Good day, ladies and gentlemen. Thank you for standing by. Welcome to the ACM Research Q2 2021 Earnings Conference Call. Currently, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. I will turn the call over to Mr. Gary Dvorchak, Managing Director of The Blueshirt Group. Mr. Dvorchak, please go ahead. Thank you, good morning, everyone. Good evening in China. Thank you for joining us on today's call to discuss Q2 2021 results. We released results after the U.S. market closed yesterday. The release is available on our website as well as from Newswire Services. There's also a supplemental slide deck posted to the investor portion of our website that we'll reference during our prepared remarks. On the call with me today are our CEO, Dr. David Wang; our CFO, Mark McKechnie; and Lisa Feng, the CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide two. Let me remind you that remarks made during this call may include predictions, estimates, or other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future. They are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under risk factors and also in ACM's filings with the Securities and Exchange Commission. Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements. Certain of the financial results that we provide in this call will be on a non-GAAP basis, which excludes stock-based compensation, a loss relating to a change in fair value of financial liability, and an unrealized gain in trading securities. For our GAAP results and reconciliations between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website. With that, let me now turn the call over to Dr. Wang, who will begin with slide three. David? Thank you, Gary. Good day, welcome to today's call. We had another productive quarter with solid financial results. We delivered record revenue and shipments with good profitability. Q2 results reflect ACM's growing customer base, technology leadership, expanding product line, and increased production scale. Revenue grew to $54 million, up 38% year-over-year. Shipments were 82 million, up from 45 million in the Q2 of 2020. We delivered a good balance of growth and profitability, with a 40.5% gross margin and 10.4% operating margin. We are committed to drive profitable growth as we increase our investment in R&D to drive innovation, further strengthen our existing product portfolio, and grow our addressable market with new product. On the bottom line, we reported $0.19 of net income per diluted share, compared to $0.29 in the same period last year. We ended the quarter with $70 million of cash. In addition, we hold SMIC stock market share worth $31 million as of quarter end. I will now discuss the recent operational highlights on slide three. First, our Q2 revenue growth was broad-based, driven by current and new products and current and new customers. Our wet cleaning and other front-end process tools represent 85% of total sales in Q2. We had good growth from our flagship SAPS product, with incremental contributions from our semi-critical tools. Advanced packaging, other products, service, and spare grew significantly to 15% of sales versus about 3% last year. The strong growth of this group was driven by advanced packaging tools, including wet etcher, stripper, developer, and coater, and a bigger increase in our service and spare parts business. This first-generation semi-critical and advanced packaging tool accelerated our revenue growth and further strengthened our position as a leading supplier in the China semiconductor industry. The higher mixing of this product, however, partially dilutes our gross margin during this introduction stage. We enter this new market segment to capture the strong demand from our China-based customer and to deepen the moat that insulates our flagship product from competitors. In cleaning, our newer semi-critical tool, ACM flagship SAPS, TEBO, and Tahoe products, will cover more than 80% of the total cleaning market opportunity. In advanced packaging, our newer ECP ap product line expanding our current portfolio with highly differentiated products. Put it all together, we remain committed to our 40%-45% corporate gross margin target. As a part of our normal product management. We expect improvement in gross margin for our semi-critical and advanced packaging tool. This will come from typing feature content as we early model and beta a range of options for customer evaluation, and a cost reduction in later generation models. We also expect a cost benefit from volume production. Meanwhile, gross margins for our flagship cleaning product remain consistent with the past period, which we expect to continue. ACM's strategy is to enter a market with advanced differential products, such as our flagship cleaning product, our ECP tools, advanced furnace tools, and other new innovative product. This product allow us to win major customer and provided us the profits to fund future product development. It also allows us to enter middle range or lower-end product that may come with a lower margin in early stage, but allow us to capture a much larger market opportunity as we scale the business. We remain committed to our gross margin target, which we believe we can achieve by balancing continuous innovation at high-end with a disciplined product management, cost engineering, and production scale. Let's turn to slide five, discuss ACM growing customer base. We have five major front-end customer in foundry, 3D NAND, and DRAM. In 2021, we expect Far East Group and YMTC to remain our top two customers. We expect good growth from them this year. However, each may represent a lower percentage of total revenue as we expect to see significant growth from other customers. We also expect a contribution from SMIC, SK Hynix, and CXMT. Importantly, we recently received new orders for several tools from SMIC for the H2 of the year. During the past 12, 18 months, our team has done a great job of broadening ACM tool content at SMIC, including a full range of cleaning product and ECP tools. We are getting indication of higher demand from SMIC in 2022. It is still early. SMIC demand is subject to further licensing progress by them with other U.S. equipment supplier. We recently added a number of new China-based semiconductor customers who manufacture power, analog, CMOS, image sensor, compound semiconductor, and other devices. This customer, including four of five tier 2 player and a handful of new tier 3 and other customers. Although each is relatively small, this group of new tier 2 and tier 3 customer as a whole could contribute 10% or more 2021 revenue. Newer customer are investing in new capacity to supporting growth of 5G, IoT, and EV technology. ACM has good penetration with a range of tool, including SAPS, semi-critical cleaning, ECP, and the furnace products. Our third customer growth is advanced packaging and other processing customers. Top customer have including JCET, Tongfu, Maples, and Wafer Works. In Q1, we discussed the order from two advanced packaging house, and we now expect to add more customer as moving through the year. Collectively, we expect a significant growth from the group, driving by increased industrial focus from advanced packaging, penetration of new customer, and a new product cycle for ECP ap tools. Looking ahead, we believe that our current customer base represent a significant opportunity for ACM. Most of these customer are still in early or middle stage of the multi-year capacity expansions. We remain committed to further broadening our customer base as we believe every major semiconductor manufacturer can benefit from our technology. Please turn to slide six. We deliver total shipment of $82 million in the Q2, a new record in the company's history. Shipment in Q2 were $28 million higher than revenue. The difference largely represent shipment of first tool awaiting customer acceptance. We view this as a positive indicator as it reflects demand for new product and from new customer. This level of shipment is a testament to ACM production team in our Changzhou factory. We are scaling capacity to meet strong customer demand in a generally tight supply chain environment. Our in-house high-performance factory and the strength of our manufacturing team are helping us manage near-term supply chain constraint. This gives us confidence in our ability to navigate environment entering the H2 of this year. We plan to begin production in the second building of our Changzhou factory in the Q3 of this year. We have increased our capacity plans and now target a run rate exceeding Q4 of this year that represent more than $500 million of annualized production capacity. Upward from $350 million at the beginning of this year. We expect to further increase production capacity in 2022. Our long-term plan is to build a production and R&D center in the Lingang region of Shanghai. The 1 million sq ft of floor space will enable us to increase our annual production capacity to $1.5 billion. We completed additional architecture and design work in the Q2, with initial production now marked in the beginning of 2023. Please turn to slide seven. We continue to invest in new products to broaden our offerings. Today, I'm pleased to announce Bevel Etch, extension to our wet etch product line. This product using a wet etch method to remove dielectric, metal, and organic material films, as well as contaminants on the wafer edge. ACM etch approach minimize impact of etch contamination for later process steps, and thus improving manufacture yield. The bevel etcher product leverage ACM's wet processing expertise to deliver performance benefits compared to dry approaches. It consume less chemical and support a broader range of device type and process steps, including 3D NAND, DRAM, and advanced logic process. We expect to ship our first tool for high volume manufacturing to China-based logic manufacturer this quarter. Additionally, with ACM proprietary technology, this new Bevel Etch product can achieve more accurate and efficient wafer centering alignment. This enable precise bevel etch and will enhance product yields and wafer throughput. In addition, we are currently developing advanced technology to deepen our leading market position in cleaning, which we will add more products to our portfolio in 2022. We remain bullish in our ECP product line. In front-end, smaller geometry require advanced plating solutions. Meanwhile, back-end advanced packaging are becoming more important as the industry looks for packaging innovation to drive higher performance as the industry moves beyond Moore's Law. Our ECP product line indicate ECP map, a front-end tool for damascene copper interconnect. The ECP TSV for through-silicon via also for front-end, and ECP ap for advanced packaging. We believe the total global market for ECP will triple from $5 million last year to up to $1.5 billion in the coming years. Although we did not revenue in the Q2, we deliver three first tools to three customers. We expect to deliver a high volume ECP tools in H2 this year. With a good revenue contribution from repeated shipment in Q3 and Q4. We also continue to see strong interest for our Ultra Fn Furnace joint process tool portfolio. We deliver several first tool, including doped and non-doped poly LPCVD in the H1, and expect to deliver additional units as we progress through the year. We remain on track to add high temperature oxidation, annealing capability to our furnace product line in the Q3 of 2021. Building on that, the next major development in our furnace roadmap is a batch atomic layer deposition or ALD process. We view this as the most challenging and promising product for advanced manufacturing nodes. We expect the furnace product cycle to become more meaningful in 2022 timeframe. We are making significant R&D investments in two major new product categories to achieve our goal of doubling our total addressable market from $5 billion today to more than $10 billion. We continue to bring in top engineering talent to support these programs, and are confident our team will deliver products and move forward with customer evaluations on the first product line in the H1 of next year, and the second product line in the H2 of 2022. I'm happy to report we made good progress with the potential U.S. and Taiwan-based customers since our last call. Despite the COVID-related travel restriction, our team is heavily engaged in business development. We are confident that we can secure orders from at least one new major first-tier global semiconductor manufacturers in 2021. Before I provide our updated 2021 outlook, let's discuss the status of the stock market IPO of ACM Shanghai. We continue to make good progress. On June 10, 2021, the Shanghai Stock Exchange submitted ACM Shanghai's application for registration for its stock market IPO to China Securities Regulatory Commission, CSRC, moving us a step closer towards our goal. We are hopeful that the CSRC approves and complete our registration soon. When we receive this CSRC approval, we estimate that the issuance process will take another one to two months. Keep in mind that the timing is subject to numerous factors outside ACM Shanghai control. We are confident that our eventual STAR Market listing, combined with our Nasdaq listing, can provide a strong foundation to accelerate our mission to become a major global player in semiconductor equipment industry. Let's move to our 2020 outlook on slide eight. Our guidance reflects optimism about our growth opportunity for 2021. Based on our strong results through the Q2 and improved visibility for demand and our supply chain through year-end, we have raised our outlook for the full year. We now expect the revenue to be between $225 million and $240 million, upper from the previous range of $205 million-$230 million. The revised revenue range represents 48% annual growth at the middle point. Our updated outlook for 2021 is based on several key assumptions. First, the global COVID-19 situation continues to improve. Second, the stability in U.S.-China trade policy. Third, a range of a spending scenario for the production ramp of key customers. Fourth, variance in the trajectory of the DRAM recovery. Finally, a range of the timing of customer acceptance of first tool. Our result and outlook demonstrate a successful execution of our strategy. Our strong growth is supporting additional R&D spending on new products. We're building our global sales and marketing resource to penetrate the new customer in new region. We are scaling production capacity to support our long-term growth plan. Our mission to become a major equipment supplier to the global semiconductor industry remains on track. To conclude, I would like to thank our employees for their hard work and dedication. I also want to thank our customer, partners, and shareholders for their continued support and confidence in ACM Research. I will now turn the call over to Mark to discuss the financial results in more detail. Mark, please. Thank you, David, and good day, everyone. We delivered solid financial results in the Q2. Unless I note otherwise, I'll refer to non-GAAP financial measures, which excludes stock-based compensation and unrealized gain in trading securities. The reconciliation of these non-GAAP measures to the comparable GAAP measures is included in our earnings release. On the Q2, shown on slide nine. Revenue was $53.9 million, up 37.9%. Revenue for single wafer cleaning tools, which includes SAPS, TEBO, Tahoe, and our semi-critical cleaning, was $45.5 million, up 36.4% from $33.3 million. We had no revenue for ECP, furnace, or other technologies during the Q2. As David noted, however, we delivered three first tools in the quarter, and we expect more revenue contribution in the H2 of the year. Revenue for advanced packaging, excluding ECP, services, and spares, was $8.4 million, up from $1.2 million in 2020. Total shipments were $82 million versus $45 million in the Q2 of 2020, and $74 million in the Q1 of 2021. This includes deliveries for revenue in the quarter and deliveries of systems awaiting customer acceptance for potential revenue in future quarters. This represents another quarter of record shipments, a great accomplishment by our production team, given industry-wide supply constraints. Gross margin was 40.5% versus 49.7%. This was at the lower end of our normal expectation range of 40%-45%. The decrease in gross margin, as David mentioned, was due in large part to product mix. We expect gross margin continue to vary on a quarterly basis due to a variety of factors, including product mix and manufacturing utilization. Operating expenses were $16.1 million versus $11.2 million. The increase in operating expenses reflected higher R&D on new products, our expanded U.S. sales team, and legal costs related to our U.S. civil suit and the China STAR Market IPO. R&D expenses grew by 52% to $7.7 million, or 14.2% of sales, versus $5.5 million or 12.9% of sales last year. The increased R&D intensity reflects ACM's commitment to new products and innovation. We expect to continue to increase our R&D spending in 2022. Operating income was $5.7 million, down from $8.2 million. Operating margin was 10.5% versus 21%. Unrealized gain on trading securities related to the change in the market value of our SMIC investment was $3.8 million in the Q2 of 2021. Note that we exclude this non-cash item from our non-GAAP results. Tax expense was $15,000 versus $1.9 million in the year ago period. Net income attributable to ACM Research was $4.1 million versus $6.2 million in the year ago period. Net income per diluted share was $0.19 compared to $0.29 in Q2 of 2020. Tax items and the effects of foreign exchange fluctuations on operating results provided a net headwind of $0.3 million or $0.01 per share in the Q2 of 2021 versus a net headwind of $0.9 million or $0.04 per share in the Q2 of 2020. We'll now review selected balance sheet items. Our cash balance was $70.2 million at the end of the Q2 versus $78.8 million at the end of the Q1. In addition to the cash balance, we also had trading securities of $31.3 million related to our SMIC investment. This includes a significant unrealized gain from our original purchase price. Total inventory was $136.9 million at the quarter end, up by $33.6 million from the prior quarter. The quarter-on-quarter increase was driven by two items. First, finished goods inventory grew by $16.8 million- $64 million. This represents first tools that have been delivered to customers for evaluation and are carried on our balance sheet at cost, pending potential customer acceptance. The second item is work in process and raw materials, which in total grew by $16.8 million from the prior quarter. This was due to purchases to support shipment growth expected for the remainder of the year. Short-term borrowings at quarter end were $22 million, down from $23.5 million at the end of Q1. Long-term borrowings were $18.7 million, up $1.3 million from the Q1. Cash flow used by operations was approximately $10 million for the Q2, but it was slightly positive for the H1 of the year. For 2021, our base case plan for capital spending is about $15 million. This includes $2.8 million already spent through the H1 of the year. Our 2021 investments will be primarily focused on capacity increases at our Chuansha factories, investments to support our R&D programs, and planning and some initial spending on Lingang. In sum, we continue to execute on our strategy. We are participating in the growth of major new IC fabs. We're ramping production, and we're developing and delivering new products to a growing list of customers. We're positive on our opportunities in China and expansion outside of China. We remain committed to achieving our mission to become a major player in the semiconductor equipment market. Let's now open the call for any questions that you may have. Operator, please go ahead. Thank you. At this time, we would like to take any questions that you might have for us today. As a reminder, to ask a question, you will need to press star, then one on your telephone keypad. Again, please press star one to ask a question. To withdraw your request, you may press the pound or hash key. We'll pause for a moment to compile the Q&A list. We have our first question coming from the line of Patrick Ho from Stifel. Your line is open. Please go ahead. Thank you very much. I congratulate you on a revised outlook. Maybe for David or Mark. The semi equipment industry has gone through a lot of supply chain constraints over the past quarter. Given your results and your outlook, it looks like you're managing through it very well. Can you just qualitatively give a little bit of color on whether you're seeing any supply constraints? Your supply chain is probably a lot different than some of my American companies. I was just wondering how you saw supply chain constraints during the quarter or if any going forward. Okay, thank you. Actually you can see that the market is moving, the components supply get tighter and tighter. We do see some long-leading items get even further longer. We're looking for the early ordering or early purchases. There is a long-leading item. We do see some components get longer, which impact us. However, we get a pretty much good control, and we'll continue to see that hopefully this issue get improved. At this moment, we feel comfortable about our revenue this year. Actually, we're also confident about also our shipment this year, too. Great. That's helpful. Maybe this is my follow-up question for Mark. Gross margins between the 40%-45% range. A lot of moving pieces every quarter. As we look at the high shipment count relative to new tools and first-time tools to customers, how do you balance that versus your overall, I guess, normal operations? If you get a quarter of multiple systems, that could weigh a pressure on gross margins that take you out of that range. What are some of the steps that you're taking to try and ensure that your gross margins stay within your stated range, given the number of first tools and evaluation units out in the field? Great. Yeah, Patrick, I'll start, and maybe David, if you wanted to add to it. Look, Patrick. Sure. It's an art and a science, certainly. Right now, demand is quite strong, and so we're focused on our production. We do what we can, of course, to balance our revenue items versus our first-tool shipment items, and to balance the gross margins. Many times, really, our customers have strong demands, and we do what we can to support our customers. It's very important for us to focus on innovation at the high end, but then we're also moving to round out the product market to create a moat between us and our competition. We do feel very comfortable that we can balance all the items to deliver the gross margins in the 40%-45% range. David, do you want to add anything to that? Yeah. Actually, you mentioned quite a bit. I want to add something. Really, this moment, I think for us, we want to get a balanced product portfolio. You see that, say a year ago, most of our shipment is single wafer cleaning, and those are normally higher margin, and those margins still keep on changing. As we introduce the semi-critical cleaning and also more of advanced tool in the packaging, and they are slightly lower margin product come out. When you combine together, that's kind of a margin you see, the dilution. However, as we continue mature our product, even in a semi-critical tool, and also control our cost for manufacturing, and also scale production. Plus, with additional innovation product, ECP continue mature cell, and also advanced forefront has come out, and so we'll see that balance continue. We believe at this moment, we try to also secure our position and also especially keeping competitor getting to our flagship product, as it was to get us semi-critical or other relatively low profit product. As I said, with our confidence, with our also future innovation keep going, even add a new cleaning function, more of a new feature, even to our cleaning major product, we'll see that margin eventually get it back. We're still confident in 40%, 45%, as I said, continuing innovation and the new product development, that will help our margin keep going in the range. Great. Thank you very much. Our next question comes from the line of Quinn Bolton from Needham & Company. Your line is open. Please go ahead. On the ECP sort of outlook and hoping you might be able to spend just a little bit more time talking about the ramp that you expect for ECP. Maybe if you could give us a sense how many ECP tools you have waiting, customer acceptance, and any thoughts whether ECP might be able to get to 10% of revenue next year as it ramps and customers accept tools. Okay. You are looking at ECP product. We have actually, I should say, three major categories. Let me clear that. One is a damascene process. We call ECP map. Second one, we call ECP TSV, major for the TSV plating. Number three is actually our advanced packaging tool, which we deliver for the packaging, fan-out, and peel off, all other advanced packaging requirement. Number four, we come with actually another copper plating for the compound semiconductor, a relatively small size, six inch, and mostly eventually expand eight inch. With that all product portfolio expanding, this year, we see quite a bit of shipment to the new customer. We are looking for actually probably 20+ total tool that we will deliver total again this year. Some of them are rec and revenue, but most of them, I should say, it's hard to tell right now, but some of them will be technical connection. again, obviously next year, will become a repeat order, and then that will be real added bigger revenue booster or revenue, I call the product, and to our portfolio next year. It sounds like if you've got $20 million+ of tools delivered this year. It's another $20 million. 20 tool. Number. Not a $20 million. 20 tools. Wow, okay. Yes. Got it. That's a lot of number, right? You know that. Every sale. That's right. Yeah. Got it. It can definitely get to 10% of revenue pretty quickly. Got it. Thank you, David, for that. No. Mark, just thoughts on OpEx. I know you guys are increasing the R&D to invest in all the new products, but as we look at the quarterly progression of OpEx, can you give us any sense as to what kind of increases you might expect into Q3 and thoughts whether OpEx would increase further in Q4, whether it would follow normal seasonality and maybe tick down a little bit in the Q4? Thank you. Yeah. We don't give a lot of detail on our OpEx. We tend to guide on the top line. For the year, we think the OpEx should be 28%-29% of sales. Kind of a good mix of R&D that we talked about. Sales and marketing, then followed by G&A. Yeah, you don't expect any kind of significant changes in the H2 of the year, you should get a little leverage in the back half of the year on the overall revenue growth. Got it. Thank you. Our next question comes from the line of Krish Sankar from Cowen. Your line is open. Please go ahead. Yeah. Hi, thanks for taking my question. I have two of them. First one, David, on this Bevel Etch using wet chemistry, who are the main competitors? Because it seems like most of them use dry. I'm just trying to figure out who the comps are on the Bevel Etch process. I have a follow-up. Great. Actually, like you said, I should say in the last probably 10 years, a lot of bevel etchers by the dry etch process, which I should say, it's pretty good at performance. You have other particles remaining on the etcher space, right? For that portion, you have to really got to clean again. With the wet process etching tool, you are just wet etch process, making the much better profile, and also give you clean etcher with almost no particle on top. That's really helping reduce the film, or the particle contamination, and the etch to the etch die. For our case, actually, also innovative method, as I mentioned, we have a very precisely alignment to control the center or to test the center wafer, and so therefore, we can reach much better centering performance, therefore reach much better control for the bevel accuracy leading to the better yield, right? That's our product. Got it. Very helpful. Then just a follow-up on electroplating. Thanks for the color on the different drivers for electroplating. Curious, David, you mentioned that the electroplating market could triple to $1.5 billion in the next few years. I understand the different drivers like copper yield, damascene, and compound semi, but it almost seems like for the last few decades, this market was under half a billion. The throughputs are pretty high, the ASPs are pretty low. Curious, what gets you to a tripling in market size to $1.5 billion? Is it just these four drivers you spoke about, or is there anything else going on, like ASP increases or throughput reduction happening? Thank you. Yeah. Okay, great. I think the major driving force is still from, I should say, probably TSV and also the 3D packaging, right? Obviously, damascene process has been very stable. Obviously, the more volume, more wafer people talk about, that will continue to increase. I think more of the driving we see here is all the 3D packaging. They talk about pillar from 100 micro to 200 micro. They call mega pillar. With this kind of a higher pillar, you need more of a process time into plating such a thicker pillar. Also they talk about 2.5D and 3D. There's a much more 3D application come out, and for the packaging. Obviously, not only for advanced core application, even people today consider even 28 nano or even 14 nano, they try to combine with the advanced packaging technology that further enhance the performance. With that in mind, we think this market continue to grow, right? The people project this year, probably when it reaches $700 million as a total, damascene and the packaging all together. We see that growing opportunity, again, because pretty driving by the Moore's Law, right? People focused on a lot of advanced packaging approach. Very helpful. Thanks a lot, David. Thank you very much. Thank you. Our next question comes from the line of Charlie Chan from Morgan Stanley. Your line is open. Please go ahead. Thanks for taking my question, and great results. David, good evening, and Mark, good morning. My first question is about the lead time between your shipment to the revenue. Maybe Mark, can you please remind us what is the lead time? Maybe I give it first, Mark McKechnie. In this moment, I should say our average lead time around six months already, right? Again, average, right? Some specific product shorter, something maybe longer. It's about two months longer than our previous four-month timeline. That's the answer now. Hopefully, as time going on, we can shorten that product cycle. At this moment, still, I should say supplying a certain long-leading item takes a much longer time to get in hand. That's the major reason. Okay, thanks. I ask this because you talk about your annualized production, right? If I look at Q2, your shipment is above $80 million, and the full year production is exactly $350 million. I'm thinking that when you try to expand your annualized production to $500 million, my question is that when will company's revenue scale will hit $500 million? Wow, that's a tough question. Shipment number will normally announce their real, I call it, final release in almost end of year, right? I can tell you this year, our shipment is much, much higher than last year. Actual number, I still say, might be waiting for Q4 early release. Mention $5 million revenue or shipment, right? Be careful. If it's a shipment, probably easy to reach. Hopefully within next year. Revenue-wise, we're still based on what you say, because a lot of new product and new customer are revenue recognition big time. Again, I can see that a lot of shipment going on, but revenue-wise, we'll give you probably by early next year, then we see more visibility, what is our sales order next year. We have our next question comes from the line of Donnie Teng from Nomura Securities. Your line is open. Please go ahead. Thank you, David Wang and Mark McKechnie, for taking my question. My question is related to your customers. In your prepared remarks, you mentioned about that you recently received new orders for several tools from SMIC for the H2 of the year. I'm just wondering, is there any approval granted by SMIC's U.S. suppliers so that they can start to procure more equipment from ACM Research as well, or is there any other reason behind? For another customer like YMTC. I think YMTC is running out of its phase 1 capacity expansion, maybe by end of this year or maybe by sometime next year. Just wondering if you could kindly give us some update on maybe when will YMTC start the potential phase 2 capacity expansion. This is my first question. Okay. Well, again, regarding licensing, there's a lot of different information flow in the market. We do see some, anyway, and same player in the industry, they said they got a license, and for the entire tool or for the big tool. Also we heard is some even component supplier, they also get a license too. A couple of maybe four-year, one time license. Again, we see that, I call that attention get released. Again, I don't know all this total product, and SMIC can buy, how much percentage get, how much you not get. That information, I really cannot comment. That's I heard so far, what SMIC. However, we do have indication and they try to expansion, their demand, their customer, they really demand their capacity. Next year, they do have an expanding plan, and they're going into next year for SMIC. We'll see, probably as the timing go, reach the end of this year and also maybe Q3, we can see more clear picture on that. Regarding YMTC, as we know, their phase 1 factory almost are full occupied, and by capacity. Probably end of this year that the first phase 1 fab is going to be fully loaded. If you look in their building, I can only say what I say here. Be careful what is very confidential. If you're looking outside the building, they're building next 1, that in the process. By that second building right now, we probably can say by end of this year, they can finish that construction. Again, we're as a major supplier, we're expecting, after they finish construction, they should be expanding their second fab. Recently, I heard that they will make a successful 128 layer manufacturing. With that, their technology be developed. It's very natural thinking they could continue expanding their 128 layer mass production. Obviously, this is a recent game. We're also expecting that going to even 198 or even more of layer R&D, for the coming year. YMTC is a very good customer for us, and we have very good relation. Also we're expanding our product portfolio. Not just only cleaning product, and we're expanding also other, like copper plating and also other furnace product, eventually getting into the YMTC. All the new advanced requirements, especially for their 225-layer and above, we're doing very good, I call it, planning to improving all product we have today to make sure we can meet their requirement. Two year, three year from now, probably that time is 300-layer or even more. We're working very close and to joint develop our new product to meet their future requirement. David, I have one follow-up on SMIC. When you say that you receive new orders from SMIC, is that for their Shanghai fab, the most advanced Shanghai fab, or it's for Beijing, more mature nodes, like above 20 nanometer? Yeah, we got actually from Beijing, their mature nodes. Also, I say that the expansion plan, as I mentioned, they compound also Beijing is most that happen, maybe Shenzhen. That's what we've heard so far. Okay. My second question is probably for maybe longer term business expansion. I think based on your sales scale, if we consider you have maybe 80% of sales roughly from wafer cleaning tools, then I guess it probably will translate into at least more than 10% of the market share in China already, in terms of a wafer cleaning tool. I think probably you are already the biggest one and continue expanding market share in China domestically. I think that kind of market share has been pretty high. Inevitably, you need to expand to more new product for portfolio, as you just mentioned, like ECP, advanced packaging, et cetera. On the other hand, previously, that you are also trying to penetrating into overseas, leading semiconductor customers. I'm just wondering, which targets are the priority right now, and could you kindly give us some update on your expansion in the overseas market? Thank you. Great. Okay. I should say both important. Both the market in China is important, and also outside China important. Actually, let me give you the long-term goal. We are try to make our revenue 50% come from China market and 50% from outside China market. That's why we are actively, hire, building a strong team in the U.S. to approaching leading customer in the U.S. Also, enhance our team in Taiwan, too. Plus, also we are further enhance our sales team in Europe. We believe our core, our provided technology, like a SAPS and TEBO for 3D cleaning without damage, and also Tahoe product, with our, I call it a silicon saving process. I should say that we also add additional new function, new requirement, and for the further strengthening our cleaning product in advanced nodes, too. With all innovation in hand, we're trying to first demonstrate, probably in the China and the Korea market. We believe our product will be eventually penetrate that all major companies in the world. Every key customer, they need a fast technology. As I said, again, our provided technology. There is a real unique approach we're providing. With all the benefit, we think our defensure product will get into the market outside China. We're very confident. We see that there's a big movement and also building as the tide in the U.S. We definitely want to participate that growth market in the U.S., and also obviously can see the growing market in Taiwan. The potential may be something happening in Europe, that people talk about it, too. As ACM today, really we're, again, equal important. Even revenue major come from mainland China right now, however, we do see our future growth and also will come from outside China. I have a follow-up. Because previously impression is like you put more focus on expanding overseas customers, but in past few quarters, it looks like our new products or our new equipment expansion to be faster than expected. We put more emphasis there. I'm just wondering, is this kind of situation a correct way to say, or does that mean that our qualification schedule with the overseas customers continuing to be postponed? Well, again, I say, we're working closely. Because now they're, I should say, not the final material yet. Again, I think we're making progress. When the timing and the reaching, then we'll announce that. At this moment, I said that we're very working closely with the customer. Great. Hey, yeah, sorry, we should probably move on to the next question, please. Yeah. Once again, I would like to remind everyone, if you wish to ask a question, please press star one. We will now limit the question to one per participant to allow for other questions to be addressed. Our next question comes from the line of Chaolie n Tseng from Credit Suisse. Your line is open, please go ahead. Okay. Thank you. This is Jolene. David, you gave us some color on SMIC and YMTC, and can you talk a little bit about CXMT? I'm just curious that ACM has been doing pretty well with all the other major guys in China, but it seems that the business is a little bit slower with CXMT. Thank you. Actually, we do see that business pick up, and probably you see that in two locations. One in Beijing, one in Hefei. Again, we're working closely with them, and we see that there are some I call order. We're already receiving, and from Beijing, their Beijing new factory too. I know they have a bigger 40K expansion, right? That'll keep going and the partial release, that order, we'll say probably most of it happen next year, but they're continually improving their technology and improving their capacity. We'll see. Right? We have been working very close with them too, our cleaning product and also our copper plating, and also we're further try to work with them together, expanding our furnace product, right, get into their production line too, for their evaluation. Thanks to the customer, we hopefully eventually they become a top customer for us, in the coming year soon, right? That's our effort for the year to win the customer. Thanks, David. Our next question comes from the line of Suji Desilva from Roth Capital. Your line is open, please go ahead. Hi, David. Hi, Mark. Congrats on the progress here. On the global customer, I know you said you're going to ship in calendar year 2021, and since you have six-month leads, I guess you have the visibility there. Just trying to understand if this is a production volume or a pilot volume. Is it SAPS, TEBO, or backend, advanced trailing node, that kind of color would help. Thanks. Wow. I really couldn't release any product, right? Obviously, NDA control, even it's not allowed, I talk about which product they're buying. Anyway, we now can say that product, the cleaning tool, and that soon will be the evaluation tool, and hopefully, will be end of the repeat order PO, and that typical process. First of all, the evaluation, even liking of the type of product they gather, all their production verification, then we'll hopefully get a repeat order, right? Anything we'll repeat it what doesn't happen next year, right? That's what we're expecting. Again, it's a good opportunity. That's why we're doing very good effort and make our team really, sales and also the servicing and all other related logistics supporting for this happen. All right, David, appreciate that color. Thank you so much. Bye. Thank you. Our next question comes from the line of Chi Tsai from Jefferies. Your line is open. Please go ahead. Hi, David. Hi, Mark. Over taking a question on, could you give us some color on your A-share IPO? You said it's going to take another one to two months. Can you share what kind of process you are left with the CSRC? What's it going to take for the IPO to go through? Chi, actually, as I mentioned, in June 10, with some actually the SSE, Shanghai Stock Exchange, they submit application to the CSRC. We're going through question answer. Actually, so far, their question give us, we're all answered already. Right? Now I think probably in their internal procedure process, and to get a final approval. Also, just two days ago, we also submitted a Q2 financial review, and to the CSRC also. We'll see. Maybe, they come with some question, come back to our Q2 data. Anyway, we're prepared for that. Again, ACM probably is the first U.S. company, has a headquarter U.S. They also have a Nasdaq IPO, with their subsidiary in Shanghai, and they apply for STAR Market IPO, right? I'm pretty sure this is a really unique and first case. It's reasonable, they take more time, consider, and take more of a cautious effort, especially we have this, I call it a short seller report come out, right. All things put together. We have confidence, as I said, that we're a good housing company and good technology, and with our strategy, and I think we should be overcome in this, I call it, eventually get IPO in the stock market. I believe this will be both really benefit our real expansion plan in China. That's where we believe in will be the win-win, right, for the customer in China and our financial investor in the U.S., and also ACM global growth. It's a good thing to try to work hard and make it happen. Thank you very much. My second question is regarding your R&D expense. I think you have a very big jump on your H1 R&D expense. I think that's very positive given you are expanding your product portfolio. Can you give us some color on your long-term R&D expense? Will it stay, let's say, like high, mid-teens, going to next two, three years? Yeah, good question. Actually, let me put it this way. As I mentioned a couple of earnings calls and previous time, we want to balance and profitability and also growth opportunities. I think probably these last two years, you can say about 10%-11% R&D. This quarter, we get into the 14%. I think probably 15% is a good range and for us to stay. Why? We got a gross margin 40%-45%. This is all operations coming together. You have to get a 10%+. That's kind of a profit leader. We got a balance in the hand, and that's probably give you 15% is our probably number we try to be keeping for next two, three year. Let me add another difference where for other big guy, we spend on the money very efficient. In the last two, three years, we developed copper plating and we developed the furnace. We also spent on semi-critical cleaning. By the end of this year, we are pushing additional new cleaning functions, other even dry technologies to come out with our cleaning product. We are spending very efficient money. We spend every penny and dollar and to maximize our R&D effort. I think 15% is a good number. With that spending, we have confidence. We are getting our new products to come out on a timeline. Also, I think our key for our success or R&D is we are always getting innovative products. Always, I call differential. We don't want to get a me too. That is number one. Number two, we also have a very good team working in Shanghai and working with a Korean market and a Korean offsite. That really give us a strong R&D effort and then really either our product or market. That's really, historically, it demonstrates that. With continued innovation, we are very confident. We'll continue pushing R&D to the next level with a new innovation product come out. Yeah, thank you. That's very helpful. Congrats on the good results. Thank you. Great. Thanks. Next question, please. Yes, our next question comes from the line of Christian Schwab from Craig-Hallum Capital. Your line is open. Please go ahead. Hey, great quarter, guys. I try to sneak in two quick questions, so I'll just ask them quick. Recent news about a leading customer's bond default. Is that potentially going to have any impact on you as question one? Question two is what happens if YMTC gets put on the entity list? Is there any way to ship to them? Mark, you want to answer that, or? I can start. If you finish, the first one on the bond defaults, David's talked about that on prior calls. We're pretty confident that the operations of that customer are solid, and our general thought is that the financing will be available, hopefully from so long as the operation continues to execute that they can seek funding from other areas, and it's more of about an ownership issue rather than a funding operation issue. In terms of the entity list, YMTC is an important customer. I think David talked about we expect growth, but likely a lower percentage. We're monitoring closely, and hopefully they don't get put on the entity list. We feel pretty confident given our manufacturing operation in Shanghai, and a lot of our technology came from there, that we might have some more flexibility to shift should they get put on the list. Of course, it is dependent upon their ability for the other suppliers to get licenses. We'll monitor it closely, and we'll update if necessary. Great. Thank you for letting me sneak in two quick questions. Again, congrats on a good quarter. Great. Thanks, Christian. Thank you. That wraps up our Q&A session. I'll turn back the call over to Gary. All right, guys, I think that's it. Thanks, operator and everyone for participating on the call. I just want to mention some upcoming investor relations events. On August 24th, we're going to present at the Needham Second Annual Virtual SemiCap and EDA Conference. On August 31st, we'll present at the Jefferies Virtual Semiconductor, IT, Hardware, and Communications Infrastructure Summit. In addition, we'll present at the Jefferies Asia Forum on September 9th and the 22nd Credit Suisse Asian Technology Conference on September 10th. Attendance at these conferences is by invitation only for clients of each respective firm. Interested investors, please contact your respective sales representative to register for one-on-one meetings to secure time. This concludes the call. Thank you everyone, and you may now disconnect. Thank you. Bye. This concludes today's conference call. You may now disconnect. Have a great day.