ACM Research, Inc.

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

Good day, everyone. Thank you for joining us to discuss fourth quarter and fiscal year 2025 results, which we released before the U.S. market opened today. The release is available on our website as well as from Newswire Services. There is also a supplemental slide deck posted to the investor relations section of our website that we will reference during our prepared remarks. On the call with me today are our CEO, Dr. David Wong, our CFO, Mark McKechnie, and Lisa Fang, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide two. Let me remind you that 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 the 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 financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation and unrealized gain or loss on short-term investments. For our GAAP results and reconciliations 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 slides 14 and 15. Also, unless otherwise noted, the following figures refer to the fourth quarter and fiscal year 2025, and comparisons are going to be with the fourth quarter and fiscal year 2024. I will now turn the call over to David Wang. David?

Thanks, Stephen, and hello, everyone, and welcome to ACM's fourth quarter and the fiscal year 2025 earning conference call. I'm pleased with our first quarter results, which kept off a solid year of execution. Revenue grow 9% in the first quarter and 15% for the full year. We continue to execute well across our core business. We made a lot of progress with new product platforms, and we strengthen our position in China and globally. Investment in AI and data center infrastructure is reshaping the global semiconductor demand, shifting capital toward advanced logic, memory, and advanced packaging. The industry is looking to key supplier for new technology, many of which have not yet been invented. ACM differential technology portfolio has been aligned well with this high value process steps. and the market is how now the market is coming for us for solutions. A good demonstration is recent momentum with several key global customer outside the mainland China market that we announced in today's press release. First, we announced that we have delivered multiple single wafer cleaning tools to Singapore facility of our Asia-based foundries customer. This marks HCM's first tool in relation to Singapore, a key milestone for HCM. Second, we announced that we're receiving multiple orders for our advanced packaging tool from three global customers. This included orders for multiple wafer-level advanced packaging systems from our leading global OSEP customer base in Singapore. Deliver schedule for the first quarter of 2026. A panel-level advanced packaging vacuum cleaning tool from a leading global semiconductor packaging manufacturer based outside mainland China. Also scheduled for delivery in the first quarter of 2026. And multiple wafer-level packaging system from a leading North America-based technology customer with a delivery schedule later this year. Long on to our business result, please turn to slide three. For the fourth quarter of 2025, we delivered $244 million in revenue, upper 9%. For the year 2025, we delivered $901 million in revenue, upper 15%. Top line growth of 15% was a better than growth for the overall China WFC market, which Third party estimate as January flat for 2025. We consider this good result, especially since our 2025 revenue includes very little contribution from our new products. We expect a strong product cycle in 2026 from SPM cleaning and our furnace product as we made a very good technical progress for this new product across our customer base. We also made a good progress with our supercritical CO2 joint, track, panel level plating, and PCVD, which we expected to contribute some more in 2026, but more in 2027 and beyond. Shearman for 2025 were 854 million versus 973 million. Remember, 2024, Shearman increased 63% over the year So we had a tough compare. We also had some shipment for new product pushing to the 2026. Importantly, we expected 2026 shipment growth to be higher than our 2026 revenue growth. Growth margin was 41% for the fourth quarter and 44.5% for the full year. Q4 growth margin was slightly below our long-term target range of 42%. to 48 percent. We attribute the Q4 level to product mixing, including a few semi-critical product with a lower margin due to the competitive pressure, and also higher seasonal inventory provisions. We expect a lower gross margin to be temporary. We believe our new product ramp, combined with the product design and the supply chain will enable us to deliver the best product at a low cost. There's no changing to our long-term target model range of 42 to 48%. Moving on, we ended the year with a net cash of 845 million versus 259 million at the year end of 2024. This balance sheet provides the foundation to continue our effort to develop world-class tools for the leading global semiconductor manufacturers. Before I review our product, I will provide a view on competitive dynamics in China and how we will win in this environment. We have recently seen a flood of new local entrants to the China capital equipment industry. In many cases, there are five or more players going after a single point product, all with very similar design and performance. We believe we will compete and win in China market because number one, we have a differential technology with many product, almost the best in the world. Two, we have a deep portfolio of IP with strong protection in China. And three, our local customer demand the best technology in world to compete in a global market. Now I will provide detail on product. Please turn to slide four. Revenue from single wafer cleaning, Tahoe, and the semi-critical cleaning tool was $626 million, up 8% in 2025, and represented 69% of the total revenue. We now estimate our cleaning portfolio addresses 95% of the application and process step. And we are working on developing the remaining solution that will bring us to 100% in 2026. We believe ACM now has the widest coverage Canadian tool far more extensive as compared to all competitors their 8% year-over-year growth in 2025 include a very little contribution from our newer Canadian line we expected this new product including single waiver SPM power and into bubbling wet edge to contribute more meaningfully to our 2026 revenue as industry moves forward To more advanced nodes, we expect to increase demand for high-performance cleaning tools. The increased adoption of multiple patterning is driving higher layer counts, potentially impact use, and it demands more cleaning steps with a higher cleaning efficiency. We believe this plays right into ACM's strengths. For example, our proprietary end-tool bubbling etching technology is unique uniquely positioned in the market. We are seeing growth interest for advanced 3D NAT application where larger bubble size and the uniformity control would become more critical as industry moves to 300 layer and above. In SPM cleaning, customer recognize the advantage of our proprietary nozzle and the chamber design. We believe our platform outperforming leading competitors in small particle cleaning performance. We made a significant technical progress at the end of 2025 with our new SPM nozzle design. We achieved a 15 nanoparticle size count of under 20, which we believe is the best-in-class performance for the industry. Our unique nozzle design does not require any routine chambered-air water cleaning. This is a big deal for customer because you not only deliver the better cleaning environment for the chamber, but it also increase uptime of our equipment. As a result, I'm pleased to report today that we have received a strong repeat order for our SPM cleaning tools from major customer for delivering to Model 5 in 2026. We are also seeing very strong interest for our unique SPM technology for numerous global customer because they are not satisfied with the performance of their current plan of the record tool. Our super critical CO2 Joy tool integrate ACM proprietary cleaning IP while reducing CO2 consumption by approximately 40% as compared to their competitors. This result in process efficiency with low operation cost. We made a successful in-house demo for the multiple logic and memory customer at the end of 2025. We have already received a demo PO for evaluation tools from two customers for delivery in the middle of 2026. And we expect to deliver additional tools to multiple customers later this year. In mainland China alone, we estimate the incremental market opportunity for this next generation cleaning product is nearly $1 billion. We remain confident in our long-term objective to achieve approximately 60% of the market share in China cleaning market, and we expect cleaning to alter growth in China WFE this year and in the year ahead. We estimate our market share for ECP in China is now more than 40%. and we remain confident in our long-term goal to achieve 60% or more. Front-end tool represent about 70% of the mixing per year, including our MAP, MAP+, ECP3D, ECPG3 products. ECP back-end tool were about 30% of the mix, including our ECP8P product line. In Q4, we deliver our first ultra-ECP8PP horizontal panel-level electroplating tool to an industry-leading large panel fabrication customer. Our customer, ACM, prefers horizontal plating solution versus competitive vertical plating approach due to the much better plating film uniformity and much less cross-contamination between multiple plating chemicals. We expect a growing customer interest in our panel-level solution as industry looks for higher throughput and low cost to support advanced packaging solution for multiple large die size and HBM AI chips. As discussed earlier, we received order from three global customer for both wafer-level and panel-level packaging tools. Our first tool under various stage of evaluation of many customer. Revenue from furnace was relatively small in 2025, and we expect a more meaningful contribution in 2026. We made several technical breakthroughs for LPCVD and ALD and PALD in 2025. We see good demand across multiple applications, including high-temperature NEO, especially 1350-degree version LPCVD. ALD and PLD. We believe ACM differential design position us to capture meaningful market share. Revenue from advanced packaging, which is good ECP, but including service and the spell was up 45% in 2025 to 76 million and represent 8% of revenue. This includes coder, developer, etcher, stripper, scrubber, and vacuum cleaning tools. We believe ACM is the only company to offer a full portfolio of wet process tools and world-class plating products for the advanced packaging. We think the combination is very powerful. It provides ACM with valuable insight into the challenges of next-generation packaging as AI drives industry towards 2.5D and 3D integration. We are making solid progress with our new track and PCVD platforms. Last September, we delivered our high-throughput 300 WPH KIF track tool for evaluation at the key customer. We expect mass production qualification in 2026 for the tool. And we anticipate this will lead to demand from additional customers, including both standalone and full integrated systems in line with the ESR graphic tool. We believe our high throughput design positions this platform to compete effectively with the current supplier. In Q4, we delivered our first ultra lethal BK system. This milestone represents the first customer deploy of our tracker series following early demonstration and evaluation. It also marked our entry into the display panel market, a new segment that requires high-volume manufacturing and strong performance stability. We anticipate to develop our proprietary PECVD platform. Our design has three chucks per chamber, which we believe is the only one in the world. This provides flexibility for a wide range of our process with the same hardware. We feel good about our positioning as the team works through the technical detail with a field tool in our Lingang mini lab, running wafer tasks and a custom demo wafer. We expect to ship multiple EVA tools in the near term. In summary, we innovation, our innovation engine contribute to drive a differentiated solution across a broader growing portfolio. As AI drives a more complex semiconductor process, customers are turning into ACM as a trusted partner to help solving their increasing challenges. Next, let me provide update on our production facility. First, on Lingang, please turn to slide eight. Our Lingang production and R&D center is now our primary production center. The first building is in volume production, and the second provides capacity for the future expansion. Together, the two facilities can support up to $3 billion in annual output. During 2025, we made good progress on our mini-line and lingo. We have enhanced our process development capability and now support on-site customer evaluation in fab-like conditions. Our mini line including ACM tools and tools from other player and metrology tools. We believe the mini line will accelerate our internal product validation, shorten R&D and qualification cycle, and strengthen collaboration with the key customer as we introduce next generation platforms. Next, our Oregon facility, please turn to slide nine. We are accelerating investment in Oregon. with the operation expected beginning in the second half of 2026. This facility will allow customers to evaluate our technology and to test their wafer locally, and it will serve as our initial base for production in the United States. Our global customers are encouraging by our commitment, which we believe will help them to choose ACM as a key supplier to scare production. We remain very pleased by the success of ACM Shanghai team, which continues to be a key supplier to the semiconductor industry in Asia. ACM Shanghai has also proven to be a great source of capital and financial flexibility for ACM. In September 2025, ACM Shanghai completed a private offering of an ordinary share, generating approximately $623 million in net proceeds. In February 2026, we complete the sale of approximately 4.8 million ACM Shanghai shares at 160 RMB per share, generating approximately $111 million in gross proceeds. ACM Shanghai also has been a good source of dividends in 2023, 2024, and 2025. We received dividends, net of tax of $19.2 million, $28.5 million, and $29 million, respectively. Our major ownership in Shanghai remains a strategic asset. It enhanced our financial flexibility and supported disciplined execution as we continue expanding globally. Taken together, our expanding product portfolio increased manufacturing capacity and the strength in capital position give us confidence in our long-term strategy. Now turn to our outlook for the full year 2026. Please turn to slide 10. In middle January, we introduced our 2026 revenue outlook in a range of $1.08 to $1.175 billion. This implies 25% year-over-year growth at the middle point. iterate this outlook today since our from founding in california in 1998 and the establishment of acm shanghai in 2005 we're building a globally competitive semiconductor equipment company grounded in innovation and differential technology our leadership in cleaning and electroplating created a strong foundation and we are now expanding across furnace track and pcbd as we broaden our multiple product portfolio in asia we are recognized as a leader in waiver cleaning and plating and we are in engaging with a global customer across us and europe with continual progress across spm tahoe supercritical seal to dry furnace track pcbd and the panel level packaging we believe we are entering a new phase of a product cycle that we are driving for standard growth We have the customer, the product, the capacity, and the capital to execute our global business plan, and we remain committed to our long-term target of $4 billion in revenue. Now let me turn the call over to our CFO, Mark, who will reveal details of our first quarter and full year result. Mark, please.