Core Insights - One Stop Systems, Inc. (OSS) will showcase its advanced computing solutions at the SuperComputing Conference 2025 (SC25) in St. Louis, Missouri from November 16-21 [1][3] - The company emphasizes its leadership in high-performance computing (HPC) and artificial intelligence (AI) solutions, particularly for edge applications [3][5] Product Offerings - OSS will present a comprehensive portfolio including Gen6 PCIe Express external cable adapters, high-performance 2U and 3U servers, and storage systems designed for extreme bandwidth and low latency [2][6] - The products are tailored for commercial data centers and rugged edge applications, addressing the entire AI workflow from data acquisition to deep learning and inference [7] Industry Context - The SC25 conference serves as a platform for professionals to discuss advancements in HPC, AI, quantum computing, and related fields, highlighting OSS's role in the evolving landscape of edge computing [3][5] - OSS's solutions are positioned within the rapidly growing multi-billion-dollar edge computing market, focusing on delivering high performance in challenging environments [7]

Core Viewpoint - The launch of the scaleX640 by Dawning Technology is expected to enhance the performance of trillion-parameter model training and inference by 30-40%, potentially accelerating the breakthrough of domestic computing chips in training scenarios [2][4]. Performance Enhancement - The scaleX640 achieves a 20-fold increase in computing density compared to traditional solutions, enabling a 30-40% performance improvement in MoE trillion-parameter model training and inference scenarios [2]. - The system has undergone a 30-day reliability test, ensuring support for large-scale cluster deployments of up to 100,000 cards, which helps mitigate performance degradation and cost increases during model training due to chip failures [2]. Open Ecosystem - The scaleX640 adopts an AI computing open architecture, supporting multiple brands of acceleration cards at the hardware level and being compatible with mainstream computing ecosystems at the software level [2]. - The open architecture is expected to facilitate the integration of domestic computing software ecosystems and unify supernode structures, potentially aiding rapid iterations of domestic supernodes [2]. Technological Innovation - The scaleX640 utilizes innovative technologies such as ultra-high-speed orthogonal architecture, ultra-high-density blades, immersion phase change cooling, and high-voltage direct current power supply, which may drive technological advancements in the upstream supply chain [3]. Catalysts for Growth - The successful implementation of the scaleX640 in domestic large model training scenarios is anticipated to accelerate the construction of local intelligent computing centers [4].

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $18.8 million for Q3 2025, a 36.9% increase year-over-year from $13.7 million in Q3 2024 [15][16] - The OSS segment revenue increased by 43.4%, contributing approximately $2.8 million to the overall revenue growth [15][16] - Consolidated gross margin improved to 35.7%, up from 32% in the prior year when excluding a $6.1 million inventory charge [17] - GAAP net income for Q3 2025 was $0.3 million, compared to a net loss of $6.8 million in the prior quarter [18][19] - Non-GAAP net income was $0.7 million, a significant improvement from a non-GAAP net loss of $6.4 million in Q3 2024 [19] Business Line Data and Key Metrics Changes - The OSS segment achieved a gross margin of 45.6%, up from an adjusted 43.2% in the same period last year, driven by a more profitable product mix [17] - The Brezhnev segment reported a gross margin of 26%, reflecting a 400 basis point increase due to a favorable product mix [18] Market Data and Key Metrics Changes - The company noted strong demand in both defense and commercial markets, with a book-to-bill ratio of 1.4 for the OSS segment [4] - The Brezhnev segment experienced growth of $2.3 million in Q3, with $600,000 attributed to foreign exchange effects [34] Company Strategy and Development Direction - The company is focused on leveraging high-performance edge compute solutions to meet growing demands in AI, machine learning, and sensor fusion [4][9] - A multi-year strategic plan has been launched, with increased R&D investments to capitalize on emerging opportunities [9][10] - The company plans to broaden its commercial product lineup with new Gen 6 systems aimed at enhancing processing capability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and strong profitability for the remainder of 2025 and into 2026, supported by a solid backlog of orders [3][14] - The ongoing government shutdown is expected to impact the timing of near-term bookings but is viewed as a timing issue rather than a demand issue [8][25] - The company raised its full-year 2025 revenue guidance to $63 million-$65 million, up from $59 million-$61 million [21][14] Other Important Information - The company raised approximately $12.5 million in gross proceeds through a registered direct offering, enhancing its financial position [12][20] - The company has recognized lifetime contracted revenue of over $50 million on the P-8 Poseidon reconnaissance aircraft [5] Q&A Session Summary Question: How should investors think about the seasonality going forward for core OSS in light of strong bookings execution and the government shutdown? - Management indicated a consistent pattern of higher revenues in the second half of the year, with expectations for a moderated ramp compared to 2025 [24][25] Question: Can you update us on the data center market opportunity and the Army's situational awareness technology procurement evaluation? - The company is evaluating its Ponto product in data center markets and noted that testing for the Army's situational awareness technology continues, albeit delayed due to the government shutdown [26][28] Question: What was behind the strong performance of the Brezhnev segment? - The Brezhnev segment's growth was attributed to recovery in industrial end markets and favorable foreign exchange effects [34] Question: How is the cash from the recent offering being deployed? - The cash raised is being used to support working capital needs and is expected to facilitate positive cash flow in Q4 [38][39] Question: Is the core OSS business expected to be EBITDA positive for the year? - Management expressed confidence that the core OSS segment could achieve positive EBITDA in 2026, supported by a strong pipeline and growth expectations [46][47]

Market Overview - The market experienced weak fluctuations in the early session on October 30, with the ChiNext Index dropping over 1% at one point. The total trading volume in the Shanghai and Shenzhen markets reached 1.53 trillion yuan, an increase of 107.8 billion yuan compared to the previous trading day [1] - By the end of the trading day, the Shanghai Composite Index rose by 0.06%, the Shenzhen Component Index fell by 0.02%, and the ChiNext Index decreased by 0.23% [1] Sector Performance - Quantum technology stocks collectively surged, with notable performances from ShenZhou Information and GuoDun Quantum, both hitting the daily limit up. Other stocks like FujiDa and Zhejiang Dongfang also reached their daily limit [1] - The battery sector showed strong fluctuations, with ShiDa ShengHua and TianJi Shares both hitting the daily limit [1] - The port and shipping sector was active, with stocks like China Merchants Energy and COSCO Shipping Energy reaching their daily limit [1] - The energy storage sector continued its strong performance, with TongRun Equipment achieving two consecutive limit-ups [1] - Conversely, computing hardware stocks weakened significantly, with TianFu Communication and XinYiSheng experiencing substantial declines [1] Limit-Up Statistics - The limit-up rate was recorded at 72.00%, with 42 stocks hitting the limit and 16 stocks touching the limit during the session [3] - The performance of stocks that hit the limit yesterday showed a gain of 1.95%, with an opening rate of 67% [3]

Core Viewpoint - The market experienced a significant upward movement in the morning, with the Shanghai Composite Index reaching a new high for the year and the ChiNext Index rising over 2% [1] Market Performance - The total trading volume in the Shanghai and Shenzhen markets reached 1.23 trillion, an increase of 180.8 billion compared to the previous trading day [1] - By the end of the trading session, the Shanghai Composite Index rose by 0.42%, the Shenzhen Component Index increased by 1.3%, and the ChiNext Index gained 2.09% [1] Sector Performance - The storage chip sector saw substantial gains, with companies like Shannon Technology and Puran Co. both hitting new highs [1] - The commercial aerospace sector experienced a strong surge, with Dahua Intelligent Technology achieving two consecutive trading limit increases, and over ten commercial aerospace stocks hitting the daily limit [1] - The computing hardware sector also saw fluctuations, with Zhongji Xuchuang reaching a new high [1] Declining Sectors - The coal sector faced a collective decline, with companies such as Antai Group and Yunmei Energy hitting the daily limit down [1] - Sectors with notable gains included storage chips and CPO, while coal, local Shenzhen stocks, and gas sectors experienced significant declines [1]

Market Performance - The market experienced a rise and then a pullback, with the ChiNext Index initially increasing by over 3%. By the close, the Shanghai Composite Index rose by 0.63%, the Shenzhen Component Index by 0.98%, and the ChiNext Index by 1.98% [1] Sector Performance - The computing hardware sector was notably active in the morning, with Cambridge Technology hitting the daily limit [2] - In the afternoon, the superhard materials sector surged, with Sifangda and Huanghe Xuanfeng both reaching the daily limit [3] - The coal sector continued to strengthen, with Dayou Energy achieving 11 consecutive trading limits and Antai Group hitting 3 consecutive limits [4] - Gas stocks saw a rapid rise, with Guo Xin Energy achieving 4 limits in 5 days [5] - Conversely, the non-ferrous metals sector experienced significant declines, particularly in gold-related stocks, with Hunan Silver hitting the daily limit down [6] Trading Volume - The total trading volume for the Shanghai and Shenzhen markets was 1.74 trillion yuan, a decrease of 200.5 billion yuan from the previous trading day, marking the lowest trading volume since August 8 [7] Individual Stock Highlights - Zhongji Xuchuang led in trading volume with 24.468 billion yuan, followed by Hanwujing-U, Xinyisheng, and Shenghong Technology [8] - Notable individual stock performances included: - Zhongji Xuchuang: 403.00 yuan, up 29.40 yuan (7.87%), with a year-to-date increase of 227.94% [9] - Hanwujing-U: 1281.12 yuan, up 33.44 yuan (2.68%), with a year-to-date increase of 94.70% [9] - Xinyisheng: 329.24 yuan, up 12.93 yuan (4.09%), with a year-to-date increase of 300.42% [9] - Shenghong Technology: 264.22 yuan, up 4.86 yuan (1.87%), with a year-to-date increase of 530.30% [9]

Market Overview - The three major A-share indices collectively declined on the 26th, with the Shanghai Composite Index down by 0.65%, the Shenzhen Component down by 1.76%, and the ChiNext Index down by 2.6% [2] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets was 21,661 billion yuan, a decrease of 2,257 billion yuan compared to the previous day [2] - Over 3,400 stocks in the market experienced declines [2] Sector Performance - The wind power equipment, chemical fiber, agricultural chemical products, soybean, textile manufacturing, and military equipment sectors saw the largest gains [2] - Conversely, the gaming, computing hardware, photolithography, and consumer electronics sectors experienced significant pullbacks [2] Notable Stock Movements - Stocks related to computing hardware, such as copper cable high-speed connections, CPO, and liquid-cooled servers, collectively weakened, with companies like Zhongheng Electric, Lianang Micro, and Qingshan Paper hitting the daily limit down [2] - Several technology stocks, including Inspur Information and Industrial Fulian, also faced declines [2] - In the gaming sector, individual stocks like G-bits hit the daily limit down, while Kunlun Wanwei, Xinghui Entertainment, and Sanqi Interactive Entertainment saw significant drops [2] Strong Performers - The wind power equipment sector performed strongly, with Weili Transmission hitting the daily limit up, and companies like Jixin Technology and Mingyang Smart Energy also performing well [2] - The chemical fiber sector was active, with Shunma Co., Sanfangxiang hitting the daily limit up, and companies like Xin Fengming, Xinxiang Chemical Fiber, and Tongkun Co. showing notable gains [2]

Market Overview - The three major A-share indices collectively declined, with the Shanghai Composite Index down 0.65%, the Shenzhen Component Index down 1.76%, and the ChiNext Index down 2.6% [1] - The North Stock 50 Index fell by 1.81% [1] Trading Volume - The total trading volume in the Shanghai, Shenzhen, and Beijing markets was 21,661 billion yuan, a decrease of 2,257 billion yuan compared to the previous day [2] - Over 3,400 stocks in the market experienced declines [2] Sector Performance - Wind power equipment, chemical fiber, agricultural chemical products, soybeans, textile manufacturing, and military equipment sectors showed the highest gains [2] - Conversely, the gaming, computing hardware, photolithography, and consumer electronics sectors faced the largest declines [2] Notable Stock Movements - Stocks related to computing hardware, such as copper cable high-speed connections, CPO, and liquid cooling servers, collectively weakened, with companies like Zhongheng Electric, Lianang Micro, and Qingshan Paper hitting the daily limit down [2] - Several technology stocks, including Invidk, Langchao Information, and Industrial Fulian, also experienced pullbacks [2] - The gaming sector saw significant adjustments, with Jibite hitting the daily limit down and companies like Kunlun Wanwei, Xinghui Entertainment, and Sanqi Interactive Entertainment showing notable declines [2] Resilient Sectors - The wind power equipment sector surged against the trend, with Weili Transmission hitting the daily limit up, and companies like Jixin Technology and Mingyang Smart Energy also performing well [2] - The chemical fiber sector was active, with Shima shares and Sanfangxiang hitting the daily limit up, while companies like Xin Fengming, Xinxiang Chemical Fiber, and Tongkun shares showed significant gains [2]

Group 1 - Chip company Chip Yuan has become the 13th company on the STAR Market to reach a market value of 100 billion yuan, indicating strong investor interest in the semiconductor sector [3] - Other companies in the chip design sector, such as Jingchen Technology and Hengxuan Technology, also experienced significant gains, with increases exceeding 7%, reflecting a positive sentiment in the market [3] - In the computing hardware sector, companies like Guangku Technology and Lingyun Technology saw their stock prices rise over 10%, reaching historical highs, demonstrating robust demand in the industry [3][4] Group 2 - The surge in these sectors is attributed to a major partnership between Nvidia and Intel, where Nvidia is set to invest $5 billion in Intel, enhancing collaboration in the AI infrastructure and chip production [3] - This partnership is expected to provide a "booster" to the semiconductor and computing industries, as Intel will customize x86 CPUs for Nvidia's data centers and produce chips with Nvidia's RTX GPUs for personal computers [3][4] - The current activity in the A-share computing concept stocks and the recovery of the chip chain is not merely speculative but is driven by significant industry movements and demand [4]

Core Viewpoint - Nano Labs Ltd is undergoing a strategic transformation in 2025, focusing on building a crypto-asset strategic reserve, primarily using BNB as its reserve asset, while also identifying new market opportunities [3][4][5]. Financial Summary - For the first half of 2025, the company reported net revenue of RMB 8.3 million (US$ 1.2 million), a decrease from RMB 24.7 million in the same period of 2024 [5][6]. - The net loss narrowed to RMB 11.8 million (US$ 1.6 million) compared to a net loss of RMB 59.1 million in the same period last year [5][15]. - The gross loss for the first half of 2025 was RMB 10.7 million (US$ 1.5 million), compared to a gross profit of RMB 30.1 thousand in the same period of 2024 [9]. Revenue and Cost Analysis - The cost of revenues was RMB 19.0 million (US$ 2.7 million) for the first half of 2025, down from RMB 24.7 million in the same period of 2024, primarily due to decreased sales volume and inventory write-downs [7]. - Total operating expenses decreased by 53.5% to RMB 27.3 million (US$ 3.8 million) for the first half of 2025, from RMB 58.7 million in the same period of 2024 [8]. Cryptocurrency Strategy - The company has accumulated over 128,000 BNB, viewing it as a leading cryptocurrency with long-term appreciation potential [4]. - A gain on the change in fair value of cryptocurrencies was recorded at RMB 48.6 million (US$ 6.8 million) for the first half of 2025, compared to nil in the same period of 2024 [9][13]. Shareholder Value - The basic and diluted loss per share was RMB 0.43 (US$ 0.06) for the first half of 2025, significantly improved from RMB 8.46 in the same period of 2024 [16][34]. - As of June 30, 2025, the company had cash and cash equivalents of RMB 363.4 million (US$ 50.8 million), a substantial increase from RMB 32.4 million as of December 31, 2024 [17]. Operational Insights - The company is committed to strengthening its cryptocurrency strategic reserve model and aims to deliver sustainable, long-term value to shareholders and partners [5]. - The strategic adjustment in research and development activities led to a significant decrease in R&D expenses by 89.1% to RMB 3.2 million (US$ 0.4 million) for the first half of 2025 [19]. Company Overview - Nano Labs Ltd is a leading Web 3.0 infrastructure and product solution provider, focusing on high throughput computing (HTC) and high performance computing (HPC) chips [26][27]. - The company has established an integrated platform covering multiple business verticals, including HTC and HPC solutions, while actively positioning itself in the crypto assets space [27].