Hua Hong Semiconductor Limited

Ladies and gentlemen, thank you for standing by. Welcome to Hua Honggray Semiconductor Second Quarter 2026 Earnings Conference Call. Today's call is hosted by Dr. Peng Bai, Chairman and President, and Mr. Daniel Wang, Executive Vice President and Chief Financial Officer. Please be advised that your dialing are in a listen-only mode. However, at the conclusions 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 second quarter 2026 summary slides are available to download at our company's website, www.huahong.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 Q2 2026 earnings conference. Today we will first have Dr. Pampai, our Chairman and President, provide an overview of our second quarter performance. I'll then take you through our financial results in detail and then offer guidance for the upcoming quarter. We'll then open the floor for a question and answer session. With that, I turn the call over to Dr. Bai.

Thank you, Daniel. Good afternoon, everyone. Thank you for joining our earnings call. We continue to improve our operational performance in the second quarter of 2026, with profitability strengthened further. Revenue hit a record high in the US 717 million, representing a year-on-year increase of 26.8%. Growth marking spurred at 16.5%, up 5.6 percentage points year-on-year. Both metrics beat guidance and achieved sequential growth. Net profit attributable to shareholders of the current company amounted to U.S. $38.6 million, posting substantial growth, both year-on-year and quarter-on-quarter. Powerhome Grace maintained a high fat utilization rate in Q2, delivered growth across all process technology platforms, especially the standalone and embedded non-volatile memory products. The improved business performance came as a result of rising volumes and prices. Since the beginning of the year, the global semiconductor industry has witnessed a strong AI-driven upturn in demand. First, of memory IC products, then spreading to logic and analog IC products that are associated with AI applications. And especially technology funding serving a broad marketplace, we have clearly seen the overall positive impact on our business by the AI way. We have also seen diverging in intensity and strength of market demand, depending on end-user market segments. Amid the rapidly evolving industry landscape, our strategy of steady capacity expansion, ongoing specialty technology upgrades, and continuous capacity product mix optimization will allow us to capture gross opportunity to provide substantial improvement in our business results. Huahong Grace has recently obtained registration approval from the China Security Regulatory Commission for our acquisition of Huali Microelectronics. Integration of the acquired asset into Huahong Grace will strengthen our technology's portfolio, increase our operational economy at scale, and improve our profitability, injecting fresh momentum into our future growth. Now, I would like to hand the call over to our CFO, Mr. Daniel Wang, for his comments.