After hearing the shareholders’ meeting today, the company’s revenue in April suddenly dropped to RMB 279 million. In April, it turned into a net loss of RMB 1.4 million after tax, which is mainly based on accounting principles. However, the camp recovery in May rose to 558 million yuan, mainly because the company actively reduced its video card inventory and pushed the camp to recover.
As for the demand for mining, Chen Jianwei said that the demand suddenly disappeared, and many middlemen who mined minerals disappeared, mainly because of the previous mining costs of virtual currency, which could be recovered in three to six months. Now, the payback period is more than one year. The number of small-scale miners has decreased, but the big ones are still big. The demand for large-scale mining remains.
Looking at the outlook for the second quarter, he said that efforts are better than the same period of last year, and the demand for mining is really impossible to predict. The company’s May camp will recover, mainly by actively reducing inventory, and it will continue to reduce inventory in June.
Chen Jianwei said that the company’s profit in the first quarter was quite good, and the legal person estimated that it would not lose money in the second quarter. He stressed that due to the unpredictability of mining demand, the company accumulated quite good from last year to the first quarter of this year. Profit, therefore, will actively explore other new product revenue sources to maintain stable profits.
He pointed out that the company’s industrial computer-related products, which have been in operation for more than three years, belong to customized products, with a gross margin of about 20%, and are mainly customized display cards for shipment to gambling machines. They are used by Japanese guests. Casino in Las Vegas, which is a niche market, and is a three to five-year long order, which can stabilize the company's profit.
In addition, as regards the acceleration cards for data centers, he said that the market in this area has also gradually risen. The company has partnered with Zhilin to launch an acceleration card for data center servers. The legal person estimates that customized products such as industrial computers will hopefully occupy The proportion of revenue this year is about 10%.