Financial Data and Key Metrics Changes - The company reported revenue of $468.0 million USD for Q3 2025, an increase of 7.6% quarter-on-quarter and 9.5% year-on-year, primarily driven by growth in SMT [9][10] - Adjusted gross margin for Q3 was 37.7%, lower than typical levels due to a larger contribution from SMT and lower SEMI gross margin [10][11] - Adjusted net profit was $101.9 million HKD, down 24.4% quarter-on-quarter but up 245.2% year-on-year [11] Business Line Data and Key Metrics Changes - SEMI segment revenue was $240.5 million USD, down 6.5% quarter-on-quarter but up 5.0% year-on-year, driven by stronger demand for wire bonders and die bonders [12] - SMT segment revenue was $227.5 million USD, up 28% quarter-on-quarter and 14.6% year-on-year, supported by AI servers and EV demand in China [14][15] - SEMI's adjusted gross margin was 41.3%, lower than normal due to a higher contribution from wire bonders and lower TCB revenue [13] Market Data and Key Metrics Changes - The company noted strong demand in China driven by EVs and high factory utilization across all sectors [3] - The group closed the quarter with a backlog of $867.7 million USD, indicating strong future demand [10] Company Strategy and Development Direction - The company aims to maintain its leadership in TCB technology and expects the total addressable market for TCB to exceed $1 billion by 2027, driven by AI infrastructure investments [17] - The strategic restructuring, including the liquidation of the Sun Churn AEC plan, is expected to enhance cost competitiveness and operational agility [8] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for TCB demand and noted that the timing of key customers' technology roadmaps will influence order volumes [25][30] - The company acknowledged uncertainties in the automotive and industrial markets but remains optimistic about mainstream demand, particularly from China [17][49] Other Important Information - The company experienced an isolated booking cancellation in Q3 for panel deposition tools, which was a one-off occurrence [9][10] - The group achieved a book-to-bill ratio of 1.04 for the quarter, maintaining a ratio above one since Q1 2025 [10] Q&A Session Summary Question: HBM4 Transition and Market Share - Management confirmed they are leading the transition to HBM4 and have secured orders from two major HBM players, indicating a strong market position [22][23] Question: Pause in Advanced Packaging and TCB - Management clarified that the observed pause in AP and TCB was driven by the timing of key customers' technology roadmaps, with expectations for growth in Q4 [24][25] Question: OpEx and AEC Liquidation Impact - Management indicated that the liquidation of AEC will primarily benefit COGS rather than OpEx, and OpEx is expected to remain similar to prior years due to ongoing R&D investments [35][36] Question: TCB Fluxless Application Timeline - Management anticipates a significant ramp-up in fluxless TCB applications for logic in 2026, with ongoing progress in the technology [37][39] Question: Customer Concentration and Future Opportunities - Management noted that TCB customer concentration has broadened beyond the top three memory makers, engaging with various AI customers globally [64][65] Question: Margin Outlook for SMT Solutions - Management explained that current SMT margins are influenced by market composition, with expectations for sustained low 30% margins unless market conditions change [69] Question: Total Addressable Market for TCB - Management projected that the total addressable market for TCB will be larger for HBM than for logic over time, with aspirations for a 35% to 40% market share [70][72]