Canaan Inc (NASDAQ:CAN) Q2 2020 Earnings Conference Call - Final Transcript
Aug 31, 2020 • 08:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to Canaan Incorporated Second Quarter 2020 Earnings Call. [Operator Instructions] After the management's prepared remarks, we will have a Q&A session. [Operator Instructions]
Now, I'd like to hand the conference over to your speaker for today Mr. Shaoke Li, Board Secretary of the Company. Please go ahead, sir.
Thank you very much, and hello, everyone. Welcome to Canaan Inc. second quarter 2020 earnings conference call. The company's financial and operational results were released by our newswire services earlier today and are currently available online.
Joining us today are our Chairman and CEO, Mr. Nangeng Zhang; and our CFO, Mr. Quanfu Hong. In addition, Mr. Jingjie Wu, our VP and Mr. Wenjun Zhang, [Phonetic] our Executive Assistant will also be available during the question-and-answer session. Mr. Zhang will start with the call by providing an overview of the company and the performance highlights for the second quarter of 2020. Mr. Hong will then provide the details on the company's operating and the financial results for the period, before we open the call up for your questions.
Before we continue, I would like to refer you to our Safe Harbor Statements in our earnings press release, which also applies to this call as well -- as we will be making forward-looking statements. Please also note that we will discuss non-GAAP measures today, which are mostly roughly explained and reconciled to the most comparable measures reported on the general accepted accounting principles in our earnings release and the filings with the SEC.
With that, I will now turn the call over to our Chairman and CEO, Mr. Nangeng Zhang. Mr. Zhang will deliver his remarks in Chinese and I will provide the corresponding English translations. Please go ahead, sir.
[Foreign Speech] Hello, everyone. This is Nangeng Zhang, Chairman and the CEO of Canaan Inc. I will now provide a brief overview of our progress in second quarter of 2020.
[Foreign Speech] During the quarter, Bitcoins price volatility declined in comparison to the first quarter, as a result of the Bitcoin halving events in May 2020. As Bitcoins price began to recover in the post halving period during the second quarter, we recorded a meaningful improvements on a sequential basis in our financial and operating performances.
[Foreign Speech] Most notably, our total net revenues increased by 160.8% quarter-over-quarter to RMB178.1 million, driven by a 198.5% sequential increase in our total computing power sold and a 153.5% sequential increase as a number of Bitcoin mining machines sold during the quarter. In addition, we also improved our profitability as we grow our gross profit of -- to RMB43.3 million in the second quarter from RMB2.4 million in the prior quarter while significantly narrowing our net loss to RMB16.8 million in the second quarter from RMB39.9 million in the prior quarter.
[Foreign Speech] This strong performance was a testimony to our ability to rejuvenate our business and the financial growth as Bitcoin prices stabilized in the post halving