We are a global leader in the silicon carbide (SiC) epitaxy industry. We have been primarily engaged in the research and development, mass production and sales of SiC epitaxial wafers, components used in the manufacturing of SiC semiconductor devices. Our customers utilize our SiC epitaxial wafers to manufacture their power devices for a wide range of downstream applications like EVs, charging infrastructure, renewable energy, ESS and etc. According to CIC, since 2023, we have been the world’s largest SiC epitaxial foundry by annual sales volume, with a market share exceeding 30% in 2024.
We had revenue of RMB440.7 million, RMB1,142.5 million, RMB974.3 million, RMB808.3 million and RMB535.1 million in 2022, 2023 and 2024 and for the nine months ended September 30, 2024 and 2025, respectively. From 2023 to 2025, the semiconductor industry witnessed a sequential inventory adjustment across its downstream applications. According to CIC, this process started in the consumer electronics segment in 2022 before impacting semiconductors power devices, particularly in automotive, in 2023. Given the intricate industry chain, this de-stocking wave gradually moved upstream to our segment of the value chain, leading to a decline in our sales and revenue. Semiconductor inventory cycles, typically lasting three to four years, are primarily driven by shifts in downstream demand, capacity expansion cycles, and macroeconomic factors. The current adjustment is anticipated to end in the second half of 2026 and is seen as a cyclical adjustment during the semiconductor industry cycle instead of a structural market deterioration. According to CIC, the recent cyclical fluctuations have been driven primarily by adjustments in downstream supply and demand as well the impact from the transition from 4-inch to 6-inch and 8-inch wafers. Against this industry backdrop, we have faced pricing pressure, as our product pricing is influenced by downward industry-wide prices since 2023, resulted in a decrease in our revenue from 2023 to 2024. However, from a long-term perspective, demand for SiC and SiC epitaxial wafers remains on a solid growth trajectory, driven by strong potential in sectors like EVs, charging infrastructure, renewable energy, ESS, as well as emerging applications such as home appliances, AI computing power and data centers, smart grids, and eVTOL. As the world’s largest SiC epitaxial foundry by annual sales volume since 2023, we believe that we are well-positioned to capture the future growth. Our business is underpinned by competitive advantages, including technological expertise, cost efficiency, stable supply chain and customer loyalty, which allow us to navigate industry cycles resiliently. We are prepared to capture future growth and solidify our financial performance as the global SiC epitaxial market regains momentum.
Our deep knowledge of SiC epitaxy technology enables us to stay at the frontline of the SiC epitaxy industry and provide high quality and reliable products to our customers. We were the first in the world to achieve large-scale commercial supply of 8-inch SiC epitaxial wafers and the first in China to commercialize and mass-produce 3-inch, 4-inch, 6-inch, and 8-inch SiC epitaxial wafers. We led the writing and establishment of the world’s first and only Semiconductor Equipment and Materials International (SEMI) industry standard for SiC epitaxy. In 2024, our cumulative sales—combining sales under Turnkey and Consign models—exceeded 164,000 SiC epitaxial wafers. During the Track Record Period, we have delivered a total of over 599,700 SiC epitaxial wafers.
During the Track Record Period, we had 134 customers. Our customers included four of the world’s top five SiC power device providers and seven of the top ten power device providers, according to CIC. SiC power devices fabricated using our epitaxial wafers exhibit stable performance in high-temperature and high-power use. Our customers utilize our SiC epitaxy wafers to manufacture their products, typically power devices, for a wide range of downstream industrial applications, such as EVs, charging infrastructure, renewable energy, ESS, as well as emerging applications such as home appliances, AI computing power and data centers, smart grids, and eVTOL. For example, our products can be adopted in EVs to enable smaller, lighter and more power-efficient devices such as 800V powertrains, particularly in inverters and converters. This application allows high-voltage operations with minimal energy loss for EVs, which translate into longer range, faster charging and reduced cooling demands. During the Track Record Period, we acquired new customers primarily through active market engagement efforts, including participation in industry exhibitions and academic conferences, as well as through customer referrals. Our technical expertise, large production capacity, systematic quality assurance procedure, consistent delivery, and reliable customer services have earned us long-term recognition and loyalty from customers. These qualities not only strengthen customer retention but also provide us with unique growth opportunities.
Our founder, Dr. Zhao Jianhui, is a renowned scientist with over 35 years of dedicated R&D experience in SiC technology development. He is the first scientist elected as an IEEE Fellow based on significant contributions to the R&D and application of SiC technologies. The expertise of Dr.
Zhao and our R&D team formed the core of our technological competitiveness. We successfully developed a proprietary platform for SiC epitaxy, covering the entire epitaxial growth process, including pre-growth preparation, epitaxial growth, cleaning, and inspection.
Among SiC epitaxial foundries worldwide, we achieved reliable performance in terms of product quality, yield rates and consistency. According to CIC, our products lead the industry in key performance metrics for SiC epitaxial products, including epitaxial thickness, doping concentration, epitaxial defect and yield rates. For example, for our Consign service provided to a leading global SiC device manufacturer, the yield rate of our epitaxial wafer products reached 99%. Our success is also demonstrated by our profitability and cash flow in the Track Record Period. In 2024, our revenue, adjusted net profit (Non-IFRS measure) and operating cash flow reached RMB974.3 million, RMB323.5 million and RMB640.6 million, respectively. Since 2024, our financial performance deteriorated due to market competition driving down our selling prices, together with reduced customer demand as a result of a market downturn experienced by our downstream customers.
Source: Epiworld (02726) Prospectus (IPO Date : 2026/03/20) |