Canaan CEO: In the next 6 months, we will carry out mining and holding digital currency related businesses

Original title: "Canaan Technology Announces Third Quarterly Report, Pre-sale Orders Exceeded $45 Million in the First Quarter of Next Year"

Original Source: Canaan Intellectual

On November 30, Beijing time, Canaan Technology (NASDAQ:CAN) announced its financial report for the third quarter of 2020 as of September 30, with revenue of US$24.01 million, a decrease of 8.5% from the second quarter. As of the end of the third quarter, the company's advance receipts were US$11.14 million, an increase of US$10.98 million from the end of the second quarter.

 

In addition, the financial report shows that the company has relatively abundant cash flow. As of September 30, 2020, the company had cash and cash equivalents of US$26.12 million. Research and development expenses in the third quarter were US$4.73 million, an increase of nearly 23% from the previous quarter. The company previously announced a stock repurchase plan with a total amount of no more than US$10 million. As of October 30, the company had completed a total of 1.225 million shares repurchased, with a transaction amount of US$2.43 million.

 

Zhang Nangeng, chairman and CEO of Canaan, said that as of the end of November, the total delivery amount of mining machine pre-sale orders in the fourth quarter of this year and the first quarter of next year was more than 45 million US dollars . At the same time, the company expects to carry out mining business and holding digital currency related business in the next 6 months.

 

At the same time, Zhang Nangeng also revealed that the current monthly shipments of AI chips have stabilized at around 30K, and the monthly shipments are expected to be above 50K next year, which will help Push AI business revenue to exceed 10 million level. The next-generation artificial intelligence chip K510, which is expected by the outside world, has also been put into production and is expected to be released in the first quarter of next year.

 

The pre-sale orders for the latest main mining machines have increased significantly

 

For the reasons for the quarter-on-quarter decline in revenue, the company It explained that the company's sales in the second quarter were mainly based on inventory, and the inventory had been basically sold out by the beginning of the third quarter. After the end of the second quarter, the market gradually became clearer, and the company's mass production and wafer launch will gradually start in the third quarter, but these wafers put into production in the third quarter will basically be made 90-120 days later, that is, in the fourth quarter and the first quarter of next year. The complete machine has begun to be delivered to customers, so it does not contribute much to its own revenue in the third quarter.

 

In terms of mining machine products, the company launched a series of products mainly A1246 in the third quarter. The product design energy efficiency ratio is 38J/T-hash, and the total computing power of a single machine is 90T -Hash/s and has the lowest unit cost in the industry. This series of products greatly optimizes the computing power and energy efficiency ratio, meeting the market demand for mining machines with large computing power and low energy efficiency ratio.

 

The company received a large number of pre-sale orders in the third quarter, and the company continued the momentum of a large number of pre-sales in the fourth quarter. End of first quarter 2021. As of the end of November, the total amount of pre-sale orders delivered in the fourth quarter of this year and the first quarter of next year has exceeded 45 million US dollars.

 

Ai head cooperation is carried out smoothly overseas and government projects are implemented

 

In terms of AI, commercialization It is growing rapidly. The company applies the self-developed artificial intelligence chip K210 to sensor hardware in the US office field and a new generation of hardware sensors from the SaaS company Verge Sense to meet the functional requirements of social safety distance detection caused by the new crown epidemic. Purchased more than 4,000 chips from the company for mass production, and landed in the US market as the company's first international product development order.

 

The company is currently cooperating with UBTECH and DJI, mainly based on the K210's visual capabilities to provide AI capabilities for the educational product line, such as allowing students to participate in programming competitions Robotic products such as unmanned vehicles. Among them, the cooperation products of the company and UBTECH have been released, and the products of cooperation with DJI will be launched in 2021. Zhang Nangeng, chairman and CEO of Canaan Technology, said that the company has a great competitive advantage in terms of power consumption and cost of this part of the product.

 

At the same time, the company is also actively participating in smart city projects. Through the cooperation with Jiuchan smart door lock project, the company has successfully won the bids for several government online lock bidding projects. Through cooperation with Zhongke Brain, the company has also successfully integrated the application of K210 and its successor products into the overall operation of Haidian District City Brain.

 

Zhang Nangeng revealed that the current monthly shipments of AI chips have stabilized at around 30K, and are expected to stabilize at more than 50K next year, which will boost the AI business Income exceeded ten million levels.

 

Future: Relying on chips to strengthen the blockchain ecosystem, new AI chips have been put into production

 

Zhang Nangeng said that in the past six months, the company has conducted sufficient research and demonstration on domestic and foreign markets and policy environments, and has accumulated sufficient industry resources and experience for the development of new businesses. And hold digital currency to make final preparations. At the same time, Zhang Nangeng said that although the company will directly participate in mining, it will not participate in the construction of mining pools in a short time.

The company is expected to carry out mining-related business in the next 6 months. It can make the company's supply chain produce smoothly, improve the company's sales and inventory, enable the company to obtain more profits, and enjoy the dividends of the rapid development of the blockchain industry. In the future, the company is not only a hardware equipment manufacturer, but the company will also use mining machines as the cornerstone to develop upwards and become a company with a complete blockchain ecological chain.

 

It will be officially released in the first quarter of next year. Based on K510's ultra-low cost and high performance, a number of killer products have been launched for high-end smart IPC, smart home, smart retail, smart security and other fields.

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