Canaan(US:CAN)2023-05-26 15:51Financial Data and Key Metrics Changes - In Q1 2023, total revenue was $55.2 million, down from $58.3 million in Q4 2022 and significantly lower than $201.8 million in Q1 2022 [35] - Gross loss for Q1 2023 was $47.5 million, an improvement from a gross loss of $64.1 million in Q4 2022 [36] - Net loss narrowed to $84.4 million in Q1 2023 from $91.6 million in Q4 2022 [36] Business Line Data and Key Metrics Changes - Mining machine sales revenue was $43.7 million, a decrease of 7.6% from $47.3 million in the previous quarter [27] - Mining revenue increased to $11 million, a 3.3% sequential increase from $10.7 million in Q4 2022, marking a new record high [29] - AI revenue reached $0.41 million, a 68.6% increase compared to $0.24 million in Q4 2022 [30] Market Data and Key Metrics Changes - The average selling price of computing power dropped to $10 per terahash per second, despite a 126.8% increase in sales volume to 4.2 million terahash per second [27] - The company faced challenges due to U.S. bank failures, which caused delays in payments and shipments [13] Company Strategy and Development Direction - The company focuses on four strategic areas: long-term R&D and production capacity investment, enhancing the sales system, expanding mining deployment, and maintaining a solid balance sheet [8] - The company aims to continue its mining strategy and has established partnerships to expand its mining operations [15][41] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment, noting that the price of bitcoin may continue to fluctuate [20] - For Q2 2023, the company expects revenue of approximately $72 million, reflecting a 30% increase from Q1 [35] Other Important Information - The company changed its reporting currency from renminbi to U.S. dollars to better reflect global sales [25] - As of March 31, 2023, the company held 623 bitcoins, down from 757 at the end of 2022 [33] Q&A Session Summary Question: What is the self-mining hash rate target for the year and geographic information on equipment sales? - Management indicated that deployed computing power exceeded 5 exahash per second, with expectations to reach around 4.5 exahash in Q2 [39][41] - The leading market remains the U.S., but opportunities are growing in Southeast Asia, the Middle East, and South America [42] Question: What is the company's strategy regarding bitcoin sales? - The company currently has no plans to sell its bitcoin holdings, focusing instead on long-term appreciation [54] Question: Can you comment on the Cipher sale and pricing environment? - The company secured a sale of 11,000 units to Cipher, but the overall pricing environment remains challenging with low prices due to high inventory levels [56][58] Question: What is the estimated revenue contribution for the A13 series? - The A13 series accounted for 47% of total machine sales revenue in Q1, with expectations to become the largest revenue source in Q2 [65] Question: What is the reasonable revenue mix for the mining business in the long term? - The mining business is expected to contribute around 15% to 20% of total revenue in the future, with potential growth opportunities [70]