Canaan, Inc. Q2 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Total Revenue: RMB1.65 billion (US$246.7 million), up 21.9% QoQ and 52.8% YoY; within guidance range.
  • Net Profit: RMB609 million (US$90.9 million), up 37.9% QoQ and 148.6% YoY.
  • Gross Margin: 56.3% vs. 61.2% in Q1 2022; narrowing due to increased wafer costs and slightly lower ASPs.
  • Computing Power Sold: 5.5 million TH/s.
  • Mining Revenue: RMB52.1 million, up 60.9% QoQ, mining 245.11 BTC with 346.84 BTC in reserve.
  • AI Chip Revenue: RMB1.6 million, impacted by pandemic-related supply chain disruptions.
  • Cash and Equivalents: RMB2.64 billion, stable vs. Q1 2022.
  • Share Repurchase: Over 2.0 million ADS repurchased as of August 12, 2022, valued at US$10.3 million at an average price of US$3.63.
  • Warrant Repurchase: All 4.72 million outstanding warrants repurchased for US$6.61 million.
  • Q3 2022 Revenue Outlook: RMB900 million to RMB1.1 billion; down 17%-32% YoY.

Business Highlights

  • The downward bitcoin price (from US$45K to US$20K) and rising energy costs created a difficult market for miners and impacted machine demand.

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Operator: Ladies and gentlemen, thank you for standing by and welcome to Canaan Inc.'s Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded. Now, I'd like to hand the conference over to your speaker host today, Mr. Clark Soucy, Investor Relations Director of the Company. Please go ahead, Clark. Clark Soucy: Thank you. Hello, everyone, and welcome to our 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. Jin Cheng James. In addition, Mr. Edward Lu, our SVP; Mr. Leo Wang, IR Senior Director; and Ms. Xi Zhang, IR Manager, will also be available during the question-and-answer session. Mr. Zhang will start the call by providing an overview of the company and performance highlights for the quarter. Mr. Cheng will then provide details on the company's operating and financial results for the period before we open up the call for your questions. Before we continue, I would like to refer you to our Safe Harbor statement in our earnings press release. Today's call will include forward-looking statements. These statements include but are not limited to, our outlook for the company and statements that estimate, or project future results of operations, or the performance of the company. These statements speak only as of the date hereof and th

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