 Good day fellow investors. Today we have another video featuring Yao Kai Yang. Hello, good investors. Thank you Yao Kai. And today we're going to talk about a very, very interesting value investing you would call it grammian stock that is trading at about $4.6 but has value cash per share of $4 and book value of $10. And then we are going to dig into the stock Yao Kai from a technical perspective. I'm more from a fundamental perspective. We're going to discuss some news and especially all those interested in learning about value investing. We'll learn more about, okay, how am I approaching such a situation where normal, the book, the great, the intelligent investor would tell me, okay, this is an investment with a margin of safety, a good investment, value is obviously there and how to apply that to a company. The company is Amtech ASYS and it's traded on the NASDAQ stock exchange. So let me just give you an overview of the fund and then we'll discuss a bit the fundamentals and then Yao Kai will talk about the technology and how to apply that technology on a margin perspective, on a business perspective, and how that fits the cycle. So Amtech systems, it's a solar stock. So again, something that the value investor would get excited because it's about a positive trend. It's solar and that's expected to grow in the next decades. So this was a stock that I found when I was looking at the complete solar sector, more than 50 stocks back in May. And the interesting thing is that it has about 50 million shares and 58 million in cash. That's almost $4 per share. Add another 45 million in receivables and inventory. So that goes up to $86 per share in value. Total assets are 150 million and then total liabilities are 45 million, which means that we get to a book value of $7 per share, of which almost four in cash. So what is Amtech systems? It's involved in the business of supplying solar and semiconductor production and automation systems and related supplies for the manufacture of solar cells, semiconductors and silicon wafers. And Yao Kai will translate my Chinese later. So at the fundamentals price earnings extremely low, price to book very low, but the forward consensus price earnings is now extremely high. There is no forward dividend yield and the market capitalization is 65 million as we are recording this and the year change maximum was $12 per share and now it's down to 4.60, but it was even lower to four. If I give a quick overview of the revenues, you can see them as extremely volatile, $250 million when there was the solar boom in 2011, then down to just $35 million and then again up to $176 million in 2018, their fiscal year ends September. So just the last quarter was since the Chinese, let's say, clampdown on solar growth. Gross margin also extremely volatile from 11 to 35%. Operating margin goes from positive to extremely negative to 33% negative, 54% negative, which is really extreme and later Yao Kai will talk about the cycle and how this cycle affects such companies and obviously earnings per share are also extremely volatile. Number of shares has been increasing over the years and the book value has unfortunately been decreasing. Free cash flows cumulatively negative and the stock price is extremely volatile and you can see really the extreme volatility over the years as those solar short-term cycles evolve. People get very excited, expect who knows what from such a stock and then their expectations get destroyed and the stock hits constantly new lows almost. Even if the lows are slowly, slowly growing. So who knows, perhaps it's even an interesting investment. So I'll give the word to Yao Kai if he can explain what is the company doing and how does that work in the solar cycle? How does it fit there? So the company, according to their own 10K, they basically produce three, four things. So what is, they make a, they call it horizontal furnace, horizontal, let's see, horizontal diffusion furnaces. Sounds very fancy, but this is actually a fairly, it's just a heater. So in human language it's just a heater, except that you have to give it a very proper temperature control, uniform temperature, maintain that temperature and the way you use it is you have these discs of wafers. So that's silicon, pure silicon and you stack it against some other thing potentially like genamide oxide or some stuff like that. We call dopants and then that changes the conductivity of the semiconductors, but this is only used for very, very old technology. So this is not something you would see that people use to manufacture CPUs. This stuff is used for 2,000 nanometer stuff, like 2,000 nanometer processing nodes if you were to use it for transistors. And nowadays what we use is 10 nanometers. So there's only a 200 times difference in there. So you can't use that for, like the, what you normally associate as semiconductor manufacturing like things to do with transistors. So this is, at the moment, can only basically be used for MEMS. So these are potentially like these small sensors or tiny electronics made out of silicon or majority solar. So this company seems to be very tied towards solar. And then you have a continuous thermal processing system, another heater. Actually it's more than just a heater. It's a solar energy machine. But that thing is used to do some of the packaging. Essentially you have a dye which is made out of silicon and a bunch of other stuff. And then you have a substrate, which is basically a thing you put the dye on. And in order to have these things fused together, have electric, electrical conduct, like conductivity, you need some soldering material and you heat them up. And that's, that's your, that and that's not anything high tech because you will, like you see, it's a glorified, one of those blower things that's, you know, the handhold, handheld heaters, like blow, that blows hot air to things. It's one of those. And then you have a small batch vertical furnace, which is again, just a heater, except now instead of horizontal, it's vertical. And it's for smaller batches. It's for prototyping instead of making, you know, 100, 200 wafers at a time. Instead of doping 200 times, 200 things, it's like a smaller thing. Okay. So let's say it's not so highly tech. So currently, the all three of these are pretty low tech things. And then you got the two things that are slightly more high tech is chemical vapor decomposition is basically you have, you want a uniform coating of certain chemicals on top of your silicon for whatever chemical, for whatever effect. That's slightly more advanced. But again, there are quite a few companies that are able to make this stuff. And then the next thing is atomic layer decomposition similar stuff. Again, it's you're trying to deposit a layer of stuff on your, on your own things could be silicon could be glass could be anything. And the last automation products, which is basically robotic arms, which is again, not high tech. So they have something that's slightly high tech, even though that is even that is not, you know, like things that people said, Oh, like if you can make it, you now control the industry, like land research or something. No, it's mostly pretty commoditized stuff. And as with all commoditized things, we know that when the market is good, you make money. But when the market is bad, you lose a lot of money because it costs. And we have seen already, I have read through the conference call, they are firing people. So they will fire about 40 to 40 people. They have fired, I think they're CEO. So yes. So the chairman will become the CEO. And also, they have had an impairment, which is about, I think it was nine million. So there is nine million loss over the quarter. And also an explanation of where the money goes is nine million loss plus they are preparing to do an acquisition when they have an opportunity, which might be a good or a bad thing. But the key is you cannot count on your money to be delivered to you. There is a four million buyback and there will be another four million buyback. But we see if they make an acquisition, they might issue more stocks. And I think the CEO got 286,000 stocks as his severance pay. So that's half a million dollars plus 280,000 stock options or something like that. So that's again two million. So there goes the buyback if you calculated it like that. And so it's not really like a value stock that there is really value lying around with the margin of safety. And this low tech, as you were saying, really affects the margins and everything. But now that you are talking about this technology and we look at them, we might, we have to say there is a margin of safety. These guys will probably not go bust. Yeah, it's all the cash. It's hard to go bust with all that cash. So how would you trade this stock or would you invest? I'm not too familiar with it. It's hard. It's very hard to even trade it because it's so tied up with China. And then the Chinese government would, you basically have to keep wind of what the Chinese government's planning to do in terms of solar because at one point they decided, oh, solar was a good thing. So they almost covered like, you know, one tenth of the Gobi Desert with solar panels. So when you do that, obviously you need the capacity. And once you need capacity, these are basically capacity providers. They give you the machines to do the things you need. Well, suddenly their revenue explodes. But the sword cuts both ways. And then the Chinese government in like 17 or something, 17 or 18 basically said, oh, we have too many solar panels. And the reason is they couldn't get the electricity to the place it needs to be. At the time it needs to be because solar is, as you know, it's not on all the time. And all of a sudden in like overnight, the capacity expansion stopped. And the funny thing is, it's just a tidbit that's very interesting. When the solar expansion stopped, the profitability of Chinese solar manufacturers actually did not decline. Some of them actually improved. And then the stock price of all these guys went up since then. So something to keep in mind. So that's one thing I noticed. A growing industry, a growing commodity industry is not necessarily a good place to invest, especially if it's like growing really fast. There'll be more money chasing that growth than if it's a slow, slowly growing commodity business. And once the, all the money goes in to chase it, CapEx goes crazy up. And you can have a margin destruction even when you have capacity, like demand increase and crazy demand increases even. So same thing goes to the dot com bubble. People will protect projecting doubling of internet traffic every day, every year it happened, except your capacity went up like four times every year. So everybody still got destroyed. So I think, I think this is actually a Chinese company because the chairman and the owner is China Chinese, but they have had a plant in the Netherlands headquarters in America. So it's like a company that is Chinese, but pretends not to be Chinese. And they had the Dutch CEO. And so it looked a little bit different, but we'll see how that evolves. So in any case, a very, very interesting story about the stock with low technology, but good fundamentals that has an extremely volatile stock price, extremely volatile performance. So you never know what you can expect there and except for the buybacks. I didn't see any dividends over the last 10 years. So we, we can doubt whether they are just there for the management and for the owners, or also for shareholders. So a long, long process of going nowhere when we look at the long term stock chart. So that was it for me. Anything to add to conclude, Yao Kai? No, it's one of the things that looks on the surface very attractive. But when you look into it, there isn't really like a moat. And so yeah, and if it's a cyclical stock, then you need to be able to time the bottoms. And how do you know the bottoms? I don't know how to time the bottoms. All right. And then let's give an appetizer for a video. I think we'll be coming out Saturday. This one will come out on Wednesday. And on Saturday, we'll talk about the stock that I've been covering for the last six months. Yao Kai has been buying as the stock price really dipped, which is Beijing Capital Airport. And we hope that will be a much more also an educational story, but the much more interesting and attractive as it is, I think also a good company, it will deliver good returns over the long term. So thank you, Yao Kai. Thank you. And we'll see all of us again on Saturday when we discuss Beijing Capital Airport.