BASiC Semiconductor Passes HKEX Hearing, Poised to Become Hong Kong's First SiC Stock
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Shenzhen-based BASiC Semiconductor cleared its HKEX main-board hearing under Chapter 18C on June 21, one step from listing; yet its prospectus shows cumulative losses exceeding RMB 900 million, with SiC module prices down over 73% in two years — the path to breakeven remains the central question.
Who is this company, and where does it stand now?
BASiC Semiconductor (基本半导体), founded in 2016, makes silicon-carbide power devices — chips built from SiC that handle high-voltage power conversion, used mainly in EVs and solar inverters.
On June 21 the company updated its post-hearing information pack, clearing the HKEX main-board IPO hearing. Two earlier filing attempts in 2025 had lapsed.
It is listing under Chapter 18C — the HKEX framework that lets pre-profit tech companies go public. This means → the exchange is betting on the company's technology and market position, not its bottom line.
Revenue is still growing — so why are losses widening?
Revenue for 2023–2025 came in at RMB 221 million, 299 million, and 311 million — nominally growing, but year-on-year growth collapsed from 35.6% to just 4.1% in 2025.
Net losses over the same period: RMB 342 million, 237 million, and 335 million, totalling over RMB 900 million. The 2025 net-loss margin hit -107.6%. In plain terms = for every RMB 1 of revenue, the company lost more than RMB 1.
This reflects the ferocity of the SiC power-module price war: average selling price dropped from RMB 2,558.7 per unit in 2023 to RMB 677 in 2025 — a 73%+ decline — dragging gross margins negative for three straight years at -59.6%, -9.7%, and -10.9%.
Is anything actually making money?
The only gross-profit-positive segment is gate-driver ICs — companion chips that send switching signals to SiC devices. In 2025 this line brought in RMB 103 million, or 33.0% of total revenue, at a 33.9% gross margin.
That margin is falling too — it was 46.4% in 2024, down over 12 percentage points in a single year.
One bright spot: customer concentration is improving. The top-five share dropped from 63.1% to 40.4%, and the single-largest customer shrank from 45.5% to 20.6%, reducing the risk of one departure cratering the revenue base.
Where does it rank, and what does the competitive landscape look like?
Per Frost & Sullivan, BASiC ranked sixth in China's SiC power-module market by 2024 revenue, holding a 2.9% share.
A handful of global leaders together control over 50% of the market. This means → BASiC is still a challenger with limited pricing power, fighting a price war it did not set.
After listing, what is the central question?
The company runs an IDM model — integrated device manufacturing, owning everything from wafer fabrication to module packaging. That brings heavy fixed depreciation, compounded by R&D spending at 35.3% of 2025 revenue.
In plain terms = BASiC is stuck in a "sell more, lose more" loop until utilisation rates rise high enough to spread that fixed cost.
Whether IPO proceeds can fund the capacity expansion needed to cross breakeven is the question the company must answer with results — investors should watch not just revenue growth, but when gross margin turns positive.
Content is for reference only, not financial advice.