ACM Research, Inc. (ACMR) SEC Filings & Earnings Calls

China Concentration Risk

“To date, substantially all of our sales of equipment for semiconductor-manufacturing have been to customers located in Asia, and we anticipate that a substantial majority of our revenue from these products will continue to come from customers located in this region for the foreseeable future.” · word for word

First Tool Acceptance Risk

“First tool shipments can be made to either an existing customer that has not previously accepted that specific type of tool in the past ... customers have significant, or in some cases total, discretion in determining whether to accept or purchase our tools after evaluation” · word for word

Negative Free Cash Flow

“Free cash flow $ (127,905) $ (71,077) 80.0 %” · word for word

International trade policy and supply chain constraints could impact future performance.

“This expectation is based on ACM management’s current assessment of the continuing impact from international trade policy, together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field.” · word for word

Listing subject to regulatory approvals from CSRC, HKEX, and SFC; may not be completed.

“The proposed H Share Listing remains subject to market conditions and the obtaining of necessary filings, approvals and/or other regulatory clearances, including those from the China Securities Regulatory Commission, The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission of Hong Kong.” · word for word

Share dilution

“2.88 million new shares issued”

Dilution risk from new share issuance; lock-up agreement may limit near-term selling pressure.

“2,884,615 shares issued; 6-month lock-up with waiver possibility.”

International trade policy and supply chain constraints could impact future revenue.

“Outlook depends on continuing impact from international trade policy, supply chain constraints.”

Timing of customer acceptances for first tools under evaluation may cause revenue volatility.

“Timing of acceptances for first tools under evaluation is a factor in outlook.” · word for word

Preliminary results subject to completion of closing procedures and audit review.

“Actual unaudited first quarter 2026 results are subject to the completion of ACM’s quarter end closing procedures and review by ACM’s independent registered public accounting firm.” · word for word

H Share Listing may not be implemented; regulatory and market risks.

“Whether the H Share Listing will ultimately be implemented is uncertain.” · word for word

No material risk identified; dividend proposal is routine and subject to approval.

No material risk identified.

Export Control Risk

“Effective on December 2, 2024, BIS promulgated a final rule naming a number of companies to the BIS Entity List Among the 140 companies added to the BIS Entity List were two subsidiaries of ACM Research, ACM Shanghai, located in the People’s Republic of China, and ACM Korea, a direct subsidiary of ACM Shanghai, which is located in the Republic of Korea, and ” · word for word

Supply Chain Concentration Risk

“We depend on a limited number of suppliers, including single source suppliers, for critical components and subassemblies, and our business could be disrupted if they are unable to meet our needs.” · word for word

Growth Management Risk

“our headcount grew by 24% in 2025, 27% in 2024, and 32% in 2023.” · word for word

Gross margin compression due to product mix and investments

“Gross margin declined from 50.1% to 44.4% GAAP in FY2025”

Dependence on China market and trade policy risks

“Guidance based on management's assessment of international trade policy impact”

Shipments declined 12.2% in FY2025, indicating potential demand timing issues

“Total shipments in 2025 were $854 million, down 12.2%” · word for word

Reduced ownership in ACM Shanghai may indicate strategic shift or need for capital.

“Ownership decreased from 74.84% to 73.72%.”

Uncertainty about completion and proceeds of share sale.

“These risks and uncertainties include the number of Shares the Company may sell under the Plan (if any), the prices at which such Shares may be sold, the aggregate proceeds to the Company from such sales, market conditions” · word for word

Uncertainty about completion and proceeds of share sale.

“These risks and uncertainties include the number of Shares the Company may sell under the Plan (if any), the prices at which such Shares may be sold, the aggregate proceeds to the Company from such sales, market conditions” · word for word

Guidance subject to risks from international trade policies, customer spending scenarios, supply chain constraints, and tool acceptance timing.

“This expectation is based on ACM management's current assessment of the impact from international trade policies, together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field.” · word for word

Working Capital Drain

“Net changes in operating assets and liabilities ($174,950) driven by $80.7M inventory increase and $91.3M receivables increase.” · word for word

China Regulatory Risk

“Mainland China's currency exchange control and government restrictions on investment repatriation may impact our ability to transfer funds outside of mainland China.” · word for word

Debt Covenant Risk

“Loan covenants require ACM Shanghai to maintain year-end outstanding interest-bearing debt not to exceed five times annual EBITDA.”

Gross margin pressure from product mix and higher operating expenses.

“Gross margin declined to 42% from 51.4% YoY; operating expenses up 38.9%.”

International trade policy and supply chain constraints could impact future revenue.

“Guidance notes continuing impact from international trade policy and supply chain constraints.”

Dilution from ACM Shanghai capital raise reduces ACM's ownership to 74.6%.

“ACM's equity interest in ACM Shanghai declined from 81.1% to 74.6%.”

Dependence on ACM Shanghai for majority of revenue and net income, with accounting differences between RMB/Chinese GAAP and USD/US GAAP.

“ACM currently owns a 74.6% equity interest in ACM Shanghai, and a substantial majority of ACM’s consolidated revenue and net income is contributed by ACM Shanghai. The stand-alone financial results of ACM Shanghai are reported in RMB as prepared in accordance with Chinese generally accepted accounting principles, and those results will differ, potentially ma” · word for word