Hua Hong Semiconductor Limited

Ladies and gentlemen, thank you for standing by. Welcome to the Hua Hong Semiconductor's fourth quarter 2024 earnings conference call. Today's call is hosted by Dr. Peng Bai, President and Executive Director, and Mr. Daniel Wang, Executive Vice President and Chief Financial Officer. Please be advised that your dial-ins are in listen-only mode. However, at the conclusion of the management presentation, there will be a question-and-answer session, at which time you will receive instructions on how to participate. The earnings press release and fourth quarter 2024 summary slides are available to download at our company's website, www.huahonggrace.com. Without further ado, I would like to introduce you to Mr. Daniel Wang, Executive Vice President and Chief Financial Officer. Thank you.

Good afternoon, everyone. Thank you for joining our Q4 2020 news conference. I'm pleased to formally introduce Dr. Pan Bai, who was recently appointed as our Executive Director and President. Dr. Bai is a highly respected veteran in the semiconductor industry, bringing over 30 years of leadership experience at Intel, followed by two years as CEO of Rong Semiconductor before joining Hua Hong. During his tenure at Intel, he served as Corporate Vice President for seven years. and the Vice President and the Director of Logic Technology Development for 14 years, playing a pivotal role in advancing the company's technological capabilities. Most recently, he guided Rome Semiconductor through a period of transition, implementing key initiatives to strengthen its operations and drive initiatives. Innovations. With his deep expertise, strategic vision, and proven leadership, Dr. Bai is well positioned to steer our company into its next phase of growth and success. President Bai will now provide an overview of our fourth quarter and full year performance. Afterward, I will walk you through our financial results in detail and offer guidance for the upcoming quarter. will then open the floor for Q&A session. With that, I turn call over to President Bai. Thanks, Daniel.

Good afternoon, everyone. Thank you for joining our earning call. I'm honored to be addressing you as the new executive director and the president of Hua Hung Semiconductor, and I'm excited to share our progress and discuss our future plans. I would like to take this opportunity to express my gratitude to the entire Hua Hung team for their hard work and dedication. I'm very proud to be part of such talented and committed team. We have a strong and solid foundation and I'm confident in our continuous growth and innovation going forward. We will make every effort to achieve our strategic goals and deliver greater value to our shareholders. Thank you for all your support, and I look forward to sharing more detail with you during this call. In the fourth quarter of 2024, revenue of Huahong Semiconductor reached US$539 million, with a gross margin of 11.4%, both in line with our guidance. For the full year, we achieved sales revenue of US$2.004 billion, with a gross margin of 10.2%. For Hua Hong Semiconductor, 2024 was a year with both challenges and opportunities. market demand was complex and varied. Recovery in the consumer field and rapid growth of some of the emerging application markets drove good performance for the company's image sensor and the power management platforms. However, demand for mid to high-end power devices needs improvement. Facing fierce market competition, the company maintained stable revenue and production volume. A quarter-by-quarter improvement trend in overall performance was achieved. Average capacity utilization rate throughout the year was approaching 100%, which was at a leading level for the global wafer foundry enterprises. The year 2024 was also pivotal for building on past achievements and forging ahead. Success construction and commencement of operation in our second 12-inch production line in Wuxi represents a significant milestone on the company's strategic development path. In 2025, Huahong Semiconductors will intensify R&D investment centered on new process platforms and iteration of each platform, expand capacity of the new production line, continue to foster strategic cooperation with key domestic and international customers, focus on evolving demands of critical emerging industry, and the future further solidify our leading position in the specialty process wafer foundry sector. the company will enhance efficiency and cost-reduction efforts, thereby creating greater value for our shareholders. Now, I would like to hand the call over to our CFO, Mr. Daniel Wang, for his comments.