BEIJING,
Second Quarter 2021 Operating and Financial Highlights
Total computing power sold was 5.9 million Thash/s, up 126.9% from 2.6 million Thash/s in the same period of 2020 and up 200.0% from 2.0 million Thash/s in the first quarter of 2021, setting a new high mark. The robust year-over-year and sequential increases were mainly due to the increase in the number of Bitcoin mining machines being delivered driven by strong market demand.
As of
Total net 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 delivered a remarkable performance in the second quarter of 2021. Despite unexpected regulatory policy dynamics and Bitcoin price volatility, we achieved record-high topline results as we delivered a robust 5.9 million Thash/s of computing power to our clients. During the second quarter and recently, we also secured substantial preorders, thanks to the effective execution of our strategies, including business development in the overseas markets, institutional client relationship building, and strengthening our supply chain. Regarding our self-operated Bitcoin mining program, we plan to continue to deploy computing power to grasp the tremendous opportunities of Bitcoin mining. We also made encouraging strides in the AI business by launching our self-developed edge AI chip, Kendryte K510, and garnered demand from multiple outstanding clients in the technology field. Looking ahead, while we endeavor to gain greater market share in our Bitcoin mining machine business, we will continue our research and development efforts to further advance our underlying ASIC and edge computing technologies, propelling forward our growth prospects."
Mr.
Second Quarter 2021 Financial Results
Total net revenues in the second quarter of 2021 increased by 507.3% to
Cost of revenues in the second quarter of 2021 increased to
Gross profit in the second quarter of 2021 was
Total operating expenses in the second quarter of 2021 were
Research and development expenses in the second quarter of 2021 were
Sales and marketing expenses in the second quarter of 2021 were
General and administrative expenses in the second quarter of 2021 were
Income from operations in the second quarter of 2021 was
Change in fair value of warrant liability in the second quarter of 2021 was a gain of
Net income attributable to ordinary shareholders in the second quarter of 2021 reached a new high since the Company's IPO to
Non-GAAP adjusted net income in the second 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 second quarter of 2021 was
Diluted net earnings per ADS in the second quarter of 2021 was
Contract liabilities as of
As of
Recent Developments
The Company's Share Repurchase Update
Between
On
Change of Board Composition
Mr.
Mr.
Business Outlook
For the third quarter of 2021, the Company expects total revenues to have a sequential increase of 10% to 30%. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.
Conference Call Information
The Company's management team will hold a Direct Event conference call on
Event Title:
Registration Link: http://apac.directeventreg.com/registration/event/6764915
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: 6764915
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." 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 loss, adjusted net income, adjusted net (loss)/income, as supplemental measures to review and assess its operating performance. The Company defines adjusted net loss as net loss excluding sharebased compensation expense 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
Mr. Shaoke Li
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 |
|||
2020 |
2021 |
2021 |
||
RMB |
RMB |
US$ |
||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
391,310 |
1,220,236 |
188,990 |
|
Restricted cash |
4,494 |
126 |
20 |
|
Short-term investments |
62,386 |
- |
- |
|
Accounts receivable |
7,128 |
372 |
58 |
|
Inventories |
225,522 |
587,112 |
90,932 |
|
Prepayments and other current assets |
316,366 |
1,419,606 |
219,869 |
|
Total current assets |
1,007,206 |
3,227,452 |
499,869 |
|
Non-current assets: |
||||
Property, equipment and software |
12,193 |
16,147 |
2,501 |
|
Right-of-use assets, net |
14,422 |
30,423 |
4,712 |
|
Other non-current assets |
2,530 |
3,617 |
559 |
|
Non-current financial investment |
25 |
- |
- |
|
Total non-current assets |
29,170 |
50,187 |
7,772 |
|
Total assets |
1,036,376 |
3,277,639 |
507,641 |
|
LIABILITIES, AND SHAREHOLDERS' EQUITY |
||||
Current liabilities |
||||
Short-term debts |
34,754 |
- |
- |
|
Accounts payable |
37,407 |
107,790 |
16,695 |
|
Notes payable |
13,963 |
- |
- |
|
Contract liabilities |
430,388 |
1,040,551 |
161,161 |
|
Accrued liabilities and other current liabilities |
63,343 |
180,189 |
27,908 |
|
Lease liabilities, current |
12,621 |
18,111 |
2,804 |
|
Total current liabilities |
592,476 |
1,346,641 |
208,568 |
|
Non-current liabilities: |
||||
Lease liabilities, non-current |
3,322 |
12,363 |
1,915 |
|
Warrant liability |
- |
54,736 |
8,478 |
|
Other non-current liabilities |
8,020 |
6,929 |
1,072 |
|
Total non-current liabilities |
11,342 |
74,028 |
11,465 |
|
Total liabilities |
603,818 |
1,420,669 |
220,033 |
|
Shareholders' equity: |
||||
Ordinary shares ( 1,000,000,000,000 shares authorized,2,372,222,222 and 2,613,169,978 shares issued, 2,328,326,132 and 2,569,273,888 shares outstanding as of 2020 and June 3o, 2021, respectively) |
1 |
1 |
- |
|
Subscriptions receivable from shareholders |
(1) |
(1) |
- |
|
shares as of |
(23,915) |
(23,915) |
(3,704) |
|
Additional paid-in capital |
1,634,619 |
2,820,748 |
436,878 |
|
Statutory reserves |
97,307 |
97,307 |
15,071 |
|
Accumulated other comprehensive loss |
(79,780) |
(87,664) |
(13,577) |
|
Accumulated deficit |
(1,195,673) |
(949,506) |
(147,060) |
|
Total shareholders' equity |
432,558 |
1,856,970 |
287,608 |
|
Total liabilities and shareholders' equity |
1,036,376 |
3,277,639 |
507,641 |
|
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 |
|||||
|
|
|
|
||
RMB |
RMB |
RMB |
US$ |
||
Net revenues |
|||||
Products revenue |
162,925 |
396,562 |
1,079,429 |
167,182 |
|
Leases revenue |
15,109 |
5,922 |
1,634 |
253 |
|
Service revenue |
57 |
224 |
- |
- |
|
Mining income |
- |
- |
655 |
101 |
|
Other revenues |
35 |
66 |
43 |
7 |
|
Total net revenues |
178,126 |
402,774 |
1,081,761 |
167,543 |
|
Cost of revenues |
(134,849) |
(208,556) |
(654,631) |
(101,389) |
|
Gross profit |
43,277 |
194,218 |
427,130 |
66,154 |
|
Operating expenses: |
|||||
Research and development expenses |
(26,073) |
(58,161) |
(63,975) |
(9,908) |
|
Sales and marketing expenses |
(6,520) |
(6,298) |
(25,774) |
(3,992) |
|
General and administrative expenses |
(29,587) |
(143,426) |
(171,892) |
(26,623) |
|
Total operating expenses |
(62,180) |
(207,885) |
(261,641) |
(40,523) |
|
(Loss)/income from operations |
(18,903) |
(13,667) |
165,489 |
25,631 |
|
Interest income |
873 |
430 |
1,977 |
306 |
|
Change in fair value of warrant liability |
- |
- |
77,676 |
12,030 |
|
Investment income |
1,923 |
184 |
93 |
14 |
|
Interest expense |
(1,519) |
(231) |
(15) |
(2) |
|
Foreign exchange gains/(losses), net |
80 |
13,008 |
(556) |
(86) |
|
Other income, net |
831 |
1,489 |
636 |
99 |
|
(Loss)/income before income tax expenses |
(16,715) |
1,213 |
245,300 |
37,992 |
|
Income tax expense |
(72) |
(9) |
(337) |
(52) |
|
Net (loss)/income |
(16,787) |
1,204 |
244,963 |
37,940 |
|
Foreign currency translation adjustment, net of nil tax |
(81) |
2,357 |
(10,241) |
(1,586) |
|
Total comprehensive (loss)/income |
(16,868) |
3,561 |
234,722 |
36,354 |
|
Weighted average number of shares used in per share calculation: |
|||||
— Basic |
2,350,123,270 |
2,349,277,761 |
2,523,225,188 |
2,523,225,188 |
|
— Diluted |
2,350,123,270 |
2,423,489,527 |
2,621,690,830 |
2,621,690,830 |
|
Net (loss)/earning per share (cent per share) |
|||||
— Basic |
(0.71) |
0.05 |
9.71 |
1.50 |
|
— Diluted |
(0.71) |
0.05 |
9.34 |
1.45 |
|
Share-based compensation expenses were included in: |
|||||
Cost of revenues |
- |
177 |
849 |
131 |
|
Research and development expenses |
132 |
24,059 |
23,660 |
3,664 |
|
Sales and marketing expenses |
11 |
2,980 |
1,803 |
279 |
|
General and administrative expenses |
600 |
114,760 |
126,493 |
19,591 |
|
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 |
||||
|
|
|
|
|
RMB |
RMB |
RMB |
US$ |
|
Net (loss)/income |
(16,787) |
1,204 |
244,963 |
37,940 |
Share-based compensation expense |
743 |
141,976 |
152,805 |
23,665 |
Change in fair value of warrant liability |
- |
- |
(77,676) |
(12,030) |
Non-GAAP adjusted net (loss)/income |
(16,044) |
143,180 |
320,092 |
49,575 |
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