on-year. The company's clients have successfully entered the NVIDIA supply chain

According to Zhitong Finance APP, TianYue Advanced (02631) rose nearly 4% during the trading session, and as of the time of publication, it was up 3.17%, trading at HKD 44.88, with a transaction volume of HKD 82.9345 million.

In terms of news, recently, TianYue Advanced announced its mid-term performance for 2025, achieving total revenue of approximately RMB 794 million, a year-on-year decrease of about 12.98%; R&D expenditure of approximately RMB 75.85 million, a year-on-year increase of about 34.94%; and a net profit attributable to shareholders of the listed company of approximately RMB 10.88 million, with earnings per share of RMB 0.03. The announcement stated that the increase in R&D expenditure was mainly used for technical breakthroughs in large-size substrate products and the expansion of emerging application fields such as AR glasses. The decrease in revenue was mainly due to the company's continuous efforts to increase the penetration of silicon carbide substrate materials in downstream applications and to improve the market share of its products, resulting in a year-on-year decline in substrate sales prices.

The group has made advanced layouts in the silicon carbide substrate product matrix. The group's 8-inch conductive substrate products have leading quality and mass supply capabilities, making it one of the few market participants capable of mass shipping 8-inch silicon carbide substrates, continuously encouraging top customers to actively transition to 8-inch. Currently, the group has formed a product matrix of 6/8/12-inch silicon carbide substrates, including 12-inch high-purity semi-insulating silicon carbide substrates, 12-inch conductive P-type, and 12-inch conductive N-type silicon carbide substrates. As the silicon carbide industry fully enters the "12-inch new era," the group will leverage ultra-large size technology and products as a pivot to continue deepening its exploration of the blue ocean market for silicon carbide semiconductor materials.

In addition, TianYue Advanced stated on the interactive platform that the company is committed to building a close cooperation ecosystem with customers and suppliers to jointly promote the development of the silicon carbide industry; from the perspective of cooperation results, the company has established business cooperation relationships with more than half of the top ten power semiconductor device manufacturers globally (based on revenue in 2024). The company's clients, Infineon and ON Semiconductor, have successfully entered the supply chains of industry giants such as NVIDIA, becoming an important part of AI computing power infrastructure