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 ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $150.5 million, up 50.2% quarter-over-quarter and 104% year-over-year, exceeding guidance [6][18] - Gross profit increased to $16.6 million, a 78.6% rise from Q2, marking a significant turnaround from a gross loss of $21.5 million in the same period last year [21][22] - Cash balance at the end of the quarter rose to $119 million, representing an 80.9% increase [6] Business Line Data and Key Metrics Changes - Mining machine sales delivered a record high of 10 exahash per second, up 55.6% sequentially and 37.7% year-over-year [7] - Average selling price for mining machines increased by 33.8% year-over-year to $11.8 per terahash [18] - Avalon Home series generated $12.2 million in revenue, a 115% quarter-over-quarter increase, contributing 10.3% of total product revenue [20][22] Market Data and Key Metrics Changes - North American customers contributed 31% of total revenue in Q3, indicating strong demand recovery in the region [19] - The global hash rate increased from 846 exahash per second at the end of Q2 to 1,041 exahash per second at the end of Q3 [5] Company Strategy and Development Direction - The company is focusing on expanding its consumer product line and energy operations while streamlining existing R&D and administrative costs [29] - New projects include partnerships for deploying mining machines at renewable energy facilities, indicating a shift towards sustainable energy solutions [10][11] - The company aims to integrate high-density Bitcoin mining with energy-intensive AI and HPC workloads [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q4, expecting total revenue to be in the range of $175 million to $205 million, influenced by macroeconomic conditions and U.S. tariff policies [15][29] - The management noted that while the macro environment remains complex, the demand for mining equipment in North America has shown resilience [56] Other Important Information - The company has secured a strategic investment of $72 million from top-tier institutional investors to fund data center acquisitions and expand Bitcoin mining machine production capacity [27] - The total cryptocurrency treasury reached approximately 1,582 Bitcoin and 2,803 Ethereum, with an estimated market value of around $189 million at the end of Q3 [22] Q&A Session Summary Question: Delivery timing and gross margin on the 50,000 A15 Pro units order - Management expects to complete all deliveries by the end of 2025, with positive gross margins anticipated [32][34] Question: Margins on home mining sales versus industrial mining equipment - Home mining series achieved a gross margin of 33%, significantly higher than industrial miners [35] Question: Shipping timeline and expectations for the new A16 models - A16 series launched at the end of October, with sample shipments expected by the end of November and volume shipments in Q1 2026 [41] Question: Market impact of public Bitcoin miners winding down operations - Management believes the global hash rate will not slow down in the near term, despite some miners facing balance sheet pressures [44] Question: Inventory levels for the A15 series and guidance for Q2 2025 - Inventory at the end of Q3 is approximately $200 million, with expectations for lower levels in Q1 2025 due to market uncertainties [62] Question: Self-mining objectives and power tariff rates in Ethiopia - The company plans to slow the pace of adding self-mining hash rate while focusing on delivering large orders and developing power resources [70][73] Question: Details on the $56 million wafer purchase and $90 million in processing - The $56 million reflects prepayments for wafers, while the $90 million includes various supply chain expenses [80][86]

Financial Performance - Total revenue reached $150.5 million in Q3 2025, exceeding guidance of $125 million-$145 million[10, 13] - Revenue increased by 104% year-over-year and 50% quarter-over-quarter[13] - Gross profit was $16.6 million, a 79% increase quarter-over-quarter[13] - Operating loss was $23.9 million, compared to $27.1 million in Q2[13] - Q4 revenue is projected to be between $175 million and $205 million[64, 69] Revenue Streams - Industrial Mining Equipment revenue was $105.8 million, up 69% year-over-year and 61% quarter-over-quarter[15, 17] - Home Mining Equipment revenue was $12.2 million, up 818% year-over-year and 115% quarter-over-quarter[15, 17] - Self-mining revenue was $30.6 million, up 241% year-over-year and 9% quarter-over-quarter[15, 17] Self-Mining Operations - The company held 1,582 bitcoins as of September 30, 2025, with a market value of approximately $179 million[33] - As of October 30, 2025, the company held 1,610 bitcoins[13] - 279 bitcoins were mined in Q3 2025, a 2% decrease quarter-over-quarter[17, 33] - Installed computing power was 9.3 EH/s as of the end of Q3, a 14% increase quarter-over-quarter[17] Computing Power and ASP - Computing power sold reached 10.0 million TH/s (10 EH/s) in Q3 2025[13, 20] - The average selling price (ASP) was $11.8 per TH/s[13, 20] Share Repurchase Program - The company repurchased approximately 5.08 million ADSs for about $3.4 million as of November 18, 2025[83]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a pressing concern regarding the energy supply needed to sustain this growth [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of small cities, indicating a significant strain on global power grids [2] - The company in focus is positioned to capitalize on the rising demand for electricity, which is becoming the most valuable commodity in the digital age [3][8] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, benefiting from tariffs and the onshoring trend driven by U.S. policies [5][6] - It possesses critical nuclear energy infrastructure assets and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] - The company is debt-free and has a substantial cash reserve, equating to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] Market Position - The company also holds a significant equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9][10] - It is trading at less than 7 times earnings, making it an attractive investment option in the AI and energy sectors [10][11] - The influx of talent into AI ensures continuous innovation, further solidifying the company's potential for growth in this rapidly evolving field [12][13] Future Outlook - The convergence of AI, energy infrastructure, and U.S. energy policies presents a unique investment opportunity, with projections of significant returns within the next 12 to 24 months [15][19] - The company is positioned to thrive amidst the disruption caused by AI, as traditional industries adapt to new technologies [11][12]