AGM (AGMH) 26 Apr 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by and welcome to AGM Group Holdings Incorporation's Fourth Quarter and Full Year 2021 earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question and answer session. Instructions will follow at that time. is call this note being recorded. Please

have time. you any objections, this at disconnect may you If

will the Gao, I Director Now turn for Investor Tracy AGM Relations Gao, Group. Ms. please call proceed. over to

and And hello, Conference to Fourth XXXX Thank you, the everyone. year Operator. full AGM Welcome Group’s Quarter Call. Earnings

release AGM with Mr. released be from company's Chenjun Chief call available Officer. Co-CO, We Li, the Steven the A Joining us this website. few Group Mr. the today, company's results available hours Sim today earlier the press Wenjie Tang, services. of Newswire Mr. Co-CO, and a the our in Financial on replay also will

the Tang key company's on First, the will Li the and highlights. brief Mr. company's then, you review financial Mr. And results. Mr. will Sim

today's please Securities will made of continue, forward-looking statements Harbor that XXXX. the Private the U.S. we of to note under Act come Safe provisions Reform discussion Litigation Before

uncertainties. risks inherent involve statements and Forward-looking

the under otherwise Tang. such, the during applicable our Mr. the the to today. Mr. the also, forward-looking company actual be Except as any regarding results public the Further over included may As assume any that, turn figures call different ahead, doesn't dollars. that the company's Wenjie The update Go statement. and with unless risks to filings let is Co-CEO, and required With note and stated, conference expectations please U.S. call company's law, information Tang. in mentioned in uncertainties expressed SEC. all are those me now other obligation from materially

and XXXX a that transitioned crypto full-year as to currency machine. and XXXX everyone. our year for smoothly chips and AGMH our mining advanced develops blockchain-oriented quarter Thank business was Operator. Tracy unique you Welcome you, morning, [Indiscernible] produce company into a Thank earnings and technology conference today. we fourth good

sales in second and We relationships, the customer developing up XXXX. corporation to establishing plans, partnerships, critical are progress with From of our cultivating scaling happy half in strategic key productions.

were delighted delivery mining fourth all months, We We three was and the revenues a performance in The purchase currency strong XXXX's the a crypto and our capabilities $XX.XX achieved very small from equipment, execution machines, solid a the announce in to growing base. is which X,XXX superior that crypto from a are four-year were and of worldwide shortage. machines congestions, technology million of our part last industry-leading semiconductor currency quarter. revealing delivery logistics mining still of order of demonstration mining a feedback million, are excellent $XX.XX client which of navigating across ASIC deliveries

to continue a As performance considerable meet technology to we future be development upscale foundation in XXXX's recognized for out machine orders, R&D, ASIC blockchain-oriented advanced crypto on emphasize our efforts chip leading shipments will and mining number great company our revenues. to services. towards production, a outstanding software of integrated more laid FinTech

shareholders. XXXX our on a our value beginning turn initiatives. global new just increase strategic that, long-term and Chenjun further of our With us, industry will call and team we our supplies ecosystem, while to who Chairman will details presence our will For cutting-edge journey. blockchain technologies was a With strengthen the and in veterans, of a Mr. more for over creating Li, and provide lasting the our I Co-CEO,

a Thanks was strong This you Good strong for us thank a Wenjie. everyone today. business. morning, joining for our all and quarter and year,

and any this poured magnitude to and lines digital [Indiscernible] participation years. of to the and the likely Bitcoin financial sector should potential And remain, the industry [Indiscernible] reduce institution over other markets. [Indiscernible] has amount are into of presence assets of increasingly the recent over in the near-term, of the significant Although bear the sentiments,

delivering in shift machines currency power been solid also designing deliverers participants performance in of mining the seen been which of a in be XXXX, of in America. follows [Indiscernible]. equipment. crypto well increasing in term growth our into we representing encouraging and manufacturing as our The mining. enhancing has stretch demands efficiency are the currency to computer chain key to capabilities mining XXX,XXX The It was mining demands. testament into the as worse, vigorous products, North X,XXX expectation crypto to chips supply advance results meaningful and have The our investing ASIC accumulated have to within machines, market as crypto the We see and move

Next, with fostered into In have a this ecosystem. expect. and best-interest supply strategy to know-how please allow chain, deeper blockchain go partnership the me closer technical we to order establish the

For instance, and we our extremely the and optimizing as is it made other ensures HighSharp components. are to machine materials mining, successful term, transportation. along tougher and the integrity which process with Such as have and the safe company, appreciate global raw logistics Technology electronic disruption deepening the production wafers a by relationship partner the cooperation raw logistic critical purchase materials mining such with equipment, assembly strategic and supply semiconductor purchase deliveries

the enable developed and lock in Additionally, HighSharp chain base technical progress up joint establishing global JV and our venture regional influence sourcing, to a U.S. a we in set design a magnified step plans forward the integrate supply will R&D the client we mining and past us in assets, AGMH. setting capabilities significant the fully machine has all as the of barriers fifth stressed from price and and chip our occurred personnel, which million including space. met orders in capabilities, or JV, gaining allow planning will to our preconditions ahead well and the be capability, are AGMH March brand before for periods future of aim that, in peers. us This deadline. equipment which will as the mining HighSharp to into U.S. with Bitcoin our of future will patents significantly partnership, as leapfrog respective to JV $XXX XX, the has With our remarkable the follow The effectively position

the conditions by place, future potential consideration. the expect terms will will design in competitive the for coming under which By upgraded quarters, CXX products. discussion, power at rate very are for XXX upgrade second we demands per raise integration first-of-class the the to JV [Indiscernible] P up and as is be industry. the advanced the with about to Although of XX% are the the our HighSharp, we for we capabilities among core of still our the and AGMH, hash element miner XX% significantly and orders, specific we boosting Once in we is highest advantages. hashes hash to believe currency will industry. the In expect leveraging new technologies, to broaden is rate, mining equipment driving our JV take crypto be The hash future production its the optimistic more in entire percent the

on move Next, into America. let strategic share North me updates our the some

relocating We and stage of our research are manufacturing America. planning headquarters, North the the facilities into in center,

policy environment We have identified the with capability construction, so local of the own asked several willing evaluation local we that of quality and them process selection, we and the building cooperate considering full make production possibility from Meanwhile, factory our which are protection we government also spanning [Indiscernible] site manufacturers requirements. to the components and factory to a for purchase us, are of of equipment could products. will and that have evaluate the

cost, and XXXX, cost reasonable elevating to get customers in closer plus complete to while expecting option the the that the choose crypto production and to on the benefits us mining and sites, best the are on of business labor our which the external QX impacts managed can several operation. We currency most

partners, policies the of the next In business dedicated development focus them, XXXX talents our we first at able our support our revenue talents to process Thanks on to well, first In accelerate mining assess on we we our the and AGMH company. quarter, of of terms hiring will began from and and America of chapter delivering the region. as foremost two North the remains for research shifting transformation. costs and in is the task are machines. our our

us acquire our will to continue for orders more we top-tier customers orders, we or pay who demands. for trends partners, new sizable larger recurring receive As to have can actively and saw new

needs. degree We their will specific provide a of for customization

also chain response and swift avenue in sales Denver's capability crypto with seeking growth currency new will our and Looking ecosystem to of do new to the in that we the while direct business supply adaption ahead towards technologies. to XXXX, the continue expand

very over thrive are We more diversified products dynamic help will and more positive the advanced we emergence offerings market. in this of us which

who to over Now, CFO, I our Sim, review on the our call financial and Steven results. comment will turn Mr. will

stellar as XXXX comparisons thanks I'll on three the In the We reached Chenjun, all-time on of and period fourth strategies, our for were key the December fourth referred are my quarter increase full-year everyone some XXXX results to the the XXXX. delivered on Thank for high. Summarize about financial All the results, call. that months quarter, XXXX. ending quarterly being revenues the same XX, results million, and to as revenues for full-year from $XX.XX fourth-quarter XXXX. for $XX.XX comments ended stated. you, a by strong an the year, Fueled business of year new an growth in prior unless our otherwise the million

revenues net equipment. the million to We loss million, million to increased In standardized computing year-over-year in increase the sales of in compared also driven $X.XX $XX.XX machine $X.XX by million income $XX.XX profitability currency XXXX. turn XXXX crypto deal and our of quarter, net a with mining primarily to in by of fourth

XXXX. second power XXX,XXX new in of period quarter, Our compared total the per total in same terahash to delivered, fourth computing the

on same the prior compared increase million Gross far, in the will in procurement in from we revenue. due XXXX. in machines. costs deliver So in $X,XXX to with of cost year revenues of equipment, $X.XX was which period outstanding, $X,XXX fourth be $XX.XX the future the have the reflected Along million number of of profit to surged quarter, we still substantial increase revenues substantial with orders the as

points margin year. the Our the expenses from fourth the was percentage triple quarter. in than more X.X quarter, million operating prior Total was gross previous $X.XX XX.X% up

administrative months, concurrent XXXX. activities. a in to operations mainly $XX,XXX investors, million $X.X compared last liquidity certain million from the million $X.XX to with business private in same we in Meanwhile, will to quarter, increase and to Due the in operation to of income revenues, Specifically, increased in supplement direct three of December. loss offering selling net placement $X.XX expenses cash in XXXX. a was the development. registered of expenses loss period raising the of flow general closed our fourth quarter about our proceeds $XX the quadrupled compared million fourth in from support period million of with in This the income gross was business and Net and same to $X.XX XXXX, related the due

$XX.XX of million capital XXst, December including respectively. and we equivalents million September of As XXXX, working of XXth, and and cash $XX.XX and $X.XX XXXX, $X.Xmillion million, have cash

me Next, let our share some regarding plans business. upcoming

deliveries evolves, XXXX will over growth. procurement our we streamline for and As management further

will deal HighSharp venture supply to growth. to HighSharp, aiming support leverage with a are We where chain joint R&D strengths we its and

Importantly, efforts focusing by company's currently unleash We believe space is of company concludes leveraging phase next Operator, please us our call for team remarks management ecosystem the the help prepared in can new company's and growth. opportunities of new now ahead. exploring our blockchain the go these open That into. where areas additional the the in let's the to questions. drive can the experience financing, expand actively on

ahead. Thank is from at [Indiscernible] [Operator question first Language] you, [Foreign Instructions] go Fund, Instructions] Capital [Operator [Indiscernible] Your please management.

Language] [Foreign

Language] [Foreign

Language] [Foreign

[Foreign Language]

Language] [Foreign

[Foreign Language].

do the So translation as to call the provided the we translation a be and will online and not question will be participants well. after direct to other will transcript, the but participants, answer, provided of

to easier make and smoother it it'll save time. So

question. So operator, please open next the up for

From management.

at question ahead. Securities. [Indiscernible] is [Indiscernible] Please next Our from go

[Foreign Language]

[Foreign Language]

Language] [Foreign

[Foreign Language]

Language] [Foreign

from Your is Karl Please American from ahead. next Investment. go question Birkenfeld Trust

business you have, your questions for down revenue the for projection XXXX? very XXXX? is How Thank of States lock What's one investors. in your China does Three much. I United affect

I'll Thank you, Karl. is question. This your take Steven.

plan widely As manufacturing what's us a happen really really been perspective has basis. realistically lockdown to to and ongoing years. from the that, impossible COVID-XX nearly forecast reported difficult media has to next. situation situation already chain a is going Having two to going three it's forward for the because the context, supply past on in And and environment that and China, for in said

as contingency have And in opening part in the factories made to our potentially, already future. alleviate remarks, in moving We to essentially mentioned this U.S. sufficient U.S. the including operations the prepared of situation the we plans,

resolving think supply of I effects, completely facing are we the of deal and the workers specific short-term the same of to in of not the a terms issues. when upstream manufacturing, have our raw these In example, but we in order, having for Take factories cities, just chain massively just control. certain lockdown fulfill out disrupted. issues also suppliers unfortunately, being And material, with logistics are the in gathering sufficient terms

and not or growing suppliers. still we So our our up QX, In I you. can what essentially, the But in and believe control solutions, the that we upstream cannot including control, any new will just in or to nutshell, year. should diversify impossible we we what that North projection solutions. come almost presenting also the transitioning do that we can't that best with positive, context, above-mentioned largely America business, it's Thank whole [Indiscernible] think moving even think for other provide able a we we we seeking we towards as to a are less do project cannot more quarter. QX, we're we into evidenced well by our as be improving the really the a to guidance, into I business, to for of we're on revenue, quarter-to-quarter is because to The steadily market. going backdrop, basis, And though fourth but that move are the also

My technical in peers who China competitors? and and U.S., what versus key the second your your are question is your Thank you. is advantage

me Q And mentioned been A answer our let because has in the repeat Chinese. and CEO. It previous from that his was by

JV [Indiscernible]. capability having first well Li spec. second market. is mass strategic HighSharp And specifically are the And and experience beneficial having the the time the partner that as has the go of in So us our R&D Dilo we partner. we in as the then key in our a one well-known our industry -- the And at produce one been of US. the investing and in which the going-forward peers is having improve company to a machine, forward, in peers same listed per to XXX of are as our industry as same is mentioned the that of as [Indiscernible] HighSharp the highly continuing specs think years. highest machinery, the also are our which we because I ability at HighSharp's we and generation Mr. chips. machine, CXX On feel throughout to next this basis, also of And terahash

a the the We market. on our industry. value be changes with very on comparing we feel that and cutting We of huge to onto act value can what's to we Now, key we customers, not a of base. we team. our partners a fuel the able advantage, accordingly chain, own and the technical have, we I on the for nimble such continuously -- cost do in feel and uncertain proposition manufacturing nimble rely key lot up the supply think example, believe and and of in to are chain we terms manufacturing holding our are the that also of peers our being this I with each in Because have environment, come products improving edge

you. Thank

Now, my Any yourselves? of what's of energy view the and miners that clean efficient or question your produce use energy producing third other chips? plan chips efficient energy final,

let to Mr. and pose the a me will Karl, question do then -- this Li translation. I

you, Language] Karl. [Foreign Thank

energy. views optimistic. use Our positive support and mining clean is fully our on clean customers to energy [Interpreted] We miners using very

Language] [Foreign

optimized ourselves the and to producing energy the goal up our ways of a energy, shaped terms energy actively efficientship. At best In is we [Interpreted] that and come with efficientship, common is are finding by this the moment, peers. investing

Language] [Foreign

is we're terahash the per using the same out in with will XXX And KOI market the now. continuously it terahash future, energy-efficient that second, -- per the believe we that machines Miner of improved. will one our there right most XXJ time, [Interpreted] At CXX be this

Language] [Foreign

and goal and In Thank mining in pursued a clean should our efficient should the industry [Interpreted] and something be achieve. it's to should using be peers, terms you. and by a common energy strive goal ourselves that we of be

my seems much. of very guys answering It chain. top company great for the like you are have you questions. here and you on Thank Thank you a

Karl. you, Thank

you. Thank

at is next Cam HC ahead. go Please Our from question Wainwright. Sugrue

the concerns current how Good supply you morning, is going I think ask, North to and chain wanted shift affect everyone. order fulfillment? to America do to

Cam, North what The question? do you to America? repeating mind the

shift North concerns you do chain supply How current is affect Sure. and to think fulfillment? in America the going order

The current shipment the America is North to affecting question? that our delivery,

You guys operations announced a to shift of North America.

you think how So supply chain? affect going to the that's

Right.

Okay.

apologies. Sorry,

I mining for speak customers, bring comes of terms destination customers. we to level, a is a essentially key the North shift strategic in tops best And consistently, for up basis worldwide to from our we mining options our when companies. the the So closer view to different And think America on ourselves companies.

relatively regulatory in the and is shall markets, One also political allow clean very to closer obviously, reason obviously U.S. companies many of and energy the capital And stable And it's a we environment. efficient mining the the available. the there

perspective, which And reason has from factories. the will to the pre brainer. the can logistics be And in moment. at to It in assembled right we run somewhat to be looking are The those terms the that bring various relative no other consideration customers in to think, might considered for be a having is finished think shift So that obviously there - is at be issue. options increase largely assembled being being be lot potential to the raw I the -semi a us. there in to And that offset. materials costs, benefits, resolve upstream you closer a the of long U.S., the shifting of complexity machines of to then,

of amount that costs similar you to increase do or expect R&D you. you number do a Thank Excellent. And overtime? XXXX, expect in

level AGM with not level, Company great our strategic cost R&D partnership is question this is by -- actual So reflected at the company the way. from a because AGM the

levels then light take the Our to is with mentioned, in the partnership integrate R&D increase will we and historical maybe not But chain allow idea HighSharp means feel value an ourselves will optimized technology. the that which integration positive tandem that and we in Meaning with R&D such is that it's will we action. future in and activity previous how place comparable to long us is HighSharp in tap their strategic with of as by their say this we'll further also into expertise, such development to license the is future JV. but run, such

then invest profit iterations of invest increase We further we products. RMB -- in will into into this future margin to our

Great. my Thank answering excited morning, about questions this you very growth we're of the for the company.

Cam. you, Thank

Thank no more the in the ahead. Seeing remarks. turn let Chenjun call me Please questions Mr. the to go Li back for queue, you. closing

Thank thank you participating your interest and on our next And again for progress. Operator. We forward support. you your and quarter, you, Thank look reporting call you. all today's to to appreciate for

you. And concludes Thank this Again. call. the

now disconnect. may You