BEIJING,
Fourth Quarter 2021 Operating and Financial Highlights
Total computing power sold was 7.7 million Thash/s, compared to 0.2 million Thash/s in the same period of 2020, and up 15.5% from 6.7 million Thash/s in the third quarter of 2021, setting a new record. The robust year-over-year and sequential increases were mainly driven by the solid market demand and the responsive delivery of Bitcoin mining machines.
As of
Total net revenues were
Gross profit was
Net income was
Non-GAAP adjusted net income was
Full Year 2021 Operating and Financial Highlights
Total computing power sold was 22.3 million Thash/s, representing a year-over-year increase of 238.5% from 6.6 million Thash/s in 2020.
Total net revenues increased to
Gross profit increased to
Net income was
Non-GAAP adjusted net income was
Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, commented, "Against the backdrop of Bitcoin price fluctuations and challenging industry dynamics, we made encouraging progress in our operations and finished the year with a strong fourth-quarter performance. Total computing power sold reached 7.7 million Thash/s in the quarter, up 15.5% sequentially, as we sustained the momentum of business development across a diversified global market and solidified our presence in key geographic areas. In addition, our Bitcoin mining business was enhanced by the delivery of additional computing power in the fourth quarter. We also continuously developed our AI business, expanding our partner base in a broader ecosystem. Looking ahead to the year 2022, we will keep carrying out our growth strategies through proactive investment in our R&D efforts, solid execution in global business development, agile operation to keep pace with industry dynamics, and prudent deployment in our mining operations. By leveraging our acumen, expertise, and our extensive experience in the market, we will continue to capitalize on developing opportunities in the industry."
Mr.
Fourth Quarter 2021 Financial Results
Total net revenues in the fourth quarter of 2021 increased to
Cost of revenues in the fourth quarter of 2021 was
Gross profit in the fourth quarter of 2021 was
Total operating expenses in the fourth quarter of 2021 were
Research and development expenses in the fourth quarter of 2021 were
Sales and marketing expenses in the fourth quarter of 2021 were
General and administrative expenses in the fourth quarter of 2021 were
Income from operations in the fourth quarter of 2021 was
Net income attributable to ordinary shareholders in the fourth quarter of 2021 was
Non-GAAP adjusted net income in the fourth quarter of 2021 was
Foreign currency translation adjustment, net of nil tax, was a loss of
Basic net earnings per American depositary share ("ADS") in the fourth quarter of 2021 was
Diluted net earnings per ADS in the fourth quarter of 2021 was
Full Year 2021 Financial Results
Total net revenues in the full year of 2021 increased to
Cost of revenues in the full year of 2021 increased to
Gross profit in the full year of 2021 increased to
Total operating expenses in the full year of 2021 increased to
Research and development expenses in the full year of 2021 increased by 137.7% to
Sales and marketing expenses in the full year of 2021 increased to
General and administrative expenses in the full year of 2021 increased to
Income from operations in the full year of 2021 was
Net income attributable to ordinary shareholders in the full year of 2021 was
Non-GAAP adjusted net income in the full year of 2021 was
Basic net income per ADS in the full year of 2021 was
Diluted net income per ADS in the full year of 2021 was
As of
Contract liabilities as of
As of
Shares Outstanding
As of
Recent Developments
The Completion of the Company's Share Repurchase Program
As of the date of this announcement, the Company has completed its up to
The early completion of the share buyback program demonstrates the Company's commitment to driving shareholder value.
Management Changes
On
Business Outlook
The Company expects its total net revenues for the first quarter of 2022 to be in the range of
Conference Call Information
The Company's management team will hold a Direct Event conference call on
Event Title: |
|
Registration Link: |
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 |
|
+1-646-254-3697 |
|
+852-3051-2780 |
Replay PIN: |
6807069 |
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 NonGAAP Financial Measures
In evaluating Canaan's business, the Company uses non-GAAP measures, such as adjusted net (loss)/income, as supplemental measures to review and assess its operating performance. The Company defines adjusted net (loss)/income as net (loss)/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 |
|||
2020 |
2021 |
2021 |
|
RMB |
RMB |
US$ |
|
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
391,310 |
2,684,342 |
421,232 |
Restricted cash |
4,494 |
47,362 |
7,432 |
Short-term investments |
62,386 |
- |
- |
Accounts receivable |
7,128 |
367 |
58 |
Inventories |
225,522 |
812,363 |
127,477 |
Prepayments and other current assets |
316,366 |
1,729,027 |
271,323 |
Total current assets |
1,007,206 |
5,273,461 |
827,522 |
Non-current assets: |
|||
Cryptocurrencies |
- |
20,310 |
3,187 |
Property, equipment and software |
12,193 |
185,566 |
29,119 |
Right-of-use assets, net |
14,422 |
30,920 |
4,852 |
Other investments |
- |
20,000 |
3,138 |
Deferred tax assets |
- |
99,044 |
15,542 |
Other non-current assets |
2,530 |
2,956 |
464 |
Non-current financial investment |
25 |
- |
- |
Total non-current assets |
29,170 |
358,796 |
56,302 |
Total assets |
1,036,376 |
5,632,257 |
883,824 |
LIABILITIES, AND SHAREHOLDERS' EQUITY |
|||
Current liabilities |
|||
Short-term debts |
34,754 |
- |
- |
Accounts payable |
37,407 |
143,441 |
22,509 |
Notes payable |
13,963 |
- |
- |
Contract liabilities |
430,388 |
1,340,731 |
210,390 |
Income tax payable |
- |
148,719 |
23,337 |
Accrued liabilities and other current liabilities |
63,343 |
437,394 |
68,637 |
Lease liabilities, current |
12,621 |
14,819 |
2,325 |
Total current liabilities |
592,476 |
2,085,104 |
327,198 |
Non-current liabilities: |
|||
Lease liabilities, non-current |
3,322 |
16,292 |
2,557 |
Warrant liability |
- |
66,347 |
10,411 |
Other non-current liabilities |
8,020 |
5,824 |
914 |
Total non-current liabilities |
11,342 |
88,463 |
13,882 |
Total liabilities |
603,818 |
2,173,567 |
341,080 |
Shareholders' equity: |
|||
Ordinary shares ( |
1 |
1 |
- |
Subscriptions receivable from shareholders |
(1) |
(1) |
- |
|
(23,915) |
(231,281) |
(36,293) |
Additional paid-in capital |
1,634,619 |
2,889,980 |
453,501 |
Statutory reserves |
97,307 |
97,420 |
15,287 |
Accumulated other comprehensive loss |
(79,780) |
(101,925) |
(15,994) |
Retained earnings (accumulated deficit) |
(1,195,673) |
804,496 |
126,243 |
Total shareholders' equity |
432,558 |
3,458,690 |
542,744 |
Total liabilities and shareholders' equity |
1,036,376 |
5,632,257 |
883,824 |
|
||||
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME |
||||
(all amounts in thousands of RMB, except share and per share data, or as otherwise noted) |
||||
For the Three Months Ended |
||||
|
2021* |
|
|
|
RMB |
RMB |
RMB |
US$ |
|
Net revenues |
||||
Products revenue |
37,838 |
1,311,992 |
2,168,953 |
340,356 |
Service revenue |
68 |
- |
- |
- |
Mining income |
- |
5,624 |
15,364 |
2,411 |
Other revenues |
340 |
- |
238 |
37 |
Total net revenues |
38,246 |
1,317,616 |
2,184,555 |
342,804 |
Cost of revenues |
(29,155) |
(575,925) |
(697,606) |
(109,470) |
Gross profit |
9,091 |
741,691 |
1,486,949 |
233,334 |
Operating expenses: |
||||
Research and development expenses |
(40,057) |
(92,763) |
(112,017) |
(17,578) |
Sales and marketing expenses |
(6,147) |
(37,597) |
(30,712) |
(4,819) |
General and administrative expenses |
(33,887) |
(148,053) |
(130,995) |
(20,556) |
Total operating expenses |
(80,091) |
(278,413) |
(273,724) |
(42,953) |
(Loss)/income from operations |
(71,000) |
463,278 |
1,213,225 |
190,381 |
Interest income |
173 |
2,917 |
1,986 |
312 |
Change in fair value of warrant liability |
- |
90,354 |
22,148 |
3,476 |
Investment income |
895 |
- |
- |
- |
Interest expense |
(98) |
- |
246 |
39 |
Foreign exchange gains, net |
33 |
1,248 |
4,190 |
658 |
Other income/(expenses), net |
(2,054) |
(207) |
4,492 |
705 |
(Loss)/income before income tax expenses |
(72,051) |
557,590 |
1,246,287 |
195,571 |
Income tax expense |
96 |
(4) |
(49,758) |
(7,808) |
Net (loss)/income |
(71,955) |
557,586 |
1,196,529 |
187,763 |
Foreign currency translation adjustment, net of nil tax |
(15,238) |
5,669 |
(19,930) |
(3,127) |
Total comprehensive (loss)/income |
(87,193) |
563,255 |
1,176,599 |
184,636 |
Weighted average number of shares used in per share |
||||
— Basic |
2,332,549,534 |
2,615,416,505 |
2,602,142,223 |
2,602,142,223 |
— Diluted |
2,332,549,534 |
2,652,280,752 |
2,635,116,905 |
2,635,116,905 |
Net (loss)/earning per share (cent per share) |
||||
— Basic |
(3.08) |
21.32 |
45.98 |
7.22 |
— Diluted |
(3.08) |
21.02 |
45.41 |
7.13 |
Share-based compensation expenses were included in: |
||||
Research and development expenses |
(1,625) |
25,911 |
19,614 |
3,078 |
Sales and marketing expenses |
8 |
1,248 |
2,123 |
333 |
General and administrative expenses |
457 |
93,157 |
54,628 |
8,572 |
*Unaudited consolidated statements of comprehensive income for the three months ended |
The table below sets forth a reconciliation of net (loss)/income to non-GAAP adjusted net (loss)/income for the period indicated:
For the Three Months Ended |
||||
|
2021 |
|
|
|
RMB |
RMB |
RMB |
US$ |
|
Net (loss)/income |
(71,955) |
557,586 |
1,196,529 |
187,763 |
Share-based compensation expenses |
(1,160) |
120,316 |
76,365 |
11,983 |
Change in fair value of warrant liability |
- |
(90,354) |
(22,148) |
(3,476) |
Non-GAAP adjusted net (loss)/income |
(73,115) |
587,548 |
1,250,746 |
196,270 |
|
|||
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME |
|||
(all amounts in thousands of RMB, except share and per share data, or as otherwise noted) |
|||
For the Years Ended |
|||
|
|
|
|
RMB |
RMB |
US$ |
|
Net revenues |
|||
Products revenue |
427,522 |
4,956,936 |
777,851 |
Leases revenue |
18,963 |
7,556 |
1,186 |
Service revenue |
300 |
224 |
35 |
Mining income |
- |
21,643 |
3,396 |
Other revenues |
901 |
347 |
54 |
Total net revenues |
447,686 |
4,986,706 |
782,522 |
Cost of revenues |
(409,922) |
(2,135,961) |
(335,179) |
Gross profit |
37,764 |
2,850,745 |
447,343 |
Operating expenses: |
|||
Research and development expenses |
(140,041) |
(332,846) |
(52,231) |
Sales and marketing expenses |
(19,980) |
(100,467) |
(15,765) |
General and administrative expenses |
(131,624) |
(589,107) |
(92,444) |
Total operating expenses |
(291,645) |
(1,022,420) |
(160,440) |
(Loss)/income from operations |
(253,881) |
1,828,325 |
286,903 |
Interest income |
3,153 |
7,310 |
1,147 |
Change in fair value of warrant liability |
- |
190,178 |
29,843 |
Investment income |
5,844 |
277 |
43 |
Interest expense |
(3,587) |
- |
- |
Foreign exchange gains, net |
2,419 |
17,890 |
2,807 |
Other income, net |
30,958 |
6,410 |
1,006 |
(Loss)/income before income tax expenses |
(215,094) |
2,050,390 |
321,749 |
Income tax expense |
- |
(50,108) |
(7,863) |
Net (loss)/income |
(215,094) |
2,000,282 |
313,886 |
Foreign currency translation adjustment, net of nil tax |
(24,238) |
(22,145) |
(3,475) |
Total comprehensive (loss)/income |
(239,332) |
1,978,137 |
310,411 |
Weighted average number of shares used in per share |
|||
— Basic |
2,345,703,779 |
2,521,667,815 |
2,521,667,815 |
— Diluted |
2,345,703,779 |
2,557,878,876 |
2,557,878,876 |
Net (loss)/earning per share (cent per share) |
|||
— Basic |
(9.17) |
79.32 |
12.45 |
— Diluted |
(9.17) |
78.20 |
12.27 |
Share-based compensation expenses were included in: |
|||
Cost of revenues |
- |
269 |
42 |
Research and development expenses |
652 |
99,173 |
15,562 |
Sales and marketing expenses |
41 |
8,240 |
1,293 |
General and administrative expenses |
2,257 |
383,780 |
60,223 |
The table below sets forth a reconciliation of net (loss)/income to non-GAAP adjusted net (loss)/income for the years indicated:
For the Years Ended |
|||
|
|
|
|
RMB |
RMB |
US$ |
|
Net (loss)/income |
(215,094) |
2,000,282 |
313,886 |
Share-based compensation expenses |
2,950 |
491,462 |
77,120 |
Change in fair value of warrant liability |
- |
(190,178) |
(29,843) |
Non-GAAP adjusted net (loss)/income |
(212,144) |
2,301,566 |
361,163 |
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