Aug 20, 2026 earnings call — Next-generation mining ASIC tape-out and commercialization
Completed tape-out of next-generation mining ASIC; commercial launch targeted for Q4 2026.
Revenue $0.0B (est $0.0B) · EPS $-0.72 (est $-0.03)
Key quotes
"In July, we successfully completed the tape-out of our new next-generation mining ASIC, a major technical milestone that keeps us on track for commercial launch in Q4 2026."
"We also announced today that our Board of Directors had approved a share repurchase program, under which we may repurchase up to $15 million of our ADS over the next 2 years, funded from our existing cash balance."
"As of June 30, 2026, we had realized approximately RMB 23.1 million in annualized labor cost savings through our organizational restructuring."
Analyst Q&A 2
capital use, buybacks and 2027 plans
Q (Mark Palmer · The Benchmark): Analyst asked about capital allocation priorities: the new share repurchase, R&D spending, and potential AI M&A. He also asked how management sees 2027 revenue, reducing crypto reliance, and what milestones to watch.
A: They planned $15 million for the share repurchase program and said R&D capital will follow the usual tape-out, inventory purchase, and sale process so capital needs remain like prior projects. AI initiatives and M&A capital requirements depend on each project and cannot be accurately estimated now. The new ASIC will launch in Q4 2026 and give some revenue in H2 2026 but not large; mass production is expected in 2027 and they expect 2027 revenue to be better than 2025 and 2024, with other revenue bases and AI possibly contributing.
"Firstly, for the share repurchase program, we planned $15 million for the share repurchase program." — Chaowei Yan (CFO)
competition, ETH holdings, and product contributions
Q (Matthew Galinko · Maxim Group): Analyst asked whether competition has changed in the ASIC business given the crypto environment. He also asked if ETH treasury holdings can be used for M&A or other spending, and whether other products will contribute if crypto recovers.
A: They said competition for the new cryptocurrency is not intense and they believe their next-generation ASIC has leading performance; they are confident for 2027 and expect market recovery in the second half and next year. On ETH holdings, they said they will not sell ETH now, are buying ETH with their own funds, and plan to use profits from mining machine sales to buy ETH rather than using current cash, though the policy could change later; current cash will be used for R&D, mining machine sales, current business and AI initiatives. If crypto stays in a bear market, revenue will come mainly from the new machine; if the market recovers and Dogecoin and Aleo prices recover, prior product lines can quickly contribute because tape-out is finished and wafers can be ordered quickly.
"So our current strategy is to sell mining machine and obtain profit and use that profit to buy the ETH." — Chaowei Yan (CFO)