Canaan, Inc. Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

  • Total Net Revenue: RMB68.3 million, up 44.6% year-over-year (YoY) compared to RMB47.2 million in Q1 2019.
  • Computing Power Sales: Reached 900,000 Thash/s in Q1 2020, increasing 18.4% YoY from 700,000 Thash/s.
  • Gross Profit: RMB2.4 million, compared to RMB0.5 million in Q1 2019; Gross margin improved to 3.5% from 1% YoY.
  • Operating Loss: RMB71.1 million; primarily due to higher R&D expense of RMB41.8 million, up 33% YoY.
  • Net Loss Attributable to Shareholders: RMB39.9 million, reducing from RMB67.9 million in Q1 2019; non-GAAP adjusted net loss was RMB38.2 million.
  • Cash and Equivalents: RMB264.4 million as of March 31, 2020, down from RMB516.6 million on December 31, 2019; mainly due to RMB173.4 million in short-term investments.
  • Outlook: No formal Q2 2020 guidance provided due to ongoing COVID-19 and post-Bitcoin-halving uncertainties.

Operational Highlights

  • Mass production and shipments of Samsung 8nm-based miners began in Q1 2020.
  • SMIC 14nm-based miners to enter mass production in Q2 2020; development underway for next-gen versions with Samsung and TSMC (including 5nm ASICs).

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Operator: Ladies and gentlemen, thank you for standing by and welcome to Canaan Inc First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the management prepared remarks, we will have a question-and-answer session. Please note this event is being recorded. Now, I would like to hand the conference over to your speaker host today Mr. Shaoke Li, Board Secretary of the Company. Please go ahead, sir. Shaoke Li: Thank you very much and hello everyone and welcome to Cannan Inc’s first quarter 2020 earnings conference call. The Company's financial and operating results were released by our newswire services earlier today and are currently available online. Joining us today are our Chairman and CEO, Mr. Nangeng Zhang; and our CFO, Mr. Hong Quanfu. In addition, Mr. Jianping Kong, our Co-CEO; and Mr. Jingjie Wu and Ms. Li Zhang, our Senior Vice President, will also be available during the question-and-answer session. Mr. Zhang will start with a call by providing an overview of the Company and the performance highlights for the first quarter of 2020. Mr. Hong will then provide the details on the Company's operating and the financial results for the period before we open the call up for your questions. Before we continue, I would like to refer you to our Safe Harbor Statements in our earnings press release, which also applies to this call as we will be making forward-looking statements. Please also note that we will discuss non-GAAP measures tod

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