- Achieves Record-high Bitcoin Mining Computing Power of 3.8EH/s Installed as of February-end 2023 -
BEIJING,
Fourth Quarter 2022 Operating and Financial Highlights
Total computing power sold was 1.9 million Thash/s, representing a decrease of 45.8% from 3.5 million Thash/s in the third quarter of 2022 and a decrease of 75.8% from 7.7 million Thash/s in the same period of 2021.
Revenues were
Mining revenue was
Full Year 2022 Operating and Financial Highlights
Total computing power sold was 15.1 million Thash/s, representing a year-over-year decrease of 32.4% from 22.3 million Thash/s in 2021.
Revenues were
Mining revenue was
Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, commented, "We went through a tough fourth quarter as the further sinking bitcoin price during the quarter led to lackluster market demand for mining machines as we expected. Amidst the hard time, we delivered topline results of
"Despite the challenging market environment, 2022 was a notable year of milestones for our company. We expanded globally and established overseas supply chains and headquarters in
Mr.
*Note: |
1. Installed |
Fourth Quarter 2022 Financial Results
Revenues in the fourth quarter of 2022 were
Products revenue in the fourth quarter of 2022 was
Mining revenue in the fourth quarter of 2022 was
Cost of revenues in the fourth quarter of 2022 was
Gross loss in the fourth quarter of 2022 was
Total operating expenses in the fourth quarter of 2022 were
Research and development expenses in the fourth quarter of 2022 were
Sales and marketing expenses in the fourth quarter of 2022 were
General and administrative expenses in the fourth quarter of 2022 were
Loss from operations in the fourth quarter of 2022 was
Non-GAAP loss from operations in the fourth quarter of 2022 was
Impairment on cryptocurrency in the fourth quarter of 2022 was
Foreign exchange gains, net in the fourth quarter of 2022 was
Net loss in the fourth quarter of 2022 was
Non-GAAP adjusted net loss in the fourth quarter of 2022 was
Foreign currency translation adjustment, net of nil tax, in the fourth quarter of 2022 was a loss of
Basic net loss per American depositary share ("ADS") in the fourth quarter of 2022 was
Diluted net loss per ADS in the fourth quarter of 2022 was
Full Year 2022 Financial Results
Revenues in the full year of 2022 decreased to
Products revenue in the full year of 2022 decreased to
Mining revenue in the full year of 2022 increased to
Cost of revenues in the full year of 2022 increased to
Gross profit in the full year of 2022 decreased to
Total operating expenses in the full year of 2022 increased to
Research and development expenses in the full year of 2022 increased by 64.2% to
Sales and marketing expenses in the full year of 2022 decreased to
General and administrative expenses in the full year of 2022 decreased to
Income from operations in the full year of 2022 was
Non-GAAP income from operations in the full year of 2022 was
Impairment on cryptocurrency in the full year of 2022 was
Foreign currency translation adjustment, net of nil tax, in the full year 2022 was an income of
Net income attributable to ordinary shareholders in the full year of 2022 was
Non-GAAP adjusted net income in the full year of 2022 was
Basic net earnings per ADS in the full year of 2022 was
Diluted net earnings per ADS in the full year of 2022 was
As of
As of
Shares Outstanding
As of
Recent Developments
Development of the Company's mining business
The Company has been developing the bitcoin mining business as the second engine to capitalize on the bitcoin ecosystem and synergize with its bitcoin mining machines sales. As of the end of
The Company's Share Repurchase Update
On
From
The At-the-Market ("ATM") Offering
The Company has filed a prospectus supplement, dated
The Company expects the ATM program to be 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. The ADSs will be offered through
Business Outlook
For the first quarter of 2023, the Company expects total net revenues to be approximately
Conference Call Information
The Company's management team will hold a conference call at 8:00 A.M. U.
Event Title: Canaan Inc. Fourth Quarter and Full Year 2022 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BIf997ef77282c4bc59b8d6ed4a449cf39
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 and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference call will 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/(loss), as supplemental measures to review and assess its operating performance. The Company defines adjusted net income/(loss) as net income/(loss) excluding share-based 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 CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(all amounts in thousands, 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 |
707,261 |
102,543 |
Restricted cash |
47,362 |
- |
- |
Accounts receivable, net |
367 |
- |
- |
Inventories |
812,363 |
1,512,074 |
219,230 |
Prepayments and other current assets |
1,729,027 |
1,775,295 |
257,394 |
Total current assets |
5,273,461 |
3,994,630 |
579,167 |
Non-current assets: |
|||
Cryptocurrency |
20,310 |
87,273 |
12,653 |
Property, equipment and software |
185,566 |
597,988 |
86,700 |
Right-of-use assets, net |
30,920 |
29,600 |
4,292 |
Deferred tax assets |
99,044 |
123,150 |
17,855 |
Other non-current assets |
2,956 |
17,437 |
2,528 |
Non-current financial investment |
20,000 |
20,000 |
2,900 |
Total non-current assets |
358,796 |
875,448 |
126,928 |
Total assets |
5,632,257 |
4,870,078 |
706,095 |
LIABILITIES, AND SHAREHOLDERS' EQUITY |
|||
Current liabilities |
|||
Accounts payable |
143,441 |
116,333 |
16,867 |
Contract liabilities |
1,340,731 |
4,613 |
669 |
Income tax payable |
148,719 |
50,340 |
7,299 |
Accrued liabilities and other current liabilities |
437,394 |
260,857 |
37,818 |
Lease liabilities, current |
14,819 |
16,118 |
2,337 |
Total current liabilities |
2,085,104 |
448,261 |
64,990 |
Non-current liabilities: |
|||
Lease liabilities, non-current |
16,292 |
10,039 |
1,456 |
Warrant liability |
66,347 |
- |
- |
Other non-current liabilities |
5,824 |
4,163 |
604 |
Total liabilities |
2,173,567 |
462,463 |
67,050 |
Shareholders' equity: |
|||
Ordinary shares ( |
1 |
1 |
- |
Subscriptions receivable from shareholders |
(1) |
(1) |
- |
|
(231,281) |
(380,538) |
(55,173) |
Additional paid-in capital |
2,891,134 |
3,298,531 |
478,242 |
Statutory reserves |
97,420 |
102,586 |
14,874 |
Accumulated other comprehensive loss |
(101,925) |
(4,844) |
(702) |
Retained earnings |
803,342 |
1,391,880 |
201,804 |
Total shareholders' equity |
3,458,690 |
4,407,615 |
639,045 |
Total liabilities and shareholders' equity |
5,632,257 |
4,870,078 |
706,095 |
|
||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
||||
(all amounts in thousands of RMB, except share and per share data, or as otherwise noted) |
||||
For the Three Months Ended |
||||
|
|
|
|
|
RMB |
RMB |
RMB |
US$ |
|
Revenues |
||||
Products revenue |
2,168,908 |
915,992 |
319,558 |
46,332 |
Mining revenue |
15,409 |
62,018 |
72,150 |
10,461 |
Other revenues |
238 |
197 |
218 |
32 |
Total revenues |
2,184,555 |
978,207 |
391,926 |
56,825 |
Cost of revenues |
(697,606) |
(758,871) |
(622,831) |
(90,302) |
Gross profit/(loss) |
1,486,949 |
219,336 |
(230,905) |
(33,477) |
Operating expenses: |
||||
Research and development expenses |
(112,017) |
(118,084) |
(223,479) |
(32,401) |
Sales and marketing expenses |
(30,712) |
(14,249) |
(7,629) |
(1,106) |
General and administrative expenses |
(130,995) |
(142,690) |
(162,375) |
(23,542) |
Total operating expenses |
(273,724) |
(275,023) |
(393,483) |
(57,049) |
Income/(loss) from operations |
1,213,225 |
(55,687) |
(624,388) |
(90,526) |
Interest income |
1,986 |
2,948 |
7,670 |
1,112 |
Change in fair value of warrant liability |
22,148 |
- |
- |
- |
Interest expense |
246 |
- |
- |
- |
Impairment on cryptocurrency |
- |
(11,290) |
(11,276) |
(1,635) |
Foreign exchange gains, net |
4,190 |
101,197 |
26,583 |
3,854 |
Other income, net |
4,492 |
1,719 |
14,037 |
2,035 |
Income/(loss) before income tax expenses |
1,246,287 |
38,887 |
(587,374) |
(85,160) |
Income tax (expense)/benefit |
(49,758) |
7,173 |
149,042 |
21,609 |
Net income/(loss) |
1,196,529 |
46,060 |
(438,332) |
(63,551) |
Foreign currency translation adjustment, net of |
(19,930) |
94,008 |
(47,226) |
(6,847) |
Total comprehensive income/(loss) |
1,176,599 |
140,068 |
(485,558) |
(70,398) |
Weighted average number of shares used in |
||||
— Basic |
2,602,142,223 |
2,560,879,920 |
2,515,283,126 |
2,515,283,126 |
— Diluted |
2,635,116,905 |
2,580,542,499 |
2,515,283,126 |
2,515,283,126 |
Net earnings/(loss) per share (cent per share) |
||||
— Basic |
45.98 |
1.80 |
(17.43) |
(2.53) |
— Diluted |
45.41 |
1.78 |
(17.43) |
(2.53) |
Share-based compensation expenses were included in: |
||||
Cost of revenues |
- |
481 |
405 |
59 |
Research and development expenses |
19,614 |
14,484 |
14,138 |
2,050 |
Sales and marketing expenses |
2,123 |
5,370 |
4,383 |
635 |
General and administrative expenses |
54,627 |
84,888 |
77,622 |
11,254 |
The table below sets forth a reconciliation of net income/(loss) to non-GAAP adjusted net income/(loss) for the period indicated: |
||||
For the Three Months Ended |
||||
|
|
|
|
|
RMB |
RMB |
RMB |
US$ |
|
Net income/(loss) |
1,196,529 |
46,060 |
(438,332) |
(63,551) |
Share-based compensation expenses |
76,364 |
105,223 |
96,548 |
13,998 |
Change in fair value of warrant liability |
(22,148) |
- |
- |
- |
Non-GAAP adjusted net income/(loss) |
1,250,745 |
151,283 |
(341,784) |
(49,553) |
|
|||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||
(all amounts in thousands of RMB, except share and per share data, or as otherwise noted) |
|||
For the Years Ended |
|||
|
|
|
|
RMB |
RMB |
US$ |
|
Revenues |
|||
Products revenue |
4,956,891 |
4,159,563 |
603,080 |
Mining revenue |
21,688 |
218,639 |
31,700 |
Other revenues |
8,127 |
705 |
102 |
Total revenues |
4,986,706 |
4,378,907 |
634,882 |
Cost of revenues |
(2,135,961) |
(2,630,959) |
(381,453) |
Gross profit |
2,850,745 |
1,747,948 |
253,429 |
Operating expenses: |
|||
Research and development expenses |
(332,846) |
(546,642) |
(79,256) |
Sales and marketing expenses |
(100,467) |
(62,966) |
(9,129) |
General and administrative expenses |
(589,107) |
(580,523) |
(84,168) |
Total operating expenses |
(1,022,420) |
(1,190,131) |
(172,553) |
Income from operations |
1,828,325 |
557,817 |
80,876 |
Interest income |
7,310 |
15,938 |
2,311 |
Change in fair value of warrant liability |
190,178 |
24,598 |
3,566 |
Investment income |
277 |
- |
- |
Impairment on cryptocurrency |
- |
(52,959) |
(7,678) |
Foreign exchange gains, net |
17,890 |
242,957 |
35,225 |
Other income, net |
6,410 |
22,156 |
3,212 |
Income before income tax expenses |
2,050,390 |
810,507 |
117,512 |
Income tax expense |
(50,108) |
(152,262) |
(22,076) |
Net income |
2,000,282 |
658,245 |
95,436 |
Foreign currency translation adjustment, net of nil tax |
(22,145) |
97,081 |
14,075 |
Total comprehensive income |
1,978,137 |
755,326 |
109,511 |
Weighted average number of shares used in per share |
|||
— Basic |
2,521,667,815 |
2,560,099,001 |
2,560,099,001 |
— Diluted |
2,576,157,247 |
2,577,884,667 |
2,577,884,667 |
Net earnings per share (cent per share) |
|||
— Basic |
79.32 |
25.71 |
3.73 |
— Diluted |
77.65 |
25.53 |
3.70 |
Share-based compensation expenses were included in: |
|||
Cost of revenues |
269 |
990 |
144 |
Research and development expenses |
99,173 |
66,065 |
9,579 |
Sales and marketing expenses |
8,240 |
16,263 |
2,358 |
General and administrative expenses |
383,779 |
324,079 |
46,987 |
The table below sets forth a reconciliation of net income to non-GAAP adjusted net income for the years indicated: |
|||
For the Years Ended |
|||
|
|
|
|
RMB |
RMB |
US$ |
|
Net income |
2,000,282 |
658,245 |
95,436 |
Share-based compensation expenses |
491,461 |
407,397 |
59,068 |
Change in fair value of warrant liability |
(190,178) |
(24,598) |
(3,566) |
Non-GAAP adjusted net income |
2,301,565 |
1,041,044 |
150,938 |
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