ACM Research, Inc.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the ACM Research Second Quarter 2025 earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we're recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Mr. Stephen Palao, Managing Director of the Blue Shirt Group. Stephen, please go ahead.

Thank you. Good day, everyone. Thank you for joining us to discuss Second Quarter 2025 results, which we released before the US market opened today. The release is available on our website, as well as from our Newswire services. There is also a supplemental slide deck posted in the Investors section of our website that we will reference during our prepared remarks today. On the call with me today are our CEO, David Wang, our CFO, Mark McKechnie, and Lisa Feng, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide two. Let me remind you that the remarks made during this call may include predictions, estimates, or other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under risk factors and elsewhere in ACM's filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements. Certain other financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation and unrealized gain and loss on short-term investments. For our GAAP results and reconciliation between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website, and to slide 13. Also, unless otherwise noted, the following figures refer to the second quarter of 2025, and comparisons are with the second quarter of 2024. I will now turn the call over to David Wang.

David? Thanks, Stephen. Hello, everyone, and welcome to ACM Research, second quarter, early conference call. We deliver another quarter of good results with strong sequential growth in both revenue and achievement, reflecting continued progress across our expanding product portfolio. We saw momentum from our SBN, PAHO, Plating, and the Furnace tool, which are helping expand our accessible market and gain market share. We also continue to make progress with new platform, including track, PCVD, and panel-level packaging tools, which represent important long-term growth drivers. We recently announced major upgrade to our Ultra-C WB wet bench cleaning tool. The technology integrate ACM pattern-pending nitrogen bubbling technology to generate a large-size bubble with good bubble density uniformity and enhance the etching rate uniformity in a 3D structure across the wafer. I'm happy to announce that we have received repeat orders for the new Ultra-C WB wet bench tool with our proprietary end to bubbling technology. We expect a good achievement for this tool this year and next. The technology is also adaptable to our Ultra-C PAHO platform with a significant application potential for manufacturing advanced 3D net, 3D DRAM, 3D logic devices. We believe this new technology is another example of ACM leadership in cleaning tools that will be good for our customers and support our growth initiatives. Our nitrogen bubbling technology tool adds to early breakthrough for PAHO and other recent product launching, such as our high-temperature SBN tool and the panel-level packaging tool for flux cleaning and the bubble etcher. Taker, together, this development reinforce ACM differentiated leadership in wafer cleaning and give us confidence that we will continue to gain share in a critical segment. We remain committed to deliver innovative new products, such as this, to enable our customer to meet next generation of semiconductor manufacturing challenges as demanded by the artificial intelligence transformation. Now, onto our business results. Please turn to slide three. For the second quarter of 2025, we believe revenue of $215 million, upper 25% sequential, and 6% -over-year. Shilin were $206 million, upper 32% sequential, up 2% -over-year. Growth margin was at 48.7%, exceeding our target range of 42 to 48. We ended the quarter with a net cash $206 million. Now I will provide a detail on product. Please turn to slide four. Revenue from single-wafer cleaning, PAHO, and semi-critical cleaning tools grow 1% and represent 72% of total revenue. We believe a -to-bottom cleaning portfolio put us in a strong position. We continue to make a technical improvement and the customer progress with our SPM tool. Our high-temperature SPM system features ACM proprietary nozzle design, which prevents both liquid SPM and acid mist spat out of the chamber during the SPM process. This improving particle performance reduce chamber preventative maintenance cleaning frequency and enhances system uptime. We have achieved better particle control over average particle count, less than 10 at this 26-nanoparticle size. We also believe it will be show better performance than competitors offering at a particle size more than 17 and 15 nanometers. In Q2, we gave SPM and PAHO tools to several more customers as we continue to gain market share in SPM space. Revenue from ECP, furnace, and other technologies grow 23% and represent 22% of total revenue. ECM recently delivered an ECP tool to a customer, which included the company's 1500th electroplating chamber shift. We are seeing a strong momentum for ECP tool in advanced packaging, driving by demand for both front and back end plating system. We also see growth interest in our new ultra-ECP APP panel-level horizontal plating system. As the industry shifts from wafer to panel-level packaging to support the next generation AI chips, our unique horizontal plating approach, which delivers superior uniformity than vertical panel plating solution, has attracted attention from the major players. Our furnace product are building momentum supported by strong customer interest and expanded pipeline of evaluation and engagement. We see good demand across multiple applications, including high-temperature NEO, especially our 1200 50 degree C degree version, high-temperature NEO furnace, and also LPCVD, oxidation, and ALD. We believe ECM differentiated the design position us to capture meaningful market share. Revenue from advanced packaging, which is exclude ECP, but including service and the spell, was up 20% and represent 6% of revenue. We are making good progress with a new track and a PCVD platform. Our proprietary PCVD platform with three tracks for chamber give us the flexibility to support a wide range of process with the same hardware. We feel good about our positioning with a plan to deliver more better tool to our friendful of the customer this year and look for revenue contribution in 2026 and beyond. For track, we're in the final development phase of our 300 wafer per hour inline KF tool. And we expect to deliver the better tool to a key customer in the current quarter. To close on product, our roadmap including incremental contribution from Tahoe SPM and the furnace tool in 2025 with the panel level packaging, track and PCVD tool expected to drive growth in 2026 and beyond. Please turn to slide six. Our first half result reflects solid execution across our product portfolio. We remain confident in the year and our long term opportunity in China. As a result, we have increased our long term revenue target for mainland China to 2.5 billion versus our previous target of 1.5 billion. The increase is based on two main factors. First, we now assuming a long term China WFE market size of a 40 billion US dollar versus our prior assumption of a 30 billion US dollar. This is based on updated by third party global market forecast and also our view of the China semiconductor industry. Second, we have adjust our market share targets for product group as follows. We have raised our market share target for both cleaning and plating to 60% versus the 55% prior. This is the result of our current assessment of a customer traction and increased confidence for share gain for new product. For furnace, PCVD and track, however, we're keeping our target at the 15% and 10% level. Of course, we aspire to achieve better result, but need more time in the market before we will formally adjust the target. Moving to the bottom of the chart, we maintain our revenue target for the rest of the world at 1.5 billion. We believe ACM focus on differentiated water cost product combined our global sales and the service team will deliver results with our global customer. As an example, we have a plan to deliver a server tool to the US in the third quarter. We remain engaged with our major US customer with active validation across a range of the cleaning process step as we continue to work towards our global, our goal for production orders. Bottom line, we have raised our long-term revenue target to 4 billion versus our prior target of 3 billion. Now I will provide update on ACM Shanghai's proposed the capital race in China. ACM Shanghai recently received approved from the CSRC to proceed with its proposed the follow on offering on the stock market to raise up to 620 million US dollar by selling less than 10% of your total share. The capital racing is a leadership is intended to help accelerator our updated revenue target and added to the long-term foundation to support our effort to scale up product to major global customer. As the majority shareholder, we view their proposed transaction as an important step in strengthening our position in the China market and it demonstrates the long-term value of our ownership stakes. Next, let me provide the update of our production facility. First is Lingang, please turn to slide eight. As I discussed last quarter, our state of art, Lingang production and only center is nearly completed. The site including two production building with a first now in production and a second available for future expansion. Each of the two production building can supporting up to 1.5 billion of annual production capacity combined. We believe we can eventually support three billion of a production at Lingang for the from the two manufacturer building. Next, our Oregon facility, please turn to slide nine. Recall we purchased a 40,000 square feet facility last year. We made a good progress during the second quarter and we have began upgrade on our customer demo R&D lab. We believe this will help our effort with the customer in the region as it will later then test wafer locally on ACM tool. We also are moving forward with a plan to add production capacity to Oregon facility. We target the middle 2026 for the demo lab and production to commerce operations. Our investment Lingang and Oregon are key enable of our growth strategy, expanding our capacity, strengthening customer support and prepare us to scale globally. Now I will provide our outlook for the full year 2025, please turn to slide 10. We're maintaining our 2025 revenue outlook in the range of 815 million to 950 million. This is implying 15% year over year growth at a middle point. In close, our focusing remains on delivering differentiated enabling technology that solve our global customer most critical process challenges. Now let me turn the call over to our CFO Mark who will reveal the details of our second quarter results. Mark, please.