Shares of SICC CO., LTD. (Stock Code: 02631) plummeted 5.19% in the pre-market session on Tuesday, following the release of the company's unaudited financial results for the first nine months of 2025. The sharp decline comes as investors react to significant drops in revenue and a near-total erosion of profits reported by the silicon carbide product manufacturer.

According to the financial report, SICC's operating income for the first three quarters of 2025 reached RMB1,112 million, representing a 13.21% year-on-year decrease. More alarmingly, the company's total profit plunged by 96.68% to RMB4.78 million, while net profit attributable to equity holders nosedived by 99.22% to a mere RMB1.12 million. The third quarter results were particularly weak, with operating revenue falling 13.76% year-on-year to RMB318 million.

Management attributed the poor performance to strategic price reductions aimed at addressing market competition and expanding applications for silicon carbide products. Additionally, increased development expenses and unfavorable exchange rate fluctuations contributed to the profit decline. Despite the disappointing figures, SICC reported a 29.75% increase in R&D expenditure, signaling continued investment in large-size and new-application products. The company's overall assets grew by 32.13%, partly due to the issuance of H shares during the period. However, this expansion in assets and R&D spending has failed to translate into improved financial performance in the short term, leading to today's significant stock price drop.