Operating & Financial Results Forth Quarter 2025 & FY2025 February 10, 2025 Chairman & CEO CFO Nangeng Zhang Jin "James" Cheng 1 Safe Harbor Statement This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"), including adjusted EBITDA (including adjusted EBITDA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and cash flow. These non-GAAP measures should be considered in addition to, and no ...

Core Insights - Canaan Inc. returned to gross profit in Q3 2025 with a revenue increase of 114% year-over-year [1][2] Financial Performance - Gross profit for Q3 2025 was $16.6 million, compared to a gross loss of $21.5 million in the same quarter last year [2] - Total revenue reached $150.5 million, up from $100.2 million in the previous quarter and $73.6 million a year ago [2] - The company reported a net loss of $27.7 million, an increase from a net loss of $11.1 million in Q2 2025 [2] Revenue Breakdown - Product revenue was $118.6 million, while mining revenue accounted for $30.6 million [3] - Mining revenue was bolstered by 267 bitcoins mined, generating an average revenue of $114,485 per bitcoin [3] - Total computing power sold exceeded 10.0 exahashes per second, marking a quarterly record [3] Cryptocurrency Holdings - Canaan's cryptocurrency treasury reached a record of 1,581.9 BTC and 2,830 ETH at the end of Q3 2025 [3] - By the end of October, holdings increased to 1,610 BTC and 3,950 ETH [3] Business Developments - The company secured its largest single order in three years, with over 50,000 Avalon A15 Pro units from the U.S., scheduled for delivery in Q4 2025 [4] - A gas-to-computing pilot project was launched in Calgary, Alberta, in partnership with Aurora AZ Energy Ltd., involving over $2 million of A15 Pro units [4] - Canaan unveiled the Avalon A16 series on October 28, featuring the A16XP model rated at 300 TH/s and 12.8 J/TH, available for pre-order [5]

Core Insights - Canaan has secured its largest hardware order in three years, selling over 50,000 Avalon A15 Pro bitcoin miners to a U.S.-based mining firm, with shipments scheduled for Q4 2025 [1] - This order signifies a strong recovery in the U.S. market and reflects miners' ongoing confidence in the cryptocurrency industry despite increasing mining difficulty [2] - Canaan's operational presence in the U.S. and Malaysia may help the company mitigate costs associated with reciprocal tariffs on Chinese-sourced ASIC miners [3] Company Summary - Canaan's CEO, Nangeng Zhang, highlighted the milestone order as a significant achievement for the company, indicating a robust resurgence in the U.S. market [2] - Following the announcement of the order, Canaan's shares experienced a notable increase, rising 12% in pre-market trading and nearly 18% during the previous trading session [2] Industry Context - The order reflects the continued investment and optimism from miners in the cryptocurrency sector, even as the mining difficulty reaches an all-time high [2] - Canaan's ability to fulfill the order from its facilities in the U.S. and Malaysia positions the company advantageously in the current market landscape [3]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 reached $82.8 million, exceeding guidance of $75 million, representing a 136% year-over-year increase [12][30] - Mining revenue was $24 million, up 132% year-over-year, with 2.59 bitcoins mined, a 33% increase year-over-year [30][32] - Average selling price (ASP) per terahash increased to $10.5, a 30% sequential growth [13][30] - Operating loss narrowed by 32% quarter-over-quarter and 45% year-over-year to $37.6 million [21][30] - Cash balance remained stable at approximately $100 million [22][36] Business Line Data and Key Metrics Changes - Sales revenue from mining machines exceeded $58 million, a 149% year-over-year increase, with 5.5 exahash per second in total computing power sold, up 62.6% year-over-year [12][32] - The Avalon Home series generated $1.3 million in sales revenue with around 6,000 units delivered [14][34] - Self-mining operations yielded 2.59 bitcoins, with mining revenue reaching a record high of over $24 million, marking a 59% sequential increase [16][30] Market Data and Key Metrics Changes - The global Bitcoin price fluctuated, dropping from approximately $104,000 in January to $76,000 in early March, before rebounding to around $100,000 by the end of April [9][10][21] - The US market faced significant challenges due to tariffs, impacting demand for mining machines [11][12] - Demand from North American customers remains under pressure, with no clear signs of recovery [23][24] Company Strategy and Development Direction - The company is focusing on technology and product innovation, strengthening customer service, and advancing its global strategy [27][28] - A pilot production line has been established in the US to reduce supply chain risks and improve market proximity [19][20] - The company is exploring larger-scale manufacturing facilities in the US while managing production costs [19][20] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the ongoing volatility in the global political and economic landscape, leading to the withdrawal of full-year revenue guidance [25][26] - The company anticipates Q2 revenues of approximately $100 million, based on current market conditions [26][40] - Management remains optimistic about the long-term appreciation potential of Bitcoin despite short-term price fluctuations [21][22] Other Important Information - The company has started to build up inventory of new products to ensure uninterrupted deliveries [22][36] - A share repurchase program is under evaluation to enhance shareholder value [27][39] Q&A Session Summary Question: Can you describe the trends in ASP and equipment pricing through the quarter? - ASP climbed to $10.5 due to strong demand and positive feedback on the A15 series, with expectations for continued improvement in Q2 [43][45] Question: How is the shift towards HPC or AI hosting affecting your TAM? - Some customers are redirecting power towards AI and HPC applications, but this appears more experimental than strategic [49][50] Question: Can you clarify expansion plans for self-mining? - Self-mining projects in North America are progressing, with new installed capacity added through partnerships [53][54] Question: What lead time is needed for orders for Q3 or Q4? - Current lead time for orders is about 6 to 8 weeks, with expectations for improvement based on demand and supply [65][66] Question: Is there capacity to shift manufacturing to the US to limit tariff impacts? - A small-scale trial production has started in the US, but complexities and costs remain a concern [74][76] Question: How are you evaluating site acquisitions in light of the tariff landscape? - Current energy prices remain stable, and potential policy changes may improve power availability in the future [84][86]