SICC (688234) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 365.50 million, down 10.41% year-over-year due to lower product prices.

• Net loss attributable to shareholders was RMB -60.51 million, compared to a profit of RMB 8.52 million in Q1 2025.

• Gross margin and profitability declined, impacted by price pressure, increased financial expenses from forex losses, and asset impairment provisions.

• Cash flow from operations dropped sharply to RMB 10.19 million from RMB 143.96 million year-over-year.

Financial highlights

• Operating income: RMB 365.50 million, down 10.41% year-over-year.

• Net profit: RMB -60.51 million, down 810.36% year-over-year.

• Basic and diluted EPS: RMB -0.13, compared to RMB 0.02 in Q1 2025.

• R&D investment: RMB 38.02 million, down 15.40% year-over-year; R&D ratio to revenue at 10.40%.

• Total assets at quarter-end: RMB 9.60 billion, up 0.18% from year-end 2025.

• Shareholders’ equity: RMB 7.11 billion, down 0.85% from year-end 2025.

Outlook and guidance

• Management is focused on expanding sales volume, optimizing product mix, and cost reduction to offset price declines.

• Gross margin showed sequential improvement from Q4 2025, with Q1 revenue up 3.58% quarter-over-quarter.