Hua Hong Semiconductor Limited

Ladies and gentlemen, thank you for standing by. Welcome to Hua Hong Gray Semiconductor's third 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 dial-ins are in listen-only mode. However, at the conclusion of the management's 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 third quarter 2026 summary slides are available to download at our company's website, www.huahonggrace.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 Q3 2026 Earnings Conference. Today we will first have Dr. Bai, our Chairman and President, provide an overview of our third quarter performance. I then take you through our financial results in detail and offer guidance for the upcoming quarter. We then open the floor for question and answer session Since we have successfully complete the acquisition of Huali Microelectronics in Q3, Huali Microelectronics is now formally consolidated into the listed company's financial statements. But for your ease of reading and analyzing, we still provide data excluding Huali this time. We'll discuss detail during the call. I now turn the call over to Dr. Bai.

Thank you, Daniel. Good afternoon, everyone. Thank you for joining our earnings call. In the third quarter of 2026, as Daniel said earlier, the company completed acquisition of Huali Microelectronics, bringing the year-long effort to a successful close. As a result, All financial reports now include Huali Microelectronics, unless otherwise specified. In the quarter that just passed, Hualong Grace achieved a revenue of 987.1 million US dollars, representing a 19.9% year-on-year increase on a restated comparable basis. Excluding Hualun Microelectronics, revenue was $803.4 million U.S. dollars, above the upper end of last quarter's guidance of $770 to $780 million U.S. dollars. Gross margin stood at 24.6%, up by 7.6 percentage points year on year. Excluding Hualun Microelectronics, gross margin was 19.9% above the upper end of last quarter's guidance of 16 to 18%. Profit attributable to shareholders of the parent company was $123.4 million. Revenue hit an all-time high by a large margin and all key financial metrics delivered significant improvement year-on-year and quarter-on-quarter. During the quarter, the company maintained a high FAP utilization rate, witnessed a steady upward trend in shipments and average selling prices, and continued to execute capacity expansion projects on schedule. Integration of Huali Microelectronics has been proved financially accredited and operationally synergistic. The 12-inch business now accounts for 70.7% of total revenue for the company. Artificial intelligence related products continue to drive global semiconductor market demand. The industrial automotive markets are also gradually improving. As a specialty technology founder with a broad technology portfolio, HuaHong Grace has seen increasingly higher demand for MCU, flash memory, power management, and Power to Square products with correspondingly tight supply in some segments, even as we continue to expand capacity. We expect the pattern of rising volume and prices to continue for some time. The company will remain laser focused on operational excellence and delivering value for our shareholders. Now, I would like to hand the call over to our CFO, Daniel Wang, for his comments.