Financial Data and Key Metrics Changes - Organic sales grew by 6% in Q2 2025, with adjusted EBITDA increasing by 7% when excluding the Graphics business divestiture [11][12] - Adjusted EBITDA reached $136 million, exceeding initial guidance of $120 million to $125 million [11][12] - Adjusted EBITDA margin declined by approximately 40 basis points year-over-year in constant currency terms, primarily due to higher pass-through metal prices [11][12] Business Line Data and Key Metrics Changes - Electronics business achieved a 9% organic growth, driven by strong demand in high-performance computing and telecommunications [11][12] - Sales from wafer-level packaging products grew over 20% in Q2, with robust order patterns from customers [7][12] - Industrial and Specialty organic net sales increased by 1% year-over-year, with core Industrial Surface Treatment business showing stable or growing adjusted EBITDA [16][12] Market Data and Key Metrics Changes - Offshore business experienced a 15% year-over-year organic sales growth due to the completion of several large projects [17][12] - The company noted macroeconomic weakness in Europe and the Americas, but automotive growth in Asia partially offset this [16][12] - Demand for power electronics remained strong, particularly from electric vehicle manufacturers in Asia and Europe [15][12] Company Strategy and Development Direction - The company is focused on penetrating fast-growing areas within its addressable markets while driving productivity through continuous improvement [6][12] - A new world-class research center was opened in Bangalore, India, to support global formulation research and local applications development [10][12] - The company is investing in technology and strategic initiatives, including the construction of a mid-scale active copper manufacturing site expected to be commissioned by the end of the year [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite macroeconomic uncertainties, emphasizing structural advantages for long-term growth [10][12] - The adjusted EBITDA outlook for the full year was increased to a range of $530 million to $550 million, reflecting strong performance in leading-edge electronics [20][12] - Management remains cautious about potential demand variability in the second half of the year, particularly regarding tariffs and consumer electronics [21][12] Other Important Information - The company generated $59 million of adjusted free cash flow in Q2 and invested $35 million into working capital [17][12] - The net leverage ratio at the end of the quarter was 2.1 times, with no debt maturities until 2028 [18][12] - The company repurchased approximately 1 million shares at an average price of $20.45 early in the quarter [19][12] Q&A Session Summary Question: Insights on customer demand and potential pull forward - Management indicated no signs of demand pull forward in Q2, with robust investment in data center capacity continuing [27][12] Question: Expectations for Power Electronics in the second half - Power Electronics had strong growth in Q2, but management anticipates a potential slowdown in growth rate due to specific customer issues [30][12] Question: Comparison of current electronics business to previous peaks - Electronics revenue reached a new peak, but volumes are not back to prior peak levels, particularly in the circuitry and assembly businesses [33][12] Question: Competition in power electronics and advanced packaging - Management noted established competition in wafer-level packaging but highlighted a growing competitive landscape in power electronics [36][12] Question: Guidance assumptions and risks - Guidance range reflects uncertainty around tariff impacts, with stronger EV and smartphone activity expected to drive the upper end of the range [64][12] Question: Updates on Cuprion production and capacity - The first production line for Cuprion is expected to be operational by the end of the year, with plans for additional capacity in the next 18 months [66][12]

Core Viewpoint - The market situation in April is complex, suggesting a cautious approach and potential reduction in positions [2]. Group 1: Technical Analysis - The Shanghai Composite Index has broken below the important 30-day moving average support, indicating a higher likelihood of weakness in the index [3]. - The index has experienced an upward trend for approximately 11 weeks, but a correction is expected in the next 4-6 weeks based on Fibonacci retracement levels [3]. - The MACD indicator shows a trend of increasing bearishness, suggesting that adjustments in time and space are still insufficient, warranting a cautious stance [3]. Group 2: April Earnings Season - This year marks the first earnings season under the new national regulations, emphasizing full-process supervision of listed companies and improved delisting systems [4]. - The market is expected to place greater weight on earnings performance, with a pessimistic outlook following earnings disclosures from major internet companies [4]. - Companies with high price-to-earnings ratios and low profitability have seen significant declines, with micro-cap stocks dropping nearly 5% this week, reflecting caution towards the April earnings reports [4]. Group 3: Overseas Uncertainties - U.S. President Trump's announcement of a 25% tariff on non-U.S. manufactured cars and specific auto parts, effective April 2, has heightened global economic tensions and increased recession expectations in the U.S. [5]. - The rising gold prices indicate ongoing concerns regarding overseas uncertainties [5]. Group 4: Positive Aspects - Despite the prevailing negative analysis, there are potential positive factors, such as the possibility of a value reassessment of A-shares and Hong Kong tech stocks due to U.S. economic downturns [7]. - The marginal impact of U.S. tariffs on China is decreasing, potentially accelerating domestic substitution efforts [7]. - There is significant room for policy adjustments in China, with indications from the central bank regarding potential interest rate cuts [7]. Group 5: Summary - The market's complexity in April necessitates decisions based on trading volume: observing when below 1.5 trillion, participating between 1.5-2 trillion, and holding strong positions above 2 trillion [8]. - Attention should be given to sectors benefiting from U.S. tariffs stimulating domestic substitutes, such as lithography equipment, and potential countermeasures from China in rare earths and agriculture [8]. - Industries with rising demand and price increases, such as industrial chemicals and cutting-edge technologies like solid-state batteries and controlled nuclear fusion, should also be monitored [8].