Asmpt (HKEX:522) Q1 2026 Earnings Call

0:01 Good morning, ladies and gentlemen. I'm Ben Po, Head of Investor Relations. And today I will be moderating the call. On behalf of ASMVT Ltd, welcome to our first quarter twenty twenty six investor conference call. Thank you all for your interest and continued support. Please note that all participants will be in listen only mode during the presentation by the management. We will start the Q and A session after the presentation. During the Q and A session, priority will be given to the covering analysts. Before we start, let me go through our disclaimer. Please note that there may be forward looking statements about the company's business and finances during this call.

0:47 Such forward looking statements could involve known and unknown uncertainties and risks that could cause actual results, performance and events to differ materially from those expressed or implied during this conference call. For your reference, the Investor Relations presentation on our recent results is available on our website. On today's call, we have the Group Chief Executive Officer, Mr. Robin Ng and the Group Chief Financial Officer, Ms. Katie Xu. Robin will cover the Group's key highlights for the first quarter twenty twenty six and provide outlook and guidance for the following quarter. Katie will provide details on the financial performance for the quarter.

1:34 Now I will hand the time over to our Group Chief Executive Officer, Robin. Thank you, Pek. Good morning and good afternoon and good evening to all. Thank you for joining us today for our first quarter twenty twenty six earnings conference call. Now let me start with the key business highlights for Q1. This quarter, I'm pleased to share that ASMVT achieved the highest quarterly bookings and billings in the last few years. We continue to see AI drive demand across multiple products. As the rapid evolution of AI increases the value and complexity of back end semiconductor manufacturing.

2:23 New AI architectures demand heterogeneous integration, tighter interconnect pitch, higher bandwidth and power efficiency. And these requirements are driving higher precision, alignment and process control needs across packaging flows, benefiting a wide range of the group's product from TCB, photonics, CPO, flip chip and mainstream wire and die bonding, and pick and place solutions. Let me provide some color on these specific product areas. First, let's look at TCB. In Logic, we delivered sizable shipments for chip to substrate applications, reinforcing our leadership in chip to substrate TCB.

3:17 We received bookings for four out of five pitch chip to wafer TCB tools, featuring our flux less plasma based AOR technology from a leading advanced logic customer. We are also actively engaging key logic players across multiple programs and we are well positioned for more opportunities as the industry advances towards more complex logic chip architectures. In memory, our TCB2s remain at the forefront of technology development. A key memory player is using a flux based TCB tool for assembly and this customer is also qualifying our Fluxus AOR solution for HVN4 16 HYP.

4:06 Next, we'd like to share an update on Photonics. I'm pleased to report that our Photonics revenue grew nearly fivefold year on year, benefiting from strong demand for high speed optical transceivers of 800 gs and above. In addition, our 1.6T transceiver solution received bulk orders from leading optics suppliers in the data center networking supply chain. This demonstrates strong traction for our optical transceiver solution as the market leader. I would like now to touch a bit on co packaged optics for CPO before we move on to the next item. CPO represents a paradigm shift in AI system design, bringing optical engines closer to compute silicon to reduce electrical losses, lower power consumption and improve system efficiency.

5:08 Our CPO solutions enable high precision bonding to integrate diverse components including fiber array unit, micro lens, electronic IC and photonic IC into a single high performance optical engine. We have deepened our engagement with multiple leading global players and this positions the Group well to gain market share as CPO adoption accelerates. Looking now at our flip chip solutions, I am pleased to update that they registered strong bookings growth both Q on Q and year on year. This momentum is coming from two areas. First, there is an accelerated adoption of 2.5D packaging for larger AI package sizes that is driving a steady pipeline of opportunities for embedded bridge type bonding solutions for both chamber wafer and chamber panel solutions.

6:11 Second, we also gained traction in panel level fan out for radio frequency and power devices. Both these areas are well served by our flip chip solutions which combine cost efficiency, scalability, high placement accuracy and strong throughput. And finally, in our mainstream business, we registered strong bookings for both semi and S and P. Semi's mainstream business benefited from sustained utilisation at leading global IDMs and OSATs, alongside rising demand for AI data centre power management solutions. In China, there was increased demand for wire and die bonding applications.

7:00 For ASMVF, we achieved record bookings in Q1, driven by strong customer demand across AI servers, optical transceivers and China EVs. In particular, SMD high flex, high force solutions for large format boards are a leading choice for AI server assembly. As we broaden our AI customer base, we are fully committed to delivering the highest quality of solutions and services. ASMVT was recently recognized with a prestigious Intel EPIC Supply Award for 2026, the highest supplier recognition award for excellence in business collaboration.

7:48 This is a reflection of our strong technical capability and deep engagement with our customers. With these highlights, now let me hand over the time to Katie who will walk you through our Group and segment financial performance. Thank you, Robin. Good morning and good evening, everyone. Before I start, I would like to say that unless otherwise specified, the numbers I'll be referring to today are for the group's continuing operations only with adjustments made on the non HKFRS measures. This slide covers our group's financial results for Q1 twenty twenty six. In Q1, the group delivered revenue of $507,900,000 flat Q on Q, but up 32.0% year on year driven by ASMVT and semi.

8:39 Group revenue came in above market consensus and was the highest in the last three years. Group quarterly bookings exceeded expectations with S and P bookings at a record level. Group's booking reached US727.0 million dollars up 46.0% Q on Q and 71.6% year on year, the highest in the last four years. This strong growth came from multiple products, notably, SMT products, wire bonders and die bonders and photonics. Group adjusted gross margin was 39.5% Q on Q, up three fifty seven basis points due to higher gross margin and a revenue contribution from semi.

9:26 The year on year decline of 151 basis points was due to a higher revenue contribution from SMP. Group's adjusted OpEx declined 4.6% Q on Q, but increased 12.4% year on year, largely due to unfavorable FX impact and from strategic infrastructure and R and D investments as we have guided for 2026 during our last earnings call. Both adjusted operating profit and adjusted net profit improved Q on Q and year on year due to higher revenue and operating leverage. Adjusted EPS was at HKD0.81 dollars up 118.9% Q on Q and 189.3% year on year, which was above market consensus.

10:14 Moving on to the Semiconductor Solutions segment. In Q1, semi revenue delivered US274.5 million dollars up 12.2 Q on Q and 14.6% year on year. Q on Q growth was driven by high end die bounders and PCB, while year on year growth came in from multiple products largely driven by AI related applications. Semi bookings were US309.6 million dollars up 22.6 Q on Q and 43.2% year on year due to higher demand for wire bonders and die bonders driven by China OSETs, high end smartphone related applications, AI related power management applications and optical transceivers.

11:01 Achieved a book to bill ratio of 1.13, which marks three consecutive quarters of improvement. STEMI adjusted gross margin reached 46.4% achieving the guidance we set last quarter. Adjusted gross margin improved by five ninety four basis points Q on Q, but declined slightly by 37 basis points year on year. The significant Q on Q improvement was mainly driven by high volume and favorable product mix. Semi adjusted segment profit was HKD309.4 million, up 165.9% Q on Q and 16.8% year on year. The strong Q on Q improvement was mainly driven by higher gross margins and operating leverage.

11:48 Let me move to S and P. S and P Q1 revenue was US233.5 million dollars down 11.0% Q on Q, but up 60.7% year on year. Q on Q decline was due to seasonality, while year on year increase was due to strong demand from AI servers and China EVs. As mentioned earlier, S and P achieved record bookings of US417.4 million dollars up 70.0% Q on Q and 101.1% year on year. This was primarily driven by strong demand from AI servers, optical transceivers and China EVs. Together with robust China demand arising from global data center expansion.

12:36 S and P adjusted segment profit was HKD141.8 million, down 28.3% Q on Q due to lower volume, but it improved year on year. Now let me hand the time back to Robin for the outlook and the revenue guidance. Let me present our Q2 twenty twenty six revenue guidance. The group expects Q2 twenty twenty six revenue to be in the range of US540 million dollars and US600 million dollars At the midpoint of US517 million this represents an increase of 12.2% Q on Q and 37.0% year on year.

13:23 Notably, our midpoint revenue guidance exceeds current market consensus and it will be mainly driven by semi. Group bookings in Q2 twenty twenty six are expected to remain elevated for both segments, though SMT will be down Q on Q due to the high base effect from Q1. The continued proliferation of AI expected to drive structural demand growth for both semi and SMT in 2026 across multiple products. These include our flagship TCB and HP solutions, photonics and CPO, to mainstream wire and die bonding, and pick and place solutions that enable AI infrastructure deployment.

14:19 Looking ahead, structural AI driven demand is expected to support revenue growth across both semi and SMT in 2026. This concludes our first quarter twenty twenty six presentation. Thank you. And we are now ready for Q and A. Let me pass the time back to Ben to facilitate. Thank you, Robin. Ladies and gentlemen, we will now begin the Q and A session. To ask a question, please click raise hand on Zoom and I will request you to unmute. Please limit yourself to two questions each time. And I see a raised hand from Gokul of JBM. Gokul, please unmute and raise your question.

15:07 Yes, hi. Good morning. Thanks, Ben, and good morning, Robin and Katie. Great results and also thank Robin for your amazing leadership over the years. So, first question is on memory TCB. What are we seeing in terms of bookings and potential for bulk orders for memory TCB, given that we haven't really seen any big bulk orders in the last maybe couple of quarters now. And at the same time, the R and D progress seems to be quite good on both flux based and flux less. And in addition to that, could you also talk a little bit about your engagement with the bigger memory vendor that the market is talking about, which has largely been using internal DCB tools.

16:01 Do you see that there is an opportunity opening up with this customer, which will definitely expand your addressable market? Thank you, Gokul. I think there are a number of questions between your questions. Let me address, I think, the first one first. You're asking about memory TCV bookings and potential for bulk orders for TCV, any bulk order in the last few quarters. Last bulk order that we received was in Q4 twenty twenty five. We're still confident that, you know, we are well placed, you know, to you know, in a position well well positioned to receive, you know, orders, you know, from memory makers as far as they're ready dish out orders for equipment suppliers ourselves.

16:53 Now I think your second question is on Fluxless, R and D Fluxless. How is it going? I think we are making good progress, especially on the logic side. As we have mentioned, we have won four tools in Q1 for COW fluxes applications. We believe this is a start of this particularly exciting program. I think as the industry continue to migrate to more complicated GPU or even ASIC architecture, I think at some point they may have to switch to a chiplet kind of configuration rather than using SOC and that's where the opportunity to use our TCP fluxes two forty two wafer application would be there. So since now that we are already in that supply chain, think, again, I think we are really well positioned to capture more opportunities for COW fluxes application going forward.

18:04 I believe your third question relates to about the biggest memory player who's used to using internal TCP tools. Yes, I think we are unable to really name or confirm any specific collaboration with any customer. I hope you understand. What I can say that we are in the process of finalizing an evaluation program with a team and with player. We definitely see this as a positive step, possibly in the future enabling our group, you know, our group's technology for memory as a process standard in the future. So we are excited about this potential collaboration going forward.

18:55 Go go right quick, just was going back to the question the memory TCP bulk order. Just want to we want to reiterate, right, our TAM forecast actually of the $1,600,000,000 is intact and you're probably referencing to some of the recent adjustments for the next generation of GP or HPM4 roadmaps. They are leading to some maybe, you know, quarter to quarter, there might be some variability in the times of a customer's decision. But the our activity level remains very healthy, but it could be uneven from quarter to quarter. Got it. That's very clear.

19:42 Second question I have is on your photonics, obviously very strong growth, five x kind of growth. Could you help us size the, like, photonics business? I think you've said it long back that it was probably under $100,000,000 annual run ballpark, or is it still much is now much bigger than that? Yes. I think Goku is very close. When we transition Yeah. Maybe answer the photonics first, Goku. Go ahead. Go ahead, Robin. I'll I'll take a later then. Yeah. Your line is trading up actually, Gokul.

20:27 Okay. Anyway, I'll answer the photonics question first, Gokul. Yes, indeed, when we look back in a deep dive into the photonics and the CPO market recently, actually the TAM looks even more promising than before, right? But we are not ready to disclose the TEM at this point in time. But I can tell you the TEM looks bigger than before. So when we combine the optical transceiver TEM and the CPU TEM, I must say that the TEM looks interesting. We are definitely paying a lot of attention in this area. And fortunately, I think for photonics, we are already a very strong player in the optical transceiver market.

21:18 And I think for the CPO, you probably will follow-up with your question on CPO as well, I think we're well positioned with some key players already. Our solutions, I would say, have been designed in with a number of key CPO players. So when that adoption takes place, think we're in a good position to capitalize this opportunity for CPO. It'd be back to you for second question, please. Yeah. Thank you very much. So I think just to follow-up on that CPO comment, Robin. The market understanding, obviously, is that hybrid bonding plays important role in CPO for the EICPIC attach. And obviously, your hybrid bonder is still in qualification, especially the second generation. So could you talk a little bit about the progress there? And maybe also help clarify, I think there are multiple die attach steps, not just hybrid bonding, I think beyond that as well. So just wanted to understand, like, what is the span of, like, ASMVT environment when it comes to CPO just beyond our EICPSC attach?

22:27 That's right. I think we also said in MD and A, we are participating in several key high precision bonding areas for CPO, one of which is FAU attach on PIC. The other one is what you mentioned, the stacking ESC on PIC. The third application we can think of is micro lens attached on PIC and also finally the whole optical engine on the substrate. So we have solutions actually for all these key bonding solutions. As I said we feel particularly quite excited about the CPO market and as I said earlier I think the TAM looks interesting maybe not in the initial years but I think the CPO will accelerate probably from 2028 onwards and the TAM in fact looks very interesting for CPO. So these are the areas we are participating. Now back to your question on EIC and PIC, hybrid bonding is one solution.

23:38 I think CPO players are also exploring whether they can use TCB you know, for their application as well. So if they use TCB, that will be also very an interesting market segment for us. Understood. Yeah, thank you very much. I'll go back to the queue. Thank you. I'm seeing a next raised hand from Daisy. Daisy, could you please unmute yourself and raise question? Yeah. Thank you. And my first question is regarding the OSAT CapEx. So we saw that the OSAT CapEx is getting higher and higher for this year. So which area do you expect to record the highest growth for the year based on the current order visibility and the regions?

24:32 And also China is the largest revenue contributor last year around 41% of your total revenue within China. Do you see that still advanced packaging, I mean, your TCB and other hyperbonding tools growth outgrow the mainstream or mainstream for this year is also very strong? That's my first question. Thank you, Daisy. In terms of I think your first question is in terms of OSAT treatment. Yes, in fact we are experiencing a strong demand, I would say, on the OSAT front, mainly coming from wire bond, die bond because of the AI demand for infrastructure.

25:19 I think we have been talking about this for a few quarters already but in Q1 the demand is particularly very strong. What is driving this is really power applications that go into data center. So this requires new power devices and because of that new capacities is required so that's driving a lot of wire bond and die bond. And also not forgetting ASMVF well. We mentioned that ASMVF had a fantastic booking in Q1, highest so far in history, largely also driven by various server boards and in there there are a lot of power packages using SIP tools from Asmpt as well. So all this infrastructure deployment and spending are driving a lot of our mainstream tools both in semi as well as in Asmpt.

26:23 Now I think your second question is about China region, AP growth, is it faster than mainstream or mainstream is still very strong? I think typically in China, would say especially on the semi side, the mainstream side definitely stronger than the AP side. However on the ASMV side, the rest of the region still stronger than the China side. So there's a mix in terms of China demand coming from our semi and SMT7. Thank you. Thank you, Robin, for the explanation. And my second question is also regarding the optics in photonic solution.

27:11 So you mentioned that their revenue delivered fivefold increase year on year this quarter. And may I ask why we suddenly saw a very strong pickup in this segment? And I believe you mentioned that regarding the booking, photonic solution is both in your semi solution segment and the SMP segment. May I ask what tools for the SMP and what tools are within the semi solution? Yeah, I think it's really all AI driven, data center driven as you can imagine as the industry continues to increase the silicon compute, the transmission side has to match that capability as well.

28:03 So that drives a lot of growth presently in terms of optical transceivers and the industry is moving from 400 gs to 800 gs to 1.60 gs and we have very very good solution for optical transceivers. This segment has been seeing steady growth for a few quarters already. We've been reporting that so it's nothing new to us. We have been saying that optical transceiver is a good market for us. We have been quite dominant in this space. We've been winning market share as well. So that's something that we are experiencing for many quarters already in terms of photonics. Now your second question is both segments indeed are participating in this area.

28:51 Now for SMT, you can mention in the optical transceivers there are many many components. Some require higher precision than others. So for those components that require higher precision bonding, they use our semi tools for that purpose. For those that do not require a lot of precision, they use our SMT pick and place tool to bond those components. Both segments SMT and SME are actually benefiting from this surge in demand for optical transceivers. Okay, got it. Very clear. Thank you. Thank you, Daisy. Yeah, next I will request KB from CT to unmute. Hello. Hi.

29:40 Good morning. Thank you for taking my questions and especially thank Robin for your past leadership. So, I have two questions. Number one is that I would like to get some more detail on the booking guidance outlook. As you see, right now, our bookings back to a special like S and T are back to a record level. So can we get some for the coming quarters, do we see have a rough sense of breakdown for booking into the, say, semi and S and T? And specifically, which region are we seeing the most growth from? And also, I think last time we mentioned we have we're seeing some improving visibility.

30:25 Is this still the case? So that right now, approximately how many months of visibility do we have right now? Thanks, Kevin, for the question. I think you're referring to booking. Now we as you know, we don't really guide, but we can definitely give you some color. We see bookings in Q2 this quarter to remain elevated. Booking may however moderate Q on Q but still expected to grow strongly on a year on year basis. We believe in large part we continue to benefit from the secular demand for AI related applications and infrastructure spending plus of course overall improving market condition as a whole.

31:23 I'll give you a little bit of color as to the segment booking. For semi, Q2 semi bookings are expected to increase Q on Q and more significantly higher on a year on year basis. However for S and P bookings are likely decrease Q on Q due to high base effect as we have reported Q1 booking for S and T was at record high. So we don't expect the current level to continue on a Q on Q basis. However having said that S and T bookings are also expected to be higher on a year on year basis. Now you asked about visibility.

32:12 Looking ahead, while we are definitely more optimistic about business compared to some quarters back, there is less visibility for the second half of twenty twenty six for the whole group. I think this is pretty normal for business. We can't really look too far away. So I hope I answered your question, Karen. Yes, maybe very quick. I think Kevin was asking about the booking by region. And Kevin, we actually sort of answered it already when we were talking about addressing David's question. Overall, the regional mix will stay relatively stable, but like what Robin was mentioning about the strength of China OSAT. So there will be a little bit more booking from China, but overall, it's quite steady.

33:02 Great. Thank you, Rob and Katie. My second question is on the eMV outlook. I think recently there has been some demand pickup on this technology. I'm just wondering though what type of tool are addressing this kind of demand and also our position in the share allocation in this type of technology. Do we need some special type of TCB that require customization as well? Yes. I think Kevin, I can't hear you properly. I think you mentioned EMIT, right? Yes. Okay. So a couple layers we have to understand on the EMIT program.

33:53 If you are talking about embedded dyed bonding, we believe this is on the last substrate, probably five ten by 500. Unfortunately, TCB, we are not ready for that yet in terms of that kind of panel size because it will take some time for us to deliver a tool of that size for TCB. However if this EMIT program takes off and we believe it will, you know we are already, you know this particular customer is already using our tool for COW application. So they have to, I mean this program proliferate right?

34:39 They will probably need also more tools to place a lot more components on the substrate. So I think we will benefit from that particular area that means on the COW tools which we are already in but if you're talking about embellidone bonding for the immunity we are not there yet. Great, thank you. Okay, thank you, Kevin. Next, I will move to Sunny. Sunny, could you please unmute and raise your question? Hello, could you hear me okay? Yeah, hear Thank you very much for taking my questions.

35:25 Congrats on the very good results. And thank you, Robin, for all your leadership over the years. And so my first question is on your opportunity on logic, especially on chip on wafer. And so Robin, earlier you mentioned the chip on wafer migration for TCP could be somewhat related to chiplet. That was a bit surprising to me because I always think that the chip on wafer migration with TCP should be related to larger package. And so how should we think about from here? You just a core for tools from a leading edge foundry customer. How aggressive are they in migrating to TCB for chip on wafer from here?

36:11 How should we think about when you may get another bulk orders? Would that be in second half? Or will we need to wait until maybe 2027? Okay, thanks Sunny for your question. Now when I mentioned about chiplet, between chiplet and SOC, when the GPU architecture is using SOC, there is less need to use TCB to place the SOC onto the interposer because you don't need that kind of precision. But when you try to when you go into SOC, SOIC kind of packaging, you need more precision to put those chips onto an interposer.

36:59 So that's why TCB will be needed going forward. So I think as the industry migrate from an SOC structure to an SOIC structure, we see increasing use of GCE for that application. So however, having said that, we have been telling you guys that for 2026, the number of tools for COW will not be significant because it all depends on the migration to the next chip architecture. So we believe '26 will not be high for COW, but going forward in the years to come, I think there's a meaningful TAM over there for COW application for logic.

37:45 Now how aggressive is this migrating to COW? Yes, I think I already answered your second question as well. So 26 would not be high, but 27 would be meaningful. Got it. Thank you, Robin. Also, if I may follow-up on my first question. Also, these leading edge logic customer, they are already working on the follow-up solution beyond CoWAS meaning CoPOS. So, yes, so from your perspective, for their CoPOS, they will start from solar for factor, three ten by three ten. And so from your perspective, are you seeing any signs of client trying to pull forward the technology development?

38:30 And for COPOs, how should we think about your overall opportunity, especially around chip on panel? Yes. I think we are as we speak, we are developing tools for COP. So we deal to deliver demonstration tools sometime this year. So that part we are already engaged with the key advanced customer. So that is another exciting area for TCP. So if you look at TCP in general, we have a wide customer base. We have very diverse applications. We don't just depend on certain applications but a very diverse application both on the logic side as well as on the HPM side. So certainly panel packaging at COP level is an interesting development for us as well.

39:29 Thank you, Robin. Also if I may, I do want to ask a question on S and P. Was there any update on your strategic review for the division? And have you identified specific option that you want to go for and what would be the timeline? To answer your second question, please no. I think we have seen the progress of evaluating but certainly we have received some interest in the ASMV business. Got it. Very clear. Thank you. Thank you, Sunny. Yes. Next, I would like to request Arthur. Arthur, please unmute. Hi, hi, hi. Robin, can you hear me? Yes.

40:16 Yes. Congrats on the strong results and guidance. So I will have two questions. Number one is on the CTO. You just mentioned that you have a deep dive into the process, right? And you mentioned that time is twenty eight. I want to confirm that that's the old optical engine shipment or that's your equipment shipment timing? Shipment time. We are referring to our equipment time for CPO, it looks interesting from twenty eight onwards. Okay, interesting on the '28. Because what we heard from the supply chain is that actually some of the CTO equipment already kick off. So can you share more color on your target?

41:12 For example, the it's for the GPU style maker or it's for the ASIC style maker? I think the clientele that we have is probably serving both other. I don't think we can really differentiate whether it's ASIC or GPU. Okay. That Yeah. Should be both. Yeah. Yeah. Okay. Okay. And and my second question is about the HBM. So thanks for sharing this good progress. Do you think, you know, for the HBM4 and 4E, actually, you can continue to so my question is about HB progress, hybrid bonding progress and your your your tool. So do you think the visibility is getting longer and longer in the HBM side?

42:10 Not really. I think the roadmap from our customers are pretty clear. But like what Kelly say, know, if there is adjustment to the roadmap, of course the demand will vary from quarter to quarter. But however, in the long run, I think we are still sticking to it. A very significant TAM of $1,600,000,000 in 2028 and we intend and we have never wafer from our aim to target 35% to 40% market share for the whole GCV market. Thank you. And finally, a question to Katie.

42:55 On the modeling perspective, we know lasers strong booking, right? But how about your components, the prior lead time? Is it getting longer or is it remain, you know, controllable? How should we think of the, you know, the real beating seasonality of this year? Do we see any constraint? Yeah, Arthur, thank you for the question. Maybe I'll answer it by segment. On the SMT front, I'll go that first. Though we have very, very strong booking as we've mentioned a few times now, the conversion, the revenue conversion is somewhat impacted by the lead time of our suppliers.

43:48 The team is actually actively addressing this and we expect that in the second half this kind of situation actually will get better. On the semi side, I mean there's always the kind of tight supply chain, especially given all the uncertainties around the globe. But so far, we would say that we are managing the supply situation just far. Okay. Thank you, Arthur. Next, I would like to request Alex Chang to unmute. Alex, please go ahead. We can hear you, Alex.

44:38 I think Alex will have some technical problem. Maybe we'll go to the next one. Next, would like to invite Tony. Tony, could you please unmute? Thank you, Robin, Katie, Ben for taking my question. Can you hear me? Yes, Tony is okay. Thank you, Robin. My first question is regarding to your NEX business. So I'm wondering if that, I mean, I remember in the past few years NEX, one of NEX major business was plating tool, and it can be sold to some PCB companies. And recently, think PCB companies or substrate companies are expanding capacity due to they are running out of the fab.

45:28 So I think I just want to ask is like, if NEXT can generate some revenue momentum recovery in the future, are you still considering to sell this business? And also in terms of timeline, when are we expect that we can dispose sick place and next these two businesses in the future? Would that be in second quarter? So this is the first question. Yes. I think let me answer your second part of the question first. We don't have an exact timing for you. Whenever there is a deal, we will announce it. But so far, we have nothing to mention here. Now you're talking about yes they are into deposition.

46:18 When we make a decision to divest NEXT, we don't just look at financial loan, we look at strategic fit to our whole business. So we feel that we want to divest NEXT because we want to focus more on the semi back end. NEXT is not exactly in the back end. NEXT is what we've got on the middle end. So that's the reason why we made the decision to divest not because of purely on financial, but because of strategy. Okay, okay. Understood. Just one follow-up on this. So when you decide to divest NEXT, have you already seen the pickup of the orders from those PCB and substrate makers? I would say yes. As I said, our decision is not based on financial. It's really more on strategy. Okay. No problem. Thank you. And my second question is regarding to the CPO. So my understanding was that our Omnicron, for example, can be used for laser bonding or as you say, maybe micro lens bonding onto the IC. I guess that's the major business still today. But I'm also wondering if you can quantify a little bit more on the 5x growth in the first quarter of this year. It's like what kind of base in the last year.

47:40 And also, in terms of the inspection, you know, for CPO, the FAU alignment with optical engine is also very critical and it also requires inspection. So we have AA tool. We have AOI tool. I'm wondering if we can explore some of the business opportunities there or we are mainly staying at the die bonding market? Yeah, very good question, Dottie. Actually, when we deep dive into the photonics business, so we also think that maybe we shouldn't just focus on just on the die bonding because there's indeed a lot of opportunities in the photonics, in the CPU as well as in the optical transceiver business. So too early. I don't have any concrete answer for you at this point in time.

48:39 But coming back on the FAU, yes, I think Amucra has a solution actually for FAU attached onto the PIC. So as I said earlier, think as far as CPO is concerned, feel good. We feel excited about this particular development. So we will probably have more to share as we move towards throughout the quarters in the year to come. And in terms of 5x growth, can you elaborate a little more? It's like what kind of base we are growing from in capacity? Yes. I would say, Donnie, right now it's still a small base. But again, in terms of growth, it was a significant growth. But we thought it's worth to highlight to you guys as well that we are making good progress in terms of optical transceiver as well as CPU.

49:33 Okay, got it. Thank you, Robin. Yep. Okay, thank you, Donnie. I'm afraid this is the time that we have, And then now I'll pass the time back to Robin for his closing remarks. Yeah. So thank you for a very good discussion today. So let me take a step back and say that this quarter really marks an important point for ASMVT. We delivered one of our strongest quarter in recent years, not just in terms of revenue and bookings, but notably also how broadly AI is translating into more opportunity for ASMVF. From TCB and advanced packaging to photonics, CPU and mainstream platform, We are indeed seeing AI driving demand across multiple products and customer segments at the same time.

50:25 We will say this breadth matters because it reflects the increasing complexity of AI system architecture and the value of back end manufacturing, an area where our range of solutions, skill, our capabilities are allowing us to participate meaningfully across the technology space. We are indeed very encouraged by the operational leverage we have demonstrated this quarter. Our adjusted margins improved sequentially supported by product mix and volume and our results came in ahead of market expectations. So looking ahead we continue to see AI as a multi year structural driver for our business with strong engagement across advanced logic and memory, photonics and CPU and mainstream wire and die bonding And as SMT pick and place solutions, we believe ASMVD is well positioned to support this next phase of industry growth across both semi and SMT.

51:24 So once again, thank you for your interest and your continued support. We look forward to updating you more in the next quarter. So this concludes our call. Thank you and take care.