BEIJING,
First Quarter 2022 Operating and Financial Highlights
Total computing power sold was 4.3 million Thash/s, representing an increase of 119.1% from 2.0 million Thash/s in the same period of 2021.
Revenues were
Gross profit was
Net income was
Non-GAAP adjusted net income was
Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, commented, "We kicked off the year 2022 in an increasingly unpredictable environment due to macroeconomic uncertainties and logistic disruptions caused by the COVID-19 pandemic. While confronting these challenges, we remained steadfast in our commitment to strengthening our partnerships with clients and expanding our global coverage. As a result, our computing power sold in the first quarter reached 4.3 million Thash/s, representing an increase of 119.1% from 2.0 million Thash/s in the same period of 2021. As we continued to develop globally, we established an international headquarters in
Mr.
First Quarter 2022 Financial Results
Revenues in the first quarter of 2022 were
Cost of revenues in the first quarter of 2022 was
Gross profit in the first quarter of 2022 was
Total operating expenses in the first quarter of 2022 were
Research and development expenses in the first quarter of 2022 were
Sales and marketing expenses in the first quarter of 2022 were
General and administrative expenses in the first quarter of 2022 were
Income from operations in the first quarter of 2022 was
Net income attributable to ordinary shareholders in the first quarter of 2022 was
Non-GAAP adjusted net income in the first quarter of 2022 was
Foreign currency translation adjustment, net of nil tax, in the first quarter of 2022 was a loss of
Basic net earnings per American depositary share ("ADS") in the first quarter of 2022 was
Diluted net earnings per ADS in the first quarter of 2022 was
As of
Contract liabilities as of
As of
Shares Outstanding
As of
Recent Developments
The Impact of the Recent COVID-19 Quarantine Control
Recently, local governments in a number of cities in
The Company actively cooperates with the local government for pandemic control and has taken measures to ensure the health and safety of its employees in the affected region. Since the end of March, the Company has been gradually resuming production and delivery under the guidance of the local government. As of the date of this press release, the Company has completed the delivery of most of the delayed orders from the first quarter.
The Company is closely monitoring the evolvement of the COVID-19 pandemic situation and may adjust its operations further according to the quarantine requirements by the local government.
The Company's Share Repurchase Update
In the first quarter of 2022, the Company repurchased a total of 2.1 million ADSs with an aggregate value of
On
The At-the-Market ("ATM") Offering
On
The Company does not currently expect to sell any ADS under the ATM program at this point in time. However, the program has been established as a flexible mechanism for the Company to access public capital markets in the future. The timing and extent of the use of the ATM program will be at the discretion of the Company, provided that the Company has satisfied certain obligations set forth in the ATM agreement, and any equity offerings will be disclosed on a quarterly basis.
The Company will prioritize shareholder interests and the general market when considering the execution of its financing plans and will make proactive adjustments to accommodate market conditions.
Business Outlook
For the second quarter of 2022, the Company expects total net revenues to be in the range of
Conference Call Information
The Company's management team will hold a Direct Event conference call at 8:00 A.M. U.
Event Title:
Registration Link: http://apac.directeventreg.com/registration/event/4736536
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique access PIN, which can be used to join the conference call.
A replay of the conference call will be accessible through
International: +61-2-8199-0299
United States: +1-646-254-3697
Replay PIN: 4736536
A live and archived webcast of the conference call will also be available at the Company's investor relations website at investor.canaan-creative.com.
About
Established in 2013, Canaan (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. The company's vision is "super computing is what we do, social enrichment is why we do it." Canaan has a rich experience in chip design and streamlined production in the ASIC field. In 2013, it released and mass produced its first ASIC Bitcoin mining machine. In 2018, Canaan released the world's first 7nm ASIC chip, providing energy efficient computing equipment to the cryptocurrency mining industry. In the same year, Canaan released the world's first RISC-V architecture commercial edge AI chip, further harnessing the potential of ASIC technology in the field of high-performance computing and artificial intelligence.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains forward−looking statements. These statements are made under the "safe harbor" provisions of the
Use of Non-GAAP Financial Measures
In evaluating Canaan's business, the Company uses non-GAAP measures, such as adjusted net income, as supplemental measures to review and assess its operating performance. The Company defines adjusted net income as net income excluding sharebased compensation expenses and change in fair value of warrant liability. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under
Investor Relations Contact
Ms.
Email: IR@canaan-creative.com
Tel: +1 (347) 396-3281
Email: canaan.ir@icrinc.com
|
|||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
|||
(all amounts in thousands of RMB, except share and per share data, or as otherwise noted) |
|||
As of |
As of |
||
2021 |
2022 |
2022 |
|
RMB |
RMB |
US$ |
|
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
2,684,342 |
2,643,183 |
416,952 |
Restricted cash |
47,362 |
47,412 |
7,479 |
Accounts receivable, net |
367 |
1 |
- |
Inventories |
812,363 |
1,193,304 |
188,239 |
Prepayments and other current assets |
1,729,027 |
1,890,192 |
298,169 |
Total current assets |
5,273,461 |
5,774,092 |
910,839 |
Non-current assets: |
|||
Cryptocurrency |
20,310 |
45,256 |
7,139 |
Property, equipment and software |
185,566 |
313,022 |
49,378 |
Right-of-use assets, net |
30,920 |
27,552 |
4,346 |
Deferred tax assets |
99,044 |
66,750 |
10,530 |
Other non-current assets |
2,956 |
3,840 |
606 |
Non-current financial investment |
20,000 |
20,000 |
3,155 |
Total non-current assets |
358,796 |
476,420 |
75,154 |
Total assets |
5,632,257 |
6,250,512 |
985,993 |
LIABILITIES, AND SHAREHOLDERS' EQUITY |
|||
Current liabilities |
|||
Accounts payable |
143,441 |
101,175 |
15,960 |
Contract liabilities |
1,340,731 |
1,769,897 |
279,194 |
Income tax payable |
148,719 |
151,651 |
23,922 |
Accrued liabilities and other current liabilities |
437,394 |
157,382 |
24,826 |
Lease liabilities, current |
14,819 |
14,713 |
2,321 |
Total current liabilities |
2,085,104 |
2,194,818 |
346,223 |
Non-current liabilities: |
|||
Lease liabilities, non-current |
16,292 |
13,323 |
2,102 |
Warrant liability |
66,347 |
66,505 |
10,491 |
Other non-current liabilities |
5,824 |
5,305 |
837 |
Total liabilities |
2,173,567 |
2,279,951 |
359,653 |
Shareholders' equity: |
|||
Ordinary shares ( |
1 |
1 |
- |
Subscriptions receivable from shareholders |
(1) |
(1) |
- |
|
(231,281) |
(193,029) |
(30,450) |
Additional paid-in capital |
2,891,134 |
2,992,482 |
472,052 |
Statutory reserves |
97,420 |
97,420 |
15,368 |
Accumulated other comprehensive loss |
(101,925) |
(106,715) |
(16,834) |
Retained earnings |
803,342 |
1,180,403 |
186,204 |
Total shareholders' equity |
3,458,690 |
3,970,561 |
626,340 |
Total liabilities and shareholders' equity |
5,632,257 |
6,250,512 |
985,993 |
|
|||
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||
(all amounts in thousands of RMB, except share and per share data, or as otherwise noted) |
|||
For the Three Months Ended |
|||
|
|
|
|
RMB |
RMB |
US$ |
|
Revenues |
402,774 |
1,356,113 |
213,922 |
Cost of revenues |
(208,556) |
(526,319) |
(83,025) |
Gross profit |
194,218 |
829,794 |
130,897 |
Operating expenses: |
|||
Research and development expenses |
(58,161) |
(101,155) |
(15,957) |
Sales and marketing expenses |
(6,298) |
(19,966) |
(3,150) |
General and administrative expenses |
(143,426) |
(130,407) |
(20,571) |
Total operating expenses |
(207,885) |
(251,528) |
(39,678) |
Income (loss) from operations |
(13,667) |
578,266 |
91,219 |
Interest income |
430 |
3,244 |
512 |
Change in fair value of warrant liability |
- |
(445) |
(70) |
Investment income |
184 |
- |
- |
Interest expense |
(231) |
- |
- |
Foreign exchange gains, net |
13,008 |
913 |
144 |
Other income, net |
1,489 |
423 |
67 |
Income before income tax expenses |
1,213 |
582,401 |
91,872 |
Income tax expense |
(9) |
(140,799) |
(22,210) |
Net income |
1,204 |
441,602 |
69,662 |
Foreign currency translation adjustment, net of nil tax |
2,357 |
(4,789) |
(755) |
Total comprehensive income |
3,561 |
436,813 |
68,907 |
Weighted average number of shares used in per |
|||
— Basic |
2,349,277,761 |
2,580,294,054 |
2,580,294,054 |
— Diluted |
2,423,489,527 |
2,582,735,151 |
2,582,735,151 |
Net earnings per Class A and Class B ordinary |
|||
— Basic |
0.05 |
17.11 |
2.70 |
— Diluted |
0.05 |
17.10 |
2.70 |
Share-based compensation expenses were included in: |
|||
Cost of revenues |
177 |
- |
- |
Research and development expenses |
24,059 |
19,962 |
3,149 |
Sales and marketing expenses |
2,980 |
2,118 |
334 |
General and administrative expenses |
114,760 |
79,267 |
12,504 |
The table below sets forth a reconciliation of net income to non-GAAP adjusted net income for the period indicated:
For the Three Months Ended |
|||
|
|
|
|
RMB |
RMB |
US$ |
|
Net income |
1,204 |
441,602 |
69,662 |
Share-based compensation expenses |
141,976 |
101,347 |
15,987 |
Change in fair value of warrant liability |
- |
445 |
70 |
Non-GAAP adjusted net income |
143,180 |
543,394 |
85,719 |
View original content:https://www.prnewswire.com/news-releases/canaan-inc-reports-unaudited-first-quarter-2022-financial-results-301550976.html
SOURCE