BEIJING,
Third Quarter 2021 Operating and Financial Highlights
Total computing power sold was 6.7 million Thash/s, up 128.4% from 2.9 million Thash/s in the same period of 2020 and up 12.9% from 5.9 million Thash/s in the second 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 delivery of Bitcoin mining machines.
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, "In the third quarter, we continued to navigate through various market and regulatory dynamics, and achieved new highs in multiple operating and financial metrics. Our total computing power sold set another record high to 6.7 million Thash/s in the quarter, while we are increasingly diversifying our global presence. Our expanded footprint is due to our proactive strategic shift to global markets, effective business development, and enhanced relationship with existing clients. Moreover, we have started to extend our collaboration with key clients to joint mining, get further involved in the industry value chain by leveraging our computing solution advantages. Meanwhile, in light of the ongoing IC supply disruptions, we remain steadfast in expanding our cooperation with suppliers and securing the stability of our supply chain. As an integral part of our strategy, we continued to bolster our innovative capabilities by adding elite talents to our R&D team. We will stay vigilant to both challenges and opportunities as we grow in this fast-developing space."
Mr.
Third Quarter 2021 Financial Results
Total net revenues in the third quarter of 2021 increased by 708.2% to
Cost of revenues in the third quarter of 2021 was
Gross profit in the third quarter of 2021 was
Total operating expenses in the third quarter of 2021 were
Research and development expenses in the third quarter of 2021 were
Sales and marketing expenses in the third quarter of 2021 were
General and administrative expenses in the third quarter of 2021 were
Income from operations in the third quarter of 2021 was
Net income attributable to ordinary shareholders in the third quarter of 2021 was
Non-GAAP adjusted net income in the third quarter of 2021 was
Foreign currency translation adjustment, net of nil tax, was a gain of
Basic net earnings per American depositary share ("ADS") in the third quarter of 2021 was
Diluted net earnings per ADS in the third quarter of 2021 was
As of
Contract liabilities as of
As of
Shares Outstanding
As of
Recent Developments
The Company's Share Repurchase Update
On
As of
Business Outlook
For the fourth quarter of 2021, the Company expects total revenues to have a sequential increase of 35% to 50%. 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/2827548
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: 2827548
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, 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 expenses. 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 |
1,698,463 |
263,597 |
|
Restricted cash |
4,494 |
127 |
20 |
|
Short-term investments |
62,386 |
- |
- |
|
Accounts receivable |
7,128 |
826 |
128 |
|
Inventories |
225,522 |
833,209 |
129,312 |
|
Prepayments and other current assets |
316,366 |
1,309,719 |
203,264 |
|
Total current assets |
1,007,206 |
3,842,344 |
596,321 |
|
Non-current assets: |
||||
Property, equipment and software |
12,193 |
31,088 |
4,825 |
|
Cryptocurrencies |
- |
6,062 |
941 |
|
Right-of-use assets, net |
14,422 |
26,241 |
4,073 |
|
Long-term investments |
- |
20,000 |
3,104 |
|
Other non-current assets |
2,530 |
2,673 |
415 |
|
Non-current financial investment |
25 |
- |
- |
|
Total non-current assets |
29,170 |
86,064 |
13,358 |
|
Total assets |
1,036,376 |
3,928,408 |
609,679 |
|
LIABILITIES, AND SHAREHOLDERS' EQUITY |
||||
Current liabilities |
||||
Short-term debts |
34,754 |
- |
- |
|
Accounts payable |
37,407 |
120,448 |
18,693 |
|
Notes payable |
13,963 |
- |
- |
|
Contract liabilities |
430,388 |
1,026,734 |
159,347 |
|
Accrued liabilities and other current liabilities |
63,343 |
286,171 |
44,413 |
|
Lease liabilities, current |
12,621 |
13,521 |
2,098 |
|
Total current liabilities |
592,476 |
1,446,874 |
224,551 |
|
Non-current liabilities: |
||||
Lease liabilities, non-current |
3,322 |
12,281 |
1,906 |
|
Other non-current liabilities |
8,020 |
6,440 |
999 |
|
Total non-current liabilities |
11,342 |
18,721 |
2,905 |
|
Total liabilities |
603,818 |
1,465,595 |
227,456 |
|
Shareholders' equity: |
||||
Ordinary shares ( |
1 |
1 |
- |
|
Subscriptions receivable from shareholders |
(1) |
(1) |
- |
|
|
(23,915) |
(65,474) |
(10,161) |
|
Additional paid-in capital |
1,634,619 |
3,073,476 |
476,996 |
|
Statutory reserves |
97,307 |
97,307 |
15,102 |
|
Accumulated other comprehensive loss |
(79,780) |
(82,546) |
(12,811) |
|
Accumulated deficit |
(1,195,673) |
(559,950) |
(86,903) |
|
Total shareholders' equity |
432,558 |
2,462,813 |
382,223 |
|
Total liabilities and shareholders' equity |
1,036,376 |
3,928,408 |
609,679 |
|
|
||||
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 |
159,727 |
1,079,429 |
1,311,992 |
203,618 |
Leases revenue |
2,860 |
1,634 |
- |
- |
Service revenue |
151 |
- |
- |
- |
Mining income |
- |
655 |
5,624 |
873 |
Other revenues |
303 |
43 |
- |
- |
Total net revenues |
163,041 |
1,081,761 |
1,317,616 |
204,491 |
Cost of revenues |
(180,033) |
(653,874) |
(575,925) |
(89,382) |
Gross profit |
(16,992) |
427,887 |
741,691 |
115,109 |
Operating expenses: |
||||
Research and development expenses |
(32,117) |
(69,905) |
(92,763) |
(14,397) |
Sales and marketing expenses |
(3,181) |
(25,860) |
(37,597) |
(5,835) |
General and administrative expenses |
(40,561) |
(166,633) |
(148,053) |
(22,977) |
Total operating expenses |
(75,859) |
(262,398) |
(278,413) |
(43,209) |
(Loss)/income from operations |
(92,851) |
165,489 |
463,278 |
71,900 |
Interest income |
283 |
1,977 |
2,917 |
453 |
Investment income |
1,963 |
93 |
- |
- |
Interest expense |
(785) |
(15) |
- |
- |
Foreign exchange gains/(losses), net |
2,066 |
(556) |
1,248 |
194 |
Other income/(expenses), net |
2,942 |
636 |
(207) |
(32) |
(Loss)/income before income tax expenses |
(86,382) |
167,624 |
467,236 |
72,515 |
Income tax expense |
(24) |
(337) |
(4) |
(1) |
Net (loss)/income |
(86,406) |
167,287 |
467,232 |
72,514 |
Foreign currency translation adjustment, net of nil tax |
(15,402) |
(10,241) |
5,118 |
794 |
Total comprehensive (loss)/income |
(101,808) |
157,046 |
472,350 |
73,308 |
Weighted average number of shares used in per share |
||||
— Basic |
2,350,115,118 |
2,523,225,188 |
2,615,416,505 |
2,615,416,505 |
— Diluted |
2,350,115,118 |
2,621,690,830 |
2,652,280,752 |
2,652,280,752 |
Net (loss)/earning per share (cent per share) |
||||
— Basic |
(3.68) |
6.63 |
17.86 |
2.77 |
— Diluted |
(3.68) |
6.38 |
17.62 |
2.73 |
Share-based compensation expenses were included in: |
||||
Cost of revenues |
- |
92 |
- |
- |
Research and development expenses |
1,025 |
29,589 |
25,911 |
4,021 |
Sales and marketing expenses |
11 |
1,889 |
1,248 |
194 |
General and administrative expenses |
600 |
121,235 |
93,157 |
14,458 |
*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 |
(86,406) |
167,287 |
467,232 |
72,514 |
Share-based compensation expenses |
1,636 |
152,805 |
120,316 |
18,673 |
Non-GAAP adjusted net (loss)/income |
(84,770) |
320,092 |
587,548 |
91,187 |
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