Q4 2025 ACM Research Inc Earnings Call

February 26, 2026

Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to the ACM Research Q4 and fiscal year 2025 Earnings Conference Call. Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Mr. Steven Pelayo, Managing Director of The Blueshirt Group. Steven, please go ahead.

Speaker #1: Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, we are recording today's call.

Speaker #1: If you have any objections, you may disconnect at this time. Now, I will turn the call over to Mr. Steven Pelayo, managing director of Blue Shirt Group.

Speaker #1: Steven, please go ahead.

Speaker #2: Good day, everyone. Thank you for joining us to discuss fourth quarter and fiscal year 2025 results, which we released before the US market opened today.

Steven Pelayo: Good day, everyone. Thank you for joining us to discuss Q4 and fiscal year 2025 results, which we released before the US market opened today. The release is available on our website as well as from Newswire Services. There's also a supplemental slide deck posted to the investor relations section of our website that we will reference during our prepared remarks. On the call with me today are our CEO, Dr. David Wang, our CFO, Mark McKechnie, and Lisa Feng, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide two. Let me remind you that remarks made during this call may include predictions, estimates, or other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially.

Speaker #2: The release is available on our website, as well as from newswire services. There is also a supplemental slide deck posted to the Investor Relations section of our website that we will reference during our prepared remarks.

Speaker #2: On the call with me today are CEO Dr. David Wong, our CFO Mark McKechnie, and Lisa Fang, our CFO of our operating subsidiary, ACM Shanghai.

Speaker #2: Before we continue, please turn to slide two. Let me remind you that remarks made during this call may include predictions, estimates, or other information that might be considered forward-looking.

Speaker #2: These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially.

Speaker #2: Those risks are described under the risk factors and elsewhere in ACM's filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call.

Steven Pelayo: Those risks are described under the risk factors and elsewhere in ACM's filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements. Certain financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation and unrealized gain or loss on short-term investments. For our GAAP results and reconciliations between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website, and to slides 14 and 15. Unless otherwise noted, the following figures refer to Q4 and fiscal year 2025, and comparisons are going to be with Q4 and fiscal year 2024.

Speaker #2: ACM is not obliged to update you on any revisions to these forward-looking statements. Certain financial results that we provide on this call will be on a non-gap basis, which excludes stock-based compensation and unrealized gain or loss on short-term investments.

Speaker #2: For our gap results and reconciliations between gap and non-gap amounts, you should refer to our earnings release, which is posted on the IR section of our website, and to slides 14 and 15.

Speaker #2: Also, unless otherwise noted, the following figures refer to the fourth quarter and fiscal year 2025 and comparisons are going to be with the fourth quarter and fiscal year 2024.

Speaker #2: I will now turn the call over to David Wang. David?

Steven Pelayo: I will now turn the call over to David Wang. David?

Speaker #3: Thanks, Steven. And hello, everyone. And welcome to ACM's fourth quarter and the fiscal year 2025 earnings conference call. I'm pleased with our fourth quarter results, which capped off a solid year of execution.

David Wang: Thanks, Steven, and hello, everyone, and welcome to ACM's Q4 and fiscal year 2025 earnings conference call. I'm pleased with our Q4 results, which capped off a solid year of execution. Revenue grew 9% in Q4 and 15% for the full year. We continue to execute well across our core business. We made a lot of progress with new product platforms, and we strengthen our position in China and globally. Investment in AI and data center infrastructure is reshaping the global semiconductor demand, shifting capital toward advanced logic, memory, and advanced packaging. The industry is looking to key supplier for new technology, many of which have not yet been invented. ACM differentiated technology portfolio has been aligned well with this high-value process steps, and the market is now coming for us for solutions.

Speaker #3: Revenue growth 9% in the fourth quarter, and 15% for the full year. We continue to execute well across our core business. We made a lot of progress with new product platforms.

Speaker #3: And we strengthened our position in China and globally. Investment in AI and data center infrastructure is reshaping the global semiconductor demand. Shifting capital toward advanced logic, memory, and advanced packaging, the industry is looking to key suppliers for new technology.

Speaker #3: Many of which have not yet been invented. ACM differentiated technology portfolio has been aligned well with this high-value process steps. And the market is how now the market is coming for us for solutions.

David Wang: A good demonstration is recent momentum with several key global customer outside the mainland China market that we announced in today's press release. First, we announced that we have delivered multiple single wafer cleaning tools to a Singapore facility of our Asia-based foundries customer. This marks ACM's first tool installation to Singapore, a key milestone for ACM. Second, we announced that we are receiving multiple orders for our advanced packaging tool from three global customers. This include the orders for multiple wafer-level advanced packaging system from a leading global OSAT customer based in Singapore, with the delivers scheduled for Q1 2026.

Speaker #3: A good demonstration is recent momentum with several key global customers outside the mainland China market, that we announced in today's press release. First, we announced that we have delivered multiple single-wafer Canadian tools to the Singapore facility of an Asia-based foundries customer.

Speaker #3: This marks ACM's first tool installation to Singapore. A key milestone for ACM. Second, we announced that we are receiving multiple orders for our advanced packaging tool customers.

Speaker #3: This included orders for multiple wafer-level advanced packaging systems from a leading global all-set customer based in Singapore. With delivers schedule for the first quarter of 2026.

David Wang: A panel-level advanced packaging vacuum cleaning tool from a leading global semiconductor packaging manufacturer based outside mainland China, also scheduled for delivery in Q1 2026, multiple wafer-level packaging system from a leading North America-based technology customer, with delivery scheduled later this year. Now, on to our business result. Please turn to slide 3. For Q4 2025, we deliver $244 million in revenue, up 9%. For the year 2025, we deliver $901 million in revenue, up 15%. Top line growth of 15% was better than growth for the overall China WFE market, which third-party estimate as generally flat for 2025. We consider this good result, especially since our 2025 revenue include very little contribution from our new products.

Speaker #3: A panel-level advanced packaging vacuum cleaning tool from a leading global semiconductor packaging manufacturer based outside mainland China. Also scheduled for delivery in the first quarter of 2026.

Speaker #3: And multiple wafer-level packaging systems from our leading North America-based technology customer with delivery scheduled later this year. Long on to our business result. Please turn to slide three.

Speaker #3: For the fourth quarter of 2025, we deliver 244 million in revenue upper 9%. For the year 2025, we deliver 901 million in revenue upper 15%.

Speaker #3: Top-line growth of 15% was better than growth for the overall China WFT market. Which third-party estimate, as of January, is flat for 2025? We consider this a good result, especially since our 2025 revenue includes very little contribution from our new products.

Speaker #3: We expect a strong product cycle in 2026 from SPM cleaning and our furnace product as we made a very good technical progress for this new product across our customer base.

David Wang: We expect a strong product cycle in 2026 from SPM cleaning and our furnace product, as we made a very good technical progress for this new product across our customer base. We also made a good progress with our Supercritical CO2 Dry, panel-level plating, and PECVD, which we expect to contribute some more in 2026, more in 2027 and beyond. Shipment for 2025 were $854 million versus $973 million. Remember, 2024 shipments increased 63% over the year, we had a tough compare. We also had some shipment for new product pushed into 2026. Importantly, we expect the 2026 shipment growth to be higher than our 2026 revenue growth.

Speaker #3: We also made a good progress with our supercritical CO2 joint track panel-level plating and PCVD. Which we expect to contribute small in 2026, but more in 2027 and beyond.

Speaker #3: Shipment for 2025 were 854 million, versus 973 million. Remember, 2024 shipment increased 63% over the year. So we had a tough compare. We also had some shipment for new product pushed into the 2026.

Speaker #3: Importantly, we expect 2026 shipment growth to be higher than our 2026 revenue growth. Gross margin was 41% for the fourth quarter, and 44.5% for the full year.

David Wang: Gross margin was 41% for Q4 and 44.5% for the full year. Q4 Gross margin was slightly below our long-term target range of 42% to 48%. We attribute the Q4 level to product mixing, including a few semi-critical product with a lower margin due to the competitive pressure and also higher seasonal inventory provisions. We expect our lower Gross margin to be temporary. We believe our new product ramp, combined with the product design and supply chain initiative, will enable us to deliver the best product at a lower cost. There's no changing to our long-term target model range of 42% to 48%. Moving on. We ended the year with a net cash of $845 million versus $25.9 million at the year end of 2024.

Speaker #3: Q4 gross margin was slightly below our long-term target range of 42 to 48%. We attribute the Q4 level to product mixing including a few semi-critical products with a lower margin due to the competitive pressure.

Speaker #3: And also higher seasonal inventory provisions. We expect lower gross margin to be temporary. We believe our new product ramp combined with the product design and supply chain initiative will enable us to deliver the best product at a lower cost.

Speaker #3: There's no changing to our long-term target model range of 42 to 48%. Moving on, we ended the year with a net cash of 845 million, versus 259 million at the year end of 2024.

David Wang: This balance sheet provides the foundation to continue our effort to develop world-class tools for the leading global semiconductor manufacturers. Before I review our product, I will provide our view on competitive dynamics in China and how we will win in this environment. We have recently seen a flood of new local entrants to the China capital equipment industry. In many case, there are five or more players going after a single point product, all with very similar design and performance. We believe we will compete and win in China market because, number one, we have a differential technology with many products, almost the best in the world. Two, we have a deep portfolio of IP with strong protection in China. Three, our local customer demand the best technology in order to compete in a global market. Now, I will provide detail on product.

Speaker #3: This balance sheet provides the foundation to continue our effort to develop world-class tools for the leading global semiconductor manufacturers. Before I review our product, I will provide a view on competitive dynamics in China and how we will win in this environment.

Speaker #3: We have recently seen a flood of new local entrants to the China capital equipment industry. In many cases, there are five or more players going after a single point product.

Speaker #3: All with very similar design and performance. We believe we will compete and win in China market because: number one, we have a differential technology, with many products almost the best in the world.

Speaker #3: Two, we have a deep portfolio of IP with strong protection in China. And three, our local customer demand the best technology in the world to compete in a global market.

Speaker #3: Now I will provide detail on product. Please turn to slide four. Revenue from single-wafer cleaning: Tahoe and semi-critical cleaning tool was 626 million, upper 8% in 2025.

David Wang: Please turn to slide 4. Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning tool was $626 million, up 8% in 2025, and represent 69% of total revenue. We now estimate our cleaning portfolio addresses 95% of application and process step, and we are working on developing remaining solution that will bring us to 100% in 2026. We believe ACM now has the widest coverage of cleaning tool, far more extensive as compared to all competitors. The 8% year-over-year growth in 2025 included very little contribution from our newer cleaning line. We expect this new product, including single wafer SPM, Tahoe, and N2 bubbling wet etch, to contribute more meaningfully to our 2026 revenue.

Speaker #3: And represent 69% of total revenue. We now estimate our cleaning portfolio addressed 95% of application and process step. And we are working on developing remaining solution that will bring us to 100% in 2026.

Speaker #3: We believe ACM now has a widest coverage of cleaning tool. Far more extensive as compared to all competitors. Their 8% year-over-year growth in 2025 included very little contribution from our newer cleaning line.

Speaker #3: We expect this new product, including single-wafer SPM, Tahoe, and N2 bubbling wet edge, to contribute more meaningfully to our 2026 revenue. As industry moves to more advanced nodes, we expect the increased demand for high-performance cleaning tools.

David Wang: As the industry moves to more advanced nodes, we expect increased demand for high performance cleaning tools. The increased adoption of multiple patterning is driving higher layer counts, potentially impact yields, and it demand more cleaning steps with a higher cleaning efficiency. We believe this plays right into ACM's strengths. For example, our proprietary N2 bubbling etching technology is unique, uniquely positioned in the market. We are seeing growth, interest for advanced 3D NAND application, where larger bubble size and uniformity control will become more critical as industry moves to 300 layer and above. In SPM cleaning, customer are recognized advantage of our proprietary nozzle and the chamber design. We believe our platform outperforming leading competitors in small particle cleaning performance. We made a significant technical progress at the end of 2025 with our new SPM nozzle design.

Speaker #3: The increased adoption of multiple patenting is a driving higher layer counts. Potentially, impact yields. And is demand more cleaning steps, with a higher cleaning efficiency.

Speaker #3: We believe this plays right into ACM's strengths. For example, our proprietary N2 bubbling edging technology is uniquely positioned in the market. We are seeing growth, interest, for advanced 3D9 application, where larger bubble size and uniformity control was become more critical as industry moves through 300-layer and above.

Speaker #3: In SPM cleaning, customers are recognized advantage of our proprietary nozzle and chamber design. We believe our platform, our performing leading competitors in small particle cleaning performance.

Speaker #3: We made a significant technical progress at the end of 2025 with our new SPM nozzle design. We achieved a 50-nanoparticle size count of under 20, which we believe is the best in class performance for the industry.

David Wang: We achieved a 50 nanoparticle size count of under 20, which we believe is the best-in-class performance for the industry. Our unique nozzle design does not require any routine chamber DI water cleaning. This is a big deal for customer because it not only deliver the better cleaning environment for the chamber, but it also increase uptime of our equipment. As a result, I'm pleased to report today that we have received strong repeat order for our SPM cleaning tools from major customer for delivering to modular fab in 2026. We are also seeing very strong interest for our unique SPM technology from numerous global customer, because they are not satisfied with the performance of their current record tool.

Speaker #3: Our unique nozzle design does not require any routine chamber DI water cleaning. This is a big deal for customers because it not only delivers a better cleaning environment for the chamber, but it also increases uptime of our equipment.

Speaker #3: As a result, I'm pleased to report today that we have received strong repeat order for our SPM cleaning tools from major customers for delivering to multiple fabs in 2026.

Speaker #3: We are also seeing very strong interest for our unique SPM technology from numerous global customers because they are not certified with a performance of their current plan of the record tool.

David Wang: Our Supercritical CO2 Dry tool integrate ACM proprietary cleaning IP, while reducing CO2 consumption by approximately 40% as compared to their competitors. This result in process efficiency with lower operation cost. We made a successful in-house demo for the multiple logic and memory customer at end of 2025. We have already received a demo PO for evaluation tools from 2 customer for delivery middle of 2026, we expect to deliver additional tools to multiple customer later this year. In mainland China alone, we estimate the incremental market opportunity for this next generation cleaning product is nearly $1 billion. We remain confident in our long-term objective to achieve approximately 60% of the market share in China cleaning market, we expect the cleaning to outgrow the China WFE this year and in the year ahead.

Speaker #3: Our supply our supercritical CO2 dry tool integrates ACM proprietary cleaning IP while reducing CO2 consumption by approximately 40% as compared to their competitors. This result in process efficiency with lower operation cost.

Speaker #3: We made a successful in-house demo for the multiple logic and memory customer at the end of 2025. We have already received demo PO for evaluation tools from two customers for delivery middle of 2026.

Speaker #3: We expect to deliver additional tools to multiple customers later this year. In mainland China alone, we estimate the incremental market opportunity for this next-generation cleaning product is nearly $1 billion USD.

Speaker #3: We remain confident in our long-term objective to achieve approximately 60% of the market share in China cleaning market. And we expect the cleaning to outgrow the China WFE this year and in a year ahead.

Speaker #3: We estimate our market share for ECP in China is now more than 40%. And we remain confident in our long-term goal to achieve 60% or more.

David Wang: We estimate our market share for ECP in China is now more than 40%, and we remain confident in our long-term goal to achieve 60% or more. Front-end tool was represent about 70% of the mixing for year, including our MAP Plus, ECP 3d, ECP G3 products. ECP back-end tool were about 30% of the mix, including our ECP ap product line. In Q4, we deliver our first Ultra ECP ap-p, horizontal panel level electroplating tool to an industry-leading, large panel fabrication customer. Our customer prefer, ACM prefer horizontal plating solution versus competitors' vertical plating approach due to the much better plating film uniformity and much less cross-contamination between multiple plating chemicals.

Speaker #3: Friend tool was a represent about 70% of the mixing for a year. Including our map plus ECP 3D, ECP G3 products. ECP backend tool were about 30% of the mix.

Speaker #3: Including our ECP AP product line. In Q4, we delivered our first Ultra ECP APP horizontal panel-level electroplating tool to an industry-leading large panel fabrication customer.

Speaker #3: Our customer prefers ACM's horizontal plating solution versus the competitor's vertical plating approach due to the much better plating film uniformity and much less cross-contamination between multiple plating chemicals.

David Wang: We expect a growing customer interest in our panel-level solutions as the industry looks for higher throughput and lower cost to support advanced packaging solution for multiple large die size and HBM AI chips. As discussed earlier, we received order from three global customer for both wafer level and panel level packaging tools. Our furnace tool are under various stage of evaluation on many customer. Revenue from furnace was relatively small in 2025, and we expect a more meaningful contribution in 2026. We made several technical breakthrough for LPCVD and ALD and PALD in 2025. We see good demand across multiple application, including high temperature Anneal, especially 1,350 degree version, LPCVD, ALD, and PALD. We believe ACM differential design position us to capture meaningful market share.

Speaker #3: We expect the growing customer interest in our panel level solution. As industry looks for higher throughput and low cost to support advanced packaging solution for multiple large die size and HBM AI chips.

Speaker #3: As discussed earlier, we receive order from three global customers for both wafer level and panel level packaging tools. Our further tool under various stage of evaluation on many customers.

Speaker #3: Revenue from furnace was a relatively small in 2025 and we expect more meaningful contribution in 2026. We made several technical breakthroughs for LPCVD and ARD and PARD in 2025.

Speaker #3: We see good demand across multiple applications, including high-temperature new, especially 1,350-degree version. LPCVD, ARD, and PARD. We believe ACM differential design position us to capture meaningful market share.

Speaker #3: Revenue from advanced packaging. Which is good ECP, but including service and spell was up 45% in 2025 to 76 million. And represent 8% of revenue.

David Wang: Revenue from advanced packaging, which is ECP, including service and the spell, was up 45% in 2025 to $76 million, and represent 8% of revenue. This includes coater, developer, etcher, stripper, scrubber, and vacuum cleaning tools. We believe ACM is only company to offer a full portfolio of wet process tool and world-class plating product for the advanced packaging. We think the combination is very powerful. It provides ACM with valuable insight into the challenging of next generation packaging, as AI drives the industry towards 2.5D and 3D integration. We are making solid progress with our new track and the PECVD platforms. Last September, we delivered our high-throughput, 300 WPH KrF track tool for evaluation at a key customer.

Speaker #3: This includes colder developer action stripper scrubber and vacuum cleaning tools. We believe ACM's ACM is only company to offer full portfolio of wet process tool and water class plating product for the advanced packaging.

Speaker #3: We think the combination is very powerful. It provides ACM with valuable insight into the challenging of next-generation packaging as AI drives industry towards 2.5D and 3D integration.

Speaker #3: We are making solid progress with our new track and PCVD platforms. Last September, we delivered our high-throughput 300 WPH KF track tool for evaluation at a key customer.

Speaker #3: We expect the mass production qualification in 2026 for the tool. And we anticipate this will lead to demand from additional customers, including both standalone and full integrated system in line with the lithographic tool.

David Wang: We expect a mass production qualification in 2026 for the tool. We anticipate this will lead to demand from additional customers, including both standalone and full integrated system, in line with the lithography tool. We believe our high-throughput design positions this platform to compete effectively with the current supplier. In Q4, we delivered our first Ultra Lith BK system. This milestone represents the first customer deploy of our track series, following early demonstration and the validation. It also marked our entry into the display panel market, a new segment that requires high volume manufacturing and strong performance stability. We anticipate to develop our proprietary PECVD platform. Our design has a 3 chuck per chamber, which we believe is the only one in the world. This provides flexibility for a wide range of our process with the same hardware.

Speaker #3: We believe our high throughput design positioned this platform to compete effectively with the current supplier. In Q4, we delivered our first ultra litho BK system.

Speaker #3: This milestone represents the first customer deploy of our track series following early demonstration and validation. It also marked our entry into the display panel market, a new segment that requires high-volume manufacturing and strong performance stability.

Speaker #3: We anticipate to develop our proprietary PCVD platform, all designed as a three-chuck per chamber, which we believe is the only one in the world.

Speaker #3: This provides flexibility for a wide range of our process with the same hardware. We feel good about our positioning as a team works through the technical detail with a field tool in our Lingang mini lab.

David Wang: We feel good about our positioning as the team works through the technical detail with a field tool in our Lingang mini lab, running wafer tests and a custom demo wafer. We expect to ship multiple EVA tools in the near term. In summary, our innovation engine contribute to drive differentiated solution across a broad of our growing portfolio. As AI drives a more complex semiconductor process, customer are turning to ACM as a trusted partner to help solving their increasing challenges. Next, let me provide update on our production facility. First, our Lingang. Please turn to slide eight. Our Lingang Production and R&D Center is now our primary production center. The first building is in volume production, and the second provides capacity for the future expansion. Together, the two facility can support up to $3 billion in annual output.

Speaker #3: Running wafer tests and custom demo wafer. We expect to ship multiple EVA tools in the near term. In summary, our innovation engine continues to drive differentiated solutions across a broad, growing portfolio.

Speaker #3: As AI drives more complex semiconductor process, customer are turning into ACM as a trusted partner to help solving their increasing challenges. Next, let me provide update on our production facility.

Speaker #3: First, our Lingang, please tend to slide 8. Our Lingang production and R&D center is now our primary production center. The first building is in volume production and the second provides capacity for the future expansion.

Speaker #3: Together, the two facilities can support up to 3 billion. In annual output. During 2025, we made a good progress on our mini line and Lingang.

David Wang: During 2025, we made a good progress on our mini line and Lingang. We have enhanced our process development capability and now support on-site customer evaluation in fab-like conditions. Our mini line, including ACM tools and tools from other player and metrology tools. We believe the mini line will accelerate our internal product validation, shorten R&D and qualification cycle, and strengthen collaboration with key customer as we introduce next generation platforms. Next, our Oregon facility. Please turn to slide 9. We are accelerating investment in Oregon, with the operation expected to beginning in the second half of 2026. This facility will allow customer to evaluate our technology and to test their wafer locally, and it will serve as our initial base for production in the United States.

Speaker #3: We have enhanced our process development capability and now support onsite customer evaluation in fab-like condition. Our mini line, including ACM tools, and tools from other players, and metrology tools, we believe the mini line will accelerate our internal product validation shorten R&D and qualification cycle and strengthen collaboration with key customers as we introduce next-generation platforms.

Speaker #3: Next, our Oregon facility please tend to slide 9. We are accelerating investment in Oregon. With the operation expected to begin in the second half of 2026.

Speaker #3: This facility will allow customers to evaluate our technology and to test their wafer locally. And you will serve as our initial base for production in the United States.

Speaker #3: Our global customers are encouraging by our commitment, which we believe will help them to choose ACM as a key supplier to scale production. We remain very pleased by the success of ACM Shanghai team, which continue to be a key supplier to the semiconductor industry in Asia.

David Wang: Our global customer are encouraged by our commitment, which we believe will help them to choose ACM as a key supplier to scale production. We remain very pleased by the success of ACM Shanghai team, which continue to be a key supplier to the semiconductor industry in Asia. ACM Shanghai has also proven to be a great source of capital and financial flexibility for ACM. In September 2025, ACM Shanghai complete a private offering of ordinary share, generating approximately $623 million in net proceeds. In February 2026, we complete the sale of approximately 4.8 million ACM Shanghai share at RMB 160 per share, generating approximately $111 million in gross proceeds. ACM Shanghai also has been good source of dividends in 2023, 2024, and 2025.

Speaker #3: ACM Shanghai has also proven to be a great source of capital and financial flexibility for ACM. In September 2025, ACM Shanghai completed a private offering of ordinary shares, generating approximately $623 million in net proceeds.

Speaker #3: In February 2026, we completed the sale of approximately 4.8 million ACM Shanghai shares at RMB 160 per share, generating approximately $111 million in gross proceeds.

Speaker #3: ACM Shanghai also has been a good source of dividends in 2023, 2024, and 2025, which received dividends net of tax of 19.2 million, 28.5 million, and 29 million respectively.

David Wang: We received dividends net of tax of $19.2 million, $28.5 million, and $29 million, respectively. Our major ownership in Shanghai, ACM Shanghai, remain a strategic asset. It enhance our financial flexibility and supporting disciplined execution as we continue expanding globally. Taken together, our expanding product portfolio, increased manufacturer capacity, and the strengthening capital position give us confidence in our long-term strategy. Now turn to our outlook for the full year 2026. Please turn to slide 10. In middle January, we introduced our 2026 revenue outlook in a range of $1.08 to 1.175 billion. This implied 25% year-over-year growth at the middle point. We reiterate this outlook today.

Speaker #3: Our major ownership in Shanghai ACM Shanghai remains a strategic asset. It enhanced our financial flexibility and supporting disciplined execution as we continue expanding globally.

Speaker #3: Taken together, our expanding product portfolio increased manufacturing capacity and strengthened capital position give us confidence in our long-term strategy. Now turn to our outlook for the full year 2026.

Speaker #3: Please turn to slide 10. In middle January, we introduced our 2026 revenue outlook in a range of 1.08 to 1.175 billion dollars. This implied 25% year over year growth at the middle point.

Speaker #3: We reiterate this outlook today. Since our funding in California in 1998 and the establishment of ACM Shanghai in 2005, we're building a globally competitive semiconductor equipment company grounded in innovation and differential technology.

David Wang: Since our founding in California in 1998, and the establishment of ACM Shanghai in 2005, we're building a globally competitive semiconductor equipment company, grounded in innovation and differential technology. Our leadership in cleaning and electroplating created a strong foundation, and we are now expanding across furnace track and PECVD as we broaden our multiple product portfolio. In Asia, we are recognized as a leader in wafer cleaning and plating, and we are engaging with a global customer across US and Europe. With continued progress across SPM, Tahoe, Supercritical CO2 Dry, furnace, track, PECVD, and panel-level packaging, we believe we are entering a new phase of a product cycle that will driving sustained growth.

Speaker #3: Our leadership in cleaning and electroplating created a strong foundation and we are now expanding across furnace track and PCVD as we broaden our multiple product portfolio.

Speaker #3: In Asia, we are recognized as a leader in wafer cleaning and plating and we are engaging with a global customer across US and Europe.

Speaker #3: With continued progress across SPM, Tahoe, supercritical steel to dry furnace track PCVD, and panel level packaging, we believe we are entering a new phase of a product cycle that will drive sustained growth.

Speaker #3: We have the customer, the product, the capacity, and the capital to execute our global business plan. And we remain committed to our long-term target of $4 billion in revenue.

David Wang: We have the customer, the product, the capacity, and the capital to execute our global business plan, and we remain committed to our long-term target of $4 billion dollar in revenue. Now let me turn the call over to our CFO, Mark, who will review details of our Q1 and full year result. Mark, please.

Speaker #3: Now let me turn the core over to our CFO, Mark, who will review details of our fourth quarter and full year result. Mark, please.

Speaker #2: Thank you, David. Good day, everyone. Please turn to slide 11 and 12. Let's say no to otherwise I'll refer to non-GAAP financial measures which exclude stock-based compensation, unrealized gain loss on short-term investments.

Mark McKechnie: Thank you, David. Good day, everyone. Please turn to slide 11 and 12. Unless I note otherwise, I'll refer to non-GAAP financial measures, which exclude stock-based compensation, unrealized gain loss on short-term investments. Reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release. Also, unless otherwise noted, the following figures refer to Q4 and full year of 2025, and comparisons are with Q4 and full year of 2024. I will now provide financial highlights. Revenue was $244 million for Q4, up 9.4%. For the full year, revenue is $901.3 million, up 15.2%. Full year revenue was in line with our original guidance set a year ago and slightly above the updated range announced on 22 January.

Speaker #2: Reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release. Also, unless otherwise noted, the following figures refer to the fourth quarter and full year of 2025 in comparisons or with the fourth quarter and full year of 2024.

Speaker #2: I will now provide financial highlights. Revenue was $244 million for the fourth quarter of 9.4%. For the full year, revenue is $901.3 million of 15.2%.

Speaker #2: Full year revenue was in line with our original guidance set a year ago and slightly above the updated range announced on January 22nd. Fourth quarter revenue for single wafer cleaning, Tahoe, and semicritical cleaning was $159.9 million up 3%.

Mark McKechnie: Q4 revenue for single wafer cleaning, Tahoe, and semi-critical cleaning was $159.9 million, up 3%. For the year, this category grew by 8.1%. Q4 revenue for ECP, Front End Packaging, Furnace, and other technologies was $64.1 million, up 23.9%. For the year, this category grew by 32.1%. Q4 revenue for advanced packaging, excluding ECP, services, and spares, was $20.5 million, up 23.8%. For the year, this category grew by 45.3%. I will now provide revenue mix by customer type for 2025. Starting this year, rather than disclosing specific customer names, we are now disclosing revenue by customer type once a year. For each customer type, this includes products, services, and spare parts.

Speaker #2: For the year, this category grew by 8.1%. Fourth quarter revenue for ECP, front-end packaging, furnace, and other technologies was $64.1 million up 23.9%. For the year, this category grew by 32.1%.

Speaker #2: Fourth quarter revenue for advanced packaging excluding ECP services and spares was $20.5 million up 23.8%. For the year, this category grew by 45.3%. I will now provide revenue mix by customer type for 2025.

Speaker #2: Starting this year, rather than disclosing specific customer names, we are now disclosing revenue by customer type once a year. For each customer type, this includes product services and spare parts.

Speaker #2: We've included the mix table on slide 7 of our presentation. For 2025, our revenue mix by customer type was split among foundry, logic, and other 59%.

Mark McKechnie: We've included the mix table on slide seven of our presentation. For 2025, our revenue mix by customer type was split among foundry, logic, and other, 59%, memory, 27%, packaging and wafer processing, 14%. 2025, we had 4 10+% customers, including our top customer was 16.9%, next was 13.5%, then 11.6%, and 10.2%, for an aggregate total of 4 customers, representing 52.2% of total sales. For 2024, we had 4 10% customer, also for a total of 52.2%. Total shipments were $228 million for Q4, down 13.5%, and $854 million for the full year of 2025, down 12.2%.

Speaker #2: Memory, 27%. Packaging and wafer processing, 14%. 2025, we had $410 plus percent customers. Including our top customer was $16.9%. Next was $13.5%. Then $11.6% and $10.2%.

Speaker #2: For an aggregate total of four customers representing 52.2% of total sales. For 2024, we had $410% customer. Also, for a total of 52.2%. Total shipments were $228 million for the fourth quarter, down 13.5% and $854 million for the full year of 2025, down 12.2%.

Speaker #2: David noted we had a tough compare versus a strong 2024 when shipments increased 63% year over year. We also did have some shipments for new products pushed into 2026.

Mark McKechnie: David noted we had a tough compare versus a strong 2024, when shipments increased 63% year-over-year. We also did have some shipments for new products pushed into 2026. We expect 2026 shipment growth rate to be higher than our 2026 revenue growth rate. Gross margin was 41.0% for Q4, and 49.8%. For the full year, gross margin was 44.5% versus 54% in 2024. Q4 gross margin was slightly below our long-term target model. Adding to David's earlier remarks, gross margins were down 8.8 percentage points year-over-year on a quarterly basis.

Speaker #2: We expect 2026 shipment growth rate to be higher than our 2026 revenue growth rate. Gross margin was 41.0% for the fourth quarter and 49.8%.

Speaker #2: For the full year, gross margin was 44.5% versus 54.4% in 2024. Q4 gross margin was slightly below our long-term target model. Adding to David's earlier remarks, gross margins were down 8.8 percentage points year over year on a quarterly basis.

Speaker #2: This was due to product mix and margin pressure concentrated in a few semicritical products which contributed about five points to the headwind and a higher level of inventory provisions that contributed about 4 points negative impact.

Mark McKechnie: This was due to product mix and margin pressure concentrated in a few semicritical products, which contributed about 5 points of the headwind, and a higher level of inventory provisions that contributed about 4%, 4 points negative impact. As David noted, we expect the lower gross margins to be temporary. We believe our new product ramp, combined with supply chain initiatives, will enable us to deliver the best products at a low cost, and there is no change to our long-term target model range of 42% to 48%. For modeling purposes, we expect gross margins to be at the lower end of this longer-term target range for the first half of 2026, with an anticipated lift in the second half, due in part to contribution from newer products, which generally have higher gross margins.

Speaker #2: As David noted, we expect the lower gross margins to be temporary. We believe our new product ramp combined with supply chain initiatives will enable us to deliver the best products at a low cost.

Speaker #2: And there is no change to our long-term target model range of 42 to 48%. For modeling purposes, we expect gross margins to be at the lower end of this longer-term target range for the first half of 2026 with an anticipated lift in the second half due in part to contribution from newer products which generally have higher gross margins.

Speaker #2: Operating expenses were $70.6 million for the fourth quarter of 21%. For the full year, operating expenses were $258.4 million of 34%. For 2025, R&D was $15.1% of sales, sales and marketing was $7.8% of sales, and G&A was $5.8% of sales.

Mark McKechnie: Operating expenses were $70.6 million for Q4, up 21%. For the full year, operating expenses were $258.4 million, up 34%. For 2025, R&D was 15.1% of sales and marketing was 7.8% of sales, and G&A was 5.8% of sales. For 2026, we plan for R&D in the 16% to 18% range, sales and marketing in the 7% to 8% range, and G&A in the 6% range. Operating income was $29.5 million for Q4 versus $52.8 million. Operating margin for Q4 '25 was 12.1% as compared to 23.6%. For the full year, operating margin was 15.9% as compared to 25.6%.

Speaker #2: For 2026, we plan for R&D in the $16 to 18% range. Sales and marketing in the $7 to 8% range. And G&A in the 6% range.

Speaker #2: Operating income was $29.5 million for the fourth quarter versus $52.8 million. Operating margin for Q4 25 was $12.1% as compared to 23.6%. For the full year, operating margin was $15.9% as compared to 25.6%.

Speaker #2: Long-term, we look to grow our R&D spending in line with revenue, but we expect to show operating level operating leverage in SG&A with spending growth below our revenue growth level.

Mark McKechnie: Long term, we look to grow our R&D spending in line with revenue. We expect to show operating leverage in SG&A, with spending growth below our revenue growth level. Income tax expense was $6.6 million for Q4 versus $17.3 million. For the full year, income tax expense was $13.3 million versus $35 million in 2024. For 2026, we expect our effective tax rate in the 8% to 10% range. Net income attributable to ACM Research was $17.3 million for Q4 versus $37.7 million. For the full year, net income attributable to ACM Research was $110.2 million versus $152.2 million. Net income for diluted share was $0.25 for Q4 versus $0.56.

Speaker #2: Income tax expense was $6.6 million for the fourth quarter versus $17.3 million. For the full year, income tax expense was $13.3 million versus $35 million in 2024.

Speaker #2: For 2026, we expect our effective tax rate in the 8 to 10% range. Net income attributable to ACM research was $17.3 million for the fourth quarter versus $37.7 million.

Speaker #2: For the full year, net income attributable to ACM research was $110.2 million versus $152.2 million. Net income for diluted share was $25 for the fourth quarter versus $56.

Speaker #2: For the full year, net income for diluted share was $1.61 versus $226. Our non-gap net income excluded $6.4 million of stock-based compensation expense for the fourth quarter and $33.6 million for the full year.

Mark McKechnie: For the full year, net income for diluted share was $1.61 versus $2.26. Our non-GAAP net income excluded $6.4 million of stock-based compensation expense for Q4 and $33.6 million for the full year. I will now review selected balance sheet and cash flow items. Cash, cash equivalents, restricted cash and time deposits were $1.13 billion versus $441 million at year-end 2024. Net cash, which excludes short-term and long-term debt, was $845.5 million versus $259.1 million at year-end 2024. A $585.4 million increase in net cash for 2025, included $623 million net raised in the private offering by ACM Shanghai in 2025.

Speaker #2: I will now review selected balance sheet and cash flow items. Cash, cash equivalents, restricted cash, and time deposits were $1.13 billion versus $441 million at a year-end 2024.

Speaker #2: Net cash, which excludes short-term and long-term debt, was $845.5 million versus $259.1 million at year-end 2024. $585.4 million increase in net cash for 2025 included $623 million net raised in the private offering by ACM Shanghai in 2025.

Speaker #2: Total inventory at year-end was $702.6 million, versus $676.4 million at the end of the third quarter. Raw materials were $349.7 million, up $23.5 million quarter over quarter.

Mark McKechnie: Total inventory at year-end was $702.6 million, versus $676.4 million at the end of Q3. Raw materials were $349.7 million, up $23.5 million quarter-over-quarter. We made additional strategic purchases to support production plans and to mitigate any potential supply chain risk. Work in process was $61.4 million, up $1.9 million quarter-over-quarter. Finished goods inventory was $291.6 million, up $0.9 million quarter-over-quarter. Finished goods inventory primarily consists of first tools under evaluation at our customer sites, along with finished goods located at ACM's facilities. Cash provided by operations was $33.9 million for Q4. For the full year 2025, cash used by operations was about $10 million.

Speaker #2: We made additional strategic purchases to support production plans and to mitigate any potential supply chain risk. Work in process was $61.4 million, up 1.9 million quarter over quarter.

Speaker #2: Finished goods inventory was $291.6 million, up 0.9 million quarter over quarter. Finished goods inventory primarily consisted of first tools under evaluation at our customer sites along with finished goods located at ACM's facilities.

Speaker #2: Cash provided by operations was $33.9 million for the fourth quarter. For the full year, cash 2025 cash used by operations was about $10 million.

Mark McKechnie: Capital expenditures were $58 million for the full year 2025. For the full year 2026, we expect to spend about $200 million in capital expenditures. This includes continued investments in Lingang, including the mini line and the second production facility, fixed assets for the business, and investments in Oregon, along with other items. That concludes our prepared remarks. Now let's open the call for any questions that you may have. Operator, please go ahead.

Speaker #2: Capital expenditures were $58 million for the full year 2025. For the full year 2026, we expect to spend about $200 million in capital expenditures.

Speaker #2: This continues this includes continued investments in Ling Gong, including the Mini Line and the second production facility. Fixed assets for the business and investments in Oregon along with other items.

Speaker #2: That concludes our prepared remarks. Now let's open the call for any questions that you may have. Operator, please go ahead.

Speaker #1: Thank you. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Operator: Thank you. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment while we compile our Q&A roster. Our first question will come from the line of Charles Shi with Needham and Company. Your line is open. Please go ahead.

Speaker #1: One moment while we compile our Q&A roster. Our first question will come from the line of Charles Shy with Needham & Company. Your line is open.

Speaker #1: Please go ahead.

Charles Shi: Hi, thanks for taking my question. I believe you gave a pretty good color on shipment versus revenue growth this year. I have a question since you mentioned about new products probably gonna be a bigger driver this year for growth. Wondering if you can give us some color, let's say, excluding the new products, what's the growth, either shipment or revenue, is expected to be, excluding all the new products. I think maybe I'm talking about the existing product lines in cleans, plating, et cetera. Thank you.

Speaker #3: Hi. Thanks for taking my question. I believe you gave a pretty good color shipment versus revenue growth this year. So I have a question.

Speaker #3: Since you mentioned about new products, probably going to be a bigger driver. This year, for growth and wonder if you can give some color let's say excluding the new products, what's the growth either shipment or revenue is expected to be excluding all the new products for the maybe I think maybe I'm talking about the existing product lines and cleans plating, etc.

Speaker #3: Thank you.

Speaker #2: Okay. Okay. Thank you, John. And actually, you know that is as we said, we made quite a big progress, right, in the SPM process.

David Wang: Okay, thank you, Charles. Actually, you know that is, we, as we said, we made a quite a big progress, right? In the SPM process. In general speaking, SPM, harder SPM represent 25%, 30% of the cleaning market. This market, in the last couple of years, were not much touched so much. As I said, last 2025, we made a very good progress, both into their special model design for the high temperature and also a powerful product. We're getting to very aggressively into this market. Again, this is a very high margin product, and also a lot of customer, both, you know, in the mainland China, also outside China, they have suffered a particle issue with this high temperature SPM process.

Speaker #2: In general speaking, SPM, hot SPM, represent 25, 30 percent of the Canadian market. And this market in the last couple of years, we're not much touch so much.

Speaker #2: And as I said, last 2025, we made a very good progress both into the special auto design for the high temperature and also Tahoe product.

Speaker #2: So we're getting to very aggressively into this market. And again, this is a very high-margin product. And also a lot of customers, both in their mainland China, also outside China, they have suffered their particle issue with this high-temperature SPM process.

Speaker #2: And we think with our proprietary design nozzle, we can control very good environment. So therefore, can be real reduced particle size. So that can be really enhance our market growth in Conini.

David Wang: With, we think with our proprietary design model, we can control a very good environment, therefore, can be, you know, really reduce particle size. That can be really enhance our market growth in cleaning. Secondly, I want to say our N2 bubbling proprietary bubbling wet etch technology is really critical for the 3D NAND sitting in nitro etching process, which we believe our proprietary technology not only cover today's demand for 300 layer, we believe as people move into 400 or even 500 layer, will suffer this kind of uniformity on the via top or via bottom, right? We're using large bubble and size, but also with our proprietary technology, we can make a very uniform large bubble distribution in a tank.

Speaker #2: Secondly, I want to say that is our into bubbling proprietary bubbling wet edge technology is really critical for the 3D net sitting nitrate etching process.

Speaker #2: Which we believe our proprietary technology not only cover today's demand for 300 layer, we believe as people moving to 400 or even 500 layer, will suffer this kind of ununiformity of the veer top or veer bottom, right?

Speaker #2: So we're using large bubble and size. We also with our proprietary technology, we can make a very uniform large bubble distribution in the tank.

Speaker #2: That will be real—enhance the etching uniformity from the top to the bottom for the veer. So we believe that's not only demand in the market in China, we also see that demand outside the global market too.

David Wang: That will be real enhance the etching uniformity and from the top to the bottom for the via. We believe that's not only, you know, demand in the market in China, we also see that demand outside the global market, too. Third one, I also mentioned that is our Supercritical CO2 Dry. We also made a lot of progress, right? which is the, you know, past customer demo, we have two tools, you know, scheduled to be delivered, you know, in the Q1 or Q2 of this year. We have additional interest in coming in. Again, since the Supercritical CO2 with our provided design, we got a capacity or cavity, our CO2 chamber is about 40% smaller. We believe that we're really providing customer a 40% reduction of the consumable cost.

Speaker #2: And third one, I also mentioned that is our supercritical CO2 dry. We also made a lot of progress, right? And which is past customer demo.

Speaker #2: We have two tools scheduled to be delivered in the first or second quarter of this year. We have additional interest in coming in. Again, since the supercritical CO2 with our proprietary design, we got a capacity or cavity our CO2 chamber is about 40% smaller.

Speaker #2: So we believe that will really provide customer 40% reduction of the consumable cost. And that really also, again, right, driving this product out in the local China market will also get into the outside China market.

David Wang: That really also, again, right, driving this product not in the local, I call it, China market, but also getting to the outside China market. With all this cleaning, I call it, together, we believe also expansion in the future, this will probably represent, even in China, almost a billion-dollar market potential for us to get in. We're still very, you know, exciting about our continued expanding our cleaning product, you know, in the China market. Plus, also give us really a strong differential technology exposure to global market, right? That's for cleaning.

Speaker #2: So with all this Conini add together, we believe also expansion in the future, this will probably represent even in China almost a billion dollar market potential for us to get in.

Speaker #2: So we're still very exciting about our continued expanding our Conini product in the China market. Plus, also give us really strong differential technology exposure global market, right?

Speaker #2: So that's what Conini. And again, for carbon plating, as I mentioned, we have a full set of the Conini product front end, TSV, back end, advanced packaging, including also this I call the compound semiconductor.

David Wang: Again, for copper plating, as I mentioned, you know, we have a full set of the cleaning product: you know, front end, TSV, back-end, advanced packaging, including also, you know, this, I call it, compound semiconductor. Recent, we just, you know, announced our panel, horizontal plating, which we believe very, very key technology to driving for the panel size plating. This moment, everybody using vertical and copper plating for panel. We are the first one in the world so far doing horizontal plating, right? With our differential technology, we believe probably, most likely, we're the only one in the market to drive another horizontal copper plating.

Speaker #2: Plus, recently we just announced our panel horizontal plating. Which we believe very, very key technology to driving for the panel size plating. This moment, everybody using vertical and carbon plating for panel.

Speaker #2: We are the first one in the world so far doing horizontal plating, right? Which is our differential technology. We believe probably most likely we're the only one in the market to drive another horizontal carbon plating.

Speaker #2: So this is also we see the bigger interest not only in the China market. We see also a lot of interest coming in for us to deliver this tool.

David Wang: This also we see the bigger interest, you know, not only in the China market, we see also a lot of interest, you know, coming in for us to deliver, you know, this tool. With that, all new product, you know, our existing cleaning copper plating can drive a lot of revenue this year, including next year, right? Plus, as I said, with our other furnace and PECVD, and also track business, we are developing for last 4 or 5 year, really made a lot of technology breakthrough, too. Believe those technology getting this year, start getting market, and we're real sustaining our next 3 to 5 year growth. Which, you know, that last 3, 4 year, our major growth is comes from cleaning the copper plating.

Speaker #2: So with that all new product, in our existing Conini carbon plating can drive a lot of revenue this year, including next year, right? And then plus as I said, our other furnace and the PCVD and also track business, we are developing for the last four or five years, really made a lot of technology breakthrough too.

Speaker #2: So we believe those technology getting this year start getting in the market. And we're real sustaining our next three to five year growth. And which you know that last three, four years, our major growth is come from Conini and the carbon plating.

David Wang: Next few year, we see this new product coming in, which definitely strengthening our high growth profile in next few years. We are very, you know, exciting, very, you know, I was executing our strategy to continue grow our revenue. Charles?

Speaker #2: And next few years, we see this new product coming in will definitely strengthen our high growth profile. In next few years. So we're very exciting, very try to I was excusing our strategy.

Speaker #2: The continued growth revenue. Charles.

Speaker #3: Thanks, David. Maybe a question on profitability. So you reported the last year you gave some color about this year. But I believe if my math is right, your operating margin will compress the last year from maybe close to 26% in '24 to 16% in '25.

Charles Shi: Thanks, David. Maybe a question on profitability. You reported the last year, you gave some color about this year. I believe if my math is right, your operating margin will compress the last year from maybe close to 26% in 2024 to 16% in 2025. This year, based on your what you guided about growth margin, what you guided about R&D, SG&A, doesn't look like operating margin can rebound. Feels like operating margin probably more or less the same, or even coming down a little bit, depending on how the growth margin trends for the remainder of the year. Want to get some sense, what's the reason for operating margin being under pressure for almost 2 years?

Speaker #3: But this year, based on your what you guided about gross margin, what you guided about R&D, SG&A, doesn't look like operating margin can rebound.

Speaker #3: It feels like operating margin probably more or less the same or even coming down a little bit depending on how the gross margin trends for the remainder of the year.

Speaker #3: So I want to get some sense what's the reason for operating margin being under pressure for almost two years and how do you plan to address this and maybe try to expand the operating margin from here.

Charles Shi: How do you plan to address this and maybe try to expand the operating margin from here? Thank you.

Speaker #3: Thank you.

Speaker #2: Yeah. Actually, let's this way. Looking at gross margin, right? We are the probably top of the equipment company in China, right, for gross margin, right, for the last few years.

David Wang: Yeah. Actually, let's this way, you know, looking at gross margin, right? We are the probably top of the equipment company in China, right? For gross margin, right, last few year. As you said, Q4 of our, especially Q4 last year, we do see our, you know, first time our gross margin is, you know, lower than our range, 40% to 48%, right? As explaining, maybe three factor. One is the product mixing. We have, you know, one or two product, which is a semi-critical tool, do have, you know, pressure from the competitor for pricing, you know, there. The next one is really our, you know, this inventory provision.

Speaker #2: And as you said, Q4 of our see our first time gross margin in the lower than our range, 40 to 48 percent, right? As we explaining, ing, maybe three factors.

Speaker #2: One is the product mixing. We have one or two products, which is semi-critical tool. Do competitor for pricing there. The next one is really our this inventory provision.

Speaker #2: But we think this year, as we are new product coming, as I mentioned, this three Conini product coming, will definitely enhance our margin. And also our inventory provision we believe will be also greatly reduced too.

David Wang: We think this year, as we are new product coming in, as I mentioned, this, you know, 3 cleaning product coming in, will definitely enhance our margin. Our inventory provision, we believe will be also greatly reduced too. We still have a confidence we're in a 40 to 48, you know, gross margin in this year or beyond. As, as you said, we put quite a bit of R&D last year, right? It used to be R&D 13, 14%. This last year, we're getting to 16%. We're probably will keep that number and in the, in a way. Why? You know, the next few year, AI is driving a lot of demand for the new technology.

Speaker #2: So with that, we still have a confidence we're in the 40 to 48 gross margin in this year or beyond. And more than that is as you said, we put quite a bit of R&D last year, right?

Speaker #2: Used to be R&D 13, 14 percent. Last year, we're getting to 16%. We're probably will keep that number and in the way. Why? The next few years, AI is driving a lot of demand for the new technology.

Speaker #2: And everybody else in the first tier company, in outside China, all people put a lot of R&D and so we'll continue to invest that.

David Wang: Everybody, you know, else, you know, first-tier company, you know, in, outside China, all people put a lot of R&D. We'll continue to invest that, which we know will impact little bit, you know, our operation margin, but it's worth to spend the money now. Why? I said opportunity is there, right? A lot of customer real demand for the new technology, which I believe a lot of AI technology today, even not invented yet. It's really give ACM good opportunity with our innovation, you know, power, our differential technology, developing the capability. We can use this AI as a trend. We'll catch a lot of our new technology and also catch the customer. This for random places, one good example, right?

Speaker #2: Which we know will impact a little bit our operation margin, but it's worth to spend the money now. Why? I said opportunity is there, right?

Speaker #2: And a lot of customer real demand for the new technology, which I believe a lot of AI technology today, even not invented yet. So it's really give ACM a good opportunity with our innovation power or differential technology development capability we can use this AI trend.

Speaker #2: We'll catch a lot of new technology and also catch the customer. This horizontal plate is one good example, for example, right? So again, and it's worth to spend more R&D, even get a few percent of the operation margin lower which is real long run and we're working for the invest interest and also for gross ACM market and into the next few years.

David Wang: Again, it's worth to spend more R&D, even get a few percent of the operation margin lower, which is real long run, and we're working for the investor interest and also the growth ACM, you know, market in, into the next few years.

Speaker #3: Yeah. Hey, David, don't mind to add a few things. I think it was a good overview. But Charlie, I think it kind of summarizing it up, we're spending into the $4 billion market opportunity.

Mark McKechnie: Yeah. Hey, David, I might add a few things. I think that was a good overview. Charlie, I think, kind of summarizing it up, you know, we're spending into the $4 billion market opportunity. You know, there's a number of products that, areas that haven't scaled yet, but we expect them to scale over the next few years. It's the right thing to do to spend into that. You're right about the operating margin for 2026, kind of, comes in at the mid-teen level, you know, similar to what it was here in 2025.

Speaker #3: There's a number of products that areas that we've been investing in that haven't scaled yet. But we expect them to scale over the next few years.

Speaker #3: It's the right thing to do to spend into that. You're right about the operating margin for 2026 kind of comes in at the mid-teen level, similar to what it was here in 2025.

Mark McKechnie: You know, you move out a few years, we, you know, our target is to keep those gross margins at that target range, and then, you know, grow our top line faster than our OpEx. I think you can see some leverage in the out years.

Speaker #3: You move out a few years, our target is to keep those gross margins at that target range and then grow our top line faster than our OPEX.

Speaker #3: I think you can see some leverage in the out years.

Speaker #2: Okay. Thank you.

Charles Shi: Okay. Thank you.

Speaker #3: Yep. Thanks, Charles.

Mark McKechnie: Yeah. Thanks, Charlie.

Speaker #2: Thank you, Charles.

David Wang: Thank you, Charles.

Speaker #1: Thank you, one moment. For our next question. Our next question will come from the line of Edison Lee with Jeffreys. Your line is open.

Operator: Thank you. One moment for our next question. Our next question will come from the line of Edison Lee with Jefferies. Your line is open. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Oh, hi, David and Mark. Congratulations on the results. I just have two quick questions. Number one is that for the fourth quarter, the margin is a little bit low and the revenue growth also is a little bit slow.

Edison Lee: Hi, David and Mark. Congratulations on the results. I just have two quick questions. Number one is that for Q4, the margin is a little bit low, and the revenue growth also is a little bit slow, and then your shipment, I think, declined for on a year-on-year basis. How much of that is just product mix and seasonality? When you think these numbers will actually start improving in 2026? The second question is about the $111 billion you raised by selling down ACM Shanghai. Can you shed some light as to how you would actually utilize that proceeds?

Speaker #4: And then your shipment, I think, declined on a year-on-year basis. So how much of that is just product mix and seasonality and when you think these numbers will actually start improving in 2026?

Speaker #4: And then the second question is about the 111 million US dollars you raised by setting down ACMS. Can you shed some light as to how you would actually utilize that proceeds?

Speaker #2: Okay. So let's answer your first question, right? I think that you looking there, I just mentioned last couple of years, our major gross engine from Conini and also carbon plating, right?

David Wang: Okay, let's answer your first question, right? I think that you looking there, as I mentioned, last couple of year, our major growth engine from cleaning and also copper plating, right? Even the cleaning, I said, there's one important product, which is SPM process, we're not touched too much. As I mentioned last year, you know, end of last year, you know, Q4 last year, we made a significant progress with this, you know, special novel design. We believe our performance is outperforming and, you know, top tier as a tool. We see that grow continuously, right? I would say our cleaning, copper plating, you know, also horizontal panel continue to expand too. That'll keep momentum. Our cleaning market, you know, probably today in China, about 35 range.

Speaker #2: Even in the the Conini, I said there's one important product which is SPM process. We're not touching too much. As I mentioned last year, end of last year, Q4 last year, we made a significant progress with this special nozzle design.

Speaker #2: We believe our performance and outperforming and top tier as a tool. So we see that growth will continuously, right? And so then I would say our Conini carbon plating also horizontal panel continually expanded too.

Speaker #2: So that keeps momentum. Our Conini market probably today in China about 35 range. We're expanding to 50, 60 percent next few years. And the carbon right now, the 40, I still say we'll try to catch 60 in the beyond market in China.

David Wang: We're expanding to 50%, 60%, you know, next few year. The copper right now, the 40, I still say we're trying to catch 60 even beyond mark in China. More than that is, those product, different product, we see the very high interest from global, you know, top-tier customer. That's what we also reinforce ourselves outside China. That's why I see the, you know, impact our, or as boost our revenue, you know, for our existing product. I want to see that in through the last 5 years, we are really working with differentiator, you know, PECVD and track, and then also furnace technology, which is, we believe a lot of our new technology we're putting in, and nobody had it before, right? That's what reinforce our, I call the market position, and plus-...

Speaker #2: More than that is those products, differential products. We see the very high interest from global top tier customer. So that's what we also reinforce ourselves outside China.

Speaker #2: So that's what I see the impact boost our revenue for our existing product. And also I want to see that through the last five years, we are really working the differential PCVD and track and also furnace technology, which we believe a lot of new technology we are putting in and nobody had it before, right?

Speaker #2: So that's what reinforce our I call the market position and plus those tools is really with our differential technology we put a lot of time to develop IP, develop the roadmap.

David Wang: Those tool is really with our differential technology. We put a lot of time to develop IP, develop the roadmap. It cost a little long time than, you know, the other guys. Now it's come the moment to the market. Plus, I want to see another bigger impact is, I call it improvement is last Q3. We start using Lingang on mini line, which we do not have it before. That was really helping our internal demonstration, internal R&D, and speed. We see the bigger, you know, impact already. That will be helping our tool mature before ship the customer.

Speaker #2: It costs a little bit long time, then the other guys, so and now it's come the moment to the market. And plus I want to see another, bigger impact, is I call the improvement is last Q3, we start using Ningang or Mini Line, which we do not have it before.

Speaker #2: That will really helping our internal demonstration, internal R&D speed. We see the bigger impact already. So that's what will be helping our tool mature before ship the customer.

Speaker #2: So with all together, I want to say this new growth and from the existing and also our new product coming in, we're driving ACM in real high growth profile in a year and this year and in the next few years.

David Wang: With all together, I want to say, you know, this is a new growth, and from the existing and also our new product coming in, we're driving ACM in real high growth profile in a year, this year and in the next few year. We're very confident. Plus, even I say, you know, WFE market in China is flat, whichever we can get a higher growth rate because of new product coming in. Plus also, as you say, we have made a lot of progress in a global customer, you know, this, the news announced, you know, today. We also see a lot of interest in coming into our differential technology from top-tier customer. Because we have a pattern has been, you know, locked the technology already. They almost have no choice. They have to come to us.

Speaker #2: So we're very confident. Plus even I say WFE market in China is a flat with that we can get a higher growth rate because new product coming in.

Speaker #2: And plus also as you say, we have made a lot of progress in the global customer this news announced today. We also see a lot of interesting coming into our differential technology from top tier customer because we have a patent has been locked the technology already.

Speaker #2: They almost have no choice. They have to come to us. Anyway, so that's really exciting for our technology. We're really trying to pushing our technology real benefit international global customer for their AI challenges.

David Wang: Anyway, that's really exciting, for our technology. We're really trying to pushing our, you know, technology, real benefit to the international global customer for their AI challenges.

Speaker #3: Yeah. Hey, David, yeah, let me add on to something before you answer his question about our Shanghai stock sales. So Edison, for Q4, you probably remember last call, we mentioned that Q4 in the year the overall year came in at the midpoint of where we started the year, maybe a little bit better.

Mark McKechnie: Yeah. Hey, David-

David Wang: Mark, anything to add on that?

Mark McKechnie: Yeah, let me add on to something before you answer his question about our Shanghai stock sales. Edison, for Q4, you probably remember last call, we mentioned that, you know, Q4 in the year. You know, the overall year came in at the midpoint of where we started the year, maybe a little bit better. And, don't forget, we had two things. Our newer products didn't kick in very little in 2025, and then, we did have a customer push out from Q4 into 2026. That was a, you know, kind of a, those two things that hit 2024. I'm sorry, the Q4.

Speaker #3: And don't forget, we had two things our newer products didn't kick in very little in 2025. And then we did have a customer push out from Q4 into 2026.

Speaker #3: And so that was kind of those two things that hit 2024. I'm sorry, the Q4. When you look out to 2025, we're expecting linearity pretty similar to I'm sorry, 2026, we're expecting our linearity to be pretty similar.

Mark McKechnie: When you look out to 2025, you know, we're expecting linearity, pretty similar to, I'm sorry, 2026, we're expecting our linearity to be pretty similar. The first half will be about 42%, 43% of revenue. Second half will be, you know, 57% to 58%. You know, I would kind of anticipate Q1 at about 18% to 20% of the full year mix. Maybe, David, if you wanted to take his question, what are we gonna do with the cash that we raised in, or that we sold, you know, the cash that we sold? Yeah.

Speaker #3: So the first half will be about 42, 43 percent of revenue. Second half will be 57 to 58 percent. But I would kind of anticipate Q1 at about 18 to 20 percent of the full year mix.

Speaker #3: Maybe, David, if you wanted to take his question, what are we going to do with the cash that we raised in or that we sold the cash that we sold?

Speaker #2: Yeah. Sorry. Sorry, Mark. Mark. Mark. Can you hear me?

Edison Lee: Sorry, Mark, can you hear me?

Speaker #3: Yes. Yeah.

Mark McKechnie: Yes. Yeah.

Edison Lee: Hey, before we move on to the use of proceeds, can you also comment a little bit on what you said about, I think some pricing pressure, which I think partially account for lower margin in Q4?

Speaker #2: Hey, before we move on to the use of proceeds, can you also comment a little bit on what you said about, I think, some products having some pricing pressure, which I think partially account for lower margin in the fourth quarter?

Speaker #3: Yeah. And there's not much to add to what I said there. What David and I both said, there were a couple of semi-critical products that had particularly low margins that hit us in Q3 and Q4.

Mark McKechnie: Yeah, there's not much to add to what I said there. You know, we, or what David and I both said. You know, there were a couple of semicritical products that had particularly low margins that hit us in Q3 and Q4. We, you know, David mentioned in the prepared remarks, he talked about the competitive situation in China. You know, we are very focused on developing world-class tools. We think that, you know, there was also a bigger provision in the back half of the year. We think that'll be the overall provision for 2026, probably be smaller than it was in 2025, and it'll probably be more balanced throughout the year. Yeah.

Speaker #3: And as David mentioned in the prepared remarks, he talked about the competitive situation in China. We are very focused on developing world-class tools. We think that there was also a bigger provision in the back half of the year.

Speaker #3: So, we think that overall, the provision for 2026 will probably be smaller than it was in 2025, and it’ll probably be more balanced throughout the year.

Speaker #3: Yeah.

Speaker #2: Okay. So you want to attach it there, how we're using proceeds, right? Okay. Well, obviously, we have a second offering in China, right? Those are money will be real focusing on R&D again.

Edison Lee: Okay.

David Wang: You want me to touch on how we're using proceeds, right?

Edison Lee: Yes.

David Wang: Okay. Well, obviously, we have a second offering in China, right? Those money will be really focusing on R&D again, expansion for their manufacturing. We have a second building where we start to, you know, decoration this year. With that add together, probably we can manufacture $3 billion annually, and which would really give us a lot of, you know, room for manufacturing. Plus, we're also putting money in a mini line. As I mentioned, this mini line really speed up our internal R&D and debugging the tool, and also even can do the joint development with the customer process too. It's really, really, you know, worth spending for this money.

Speaker #2: Our expansion for their manufacturing. We have a second building we'll start to decoration this year. So with that add together, probably we can manufacture 3 billion annually, which is really give us a lot of room for manufacturing.

Speaker #2: And plus, we'll also put the money in the Mini Line. As I mentioned, this is Mini Line really speed up our internal R&D and debugging the tool.

Speaker #2: And also even can do the joint development with the customer process too. So it's a really worth spending for those money. And proceed, we got from the solder 1.3% from Shanghai share.

David Wang: The proceed we got from the, you know, so the 1.3% from Shanghai here, definitely the major purpose for that was spending global, you know, customer, global marketing sale. We see that opportunity, you know, really big in a global market. As I mentioned, we do have some differential, and technology might be the only solution for their, for their, you know, AI challenging. Those product, we think, will be really gather attention from the global customer. We have to spend money and, you know, building the international strongly sales channel. Also, we're, you know, we already had a career manufacturer base already. However, you know, with this geographic tariff going on, we have to minimize the tariff impact, right?

Speaker #2: Definitely the major purpose for that was spending global customer, global marketing sale. So we see that opportunity really big in a global market. As I mentioned, we do have some differential technology.

Speaker #2: It might be the only solution for their AI challenging. So those products, we think, will attention from the global customer. So we have to spend money and building the international strongly sales channel and also we already had a Korea manufactured base already.

Speaker #2: And however, with this geographic tariff going on, we have the real Mini minimize the tariff impact, right? So that's why we started assembly tool in the USA.

David Wang: That's why we start the assembly tour in the US. That will be real, reduce our concern or any dynamic changing for those tariff impact our revenue. Anyway, that's really what come. Our goal is very simple. We try to working with the, you know, with the satisfy all regulation and the, you know, requirement and maximize the investor interest. We're building a global sales, global company. That's our goal.

Speaker #2: So that will be real reduce our concern or any dynamic changing for those tariff impact our revenue. So anyway, that's really what come. And our goal is very simple.

Speaker #2: We try to working with the certify all regulation and requirement and maximize the invest interest we're building a global sales, global company. That's our goal.

Speaker #4: Okay. Thank you.

Mark McKechnie: Okay, thank you.

Edison Lee: Okay, thank you.

Speaker #3: Thanks, Edison. Yeah, I appreciate it. Next question, please, operator.

David Wang: Thanks, Edison. Yeah, I appreciate it. Next question, please, operator.

Mark McKechnie: Thanks, Edison. Yeah, I appreciate it. Next question, please, operator.

Operator: One moment. Our next question comes from the line of Jimmy Hong with J.P. Morgan. Your line is open. Please go ahead.

Speaker #5: One moment. Our next question comes from Lina. Jimmy Hong with JPMorgan. Your line is open. Please go ahead.

Jimmy Hong: Hi. Hi, David. Can you hear me?

Jimmy Hang: Hi. Hi, David. Can you hear me?

Speaker #4: Hi. Oh, hi, David. Can you hear me?

Speaker #3: Yes, please.

David Wang: Yes, please.

Speaker #4: Yeah, yeah. Thank you. Congrats on the good results. I want to ask about the single way for cleaning tools to a Singapore-based foundry.

Jimmy Hong: Yeah, yeah, thank you. Congrats for the good results. I want to ask about we deliver a single wafer cleaning tools to a Singapore-based foundry. What would be the potential size of shipments in terms of units or dollars this year or next year, and next year? Yeah, this is my first question.

Jimmy Hang: Yeah, yeah, thank you. Congrats for the good results. I want to ask about we deliver a single wafer cleaning tools to a Singapore-based foundry. What would be the potential size of shipments in terms of units or dollars this year or next year, and next year? Yeah, this is my first question.

Speaker #4: What would be the potential size of shipments in terms of units or dollars this year or next year? And next year, yeah. This is my first question.

David Wang: Yeah, good, very good question. Actually, you know, we have a few tool or we're in the installation process right now, right? Those tool, you know, this tool will be qualified and go in production, you know, this year. With that, we definitely will introduce more of a cleaning tool, and also we do have a copper plating in the behind. That's really what give us exposure of product, you know, in Asian market. This will be real making more of a, I call it, confidence, and also get a high interest from other player in Asia, in the market, too.

Speaker #3: Yeah. Very good question. Actually, we have a few tools we're in exploration process right now, right? Those tools, this tool will be qualified and going production this year.

Speaker #3: And with that, we'll definitely introduce more of a cleaning tool and also we do have a copper plating and in the behind. So that's really what give us exposure of product in the Asian market.

Speaker #3: And so this will be real making more of a, I call it, confidence and also get a higher interest from other players in Asia and the market too.

Speaker #3: So we see this really be bigger milestone and for us. And plus, we're not only look at the customer only in Singapore. And we do have a customer in Korea.

David Wang: We see this a really bigger milestone and for us. Plus, you know, we're not only look at a customer only in Singapore, we do have a customer in Korea, and also we have customer, you know, potentially in Taiwan. We have really confidence, you know, we should have expanding quickly in Asia market. Plus, again, you know, we're also very focusing on our US market, too. We do have advanced packaging tool PO and receiving, and we should deliver by end of this year. We see a lot of potential going on in the US market, too. Again, because today, all the memory or logic, they're, you know, they are AI driving for their advanced technology. ACM, you know, I want to say, I feel good technology is really needed for their production line.

Speaker #3: And also we have a customer potentially in Taiwan. So we have really confidence we should have expanding quickly in the Asian market. And plus, again, we're also very focusing on our US market too.

Speaker #3: We do have advanced packaging tool PO and receiving. And we should deliver by end of this year. And we still have a lot of potential going on in the the US market too.

Speaker #3: Again, because today, all the memory, all logic, their AI driving for their advanced technology. ACM, I won't say I feel good technology really needed for their production line.

David Wang: We believe that way beneficial for the customer and also can help expansion our market to global. It's a great opportunity.

Speaker #3: We believe that's where beneficial for the customer and also can help expansion market to global. So it's a great opportunity. Because again, innovation is a key.

David Wang: We believe that way beneficial for the customer and also can help expansion our market to global. It's a great opportunity.

Jimmy Hong: Yeah.

Jimmy Hang: Yeah.

David Wang: Again, in innovation is the key, and every customer and every key customer, they all demand for innovation technology, which will perfectly fit our, you know, strategy.

Speaker #3: And every customer and every key customer they all demand for innovation technology, which is a perfect fit our strategy.

Jimmy Hong: Yeah. Thank you, Dr. Wang. For Singapore business, how's the chance that we penetrate to Singapore-based memory makers in the next few years? My second question is for advanced packaging. We are making great progress, but, you know, for Taiwan, Taiwanese foundries and also are leading the panel level packaging for AI GPUs and ASICs. Can we talk about our POP progress with potential Taiwanese players? Do we have any, like, order forecasts or purchase orders in, from these Taiwanese potential customers? Yeah.

Speaker #4: Yeah. Yeah. Thank you. Dr. Wang. Yeah. So for Singapore business, how's the chance that we penetrate to Singapore-based memory makers in the next few years?

Jimmy Hang: Yeah. Thank you, Dr. Wang. For Singapore business, how's the chance that we penetrate to Singapore-based memory makers in the next few years? My second question is for advanced packaging. We are making great progress, but, you know, for Taiwan, Taiwanese foundries and also are leading the panel level packaging for AI GPUs and ASICs. Can we talk about our POP progress with potential Taiwanese players? Do we have any, like, order forecasts or purchase orders in, from these Taiwanese potential customers? Yeah.

Speaker #4: And my second question is for advanced packaging. We are making great process, but you know for Taiwan, Taiwanese foundries, and also leading the panel-level packaging for AI GPUs and ASICs.

Speaker #4: Can we talk about our POP progress with potential Taiwanese players? Do we have any other forecasts or purchase orders in from these Taiwanese potential customers?

Speaker #4: Yeah.

Speaker #3: Yeah. Actually, we are real talking to a few key customer, right? Even the panel large size, 515 by 510. And also we talk about their 310 by 310, right?

David Wang: Yeah, actually, you know, we are talking to a few key customer, right? Even a panel large size, 515 by 510, and also we talk about their 310 by 310, right? Which is the 2 vision right now, people try to push in. We have very good exposure to those customer. By the way, April 7, 8, we'll have attending the panel conference in Taiwan. In that conference, we'll do the keynote speaker about the horizontal plating and also our vacuum cleaning technology. It's really a lot of exciting, I want to say, interest coming in. Also, you know, I said, I heard everybody say panel product or equipment, they're probably satisfy all other product except their plating. Plating become the bottleneck for their production expansion.

Speaker #3: Which is the two vision right now people try to pushing. So we are very good exposure to those customer. By the way, April 7, 8, we'll have attending the panel conference in Taiwan.

Speaker #3: And in that conference, we'll do the keynote speaker about the horizontal plating and also our vacuum cleaning technology. So it's really a lot of exciting I want to say interest coming in.

Speaker #3: And also, I said I heard everybody say 'panel product' or 'equipment.' They're probably certified, or all other products except their plating. So plating becomes their bottom line for their production expansion.

Speaker #3: So with that, demand, I said we are the only one supply horizontal plating. And you probably heard that is the one key player in Taiwan.

David Wang: With that, you know, demand, I said, we are the only one supplying horizontal plating. You probably heard that is the one key player in Taiwan. They said that only want a horizontal plating, they don't want a vertical. Our horizontal plating perfect fit their strategy or their demand. As I said, it's really, we see the big opportunity and, you know, with our panel product. Actually, we're not only trying to introduce it. So far, three products, right? Panel plating, vacuum cleaning, and also the Bevel. We'll be available, also additional, you know, and co-developer, wet etcher, and cleaning, all kind of wet tool we're putting in, too. That's really what we catch the real, this wave of the panel, I call the shift, right, for the advanced packaging.

Speaker #3: They said the only one horizontal plating. They don't want a vertical. So our horizontal plating perfect fit their strategy or their demand. So as I said, it's really we see the big opportunity and with our panel product.

Speaker #3: Actually, we're not only trying to say introduce so far three products, right? Panel plating, vacuum cleaning, and also the bevel. We're going to develop also additional and call the developer wet etcher.

Speaker #3: And cleaning all kind of wet tool we're putting in too. So that's really what we catch the real this wave of the panel I call the shift, right, for the advanced packaging.

Speaker #3: So we're in a very good position and for those coming in panel advanced package expanding. We're very excited about this opportunity. Right.

David Wang: We're in a very good position and for this coming panel advanced packaging expanding. We're very expect and excited about this opportunity, right?

Speaker #4: Yeah. But do you know in which kind of periods, quarters, it will be more clear that whether we'll have any other forecasts or purchase orders for this POP equipment?

Jimmy Hong: Yeah, do you know, like, in which kind of periods, quarters, it will be more clear that whether we'll have any order forecast or purchase orders for this POP equipments for Yeah?

Jimmy Hang: Yeah, do you know, like, in which kind of periods, quarters, it will be more clear that whether we'll have any order forecast or purchase orders for this POP equipments for Yeah?

Speaker #4: Yeah.

Speaker #3: Well, let's put it this way, right? We're announced that we do have also a PO from outside mainland China, right? I mean, we said already.

David Wang: Well, you know, let's put it this way, right? We announced that we do have also PO from outside mainland China, right? I mean, we said already, you know what I mean here. Then we're continually expanding more, right? Again, I want to say, this year, we have a confidence, catch additional PO for our, you know, bevel, I mean, for our, vacuum cleaning and also for the horizontal copper plating. Probably not only in Taiwan market.

Speaker #3: So you know what I mean here. And then we're continually expanding more, right? So again, I want to say this year we have a confidence catch additional PO for our bevel.

Speaker #3: I mean, for our vacuum cleaning and also for the horizontal copper plating. And probably not only in Taiwan market, we also see the opportunity in Korea.

Jimmy Hong: Yeah.

Jimmy Hang: Yeah.

David Wang: We also see the opportunity in Korea, also in Singapore, by the way. It's very exciting.

Speaker #3: Also in Singapore, by the way. So it's very exciting.

Speaker #4: Yeah. Yeah. Thank you. Maybe I can squeeze in my last question about investor FAQ. ACM has disposed a small portion of stats in ACM Shanghai.

Jimmy Hong: Yeah. Yeah, thank you. Maybe I can squeeze in my last question about investor FAQ. Like, ACM has disposed a small portion of staff in ACM Shanghai. How do we think about more further staff disposal in the future? You mentioned that US international capacity builds will require more funding. Will we dispose of more staffs of ACM Shanghai in the future? Yeah.

Jimmy Hang: Yeah. Yeah, thank you. Maybe I can squeeze in my last question about investor FAQ. Like, ACM has disposed a small portion of staff in ACM Shanghai. How do we think about more further staff disposal in the future? You mentioned that US international capacity builds will require more funding. Will we dispose of more staffs of ACM Shanghai in the future? Yeah.

Speaker #4: How do we think about more further stack disposal in the future? You mentioned that US international capacity builds will require more fundings. Will we dispose of more stacks of ACM Shanghai in the future?

David Wang: Repeat the question again? I'm sorry. Can you repeat again?

Speaker #3: Repeat the question again. I'm sorry. Can you repeat again?

Steven Pelayo: He's asking, are we gonna sell more of our ACM stock?

Speaker #2: He's asking are we going to sell more of our ACM Shanghai?

David Wang: I see. I see. Okay. You know, we sold 1.3% already, right? Which get a proceed, you know, about $111 million. You know, we do have a both arm to acquire raise money. We can raise in US, we can raise in Shanghai. We're very flexible for what we were choosing, number one. This moment, I wanna say our Shanghai stock is still, you know, we think it's still undervalued, okay, with our growth. We maybe consider what's the money demand and the timeline, also, what's the stock price in Shanghai, will decide there, you know, where or when or we should sell additional or not. Plus, as well as flexible arm, you know, we can raise the money in USA. It's quite flexible for us to raise the fund.

Speaker #3: Oh, I see. I see. Okay. You know we sold 1.3% already, right? And which got to proceed about 111 million. And we do have both arm to raise money.

Speaker #3: We can raise the US. We can raise in Shanghai. We're very flexible for what we're choosing, number one. And this moment, I want to say our Shanghai stock is still we think it's still undervalued, okay?

Speaker #3: With our growth. So we may be consider what's the money demand. And the timeline also what's the stock pricing in Shanghai. We'll decide where or when we should sell additional or not.

Speaker #3: And plus, as I always have said, we can raise the money in the U.S.A. So it's quite flexible for us to raise the fund.

Speaker #3: And this moment, I want to say obviously we'll continue investing more in global market. And we have no concern for those money where it come from, right?

David Wang: This moment, you know, I wanna say, well, obviously, we'll continue investing more in global market, and we have no concern for those, you know, money, where it come from, right? We're very confident. Also, have another knob, another tool, we can get the money anyway.

Speaker #3: We're very confident. Also, I have a lot of knob, a lot of tool we can get the money anyway.

Speaker #4: Yeah. Thank you so much. That's all my questions. Thank you, Dr. Wang. I'll be back to Q. Thank you.

Jimmy Hong: Yeah. Thank you so much. That's all my questions. Thank you, Dr. Wang. I'll be back to the queue. Thank you.

Jimmy Hang: Yeah. Thank you so much. That's all my questions. Thank you, Dr. Wang. I'll be back to the queue. Thank you.

Steven Pelayo: Great. Thank you.

Speaker #1: Great. Thank you.

Speaker #3: Thank you.

David Wang: Thank you.

Speaker #2: Thank you. Seeing no more questions in the queue. Let me turn the call back over to Steven Pelayo for closing remarks.

Operator: Thank you. Seeing no more questions in the queue, let me turn the call back over to Steven Pelayo for closing remarks.

Speaker #1: Okay. Great. Before we conclude, I just want to give everyone a quick reminder on our upcoming investor conferences. On March 9th, we will participate virtually in Loop Capital Markets' seventh annual investor conference for one-on-one meetings.

Steven Pelayo: Okay, great. Before we conclude, I just want to give everyone a quick reminder on our upcoming investor conferences. On 9 March, we will participate virtually in Loop Capital Markets seventh Annual Investor Conference for one-on-one meetings. On 23 and 24 March, we will present at the 38th Annual ROTH Conference in Dana Point, California. Attendance at the conference is by invitation only. For interested investors, please contact your respective sales representative to register and schedule one-on-one meetings with the management team. This concludes the call, and you may now disconnect. Take care.

Speaker #1: On March 23rd and 24th, we will present at the 38th annual Roth Conference in Dana Point, California. Attendance at the conference is by invitation only.

Speaker #1: For interested investors, please contact your respective sales representative to register and schedule one-on-one meetings with the management team. This concludes the call. And you may now disconnect.

Speaker #1: Take care.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.

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