ACM Research, Inc.

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the ACM Research Second Quarter 2026 Earnings Conference Call. Currently, all participants are on a listen-only mode. Later, we will conduct a question-and-answer session, instructional profile 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. Stephen Pillay, Managing Director of the Blue Shirt Group. Stephen, please go ahead.

Good day, everyone. Thank you for joining us to discuss second quarter 2026 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's also a supplemental slide deck posted to the investor 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 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 in this call will be on a non-GAAP basis which excludes stock-based compensation and unrealized gains and losses 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 32. Also, unless otherwise noted, the following figures refer to second quarter 2026 and comparisons are with the second quarter 2025. So with that, I will now turn the call over to David Wang. David?

Thanks, Steven. Hello, everyone, and welcome to ACM's second quarter 2026 earnings conference call. The June quarter marked another period of strong execution for ACM research. Revenue and achievement increased 36% year-over-year. Revenue growth was led by our ECP and Advanced Packaging Product category, both of which increased more than 150% year-over-year. This strong performance reflects the progress we are making in transforming ACM into a broader Multi-Product Semiconductor Equipment Company. In June of this year, third-party researchers Frost and Sullivan published a report called Global and China Semiconductor Equipment Market Research. They now estimate the global semiconductor equipment market exceeded $140 billion in 2025 and will grow to more than $200 billion by 2029. They also estimate the mainland China market exceeding $50 billion in 2025 and the world growth to more than $80 billion in 2029. To fund our global operation, we have recently strengthened our balance sheet. ACM now has more than $1 billion of net cash globally. This includes approximately $300 million in the U.S. following our $150 million registered direct offering completed this past May. This financial strength provides a solid foundation to support our mission to become a key supplier of world-class capital equipment to the top major product of semiconductors. We believe AI is driving one of the most significant technology transition the semiconductor industry has experienced in many years. As chip complexity and chip size continue to increase, traditional wafer-level packaging approaches are reaching practical limits, creating demand for entire new manufactured technology across advanced packaging. ACM predicted a shift from wafer-level to panel-level packaging more than five years ago and began investing early in horizontal panel-level plating and other panel-level wet process technology. We believe the market is now coming to us and has begun to validate those investments. Today, I'm pleased to announce that we have received orders from two advanced packaging customers for our panel-level horizontal plating tool, addressing both 510x515 mm and 310x310 mm panel size. One is a production order from an existing customer in mainland China, and the second one is the evaluation system for new customers in Asia. We believe ACM will be among the first company to deliver horizontal panel level plating system to multiple customers across multiple regions. Our proprietary horizontal plating architecture is a key differentiator delivering strong or superior plating uniformity while addressing the demand process requirement. of Next Generation AI Packaging. This order is an important milestone for what we believe could become a significant long-term growth opportunity. I'm pleased to report today that our order book has been quite strong. For the first half of 2026, orders increased 105% year over year. This is a mix across all product category with a heavier emphasize on some of our new product. As with the prior years, ACM Shanghai plans to release backlog figure as of the September 30 in early October. Thanks to good execution by our operation team, we continue to expect a shipment across each of our category to grow faster than revenue. We remain confident in our growth target for 2026 and beyond. For 2026, we see a healthy backdrop for China WFE as our customers continue to scale their production capacity. We expect an extra boost for our business from a few product cycles, including our SPM and furthers to enable us to outgrow the China WFE. Beyond this year, we estimate that our newer platform, including track, PCVD, and horizontal panel-level plating will proceed for evaluating phase into a commercialization phase, resulting in production orders and drive our growth for years to come. In summary, we see 2026 as a big year for new product and another year of solid growth for ACM. Now onto our business result. Please turn to slide three. Revenue for the second quarter was $293 million, upper 36%. Shiman for the second quarter was $282 million, upper 36%. Gross margin was 46%, and operating profit margin was about 19%. And we ended the quarter with a gross cash of $1.4 billion. Billion, and a net cash of $1.0 billion. Now I will provide detail on product. Please turn to slide four. Revenue from single wafer cleaning, pothole, and semi-critical cleaning tool was $133 million, down 14%, and represent 45% of revenue. We believe ACM has built industrial products cleaning product portfolio. Our product in this category including Saftibo, Tahoe, Backside Clean, Solvent Clean, Bevel Clean, Scrubber, and Wet Etcher, and our proprietary single wafer hot SPM technology. In May, we present our proprietary hot SPM cleaning technology in 2026 surface preparation and cleaning conference. This system demonstrate fewer than 15 particles performance at a 15-nano particle size. Our proprietary nozzle design prevents acid mist and the chemical splashing outside chamber during the hot SPM process. And this, therefore, does not require periodical TI water chamber outside cleaning. For customer, this means less maintenance, better uptime, and a more stable particle performance. We believe this represents the best performance in the industry. Our SPM platform is well suited for the advanced logic and memory, while cleaning requirements are becoming more demanding. Today, we also announced new capability for Ultra-C Tahoe, expanding it into a broader wet process platform. Tahoe is built on our patented hybrid architecture that combines batch SPM process, and a single wafer cleaning. We have added a wet etching and monitoring wafer reclaim application to the Tahoe platform. This integrates multiple processes that had previously required a separate standalone tool into one Tahoe platform. The expanded platform has been adopted by multiple leading semiconductor manufacturers. ACM will continue to try world-class process performance with a focus on ESG benefit to help make advanced semiconductor manufacture more efficient and more sustainable. We have shipped a handful of single wafer SPM tools in the first half of this year, and we are on track to ship more than in the second half of this year for are more than 20 by the end of this year. As a reminder, we estimate that SPM represents about one-third of the total cleaning market. We have had very little revenue today for the SPM tool, and with this major product cycle, we expect our overall cleaning revenue to rebound as our customers qualify the first tool and we grow our repeated shipment. Revenue for ECP, furnace, and other technology grow 168% and represent 44% of the revenue mix. Growth was driven by momentum on both front and back end plating tool. In logical device, we have benefited from larger die size and steady increase from higher interconnector layer counts. In memory device, we have benefit as HBM packaging demands higher level of DRM stacking and thus more copper process steps. During the quarter, we shipped our 2000th electroplating chamber. This follows our 500th chamber shipment in 2022 and our 1500th chamber shipment in 2025. This shows how quickly our installed base has grown and how broadly customers are adopting our technology in volume production. We had a larger contribution from furloughs in the quarter, but it's still just a small part of our overall revenue mix. We continue to improve the technology breakthrough across key applications, including LPCVD, oxidation, thermal ALD, PALD and ultra-high temperature anneal. Revenue from advanced packaging, which excludes ECAP, but including service and parts, was up 153%. This includes coasters, developers, etchers, strippers, scrubbers, and vacuum cleaning tools, supporting a broad range of advanced packaging applications. We are particularly pleased with our global progress here. active deployment in Singapore and North America across a range of these tools. We are making good progress with our new track and PCVD platform. We remain confident that we have the right approach for our PCVD and track platform and we have made significant progress in 2026. Our proprietary one chamber, three chucks Architecture for PECVD performed well in our Lingang mini lab early this year. We shipped the secondary tool to our new customer in Q1, and we anticipate this qualification by year end. The story is similar to our track platform. Indeed, our high throughput KIF track tool is progressing through customer evaluation. and we anticipate production qualification by year end. We see strong interest in both standalone tools and configured to integrate with the scanners. For both DCVD and TRAC, we are hard at work with the development effort with several key customers. We are optimistic that our tool performance can meet or exceed our customer requirements and result in production order in the near future. Please turn to slide five. The quarter we have update our market assumption with the latest WFE data from the report one, report I mentioned earlier. This result in a $1 billion increase to ACM. It's a global stamp about $22 billion. Please turn to slide six. There are no changing to our long-term revenue target of $4 billion. This is still based on market share assumption for each of our product category, which gets us to about 2.5 billion from mainland China and 1.5 billion from the global market. We adjusted some our assumption based on China WFE now and about 50 billion. We continue to assuming a robust WFE environment over the next several year for the global market. The magnitude and timing of our growth will be impacted by the overall spending trajectory of our customers and our market share gains. Next, let me provide an update on our production facilities. First, on Ningdao, return to slide 8. The first building is in volume production and we plan to open the second building later this year. Together, the two facilities can support up to $3 billion in annual output. With our strong order book, we are fortunate to be ready to scare the second facility. Next, our Oregon facility pretend to slide nine. In Oregon, we remain on track for a US-based demo center with multiple tools in world-class cleaning room environment starting later this year. This is important for our global customers, and we believe it will help us to secure production orders. Our global business is beginning to scale. As we said last quarter, we expect to have more than 20 tools installed at the customer sites outside mainland China by the end of 2026. This includes about 10 customers in five countries. It is clear that leading global chip makers can benefit from our innovative product. Although it is still early day for our global deployment, our engagement are growing and we are confident that our global sales and the service team will deliver good results. Now I will providing our outlook for full year 2026. Please turn to slide 10. Based on our first half performance, and the improved visibility, we have reached the middle point of our full-year revenue guidance. We now expect a full-year 2026 revenue of $1.125 billion to $1.175 billion versus the prior range of $1.08 billion to $1.175 billion. This new range implies 25% to 30% year-over-year growth. We also expect the shipment growing Gross to outpace revenue growth in 2026. Now let me turn the call over to our CFO, Mark, who will review details of our second quarter results.