Financial Data and Key Metrics Changes - In Q1 2025, JD Logistics reported total revenue of RMB 47 billion, reflecting an 11.5% year-over-year growth, which is an acceleration from the previous quarter [7][23] - Revenue from external customers increased by 10.3% year-over-year to RMB 32.3 billion [7] - Non-IFRS profit was approximately RMB 750 million, up 13.4% year-over-year, with a stable non-IFRS profit margin of 1.6% [7][32] - IFRS profit was around RMB 610 million, marking an 89.5% year-over-year increase, with an IFRS profit margin of 1.3%, up 8.5 percentage points year-over-year [23][24] Business Line Data and Key Metrics Changes - Revenue from ISC customers reached RMB 23.2 billion, up 13.2% year-over-year, with JD Group contributing RMB 14.7 billion, a 14.1% increase [7][24] - Revenue from other customers, primarily express and freight delivery services, increased by 9.8% year-over-year to RMB 23.8 billion [14][27] - The number of external ISC customers grew to 63,061, a 13.1% year-over-year increase, with average revenue per customer at approximately RMB 135,000 [27] Market Data and Key Metrics Changes - JD Logistics expanded its international business, launching Warsaw Warehouse Number 2 in March 2025, enhancing its global supply logistics network [12] - The company has established a comprehensive global supply logistics network, providing efficient ISC logistics services to both Chinese brands and overseas local customers [11] Company Strategy and Development Direction - JD Logistics is focused on enhancing customer experience, cost efficiency, and market competitiveness while expanding its omni-channel supply chain service model [6][8] - The company aims to leverage technological innovation and operational model transformation to achieve long-term cost reductions and efficiency improvements [20][34] - JD Logistics is committed to optimizing its service offerings and expanding its market share in premium logistics services [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth for the year, supported by differentiated and value-added services [50] - The company is optimistic about its ability to maintain a growing gross profit margin in the medium to long term despite current fluctuations due to investments [52] Other Important Information - JD Logistics has invested in automation and technology to enhance operational efficiency, with a focus on improving delivery timeliness and service quality [20][28] - The company has expanded its logistics network to cover nearly all counties and districts in China, with over 600 self-operated warehouses [19] Q&A Session Summary Question: What measures are being taken to increase efficiency and reduce costs in mini warehouses? - Management highlighted that rental costs are declining due to improved warehousing efficiency and ongoing investments in automation [36][37][39] Question: What is the outlook for revenue growth from JD Group and the impact of operational costs on gross profit margin? - Management expects double-digit growth for the year, driven by value-added services, while acknowledging that gross profit margin may fluctuate due to ongoing investments [49][51] Question: What is the outlook for the upcoming shopping festival and customer growth? - Management is confident in revenue growth and anticipates an increase in average revenue per customer through improved service offerings [54][56]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $247 million, up 1.8% sequentially [4] - Gross margin was 22.5%, down 0.1 percentage points sequentially [4] - Profit from operations was $310 million, and EBITDA was $1.292 billion with an EBITDA margin of 57.5% [4] - Total assets at the end of Q1 were $48 billion, with total cash on hand of $12.7 billion [5] - Total liabilities were $15.7 billion, with total debt at $11.3 billion [5] - Debt to equity ratio was 34.9%, and net debt to equity ratio was negative 4.5% [5] - Net cash used in operating activities was $160 million, while net cash used in investing activities was $1.328 billion [5] - Guidance for Q2 2025 indicates a revenue decrease of 4% to 6% sequentially and a gross margin expected to be in the range of 18% to 20% [5][15] Business Line Data and Key Metrics Changes - Revenue from wafer sales increased by close to 5% sequentially, with wafer revenue from 8-inch and 12-inch wafers increasing by 182% sequentially [10] - Wafer revenue accounted for 95.2% of total revenue, while other revenue accounted for 4.8% [9] - Revenue from industrial and automotive sectors increased by more than 20% sequentially, contributing to an increase from 8% to 10% of total revenue [11] - Overall revenue from product platforms such as BCD, MCU, and specialty memory increased around 20% sequentially [13] - Capacity utilization rate increased by 4.1 percentage points sequentially to 89.6% [14] Market Data and Key Metrics Changes - Revenue by region: China accounted for 84%, the Americas 13%, and EUAsia 3% [11] - Revenue from China remained stable, while revenue from overseas increased sequentially due to geopolitical factors and demand for commodity products [11] - The automotive business segment saw significant growth due to increased investment and collaboration with industrial chains [12] Company Strategy and Development Direction - The company is prioritizing funds for core business areas, including capacity expansion and R&D activities, to enhance competitiveness and corporate value [6][7] - The company plans not to distribute profits for the year 2024, aligning with long-term development needs and shareholder interests [7] - The company aims to maintain its leading position in a competitive market through strategic focus on core business and adaptability to market changes [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the second half of the year presents both opportunities and challenges, with a focus on enhancing adaptability and risk resilience [19] - There is uncertainty regarding the impact of tariff policy changes and market demand fluctuations, particularly in the latter half of the year [18] - The company observed positive signals in various industries, indicating a potential recovery in demand [17] Other Important Information - The company is in a critical phase of capacity construction and market share expansion, requiring continuous capital expenditures [6] - The company has achieved mass production of new high-value products in collaboration with strategic partners [13] Q&A Session Summary Question: What are the expectations for revenue in the second quarter? - Revenue is expected to decrease by 4% to 6% sequentially, with stable shipment units but a decrease in blended ASP [15] Question: How is the company addressing the impact of price fluctuations? - The company is mitigating price fluctuation impacts through cost reduction and efficiency improvements, although equipment depreciation will continue to increase [15]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $247 million, representing a sequential increase of 1.8% [4] - Gross margin was 22.5%, down 0.1 percentage points sequentially [4] - Profit from operations was $310 million, and EBITDA was $1.292 billion with an EBITDA margin of 57.5% [4] - Total assets at the end of Q1 were $48 billion, with total cash on hand of $12.7 billion [5] - Total liabilities were $15.7 billion, with total debt at $11.3 billion and a debt to equity ratio of 34.9% [5] - Net cash used in operating activities was $160 million, while net cash used in investing activities was $1.328 billion [5] Business Line Data and Key Metrics Changes - Revenue from wafer sales increased by nearly 5% sequentially, with wafer revenue from 8-inch and 12-inch wafers rising by 182% sequentially [10] - Wafer revenue accounted for 95.2% of total revenue, while other revenue made up 4.8% [9] - Revenue from industrial and automotive sectors increased by over 20% sequentially, contributing to an increase in overall shipments by 15% [11][12] - Revenue from BCD, MCU, and specialty memory platforms increased around 20% sequentially [13] Market Data and Key Metrics Changes - Revenue distribution by region showed China accounting for 84%, the Americas for 13%, and EUAsia for 3% [11] - Revenue from overseas markets increased sequentially, driven by geopolitical changes and demand in commodity products [11] - The automotive business segment saw significant growth due to increased investment and collaboration with industrial chains [12] Company Strategy and Development Direction - The company is focusing on capacity expansion and R&D activities to enhance core competitiveness and corporate value [6][7] - The decision not to distribute profits for 2024 aligns with long-term development needs and shareholder interests [7] - The company plans to maintain a strategic focus on its core business and near-term deliverables [19] Management's Comments on Operating Environment and Future Outlook - The company anticipates a revenue decrease of 4% to 6% sequentially in Q2 2025, with gross margin expected to be between 18% and 20% [15] - Management noted that while there are new market factors, fundamentals remain largely unchanged from Q1 [16] - There are concerns regarding tariff policy changes and their potential impact on future demand [18] - The second half of the year presents both opportunities and challenges, with a focus on enhancing adaptability and risk resilience [19] Other Important Information - The company is in a critical phase of capacity construction and market share expansion, requiring continuous capital expenditures [6] - The capacity utilization rate increased by 4.1 percentage points sequentially to 89.6% [14] Q&A Session Summary Question: What are the expectations for revenue in the second quarter? - The company expects a revenue decrease of 4% to 6% sequentially, with stable shipment units but a decrease in blended ASP [15] Question: How is the company addressing the impact of tariff policies? - Management acknowledged the anxiety in the market due to tariff policy changes and emphasized the need for close attention to these developments [18]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $247 million, representing a sequential increase of 1.8% [4] - Gross margin was 22.5%, down 0.1 percentage points sequentially [4] - Profit from operations was $310 million, and EBITDA was $1.292 billion with an EBITDA margin of 57.5% [4] - Total assets at the end of Q1 were $48 billion, with total cash on hand of $12.7 billion [5] - Total liabilities were $15.7 billion, with total debt at $11.3 billion [5] - The debt to equity ratio was 34.9%, and the net debt to equity ratio was negative 4.5% [5] - Net cash used in operating activities was $160 million, while net cash used in investing activities was $1.328 billion [5] Business Line Data and Key Metrics Changes - Revenue from wafer sales accounted for 95.2% of total revenue, with wafer revenue increasing by close to 5% sequentially [9] - Revenue from 8-inch and 12-inch wafers increased by 182% sequentially, driven by customer shipment pull-in due to geopolitical changes and demand rise in commodity products [10] - Revenue from industrial and automotive sectors increased by more than 20% sequentially, contributing to an increase in overall shipments by 15% [11] - Revenue from automotive products increased from 8% to 10% of total revenue, benefiting from major customers' achievements in the automotive field [12] Market Data and Key Metrics Changes - Revenue distribution by region: China accounted for 84%, the Americas 13%, and EUAsia 3% [11] - Revenue from overseas markets increased sequentially, primarily due to geopolitical factors and demand shifts [11] - The company observed a strong demand from BCD, MCU, and specialty memory platforms, with overall revenue from these platforms increasing around 20% sequentially [13] Company Strategy and Development Direction - The company is focusing on capacity expansion and R&D activities to enhance core competitiveness and corporate value [6][7] - The company plans not to distribute profits for 2024 to align with long-term development needs and shareholder interests [7] - The company aims to maintain its leading position in a competitive market through strategic investments [7] Management's Comments on Operating Environment and Future Outlook - The company expects a revenue decrease of 4% to 6% sequentially in Q2 2025, with gross margin guidance between 18% to 20% [15] - Management noted that while there are new market factors, the fundamentals remain largely unchanged compared to Q1 [16] - The company is enhancing its adaptability and risk resilience capabilities in response to market challenges [19] - There is uncertainty regarding the second half of the year, particularly concerning tariff policies and demand fluctuations [18] Other Important Information - The company is in a critical phase of capacity construction and market share expansion, requiring continuous capital expenditures [6] - The capacity utilization rate increased by 4.1 percentage points sequentially to 89.6% [14] Q&A Session Summary Question: What are the expectations for revenue in the second quarter? - The company expects a revenue decrease of 4% to 6% sequentially, with stable shipment units but a decrease in blended ASP [15] Question: How is the company addressing the challenges in the current market? - The company is focusing on cost reduction and efficiency improvements to mitigate the impact of price fluctuations [15]

Hua Hong Semiconductor (01347) Q1 2025 Earnings Call May 08, 2025 05:00 AM ET Company Participants Daniel Wang - EVP & CFOPeng Bai - President & Executive Director Conference Call Participants Huang Leping - Chief Analyst for Global Tech StrategyZi Yuan Wang - Equity AnalystTony Shen - Technology AnalystNone - AnalystJian Kuai - AnalystQingyuan Lin - Director - Senior Analyst Operator Ladies and gentlemen, thank you for standing by. Welcome to Huahong Semiconductor First Quarter twenty twenty five Earnings ...

Financial Data and Key Metrics Changes - Sales revenue for Q1 2025 was $541 million, a 17.6% increase year-over-year and a 0.3% increase quarter-over-quarter [5][8] - Gross margin was 9.2%, up 2.8 percentage points year-over-year but down 2.2 percentage points quarter-over-quarter [9] - Net loss for the period was $52.2 million, compared to a loss of $25.3 million in Q1 2024 and a loss of $96.3 million in Q4 2024 [11] - Basic earnings per share was $0.20, compared to $0.19 in Q1 2024 and a loss of $1.5 cents in Q4 2024 [11] Business Line Data and Key Metrics Changes - Revenue from embedded non-volatile memory was $130.3 million, a 9.3% increase year-over-year [13] - Revenue from standalone non-volatile memory was $42.9 million, a 38% increase year-over-year [13] - Revenue from Power Discrete was $162.8 million, a 13.5% increase year-over-year [13] - Revenue from analog and power management IC was $136.8 million, a 34.8% increase year-over-year [13] Market Data and Key Metrics Changes - Revenue from China was $442.5 million, contributing 81.8% of total revenue, a 21% increase year-over-year [12] - Revenue from North America was $56.4 million, a 22% increase year-over-year [12] - Revenue from Europe decreased by 30% year-over-year to $15.2 million [12] - Revenue from Japan decreased by 62.1% year-over-year to $1 million [12] Company Strategy and Development Direction - The company plans to accelerate effective capacity expansion, enhance R&D capabilities, and manage supply chain disturbances while reducing costs and improving efficiency [6][7] - The company aims to optimize its product portfolio and maintain full capacity utilization [6] Management Comments on Operating Environment and Future Outlook - Management noted that the semiconductor industry faces greater uncertainties due to recent global changes and policies affecting customer demand and procurement costs [6] - The company expects revenue for Q2 2025 to be in the range of $550 million to $570 million, with a projected gross margin of 7% to 9% [16] Other Important Information - Capital expenditures in Q1 2025 were $510.9 million, with significant investments in manufacturing [14] - Cash and cash equivalents decreased to $4.08 billion as of March 31, 2025, from $4.46 billion at the end of 2024 [15] Q&A Session Summary Question: Impact of new tariffs on customers - Management indicated that the recent tariffs have not had a meaningful impact on the business, as most customers are domestic design houses [20][22] Question: Growth in analog and PMIC sales - Management noted that the analog and PMIC platforms are growing due to competitive offerings and increasing domestic demand [24][28] Question: Price increase possibilities - Management stated that while there is pricing pressure on 8-inch wafers, 12-inch prices are gradually increasing, and customer acceptance of price increases is expected as demand exceeds supply [35][36] Question: Outlook for the second half of the year - Management expects a gradual recovery in demand, with consumer segments remaining weaker compared to industrial segments [49][50] Question: Competition and pricing strategies - Management acknowledged the competitive landscape but emphasized the company's technological advantages and ability to meet customer needs [58][60] Question: Equipment procurement and tariff impact - Management reported minimal impact from tariffs on equipment procurement, as most manufacturing occurs outside the U.S. [74][76] Question: Demand cycle for power devices - Management expressed confidence in the power device segment, citing strong competition but also a solid technological foundation [78][80] Question: Gross margin trends - Management indicated that gross margin pressures are expected due to new capacity ramp-up but remains optimistic about future improvements [96][102] Question: Embedded NOR flash platform performance - Management acknowledged the need for improved offerings in embedded NOR flash and expects growth as new technologies are introduced [104][106]

Financial Data and Key Metrics Changes - In the first quarter, total volumes and revenue decreased by 6.1% and 7.5% respectively, with revenue per hectoliter declining by 1.5% due to negative geographic and channel mix [8] - Normalized EBITDA decreased by 11.2%, and the normalized EBITDA margin contracted by 140 basis points [8] - In APAC West, volumes and revenue decreased by 8.6% and 11.7% respectively, with normalized EBITDA decreasing by 17.6% [8] - In China, volumes declined by 9.2%, and revenue declined by 12.7%, with revenue per hectoliter declining by 3.9% [9] Business Line Data and Key Metrics Changes - The in-home channel saw increased volume and revenue contributions, indicating a shift in consumer behavior towards in-home consumption [9] - Marketing investments for Budweiser and Harbin were increased to connect with consumers and drive market share [10] - In APAC East, volumes and revenues increased by 11.9% and 11.7% respectively, with normalized EBITDA increasing by 24.4% [11] Market Data and Key Metrics Changes - In South Korea, volume increased by double digits, supported by shipment phasing ahead of a price increase announced in April [12] - The company reported a decrease in cost of sales by 1.5% on a per hectoliter basis, driven by commodity tailwinds and cost management initiatives [13] Company Strategy and Development Direction - The company aims to adapt to evolving market conditions and focus on a winning brand portfolio, premium route to market, and a resilient team to drive sustainable growth [6] - The strategy remains focused on premiumization and digitalization, with an emphasis on market share and in-home channel growth [19][20] - The company is committed to expanding its route to market and enhancing distribution capabilities, particularly in the in-home channel [29] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence in China remains low, particularly in key regions, but there are positive indicators from upcoming holidays [17][18] - The company is closely monitoring the impact of tariffs in Guangdong but has not yet seen a significant shift in consumer behavior [44][45] - Future focus will be on executing the strategy effectively and adapting to market conditions as needed [46] Other Important Information - The company is leveraging technology to enhance commercial capabilities and drive value creation for stakeholders [10] - The partnership with Swire Coca-Cola is seen as a significant opportunity for growth in the in-home channel [85] Q&A Session All Questions and Answers Question: Update on Q2 performance in China - Management indicated that consumer confidence remains low, but there are positive signs from upcoming holidays, and pricing strategies will be considered based on market conditions [17][18] Question: Competition in Guangdong province - Management acknowledged the competitive landscape in Guangdong and emphasized the importance of expanding the Harbin brand and enhancing distribution in the in-home channel [25][26] Question: Core plus plus strategy and trade-up volume - Management explained that the core plus plus segment serves as an accessible upgrade for consumers, with a focus on product superiority and brand differentiation [36][38] Question: Impact of tariffs on consumer behavior in Guangdong - Management stated that it is too early to quantify the impact of tariffs, but they are monitoring the situation closely [44][45] Question: On-trade recovery in China - Management remains conservative about on-trade recovery, noting that consumer occasions are still growing in the in-home channel [53][54] Question: Cooperation with Swire Coca-Cola - Management reported positive outcomes from the partnership and expressed optimism for future collaboration in the in-home channel [85][86] Question: Competitive edge of Harbin Beer - Management highlighted Harbin's national brand status and cultural significance, along with ongoing premiumization efforts [91][92]

Financial Data and Key Metrics Changes - In Q1 2025, total volumes and revenue decreased by 6.1% and 7.5% respectively, with revenue per hectoliter declining by 1.5% due to negative geographic and channel mix [7][8] - Normalized EBITDA decreased by 11.2%, and the normalized EBITDA margin contracted by 140 basis points [7] - In APAC West, volumes and revenue decreased by 8.6% and 11.7% respectively, with normalized EBITDA decreasing by 17.6% [7][8] Business Line Data and Key Metrics Changes - In China, volumes declined by 9.2%, with revenue declining by 12.7% and revenue per hectoliter down by 3.9% [8] - The in-home channel saw increased volume and revenue contributions, indicating a shift towards premiumization in this segment [9] - In APAC East, volumes and revenues increased by 11.9% and 11.7% respectively, with normalized EBITDA increasing by 24.4% [11] Market Data and Key Metrics Changes - In South Korea, volume increased by double digits, supported by shipment phasing ahead of a price increase announced in April [12] - The company reported strong performance in the in-home channel, with a focus on expanding distribution and market share [30] Company Strategy and Development Direction - The company aims to adapt to evolving market conditions and execute with discipline to capture growth, focusing on market share, in-home channels, and mega brands like Budweiser and Harbin [5][20] - The strategy emphasizes premiumization and a digitalized ecosystem, with a commitment to optimizing business operations [20][76] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence in China remains low, impacting sales, particularly in Guangdong, but sees potential for improvement during holiday periods [17][56] - The company is focused on executing its strategy effectively, with an emphasis on enhancing distribution and expanding the in-home channel [49] Other Important Information - The company has increased marketing investments for Budweiser and Harbin to connect with consumers and drive market share [10] - The usage and reach of the BEES platform for B2B wholesaler and customer engagement continued to expand, indicating a focus on technology and commercial capabilities [11] Q&A Session Summary Question: Update on Q2 performance in China - Management indicated that consumer confidence remains low, particularly in key regions, but sees potential for improvement during holiday periods [17] Question: Competition in Guangdong province - Management acknowledged the competitive landscape in Guangdong and emphasized the importance of expanding in-home coverage and distribution to maintain market share [30] Question: Core plus plus strategy and trade-up volume - Management explained that the core plus plus segment serves as an accessible upgrade for consumers, with a focus on superior product offerings to drive growth [39] Question: Impact of tariffs in Guangdong - Management stated it is too early to quantify the impact of tariffs on consumer behavior but emphasized focusing on execution and adapting strategies as needed [46] Question: On-trade recovery in China - Management remains conservative about on-trade recovery, noting that consumer confidence is a key factor and that in-home consumption continues to grow [56] Question: Cooperation with Swire - Management highlighted successful trials in Hubei and Anhui provinces and expressed optimism about future collaboration opportunities [86] Question: Future of Harbin Beer - Management emphasized Harbin's unique position as a national brand with a strong heritage and commitment to premiumization, aiming to leverage its brand power for growth [92]

Financial Data and Key Metrics Changes - The Group recorded net revenues of EUR 1.34 billion in the first quarter, up 13% at constant exchange rates compared to the same period last year [9] - Retail sales reached EUR 1.22 billion, also up 13% at constant FX, driven by like-for-like and full-price sales [9] - Wholesale sales increased by 7% year-on-year, while royalties delivered a 13% growth, supported by eyewear and fragrances [10] Business Line Data and Key Metrics Changes - Prada brand's retail sales remained stable against high comparisons from the previous year, while Miu Miu experienced a remarkable growth of 60% at constant FX, increasing its contribution to Group retail sales from 22% to 31% [11][10] - Leather goods were highlighted as one of the fastest-growing categories, particularly for Miu Miu, with significant success in the first three months [29][30] Market Data and Key Metrics Changes - Asia Pacific sales were up 10% at constant FX, Europe increased by 14%, the Americas grew by 10%, and Japan saw an 18% rise, with the Middle East delivering the best performance at 26% [12] - The Chinese market showed volatility, with local transactions negatively impacting performance, while traveler transactions remained positive [20] Company Strategy and Development Direction - The company aims to build Prada's desirability and product innovation to maintain positive growth despite challenging market conditions [4] - Miu Miu's expansion in the U.S. is a focus, with plans for further store openings and refurbishments to enhance brand presence [35] Management's Comments on Operating Environment and Future Outlook - Management noted that the market remains complicated, with regular trends and some differences across regions, but expressed optimism about maintaining positive growth [14] - The company is not expecting significant changes in consumer behavior in the short term but hopes for gradual improvements in local demand, particularly in China [68] Other Important Information - The company is observing pricing strategies closely, considering potential impacts from tariffs and currency fluctuations, with a maintenance pricing strategy of 2-4% every six months [41] - The online channel for both brands has seen growth, particularly in North America, contributing to 8-10% of total revenue [59] Q&A Session Summary Question: Trends by nationality and product brand EBITDA - Management noted volatility in the Chinese cluster, with a return to negative performance in Q1 compared to a strong Q4 [20] Question: Changes in American consumer behavior and future acceleration - Management indicated that the U.S. market remains unstable, with ongoing investments aimed at improving performance [23] Question: Drivers of leather goods growth - Miu Miu's leather goods category showed strong performance, with a mix of iconic and new products driving success [30] Question: Update on store expansion plans - The company confirmed ongoing plans for store expansions, particularly for Miu Miu in North America, with a successful refurbishment of the Soho store [35] Question: Pricing strategy in light of tariffs - Management stated that maintenance pricing increases would likely be sufficient to offset potential tariffs, but consumer confidence remains a concern [50] Question: Overlap between Prada and Miu Miu customer demographics - Management emphasized that both brands are managed independently, with no intentional overlap in customer targeting [54] Question: Profitability outlook and seasonality - Management indicated that growth remains the priority, with a focus on maintaining moderate margin expansion [58] Question: Performance of online channels - Online sales have grown slightly in North America, maintaining a consistent contribution to total revenue [59] Question: Competitive landscape and new product cycles - Management acknowledged the reshuffling in the luxury industry and expressed confidence in gaining market share through stability and creativity [65] Question: Investments in China and local demand outlook - Management remains positive about long-term prospects in China, with expectations for easier comparisons in the second half of the year [68]

Financial Data and Key Metrics Changes - The group achieved revenue of US$401.5 million, meeting the midpoint of revenue guidance [3][7] - Group bookings totaled US$431.2 million, showing a 2.9% quarter-on-quarter growth and 4.8% year-on-year growth [7] - Group gross margin exceeded 40%, rebounding due to a better product mix [6][8] - Adjusted net profit was HKD83.2 million, up 1.6% quarter-on-quarter but down 53.1% year-on-year [9] Business Line Data and Key Metrics Changes - The semiconductor (semi) segment contributed approximately 64% of the group's revenue, with revenue of US$255.6 million, up 0.6% quarter-on-quarter and 44.7% year-on-year [9][10] - Semi bookings were US$222.9 million, down 19.5% quarter-on-quarter but up 11.4% year-on-year [10][11] - The surface mount technology (SMT) segment delivered revenue of US$145.9 million, a decline of 20.3% quarter-on-quarter and 35.6% year-on-year [12] - SMT bookings were US$208.4 million, up 46.5% quarter-on-quarter, driven by strong seasonal demand [12] Market Data and Key Metrics Changes - The mainstream business continued to be affected by soft demand from automotive and industrial end markets, with growth trajectory difficult to forecast [6][14] - The company noted stabilization in the automotive and industrial end markets, although they remained soft [12][14] Company Strategy and Development Direction - The focus for 2025 is on securing additional orders from both high volume manufacturing (HVM) and logic customers [5][14] - The company remains confident in the demand for advanced packaging (AP) and TCB solutions for AI and high-performance computing applications [14][105] - The global manufacturing footprint provides flexibility to navigate potential tariff impacts [14][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining AP revenue and expects mainstream business to improve due to seasonality and better-than-expected Q1 bookings [14] - The indirect impact of tariffs makes the growth trajectory difficult to forecast, but management remains optimistic about the overall market growth [14][26] Other Important Information - The company completed the delivery of the bulk of ECB orders to a leading memory maker, with further orders expected [4][5] - The strong progress in DCB solidifies the company's leadership in the market [5] Q&A Session Summary Question: Booking direction in the second quarter and advanced packaging booking momentum - Management remains confident that Q2 bookings will be within a similar range compared to the last few quarters, assuming no unexpected impacts from tariffs [21][22] Question: Impact of tariffs on SMT business and capacity expansion - Management noted that while there hasn't been significant direct impact on operations, some customers are evaluating their investment timing and location due to tariffs [26][27] Question: Magnitude of orders from the second HBM customer - Orders from the second HBM customer are smaller compared to the first but are considered meaningful, with two orders already received [42] Question: Progress on chip on wafer tools and customer decisions - Management indicated significant progress from qualification to pilot production, with expectations for orders in the second half of 2025 [50][52] Question: Confidence in follow-on orders from the leading HBM customer - Management is hopeful for follow-on orders and is actively engaging with multiple HBM players [62] Question: OpEx management and future profitability - Management emphasized a balance between protecting future R&D investments and maintaining sensible cost control measures [99][100]