Hua Hong Semiconductor Limited

Ladies and gentlemen, thank you for standing by. Welcome to Huahong Semiconductor Four Quarter 2025 Earnings Conference Call. Today's call is hosted by Dr. Peng Tai, Chairman and President, 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 receive instructions on how to participate. The earnings press release and fourth quarter 2025 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. Please go ahead.

Good afternoon, everyone. Thank you for joining our Q4 2025 Earnings Conference. Today, we will first have Dr. Pan Bai, our chairman and president, provide an overview of our fourth quarter and the full year performance. I'll then take you through our financial results in detail and offer guidance for the upcoming quarter. We'll then open the floor for a Q&A session. With that, I turn the call over to Dr. Bai.

Thank you, Daniel. Good afternoon, everyone. Thank you for joining our earnings call. Fourth quarter 2020 sales revenue for Hua Hong Semiconductor reached an all-time high of $659.9 million, with a gross margin of 13% for the quarter. both in line with our guidance. For the full year of 2025, the company reported sales revenue of $2.4 billion and a gross margin of 11.8%, both achieving year-on-year growth and meeting management expectations. Against the backdrop of the global semiconductor market being driven by demand for AI and related products, coupled with a recovery in consumer demand led by the domestic market, the company maintained full capacity operations throughout the year at an average capacity utilization rate of 106%, which ranked among the leading levels in the foundry industry. By optimizing product mix, reducing costs, and improving operational efficiency, we achieved strong performance across various specialty technology platforms, especially in standalone NVM, and the power management area, effectively supporting the company's revenue growth and margin expansion. In 2025, the company continued to advance its strategic plan for capacity expansion. The first phase of capacity construction for the second 12-inch production line in Wuxi, we call Fab 9, exceeded expectations for completion, and the Shanghai 12-inch manufacturing base Fab Five acquisition progressed as planned. Looking ahead, the company will maintain strong focus on developing world-class specialty technology platforms with innovation and through rapid generational iteration, while deepening collaborations with strategic customers both domestically and internationally. We remain confident in our ability to size growth opportunities amid changes in the global semiconductor industry and are striving to meet shareholders' long-term expectations. Now, I would like to hand the call over to our CFO, Mr. Daniel Wang, for his comments.