Canaan Inc (NASDAQ:CAN) Q3 2020 Earnings Conference Call - Final Transcript
Nov 30, 2020 • 07:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to Canaan Inc.'s Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, we will have a question-and-answer session. Please note this event is being recorded. Now -- I'd now like to hand over the conference to your speaker host today, Mr. Shaoke Li, Board Secretary of the Company. Please go ahead, Mr. Li.
Thank you very much. Hello, everyone, and welcome to Canaan Inc.'s third quarter 2020 earnings conference call. The Company's financial and operating 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 will also be available during the question-and-answer session. Mr. Zhang will start the call by providing an overview of the Company and the performance highlights for the quarter. Mr. Hong will then provide details on the Company's operating and the financial results for the period before we open up -- open the call up for your questions.
Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call as we will be making forward-looking statements. Please also note that we will discuss non-GAAP measures today, which are most roughly explained and reconciled to the most comparable measures reported on the Generally 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.
Hello, everyone. [Foreign Speech] Hello, everyone. This is Nangeng Zhang, Chairman and CEO of Canaan Inc. I will now provide a brief overview of our progress in the third quarter of 2020. [Foreign Speech] Our total net revenue in the quarter decreased by 8.5% quarter-over-quarter to $24.01 million. In the second quarter, we focused on reducing our inventory and we had almost cleared out our inventory as of July. By the end of the second quarter, the demand for mining machines in the market had re-bounced [Phonetic], and as such, we continued to ramp up our production and tape-out the process in the third quarter. However, the waivers that were in the fabrication process during the third quarter will not be started to deliver until the fourth quarter of 2020. Consequently, these waivers did not make a significant revenue contribution to our third quarter results.
As of the beginning of the third quarter of 2020, the price of a Bitcoin maintained its upside momentum, reaching $12,400 in the period, and in fact, proceeding to [Phonetic] $19,000 during the fourth quarter of this year. As such, the blockchain market recovery trends continued to boost the demand for our products.
By the end of