Ladies and gentlemen, thank you for standing by. Welcome to NanoLabs' first half of 2026 Earnings Conference Call. During today's call, all participants will be in listen-only mode. This conference is being recorded today, Friday 28, 2026. Joining us today from NanoL labs are the company's Chairman and Chief Executive Officer, Mr. Jinping Kong, and the company chief financial officer, Mr Bing Chen. On our call today, Mr. Kong will give you an overview of the company's performance, and Mr. Chen will show the details of the Company's financial results. After that, we will conduct a question-and-answer session to take your questions. Before we continue, I would like to remind you that some information discussed on this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company�s actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the Securities and Exchange Commission. During today's call, Mr. Kong and Mr. Chen will deliver their remarks in Chinese, and the company representative will provide corresponding English translations. With that, I will now turn the call over to Mr.Kong, the company chairman and chief executive officer. Mr. Kong, please go ahead. 感谢主持人和所有今天参加Nano Labs 2026年上半年财报电话会议的朋友 在我们今天的电话會议上 我将阐述公司近期发展及公司未来的战略举措 Thank you operator and everyone for joining Nano Labs first half of 2026 conference call today On our call today, I will provide an overview of our recent development and our strategic initiatives going forward. In the first half of 2026, as the Web3 industry continued to mature, the global digital asset market underwent a profound structural evolution. Against this backdrop, we increasingly recognize the systematic opportunities arising from the deep integration of artificial intelligence and Web3. This convergence not only has the potential to reshape blockchain infrastructure, but also to unlock new applications, scenarios, and business models. Guided by this perspective, NanoLabs launched its next-generation product, the Apollo Cloud PC-A1 Mini, during the first half of the year and continued to advance the development of open cloud ecosystem, spanning smart devices, operating systems, hardware, software, and application layers. Thank you very much. 并彰显管理层对公司发展长期发展的信心 我们将继续推进于2025年10月宣布的 最高2500万美元的股份回购计划 截止2020年8月26号 共计完成317万美金的Class A普通股票回货 幢将长期稳步推进 展望未来Nano Labs将持续深耕 AI Web 3G下一代基础设施交汇带来的机遇 通过持续技术创新深化战略合作及生态系统的有序扩张 公司致力于进一步务实竞争优势 并为股东创造长期可持继价值 The company continues to employment its digital asset reserve strategy Based on a long-term assessment of the digital asset market and the broader blockchain ecosystem management has formally incorporated digital assets into the company's capital allocation framework as a strategic component. As of the date of this interim report, the company held long-term reserves of 30,000 BNB. The company believes that a prudent and disciplined approach to digital asset allocation will not only help strengthen its balance sheet, but also provide greater support for ecosystem collaboration and enhance flexibility for future strategic planning. Meanwhile, to further enhance shareholder value and demonstrate management's confidence in the company's long-term development, the company continues to advance its share repurchase program of up to US$25 million, originally announced in October 2025. As of August 26, the company had completed repurchase of Class A ordinary shares for a total consideration US$3.2 million and will continue to advance the program in a steady and disciplined manner over the long term. Looking forward, NanoLabs will continue to explore opportunities arriving from the converging of AI, Web3, and next-generation computing infrastructure. Through continuous technological innovation, deeper strategic partnerships, and ecosystem development, The company aims to strengthen its technological capabilities, expand its strategic footprint, and create sustainable long-term value for shareholders. 谢谢各位一直以来对本公司的信任和支持。 Thank you for your support and trust. Next, I will turn the call over to our Chief Financial Officer, Mr. Chen, for a closer view of our financial results. Mr. Cheng, please go ahead. 金收益下降主要由于阿波罗维西的产品销量减少 2026年上半财年毛亏损为人民币585万元或86万美元 去年同期为毛亭损人民帮1071万元 2026上半年公司的营业成本为人民费863万元 或126万美元 二零二五年同期为人民币一千八百九十九万元 主要原因是销量的减少 Thank you, Mr. Kun. Good morning, everyone. On behalf of the management team, I will provide a brief financial overview of the first half of 2026. In the first part of 2027, our net value was RMB 2.8 million, US dollar 0.4 million, compared to RMB 8.3 million in the same period last year. This decrease in net value was primarily due to the drop of sales volume of Apollo V series. We recorded a gross loss of RMB 5.8 million, U.S. dollar 0.9 million for the first half of 2026 compared to R&B 10.7 million in a same period after 2025. Cost of revenue for the first half of fiscal year 2026 is RMB 8.6 million, U.S. dollar 1.3 million compared to RMB 19 million in the same period of 2025. The decline was mainly due to the decrease in sales volume. 人民币205万美元,2025年同期营业收入为人民帮2129万元,2026年上半残年,公司的销售费用较2025同期的人民币262万元增长了17%,指人民帝306万元或45万美元。 主要原因是销收市场拓展力度的加大。 Total operating expenses for the first half of fiscal year 2026 were RMB 285.8 million, U.S. dollar 42 million, compared to the total operating income of RMB 21.3 million for the same period of 2025. Selling and marketing expenses increased by 17% to RMB 3.1 million, U.N. dollar 0.4 million. For RMB 2.6 million for the same period of 2025, this increase was mainly due to the increase in sales marketing expansion. 主要是由于专业服务费和不动产 相关税费的增加 General and administrative expenses increased by 29.5% to RMB 27.9 million US dollar 4.1 million for the first half of 2026 from RMB 21.5 million for the same period of 2025 The increase in general and administrative administrative expenses was primarily due to the increase in professional fees and real estate-related taxes. Research and development expenses increased by 39.8% to RMB 4.4 million, U.S. dollar 0.6 million for the first half of 2026. From RMB 3.2 million from the same period of 2025, the increase in research and development expenses was primarily due to the increase in service fees of system development. 变动产生的亏损为人民币2.5亿元或3677万美元。 2025年同期供应价的变种收益为人民费4861万元。 加密货币的供應价值损失的增加主要原因是2026年上半年BNB价格的下跌。 The change in fair value of cryptocurrencies was a loss of RMB 250.5 million, U.S. dollar 36.8 million for the first half of 2026 compared to a gain of RMD 48.6 million for the same period of 2025. The increase in loss from change in Fair Value of Cryptocurrencies was primarily due to the decreased BNB price during the first half of 2026. 这些变动的主要归因于2026年上半年短期投资供应价值变動产生的亏损 2026年下半财年净亏身为人民币3.2亿元或4650万美元 2025年同期亏剩为人民费1178万元 二零二六年上半财年普通股基本和稀释后的每股亏损为人民币十三点六五元或两美元 二025年同期普通国稀摄后的美股虧损為人民帝零点十三元 截至二026年六月三十日公司现金现金等价物为人民比八百九十六万元或一百三十二万美元 其次2025年12月31日该数值为人民币850万元。 Other expenses was RMB 18.3 million, U.S. dollar 2.7 million for the first half of 2026 compared to nil for the same period of 2025. The change was mainly due to the loss from change in fair value of short-term investments during the first Half of 2027. Net loss was RMB 316.7 million, U.S. dollar 46.5 million for the first half of 2026, compared to RMB 11.8 million in the same period of 2025. Basic and diluted loss per share was RMD 13.65 U.s. dollar 2 for the 1st half of 2026 compared with basic and the diluted loss per share of RMB 0.43 for the same period of 2025. As of June 30, 2026, the company had cash and cash equivalents of RMB 9.0 million US dollar 1.3 million compared to RMB 8.5 million as of December 31, 2025. 我们坚信我们未来业务发展的战略和自信能力 我们将继续发挥我们的技术优势 抓住发展机遇 推动公司的长期增长 并为股东创造更多的价值 现在我将电话交给主持人来进行问答环节 We remain confident in our business strategy and ability to execute We will continue to leverage the strength of our technology to capture development opportunities, drive long-term growth, and create additional value for our shareholders. Now I would like to turn the call over to the operator for question and answer season. Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you want to ask another question, you can ask the operator. If you would like us to cancel your request, please click star 2. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Marina Rabano. Please go ahead. Hi, good morning. Thank you for taking my question. So my question is, why has the company chosen to focus on AI-related business this year? Thank you very much. Our expansion into AI is the result of a long-term strategic evaluation rather than a short-term market trend. Over the years, we have built solid capabilities in blockchain infrastructure architecture, hardware development, ecosystem construction, and product operations, as AI and Web3 increasingly converge, we see significant opportunities to leverage this strength to develop next-generation intelligent products. The launch of the Apollo Cloud PCA1 Mini represents the first step in this strategy. Beyond supporting the Open Cloud AI agent system, the project is designed for practical applications across entertainment, content creation, and office productivity. Going forward, we will continue expanding both the hardware and software components of the OpenCloud ecosystem to support broader AI adoption. Your next question comes from Alfred Wu. Hello. My question is what are the complex future plans for digital assets reserves? Thank you. Okay. Thank you . Thank you. 同时公司也会持续关注全球数字资产发展情况, 适度优化资金组合,提升整体资本配置的稳健性以抗风险能力。 Digital assets have become an integral part of our long-term corporate strategy. We have designated BNB as our core strategic reserve asset based on our assessment of its ecosystem potential and long-time value. We intend to manage our reserve portfolio prudently by evaluating market conditions, liquidity needs, and strategic priorities before making any additional investment. At the same time, we will continue optimizing our overall digital asset allocation to enhance portfolio resilience while supporting future business development and ecosystem expansion. Okay, thank you. Your next question comes from Olivia Bennett. Hi, how are you? And my question is, what is the company long-term business development strategy? Thank you. Thank you very much. long-term strategy is built on two complementary pillars. The first is maintaining a distinct line digital asset reserve strategy, with BNB serving as a core strategic asset to support financial stability and long-time ecosystem development. The second is driving sustainable business growth through the integration of AI and Web3 technologies, leveraging the already deployed Apollo Cloud PCA1 Mini as a starting point. We plan to continue expanding the open cloud ecosystem by introducing additional projects, strengthening our software platform, and exploring new commercial applications and business models. Together, these initiatives are intended to create a differentiated technology platform capable of supporting our future growth. That's our next question. Thank you. It comes from Hannah Winslow. Okay. Good morning. Thank you so much for the presentation. And my question is, what are the company's expectations for its operating performance in the second half of 2026? What are your expectations for the performance and stock price in the second half of 2026? In the second-half of 2027, the overall economy will be surrounded by digital assets, and new products will be developed. The plan for these two aspects has been answered by the public. I will not go into details. In addition, I will inform you of the current company's recovery progress. The company's stock recovery plan for the beginning of December 2025 几次2026年6月30日,公司已经共计回购股票111万7401股,回货计划未来还将继续,管理层在未来公司长期发展,保持积极态度,公事也会持续扎实地推进各项主营业务的落地,切实保障股东。 In the second half of 2026, we will remain focused on executing our strategy of prioritize, including advancing our digital asset initiatives and expanding our next-generation AI product ecosystem. As Mr. Kong has already discussed this initiative in detail, I will instead provide an update on our capital management efforts. The company launched its share repurchase program in December 2025. As of June 30, 2026, we had repurchased an aggregate of 1,117,401 shares, and we intend to continue executing the program in accordance with its terms and prevailing market conditions. We believe the repurchase program reflects management's confidence in the company's long-term prospect. Going forward, we will continue strengthening our operating foundation, executing our strategy initiative with this supply and creating sustainable value for our shareholders. Thank you. That does conclude our question and answer session I'll now hand back for closing remarks Thank you very much for joining the conference call. If you have any questions, please contact us through email at ir.nano.cn or research our IR Council's Ascent Investor Relations at tina.x at ascent plus ir.com. Management will respond to your questions as soon as possible. We appreciate your interest and support in NanoLabs and look forward to speaking with you again next time. Thank you for attending NanoLab's first half of 2026 Earnings Conference Call. This concludes our call today, and we thank you all for listening. Goodbye.