Welcome everyone to Chroma's 2025 Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent background noise. After the presentation, there will be a question and answer session. Please follow the instructions given at that time if you would like to ask the question. For your information, the webcast replay will be available within an hour after the conference is finished. Please visit www.chroma.com.tw/investor/index under the Investor Relations section. Now, I would like to introduce the CFO, Paul Ying. Mr. Ying, please begin. Thank you, Jason. Welcome everyone. This is Paul Ying from Chroma ATE, this is the fourth quarter of 2025 financial release. Well, I expect everyone, you see the presentation material at the website, we have already posted. On the page number five, you can see that the bar chart on the right-hand side. You can see in five years span for the past three years, starting from 2023, we grow the top line from 18.6 billion all the way to TWD 28.3 billion for the consolidated sales. For the 2025, the net income comes to the 11.7 billion and grow from the again, from the 2023. The total headcount for Chroma globally is somewhere over 3,800 employees. If we turn to slide six, you can see the financial performance for the year consolidated sales and the gross margin. On this page, you also can see in five years span, you can see the growth of the gross margin from 58% all the way to 61% on 2025. For the parent only, the sales and gross margin is similarly growth in the past three years, from 54% to somewhere like 55%-53%. The top line again, is also grows from TWD 12.5 billion all the way to TWD 22 billion. With the investment in the R&D expense, the ratio is somewhere between 11%-13%, but the absolute numbers amount for the investment over the R&D expenses has already exceeding TWD 2.3 billion. This is for the financial performance. Next page, on the slide number seven, you also can see the return on equity. It's a double digit again, a growth in the three years period, from 18%-29% at the 2025. As to the dividend, you also can see that our dividend policy normally we pay out like 70%. For the earnings per share for the year of 2025, it's reaching TWD 27.7. Our dividend for this year just has approved by the board members this morning, reached to TWD 19.5. It's 70% again. As to the condensed, the consolidated income statement for the fourth quarter of 2025. In this page, you also can see that we have made a record high on the fourth quarter of 2025 on the top line, which is approximately TWD 8.58 billion. This is a 34% growth in a quarter-over-quarter base, and 42% growth on a year-over-year base. Majorly, it's coming from the sales of the testing equipment business, which is occupied most of that at 96%. As to the gross margin, again, the fourth quarter gross margin is 61% and reaching TWD 5.2 billion. This is a 36% growth in a quarter-over-quarter base and 45% growth on a year-over-year base. As to the OpEx, I think the growth of the OpEx on a quarter-over-quarter base, I think it's a 17% on a general administration and another 3% on the R&D. Totally, you can see that the operating income reached somewhere approximately TWD 3 billion and reaching 35% of the top line. This is a growth of a 62% growth on quarter-over-quarter base, and another 92% growth on a year-over-year base. As to the net income, we are reaching TWD 2.6 billion, occupies 31% of the top line. On a Q- over- Q base, it's a 48% decrease, simply because on the third quarter, we have the capital gains reaching somewhere, approximately TWD 3.2 billion on the real estate. If we compare to the fourth quarter of last year, it's a 72% growth on the net income. Here, we have enjoy TWD 6.03 as the fourth quarter earning per share. For a total, this is again, this is well, a drop compared to Q- over- Q, but 73% on a year-over-year basis. As to the annual numbers, you can see from this page, slide number 10, in 2025, the net sales reaching TWD 28.3 billion. Compared to last year, this is a 31% growth. Again, majorly contributed from the testing equipment business, which occupied like 96%. For the growth margin, well, we are reaching 61%, which is pretty high, and compared to last year, it's a 37% growth. For the operating income, we are reaching approximately TWD 9.2 billion, occupy like 32%. Compared to last year, this is a 68% growth. For the non-operating items, here, you also can see that it's we approximately nearly tripled the size of the year of 2024 to TWD 4.7 billion. For the net income, here you can see that we over TWD 10 billion, reaching nearly TWD 12 billion, occupy 42% of the top line, and another 121% growth compared to last year. This is a very good year for Chroma, and our earning per share for 2025, reaching TWD 27.7. Again, this is a 122% growth compared to last year. This is for the income statement. We turn to the balance sheet highlights. In this page, you also can see that the, well, due to the operation result, you can see that our cash grows like 65%, and the inventory grows like 45%. The major reason for the growth for the inventory is preparing for the shipment for the and also the backlog orders for 2026. You also can see that our short-term debt is decreased, and the long-term debt is increased due to our expansion for the second phase of our headquarters constructions. Here, you also can see that we maintain pretty much the same inventory turnovers and also accounts receivable turnovers. For the return on equity and return on assets, is also improved from the 22% last year to 29% for the return over equity, and for the 15% of the return over assets at 2024, it grows to 20% at the year of 2025. For the cash positions, you also can see that our free cash flow is nearly TWD 6.6 billion. Compared to last year, it's a 131% growth. This is for a very short briefing on the financial side. Next, Jennifer will give you the presentation for the product mix and also for the highlight for 2026. Hi. Good afternoon, everyone. This is Jennifer. I will go through the product mix. Please refer to slide 13. Let's start with the fourth quarter. In the fourth quarter, Chroma generate TWD 8.6 billion consolidated sales, and the biggest growth was coming from the semiconductors and the photonics testing solutions, which is increased by 37% quarter-over-quarter and the same, 37% year-on-year. This quarter was mainly due to the metrology delivered. Okay. The test instruments and ATS was lower than third quarter, but year-on-year still grew by 56%. In 2025, the outstanding growth was coming from the power business. The test instrument, ATS, present a strong growth of 55% compared to 2024. This year, we expect another year of the growth for these sectors, mainly coming from AI server power, include HVDC adoptions and the demand from the ESS markets, which is battery cells. Okay. The semiconductor and photonic sectors in 2025 was growing by 40% compared to 2024, and it has consecutively grew for the second years and reached almost same weight as the power business. In 2026, we expect another year of good growth from the semiconductor sectors, mainly contribute from the three major drivers. First one, the System Level Test, particularly the demand come from AI, HPC, and ASIC. The second, the metrology for advanced packaging capacity ramp. The third, photonics from CPO adoptions. Now we are open for the Q&A section. Yes, thank you, Jennifer. Ladies and gentlemen, we will now begin the question- and- answer session. If you have a question for any of today's speakers, please press star key and number one on your telephone keypad, and you will enter the queue. After you are announced, please ask your question. If you find that your question has been answered before it is your turn to speak, please press star key and number two to cancel the question. Thank you. Now, please press star one on your keypad if you would like to ask the question. Now we'll have the first question, Kevin Wang, Mizuho. Go ahead, please. Hi, Kevin. Hi, Kevin. Hey, hello. Yes, thanks for taking my question. Congratulations on your Q4, very strong Q4 results. The first question is regarding your revenue growth this year. I think you should still deliver very strong growth this year, but do you have any quantified numbers for your revenue growth this year? Could you also share the growth outlook for test instruments and also semiconductor, respectively, this year? As you mentioned, a good growth, if you can give any a rough idea for the quantified number, that would be great. Thank you. Hi, Kevin. We couldn't provide any forecast based on the regulations in Taiwan, basically, we do have very outstanding order on hand. Let me give you some color regarding to our ATS, which is the power business. Well, as you know that last year, we were mainly ruled by these kind of drive, AI power and not from HVDC. If you look at our power sectors, I think roughly close to 50% actually come from those AI powers. Then we expecting we will have another year of growth from these sectors, and due to HVDC adoptions. Plus, this year we do receive a strong demand come from ESS markets. The best hint I could provide is you could refer to the good year we had for 2022, 2023, those battery cell booming. Got it. Okay. My follow-up question is for your gross margin. Q4 gross margin looks very good, and it keeps at 60% or higher for every quarter in 2025. How should we think about the, and also expect the gross margin this year? In addition, I mean, the Q4, there's a very high revenue contribution from overseas subsidiaries. What's the major reason for this kind of high revenue? How should we think about the gross margin impact from overseas subsidiaries? Thank you. As you know, as a practice, we don't discuss gross margins. However, our targets always try our best to maintain the gross margins. Okay? Overseas, sometimes, I would say every year, maybe between a quarter, there were some changes. I think that's due to, you know, the shipping timing, and also could be the customs issues. However, I think the markup to overseas, I think it's around 15%-20%, but cannot be very precise, you know, exactly markup the same for every quarter due to the factor which is I just mentioned. Got it. Thank you. Kevin, thank you. Thank you. Next one, Alex Wang, Bernstein. Go ahead, please. Hi, Alex. Hey, Paul and Jennifer. Happy New Year. Congrats on the great results. You include some CPO testers in the presentation. I'm wondering, have you secured the order for these testers as well as, I think you also have FAU assembly equipment that you showed last year? When do you expect volume shipment will start for these, CPO equipment? You may refer to our slides regarding to the CPO. Basically, these slides actually show you the four major stages for making the so-called CPO. I think we already have order, and the customer is planning to pile around this year. We cover stages 3 and 4, which is we particularly blocked out. As you can see, light engine and CPO automation testing solutions. Yes. Mm-hmm. FAU, yeah, we changed a little bit of our strategies. We are very much focused on this kind of manufacturing process instead of focused on FAU, because FAU could become with the several models. Yeah. I see. I see. Then maybe, a broader question. In the beginning of last year, the surge of AI power demand was a pleasant surprise to the company. Now, based on your observations of the market trends this year and your order book, anything that surprised the management so far this year? You mean semiconductor sector? Whichever segment that surprised the management team. I would say every sector. Okay. Okay. Business is too good. Okay. For the power testers, may I know what's the order visibility looks like and your shipment lead time? I would say surprise. Yeah. I already guide, you know, actually this is like a whole, it's gonna be whole years. On top of that, you can consider, as I already gave a very clear hint, which is. Mm. Remember back what we had before regarding to the battery booming back to 2022 and 2023. I see. I think that's the best I lead I could give. Yes. I see. I see. Yeah, that's very clear. Thank you. Thank you. Thank you. If you would like to ask the question, please press star one on your keypad. Thank you. Next, we'll have Gerald Tai, JP Morgan. Go ahead, please. Hi, Paul and Jerry. Can you hear me? Yes, we can. Yes. Great. Okay. Hi, okay, congratulations on a very good quarter. Thank you. Also happy New Year, yeah, of course. Just a few quick confirmation. First of all, on the ESS, is it what category is it placed under? Is it ATS, or is it turnkey, or maybe an overseas operations? Just wanted to get that. The ESS market ramp is mostly contributed from I think you may refer to the reasons the Chinese Government would like to do, the infrastructures mostly focus on the power. Okay That's why it brought up this kind of, I would say, huge ESS batteries demand. I think in order to, you know, generate more margins and it cause concerns, we will repeatedly, like last time, you know, do those assembly in China. Okay, it could be recognized under overseas? Yeah. Would you say the margin will be comparable to the previous cycle, the back in 2022? I would not go through the margin, but, you know. Because- We always try our better, best to maintain the growth margin. Sure. I understand that. I'm just curious that for this particular project, would it be like two-year, like multi-year type of duration or yeah? I don't give a timeframe guidance in case of the speculations. Sure, no problem. Okay. Um- Also, uh- However. Yeah We brought out these two, that means this is already all on hand. I'm not talking about expecting orders. Sure. It's February, we still continue receiving the order. We don't stop as today, right? Okay, sure. Understand. Okay. Just also, I was going through the slides, there's some interesting, kind of, products you're showing. First of all, naturally, is that you actually show a FT handler. Just wondering, is this something new or something you previously had the capability of doing that? Or is this something you expect to generate a meaningful contribution in the coming year or so? Yeah. Everything released here, of course, is definitely something we already would about to present or customers is try out at the moment. I think this is sort of the guidance I could provide. You know, like I before I ever mentioned, every product we released here, mostly it's in progress or we already have order. There's no point to present here. Of course. Without the significant orders. Okay, I see. Would you say how you maybe have some differentiation in terms of performance or the kind of like a targeted market for this type of FT handler? Yeah. We try to bring out the customer satisfactions. You know, as we leave here, first, we're able to process dual-side, which is more better throughput, more efficient. Second, we're able to reach out to 3,000 watts, okay? Okay. Yeah. Mm-hmm. Very good at it. Of course. It's more important to me. Okay, I see. I see. Right. That makes a lot of sense. Okay. Also, maybe quickly, another question. Another tool, interesting tool I noticed is. Mm The 799 X series. Yes, correct. Which is supposed to be for the couplers. Would you have some kind of timing and also your expected kind of market share in the main, you know, the main customers? Would you have some kind of comment about, you know, timing and all those stuff? Yeah. I think we all focus on one customers, right? Yeah, sure. Sure. Yeah. Very big one. Mm-hmm. Yeah. We already have a PO. Yeah. Great, great. Yeah. Timing of shipment will be? This is confidential between Chroma and that big customers. Okay, I see. I see. Okay. Also, one last question. Sorry, that's just quite a few here. Okay. Sure. I'm just wondering about the, because there's a lot of, quite a few of testers you list out for... Yeah The CPO. Some of them is going to the PIC, some of them is for the- Yeah I guess, the EIC parts. Just how do we think about the kinda like the CapEx intensity of this kind of testing tool, i.e., is it possible to kind of give us some idea, like how big it is kind of, you know? CapEx could be done, I mean, in terms of testing investment, tester investment, among the customers, how is it compared to, like, a traditional transceiver type of, you know, investment? Is or, you know what I'm saying? Yeah. Yeah. Yeah. Mm-hmm. Yeah. Okay. Customers are already, you know, structural out of the four major post manufacturing process for this CPO. I think you may refer to a base indication is you may refer to NVIDIA Spectrum-X switch. Oh. The first stage is scale-up. In order to fulfill your so-called scale-up, which is, you know, the communication between rack to rack. Mm-hmm ... to make this CPO, they already lease out the fourth major stage. We already have Mm-hmm the stage 3 and 4. Okay. Okay, I see. Okay. Yeah. Okay. You see. I think from the diagram, you already probably could figure out each process. Okay. Yeah. I see. Okay. Maybe just one real quick follow-up. In terms of this, optical fiber or optical transceiver- Mm-hmm ... kind of business, in 2025, can you give us, some idea of how big the growth was in, back in last year, roughly speaking? Last year was increased by 26%. Yeah. For this- This year will be outstanding. Far, I can sort of, hint is, okay, Our photonics business current order on hand is already exceeds metrology. That's very good. Yeah. Okay. Well, last question- Certainly, our metrology is declining. It's actually continuing- Yeah ... to have a strong growth, but besides that, our CPO is even, today's order on hand is more than metrology. In a way, you can say this, order on hand could be shipped within the next 12 months or so? Yeah, because the customer is planning to buy around second half. Okay, that's very, very impressive. Okay, thank you so much. Yeah. I'll get back to the queue. Appreciate it. Thank you. As a reminder, please press star key and number one on your keypad if you would like to ask the question. Thank you. Next one, Alex Wang, Bernstein. Go ahead, please. Hi, sorry, just I have a follow-up question. I just want to confirm, did you just say this year photonics order has exceeded your order for metrology this year, or your metrology revenue last year? I think current our order on hand for photonics versus, We also have order on hand for metrology, I mean, currently CPO, sorry, photonics is more than metrology. I see. I assume your metrology this year will also expand quite significantly versus last year, right? If you want to look for the really big volume, it should be next year. Yeah. For, okay. Large volume on metrology revenue will coming from next year. Sorry, this metrology is the foundry, the RDL [audio distortion], metrology- Yeah ... that we talk about? Yeah. Okay. I'm not saying metrology will be declined, I just say, you know, today's order on hand. Oh, I see. I see. Okay. Okay, cool. Thanks. Yeah, thank you. Thank you. Ladies and gentlemen, we thank you all for your questions. There are currently no questions at the moment. We're going to close the meeting. Thank you. We thank you for your participation in Chroma's conference. There will be a webcast replay within an hour. Please visit www.chroma.com.tw/investor/index under the Investor Relations section. You may now disconnect. Thank you and goodbye.