Summary of Semiconductor Industry Conference Call Industry Overview - The conference call focuses on the **semiconductor industry in China**, particularly in the context of the **CHIPS Act** and its implications for capital expenditures (capex) and technology development [1][4][5]. Key Points Capital Expenditures (Capex) - China's semiconductor capex is projected to increase to **US$43 billion to US$46 billion** for the period **2025-2030**, up from previous estimates of **US$40 billion to US$44 billion** [4][16]. - A strong investment of **US$41 billion** was recorded in **2024**, representing a **19% year-over-year increase** [4][16]. - The investment focus is expected to shift towards **memory** and **advanced node technologies**, with local suppliers anticipated to contribute **26%** of wafer fabrication equipment procurement in **2025**, increasing to **36%** by **2030** [4][16]. Demand and Supply Chain Migration - The semiconductor supply chain in China is undergoing significant migration, with expansions in **CIS**, **automotive chips**, and **AI chips** [5]. - Local foundries and OSATs are enhancing their manufacturing technologies, driven by structural technology innovations and better services [5]. Lithography Demand - An estimated **2,261 additional lithography systems** will be required by **2035** to meet the projected chip demand in China, necessitating an investment of approximately **US$110 billion** [6][39]. - The breakdown of required lithography systems includes **212 EUVs**, **843 immersion DUVs**, and **2,564 dry DUV/UV systems** [39]. Market Dynamics - The semiconductor market in China is expected to see a **5% to 1%** growth in capex from **2025 to 2030**, driven primarily by foundries and memory players, which will account for about **80%** of the capex [16][22]. - Chinese semiconductor manufacturers are projected to capture **17%** of the semiconductor demand value in **2024**, increasing to **37%** by **2030** [33]. Equipment Market - The Wafer Fabrication Equipment (WFE) market in China is expected to reach **US$41 billion** by **2026**, with local suppliers increasing their market share from **17%** in **2024** to **36%** by **2027** [28][32]. - The growth in WFE revenues is attributed to the increasing semiconductor spending, with China expected to account for **37% to 38%** of global WFE spending in **2025-2027** [28]. Implications for Global Suppliers - US suppliers are expected to maintain a strong market share in China's WFE spending, despite facing challenges from local manufacturers and export controls [45]. - Japanese SPE manufacturers may see a gradual decline in their market share in China, although they will still benefit from the high capex environment [49]. Additional Insights - The semiconductor industry in China is characterized by a robust local ecosystem supported by ongoing technology development and a large home market [1][4]. - The demand for lithography systems is critical for meeting future chip production needs, highlighting the importance of investment in R&D and local manufacturing capabilities [6][39]. This summary encapsulates the key insights and projections regarding the semiconductor industry in China, emphasizing the growth in capital expenditures, the demand for advanced technologies, and the evolving dynamics of the supply chain.

Core Viewpoint - The A-share market is experiencing a significant surge driven by the AI industry chain, with the ChiNext Index rising by 2.4% and various sectors such as semiconductors and CPO witnessing substantial gains, indicating a technological revolution in the capital market [1][3]. Industry Insights - Over 40% of the 1.7 trillion yuan trading volume is directed towards the AI industry chain, with leading companies like NewEase Technology hitting the 20% limit up due to a 42% increase in capital expenditure from North American cloud giants, with orders extending to 2026 [3]. - The ChiNext AI index has surged by 68% since April, reflecting real industrial breakthroughs rather than speculative hype, as evidenced by companies like SMIC investing nearly 15% of their revenue in R&D and ranking among the top three globally in wet etching equipment shipments [3]. - The Ministry of Industry and Information Technology has recently released the "Artificial Intelligence +" policy, which supports AI chip development and intelligent computing infrastructure, effectively boosting the tech industry [3]. - Inspur Information holds over 45% market share in AI servers, with orders from major players like Tencent and Huawei expected to sustain growth for the next three years [3]. - Rare earth materials are becoming shadow stocks in the tech sector, with companies like Northern Rare Earth hitting the limit up due to the essential role of permanent magnet materials in AI robotics [3]. Investment Directions - For medium to long-term investors, three key areas to focus on include: - Semiconductor equipment, with SMIC's Ultra C series cleaning equipment reducing chemical consumption by 75%, showcasing true domestic replacement capabilities [4]. - AI computing infrastructure, exemplified by the low PUE value of 1.04 for the liquid-cooled data center from Zhongke Shuguang, which is 30% more energy-efficient than traditional facilities [4]. - The robotics supply chain, with significant domestic replacement opportunities for core components like reducers and sensors as Tesla's Optimus prepares for mass production [4]. - The investment in tech stocks is characterized as a marathon rather than a sprint, with historical context provided by the 554% rise in the ChiNext during the 2012 bull market driven by the smartphone and mobile internet revolution [4].

Core Insights - ACM Research, Inc. (NASDAQ: ACMR) has experienced a 24% increase in stock price following significant fluctuations in market sentiment [1] - The stock previously dropped by 22% after the release of Q2 earnings, which showed topline growth below analyst expectations [1] Company Analysis - The recent performance of ACMR highlights the volatility in the market, particularly for mid and small-cap stocks [1] - The company's earnings report indicated challenges in meeting growth expectations, which can impact investor confidence and stock performance [1] Market Trends - The analysis emphasizes the importance of thorough research and understanding of financial statements and market trends to identify undervalued investment opportunities [1]

Group 1: Technology Sector Overview - Information technology is one of the top-performing sectors in 2025, but returns are unevenly distributed across the tech universe [1] - The Magnificent Seven, including major firms like Apple Inc. and Alphabet, have performed in line with the broader market, with the Roundhill Magnificent Seven ETF returning 9.6% compared to 9.3% for the S&P 500 year-to-date [2] Group 2: Indie Semiconductor Inc. - Indie Semiconductor, a specialized semiconductor maker for the automotive industry, has a market cap under $1 billion and reported a non-GAAP gross margin of 49.1% in Q2 2025 [3][4] - The company is preparing to scale production of its 77 GHz radar chipset and has found success with its LXM laser product, which could address a market worth up to $5 billion by 2030 [4] - Five out of six analysts have given indie a Buy rating, with a 12-month stock price forecast of $5.90, indicating a potential upside of 37.85% from the current price of $4.28 [5] Group 3: ACM Research Inc. - ACM Research, which specializes in chipmaking equipment, reported a revenue increase of over 6% year-over-year to over $215 million, driven by sales of its Ultra C WB wet bench tool [7][8] - The company has nearly doubled its long-term revenue forecast for its Chinese business to $2.5 billion, anticipating significant growth in the semiconductor space [8] - ACM shares have risen almost 14% year-to-date, with a consensus price target of $26.33, suggesting further upside potential [9] Group 4: Arteris Inc. - Arteris focuses on on-chip interconnect fabric technology and reported Q2 2025 revenue of $16.5 million, beating expectations despite a GAAP net loss of $9.13 million [10][11] - The company has a market cap under $400 million and is expected to have a significant impact in the AI chip industry, with all three analysts rating its shares as a Buy [12] - Analysts project a 12-month stock price forecast of $15.00 for Arteris, indicating a potential upside of 63.40% from the current price of $9.18 [10]

PART I. FINANCIAL INFORMATION Contains the company's unaudited interim financial statements, management's analysis, and market risk disclosures [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated balance sheets, statements of income, equity, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the company's financial position, showing significant growth in total assets and borrowings Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,645,653 | $1,483,379 | | **Total Assets** | **$2,039,715** | **$1,855,721** | | **Total Current Liabilities** | $671,012 | $641,233 | | **Total Liabilities** | $848,026 | $759,815 | | **Total Equity** | **$1,191,689** | **$1,095,906** | - Key asset increases were seen in Cash and cash equivalents (up **$34.6M**), Account receivables (up **$46.6M**), and Inventories (up **$50.3M**) compared to year-end 2024[20](index=20&type=chunk) - Total borrowings (short-term and long-term) increased from **$182.8M** at year-end 2024 to **$278.1M** as of June 30, 2025[20](index=20&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Outlines revenue, profit, and earnings per share for the second quarter and first half of 2025 versus 2024 Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $215,372 | $202,480 | | Gross Profit | $104,461 | $96,784 | | Income from Operations | $31,694 | $37,593 | | Net Income Attributable to ACM | $29,760 | $24,210 | Six Months 2025 vs 2024 Performance (in thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | $387,719 | $354,671 | | Gross Profit | $187,011 | $175,905 | | Income from Operations | $57,471 | $62,825 | | Net Income Attributable to ACM | $50,140 | $41,643 | - Diluted EPS for Q2 2025 was **$0.44**, an increase from **$0.35** in Q2 2024; for the six-month period, diluted EPS was **$0.74** in 2025, up from **$0.61** in 2024[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash movements from operating, investing, and financing activities for the first half of 2025 Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(39,619) | $51,942 | | Net cash (used in) provided by investing activities | $(31,295) | $31,889 | | Net cash provided by financing activities | $110,973 | $58,251 | - The **significant use of cash in operating activities** in H1 2025 was primarily driven by increases in inventories (**$52.9M**) and accounts receivable (**$44.5M**), and a decrease in advances from customers (**$24.4M**)[31](index=31&type=chunk) - Financing activities provided **$111.0M** in cash, mainly from proceeds from short-term and long-term borrowings (**$134.6M**) and stock option exercises (**$23.6M**)[32](index=32&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides supplementary details on customer concentration, subsidiary structure, and ongoing legal inquiries - For the six months ended June 30, 2025, three customers accounted for **49.9% of total revenue**; as of June 30, 2025, four customers accounted for **49.5% of total accounts receivable**[71](index=71&type=chunk)[72](index=72&type=chunk) - The company's principal operating subsidiary is ACM Research (Shanghai), Inc, in which it holds an **81.1% effective interest** as of June 30, 2025[34](index=34&type=chunk) - In 2025, ACM Korea received inquiries from the **Seoul Customs Office** regarding certain goods shipped to overseas markets; the investigation is ongoing but is not currently expected to have a material effect[133](index=133&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial performance and condition, highlighting revenue growth drivers, rising expenses, and liquidity position [Overview](index=38&type=section&id=Overview) Discusses the company's market position, industry forecasts, and a proposed private offering by its Shanghai subsidiary - The company's current product portfolio addresses an estimated **$20 billion** of the 2025 global wafer fab equipment (WFE) market[162](index=162&type=chunk) - Gartner estimates the total worldwide WFE market will increase by 4.7% to **$116.8 billion** in 2025, while the China WFE market is expected to decrease by 17.1% to **$33.5 billion**[163](index=163&type=chunk)[164](index=164&type=chunk) - ACM Shanghai has a proposed private offering to raise up to **RMB 4.5 billion ($642.2 million)**, which would reduce ACM Research's equity interest from 81.1% to approximately **74.6%**[164](index=164&type=chunk)[165](index=165&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Compares revenue by product, gross margin, and operating expenses for Q2 and H1 2025 against the prior year Revenue by Product Category - Q2 Comparison (in thousands) | Product Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Single wafer cleaning, Tahoe and semi-critical | $154,961 | $153,221 | 1.1% | | ECP, furnace and other technologies | $48,016 | $38,962 | 23.2% | | Advanced packaging, services & spares | $12,395 | $10,297 | 20.4% | | **Total Revenue** | **$215,372** | **$202,480** | **6.4%** | Revenue by Product Category - H1 Comparison (in thousands) | Product Category | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Single wafer cleaning, Tahoe and semi-critical | $284,530 | $262,691 | 8.3% | | ECP, furnace and other technologies | $75,646 | $64,762 | 16.8% | | Advanced packaging, services & spares | $27,543 | $27,218 | 1.2% | | **Total Revenue** | **$387,719** | **$354,671** | **9.3%** | - Gross margin for Q2 2025 was **48.5%**, a slight increase from 47.8% in Q2 2024; for H1 2025, gross margin was **48.2%**, a decrease from 49.6% in H1 2024[181](index=181&type=chunk)[202](index=202&type=chunk) - Total operating expenses **increased by 22.9% in Q2 2025** and **14.6% in H1 2025** year-over-year, driven by higher R&D and Sales & Marketing costs[182](index=182&type=chunk)[203](index=203&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's cash position, sources of liquidity, and changes in cash flow from operations Cash Position (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents and restricted cash | $452,886 | $411,310 | | Short-term time deposits | $31,019 | $17,277 | | Long-term time deposits | $0 | $13,275 | | **Total** | **$483,905** | **$441,862** | - For the first six months of 2025, net cash used in operating activities was **$39.6 million**, a significant shift from **$51.9 million provided** by operations in the same period of 2024[223](index=223&type=chunk) - The company believes existing cash, cash flow from operations, and bank borrowings will be **sufficient to meet anticipated cash needs** for at least the next 12 months[217](index=217&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) Confirms no material changes to the company's market risk exposures or management strategies during H1 2025 - There have been **no material changes** in the first six months of 2025 to the company's market risks or its management of such risks[251](index=251&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Affirms the effectiveness of disclosure controls and notes no material changes to internal financial reporting controls - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[253](index=253&type=chunk) - **No changes occurred** during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[255](index=255&type=chunk) PART II. OTHER INFORMATION Covers legal proceedings, risk factors, equity sales, and other corporate disclosures [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) States the company is not currently involved in any material legal proceedings outside the ordinary course of business - The company is not currently involved in any legal proceedings that are expected to have a **material adverse effect** on its business, operating results, or financial condition[256](index=256&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) Indicates no material changes to the risk factors previously disclosed in the 2024 Annual Report - There were **no material changes** to the risk factors discussed in the Annual Report for the fiscal year ended December 31, 2024, and the Q1 2025 10-Q[257](index=257&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports the issuance of common stock from stock option exercises, exempt from registration under the Securities Act - An aggregate of **349,743 shares** of Class A common stock were issued during the six months ended June 30, 2025, from the exercise of stock options, claiming exemption under Section 4(a)(2) of the Securities Act[258](index=258&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) Discloses the adoption of Rule 10b5-1 trading plans by two company executives for future stock sales - On May 15, 2025, Sotheara Cheav, SVP of Manufacturing, adopted a **Rule 10b5-1 trading plan** for the sale of up to 21,152 shares of Class A Common Stock[260](index=260&type=chunk) - On May 20, 2025, Jian Wang, CEO of ACM Shanghai, adopted a **Rule 10b5-1 trading plan** for the sale of up to 90,000 shares of Class A Common Stock[261](index=261&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the report, including officer certifications and Inline XBRL data files - Exhibits filed with the report include **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and various Inline XBRL documents[262](index=262&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $215 million, representing a 25% sequential increase and a 6% year-over-year increase [9][25] - Total shipments were $206 million, up 32% sequentially and 2% year-over-year [9][25] - Gross margin was 48.7%, exceeding the targeted range of 42% to 48% [9][26] - Operating income was $41.5 million, down 20.2% year-over-year, with an operating margin of 19.3% [27] - Net income attributable to ACM Research was $36.8 million, compared to $37.5 million in the previous year [28] Business Line Data and Key Metrics Changes - Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning tools grew 1%, representing 72% of total revenue [10] - Revenue from ECP furnace and other technologies grew 23%, representing 22% of total revenue [12] - Revenue from advanced packaging, excluding ECP but including service, was up 20% and represented 6% of total revenue [13] Market Data and Key Metrics Changes - The long-term revenue target for Mainland China was increased to $2.5 billion from $1.5 billion, based on an updated market size assumption of $40 billion for the China WFE market [15][16] - The company maintained its revenue target for the rest of the world at $1.5 billion [17] Company Strategy and Development Direction - The company is focused on delivering innovative products to meet the challenges of next-generation semiconductor manufacturing, particularly driven by AI demand [7] - A major upgrade to the Ultra C WB wet bench cleaning tool was announced, integrating new nitrogen bubbling technology [8] - The company is expanding its production capacity in both China and Oregon to support growth initiatives [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth for 2025, maintaining a target range of $850 million to $950 million, implying a 15% year-over-year growth at the midpoint [23] - The company is actively working to mitigate supply chain risks by diversifying suppliers and sourcing components from multiple regions [41][42] Other Important Information - ACM Shanghai received approval for a follow-on offering to raise up to $620 million, aimed at accelerating updated revenue targets [19] - The company is investing in R&D, with plans for R&D expenses in the 14% to 16% range of sales [27] Q&A Session Summary Question: Shipment growth expectations for 2025 - Management acknowledged that while shipments were up, they were only slightly higher year-over-year and emphasized that the second half of the year is expected to be stronger [32][34] Question: Strategic purchases and supply chain risks - The company is multi-sourcing components and looking for suppliers outside the U.S. to mitigate potential supply chain risks due to export controls [38][42] Question: Differences in financial results between ACM and ACM Shanghai - The difference in reported revenue is attributed to different revenue recognition standards between U.S. GAAP and China GAAP [77][80] Question: Long-term market size assumptions for China - Management expressed confidence in the long-term WFE market size in China, projecting it to remain around $40 billion based on demand for memory and logic products [92][95] Question: Progress in Taiwan and Southeast Asia - The company is actively engaging with customers in Taiwan and Southeast Asia, focusing on panel level packaging technology [60][122]

分组1 - ACM Research, Inc. (ACMR) reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, but slightly down from $0.55 per share a year ago, resulting in an earnings surprise of +28.57% [1] - The company posted revenues of $215.37 million for the quarter ended June 2025, which was 3.4% below the Zacks Consensus Estimate, compared to $202.48 million in the same quarter last year [2] - ACM Research has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has increased approximately 96.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $250.24 million, and for the current fiscal year, it is $2.00 on revenues of $919.66 million [7] - The Semiconductor Equipment - Material Services industry, to which ACM Research belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Revenue reached $215.4 million, a 6.4% year-over-year increase[9] - Total shipments amounted to $206.4 million, up 1.9% year-over-year[9] - GAAP gross margin was 48.5%, compared to 47.8% in Q2 2024[9] - Non-GAAP gross margin was 48.7%, versus 48.2% in Q2 2024[9] - GAAP operating income was $31.7 million, down 15.7% year-over-year, representing 14.7% of revenue[9] - Non-GAAP operating income was $41.5 million, a 20.2% year-over-year decrease, accounting for 19.3% of revenue[9] - Diluted GAAP earnings per share were $0.44, compared to $0.35 in Q2 2024[9] - Diluted non-GAAP earnings per share were $0.54, slightly down from $0.55 in Q2 2024[9] Revenue Breakdown by Product Category - ECP, Furnace & Other contributed $155.0 million in revenue, up 1.1%, representing 72% of the revenue mix[13] - Cleaning products generated $48.0 million in revenue, a 23.2% increase, accounting for 22% of the revenue mix[13] - Advanced Packaging & Other brought in $12.4 million in revenue, up 20.4%, representing 6% of the revenue mix[13]

[Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) This section details ACM Research's financial performance for Q2 and H1 2025, including management commentary, key financial metrics, and the fiscal year 2025 outlook [Management Commentary and Highlights](index=1&type=section&id=Management%20Commentary%20and%20Highlights) Management expressed confidence in the company's performance, citing strong execution in the first half of 2025, continued momentum in China, and progress in global expansion - CEO Dr. David Wang highlighted good execution, strengthening confidence in the long-term growth opportunity in China, and progress in global expansion with tool deliveries planned to the U.S. in Q3[3](index=3&type=chunk) - The company announced major upgrades to its Ultra C wb Wet Bench cleaning tool, integrating patent-pending nitrogen bubbling technology, and has already received repeat orders for shipment this year and next[3](index=3&type=chunk) - ACM remains confident in its ability to drive long-term growth and increase market share in both China and global markets, positioning itself as a multi-product company with proprietary world-class technology to meet challenges from the AI transformation[3](index=3&type=chunk) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) ACM Research reported revenue of **$215.4 million** for Q2 2025, a **6.4%** increase year-over-year, with H1 revenue reaching **$387.7 million**, up **9.3%** Q2 Financial Performance (Three Months Ended June 30) | Metric | Q2 2025 (GAAP) (in millions) | Q2 2024 (GAAP) (in millions) | Q2 2025 (Non-GAAP) (in millions) | Q2 2024 (Non-GAAP) (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $215.4 | $202.5 | $215.4 | $202.5 | | **Gross Margin** | 48.5% | 47.8% | 48.7% | 48.2% | | **Income from Operations** | $31.7 | $37.6 | $41.5 | $51.9 | | **Net Income** | $29.8 | $24.2 | $36.8 | $37.5 | | **Diluted EPS** | $0.44 | $0.35 | $0.54 | $0.55 | H1 Financial Performance (Six Months Ended June 30) | Metric | H1 2025 (GAAP) (in millions) | H1 2024 (GAAP) (in millions) | H1 2025 (Non-GAAP) (in millions) | H1 2024 (Non-GAAP) (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $387.7 | $354.7 | $387.7 | $354.7 | | **Gross Margin** | 48.2% | 49.6% | 48.5% | 50.0% | | **Income from Operations** | $57.5 | $62.8 | $77.1 | $91.7 | | **Net Income** | $50.1 | $41.6 | $68.1 | $72.1 | | **Diluted EPS** | $0.74 | $0.61 | $1.01 | $1.07 | [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) The company has reaffirmed its full-year revenue guidance for fiscal year 2025, maintaining the previously stated range - ACM is maintaining its revenue guidance range of **$850 million to $950 million** for fiscal year 2025[4](index=4&type=chunk) [Operating Highlights and Detailed Financials (Q2 2025)](index=2&type=section&id=Operating%20Highlights%20and%20Detailed%20Financials%20%28Q2%202025%29) In Q2 2025, total shipments grew **1.9%** to **$206.4 million**, and the company achieved a milestone by delivering its **1,500th ECP chamber** - Total shipments in Q2 2025 were **$206.4 million**, an increase of **1.9%** from Q2 2024[7](index=7&type=chunk) - The company delivered its **1,500th electroplating (ECP) chamber**, marking a significant milestone in its plating technology adoption[7](index=7&type=chunk) Q2 2025 vs Q2 2024 Financial Breakdown | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $215.4 | $202.5 | +6.4% | | **GAAP Gross Margin** | 48.5% | 47.8% | +0.7 p.p. | | **GAAP Operating Expenses** | $72.8 | $59.2 | +22.9% | | **GAAP Operating Income** | $31.7 | $37.6 | -15.7% | | **GAAP Net Income** | $29.8 | $24.2 | +23.1% | | **GAAP Diluted EPS** | $0.44 | $0.35 | +25.7% | - Cash and cash equivalents, plus restricted cash and time deposits, totaled **$483.9 million** at the end of Q2 2025, down from **$498.4 million** at the end of Q1 2025[13](index=13&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the detailed consolidated balance sheets, statements of operations, and revenue breakdown by product category for ACM Research [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, ACM's total assets grew to **$2.04 billion** from **$1.86 billion** at the end of 2024, driven by increases in cash, accounts receivable, and inventories Balance Sheet Summary (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $1,645,653 | $1,483,379 | | **Total Assets** | $2,039,715 | $1,855,721 | | **Total Current Liabilities** | $671,012 | $641,233 | | **Total Liabilities** | $848,026 | $759,815 | | **Total Equity** | $1,191,689 | $1,095,906 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations shows a **6.4%** revenue increase for Q2 2025 year-over-year, reaching **$215.4 million**, with gross profit growing to **$104.5 million** Q2 Statement of Operations Summary (in thousands) | Account | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $215,372 | $202,480 | | **Gross Profit** | $104,461 | $96,784 | | **Total Operating Expenses** | $72,767 | $59,191 | | **Income from Operations** | $31,694 | $37,593 | | **Net Income Attributable to ACM** | $29,760 | $24,210 | H1 Statement of Operations Summary (in thousands) | Account | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $387,719 | $354,671 | | **Gross Profit** | $187,011 | $175,905 | | **Total Operating Expenses** | $129,540 | $113,080 | | **Income from Operations** | $57,471 | $62,825 | | **Net Income Attributable to ACM** | $50,140 | $41,643 | [Total Revenue by Product Category](index=7&type=section&id=Total%20Revenue%20by%20Product%20Category) For Q2 2025, revenue from 'Single wafer cleaning, Tahoe and semi-critical cleaning equipment' remained relatively flat but continues to be the largest contributor at **$155.0 million** Revenue by Product Category (in thousands) | Product Category | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Single wafer cleaning, Tahoe and semi-critical cleaning | $154,961 | $153,221 | $284,530 | $262,691 | | ECP, furnace and other technologies | $48,016 | $38,962 | $75,646 | $64,762 | | Advanced packaging (ex-ECP), services & spares | $12,395 | $10,297 | $27,543 | $27,218 | | **Total Revenue** | **$215,372** | **$202,480** | **$387,719** | **$354,671** | [Supplemental Information](index=3&type=section&id=Supplemental%20Information) This section provides reconciliation of GAAP to non-GAAP financial measures and other important disclosures regarding the company's operations and future outlook [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation of GAAP to non-GAAP financial results for the three and six months ended June 30, 2025 - Non-GAAP measures exclude **stock-based compensation (SBC)** and, for net income and EPS, also exclude **unrealized gains/losses on short-term investments**[11](index=11&type=chunk)[25](index=25&type=chunk) Q2 2025 GAAP to Non-GAAP Reconciliation Summary (in thousands) | Metric | GAAP (in thousands) | SBC Adjustment (in thousands) | Other Adjustments (in thousands) | Non-GAAP (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Gross Profit** | $104,461 | $(356) | - | $104,817 | | **Income from Operations** | $31,694 | $(9,770) | - | $41,464 | | **Net Income Attributable to ACM** | $29,760 | $(9,770) | $2,730 | $36,800 | H1 2025 GAAP to Non-GAAP Reconciliation Summary (in thousands) | Metric | GAAP (in thousands) | SBC Adjustment (in thousands) | Other Adjustments (in thousands) | Non-GAAP (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Gross Profit** | $187,011 | $(885) | - | $187,896 | | **Income from Operations** | $57,471 | $(19,587) | - | $77,058 | | **Net Income Attributable to ACM** | $50,140 | $(19,587) | $1,648 | $68,079 | [Other Information](index=3&type=section&id=Other%20Information) This section includes logistical details for the upcoming investor conference call, standard forward-looking statement disclaimers, and a brief overview of ACM Research's business operations - A conference call to discuss the results is scheduled for **August 6, 2025, at 8:00 a.m. Eastern Time**[8](index=8&type=chunk) - The report contains **forward-looking statements** that involve risks and uncertainties, and readers are cautioned not to place undue reliance on them[14](index=14&type=chunk) - ACM develops, manufactures, and sells semiconductor process equipment for wet cleaning, electroplating, polishing, and other critical processes for advanced semiconductor manufacturing and wafer-level packaging[15](index=15&type=chunk)

Core Viewpoint - ACM Research, Inc. reported strong financial results for Q2 2025, highlighting growth in revenue and net income, driven by robust demand for its semiconductor processing solutions, particularly in China and globally [2][10]. Financial Performance - Revenue for Q2 2025 was $215.4 million, a 6.4% increase from $202.5 million in Q2 2024 [10]. - Gross margin improved to 48.5% from 47.8% year-over-year, with non-GAAP gross margin at 48.7% compared to 48.2% [10]. - Net income attributable to ACM Research, Inc. was $29.8 million, up from $24.2 million in the same quarter last year [10]. - Basic EPS increased to $0.47 from $0.39, while diluted EPS rose to $0.44 from $0.35 [10]. Operational Highlights - Total shipments in Q2 2025 reached $206.4 million, reflecting a 1.9% increase from Q2 2024 [4]. - The company announced significant upgrades to its Ultra C wb Wet Bench cleaning tool, enhancing etching rate uniformity by over 50% [5]. - ACM delivered its 1,500th electroplating chamber, underscoring its leadership in high-performance electroplating equipment [5]. Market Outlook - ACM maintains its revenue guidance for fiscal year 2025 in the range of $850 million to $950 million, considering factors like international trade policy and customer spending scenarios [3]. - The company is optimistic about long-term growth opportunities in China and is expanding its global footprint with planned tool deliveries to the U.S. [2]. Product Performance - Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning equipment was $155 million in Q2 2025, slightly up from $153.2 million in Q2 2024 [23]. - ECP and other technologies generated $48 million in revenue, compared to $39 million in the previous year [23]. - Advanced packaging and services contributed $12.4 million, up from $10.3 million year-over-year [23].