Canaan Inc.

Ladies and gentlemen, thank you for standing by and welcome to Canaan Inc's second quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remarks, we'll have a question and answer session. Please note that this event is being recorded. Now I'd like to hand the conference over to your speaker host today, Mr. Clark Soucy, Investor Relations Director of the company. Please go ahead, Clark.

Thank you. Hello, everyone, and welcome to our 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. Nangong Zhang, and our CFO, Mr. Jincheng James. In addition, Mr. Edward Liu, our SVP, Mr. Leo Wang, IR Senior Director, and Ms. Shi Zhang, IR Manager. will also be available during the question and answer session. Mr. Chong will start the call by providing an overview of the company and performance highlights for the quarter. Mr. Chong will then provide details on the company's operating and financial results for the period before we open up the call for your questions. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release. Today's call will include forward-looking statements. These statements include, but are not limited to, our outlook for the company and statements that estimate or project future results of operations or the performance of the company. These statements speak only as of the date hereof, and the company assumes no obligation to revise any forward-looking statements that may be made in today's press release, call, or webcast, except as required by law. These statements do not guarantee future performance and are subject to risks uncertainties, and assumptions. Please refer to the press release and the risk factors and documents we file with Securities and Exchange Commission, including our most recent annual report on Form 20F, for information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, during today's call and webcast, we will discuss both GAAP financial measures and certain non-GAAP financial measures. which we believe are useful as supplemental measures of the company's performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release, which is posted on the company's website. With that, I will now turn the call over to our chairman and CEO, Mr. Nangong Zhang. Please go ahead.

the mining income of Bitcoin miners and the demand for mining machines have been further impacted. The power-saving power has also dropped. The company's main office is in the domestic city. The recurrence of the epidemic and the large-scale lockdown and the better coordination of measures have brought a certain negative impact on the operation and management activities of our record. In the context of the negative impact of the above, our team is facing difficulties. In the effort to ensure that employees' material supply and During the second quarter of 2022, under the combined influence of two rounds of interest hikes by the Federal Reserve,