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SiC Manufacturer TanKeHeDa's STAR Market IPO Accepted; Shareholders Include Big Fund, CATL, Huawei Hubble, etc.

STAR Daily July 2 (Reporter Wu Xuguang) Recently, according to disclosures by the Shanghai Stock Exchange, Beijing TanKeHeDa Semiconductor Co., Ltd. (hereinafter referred to as "TanKeHeDa") had its STAR Market IPO application accepted, with CICC serving as the sponsor.

For this IPO, the company plans to raise 2.78 billion yuan to boost the industrialization project of 8/12-inch large-size SiC substrates. On one hand, there is operational pressure from two consecutive years of large losses and negative gross margins; on the other, star capital like Huawei Hubble, the Big Fund, and CATL are heavily invested. Combined with the imminent industry transition from 6-inch to 8-inch SiC substrates, this domestic SiC substrate leader stands at the crossroads of industry reshuffling and technological iteration.

Shareholders Include Big Fund, CATL, Huawei Hubble, etc.

TanKeHeDa is a national high-tech enterprise focused on the R&D, production, and sales of third-generation semiconductor material SiC substrates and related products. Its main products include SiC substrates, SiC epitaxial wafers, and other SiC products.

Regarding equity structure, the Eighth Division SASAC directly holds 69.3267% of TanFu Group, the controlling shareholder of TanKeHeDa, and controls 22.9703% of TanFu Group through Shihezi State-owned Assets Company. Therefore, the Eighth Division SASAC directly and indirectly controls 92.2970% of TanFu Group, thereby controlling 20.7131% of TanKeHeDa's shares through TanFu Group, acting as the actual controller.

Additionally, CATL, Institute of Physics CAS, Integrated Circuit Industry Investment Fund (Big Fund), and Huawei's Hubble Investment are the 3rd, 5th, 6th, and 8th largest shareholders of TanKeHeDa, respectively.

Performance and Price Trends

In terms of performance, from 2023 to 2025 (reporting period), TanKeHeDa achieved operating revenues of 1.552 billion yuan, 1.062 billion yuan, and 956 million yuan, respectively; net profits after deducting non-recurring items were 113 million yuan, -626 million yuan, and -700 million yuan, respectively.

SiC substrates and epitaxial wafers are TanKeHeDa's core businesses. 6-inch SiC substrates are its flagship products, accounting for over 88% of total substrate revenue each year. Revenue from 8-inch SiC substrates also saw significant growth in 2025.

Regarding price trends, the average selling price of TanKeHeDa's 6-inch substrates continued to decline, dropping from 4,781 yuan/wafer in 2023 to 3,386 yuan in 2024, and further to 1,696 yuan in 2025, a cumulative drop of about 64.5% over three years. The average selling price of 8-inch substrates fell from 29,400 yuan/wafer in 2023 to 15,600 yuan in 2024, and then to 6,200 yuan in 2025, a cumulative drop of about 79%.

TanKeHeDa stated that 6-inch SiC substrate sales declined in 2024, partly due to phased supply-demand fluctuations in the market, and partly because its sold SiC epitaxial wafers all used self-produced substrates. Since SiC epitaxial wafer sales grew significantly in 2024, external sales of 6-inch SiC substrates decreased accordingly.

STAR Daily reporters noted that 6-inch substrates underwent a severe price plunge cycle over the past two years, with conductive 6-inch substrate prices already "halved."

An executive at a large central SOE in the IC industry told STAR Daily reporters that due to previous over-investment in the industry, domestic SiC materials faced phased oversupply, combined with the downstream EV market being the first to enter competitive price-cutting channels, directly triggering the sharp price drops in recent years. 6-inch SiC substrate prices fell from 3,000 yuan/wafer to around 1,500 yuan/wafer by year-end. Companies relying solely on selling SiC substrates are now generally in a loss-making state.

During the reporting period, TanKeHeDa's total gross profit was 346.7661 million yuan, 160.9251 million yuan, and -191.7541 million yuan, respectively; comprehensive gross margin was 22.35%, 15.15%, and -20.06%, respectively, showing a clear decline and turning from positive to negative. TanKeHeDa's gross margin in 2023 was 19.42%, slightly above the industry average; it dropped to 11.51% in 2024, slightly below the industry average of 13.76%; in 2025, affected by the dual factors of significant price cuts in 6-inch products and increased depreciation pressure from new capacity, the gross margin turned negative to -25.04%, underperforming the industry average of 4.38%.

Company Selects Fourth Listing Standard

TanKeHeDa selected the fourth listing standard under Article 2.1.2(4) of the STAR Market Stock Listing Rules for this IPO, i.e., "expected market cap not less than 3 billion yuan, and operating revenue in the most recent year not less than 300 million yuan."

TanKeHeDa achieved operating revenue of 956 million yuan in 2025. Considering its latest external equity financing situation and valuations of comparable industry companies, the company expects to meet the aforementioned listing standards.

An institutional banker interviewed by STAR Daily stated that TanKeHeDa has experienced significant volatility in profitability over three consecutive years, with accumulated undistributed profits of approximately -1.2 billion yuan, indicating large accumulated uncovered losses. The company chose the fourth STAR Market listing standard, which requires market cap ≥ 3 billion and annual revenue ≥ 300 million, with no hard profitability threshold. However, the company still faces multiple potential risks including persistent large losses, going concern issues, dividend capability, delisting warnings, valuation reasonableness, and digestion of expansion funds.

STAR Daily reporters noted that SICC, a SiC leader listed in January 2022, also adopted the fourth listing standard specified in Chapter 2, Article 2.1.2 of the Shanghai Stock Exchange STAR Market Stock Listing Rules: expected market cap not less than 3 billion yuan, and operating revenue in the most recent year not less than 300 million yuan.

As of Q1 2026, SICC's net profit was -60.5097 million yuan, compared to a profit of 8.5182 million yuan in the same period last year, a drastic YoY decline of 810.36%. The company attributed the loss primarily to factors such as declining product prices reducing revenue and gross profit.

Looking ahead at SiC price trends, industry practitioners stated that currently, the production process for 6-inch substrates is highly mature. While there is still slight room for yield improvement, the magnitude is limited. Leading enterprises' yields are already close to 80%, meaning the market price for 6-inch substrates has basically bottomed out. Even with continued low-price competition, the downside room for prices is very limited. Currently, the global SiC substrate market is still dominated by 6-inch products, but the industry as a whole is accelerating the iteration switch to 8-inch products.

Taking SICC as an example again, its 8-inch substrate shipment volume is currently in a sustained ramp-up phase.

In contrast, TanKeHeDa stated that in terms of industrial application, it was the earliest domestic enterprise to achieve SiC substrate industrialization, successively realizing scaled production of 2-inch to 8-inch SiC substrates, and successfully developing 12-inch SiC substrate products.

Regarding questions about the company's latest progress in 8-inch product implementation, downstream application market expansion, and business sustainability, STAR Daily reporters called the company's securities department but had not received a response by press time.