Canaan Inc (CAN) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to Canaan Inc's third-quarter of 2024 earnings conference call. (Operator Instructions) Please note that this event is being recorded.

女士們先生們，感謝你們的支持並歡迎參加嘉楠耘智公司 2024 年第三季財報電話會議。（操作員說明）請注意，該事件正在被記錄。

Now, I'd like to hand the conference over to your speaker host today, Ms. Gwyn Lauber, Investor Relations Director of the company. Please go ahead, Gwyn.

現在，我想將會議交給今天的演講主持人，公司投資者關係總監 Gwyn Lauber 女士。請繼續，格溫。

Thank you. Hello everyone and welcome to the earnings conference call. Joining us today are our Chairman and CEO, Mr. Nangeng Zhang, and our CFO, Jin James Cheng. Leo Wang, Vice President of Capital Markets and Corporate Development; and Xi Zhang, Senior Manager of IR, will also be available during the question-and-answer session.

謝謝。大家好，歡迎參加財報電話會議。今天加入我們的是我們的董事長兼執行長張南庚先生和財務長鄭進。Leo Wang，資本市場與企業發展副總裁；投資人關係資深經理張曦也將出席問答環節。

Our CEO will start the call by providing an overview of the company and performance highlights for the quarter. Our CFO will then provide details on the company's operating and financial results for the period before we open up the call for questions.

我們的執行長將首先介紹公司概況和本季業績亮點。然後，在我們開始提問之前，我們的財務長將提供有關該期間公司營運和財務表現的詳細資訊。

Before we begin, I would like to refer you to our Safe Harbor statement in our earnings press release today's call will include forward-looking statements. These statements include, but are not limited to our outlook for the company and statements that estimate or project future operating results for the performance of the company.

在我們開始之前，我想請您參閱我們的收益新聞稿中的安全港聲明，今天的電話會議將包括前瞻性聲明。這些陳述包括但不限於我們對公司的展望以及估計或預測公司業績未來經營業績的陳述。

These statements speak only as of today and the company assumes no obligation to revise any forward-looking statements that may be made in today's press release call or webcast, except as required by law. These statements do not guarantee future performance and are subject to risks uncertainties and assumptions.

這些聲明僅代表今天，本公司不承擔修改今天的新聞稿電話會議或網路廣播中可能做出的任何前瞻性聲明的義務，除非法律要求。這些陳述不保證未來的業績，並受到風險不確定性和假設的影響。

Please refer to the press release and the risk factors and documents we file with the securities and exchange commission including our most recent annual report on Form 20-F for information on risks uncertainties and assumptions that may cause actual results to differ materially from those set forth in such statements.

請參閱新聞稿以及我們向證券交易委員會提交的風險因素和文件，包括我們最新的 20-F 表年度報告，以了解可能導致實際結果與所載結果存在重大差異的風險不確定性和假設的資訊在這樣的聲明中。

In addition, during today's call and webcast, we will discuss both GAAP financial measures and certain non-GAAP financial measures which we believe are useful as supplemental measures of the company's performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.

此外，在今天的電話會議和網路廣播中，我們將討論 GAAP 財務指標和某些非 GAAP 財務指標，我們認為這些指標可作為公司業績的補充指標。這些非公認會計原則措施應作為公認會計原則結果的補充，而不是替代或孤立於公認會計原則結果。

You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release, which is posted on the company's website. With that, I will turn the call over to our Chairman and CEO Mr. Nangeng Zhang. Please go ahead, sir.

您可以在我們發佈在公司網站上的收益新聞稿中找到有關這些非公認會計原則衡量標準的其他披露信息，包括與可比公認會計原則結果的調節表。接下來，我將把電話轉給我們的董事長兼執行長張南庚先生。請繼續，先生。

Hello everyone. This is NG, the CEO of Canaan. Thank you for joining our conference call. Our CFO James and I are pleased to share with you our third quarter results and recent developments.

大家好。我是NG，迦南的執行長。感謝您參加我們的電話會議。我們的財務長詹姆斯和我很高興與您分享我們第三季的業績和最新進展。

I believe everyone is thrilled with the Bitcoin price reaching new heights and I share in this excitement. Q3 2024 marked our first complete quarter after the halving. During this quarter, the global Bitcoin mining market faced another round of challenges from Bitcoin price volatility. We saw average Bitcoin price decline by over 7% compared to the last quarter.

我相信每個人都對比特幣價格達到新的高度感到興奮，我也分享這種興奮。2024 年第三季是減半後我們第一個完整的季度。本季度，全球比特幣挖礦市場面臨比特幣價格波動的另一輪挑戰。與上季相比，我們看到比特幣平均價格下降了 7% 以上。

At the same time, the total network hash rate has grown by more than 10%. This combination pushed the hash price to historical lows, putting pressure on miners’ profits. Despite these headwinds, we executed our plans efficiently, paying careful attention to every detail.

同時，全網算力成長超過10%。這種結合將哈希價格推至歷史低點，給礦工的利潤帶來壓力。儘管存在這些阻力，我們仍然有效地執行了我們的計劃，並仔細注意每一個細節。

Throughout Q3, we continued bulk deliveries of our A14 products. We completed the transition to mass production of our A15 series. We expanded our global sales reach, and we optimized our mining operations. I'm pleased to report that we have not only met our targets, but slightly exceeded them reaching USD73.6 million in total revenue.

在整個第三季度，我們繼續大量交付 A14 產品。我們完成了 A15 系列的量產過渡。我們擴大了全球銷售範圍，並優化了採礦作業。我很高興地向大家報告，我們不僅達到了目標，而且還略微超出了目標，總收入達到 7360 萬美元。

Let me walk you through each area in detail. Innovation remains the cornerstone of our business. Our ongoing R&D investments allow us to constantly deliver high performance products that meet market demands and drive our business growth.

讓我詳細介紹每個區域。創新仍然是我們業務的基石。我們持續的研發投資使我們能夠持續提供滿足市場需求並推動業務成長的高效能產品。

This quarter, we began the initial small-scale delivery of our new A15 series ahead of schedule. Through internal improvements and by working closely with our foundry partners through the DTCO process, we have made substantial improvements to both the performance and the yield rate of the A15 series over recent months.

本季度，我們提前開始了新 A15 系列的首次小規模交付。透過內部改進以及透過 DTCO 流程與代工合作夥伴密切合作，近幾個月來我們對 A15 系列的性能和良率進行了大幅改進。

Our top model in the A15 series, the A15 Pro delivers 215 terahash per second of computing power with power efficiency as low as 16.8 joules per terahash. We are fully confident in our ability to scale up mass production for the A15 series.

A15 Pro 是我們 A15 系列中的頂級型號，可提供每秒 215 terahash 的運算能力，而能源效率低至每 terahash 16.8 焦耳。我們對A15系列的量產能力充滿信心。

We are continuously improving and expanding our A15 product line, while developing customized solutions for specific mining needs. A recent example is our partnership with CleanSpark where we will provide A1566I immersion cooling miners that deliver 249 per terahash per unit at base clock speeds. These comprehensive mining solutions have proven their reliability and durability, performing steadily even in the extreme heat of the Middle East. For consumer products that target individual enthusiasts, we have combined household appliance concepts with decentralization principles. Following the success of our Nano 3 product, we are developing more consumer level products. These new offerings will make mining more accessible to the general public, helping us reach a broader customer base. The development of our A16 series is proceeding according to plan. As always, we will announce specific details only after completing full machine testing. The A16 series will use more advanced process nodes. Through optimization and close collaboration with our foundry partners, we aim to achieve power efficiency in the 10-plus joules per terahash range. For our air-cooled machines, we expect computing power to approach 300 terahash per second.

我們不斷改進和擴展 A15 產品線，同時開發針對特定採礦需求的客製化解決方案。最近的一個例子是我們與 CleanSpark 的合作，我們將提供 A1566I 浸入式冷卻礦機，在基本時脈速度下每單位可提供 249 個太哈希值。這些全面的採礦解決方案已經證明了其可靠性和耐用性，即使在中東的酷熱條件下也能穩定運作。對於針對個人愛好者的消費性產品，我們將家電概念與去中心化原則結合。繼 Nano 3 產品取得成功之後，我們正在開發更多消費級產品。這些新產品將使採礦業更容易為大眾所接受，幫助我們覆蓋更廣泛的客戶群。我們的A16系列的開發正在按計劃進行。像往常一樣，我們只會在完成整機測試後才會公佈具體細節。A16系列將採用更先進的製程節點。透過優化和與代工廠合作夥伴的密切合作，我們的目標是實現 10 焦耳/太哈哈希範圍內的能源效率。對於我們的風冷機器，我們預計運算能力將接近每秒 300 terahash。

In terms of mining machine sales, primarily driven by continued mass delivery of our A14 series miners, we achieved sales of 7.30 million terahash per second in computing power. This represents a year-over-year increase of 93.8%, and a quarter-over-quarter increase of 16.4%, marking our highest sales volume in the past 11 quarters. Although impacted by Bitcoin, price with the average selling price of computing power for Q3 decreased slightly quarter over quarter, our strong sales volume drove product revenue to USD64.58 million, the best record in the past two years.

礦機銷售方面，主要得益於A14系列礦機的持續批量交付，我們實現了算力銷售730萬太哈希/秒。年成長93.8%，季增16.4%，創下過去11個季度以來的最高銷量。儘管受比特幣影響，第三季算力平均售價較上季略有下降，但強勁的銷售帶動產品收入達到近兩年來最好的6,458萬美元。

Since its launch in May, our new A15 series has received significant attention and positive customer feedback. This quarter, we successfully initiated small-scale delivery of the A15 series, delivering about 1,500 units. We've also begun stocking advanced models. With traditional models largely cleared out, our inventory mix has further improved. Following the US election, Bitcoin prices rose, driving increased demand for mining machines. The inventory of these new models has positioned us well to meet the expected surge in customer demand. As of now, scheduled deliveries for A15 orders extend through February 2025.

自5月推出以來，我們的全新A15系列受到了極大的關注和客戶的正面回饋。本季度，我們成功啟動了A15系列的小規模交付，交付量約為1,500台。我們也開始儲備先進型號。隨著傳統車型基本出清，我們的庫存結構進一步改善。美國大選後，比特幣價格上漲，帶動礦機需求增加。這些新型號的庫存使我們能夠很好地滿足預期的客戶需求激增。截至目前，A15 訂單的預定交貨時間將延長至 2025 年 2 月。

Our multi-dimensional sales system continues to drive global sales. In North America, we recently secured an order from the listed mining company, CleanSpark, for 3,800 A1566I immersion cooling miners, with delivery planned for the fourth quarter. In early November, we also reached agreements with a long-standing public mining customer, HIVE, for a total of 11,500 units of A1566 miners with deliveries starting in the fourth quarter. Our previous order with Cipher for 6,600 units A15 is also being delivered on schedule. These partnerships reflect the progress of our ongoing product promotion and sales system development in North America, with more North America customers, recognizing our product performance and delivery capabilities. Following the halving, we've seen growing customer demand in regions with energy advantages, such as Asia and Africa. Our computing power deliveries to these regions increased by over 50% sequentially. This quarter, we delivered over 10,000 A14 miners to customers in the Middle East. Our products have demonstrated exceptional stability in high temperature environments, expanding our brand awareness and reputation in local markets. Additionally, by the end of the third quarter, our portable mining heater, Avalon Nano 3, had accumulated orders for 17,000 units, with over 10,000 units shipped during the third quarter.

我們的多維銷售體系持續推動全球銷售。在北美，我們最近從上市礦業公司 CleanSpark 獲得了 3,800 台 A1566I 浸入式冷卻礦機的訂單，計劃於第四季度交付。11月初，我們也與長期公共挖礦客戶HIVE達成協議，購買總計11,500台A1566礦機，並從第四季開始交付。我們之前向 Cipher 訂購的 6,600 台 A15 也已按期交付。這些合作關係反映了我們在北美正在進行的產品推廣和銷售系統開發的進展，讓更多的北美客戶認可了我們的產品性能和交付能力。減半後，我們看到亞洲和非洲等具有能源優勢的地區的客戶需求不斷增長。我們交付給這些地區的運算能力連續增加了 50% 以上。本季度，我們向中東客戶交付了超過10,000台A14礦機。我們的產品在高溫環境下表現出卓越的穩定性，擴大了我們在當地市場的品牌知名度和聲譽。此外，截至第三季末，我們的便攜式礦用加熱器Avalon Nano 3已累計訂單17,000台，第三季出貨量超過10,000台。

Online sales have become the primary channel for Nano 3, reaching customers in 79 countries and regions with positive market responses. The strong sales of Nano 3 have broadened our product line, promoted our brand, and demonstrated our ability to meet diverse customer needs.

線上銷售已成為Nano 3的主要管道，客戶遍及79個國家和地區，市場反應良好。Nano 3的強勁銷售拓寬了我們的產品線，提升了我們的品牌，並展示了我們滿足多樣化客戶需求的能力。

Regarding our mining operations this quarter, we overcame challenges posed by stagnant Bitcoin prices and rapidly increasing network hash rates. Our mining revenue reached USD9 million, remaining stable compared to the second quarter and outperforming the industry average. Despite soft Bitcoin prices in the third quarter, we managed to produce 147 Bitcoins, a 5% increase quarter over quarter, a remarkable performance in the industry. This growth is driven by the expansion and optimization of our mining projects in Africa, along with favorable conditions during the wet season. The wet season in Africa arrived later this year, concentrated after August, which effectively boosted our mining output this quarter. Despite network hash prices hitting historic lows due to price fluctuations, our mining operations still achieved a gross margin of 22% this quarter. In North America where the regulatory environment is relatively stable and energy resources are abundant, we continued active negotiations with several mining partners this quarter, making positive progress. Today, we are pleased to announce a 30 megawatts joint mining project with Luna Square in Texas, involving about 1.61 exahash per second of computing power. This deployment includes 3,480 A14 series and 5,664 A15 series units expected to come online in Q1 of 2025. Our previous joint mining venture with Stronghold has been upgraded to 6,000 A14 series miners, totaling about 0.9 exahash per second, and is scheduled to come online by this year's end. To better support our mining site and equipment investments and sales in North America, we have been actively securing funding. Today, we announce a new USD30 million preferred stock financing agreement with an existing investor, which, like their USD50 million investment in September, supports our goal of reaching 10 exahash per second deployed computing power in North America by the first half of 2025. Achieving this goal will significantly enhance our influence in the North American mining community. By the quarter-end, our Bitcoin holdings on the balance sheet increased to 1,231 Bitcoins, setting another record high. This not only demonstrates the steady development of our mining operations, but also reflects our strong confidence in Bitcoin's long-term value. We believe our mining operations will contribute even more significantly to the company as market conditions improve and our strategic deployment advances.

關於本季的挖礦業務，我們克服了比特幣價格停滯和網路哈希率快速成長帶來的挑戰。挖礦收入達到900萬美元，與第二季相比保持穩定，優於產業平均。儘管第三季比特幣價格疲軟，但我們還是產出了 147 個比特幣，環比成長 5%，在業界表現出色。這一增長得益於我們在非洲採礦計畫的擴張和優化，以及雨季的有利條件。今年非洲的雨季到來，集中在8月之後，有效提升了我們本季的挖礦產量。儘管由於價格波動，網路哈希價格觸及歷史低點，但我們的挖礦業務本季仍實現了 22% 的毛利率。在監管環境相對穩定、能源資源豐富的北美地區，本季我們繼續與多家礦業合作夥伴積極談判，並取得了積極進展。今天，我們很高興地宣布與德州 Luna Square 合作啟動 30 兆瓦聯合挖礦項目，涉及每秒約 1.61 exahash 的算力。此次部署包括 3,480 台 A14 系列和 5,664 台 A15 系列設備，預計將於 2025 年第一季上線。我們先前與Stronghold 的合資礦機已升級至 6000 台 A14 系列礦機，總計約每秒 0.9 exahash，計劃今年年底上線。為了更好地支持我們在北美的礦場和設備投資和銷售，我們一直在積極爭取資金。今天，我們宣布與現有投資者達成一項新的3000 萬美元優先股融資協議，該協議與他們9 月份的5000 萬美元投資一樣，支持我們到2025 年上半年在北美實現每秒10 exahash 部署計算能力的目標。實現這一目標將顯著增強我們在北美礦業界的影響力。到季末，我們資產負債表上的比特幣持股增加至 1,231 個比特幣，再創歷史新高。這不僅體現了我們挖礦業務的穩健發展，也反映了我們對比特幣長期價值的堅定信心。我們相信，隨著市場狀況的改善和我們策略部署的推進，我們的採礦業務將為公司做出更大的貢獻。

On the operational front, we’ve maintained our focus on internal improvements while facing external challenges, working to optimize management and increase operational efficiency. This quarter, while maintaining our R&D investments, we continued prudent control over marketing and management expenses, keeping overall operating expenses streamlined at levels similar to last quarter. Excluding non-cash factors such as fixed asset impairment due to the halving and Bitcoin price fluctuations, as well as changes in the fair value of financing investments, our non-GAAP EBITDA loss was USD36.80 million, narrowing 46% year over year. Our cash reserves reached USD72 million at quarter-end. This enhanced cash position enables us to accelerate investment in A15 mass production and better support our sales expansion and mining projects in North America, laying a solid foundation for the company's next development phase.

在營運方面，我們在堅持內部改善的同時，面對外部挑戰，努力優化管理，提高營運效率。本季度，我們在維持研發投入的同時，繼續審慎控制行銷和管理費用，使整體營運費用維持在與上季相似的水平。剔除減半、比特幣價格波動導致的固定資產減損以及融資投資公允價值變動等非現金因素，我們的非公認會計準則 EBITDA 虧損為 3,680 萬美元，較去年同期收窄 46%。截至季末，我們的現金儲備達到 7,200 萬美元。現金狀況的增強使我們能夠加快對A15量產的投資，更好地支持我們在北美的銷售擴張和採礦項目，為公司下一階段的發展奠定堅實的基礎。

Looking ahead to the fourth quarter, we are making steady progress in improving the yield rate and ramping up production capacity for the A15 series, which will enter large scale delivery as planned. Recently, we secured bulk orders for the A1566 model with several major publicly listed mining companies, with deliveries beginning this quarter and continuing into at least the first quarter of next year. With Bitcoin prices rising significantly, we have started to adjust our pricing for both spot and contract sales orders, aligning these orders with market conditions. We are also increasing the proportion of advance payments for contract sales orders. The primary R&D work for the A16 series is expected to conclude this quarter.

展望第四季度，A15系列良率提升、產能提升穩步推進，將按計畫進入大規模交付。最近，我們與幾家主要上市礦業公司獲得了 A1566 型號的批量訂單，交付從本季度開始，至少持續到明年第一季。隨著比特幣價格大幅上漲，我們開始調整現貨和合約銷售訂單的定價，使這些訂單與市場狀況保持一致。我們也提高了合約銷售訂單預付款的比例。A16系列的主要研發工作預計將於本季完成。

Additionally, as mentioned last quarter, we are developing a consumer-level product line. With winter approaching in the Northern Hemisphere, we will soon unveil several new products that combine home heating with decentralized mining. These products are designed to provide both practical value and economic rewards to customers. Meanwhile, our mining business, particularly in North America, continues to make progress with deployment plans underway. Through these efforts, we aim to strengthen our performance, making 2024 an increasingly successful year.

此外，正如上季所提到的，我們正在開發消費級產品線。隨著北半球冬季的臨近，我們很快就會推出幾款將家庭供暖與分散式挖礦相結合的新產品。這些產品旨在為客戶提供實用價值和經濟回報。同時，我們的採礦業務，特別是在北美，隨著部署計劃的實施，繼續取得進展。透過這些努力，我們的目標是增強我們的業績，使 2024 年成為日益成功的一年。

Based on these comprehensive factors, we maintain a cautiously optimistic outlook for the fourth quarter of 2024. We expect revenue for the fourth quarter to be approximately USD80 million. This guideline is based on the company's current market and operational conditions, and actual results may vary.

綜合這些因素，我們對2024年第四季的前景維持謹慎樂觀。我們預計第四季營收約為8000萬美元。該指引基於公司當前市場和營運狀況，實際結果可能會有所不同。

With Bitcoin's fourth halving completed, the Federal Reserve signaling a rate-cutting cycle, and the recent conclusion of US elections, numerous market variables are becoming clear. We have seen Bitcoin price beginning to stabilize and rise recently. In North America, increasingly crypto-friendly communities are emerging, with more miners expanding their mining facilities and data centers. These are all positive factors that we’ve observed. On the other hand, we believe the current bull market is only beginning. This is a critical period before miners' profitability explosion and the reversal of computing power supply-demand dynamics. At this important market juncture, we are ready with our high-performance A15 series products for mass delivery. Meanwhile, we continue to invest in new product development to meet diverse needs of various miners and consumer customers, maintaining ongoing investment in production capacity, and further enhance our delivery capabilities. We are fully advancing our sales and partnership strategies within key markets like North America, leveraging our compliance advantages as a US-listed company, actively embracing the market, and participating in Bitcoin mining cooperation in various forms. We are confident that together with our customers and partners, we can seize the enormous market opportunities in this bull market and achieve growth together. This concludes my prepared remarks. Thank you, everyone. I will now turn the call over to our CFO, James. Thank you.

隨著比特幣第四次減半的完成、聯準會釋放降息週期訊號以及近期美國大選的結束，許多市場變數逐漸明朗。我們看到比特幣價格最近開始穩定並上漲。在北美，越來越多的加密友善社區正在興起，越來越多的礦工擴大了他們的採礦設施和資料中心。這些都是我們觀察到的正面因素。另一方面，我們認為目前的牛市才剛開始。這是礦工獲利爆發和算力供需動態逆轉之前的關鍵時期。在這個重要的市場關頭，我們的高性能A15系列產品已準備好批量交付。同時，我們持續投資新產品開發，滿足各類礦工和消費客戶的多元需求，維持持續的產能投資，進一步提升我們的交付能力。我們正全力推動北美等重點市場的銷售和合作策略，利用美股上市公司的合規優勢，積極擁抱市場，以多種形式參與比特幣挖礦合作。我們有信心與我們的客戶和合作夥伴一起，抓住這個牛市中巨大的市場機遇，共同實現成長。我準備好的發言到此結束。謝謝大家。我現在將把電話轉給我們的財務長詹姆斯。謝謝。

Thank you, NG. And good day, everyone. This is James, CFO of Canaan. I'm very glad to share our Q3 financial results with you together with our CEO. As NG stated at the top of the call, the third quarter of 2024 was a challenging quarter, given that it was the industry's first complete quarter post-halving.

謝謝你，NG。大家好。我是詹姆斯，迦南的財務長。我很高興與我們的執行長一起與您分享我們第三季的財務表現。正如 NG 在電話會議開頭所言，2024 年第三季是充滿挑戰的季度，因為這是該行業減半後的第一個完整季度。

The average Bitcoin price declined by over 7% sequentially, but the total network hash rate grew by more than 10%. As a result, miners' margin was further squeezed. Facing this challenging quarter, we continued with the bulk delivery of A14 products, further improved the performance of yield and energy efficiency of the A15 series, completed the mass production introduction for the A15 series, strived to expand the global sales, and continuously optimized operations. Let me give a quick summary of our financial performance in quarter three. First, with continuing large-scale deliveries of our A14 series, we achieved total revenue of nearly $74 million, which beat our guidance of $73 million, marking year-over-year growth of around 121%. This was the highest revenue that we generated in the past five quarters. Moreover, our penetration into the North American market enabled some important breakthroughs. By the date of this earnings call, we have secured some significant orders for our A15 series from customers, including listed mining companies in North America, such as HIVE and CleanSpark. Together with Cipher and Stronghold, more and more listed companies are choosing our A15 series products for their mining operations.

比特幣平均價格較上季下降超過 7%，但總網路哈希率成長超過 10%。結果，礦工的利潤進一步受到擠壓。面對這個充滿挑戰的季度，我們持續A14產品的大量交付，進一步提升A15系列的良率與能源效率表現，完成A15系列的量產導入，努力擴大全球銷售量，持續優化營運。讓我快速總結一下我們第三季的財務表現。首先，隨著 A14 系列的持續大規模交付，我們實現了近 7,400 萬美元的總收入，超出了 7,300 萬美元的指導，同比增長約 121%。這是我們過去五個季度創造的最高收入。此外，我們對北美市場的滲透實現了一些重要突破。截至本次財報電話會議之日，我們已從客戶那裡獲得了 A15 系列的一些重要訂單，其中包括北美上市礦業公司，例如 HIVE 和 CleanSpark。與Cipher、Stronghold一起，越來越多的上市公司選擇我們的A15系列產品進行挖礦業務。

Secondly, compared to the overall situation of the industry, our mining performance this quarter exceeded our expectations despite the unfavorable average Bitcoin price, because of our ongoing expansion in mining operations. We mined 147 Bitcoins and generated $9 million of mining revenue in this quarter, with an average revenue per Bitcoin mined of over $61,000. Our self-mining hash rates reached around 4.6 exahash per second, which helped our owned Bitcoin accumulate to a record high total of 1,212 Bitcoins, a sequential increase of 98 Bitcoins. We are committed to our plan of reaching 10 exahash capacity in North America in mid-2025, and we have taken some significant steps towards this target, including our upcoming collaboration with Luna Square, which added about 1.6 exahash in Texas, United States, and our collaboration with Stronghold, which added about 0.9 exahash in Pennsylvania, United States.

其次，與產業整體情況相比，儘管比特幣平均價格不利，但由於我們不斷擴大挖礦業務，本季的挖礦業績超出了我們的預期。本季我們開採了 147 個比特幣，產生了 900 萬美元的挖礦收入，每開採一個比特幣的平均收入超過 61,000 美元。我們的自挖礦算力達到每秒 4.6 exahash 左右，這幫助我們擁有的比特幣累積達到歷史新高，總計 1,212 個比特幣，環比增加了 98 個比特幣。我們致力於實現到2025 年中期在北美達到10 exahash 容量的計劃，並且我們已經採取了一些重大步驟來實現這一目標，包括我們即將與Luna Square 合作，該項目在美國德克薩斯州和美國德州增加了約1.6 exahash我們與 Stronghold 合作，在美國賓州增加了約 0.9 exahash。

Thirdly, our inventory balance declined significantly in this quarter and reached its lowest point in the past three years. As the percentage of inventory value from our older series sharply reduced, our inventory structure was further optimized. As of the end of quarter three, the inventory value of the A13 series was lower than 20% of the total inventory value. At this point, we are prepared to meet more of our customer needs with newer models.

第三，本季我們的庫存餘額大幅下降，達到近三年來的最低點。老系列庫存佔比大幅下降，庫存結構進一步優化。截至第三季末，A13系列的庫存價值低於總庫存價值的20%。目前，我們已準備好用更新的型號來滿足更多客戶的需求。

Let's start to take a look at the profit and loss. As I said, in quarter three, our total revenue was around $74 million. Revenue from machine sales was around $64 million. We delivered a total computing power sold of 7.3 million terahash per second, representing a year-over-year increase of around 94%, and marking our highest sales volume in the past 11 quarters. The average selling price, or ASP, increased by 12% year over year, from $7.9 per terahash per second to $8.8 per terahash per second. Driven by the increased computing power sold and ASP, revenue from machine sales increased by around 117% year over year. From the product side, our large-scale delivery of A14 series contributed nearly 80% of machine sales revenue. The A15 series started small batch delivery in the quarter and we have secured some significant orders for this product line from key clients in North America, such as CleanSpark and HIVE. From the sales side, our multi-dimensional global sales system made positive progress in several key regional markets during the quarter. In quarter three, our customers from the Middle East and North America contributed 39% and 16% of our machine sales revenue.

我們先來看看損益。正如我所說，第三季我們的總收入約為 7,400 萬美元。機器銷售收入約 6,400 萬美元。我們銷售的總算力達到每秒 730 萬太哈希，年增約 94%，創下過去 11 個季度以來的最高銷量。平均售價 (ASP) 年增 12%，從每太拉哈希每秒 7.9 美元增加到每秒每太哈希 8.8 美元。在銷售算力和平均售價增加的推動下，機器銷售收入較去年同期成長約117%。從產品端來看，我們A14系列的大規模交付貢獻了近80%的整機銷售收入。A15系列在本季度開始小批量交付，我們已經從北美主要客戶（例如CleanSpark和HIVE）獲得了該產品線的一些重要訂單。從銷售方面來看，本季我們多維度的全球銷售體系在幾個重點區域市場取得了積極進展。第三季度，來自中東和北美的客戶貢獻了我們機器銷售收入的39%和16%。

Turning to the revenue from our Avalon Nano 3 mining heater, which diversified our product revenue streams. In quarter three, we delivered over 10,000 Nano 3 heaters and recognized around $1.4 million in revenue from these sales. The accumulated orders for Nano 3 achieved nearly 17,000 units by the date of this earnings call, primarily from customers in North America and Europe.

談到 Avalon Nano 3 採礦加熱器的收入，它使我們的產品收入來源多樣化。第三季度，我們交付了超過 10,000 個 Nano 3 加熱器，並從這些銷售中獲得了約 140 萬美元的收入。截至本財報電話會議日，Nano 3 的累計訂單已接近 17,000 台，主要來自北美和歐洲的客戶。

For our mining machine sales, we accrued $22.9 million for inventories write-down and prepayment write-down in this quarter, representing a year-over-year decrease of 58%. The decrease was driven by ongoing stock clearance in the quarter. These non-cash write-downs are made under US GAAP rules impacting our gross profit, but there is no impact on our cash balance. Excluding the above write-downs, we would have achieved a gross profit of $1.1 million for mining machine sales. The write-downs are mainly from A13 series inventory value reduction, according to the latest market price.

對於我們的礦機銷售，本季我們提列了庫存減記和預付款減記 2,290 萬美元，年減 58%。這一下降是由於本季持續的庫存清倉造成的。這些非現金減記是根據美國公認會計準則規則進行的，會影響我們的毛利，但對我們的現金餘額沒有影響。排除上述減值，我們的礦機銷售毛利為 110 萬美元。根據最新市場價格，減記主要來自A13系列庫存價值減少。

Mining revenue was $9 million in quarter three, a year-over-year increase of 175%. We mined 147 Bitcoins in the quarter, a year-over-year increase of 26%. This increase was primarily driven by the computing power installed for our mining business, which reached 4.6 exahash per second at the end of the quarter. We also further expanded our mining business in Africa, where our installed hash rates reached 3.5 exahash per second at the end of quarter three. Our average revenue per Bitcoin in quarter three was over $61,000, which decreased by 7.5%, primarily due to the decline in Bitcoin prices in quarter three. Gross profit margin for our mining business was 22%. Please note here that mining profit or loss is defined as mining revenues net of costs for energy and hosting, but without consideration of depreciation for the deployed machines.

第三季挖礦收入為 900 萬美元，年增 175%。本季我們開採了 147 個比特幣，年增 26%。這一增長主要是由我們的挖礦業務安裝的計算能力推動的，該計算能力在本季度末達到每秒 4.6 exahash。我們也進一步擴大了在非洲的挖礦業務，第三季末我們安裝的哈希率達到每秒 3.5 exahash。第三季每個比特幣的平均收入超過 61,000 美元，下降了 7.5%，主要是因為第三季比特幣價格下跌。我們採礦業務的毛利率為22%。請注意，挖礦利潤或損失被定義為扣除能源和託管成本的挖礦收入，但不考慮已部署機器的折舊。

Now turning to the expenses. Our operating expenses totaled $35 million, decreasing 19% year over year. Staff costs, including share-based compensation, decreased 17% year over year, mainly driven by organizational optimization performed in Q4 last year. We recorded $6 million in impairment of our A13 series machines deployed in our mining operations as a result of increased Bitcoin mining difficulty post-halving. Excluding this impairment, our operating expenses were about $29 million, remaining steady during 2024.

現在轉向費用。我們的營運費用總計 3500 萬美元，年減 19%。包括股權薪酬在內的員工成本較去年同期下降17%，主要是受去年第四季組織優化的推動。由於減半後比特幣挖礦難度增加，我們在挖礦業務中部署的 A13 系列機器出現了 600 萬美元的減損。排除此項減損，我們的營運費用約為 2,900 萬美元，2024 年保持穩定。

As mentioned in quarter one, we chose to early adopt the FASB new accounting rules on cryptocurrency assets since January 1st, 2024. These new rules allow cryptocurrencies to be carried at their fair market value. The price of Bitcoin increased to around $63,500 on September 30, 2024, versus around $62,000 on June 30, 2024, contributing to an aggregate gain on crypto assets of $2.5 million during the third quarter. Despite a challenging post-halving hash price, our Q3 operating loss was around $57 million, narrowing 50% year over year, and adjusted EBITDA loss narrowed by 50% year over year to $34 million.

如第一季所提到的，我們選擇自 2024 年 1 月 1 日起提前採用 FASB 關於加密貨幣資產的新會計規則。這些新規則允許加密貨幣以其公平市場價值進行交易。2024 年 9 月 30 日，比特幣的價格升至 63,500 美元左右，而 2024 年 6 月 30 日為 62,000 美元左右，導致第三季加密資產總收益達 250 萬美元。儘管哈希值減半後面臨挑戰，但我們第三季的營運虧損約為 5,700 萬美元，年比收窄 50%，調整後 EBITDA 虧損年收窄 50%，至 3,400 萬美元。

In quarter three 2024, we issued the third tranche of the Series A preferred shares financing and recognized it as a convertible liability according to US GAAP accounting rules. The financing incurred an excess of fair value over proceeds received and a fair value change. This non-cash accounting treatment hit our Q3 bottom line with a total of $27 million. In order to represent our performance more accurately and more comparably, we exclude the impact of the accounting treatment from our non-GAAP measures.

2024年第三季度，我們發行了第三期A輪優先股融資，並根據美國公認會計原則將其確認為可轉換負債。融資產生的公允價值超過收到的款項以及公允價值變動。這種非現金會計處理方式達到了我們第三季的淨利潤，總計 2,700 萬美元。為了更準確、更具可比性地反映我們的業績，我們從非公認會計原則衡量指標中排除了會計處理的影響。

Turning to our balance sheet and cash flow, in quarter three, we received $50 million from our preferred shares financing, and we paid $30 million to secure our wafer supply. During the quarter, the cash outflow of $69 million for production and operation was offset by a cash inflow of $42 million from sales, $7 million from export VAT refunds, and $5 million from secured loans. Consequently, at the end of quarter three, we held cash of $72 million on our balance sheet, an increase of approximately 8% compared to the end of quarter two. As of the end of quarter three, our account receivable balance was $1 million, a decrease of 83% compared to December 31, 2023. We will continuously evaluate market demand and adopt corresponding credit policies with caution.

談到我們的資產負債表和現金流，第三季度，我們從優先股融資中獲得了 5000 萬美元，並支付了 3000 萬美元來確保我們的晶圓供應。本季度，生產經營現金流出 6,900 萬美元，被銷售現金流入 4,200 萬美元、出口增值稅退稅現金流入 700 萬美元、擔保貸款現金流入 500 萬美元所抵銷。因此，截至第三季末，我們的資產負債表上持有現金 7,200 萬美元，比第二季末增加了約 8%。截至第三季末，我們的應收帳款餘額為 100 萬美元，較 2023 年 12 月 31 日減少 83%。我們將持續評估市場需求，審慎採取相應的信貸政策。

Now turning attention to our Bitcoin assets. Bitcoins held as our own holding asset kept growing in this quarter, reaching a record high of 1,212 Bitcoins as of September 30. This is 98 more than the 1,114 at the end of last quarter. On September 30, the fair market value of our owned Bitcoins totaled around USD77 million. As of yesterday, at $92,000 Bitcoin price, the value of our owned Bitcoin exceeded USD110 million and our HODL gain was around $64 million higher than the original value of the Bitcoins that we gained from mining or other operations. This is an exciting reward for our long-term value creation and patience.

現在將注意力轉向我們的比特幣資產。本季我們自己持有的比特幣數量持續成長，截至 9 月 30 日達到 1,212 個比特幣的歷史新高。這比上季末的 1,114 人多了 98 人。截至 9 月 30 日，我們擁有的比特幣的公平市價總計約為 7,700 萬美元。截至昨天，以 92,000 美元的比特幣價格計算，我們擁有的比特幣價值超過 1.1 億美元，我們的 HODL 收益比我們從挖礦或其他操作中獲得的比特幣的原始價值高出約 6,400 萬美元。這是對我們長期價值創造和耐心的令人興奮的獎勵。

In this quarter, we pledged 70 bitcoins for long-term secured loans with an aggregate carrying value of USD2 million at what we believe is a reasonable interest level. The secured loans enable additional liquidity for production, expansion, and operation. We also transferred 100 bitcoins for a fixed term product with a fixed annual return rate. In the future, under the premise of adhering to our HODL strategy, we will explore more ways to increase capital liquidity through our owned crypto assets.

本季度，我們以我們認為合理的利率水準質押了 70 個比特幣作為長期擔保貸款，總帳面價值為 200 萬美元。擔保貸款可為生產、擴張和營運提供額外的流動性。我們也轉了100個比特幣購買了固定年回報率的定期產品。未來，我們將在堅持HODL策略的前提下，探索更多透過自有加密資產增加資金流動性的方式。

We expect our Q4 revenues to be $80 million, which is expected to be the best quarter of 2024. We believe a friendlier environment for crypto currencies is coming. The Bitcoin price has been rising rapidly since November and today's highest point is exceeding $94,000, an increase of nearly 47% compared to price before the halving.

我們預計第四季營收為 8,000 萬美元，預計將成為 2024 年最好的季度。我們相信加密貨幣更友善的環境即將到來。11月以來，比特幣價格快速上漲，今日最高點突破9.4萬美元，較減半前上漲近47%。

However, the growth is still continuing to break historical highs. We believe that the rising price of Bitcoin will stimulate the profit of miners and the demand for mining machines will steadily increase. Mining machine products with high computing power, low power consumption, and stable performance will be chosen and trusted by customers, just like our A15 series.

然而，成長仍在持續突破歷史高位。我們認為，比特幣價格的上漲將刺激礦工的利潤，礦機的需求將穩定增加。高算力、低功耗、效能穩定的礦機產品會被客戶選擇和信賴，就像我們的A15系列一樣。

We are expecting deliveries of new machines to be allocated to both self-mining and sales to customers. We are always strongly committed to investing in new product research and development to meet the diverse needs of various customers, promoting sales and operations strategies in key markets such as North America and participating in Bitcoin mining collaboration in various forms as we work to achieve our expansion goal of 10 exahash capacity in North America.

我們預計新機器的交付將分配給自採和向客戶銷售。我們始終堅定地致力於投資新產品研發，以滿足各類客戶的多樣化需求，推動北美等關鍵市場的銷售和營運策略，並以多種形式參與比特幣挖礦合作，以實現我們的擴張北美10 exahash 容量的目標。

We have strong confidence that we will work with our customers and partners to seize the huge market opportunities in the bull market. This concludes our prepared remarks. We are now open for questions.

我們有堅定的信心，將與客戶、合作夥伴一起，抓住牛市中巨大的市場機會。我們準備好的演講到此結束。我們現在歡迎提問。

(Operator Instructions) Kevin Cassidy, Rosenblatt.

（操作員說明）Kevin Cassidy，Rosenblatt。

Yeah, thanks for taking my question and congratulations on the good quarter. You described a lot of demand picking up. How would you compare this to, say, when the halving event in 2020 and then you had a very strong year in 2021? How does 2025 look like as far as visibility and the amount of demand you're seeing?

是的，感謝您提出我的問題並祝賀這個季度的良好表現。您描述了很多需求的回升。您如何將其與 2020 年減半事件以及 2021 年非常強勁的一年進行比較？就您所看到的可見度和需求量而言，2025 年會是什麼樣子？

Thank you for your question. Overall, I think the patterns are quite similar. About six months before the halving, buyers will be motivated by lower equipment prices, tend to purchase large quantity of machines for a final round of pre-halving mining. However, demand usually drops significantly as the halving approaches and immediately afterwards. Once the market stabilizes again, and when the Bitcoin price is recovered, demand typically will rebound.

謝謝你的提問。總的來說，我認為模式非常相似。在減半前六個月左右，買家會受到設備價格下降的推動，傾向於購買大量機器進行減半前的最後一輪挖礦。然而，隨著減半的臨近以及減半之後，需求通常會大幅下降。一旦市場再次穩定，並且比特幣價格回升，需求通常會反彈。

That said, there are some differences between the two events. The timing of halving Bitcoin price trends, industry inventory levels, and overall scale of demand are all involved. Despite these differences, the key takeaway is that, demand continues to grow.

也就是說，這兩個事件之間存在一些差異。比特幣價格減半的時機、產業庫存水準以及整體需求規模都涉及其中。儘管存在這些差異，但關鍵的一點是，需求持續成長。

Market fluctuations have lessened and customers have become more professional in their operations. I think for 2025, maybe some -- I think the capacity and like the geographic conflicts will influence the demand and different regions may have different demands in 2025. Thank you.

市場波動減少，客戶的營運變得更加專業。我認為到 2025 年，也許會有一些——我認為產能和地理衝突等都會影響需求，到 2025 年，不同地區可能會有不同的需求。謝謝。

Thank you for that answer. And just what systems do you have in place to make sure you're going to be able to meet the demand, make sure there's no shortage of the ASICs or boundary space, and even just the assembly of the mining rigs?

謝謝你的回答。您擁有哪些系統來確保您能夠滿足需求，確保不缺少 ASIC 或邊界空間，甚至只是採礦設備的組裝？

Yeah, we've been focused on developing new products, delivering models with approximately 17 joules per terahash power efficiency this year. And we also anticipated market trends early and secured our production capacity by placing advanced orders to the foundries.

是的，我們一直專注於開發新產品，今年推出了每太拉哈希功率效率約為 17 焦耳的型號。我們也提前預測了市場趨勢，透過向代工廠提前下訂單來確保我們的產能。

Close collaboration with our partners has further improved the yield rates and shortened production cycles. These initiatives require financial support. At the end of September, we completed a USD50 million financing to invest in self-mining and joint-mining sites in the US. Because we know the bull market is coming, so we have to have our supply chains to stock up for customer orders.

與合作夥伴的密切合作進一步提高了良率並縮短了生產週期。這些措施需要財政支持。9月底，我們完成了5000萬美元融資，用於投資美國自礦和聯合礦場。因為我們知道牛市即將到來，所以我們必須有我們的供應鏈來為客戶訂單備貨。

Recently, the Bitcoin price rising rapidly, the bull market is already there. So, we secured another US$30 million in financing. This reflects our advantage of being a listed company, allowing us to deploy capital swiftly to expand capacity and meet growing market demand.

近期，比特幣價格快速上漲，牛市已然來臨。因此，我們又獲得了3000萬美元的融資。這體現了我們作為上市公司的優勢，使我們能夠迅速部署資金以擴大產能並滿足不斷增長的市場需求。

I think the wafers we placed in September will start to deliver in the end of this year, but usually the production will use about close to five months. We are doing everything we can to shorten to the time.

我認為我們9月份投放的晶圓將在今年年底開始交付，但通常生產將使用大約接近5個月的時間。我們正在盡一切努力縮短時間。

The next year, performance of products we will deliver needs to improve further. I believe a range of 10 to 15 joules per terahash is achievable. This requires continued investment in chip development. And I expect most of the design work of A16 products to be completed this quarter.

明年，我們將提供的產品性能需要進一步提高。我相信每 terahash 10 到 15 焦耳的範圍是可以實現的。這需要晶片研發的持續投入。我預計A16產品的大部分設計工作將在本季完成。

And additional to the chips, we also have to refine the entire product ecosystem. This includes machines of different power levels, whether targeting B2B or B2C customers, different cooling methods, system or under solution integration, as well as both software and hardware. Over the past few months, we have conducted extensive product development work and this will continue in the coming months. Yeah, thank you.

除了晶片之外，我們還要完善整個產品生態。這包括不同功率等級的機器（無論是針對 B2B 還是 B2C 客戶）、不同的冷卻方法、系統或解決方案集成，以及軟體和硬體。在過去的幾個月裡，我們進行了廣泛的產品開發工作，並將在未來幾個月繼續進行。是的，謝謝。

Nick Giles, B. Riley Securities.

尼克‧賈爾斯 (Nick Giles)，B. 萊利證券 (Riley Securities)。

Hey, good morning, everyone. Congratulations on the recent deals with North American customers. I was wondering if you could expand on your growth efforts in this market. What targets do you have in the coming quarters, either on an exahash sold basis, gross revenue or percentage of total revenue? I'll start there. Thanks.

嘿，大家早安。祝賀最近與北美客戶達成的交易。我想知道您是否可以擴大在這個市場的成長力度。您在未來幾季的目標是什麼，無論是基於 exahash 銷售量、總收入還是佔總收入的百分比？我將從這裡開始。謝謝。

Thank you. I think the rising Bitcoin price has triggered recovery in market demand, and we anticipate even stronger demand next year. The first quarter we achieved 7.3 million terahash per second in computing power sold, marking 93.8% year-over-year increase and 16.4% sequential growth, setting a record high over the past 11 quarters. Recently, we announced large scale orders with North American publicly traded mining companies, CleanSpark and HIVE, reflecting a notable recovery in demand.

謝謝。我認為比特幣價格的上漲引發了市場需求的復甦，我們預計明年的需求將會更加強勁。第一季度，我們售出的算力達到了每秒 730 萬兆哈希，同比增長 93.8%，環比增長 16.4%，創下過去 11 個季度的歷史新高。近期，我們宣布與北美上市礦業公司 CleanSpark 和 HIVE 簽訂大額訂單，反映出需求明顯復甦。

As Bitcoin price surpassed 85,000, we began adjusting our sales prices in line with fair market value and increasing the upfront payment required for contract sales orders. We believe Bitcoin bull market will still be in the early stages. And moving forward, we will actively adapt our pricing policies and sales strategies to align with a lowing market supply and demand dynamics. Thank you.

隨著比特幣價格突破 85,000，我們開始根據公平市場價值調整銷售價格，並增加合約銷售訂單所需的預付款。我們認為比特幣牛市仍處於早期階段。展望未來，我們將積極調整我們的定價政策和銷售策略，以適應較低的市場供需動態。謝謝。

Thank you for that, NG. My next question is just around R&D spend expectations in 2025. How should we think about the split between an A16 series and other initiatives such as your Kendryte series? Thank you.

謝謝你，NG。我的下一個問題是關於 2025 年研發支出的預期。我們應該如何看待 A16 系列和 Kendryte 系列等其他措施之間的差異？謝謝。

Yeah, I think we focus on our miner series development. But for the AI side, I think I can say something about this. Yeah, let me see. Okay, I think for our company, in the past few years, I have closely monitored advancements in AI and had discussions with industry leaders about the direction of this rapidly evolving field.

是的，我認為我們專注於礦工系列的開發。但對於AI方面，我想我可以說一下。是的，讓我看看。好吧，我認為對於我們公司來說，在過去的幾年裡，我密切關注人工智慧的進展，並與行業領導者討論了這個快速發展的領域的方向。

In the last two years, I think Nvidia has, and its ecosystem has emerged as clear winners. This is all about my personal opinion. So, capturing the -- and I think they are capturing the majority of profit. This reminds me of Bitcoin mining boom that began in 2011.

在過去的兩年裡，我認為 Nvidia 及其生態系統已經成為明顯的贏家。這都是我個人的看法。因此，我認為他們正在獲取大部分利潤。這讓我想起了2011年開始的比特幣挖礦熱潮。

So the question is, how can Canaan position itself to ride this wave of technological process, one that could define the next 10 or 20 years? Canaan has a strong foundation in areas like the Edge AI products development, the Kendryte series you just mentioned, chip design, and operational computing infrastructure.

那麼問題是，嘉楠耘智如何定位自己，以駕馭這可能定義未來 10 或 20 年的科技進程浪潮？嘉楠耘智在Edge AI產品開發、你剛才提到的Kendryte系列、晶片設計、營運運算基礎設施等方面都有深厚的基礎。

This gave us multiple avenues to participate. Making the right business decisions require foresight. So today, I think the demand for large language model training is already consolidating among a small number of major companies.

這為我們提供了多種參與途徑。做出正確的業務決策需要有遠見。所以今天，我認為對大型語言模型訓練的需求已經在少數大公司中得到鞏固。

In just two or three years, there might be fewer than 10 companies globally capable of training foundational large models. That means the competition in large model training hardware is essentially over, and the winners are already clear.

在短短兩三年內，全球可能只有不到 10 家公司能夠訓練基礎大型模型。這意味著大型模型訓練硬體的競爭已基本結束，勝者已分明。

So the next major opportunity will likely emerge when AI applications based on these models become mainstream, leading to a sharp increase in demand for inference compute power that exceeds training requirements.

因此，當基於這些模型的人工智慧應用成為主流時，下一個重大機會可能會出現，導致推理運算能力的需求急劇增加，超出訓練要求。

However, the shift will take time. At this stage, it would be wise to invest heavily in designing and producing -- especially for producing the chips and devices, specifically for today's large models. So, I think we should not remain idle. This year we have seen a clear convergence between AI computing and cryptocurrency mining. Both really are related on computation to generate tokens, right?

然而，這種轉變需要時間。在這個階段，明智的做法是在設計和生產上投入大量資金，尤其是生產晶片和設備，特別是針對當今的大型模型。所以，我認為我們不應該閒著。今年，我們看到了人工智慧運算和加密貨幣挖礦之間的明顯整合。兩者確實與生成令牌的計算相關，對吧？

So now back with different algorithms, AI algorithms are typically more complex, but as the number of foundational models decreases, the issue for a fragmented software will disappear, I think. So, making ASIC-based solutions for AI will be more feasible. So, our best preparation right now is already underway, accelerating infrastructure deployment, particularly in regions like North America.

所以現在回到不同的演算法，人工智慧演算法通常更複雜，但隨著基礎模型數量的減少，我認為碎片化軟體的問題將會消失。因此，為人工智慧制定基於 ASIC 的解決方案將更加可行。因此，我們現在已經做好了最好的準備，加速基礎設施部署，特別是在北美等地區。

By the middle of next year, we aim to deploy 200 megawatts in the first phase and continue to expand power resources afterward. The current Bitcoin full year cycle has just begun, and I believe this is the last window for us to lay a solid foundation.

到明年年中，我們的目標是第一階段部署200兆瓦，之後繼續擴大電力資源。目前比特幣全年周期才剛開始，我相信這是我們打下堅實基礎的最後一個窗口。

So looking ahead, one of our goals in four years is to provide compute services at the lowest possible CapEx and OpEx, not only for Bitcoin mining, but also for other applications using ASIC optimized hardware tailored to new markets. This is my long-term vision, so our immediate focus over the next one or two years is very straightforward: deploy more infrastructure to build a strong foundation for our future. Sorry for the long answer. Thank you.

因此，展望未來，我們四年內的目標之一是以盡可能低的資本支出和營運支出提供計算服務，不僅適用於比特幣挖礦，還適用於使用針對新市場量身定制的ASIC 優化硬體的其他應用程式。這是我的長期願景，因此我們未來一兩年的當前重點非常簡單：部署更多基礎設施，為我們的未來奠定堅實的基礎。抱歉回答太長。謝謝。

So, NG, I really appreciate all the color and commend you on the foresight in those segments. So, continued best of luck.

所以，NG，我真的很欣賞所有的色彩，並讚揚你在這些領域的遠見。所以，繼續祝你好運。

Kevin Dede, H.C. Wainwright.

凱文·德德，H.C.溫賴特。

NG, I was hoping you could look a little bit at the A14 versus A15 series and the demand you're seeing. Obviously, with the increase in compute density, heat becomes a greater issue and I'm wondering what you're seeing on the demand side for air cool versus immersion as your orders shift from A14 to A15?

NG，我希望您能稍微了解 A14 與 A15 系列以及您所看到的需求。顯然，隨著計算密度的增加，熱量成為一個更大的問題，我想知道當您的訂單從 A14 轉向 A15 時，您對風冷與浸入式的需求方面有何看法？

Okay. Firstly, hello. I think the A14 series is very close to the EOL because the A15 has much more advantages. The power efficiency is the A14 is about 22 to 23 gigawatts per hash, and the A15 is now today is lower than 17. So, there's more than 20% improvement.

好的。首先，你好。我認為A14系列已經非常接近EOL了，因為A15有更多的優勢。A14 的功率效率約為每哈希 22 至 23 吉瓦，而 A15 現在低於 17。所以，有超過 20% 的改進。

So we are switching all our capacity from A14 to A15. And for demand side, I think the A15 is much -- the demand is much bigger because the performance is comparable to our competitors, and the machine is super stable. We tested over 50 degrees Celsius by our air-cooling system. And in our laboratory, the water-cooled liquid cooling system is running close to 400 terahash today.

因此，我們將所有產能從 A14 切換到 A15。對於需求方面，我認為 A15 的需求要大得多，因為其性能與我們的競爭對手相當，而且機器超級穩定。我們的風冷系統測試溫度超過攝氏 50 度。在我們的實驗室中，水冷液體冷卻系統今天的運行速度接近 400 terahash。

So everything is -- A15 is much better. So, for the machine's cooling method, I think that the liquid cooling model is increasing. I think the reason is some of our customers are trying to use the machines to generate heat, especially in the winter.

所以一切都是——A15 好多了。所以，對於機器的冷卻方式，我認為液冷的型號正在增加。我認為原因是我們的一些客戶正在嘗試使用機器來產生熱量，尤其是在冬天。

So we have multiple customers working with us using our liquid cooling models to generate hot water. And the temperature is from 55 degrees Celsius to over 70 degrees Celsius. So, it's very valuable equipment in many different regions.

因此，我們有多個客戶與我們合作，使用我們的液體冷卻模型來產生熱水。氣溫從攝氏55度到70度以上。因此，它在許多不同地區都是非常有價值的設備。

And also, I think after that because the data center for Bitcoin mining is sometimes it's very noisy. So, to operate with lower noise is also a very important requirement for our customers. So, this also led them to switch to the liquid cooling.

而且，我認為在那之後，因為比特幣挖掘的資料中心有時非常嘈雜。因此，低噪音運作也是我們客戶非常重要的要求。因此，這也導致他們轉向液體冷卻。

Yeah, I think the water-cooling model is very important. So, at the end of this year, we will -- I think we have plans to announce the liquid or the water-cooling system to the public, maybe in the next month or January 2025. Thank you.

是的，我認為水冷模型非常重要。因此，在今年年底，我們將——我認為我們計劃向公眾宣布液體或水冷系統，也許是在下個月或 2025 年 1 月。謝謝。

And NG, thank you for all the color on AI development. I appreciate your perspective immensely, as you know. I'm curious though, do you think you're going to hold back to further development until you see a path to develop an ASIC to address that market? I just want to make sure I understood your comments correctly. Thank you very much.

NG，感謝您對人工智慧開發的所有貢獻。如您所知，我非常欣賞您的觀點。不過我很好奇，您是否認為在找到開發 ASIC 來滿足該市場需求之前，您會停止進一步開發？我只是想確保我正確理解了您的評論。非常感謝。

For this question, by my personal reveals, I think today the model training is using the NVIDIA system like H100 or some more advanced models. But most of the inference customers are using the A6000 and 490.

對於這個問題，根據我個人的透露，我認為今天的模型訓練是使用像H100這樣的NVIDIA系統或一些更高級的模型。但大多數推理客戶使用的是A6000和490。

So this remind me that in the very early stage of Bitcoin mining, people use CPU to mine Bitcoins. And rapidly they switched to GPUs. They used GPUs to mine Bitcoins. So today the stage is the AI players is using GPUs to mine, or you can say it to generate tokens. So, we are currently at this stage.

所以這讓我想起，在比特幣挖礦的早期階段，人們使用CPU來挖掘比特幣。他們很快轉向了 GPU。他們使用 GPU 來挖掘比特幣。所以今天的舞台是AI玩家使用GPU來挖礦，或者你可以說它來產生代幣。所以，我們目前正處於這個階段。

Yes, personally I have plans to do something on how to generate AI tokens by using the ASIC technology. Yes, but I think what is the disadvantages? Today, the inference demand has not come over the training demand. This is what I'm seeing today. So, as I just mentioned, to invest a lot of cash in the next one or two quarters to this kind of AI ASICS is a wise move. So, I will continue to look closely to this industry. Thank you.

是的，我個人計劃做一些關於如何使用 ASIC 技術產生 AI 代幣的事情。是的，但是我覺得有什麼缺點呢？如今，推理需求還沒有超過訓練需求。這就是我今天所看到的。所以，正如我剛才提到的，在未來一兩個季度投入大量現金到這種AI ASICS上是明智之舉。所以，我會繼續關注這個行業。謝謝。

James, One quick question for you. I understand the Bitcoin loans you've made still have 1,200 plus Bitcoin. How do you see using that Bitcoin? Do you think you might offer more loans and how are you evaluating your counterparty risk?

詹姆斯，問你一個簡單的問題。據我了解，您發放的比特幣貸款仍有 1200 多比特幣。您如何看待使用比特幣？您認為您可以提供更多貸款嗎？

Thank you, Kevin. I think that's a wonderful question. I think as a listed company, we are very proud to be listed in Nasdaq. So, we do have the access to the capital market. So, for the company, usually we have different methods of doing fundraising, just like what we have demonstrated in the past. We can do preferred shares. We also can do at-the-market offering. And also, we can use our Bitcoins to generate liquidity.

謝謝你，凱文。我認為這是一個很好的問題。我認為作為一家上市公司，我們非常自豪能夠在納斯達克上市。所以，我們確實有機會進入資本市場。所以對於公司來說，通常我們有不同的融資方式，就像我們過去所展示的那樣。我們可以做優先股。我們也可以提供市場報價。而且，我們可以使用比特幣來產生流動性。

So, if asking me this question, to be very honest, we just usually balance between all those possible methods. Usually we would like to take preferred shares because it's easy and it's quite transparent. And then sometimes if the market demand is strong, ATM would maybe be more suitable. And last but not least, I think currently Bitcoin price is increasing to all-time high.

所以，如果問我這個問題，老實說，我們通常只是在所有這些可能的方法之間進行平衡。通常我們會選擇優先股，因為這很容易而且非常透明。有時如果市場需求旺盛，ATM可能更合適。最後但並非最不重要的一點是，我認為目前比特幣價格正在上漲至歷史新高。

Of course, we can consider using more bitcoins to do pledge. But of course, we have to consider to utilize these bitcoins for other methods of generating cash flow. For example, doing some financing to generate interest is also something we are testing.

當然，我們可以考慮用更多的比特幣來做質押。但當然，我們必須考慮將這些比特幣用於產生現金流的其他方法。例如做一些融資產生利息也是我們在測試的。

So I think currently we are still learning in this all kinds of methods. We haven't yet fixed in whatever terms how we do this fundraising. Of course, we can try all the methods and then our shareholders can provide more suggestions to us to fully consider what's the best for our shareholders. I think that's the purpose of doing all this fundraising. Thank you, Kevin.

所以我覺得目前我們還在學習這方面的各種方法。我們還沒有確定如何進行這次籌款。當然，我們可以嘗試所有的方法，然後我們的股東可以向我們提供更多的建議，充分考慮什麼對我們的股東是最好的。我認為這就是進行所有籌款的目的。謝謝你，凱文。

Mike Grondahl, Northland.

麥克·格隆達爾，北國。

Hey, thanks, guys. For 3Q product revenue or the [ASIC](corrected by company after the call), can you break that down between the A14 and the A15? And then roughly your $80 million guidance for the December quarter, could you break that down roughly between the A14 and the A15?

嘿，謝謝，夥計們。對於3Q產品收入或[ASIC]（公司在電話會議後更正），您能否將其分解為A14和A15？然後，您對 12 月份季度的大約 8000 萬美元指導，您能否將其大致分為 A14 和 A15 之間？

I think for this question -- I will take this question, Mike. I think the major delivery of quarter three is from A14 series. NG has mentioned that we only delivered like 1,500 pieces of A15 series. So, the major deliveries from A14 series, and also we did a lot of stock clearance for A13 series, also occupies a good kind of percentage. But I think the major part is still A14 series. And the deliveries to different geographies is mainly Middle East and North America. Does that answer your question, Mike?

我想對於這個問題——我會回答這個問題，麥克。我認為第三季的主要交付來自A14系列。NG提到我們只交付了大約1,500件A15系列。所以，A14系列的主要出貨量，以及A13系列我們也進行了大量的庫存清倉，也佔了不錯的比例。但我認為主要還是A14系列。而交付到不同地區的主要是中東和北美。這能回答你的問題嗎，麥克？

Yeah. That was the 39% to the Middle East and 16% I think to North America. And then roughly in 4Q, you're forecasting $80 million of revenue. What's the split between A14 and A15 going to be?

是的。其中 39% 銷往中東，16% 銷往北美。然後，大約在第四季度，您預計收入將達到 8000 萬美元。A14和A15之間的差距是多少？

Yeah. I think currently the A14 series is still doing ongoing delivery. I think it's still a major part of our delivery. But A15 series is climbing in a kind of introduction period. And in this quarter, in quarter four, we will still have A14 series as the major delivery and we will have the first mass production batch of A15 delivered to the main customers from North America like Cipher, CleanSpark, and HIVE. So that will be this quarter's look like.

是的。我認為目前A14系列仍在持續交付中。我認為這仍然是我們交付的主要部分。但A15系列正處於一種導入期。而本季第四季我們仍會以A14系列為主力交付，第一批量產的A15將會交付給Cipher、CleanSpark、HIVE等來自北美的主要客戶。這就是本季的情況。

So if you're asking me about percentage, I would say A14 series still occupies the biggest percentage and then rest go to A15. And we still have some A13 to clear, but the value is quite relatively smaller.

所以如果你問我比例，我會說A14系列仍然佔最大比例，然後剩下的就是A15。我們還有一些A13需要清除，但數值相對較小。

Got it. And just to follow up to that, roughly how much of A13 inventory is sitting on the balance sheet?

知道了。接下來，資產負債表上大約有多少 A13 庫存？

If you calculate the inventory, you can consider 20% of the inventory value is now A13 series.

如果計算庫存的話，可以認為現在庫存價值的20%是A13系列。

20%. Okay. And then just lastly, do you have a rough pro forma cash balance and share count after the recent financing? You said the cash balance was (multiple speakers) --

20%。好的。最後，在最近的融資之後，您是否有粗略的預期現金餘額和股票數量？你說現金餘額是（多位發言者）——

Hey Mike, we have disclosed our shares outstanding in our earnings release as of today.

嘿，麥克，我們已經在今天的收益發布中披露了我們的已發行股票。

Mike, are you asking for the cash balance?

麥克，您要現金餘額嗎？

Yeah, I was just after the recent financing that you guys talked about. I think it was the preferred. If you just have a pro forma cash balance after that financing?

是的，我剛剛在你們談論的最近的融資之後。我認為這是首選。如果您在融資後只有預計現金餘額？

Yeah, I think the $30 million is just happening today. We haven't yet received all the cash. Hopefully in the end of this week or next week we can receive that $30 million cash. But the previous $50 million in the last tranche of previous preferred shares have already been received in the end of September. So, it's counted to the $72 million cash balance in the end of September. Does that answer your question?

是的，我認為 3000 萬美元今天才發生。我們還沒有收到所有現金。希望在本週末或下週我們能夠收到那 3000 萬美元的現金。但之前最後一批優先股中的5,000萬美元已於9月底收到。因此，它計入 9 月底的 7,200 萬美元現金餘額中。這能回答你的問題嗎？

Yeah, we would take that $72 million plus $30 million for this new financing minus anything for operations and whatnot. I'm just trying to run that forward a little bit.

是的，我們會用這 7200 萬美元加上這次新融資的 3000 萬美元減去營運等費用。我只是想稍微向前推進一點。

Yeah, you can calculate it based on that. But of course, In this quarter, we will invest more in the operation, not only about the wafer supply, but also we are going to invest together with Luna Square in West Texas to do the mining sites build up.

是的，你可以根據這個來計算。當然，在這個季度，我們將在營運上進行更多投資，不僅是晶圓供應，我們還將與西德克薩斯州的 Luna Square 一起投資建設礦場。

Thank you. That's all the time we have for questions. I'd like to turn the call back over to the company for any closing remarks.

謝謝。這就是我們提問的時間。我想將電話轉回公司以供結束語。

Thanks again for joining us today. If you have further questions, please feel free to reach out to us directly or through the contact information that we have on our website. Thanks, operator.

再次感謝您今天加入我們。如果您還有其他疑問，請隨時直接或透過我們網站上的聯絡資訊與我們聯絡。謝謝，接線生。

You're welcome. Thank you. That concludes the call today. Thank you everyone for attending. You may now disconnect.

不客氣。謝謝。今天的電話會議到此結束。感謝大家的出席。您現在可以斷開連線。