Key Takeaways:
Revenue for the first five months of 2025 fell 30% while gross margin was also down
Government subsidies accounted for nearly 32% of revenue
Prices may be falling, and competition is fierce, but the silicon wafer industry is still booming as China strives to build an independent supply chain for advanced semiconductors.
Against this backdrop, a leading producer of silicon carbide (SiC) wafers used in high-powered electronics is making a renewed attempt to raise capital by listing its shares on the Hong Kong stock market.
Challenges have been piling up since Epiworld International Co. Ltd., a Xiamen-based wafer foundry, made its first listing application back in April. This time around, the company is grappling with falling revenue and shrinking margins.
While Epiworld's initial listing attempt stalled, a business rival succeeded in booking its place on the Hong Kong market. In August SICC Co. Ltd. (688234.SH; 2631.HK) became the first supplier of third-generation semiconductor materials to be traded on both the Hong Kong and mainland Chinese markets. SICC produces the base material, silicon-carbon substrates, as well as the finished semiconductor wafers used in advanced devices. By contrast, Epiworld focuses on epitaxial wafers alone, exposing it to greater downstream price volatility and industry pressure.
Earnings slippage
Based on the financials, the listing could have become a harder sell for investors. According to earnings data in its listing paperwork, Epiworld logged revenues of 441 million yuan ...
