Q4 2020 Canaan Inc Earnings Call
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Yes.
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Yeah.
Ladies and gentlemen, thank you for standing by and welcome it to Ken and things fourth quarter and full year 2020 earnings call. At this time, all participants are in listen only mode.
After the managements prepared remarks, we will have a question and answer session. Please note. This event is being recorded.
And I'd like to hand, the conference of what you're speaking of host today. Mr. Shao Lee will secretary of the company. Please go ahead Mr. Li.
Thank you very much and Hello, everyone and the welcoming to our earnings conference call. The company's financial and operating results were released of our Newswire services earlier, it's a day and are currently available on joining US a day, our chairman and CEO and Mr. Zhang and our CFO.
At the Holdco.
And Mr. Sha Lu our VP will also be available during the question and answer session.
With the John will start the call of by providing an overview of for the company and the performance highlights for the quarter.
Oh, well, there and provide the details on the company's operating and the financial results for the periods of before it opens of co op for the question.
Before we conclude I would have liked it for.
And you flowers and safe Harbor statements and our earnings press release, which also applies to this call as the way you will be making forward looking statements. Please also note that we will discuss non-GAAP measures per day.
I'm more sort of roughly for the claims at the look of the south for the most of the comparable measure for reported the under generally accepted accounting principles in our earnings release and the filings with SEC.
With that I will now turn the call over to our chairman and the CEO, Mr. <unk>, Zhang and Mr. Jiang will deliver his remarks in Chinese and I will provide the corresponding of English translation. Please go ahead Sir.
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The ratio of what kind of back and you'll catch all the town halls with all of the auditing and he says you know the T and Shanghai and the chalk.
Hello, everyone and this is Duncan Zhang Chairman and CEO of kinetic I will now provide a brief overview of our progress and the fourth quarter and the full year of decline in 'twenty.
And for people because of you talked the electrician and golf together with you and the central part of the use your talks with the phone call.
And I'll tell you for trial, the 10 day from Fuji.
Quality of ultra to your thought on how to you close one of the controlling that and chip are absolutely ideal for kind of tangential.
They try it out and get more closely.
Medical the whole go down and they eat and she said you made that you don't want your profile and do it anyway.
The charts and people don't go out of the chest about on that portion of it up thanks for your time.
And what kind of long downtime and being thoughtful and I've seen it out of the eight shashi there of quantity so each of the catcher and coffee and crush and back out of hospital.
And the fourth quarter. The comprises continue the drive.
This will grow with the market demand for mining machines. Our vision of the approach has already enabled us to establish a presence in the market the in previous quarters and the fourth quarter, we further optimized and the composition of our customer base and the secure the large number of orders from our long term path.
Anders which helped the to safeguard the hour of bonds and cash flows as of December 31st of climbing 20, our total contracted the orders amounted to 174 million of U S dollars with $66 million and advances from our customers.
And we presented him the credit.
And really quick of $54 million from the third quarter of plenty plenty.
We also successfully started the our mass production and Oh and the deliver the next generation of eight and 12 cylinders the mining the machines and the period and then we have already begun delivering this new product and service at the largest scale and in the fourth quarter of 'twenty one.
But you don't want me to put on for John.
Hold on.
And I was going down and then we'll go and painful hospital kind of slipped coaching and quality yield depends on the survival, but the annual target that got out of home.
And I can yes.
And kind of hard work and your hospital base.
For the Kingdom.
The only the fourth quarter and the way it further strengthened the core competencies of our mining machine business by expanding our operations and the market investing in our R&D capabilities and the refining our supply chain management. In addition, our increased investments in all of our AI chips business.
The month has enabled us to achieve the meaningful progress in developing best in class AI chips and the facilitating the commercial applications.
The total of them yeah, thanks for the RDR.
And in Shanghai and came down.
And I was going down without all of the streets.
On the higher quality.
And how about you and also came down now for the topical don't drop if the people who came out and out hustling to get all of the.
Aqua for me and culture people for energy and backed up the evolved in Shanghai.
Correct.
And you can send out of it.
So that and sort of how you always see a lot of California cohort County at all for the cool.
And in particular, the total number of orders the way they see the for our mining machines in 2020 reached the 170 to solve the machines and the second half of the tiny tiny way.
And we're able to significantly grow the number of orders for our mind and machine, reaching 90 to solve the machines and the fourth quarter alone.
And all of these orders and we continue this and secure orders from prominent institutions, including the investment the phone blue M and to invest which has all of the 15000 machines and the auto credit which has auto or the 1250 machines. In addition, we have also.
Started the collaboration suite and several well regardless of the mining machine and customers in northern Europe.
If youre on the our union people and more.
From a policy of hope or shoot out of anyone.
Hi.
And couple of other kind of arguing that Chicago, the Utah culture quiet most of the higher crop share 10 came on and even test for that type of policy of the hall.
You may want and tender plenty of treat the whole cost of tickets and you know what I'll do with tenant had a positive on that.
And okay and the over the first quarter of the quantity of 21, we have already recorded the orders for more than 156 thousands of mining machines was over 238 medium and U S dollars and advances from our customers. These orders included the 6000.
400, and from Hive blockchain technology.
10 of the listed the Crypto Amendment and the 6000 from the core scientific a leading U S based the crypto mining.
For sure that I pay attention and when do you want for excellence of the trench or do you have any of couple of for long haul and transact.
Kind of erode.
For a couple of forward on Tien tsin.
On your part of that they made on the teach you attend the essential of couple of four grams per tonne.
The other cohorts, you're going to sell the whole pool, but people and culture.
Meanwhile, in order to provide our global customer base with the best of services of possible. We have been building off of our global customer service and network and the establishment of our first international customer service Center and cause.
And in the fourth quarter going forward, we plan to do the additional customer service centers in North America, and the other regions, which will enable us to provide the timely and effective all of them and after sales service to our LOE per hour local customers around the world.
And so you see a LIFO effect on the call.
And for the Oh rule, RDR and instead of half of what we're going to tell you about one of you guys and still going on with.
The drifting out of home for the Oklahoma.
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True to the Ocean Blackhawk and kill them.
Good day.
The county, the teacher of upheaval of fine chemistry.
Okay.
We have always price.
The optimized.
Priority of other types of our investments and product R&D and the our total R&D investments for reached the 21 million and U S dollars in 2020, we have a team of the season, the engineers as well as completed the guidance flow we've continuously.
Recruit the talent and talented people with the competitive compensation scheme and the working conditions.
And so you've seen the torrential cingular and toward the most of our tea and Canada on the interest you backtrack on Hawk, but the fact, you don't know.
Don't forget all of that for different kind of comfortable keeping and not all of them and she said of him.
Many of them on the junk treating for kind of single need for 'twenty and county on top.
We also continued to refine our supply chain during the quarter seems starting to work closely with our new IC manufacturing partner, which we began more than one year ago, we have been continuously improving the yields for the chiefs and the power consumption and the computing performance of.
Which had the basically reached and the expected level in the program.
Test in 2020, one and we will continue to develop of several newer generation of all of chips.
And Iot.
And so therefore, the lack of combo for the other general tone of RDR.
And I can kind of from went out and be on enjoying it and turn it off on that.
And so you can see our non union, yeah, Youll shoulder, which all are the heart and yeah real.
Real quick on her job passing on the upswing.
In addition to advancing our coal mining.
The.
So on.
Yeah.
I'm on for example, the usage of the troops of grow significantly across the both domestic and international markets and plenty of economy and.
In fact, our numbers on the AI chips, the Levered tripled the on the year over year of base in 2020 and the way. It currently expect of the debt our EA segment and revenue will maintain its relatively high year over year growth rate in 2020 one.
And then somewhat.
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If you don't have it on hand, and what kind of cash you don't keep trying and really cool, providing the transaction all of them and what that will get the bomber and yet when they showed kind of a standard heater without chunky and which have been acquired.
Do you keep them away each of them by the.
Operating cash.
And on top of it if our child care and keep them away from the Chinese forgetting cap line.
The triplet gotcha triplet carried on the phone call and you don't want to kind of thing.
And keep them awake of Chinese producers languishing and trough, what kind of flow, but don't want to kind of get on the time line.
Following our research warehouse and identified the significant the market opportunity for customer glad the products with AI chips and particular the wide adoption of the vision chips and its currently creating a large addressable market in fact, and finding plenty of total production output.
The China smartphone sector has exited the one trillion RMB and then the potential market size is expected to be as high as five eight trillion RMB.
In light of these market opportunities, we have formed a three tier of product plan first and we will prioritize the development of low cost of customer products and solutions with the customer.
What is the consumer cheek.
For the second tier we have vision chips with the median of computing power for smart homes Smart education and all.
The application.
The certainty of will be visiting was high computing power for new retail assisted the driving robotics and the other applications.
And I can kind of the roadmap for women and more challenging and we're counting on bush for.
You saw on either the huge Gulf we are part of both.
For example on the type of yet.
For the road map.
Oh, Yeah, it's just the way half annualize the specific application use cases, and the the corresponding market demand for computing power as a result, and we have designed the multiple product line okay.
Okay.
And sort of people.
With the whole care team.
And starting up and people from Wolfe research.
On top of that.
And of course, you down and junior and how.
Of the total throughput for ammonia and heat coming back and garlic hurdle, okay, we all of them.
The phone calls with.
You for trauma of packing capacity yet.
Couple of the country, we already and see that from.
For me and in theater and Oh.
So that and became the P T. The already on.
I talked about him taking on top of and went out of cash.
And the parents already and we'll sure to Cook all day.
And again.
Thank you Brenda and I can kind of starting the Hawkeye fan of Eagle Ford field.
The net interest accounts, and youre paying taxes and kids and our future.
No.
We completed the people is the process for the K 510, and Sirius in the fourth quarter last year and the finish of the serious chip back the process in early March the pay five tenths of chips with the carry a variety of digital and analog IP that we have developed with the over the past two years.
And <unk>.
On the go and commission and.
Partial and customize the chips for the mid to high and Iot market and U K five tenths of the chips have already generated through the significantly high interest and the market and the receipt of several small preorders.
Currently we expect to start for the mass production of the P. Five tenths of service in the second half of 2020, one or the other Henk U K two sort of the service on the dinner.
The development is an upgraded version of our K two tenths of areas using the customer feedback from the the okay to kind of service we further optimized the.
The U K to certainty theorists computing power and the power consumption figures. In addition, we've also made this next generation chip more flexible for developers and the refunds of its two true support.
And the foundation for the pain to sort of serious to better support and the needs of the future of enterprise development.
Thanks for the near shutdown and the quality.
That's helpful.
Shipments of home depot interest for you, but that's you've heard all of a basket.
For the PD.
And I talked about and when you can choose what kind of a thing on three D sensing and counsel for.
For the first half of 2021 when you continue to expect of us that the future of contract sales for our mining machines will contribute to around the 70% of co 80 per cent of our total revenues. However for the second half of the year, we will adjust to such a percentage of base the on the market the situation.
And of the production capacity.
Are you closer to kind of on that.
She quarter kind of high teens.
And months out and starting.
And you don't see of possible path, putting them off on the tissue food out of pocket of that from your Asia off of it for you.
The quality of the problem, but it's on the side and I would repeat.
The staff.
And yet.
Our current the mining and production capacity for the first time.
For the pre salt field for contracts.
The result of starting from the second of the corner of the plenty of times of what we plan for dedicated several thousands of mining machines to our own day combined with business.
For machines, primarily consist of our age 12, and eight of 11 series of minors for an additional combined the computing power of between 750 th two for 415 P. M.
And again I for instance, you from me.
Yeah.
And let me see.
For Q2.
Thank you for the portfolio.
Kimball DTI and different types of loyalty and calico.
The feedstock economy can talk on SEDAR.
So first of all the time.
And any sense or trial on a lot of talk about.
The C H I was on China.
Starting from the second half of upon and 'twenty one per plan for allo kinds of no less than 10% of our total monthly production capacity of the mining machines for our own book on mining business every month, the actual number of the mining machines will be adjusted and based on the development of our partner.
Mining farms and the price of of Bitcoin and of our production capacities.
Thank you.
And the case and there are no significant change to the price of a bill com and our production capacity of wage for that and that the total computing power and dedicated to our big combining the business well of which to between two and the H two for the H.
By the end of the year.
And you are sure of Haynesville, HOKA and Teva coming on line.
Yeah, well known kokkola, but the bulk of that.
And the team of course, you can't paint and the health care portion of it for one of his own yet for that Youre currently.
For for quite some of the cohort.
And I can't tell the criteria that the window for telephone for what kind of for.
Villa and talk a bit of a team working from home stuff on and cooking.
Plenty and plenty of wood and extremely important of the year for kind of way overcome and overcame external challenges such as the COVID-19 pandemic and there's the obstacles set of it.
The so out of our supply chain and we also continue to optimize our management and the structure, while adding the person knows person knows and independent directors for all.
Our board in order to further strengthen our company at the company.
That's in the way of got it kind of on the turnkey going on.
I guess sort of hold it for about yoga so of Covid.
And so it kind of aggregate the share of the crusher hit all of them.
Our target and tissue to the simple Fisher.
Can you hold true.
And so I'm kind of shy of the nature of a more concentrated on and say Oklahoma.
Okay got it.
Finally, I would like to take this opportunity to thank all of our employees for your hard work as well as our business partners and the investors for the ongoing trust and the support building with the challenging year in Taunton on the one we will remain committed to and.
Ever towards our mission of being.
Moving the efficiency of all of society and as a way of our Index Center.
Thank you.
Okay.
[noise].
This concludes our remarks for I don't feel the scar.
The way I'll provide an overview of.
The fourth quarter and the full year financially the docs.
The fact that platelets.
All numbers are in RMB term.
The other is nothing.
Total net revenue gets credit for <unk> 2 million from 416 of $3 2 million.
And John.
And clearly the ultra of Susana anytime soon.
And the 100 of things and.
16, and $3 million and the privilege.
Quarter.
The decrease was due to a steel sector.
But let's start on the mass production of our new product areas. During the first quarter was the only began to run out and sales team and they're pretty at the pit.
The period.
And while we have almost of the photos of our inventory of Oh.
Production for us.
For the third quarter of for two banner and the country.
The cost of revenue decreased to 29 and $2 million from the win from the one 4 billion in the <unk>.
And the peer results from 2019.
And the 100, the 18 million engines of the poorest quarter over for 2020.
The flat and attitude of the patients seeing well cost over the revenue was in line with the 10 year.
Sales of the burden of the Pis and <unk>.
From the car T.
As I read out.
We recast.
Of course, the revenue of <unk>.
$9 1 million in first quarter of two times on the Sunday compare the two the two of our core Lotto for 600, and the San Francisco and $4 million.
<unk> for 2019 and up work for lots of 17.
17 million and the previous quarter.
Research on the direct selling tons or 14, plus the $1 million compared it to six the sweet 16 three for in the.
6 million from the same period of 2019.
And the setting tool that part of the 1 billion and Korea with the quarter.
For the year over year reduction was mainly due to the changes in the theory.
We used for and the broker.
The secret of some claims are in the war of the segment and by the higher battery and the web.
The benefit for and put on them.
And that's not take a look up.
The other operating expenses.
And fourth quarter, but certainly on the Mexican and pencil.
The six 1 million compared to comparable sales.
Samsung salmon.
Many of them and even the same carrier of the 2000 and the 19th and the.
Part of the 2 million of hanging per quarter.
The change nothing outstanding on the marketing tenets of our program and we do.
And those who are traveling and so many times on the cellular changes.
And our standing on the magic and the covenants.
And then.
Yeah and expenses.
The price too.
So I think $3 9 million from <unk>.
Symptom free.
Chris can stay at the start of the $4 million in the center of the AUM for 200 on the 19th.
And of course, occupying the 6 billion from the Paris quota.
The reductions were mainly driven by lower share based compensation during the fourth quarter two timeline from here.
Cross country.
And I totally operating at the kind of thing in the first quarter of 2000 and hunting War.
And I think probably the $1 million compared to $127 seven.
And in the same period of 2019, and the 17th 75 from the 9 million and the pivotal program.
From operating narrowed the tool $71 million from 800 of.
And the one and 2 million and the.
And for 2019.
And the 19 true kind of the 9 million of engines appears the quota.
Net loss.
That's the beautiful two ownership share holder for the second.
17, 2 million comparative to the 7700 of 19, eight 2 million and the cemetery, though for 2019.
And the 86 4 million and the poorest quarter non.
Non-GAAP adapt to the net.
Net loss, which exclude.
Share based compensation for the 17th.
Three point of 1 million.
Income and.
Comparison non non-GAAP adjusted net.
Lots of work.
700 and the.
The key 15.
$5 million in the third.
And period of 2019 and.
On the H I just thought from that.
And as familiarity and the previous quarter.
Yeah.
And I look at Dunkin'.
And then.
Loss per share.
And yeah towards and be very plentiful.
Compared to RMB 500 free volume of the Fem care results for 2019, and a and B the air.
Plenty of the firefighters and the pillar for us.
Water.
Now turning to our results.
And for yet.
And finally.
Total computing power so the in the full year of 2000 and planting and fixed rates.
And so I think seven tons of one percentage of two.
Six 6 million and she has a per seconds.
From <unk>.
And finally, many of them because definitely in 2019 as a result of the.
The increase the.
One of the cheap.
Oh good.
It's calling part and the hour per hour.
And Carryout.
All of the product to stay with you mentioned during the first nine months of the plan.
And the type of thing.
And then a total net value in 2000, and the times and decreased to 447 7 million for on the lending panel for <unk>.
<unk> billion to find on the 19th.
Couple of other revenue and 2000 and plenty.
Decreased by 17 eight nine.
Nine percentage of the tool for 400, and the $9 9 million from a one time items nine.
And 94 billion in 2019.
And I read out.
From our progress in 2000 and funding.
So king Salman Khans of <unk> compared with two of course of loss of 500, and the 16 million and in 2019.
The total operation.
The science of in 2000 tons of <unk> decreased by 45 points as a percentage of towards true.
The 200, and the 19 $1 6 million from 530 and the.
So if you add on.
Many of us in 2009 and the facade.
For the island and the 19th.
Loss from operations in 2020 meso towards 200 on the 15th 15.
$53 9 million for almost one two.
The real fire of opinion.
And 2019.
Net loss of.
That should give us though to I don't know of shareholders in 2000, and the timing was 200. The safety end of 15, and probably the 1 million comparable to one point of <unk> 3 billion to find the 19.
Oh and non-GAAP basis.
Hello, and that's the net losses in 2019, which exclude the.
Excluding the share.
The compensation of off of $3 million.
For the 200 and the payout.
And the point of $1 million.
And.
Net loss.
For Adas infotainment hunting awards, and the 103 range.
Compared to RMB seven plans of two.
And in Tucson, and the 19th.
Turning to our balance sheet.
The contract liabilities the advil.
And but that's the 125 and the Penny increase of the tool.
400, and the 13 times, the $4 million from one 3 million.
As of December 13, 2019.
And I haven't seen the 19th.
The increase of the work driving the by the interest.
The increase down payments for the south of the other of our peers.
And this claim and mining machine.
Actually the shipyards for delivering 2000 of hunting Wang the yeah.
And for.
Our December 31, 2000 and hunting.
We had the cash and cash equivalents of four.
100, and the 19, one funding of $1 million compared to 500 of $16 6 million of as of December 31, 2019.
The decrease was mainly due to a higher and higher short time and investment.
And we had the unite the.
So that's true of claimed the for millions and Showtime and glad to.
And the over December 31, 2000, the hunting compared with $11 million in shorthand of Alaska and Mike.
The old stuff and.
One for Simon on the 19th.
Great.
And it puts us the short term loan financial products two of the save a higher return the.
But as of the bank on.
And with Joy and at the anytime.
Looking forward.
We are convinced.
All of the status in 2000 and planting.
The enable us to improve our financial performance of significantly in 2000 and.
In terms of what.
As of the price of.
The decline started on two of them is the upward.
Okay.
Check for it.
For the first quarter of two times and the turnkey Consequently.
Expenses, our total net revenue and fought for.
The courthouses with ours and hunting and taking a lot for each day.
And as a and B for.
Hundreds of million dollars.
That's not the absolute for cuts the only reflects our current price band.
The attention and.
And the rate.
On the market and the operations condition.
And which are subject to of tenure.
But he totally new regarding for the potential.
The last two patients.
And the price of oil for calling and we are absolutely.
The impact of coming in the second and 19 out of the Colorado and Tony.
This concludes.
Our prepared remarks for today, operator, we kind of now ready to take the question.
Secondly.
Ladies and gentlemen, and she asked the question you will need to Bruce what any tenant food to withdraw your question press the pound or.
Cash tea leaves.
And by while we compile the Q&A roster and asking a question and please state your question and Chinese first and then immediately repeat your question in English.
Convenience and every one of the cold and cure.
We have the first question from the line of Mark.
The two teams.
Please go ahead.
And Glenn and send them a guarantee of the comma.
And.
Okay, great credit.
And what do you go what do you see on blind she died of Oh.
The that'd be walk on T V.
The only the guy on T don't man and he.
Can you kind of tend to know what kind.
No woman pick the time he took on nine goes on three continents, you talked for George I Hope, we can actually notice the.
The whole of me and they don't think of a few times and done.
Yeah.
My first question about our and new generation of Bitcoin mining machine.
And that's C O just mentioned and I would like know reach from coupon on a week coffee and waiting weeks and of which technologies are we using.
And and he launches scheduled for the new machine.
Okay.
Uh huh.
A woman and not sure yeah, just shy of the trigger.
And the tortilla and comps for that.
Yeah.
And Oh man.
And.
We'll now take the Etame and attainable or to go to.
And of course like the Biopharma.
Okay got it and they go to the holdup.
And your critical thinking of it yet.
The interest I'm going to for.
Yeah, that's sort of on I mean, yeah.
The talk where you're already on.
The woman I spoke of and yoga and thoughts on the classical for Tinder.
Continue to.
And see if we share our tenure and not partner.
Got it.
And it's just out of the frontier tenure I always get you get ahead of the Pony.
Oh come on.
And I'm sure you go up on top of it.
Sure.
On the no.
For the trigger laid out for you for what she comes back on.
They don't think of China, that's from call it right.
We have a problem and the appointment of checkout for peanuts.
The strength.
And just kind of tricky trigger.
And you can be all high net worth.
For the trigger.
Chunky and it should go up because of a T of potash et cetera, and kept that up on our two of the high school starts moving from the at home.
GAAP.
Ah Okay, Let me, let me add a cancellation.
So we are one of the afternoon and between as you know where the.
Industry to have multiple sockets on that.
We're actually working on and we're selling pretty well.
For for four hours of your generation chips and so ever.
The year, we have Rockville tutor for any product iteration and the this year will be no exception, we will evaluate at or north of our.
And our collection of our foundry partners around capacity for right now.
The factors that affect sort of technology the <unk>.
Applause.
Of the capacity so on the.
The work is currently in progress for at this point for you cannot really disclose any additional information on <unk>.
Ah, yes schedule of lunches.
Yeah.
Sure Okay mindset, what the other one did you feel by any woman figure of 10, and the one and done.
Yeah and think of it yet.
The 10, and they'll tell you the keep them no, which I tell when the chance that guy and you tend to China and pay trip out of home and pick a time to hire people to come and get them on.
My second question is about all of our capacity I mean, all of that carrying capacity of every tight and how much.
And then for capacity can we secure each month and do we have any improvement at all.
Our life of capacity.
Yeah.
Shook out for a phone and.
Chris for you.
The kingham, goonies and drawn down and Chicago.
If he could be of alcohol.
Yeah.
And of course what.
Pardon me, Tony Barclay Hong Kong downtown.
The piece of it the chocolate and I kind of it.
And for them that quantities of kind of control triggering factor of the journey.
What kind of for it.
On the arguing and somebody and that'd be the recap of without the.
Three of them.
Gotcha.
And he is traveling and testing of helpful. Ken Sena, Tom Chico Pardo auditing and accounting.
And we have the hospitals, you're going to hold off on the quantity charter from China and Ghana.
And for the whole.
The agenda from the north of the funnel.
The new hold off on that.
And yet the shop pool of drink.
On behalf of collection launch and all you're going on.
And we'll try and force.
And I'm kind of playing into the pension.
The treaty of dog cat and teacher share.
And.
Two the two how would you say true.
Okay.
And I can figure.
To go through each of the true.
You may take the hint.
And the whole.
On the 10th of a relative to the same kind of true.
Sugar for propylene.
Although chip chip revenue.
The China U.
And so for sure.
So you should download on the photo you got to have a photo of the on shrunk again, not huge and knowledge of Austria for painting line kind of a drill to earn interest on medical.
Okay.
The shrunk the digital channels and the whole lot shoes and boots.
And you get comfortable kit.
She has the option of the tricky for me and ask for it.
The murder on the kind of attitude of.
Well the trade war.
Each of touch on the client both of them kind of Olson the should credit and they don't count shipper on the.
For Oh.
So all of that you're going to triple a fall off on and you won't get a function or the only thing down not true 14 trigger cash.
And cultural damage you don't drill on travel and people get channel from.
And the volcano pocket of the pick up on the Doctor the table of Shinhan, coolants, and culture change and share the wound.
Okay. So let me translate.
We believe the seer yourself on current issues and the ERP mining the true.
For all of it again for you of shortage of chip supply.
The mining machine.
The manufacturers generally just the frequent crisis as the reference points your estimate of future market demand for on the fourth at the mining machine, which in turn and will determine the production volume off of their my impression.
Due to the low frequency practices, even for the second half of plenty and plenty of most mining machine manufacturers and Virginia, the various investments for.
And the fabrication during the period as a result, when the peak.
And price bounce back in the second half of 'twenty, depending on where you saw the for here.
The supply shortage.
In addition for us.
For a limited supply.
Across the semiconductor and manufacturing sector and recently also have played a role and filling in for Jeff shortage of chips in 2020. One further at the braking and things of the problem of the supply.
We can learn from them and we could even get close to the back.
And the number of ships that we have on their production right now for one of the of Stryker is adopted.
Address the problem is maintaining all of our partnerships with multiple foundry partners and with our kids.
Expanding our collaboration which has helped.
And helped US the trip outstanding result, and.
And so shipyard.
On the other hand, the we are also active and incorporating with large volume and countries worldwide, including both publicly traded companies and professional and confusion.
With the long term purchase orders for.
Machines and in place and we can affect the six procure the delivery of all the trip Parnell with bunker partner facing her and would enable us to revisit the EBITDA yeah.
The critical shortages of chip supply cost.
Goodbye for the electrics and with anything quite price.
Yeah.
So what kind of yes, you guys think the tender on one year without a woman.
Name of Hinging pumping department and the bike keeps the gaslog at home and they told.
The only comment and then non episodic tend to know what's on top of a woman pick the kind of material and nail guns in the.
And he'd been too that union and kind of way.
In terms of China, Yeah, I agree with you on the whole.
And the two or do you see some of them she checkout and dependent.
My my follow up is that we have some relationship with mainland China. The advanced foundry partners and we got a lot of them.
Well the capacity for them and.
You'd see any competitor to compete and win.
These kind of capacity in 2021 and the parts of our strategy to protect the capacity.
Okay.
Okay.
Uh huh.
And on behalf of any sent back to the because you're talking about from the call. So anything are you doing to get them through to the.
Yeah, Doug and I take it.
Sure.
So you know a woman and she shirt shop Aqua and its over the past two of them really again.
So theoretically the phone call us and yet the hold on for Patrick Burke of appointing the ankle well the Yorkshire.
And Patrick.
The highlight of the couch at the top of food.
Our balance sheet take care of policies of talk heritage of Orange.
And should hopefully work with of all of the whole on the trigger that kind of between two of our notion.
Tomorrow, and our union and talking to other parts of the talent that kind of watching from the Ponzi Chockfull of Chicago.
The agenda.
And with children of trigger quantity of Derby is a part of where I see the surety of tree yamana are harder for genus.
Oh sure sure, though of cardiac muscle and factory the Qualcomm the pointed out of China and all of our range here.
For you.
When we hang on and talk outside.
As shown on the Q4 of whom from Oklahoma and the.
Oh, okay.
Okay and of the Virginia, but that kind of think of hot and.
And you were talking China, only the Shaw crowd, what kind of deal for Treaty electric work and get to the quality of food.
And I think we'll try and get the yeah, Patrick on that Paul.
And for the back book of Guangxi, and critical care not try and make sure you're going for you you should think of chip auction on the.
Triggers for Hawthorne credit all of the Mayo couldn't be more quantity of yours.
Okay. So thats the.
The well of course for the competitors, but I expected, especially given the high degree of kind of crisis, but we have already established a strong competitive mode of with all of our extensive experience all.
All of our collaborations with multiple foundry partners.
For the integrated supply chain and that's why I saw where the large global client base.
This is why we actually left the industry and market share so for.
My name is known for.
And the new markets during the first half of 'twenty, and just kind of one so far and.
And we actually see supply chains and eczema.
Other question.
The design.
And what it could be flying and requires our consignors and.
The higher investment in R&D, and and her myself of screening and the production capacity and wishes, the which actually has some other requirement per well.
And of course over and the investments in supply chain technology, and engineering of the current market environment and in 2020. One per day, we are working interest if the market opportunities and cooking has on where cash positions and strengthened our word of.
The development capabilities.
Our work on the product with volume on multiple nodes.
The same kind of world for us with additional flexibility for legacy for luxury.
And we negotiated work.
What are the night with these partners taking share at the property.
Yeah.
And I'm, sorry, what did you feel burned down and be dismissed.
On the yoga and Sun belt so.
No what I'm, saying.
Oh, and then pick up a few of the O D.
And the shiny and to go down behind them and people are coming again.
The whole it to go down and the team.
The woman the quantity the.
And on what that ex amount of income the mine.
And my next question and each of our worker and you all right and he already mentioned that our of you already or the achieved.
Achieved some milestones and how do we expand the E U.
Improvement in Q2, or second half and the contribution of from the improvement to our machine.
The machine shipment.
For counts were down here for you going from Google and photo of quantum and useful.
Yeah, no problem for you.
The two.
And so you're going to go for.
The graph on any of the wrong.
That's true.
Hard to pay for it.
Goodbye for now.
In terms of installed ruling and what's your sense of she and the Jackups and the many of cash of course all of this at all.
So the Chipotle was actually down on taking on cable channels.
For example.
She's the woman.
And we moved one of them on treating this out on two of her tradeoffs and Denver, Colorado.
Uh Huh Jackie the for two of them on when they go and hold 100 and not too sure of teamwork.
Considering the Chinese on and Buffalo on and the photo of polymer film for the Genco and the lever.
Our non union and the judge on that.
On the England for eating.
The board of trade line.
And I say of a ton of on medallion portfolio of Florida.
Ah the yelp res and easily be affected by a variety of factors and some of them.
It is also important and kind of the confidential trade secret.
But generally we're introducing here part of especially when starting the corporation within the partner it takes a bit of kind of for it for you.
Production capacities and the ZIP ready to ramp up and we are working on round the clock to minimize the batesville called Boise and period as.
And as much as possible.
Through the hard work of all of her already for you.
All of our colleagues and and all the partners.
And we have for effectively completed the difficult to break in period of rigs.
And profit.
The second quarter of price on one.
Oh.
And then you take on the woman Yo Yo Tio play true type of the quantum and then some of that junior and of course and many of them do you kind of on my and my last question is about our Ethernet mining machine do we have any plan to launch our E.
And she machine and tiny tiny one or on Youtube.
Yeah.
Oh.
All of those who should make for it.
And kind of a pause here.
True.
And the 13th.
And I keep on of course of the presumably on the auto platform net flows.
So what I kind of say right now is that the our R&D is currently in progress for at this point and we comfortably and disclose any more information of about.
Yeah.
And you.
Thank you.
Yeah.
Okay.
Thank you.
Thanks for the.
On the line.
And securities and some of them.
Yeah.
Right.
And on that.
That's great.
Hi, Nathan.
Oh yeah.
And then yeah.
Can you tell me if I take the I'm.
And I'm talking about point of view that isn't free cash and thank you Josh on that.
All of this metric that the downhole.
Yeah.
Yes.
Okay.
Good day.
Both of them.
Okay.
I'll pass it on there.
On top of the minimum.
I will check and myself.
And once that selling quite well on language.
Uh huh.
And.
On the right.
Alright.
The fourth quarter.
Yeah.
Right.
Okay.
And of course.
Good day.
Yeah.
For China and Canada.
The computer sugarcane and kind of a twofold and I'm sure part of it of a sugar.
A couple of hundred and she likes the calls of the volume.
And you saw from Talcott true itself.
For the council of her cancer at the peak out of the polo on and portal.
And traveling and talking to undertake the how much of that's true.
The changes of the opportunity of the I'm not sure of course.
Uh huh.
And you need of problems you know for for guidance.
You know the cure of voucher for for the.
Capable of and paying down the slow down of sure.
Chris will hinder our chair of the T V share for the shelf on the council.
And what's going on here for you during April two of travel.
On may 17th.
Okay. So.
The third.
Your question and the.
The the price of my name and she has actually moved to the website the corn prices only for the fourth and lack of machines that are ready for delivery.
So since the second half of last year.
And I don't think first of all of this year and most of my name is just and we fold. We're actually so the ex futures contracts of which had a fixed price.
And the on.
The price of four actually my words and then.
And our 50 of machine.
And.
Uh huh.
Sure I'll take that.
And that's why.
And yet.
And so I'm going on I don't know.
And then.
Yeah.
Can you kind of on net.
The whole.
Thanks for telling abandoned.
Okay.
Why is that.
That's the whole.
And Oh, sorry, the Dubai.
Your line.
Yeah.
Yeah.
Yeah.
So John.
Each of them.
According to the news.
And I'll come on a company called for.
He asked me the mindset.
True.
The only machine.
And I'm comfortable with.
Hum along the two pronged.
Thanks, David and.
And Oh.
On this.
And if we calculate price.
On a full.
On that.
And Paul.
While many of the machine.
And oh much on par.
Yeah.
And what those kinds of.
One of the machine.
Got it.
How much of it.
All of my remarks.
It's kind of all of them.
Uh huh.
Yeah.
And you guys sure part of the controller sales.
A tiny fraction of the current itself for the total losses and that's a plus.
Since the day.
To me the question.
And that was helpful.
The 20 <unk>.
True.
Popcorn on the whole and get to the total.
All of the pre coupons and email.
True.
To accomplish all of the type of trigger for that.
And of which three of them on footprint.
Chip.
And she was actually much of it.
And then the agenda for Hoffman on really cold winter and I forget how to teach auto true.
And we have to treat it.
And what type of time here and I think.
The channel for capital and the Charger and the only thing happened out of that.
No changes.
Tell me how to fund the pain points shooting for five quarters Q4, all of the people.
The throwing the.
And do the Chancellor of capital rule to go for yourself, we can free up out of gold on the front of your home.
Halfway or do a chip on account of hardcore song and account for that.
The fixtures for got put on them.
And introduction and you shouldn't get careful I did on Sheboygan downhole and took the shelf working on the top of the eat them on.
The bulk of kind of think of chocolate chip with cash on hand.
Yeah.
And what you buy for a channel for the and doing a bunch of them.
And for me.
And if he would be.
Yeah.
Okay.
The question for you.
But what could you put the for sale was made in February.
And.
For for the for the my name is in the stomach sold and we actually called on the.
At different prices.
And of which made for the comparison actually more and more complicated and generally speaking for him and emission and fab. We are the resell attitude and kind of features could.
It could be and much of a worse and the <unk>.
So for example.
It's the same machines could be pretty similar to where the strength of its Chris Cartwright higher purpose.
And so it kind of depends on the timing of when we signed those contracts and.
And the timing of when with the they've already of them and.
And I felt like the bunch of other factors, but generally speaking.
And the futures contract should have around and.
60 to 80 per cent of the.
The price of basically the commission.
Oh.
Oh, hi, Thank you for sure.
And that's going on.
Well most of that.
Uh huh.
Thank God that day.
Yeah.
And well level.
Hum.
Oh My God.
The weak spot.
All of them to meet some of the one I'm.
How much Oh.
Hold on.
And what the the average price.
Oh my goodness.
Oh.
Yeah.
Uh huh.
And thank God for for example, the Hartford is the only.
For the team.
What are you looking for.
And all of them.
And congrats again.
So for.
10 of the ICT towards the mutual.
Mutual funds, the hope or food and I'll do on taxes.
So part of the telco.
And I E.
The thing.
And you go from here.
The.
Okay.
Right. So actually mentioned this number earlier in the mine in my prepared remarks.
So I thought I said.
Before we have already reported order for more for mm 156000 mining machines with over $238 million and your advances from our customers for the end of the first quarter of plenty of 'twenty one.
Oh, I'm sorry, the cause of two.
For the tariffs on the alcohol and opioid.
I'll start on me and.
And yes.
The her to go it seems out of Asia and she wants from all the home, which under the Triple a share for telco and our partner.
And he was heading into the ATM.
Protein called.
And you got to respond to it.
The.
The contributed and.
I'm sure you've got the.
And I imagine.
And the other tissues Shanghai come and go ahead of the crop.
And the theory of pass throughs.
And privilege.
And timing of.
Christine and machines, what pieces of the current and timing of deliveries of cruise.
The society.
Expenses.
A pretty pretty pretty long period of time from.
Some of the word of scheduled for later on.
For next year actually and.
And the the practice of the space.
The 15 machine for its actually remained pretty high as well.
Some of them are.
And for the range of 50 to 100 and U S dollars.
And the bulk of the Merck going off the floor.
The meeting.
Let me go and sit down.
And.
Through the phone.
She knows who the tail for social of Gaslog.
Got you okay for the EMA.
Collin County and Guy.
Okay and then.
For the future of gasoline and Omega, you're kind of looking down the hope of yeah. That's.
And that could keep extra the runtime and country of the central to the family, particularly synthetic long jump on that Youre talking about.
And if you look at.
And Oh.
Thank you Paige.
I mean, maybe the he made him back and.
Uh huh.
And the capital pumping.
Okay.
Okay.
And on consulting for Jonathan.
Just to true extrapolation, so that's the 50 to 100 and prices.
For each other.
Perhaps.
Okay Oh.
And then can you tell me.
Okay.
And the whole well Yankee.
The woman.
One of them.
Now I'll pass on them and $10 so on.
The whole company.
Yes.
Up.
On Yankee.
Oh.
Some of them.
Yeah.
My question is you have mentioned that Oh come on.
Right.
All of them.
What is the cool.
Brooklyn, and Oh, My God I'm in line.
On a machine.
On Monday.
And all of the year and how much stock.
For the.
And that well compete and Poland.
And although 90 companies.
And Oh.
For computing.
All of our I T.
Yeah.
Oh tender.
Ralph on the year went on factory and opinion cool and off funnel of meat and Friday and golf for surely the toolkit right.
And in cohort two of our QC the trigger lock on the yield.
Uh huh.
Sure and so you would see on coffee the HELOC quality true.
The follow up and many of which only a handful of thanks, latanya and quality of the T. G.
And especially outside of the on a secure Gulf of a culture of trade the whole week screening and I will go quick.
And I do share question, you should the geographical T.
On the vouchers and vehicles on background for you Jay.
Political opinion of from here.
From here.
So we are advancing or or some of my.
Per se.
We have actually already setup and operation centers and Singapore.
And one for the operation.
And.
Kazakhstan and organically.
On the top of our of considerations that Florida, and North America, and we have always prioritize the compliance for our mining business.
Which is why we are in constant communication with all of our lawyers auditors as far as other independents.
Agencies.
And I'm sure all of the compliance and produce all of our operations risks.
Oh the cause that.
Put off on that.
And Nicole.
Thanks for the travel ban does.
For the two for the off the wall of Gotcha of horse racing and that Yamana and so you think some of our people were on the two part of the whole pumps and lots of on the tissue to her and she temporary price.
It's actually more of it.
What is the only that's kind of on for P loss for us.
And you could get to.
And 70 in the heart of one of the country for transport and alerts and coffee tea. For example of how can you walk on the part B and C and change out of.
And Kevin and crash courses and the tomorrow.
And we've got a portion of the Buckeye for you you kind of an issue and what you'd see in a lot of fall.
And I think there should be for food on the halfway of the country.
And you go to both.
On the system get sort of a rule and all kinds of it.
Since the kind of off and you got to care for far from Covid out there on the ones you walked out on Yankee.
And so far I forgot if we went out and that sort of for lifestyle, that's true but.
Oh, the suddenly the drip for food.
So give them, but our production up.
My name and things have been pretty much fully booked.
For the first half of 2020 one are we.
We actually expect.
The deployment of the money makes sense for our on my emphasis for the second quarter of the here.
In the thousands.
And with a total of computing power of between 350, instead of hash through the quarter, if they cut of harsh.
And before for the second half of the year kind of thing.
The one we will.
For a job.
Remember that figure based on all of the of the market.
And the environment and I saw it for our own production capacity for for the second half of the here.
Plans to deploy.
More than two per cent of our total production capacity every month for overhaul of the language business the.
And the actual number will be.
We will monitor the gap and the.
The progress of <unk>.
The other.
The company with the work, we're partnering with a slice of the contract.
And that can make the real time adjustments for.
And so provided that we don't see any.
And any huge changes in the.
Quite the.
And so all of the production capacity of weeks back.
To deploy around two ex.
Cash and for extra cash of of Porto computing power for our mining business like the other figures.
Okay.
Oh yeah.
No.
Okay.
Bottom line.
Oh excuse me.
Is it true.
Okay.
Yeah.
Posture on that.
Lots of questions.
For the mine corns, and you're going to hold all of it.
For all of them.
And on that kind of the region.
Yeah.
Second of both of the tenants and kind of holds true.
The country the truth.
Treat over the phone.
Thanks for the year.
If all of them will take a tour of cutoff date for free I asked and gets on to survive to the true true.
Okay.
Because of either.
So you can issue.
I think for me the golf course, and the whole finish on Chicago.
Yeah.
Pulse will talk outside of Covid.
And they take a third of doctors at the South, Florida, the Slovakia and from audience.
So so as I said earlier, we're definitely going to make sure but for.
All of all of our operations of our cost line.
And under the right, Greg and third guidance of weight will Oh, we will aim here and.
Hold on whether it be quiet for a few points.
For for the long term the other thing.
And finally.
The other possible for us for two.
Yourself.
The T this especially for.
Sure.
But so far we can push into Chicago.
For the benefits of worth of dividend of.
The of the core we and our industry.
Okay.
Hum.
Okay. Thank you.
Yeah.
Thank you.
Well they're of no more questions of this money and what do you have.
On the back to the management of expenses.
Thank you.
Okay. Thank you all for joining US today, we look forward to talking to you next quarter. Thank you.
Yes.
Okay.
Thank you, ladies and gents and the best completes the conference. Thank you for participating from home.
The next month.
[noise].
[music].
[music].
Ladies and gentlemen, and thank you for standing by and welcome to Canon, Inc. Fourth quarter and full year 2020 earnings call. At this time, all participants on listen only mode.
After the managements prepared remarks, we will have the question and answer session. Please note. This event is being recorded.
And would like to hand, the conference or what you're speaking of host today Mr.
I sure Hope you Lee for Secretary of the company. Please go ahead Mr. Li.
Thank you very much.
Hello, everyone and the welcoming to our earnings conference call the company's financial and operating results were released of our newswire services on and it's a day and are currently available on line joining us today of our chairman and CEO, Mr Langer, and John and our CFO and with the at home for.
In addition, which touch all of them, even though our SVP and it will also be available for the question and answer session.
With the John will start the call by providing an overview of the company and the performance highlights for the quarter.
The other will then provide the details on the company's operating and financial results for the periods of before we open the call up for your questions.
Before we can come out of.
The life of 44.
You to our Safe Harbor statement and see our earnings press release, which also applies for this call as the way you will be making forward looking statements. Please also note that we will discuss non-GAAP measures per day, which are more sort of roughly the claims at the look of the cloud for the most of the comparable measure for <unk>.
The on the generally accepted accounting principles in our earnings release and the filings with SEC.
With that I will now turn the call over to our chairman and the CEO, Mr. <unk>, Zhang and Mr. Jiang will deliver his remarks in Chinese and I will provide the corresponding English translations and please go ahead Sir.
Non-GAAP op for sure it's kind of unfortunate.
And at the anti or kind of long term.
The ratio of what sounds like okay. Okay.
Most of the already on hand at the utility and Shanghai and Beijing of Hmm.
Hello, everyone. This is Duncan Zhang chairman and the CEO of kinetic I will now provide a brief overview of our progress and the fourth quarter and the full year of declining funny.
Our data for <unk>.
Legal of each.
On the electricity and golf together with you on the change of policy issue of contribution for the phone call.
Touch on longer shutdown of outdated for trial and the agenda.
And what would you call it the of Ultra's Johan.
<unk> for your clothes for the controlling that and Siobhan and studio.
Your line of tangential to draw down on and you have more closely the iPhone came out of la.
And I'll go down on the EBIT.
And you don't want you for conduits anywhere on any of that.
The gel 72 of them down all of which have some of it on that portion of it.
Thanks for the insight.
For the long downtime and being thoughtful and I've seen it by the age of Shashi there quantity so on.
And each of them hasher wholesale and cash back out thoughtful.
The only of the fourth quarter. The big comprises continue the drive the which helped us to grow the market demand for mining machines. Our vision of the approach has already enabled us to establish a presence and the market in previous quarters, and the fourth quarter and we further optimized for the composition of our customer base.
And the secure the large number of orders from our long term partners, which helped the to safeguard the hour of bonds and cash flows as of December 31st of 2020, our total contracted the.
<unk> amounted to 174 million of U S dollars.
And $66 million and advances from our customers we price.
And the sequential increase of $54 million from third quarter of plenty plenty.
We also successfully started the our mass production and the of and the deliver the next generation of 812 cylinders and mining initiatives and in that period and the would have already began delivery of this new product service and the largest scale and in the fourth quarter of kind of <unk> 'twenty one.
For the <unk> put on for John.
Hello, Lee and her.
And on the other new Bill came for harsher and for 14, corneal and total knee.
And I know of about target that got out of home because of the AI.
Hey, yes for AIG.
Kind of on working with them.
Thanks for the Kingdom.
The only the fourth quarter and await further strengthen the core competencies of our mining machine business by expanding our operations and the market investing in our R&D capabilities and the refining our supply chain management. In addition, our increased investments in our business.
Sentiment has enabled us to achieve the meaningful progress in developing best in class AI chips and facilitating the commercial applications.
The telco Hong and also.
And in Cheyenne and Dan called out that our strategy the arm on the high quality.
And how about you and also came down now for the topical dongguan different teams working on that now.
And so with the on time, and Aqua criminal and hotels evolved through LNG and back of the Eval and 10 high you are correct the the heat.
And I would have thought.
So that sort of how you they.
And you always hear long haul from the cohort tallied off of work.
In particular, the total number of orders and whether you received for our mining machines in 2000 and timing reached the 172 solved and the shoes and the second half of 'twenty and timing.
And we're able to significantly grow the number of orders for our mining machine, reaching 92, southern and machines and the fourth quarter alone. Among these orders the way continue this and procure orders from prominent institutions, including the investment the firm Blue and invest which has all of.
The 15000, the shoes and the auto credit, which has all of the 1350 machines. In addition, we have also started the collaboration suite and several well regarded the mining machine and customers in the northern Europe.
And if you're on the our union and easy to learn more.
From a quality of hardware Schroeder, who want high.
And couple of AGA and items like that.
Most of the type of our culture playable and for the Hi, Paul Cheng Cheng and wanted to test for the back half of policy of the Hall.
You may want and turn the quietude, Horcoff attentive Chengdu and what I'm doing.
Other quantity on that.
As of the end of the first.