Hua Hong Semiconductor Limited

Ladies and gentlemen, thank you for standing by. Welcome to Hua Hong Semiconductor First Quarter 2025 Earnings Conference Call. Today's call is hosted by Dr. Pang 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 earning press release and first quarter 2025 summary slides are available to download at our company's website, www.huahongrace.com. Without further ado, I'd 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 Q1 2025 earnings conference. Today we will have Dr. Pham Bay, our Executive Director and President, make some remarks on our first quarter performance. Afterward, I will walk you through our financial results in detail and offer guidance for the upcoming quarter. We will then open the floor for a Q&A session. With that, I turn the call over to President Bay.

Thank you, Daniel. Good afternoon, everyone. Thank you for joining our earning call. First quarter, 2025, sales revenue for Hua Hong Semiconductor was $541 million, and the gross margin reached 9.2%, both in line with our guidance. Overall, performance has continued the trend from 2024. Sales revenue maintained steady growth. The product portfolio has been continuously optimized. And the utilization rate has remained at the full capacity. The capacity ramp up of the second 12-inch production line is in line with our expectation, which has positive implications for subsequent revenue growth, product portfolio optimization, and enhancement of the company's core competitiveness. From market perspective, customer demand and competitive landscape have essentially continued the trend since the second half of 2024. However, due to recent changes in the global environment and related policies, the entire semiconductor industry will face greater uncertainties in terms of the customer demand, procurement costs, and the supply chain landscape. In the face of such uncertainties, Hua Hong Semiconductor would adhere to its strategy of continuously accelerating effective capacity expansion enhancing its R&D capability, actively exploring marketing opportunities, timely managing possible disturbances from the supply chain, intensively reduce costs, and improve efficiency to reduce risk while achieving better performance. Now, I would like to hand over the call over to our CFO, Mr. Daniel Wang. for his comment.