Financial Data and Key Metrics Changes - Revenue for Q1 2025 reached $18.2 million, representing a 78.5% quarter-over-quarter increase and exceeding previous guidance of $15 million to $16 million [7][14] - Gross margin improved significantly to 56.9%, up from 26.2% in the previous quarter, reflecting a 286.9% increase [8] - Operating income turned positive at $5.1 million, a recovery from the loss in Q4 2024 [8][15] - Net income was negative $4.7 million, impacted by a noncash revaluation loss of $9.8 million on cryptocurrency holdings [15][16] Business Line Data and Key Metrics Changes - The successful launch of the Allele miner series accounted for nearly 75% of total revenue in Q1 2025 [14] - Cost of revenue increased modestly from $7.5 million in Q4 to $7.9 million in Q1, growing at a slower pace than revenue [15] - The company reported positive operating income, distinguishing itself among crypto mining companies [15] Market Data and Key Metrics Changes - The total market cap of cryptocurrency declined by 18% during the quarter, with significant price drops for Ether, Dogecoin, and Allele [7][13] - Despite market headwinds, the company maintained a steady pace of Ethereum accumulation, increasing holdings by over 23% to approximately 7,043 units [9][16] Company Strategy and Development Direction - The company focuses on product optimization and operational efficiency, aiming to maintain a gross margin higher than the industry average for Bitcoin miners [11] - Plans to refine the gold point miner through chip upgrades and enhanced production design to become a top player in gold coin mining equipment [13] - The strategy includes exploring Web3 innovations to drive long-term growth and maintaining a long-term accumulation strategy for Ethereum [10][19] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of Dogecoin and plans to continuously upgrade the Dogecoin miner program [24] - Anticipated catalysts for long-term growth include interest rate cuts, regulatory support for crypto-linked ETFs, and advancements in blockchain applications [17][19] - The company remains confident in Ethereum's future and the broader blockchain ecosystem, projecting revenue for the first half of 2025 to be approximately RMB 180 million to 200 million [19] Other Important Information - As of March 31, 2025, cash, cash equivalents, and short-term investments totaled $74.9 million, up from the end of 2024 [16] - The company aims to standardize hardware design while leveraging technical expertise across multiple cryptocurrencies with the launch of the GoldShell Byte miner [29] Q&A Session Summary Question: Revenue mix and future mining rigs - Management is optimistic about the future development of Dogecoin and plans to continuously upgrade the Dogecoin miner program, aiming to become a top-tier supplier in the industry [24][25] Question: Potential of GoldShell Byte miner - The GoldShell Byte miner addresses the pain point of needing new machines for different projects, allowing miners to switch easily based on market conditions [29] Question: Inventory expectations - Most inventory consists of both coin miners and related chips, with plans to adjust prices based on market conditions to sell inventory rather than write it off [36][37] Question: R&D spending outlook - R&D spending is currently down but future projects may lead to increased spending, though specific timelines cannot be predicted [50][51]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 reached $18.2 million, representing a 78.5% quarter-over-quarter increase and exceeding previous guidance of $15 million to $16 million [6][12] - Gross margin improved significantly to 56.9%, up from 26.2% in the previous quarter, reflecting a 286.9% increase [7] - Operating income turned positive at $5.1 million, a recovery from the loss in Q4 2024 [7][13] - Net income was negative $4.7 million, impacted by a noncash revaluation loss of $9.8 million on cryptocurrency holdings [13][14] Business Line Data and Key Metrics Changes - The successful launch of the Allele miner series accounted for nearly 75% of total revenue in Q1 2025 [12] - Cost of revenue increased modestly from $7.5 million in Q4 to $7.9 million in Q1, growing at a lower pace than revenue due to higher margins from new miners [13] - The company continues to focus on product optimization and operational efficiency to maintain higher gross margins than industry averages [9] Market Data and Key Metrics Changes - The total market cap of cryptocurrency declined by 18% during the quarter, with significant price drops for Ether, Dogecoin, and Allele [6][11] - Despite market headwinds, the company maintained a steady pace of Ethereum accumulation, increasing holdings by over 23% to approximately 7,043 units [7][14] Company Strategy and Development Direction - The company aims to solidify its leadership in the home mining sector and plans to continue refining its mining products through technological upgrades [10][18] - A focus on innovation and operational excellence is central to the company's long-term value creation strategy [18] - The company is exploring new blockchain applications and anticipates potential catalysts such as interest rate cuts and regulatory support for crypto-linked ETFs [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market sentiment improving and the potential for revenue growth in Q2 and beyond [17] - The company projects revenue for the first half of 2025 to be approximately RMB 180 million to 200 million [17] - Management remains committed to a long-term Ethereum accumulation strategy despite current market volatility [16][17] Other Important Information - The company reported cash, cash equivalents, and short-term investments totaling $74.9 million as of March 31, 2025, an increase from the end of 2024 [14] - Total assets represented 147% of the company's market capitalization as of May 2025 [15] Q&A Session Summary Question: Future revenue mix with 75% from Allele miners - Management is optimistic about the future of Dogecoin and plans to continuously upgrade its Dogecoin miner program, aiming to become a top-tier supplier in the industry [22][24] Question: Potential of GoldShell Byte miner for revenue generation - The GoldShell Byte miner was designed to address the pain points of individual miners, allowing them to switch between cryptocurrencies easily, which could lower barriers to entry in the mining industry [26][27] Question: Expectations for inventory management - Management indicated that most inventory consists of both coin miners and Allele miners, and they will adjust pricing based on market conditions to sell inventory rather than write it off [34][35] Question: Feedback on GoldShell Byte from the market - The GoldShell Byte has received positive feedback from individual miners, and the company aims to attract new customers through this product while maintaining existing ones with professional miners [39][40] Question: R&D spending outlook - Management noted that while R&D spending is currently down, they cannot predict when it will increase again due to ongoing projects [48]