AGM Group Holdings Inc. Q4 FY2021 earnings call

• 2021 was a year of transition to a technology company developing blockchain-oriented ASIC chips and crypto currency mining machines. Total 2021 revenues were $36.71M, with Q4 contributing $31.37M.
• Delivered 4,896 mining machines in the last three months of 2021, despite logistics congestions and semiconductor shortages.
• Fostered strategic partnership with HighSharp electronic Technology company to optimize supply chain and production. Plan to set up a joint venture with HighSharp, with AGMH expecting 60% ownership.
• Planning to relocate headquarters, research center, and manufacturing facilities to North America, evaluating options including local manufacturers and building own factory.
• 2022 focus on delivering mining machines, acquiring new customers, providing customization, and exploring new growth avenues in the crypto currency ecosystem.

In 2021, AGM Group's total revenues were $36.71 million, with $31.37 million coming from the fourth quarter. All revenues were from the product segment of crypto currency mining equipment. The fourth quarter revenues increased by $31.36 million year-over-year to $31.37 million, driven by sales of crypto currency mining machines and standardized computing equipment. The total computing power delivered in the fourth quarter was 440,000 terahash per second.

• 2022 first two quarters focus on delivering mining machines and seeking larger orders from top-tier partners.
• Difficult to project full-year revenue due to supply chain disruptions and China lockdowns, but quarter-to-quarter growth is expected to be positive as the business transitions into the new phase.

• Supply chain disruptions, including issues with procuring raw materials like semiconductor wafers.
• Impact of China lockdowns on operations and supply chain, as upstream suppliers are also affected.
• Uncertainty in projecting revenues due to external factors beyond control.

Q: How does the China lockdown affect your business in 2022? What's your projection of revenue for 2022?

A: COVID-19 lockdowns in China disrupt supply chain and manufacturing. It's nearly impossible to project full-year revenue, but quarter-to-quarter growth is expected to be positive as the business transitions.

Q: Who are your peers in China and the U.S., and what is your technical advantage versus your key competitors?

A: Peers include certain listed companies. Technical advantage includes being one of the first to mass produce the C16 machine with 113 terahash per second hash rate, and being nimble to adapt to market changes.

Q: What's your view of the other miners that use clean energy or produce energy efficient chips? Any plan of producing energy efficient chips yourselves?

A: Positive view on miners using clean energy. Actively investing in producing energy-efficient chips, with the KOI Miner C16 130 terahash per second being energy-efficient, and aiming to continuously improve in this area.

Q: How do you think the shift to North America is going to affect current supply chain concerns and order fulfillment?

A: Shifting to North America brings closer proximity to key customers, resolving logistics issues. There may be increased costs but potential benefits offset them. Options like local manufacturers or building own factory are being evaluated.

Q: Do you expect a similar amount of R&D costs in 2022, or do you expect that number to increase overtime?

A: R&D costs may increase as the company integrates with HighSharp and invests in future iterations of products, leveraging HighSharp's expertise.