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spk01: Hello, ladies and gentlemen, and welcome to participate in AGM Group's first half 2021 earnings conference call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. Joining us today are Mr. Wenji Tong, AGM Group's co-CEO, Mr. Chunjin Lee, the company's co-CEO, and Mr. Steven Sim, the company's chief financial officer. First, Mr. Tong and Mr. Lee will brief you on the company's key highlights, and then Mr. Sim will review the company's financial results. Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in its announcement are forward-looking statements. Forward-looking statements are based on the estimates and assumptions made by the company in terms of its experience and its perception of historical trends, current conditions, and expected future developments, as well as other factors the company believes are relevant. These forward-looking statements involve known and unknown risks and uncertainties, and many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements. Further information regarding this and other factors are included in the company's filings with the SEC. The company undertakes no obligation to update forward-looking statements to reflect subsequent or current events or circumstances or to changes in its expectation, except as may be required by law. I would now like to turn the call over to Mr. Tong. Mr. Tong, please go ahead.
spk03: Thank you, operator, and good morning, everyone. Thanks for joining our first half 2021 earnings conference call today. Before I start, I would like to welcome three new members of our executive leadership team. Co-CEO, Mr. Chengjun Li, and CSO, Mr. Bo Zhu. Both have vast experiences and industry resources in chip designs and blockchain applications. Also, our newly joined CFO, Mr. Steven Shenz, who has served in many leadership capacities in audit and financial management for the past 15 years, including some US listed companies. We look forward to leveraging all of their broad expertise and insights in guiding the long-term development of AGM Group Holdings. So for the first half of 2021, as we were still in the business transformation, our revenues were derived from the sale of past software products, technical support plans, software customization service, and the bundle sales of products and service of these items. Due to the negative impact from the global COVID-19 pandemic, we did not generate material revenue during these six months June 13, 2021. Our partnership with an Australian licensed financial service provider for social trading and educational web service was delayed due to frequently regional lockdowns in Australia and China caused by the COVID-19 pandemic. We have resumed the conversation and development with this Australian broker and expected to enter into a definitive agreement during the fourth quarter of 2021. However, we are pleased of the strategic directives that were initiated recently. In the past few months, we have conducted significant transformation and upgrade our business, driven by our refreshed our board of directors, and expanded management team. We now have unified leadership fully focused on two long-term goals, satisfying customers and delivering long-term values for stockholders by fortifying the company's infrastructure and technology to become one of the key suppliers and contributors in the global blockchain ecosystem. And with that, I will turn the call over to our co-CEO, Mr. Chunjing Li, to provide some more details on our new strategic initiatives. So, Mr. Chunjing Li.
spk02: Thanks, Wenjie. Good morning, everyone, and thank you for joining us today. I am very excited to join AGM Group. to capture the great opportunities in the blockchain and the cryptocurrency market. I was fortunate to have entered the crypto chip field since 2013 and have participated in numerous pioneering breakthroughs within this industry. One of my specialties is supply chain stability for the worldwide cryptocurrency miners which is more critical than ever given the global chip shortage. Dr. Bourdieu possesses an in-depth understanding of the blockchain technology applications, as well as a well-known reputation and extensive network within the industry due to the extensive time spent in the high-performance computing research in the past years. Dr. Bozhu and I will be jointly responsible for the ASIC chip R&D and the crypto mining equipment manufacturing and sales, expanding our products to reach the overseas institutional clients and the networks, and providing the innovative optimization solutions for these clients. Our plan is to position AGM Group as an integrated technology company with blockchain-oriented ASIC chip design, advanced crypto miner production, and fintech software service. Our actions included adding technology talents and experienced leaders to the organization and launching our first in-house branded ASIC crypto miner, CoinMiner C16, with the best parameters in this world. We also continue to expand our blockchain and fintech application to actively seek opportunities to introduce blockchain-based NFT and DeFi technologies into existing products. As part of our execution, our recent strategic partnership with HiShot is aimed to accelerate growth for both companies in the fast-growing global cryptocurrency market by leveraging our unique strengths and assets for software development, technical service capabilities, and next-generation high-performance ASIC chip design in order to expand blockchain-oriented ASIC chip research and development, as well as to extend the full service of crypto mining equipment manufacturing and sales. In addition, we established wholly-owned subsidiaries in Singapore and Hong Kong for providing software development and consulting service for Asia. We plan to establish office and research centers in Hong Kong and Singapore as those regions have clear regulatory framework towards crypto assets and blockchain technology, as well as available senior professionals. Looking ahead, we are optimistic about the development of our new business in crypto mining equipment as the demand for high-end Bitcoin miners in the United States and Canada continues to rise. We expect that our C16 miners to capture a considerable amount of orders in this favorable trend as we launch sales in the United States, Canada, and Europe. Now, I will turn the call over to our CFO, Mr. Steven Singh, who will review and comment on our financial results.
spk04: Thank you, Chengxin, and thank everyone for being on the call. I am very honored to be part of the team here at AGM, especially at this exciting transformative time. I will summarize some key financial results for the first half of 2021. In my comments on the quarterly results, I will refer to the first half of 2021 as the six months ended on June 30th, 2021. All comparisons are to the prior year's first half ended June 30, 2020, unless otherwise stated. During the first half of 2020, as Wenjie earlier stated, we did not generate material revenues due to the negative impact from COVID-19. The total revenues were $8,449 derived from our retail software products, technical support plans, and software customization services segments. Although we are shifting our focus to blockchain business, we still aim to leverage our experiences and resources in the current software services business for additional support and opportunities. As Tenjin indicated earlier, we are seeking to expand our current fintech software services to blockchain-related areas. With limited revenue generation, we were very vigilant on cost control. All costs and expenses depended declined compared to the same period in 2020. This resulted in a narrower net loss of $507,000 compared to $659,000 for the first half of 2020. Now, let's look at the balance sheet and liquidity. As of June 30th, 2021 and December 31st, 2020, we had working capitals of $3 million and $3.66 million respectively. including cash and cash equivalents of $461,000 and $665,000 respectively. As a result, we believe that our current cash and cash to be generated from our operations will be sufficient to meet our working capital needs for at least the next 12 months. We are not dependent upon excess to borrow loans. We plan to expand our business to implement our growth strategies by broadening our service and strengthening our position in the marketplace. Net cash used in operating activities was $348,000 for the first half of 2021 as compared to $277,000 for the same period last year. No cash spent in investing activities for the first half of 2021 compared to net cash used in investing activities of $795 for the same period of last year. Net cash provided by financing activities was $143,000 for the first half of 2021 compared to no cash spent in financing activities for the same period of last year. This concludes our first half 2021 financial results review. Next, I will share some long-term perspectives regarding our new business initiatives. Starting second half 2021, we expect to generate majority of our revenue from the crypto mining equipment sales. Since the launch of our first high-end Bitcoin miner C16, We have been active in communicating with prospective institutional clients. Increasing recognition of cryptocurrencies' growth potential by overseas professional institutions and a substantial increase in the number of institutional players in the cryptocurrency mining business provides a favorable market trend for us. We will continue to strengthen our capacities to stabilize our production capabilities and further upgrade our technology. In addition, we will accelerate our investment in R&D for the development of innovative and high-performance products. If you have any questions, please contact us through email at ir.agmprime.com. Operator, this completes our prepared remarks, and we are now open to questions. Please go ahead.
spk01: Thank you. If you would like to ask a question, please press star then 1 on your touch-tone phone. If you are using a speaker phone, we ask that you please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. Once again, ladies and gentlemen, that's star then 1 if you have a question. And as a reminder, if you would like to ask a question, please press star then 1. And ladies and gentlemen, at this time, we have reached the end of the question and answer session. Thank you for attending AGM Group's earnings conference call. This concludes our call today, and we thank you all for listening in. Have a wonderful day and goodbye.
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