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    Joe Flynn • Compass Point Research & Trading, LLC

    Joe Flynn's questions to Canaan Inc (CAN) leadership

    Joe Flynn's questions to Canaan Inc (CAN) leadership • Q1 2025

    Question

    Joe Flynn questioned the justification for committing over $400 million to wafer costs given the uncertain macro environment and slowing demand from U.S. customers, asking how the company balances these large prepayments with market realities.

    Answer

    CEO Nangeng Zhang explained that the company maintains strong long-term foundry partnerships and that current wafer inventory is sufficient through Q3, and possibly Q4. He stated that if tariff uncertainty resolves and the market recovers, a supply shortage is possible. Therefore, maintaining this supply line provides strategic flexibility to meet a potential rapid rebound in demand.

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    Joe Flynn's questions to Canaan Inc (CAN) leadership • Q4 2024

    Question

    Joe Flynn asked for details on the A15 production ramp, specifically how much was covered by North American deposits and the strategy for managing liquidity risk with long lead times. He also inquired about R&D dedication to RISC-V ASICs and potential competition in the China AI market.

    Answer

    CEO Nangeng Zhang explained that A15 orders, mostly from North America, are largely secured with 50% prepayments and will be delivered by May. He noted the company maintains a 3-4 month production pipeline to manage lead times. On the AI question, Zhang described it as 'sensitive' and stated the company is being 'very, very cautious' about AI development due to the regulatory environment, positioning its U.S. infrastructure build-out as a long-term hedge to pivot if needed.

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