0001193125-22-133564 | 20-F | XBRL Viewer

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Income Taxes - Additional Information (Details) - CNY (¥) ¥ in Thousands		12 Months Ended
	Mar. 16, 2007	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2017	Dec. 31, 2018
Income Taxes [Line Items]
Statutory income tax rate		25.00%
Income tax holiday, description		Canaan is qualified as an integrated circuit enterprise and enjoying a 5-year tax holiday (two year full exemption followed by three year half reduction) beginning from 2016 after utilizing all prior years’ tax losses. Therefore, Hangzhou Canaan is eligible to enjoy a preferential tax rate of 0% from 2016 to 2017 and 12.5% from 2018 to 2020.
Income tax holiday period		5 years
Income tax full exemption holiday period		2 years
Income tax half reduction holiday period		3 years
Withholding income tax rate on dividends		10.00%
Undistributed earnings available for distribution		¥ 1,192,746	¥ 701,633
Withholding income tax		0	0
Tax loss carry forwards		¥ 437,187	1,762,521
Tax loss carry forwards period		10 years			5 years
Operating loss carry forwards expiration start year		2022
Operating loss carry forwards expiration end year		2031
Deferred tax assets valuation allowance		¥ 17,984	¥ 304,790	¥ 254,039		¥ 119,065
Other PRC Subsidiaries
Income Taxes [Line Items]
Statutory income tax rate		25.00%
PRC mainland and Hong Kong subsidiaries [Member]
Income Taxes [Line Items]
Tax loss carry forwards		¥ 84,255
Operating Loss Carryforwards, Limitations on Use		Tax losses of RMB84,255 will expire, if unused, by 2025 and thereafter.
Operating Loss Carryforwards, Subject to Expiration		¥ 84,255
Operating Loss Carryforwards, Expiration year		2025
Tax Year 2016 to 2017
Income Taxes [Line Items]
Preferential tax rate		0.00%
Tax Year 2018 to 2020
Income Taxes [Line Items]
Preferential tax rate		12.50%
Tax Year 2019 to 2021
Income Taxes [Line Items]
Preferential tax rate		15.00%
Hong Kong
Income Taxes [Line Items]
Statutory income tax rate		16.50%	16.50%	16.50%
Hong Kong \| FIE
Income Taxes [Line Items]
Ownership percentage		25.00%
Hong Kong \| Maximum
Income Taxes [Line Items]
Withholding income tax rate		5.00%
PRC \| Enterprise Income Tax
Income Taxes [Line Items]
Statutory income tax rate	25.00%

Inventories (Tables)

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:


	As of December 31,
	2020		2021
Raw materials		195,939		429,208
Finished goods		26,963		304,801
Work in process		2,620		78,354

Total		225,522		812,363

Restricted cash

12 Months Ended

Dec. 31, 2021

Restricted Cash and Cash Equivalents [Abstract]

Restricted Cash

4.	Restricted cash

In December 2021, cash balance of RMB47,362 was temporarily restricted by a bank from access to the bank account during the restriction period. The restriction was subsequently released in April 2022.

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Cash flows from operating activities
Net income (loss)	¥ 2,000,282	$ 313,886	¥ (215,094)	¥ (1,034,510)
Adjustments for:
Revenue recognized on acceptance of cryptocurrency	(21,688)	(3,403)	0
Depreciation and amortization of property, equipment and software	11,009	1,728	11,852	13,704
Depreciation of operating lease assets	3,118	489	19,389	20,458
Foreign exchange gain	(9,668)	(1,517)	(14,094)	(9,636)
Provision of allowance for doubtful receivables	911	143	4,849	0
Deferred income tax benefits	(99,044)	(15,542)	0	0
Loss on disposal of property, equipment and software	47	7	96	0
Share-based compensation expense	491,461	77,120	2,950	270,242
Change in fair value of warrant liability	(190,178)	(29,843)	0	0
Investment income	(277)	(43)	(5,844)	(3,055)
Reduction in the carrying amount of the right-of-use assets	17,584	2,759	13,432	10,928
Interest of lease liabilities	1,613	253	1,938	1,746
Impairment charge to non-current financial investment	25	4	2,475	0
Impairment loss of cryptocurrency	1,061	166	0	0
Write-down of inventories	50,714	7,958	44,916	526,473
Changes in assets and liabilities:
Accounts receivable	6,761	1,061	(4,499)	20,815
Inventories	(787,554)	(123,584)	(93,760)	(157,326)
Prepayments and other current assets	(1,413,497)	(221,807)	(99,127)	(20,256)
Income tax receivable				27,054
Amount due from a related party				68
Other non-current assets	(426)	(67)	2,720	1,090
Prepaid interest expense and guarantee fee	246	39	(149)	7,873
Accounts payable	106,034	16,639	(61,643)	51,810
Notes payable	(13,963)	(2,191)	(13,499)	27,462
Contract liabilities	910,343	142,853	422,100	1,384
Income tax payable	148,719	23,337		(609)
Accrued liabilities and other current liabilities	247,940	38,907	29,591	(24,545)
Other non-current liabilities	(2,196)	(345)	8,020
Lease liabilities	(20,527)	(3,221)	(14,322)	(11,228)
Net cash provided by (used in) operating activities	1,438,850	225,786	42,297	(280,058)
Cash flows from investing activities:
Payment for short-term investments	0	0	(1,334,077)	(554,700)
Proceeds from disposal of short-term investments	62,663	9,833	1,288,540	546,750
Purchase of property, equipment and software	(37,708)	(5,917)	(2,176)	(8,380)
Proceeds from disposal of property, equipment and software	160	25	637
Payment for non-current financial investments	(20,000)	(3,138)	(2,500)
Net cash provided by (used in) investing activities	5,115	803	(49,576)	(16,330)
Cash flows from financing activities:
Proceeds from issuance of ordinary shares				669,559
Payment for repurchase of ordinary shares	(103,543)	(16,248)	(23,915)
Prepayment under share repurchase agreement	(573)	(90)	(16,146)
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance				544,122
Payment for cost of issuance	(5,705)	(895)	(6,879)
Proceeds from borrowings	0	0	152,000	200,000
Proceeds from Sale of Treasury Stock	45,728	7,176
Repurchase for tax withholdings on vesting of restricted share units	(24,508)	(3,846)
Proceeds from issuance of ordinary shares and warrants	1,029,455	161,544
Repayment of borrowings	(35,000)	(5,492)	(217,000)	(1,135,730)
Net cash provided by (used in) financing activities	905,854	142,149	(111,940)	277,951
Net increase (decrease) in cash and cash equivalents, and restricted cash	2,349,819	368,738	(119,219)	(18,437)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	(13,919)	(2,184)	(9,823)	(1,927)
Cash and cash equivalents, and restricted cash at the beginning of year	395,804	62,110	524,846	545,210
Cash and cash equivalents, and restricted cash at the end of year	2,731,704	428,664	395,804	524,846
Supplemental disclosure of cash flow information:
Cash paid for interest	246	39	3,736	11,583
Cash paid for guarantee fee				7,145
Cash paid for income tax	433	68		3,510
Supplemental disclosure of non-cash investing and financing activities:
Transfer from inventory to operating lease assets	15,169	2,380	135,276	99,523
Transfer from operating lease assets to inventory	12,051	1,891	¥ 115,887	79,065
Mining equipment transfer from inventory to property, equipment and software	146,881	23,049
Accrued initial public offering related cost				¥ 7,493
Accrued tax withholdings on vesting of restricted share units	126,198	19,803
Revenue recognized on acceptance of cryptocurrency	¥ 21,688	$ 3,403

Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

20.	Contingencies

On March 4, 2020, a putative class action was filed in the United States District Court of Oregon (the “Federal Action”) against the Company, certain officers and directors of the Company, among others. The complaint alleges that the Form

F-1

registration statement, initially filed with the Securities and Exchange Commission on October 28, 2019, contained material misstatements and omissions in violation of federal securities laws. On March 6, 2020, another putative class action, making substantially similar allegations, was filed in New York County Supreme Court (the “State Action”) against the Company and certain officers and directors of the Company. On June 1, 2020, the Company filed a motion to stay all proceedings in the State Action pending adjudication of the Federal Action, which was granted on July 21, 2020. Subsequently, the Federal Action was transferred to the U.S. District Court for the Southern District of New York (the “Court”) on September 2, 2020. On October 7, 2020, lead plaintiffs in the Federal Action filed an amended complaint asserting claims under Section 11 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act for that the registration statement failed to disclose three alleged related party transactions. On December 7, 2020, the Company filed a motion to dismiss the amended complaint in the Federal Action. On July 8, 2021, the Court dismissed the first amended complaint but allowed plaintiffs to file a second amended complaint by August 6, 2021. On August 6, 2021, plaintiffs filed a letter motion for leave to file a second amended complaint. On August 27, 2021, the Company filed a letter response to oppose plaintiffs’ August 6, 2021 letter motion and to seek a final judgment dismissing the Federal Action to be entered. On March 31, 2022, plaintiffs’ motion for leave to file a second amended complaint has been denied as futile, and plaintiffs’ claims have been hereby dismissed with prejudice, and the Court has closed the motion. As of the date of this annual report,

we are waiting to see whether plaintiffs will appeal the Court’s decision within 30 days of entry of judgment.

On April 15, 2021, a new putative class action was filed in the United States District Court for the Southern District of New York against the Company and certain officers of the Company. The complaint alleges that the Company’s press release issued in February 2021 about increased visibility into revenue and the size and quality of orders the Company was receiving were materially false and misleading. Plaintiff claims that the truth about the Company’s revenue was revealed in April 2021, when the Company announced its latest financial results. On December 14, 2021, the Court so-ordered this stipulation. On February 7, 2022, lead plaintiffs filed an amended complaint asserting the same claims under Sections 10(b) and 20(a) of the Exchange Act against the same set of defendants. The amended complaint alleges the Company’s November 30, 2020 and February 10, 2021 press releases and the April 9, 2021 interview of the Company’s chief executive officer in an article published by Decrypt contained false and misleading statements regarding the pre-sale orders the Company had received and the Company’s ability to secure sufficient chip supply to meet the increasing demand for mining machines. ,On April 8, 2022, the Company filed a motion to dismiss the amended complaint.

The management of the Company believes that there are defenses to one or more of the claims asserted in the lawsuits. The management of the Company has engaged counsel with the intention to vigorously defend these lawsuits. At the date of issue of the consolidated financial statements, the Company is unable to predict the outcome of these lawsuits, or reasonably estimate a range of possible losses, if any, given the early stage of these lawsuits. Therefore, no contingent liabilities have been recorded by the Company as of December 31, 2021 in respect of these lawsuits.

Also, the Company is and, from time to time, may in the future become, involved in other legal proceedings in the ordinary course of business. The Company currently believes that the outcome of any of these existing legal proceedings, either individually or in the aggregate, will not have a material impact on the operating results, financial condition or cash flows of the Company. With respect to existing legal proceedings, the Company has either determined that the existence of a material loss is not reasonably possible or that it is unable to estimate a reasonably possible loss or range of loss. The Company may incur substantial legal fees, which are expensed as incurred, in defending against these legal proceedings.

Property, Equipment and Software (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property, Equipment and Software

8.	Property, equipment and software

Property, equipment and software consist of the following:


	As of December 31,
	2020			2021
Cost:
Mining equipment		—			146,881
Computers and electronic equipment		14,540			27,492
Leasehold improvements		17,130			21,412
Mechanical equipment		1,181			7,694
Software		1,955			5,438
Construction in progress		1,325			665
Motor vehicles		461			470

Total cost		36,592			210,052
Less: Accumulated depreciation and amortization		(24,399	)		(24,486	)

Property, equipment and software, net		12,193			185,566

Summary of Depreciation and Amortization Expenses

Depreciation and amortization expenses recognized for the years ended December 31, 2019, 2020 and 2021 are summarized as follows:


	For the Years Ended December 31,
	2019		2020		2021
General and administrative expenses		8,062		7,680		6,439
Research and development expenses		3,662		3,874		2,826
Cost of revenues		1,899		217		1,715
Sales and marketing expenses		81		81		29

Total		13,704		11,852		11,009

Short-Term Debts - Schedule of Short-Term Debts (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Short-term bank loans	¥ 0	¥ 34,754

Leases - Schedule of Maturities of Lease Liabilities (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Leases [Abstract]
2022	¥ 14,917
2023	13,867
2024 and thereafter	4,222
Total undiscounted lease payments	33,006
Less: imputed interest	(1,895)
Operating lease liabilities	31,111
Amounts due within 12 months	14,819	$ 2,325	¥ 12,621
Non-current lease liability	¥ 16,292	$ 2,557	¥ 3,322

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of significant accounting policies

2.	Summary of significant accounting policies

(a)

Basis of preparation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below.

(b)

Use of estimates

The preparation of the Company’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates.

The Company believes that accounting estimation of variable consideration for revenue recognition, warrant liability, valuation of deferred tax assets, write-down for inventories and prepayments, valuation and recognition of share-based compensation reflect significant judgments and estimates used in the preparation of its consolidated financial statements.

Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from these estimates.

(c)

Consolidation

The Company’s consolidated financial statements include the financial statements of Canaan Inc. and its subsidiaries. All transactions and balances among Canaan Inc. and its subsidiaries have been eliminated upon consolidation.

Subsidiaries are those entities in which Canaan Inc. directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the Board of Directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

(d)

Functional currency and foreign currency translation

The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of Canaan Inc. and its subsidiaries incorporated outside of the PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Company is RMB as determined based on the criteria of Accounting Standards Codification (“ASC”) 830,

Foreign Currency Matters

Transactions denominated in other than the functional currencies are

re-measured

into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are

re-measured

at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income (loss) as foreign exchange related gains or loss.

The financial statements of the Company are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of Canaan Inc. and its subsidiaries incorporated outside of PRC are translated into RMB using the applicable exchange rates at the balance sheet date, income and expense items are translated at average exchange rates prevailing during the fiscal year. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a separate component of shareholders’ equity on the consolidated financial statement.

(e)

Convenience translation

The United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into

US$ for the convenience of the reader were calculated at the rate of US$1.00=RMB

6.3726

December 3

, 2021, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2021, or at any other rate.

(f)

Warrant Liability

The freestanding warrants to purchase American Depositary Share (“ADSs”) at a future date were determined to be freestanding instruments that were accounted for as a liability. At initial recognition, the Company recorded the warrant liability on the consolidated balance sheets at its estimated fair value. The proceeds from issuance of ordinary shares and warrants are firstly allocated to warrant liability based on its fair value. The residual method is used to allocate the proceeds to shareholders’ equity. The warrant liability is subject to remeasurement at each reporting period and the Company adjusted the carrying value of the warrant liability to fair value at the end of each reporting period utilizing the binominal option pricing model, with changes in estimated fair value included in the change in fair value of warrant liability on the consolidated statement of comprehensive income (loss).

(g)

Fair value of financial instruments

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The three levels of inputs that may be used to measure fair value include:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, for the assets or liabilities either directly or indirectly.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The Company’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments,

non-current

financial investments, accounts receivable, accounts payable, short-term debts, notes payable and other liabilities.

As of December 31, 2020 and 2021, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and other liabilities approximated to their fair values reported in the consolidated balance sheets due to the short term nature of these instruments.

On a recurring basis, the Company measures its short-term investments and warrant liability at fair value.

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

As of December 31, 2020

Level 1

Level 2

Level 3

Balance at

fair value

Assets

Short-term investments

—

62,386

—

62,386

As of December 31, 202

Level 1

Level 2

Level 3

Balance at

fair value

Liabilities

Warrant liability

—

66,347

The Company values its investments in wealth management products based on quoted prices of similar products provided by banks at the end of each period, and accordingly, the Company classifies the valuation techniques that use these inputs as Level 2.

The warrants are accounted for as a liability and remeasured to fair value at the end of each reporting period utilizing the binomial option pricing model, which involves significant assumptions including the risk-free interest rate, the expected volatility, expected dividend yield and expected term (Note

(h)

Cash and cash equivalents

Cash and cash equivalents include cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use.


	As of December 31,
	2020		2021
RMB denominated bank deposits with financial institutions in the PRC		110,241		1,167,445
US dollar denominated bank deposits with financial institutions in the PRC		248,716		1,447,336
Others denominated bank deposits with financial institutions in the PRC		-		39,746
US dollar denominated bank deposits with overseas financial institutions PRC		32,352		29,498
Others denominated bank deposits with overseas financial institutions		1		317

Total		391,310		2,684,342

The bank deposits, including term deposits and restricted cash, with financial institutions in the mainland of the PRC mainland, Hong Kong, United States and Singapore are insured by the government authorities up to RMB500, HKD500, USD250 and SGD75 per bank, respectively. The bank deposits including term deposits and restricted cash are insured by the government authorities with amounts up to RMB9,086 and RMB11,579 as of December 31,

2020

and 2021, respectively. The Company has not experienced any losses in uninsured bank deposits and does not believe that it is exposed to any significant risks on cash held in bank accounts. To limit exposure to credit risk, the Company primarily places bank deposits

with

large financial institutions in the PRC mainland, Hong Kong, United States and Singapore with acceptable credit rating.

(i)

Restricted cash

Restricted cash includes cash that are not readily available for the Company’s normal disbursements. Restricted cash are primarily related to cash deposits with banks and financial institutions subject to legal restrictions (note 4), or required as part of collateral for the Company’s notes payable (Note 11) arrangements.

(j)

Short-term investments

Short-term investments include investments in wealth management products issued by certain banks which are redeemable by the Company at any time. The wealth management products are unsecured with variable interest rates. The Company measures the short-term investments at fair value and fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The change in fair value is recorded as investment income in the amount of

RMB3,055, RMB5,844 and RMB277

in the consolidated

statements of comprehensive income (loss) for the years ended December 31, 2019, 2020 and 2021, respectively.

(k)

Accounts receivable

Accounts receivable are presented net of allowance for doubtful accounts. The Company uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and based on factors listed in the following paragraph. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required.

The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted.

(l)

Inventories

Inventories, consisting of finished goods, work in process, raw materials and goods in transit, which are purchased from contractual manufacturers and component suppliers. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased.

In accordance with ASC

855-

-55-1(b),

the Company considers all data available, including future demand and subsequent changes in product prices that may provide additional information about the valuation of inventories at the balance sheet date.

(m)

Cryptocurrency

Cryptocurrency is, by its nature, identifiable non-monetary assets that lack physical substance. Future economic benefit attributable to cryptocurrency is expected to flow to the Company because cryptocurrency can be exchanged to standard currencies on public trading platforms. Furthermore, the cost of the Company’s cryptocurrency assets can be measured reliably because cryptocurrency earned from mining activities can be measured with reference to the spot price to standard currencies on the date when they are

earned.

The Company accounts for the cryptocurrency received from mining as intangible assets with indefinite useful life in its consolidated balance sheets because, at the time of assessment, there is no foreseeable limit to the period over which such assets are expected to generate cash flows. The Company further adopts the cost model to account for its cryptocurrency and reviews its useful life and impairment at each reporting date in accordance with ASC 350 Intangibles—Goodwill and Other. The Company accounts for cryptocurrency at cost, instead of revaluing cryptocurrency at their fair value on each accounting reference date, because the latter model is subject to inherent and substantial volatility in the value of cryptocurrency from time to time.

Cost is calculated using the weighted average cost method. Gains or losses arising from the disposal of cryptocurrency are determined as the difference between the net disposal proceeds and the carrying amount of the cryptocurrency and are recognized in profit or loss on the date of disposal.

The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The recoverable amount of cryptocurrencies is based on the fair value less costs of disposal. The fair value of the cryptocurrencies is determined by using the quoted price on the cryptocurrencies platform website well recognized by the block chain users.

During the year ended December 31, 2021, the Company recognized impairment loss of RMB1,061 on cryptocurrency, which is included in general and administrative expenses in the consolidated statements of comprehensive income (loss).

(n)

Operating lease assets

Operating lease assets consist of lease contracts for mining equipment for Bitcoin mining with customers,

which are reclassified from inventories at the beginning of lease period. Operating lease assets are recorded at cost less accumulated depreciation and impairment losses. Depreciation is provided using a straight-line method over the estimated economic lives which is generally 18 months. Depreciation expenses are included in costs of revenues. The

Company

monitors accounting estimates relating to the depreciation period. Changes made to estimates are reflected in depreciation expense on a prospective basis. As of December 31, 2020 and 2021, the Company did not have any operating lease assets

(

)

Property, equipment and software

Property, equipment and software are stated at historical cost less accumulated depreciation, amortization and impairment loss, if any. Depreciation and amortization is calculated using the straight-line method over the shorter of their estimated useful lives of these assets or the term of the related leases. The estimated useful lives are as follows:


		Leasehold improvements		the shorter of their useful lives and the lease terms
		Computers and electronic equipment		3 to 5 years
		Mechanical equipment		5 years
		Mining equipment		1.5 years
		Motor vehicles		5 years
		Software		3 years

Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income (loss).

Construction in progress represents assets under construction. Construction in progress is transferred to property, equipment and software and depreciation or amortization commences when an asset is ready for its intended use.

(

)

Non-current

financial investment

The Company’s

non-current

financial investment include an equity investment without readily determinable fair value, and over which the Company has neither significant influence nor control through investments in common stock or

in-substance

common stock, and is measured and recorded using a measurement alternative that measures the

non-current

financial investment at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. The carrying value of the Company’s

non-current

financial investment measured under cost minus impairment were RMB25 and RMB20,000 as of December 31, 2020 and 2021.

During the year ended December 31, 2020 and 2021, the Company recognized impairment charge of RMB2,475

and RMB25 recorded in other income, net.

(q)

Impairment of long-lived assets

For other long-lived assets including property, equipment and software, the Company evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Company assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

(r)

Contract liabilities

Cash proceeds received from customers before product delivery is recognized as contract liabilities and is recognized as revenues when revenue recognition criteria are met.

The prepayments received from customers as of December 31, 2020 and 2021 was RMB430,388 and RMB1,340,731, respectively. The revenue recognized during the years ended December 31, 2019, 2020 and 2021 for the beginning balance of contract liability was RMB6,904, RMB8,008 and RMB424,426, respectively and the significant increase was mainly due to increased down payments for the sales orders of mining equipment to be delivered in 2022. The balance as of December 31, 2021 is expected to be recognized as revenues within one year.

(s)

Revenue from contracts with customers (ASC 606)

The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services.

Products revenue

The Company generates revenue primarily from the sale of mining equipment directly to a customer, such as a business or individual engaged in Bitcoin mining activities. As the Bitcoin price fluctuates, the Company may adjust the selling price of mining equipment on a weekly basis, as customers are only willing to pay for machines based on their ability to recover their investment through mining Bitcoin over a relatively short period of time. The Company’s sales arrangements usually require a full prepayment before the delivery of products. The Company started to offer credit sales to certain significant, long-standing customers in the PRC from 2018 to September 2020. The payment terms under credit sales generally consist of 50% down payment and 50% subsequent payments over a period of 90 to 180 days. With the adoption of a more dynamic pricing strategy, the Company expects to accept a lower amount of consideration (as compared to fixed and promised consideration that is set out in the sales contracts) from its credit sales customers if the price of Bitcoin decreases in the post-sale period; hence providing implicit price concession to these customers and the ultimate amount of price concessions to be provided to these credit sales customers is highly dependent on the changes of Bitcoin prices.

Revenues from product sales are recorded at the net sales price (transaction price), which includes an estimation of variable consideration which primarily results from implicit price concessions on credit sales. The amount of variable consideration is included in the transaction price to the extent it is not constrained and that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the estimates. If actual results in the future vary from estimates, the Company will adjust these estimates, which would affect revenue and earnings in the period when such changes are known. With respect to the determination of variable consideration resulting from the amount of implicit price concession, since the Bitcoin market price is volatile and unpredictable and changes of Bitcoin price, will greatly affect the implicit price concessions to be provided by the Company to its credit sales customers, the Company historically has not been able to overcome the constraint on variable consideration at the time of product sale or at subsequent

period-end

dates until the Company has knowledge about the resolution of the uncertainty through payment by the customer. The Company uses all the subsequent information to the date of issuance of the financial statements to adjust the estimated variable consideration for the periods presented, representing updated information on the best estimate of the amount of transaction price that is probable of being received and therefore not constrained as of

period-end.

The Company will continue to monitor and evaluate historical data and other factors in determining the total transaction price (including implicit price concessions) that can be recognized for product sales on credit. During the years ended December 31, 2019, 2020 and 2021, the Company recognized price concessions provided to its customers in the amounts

of RMB22,392, RMB11,455 and nil, respectively.

During the year ended December 31, 2021, the adjustment to the previously estimated variable considerations was nil (years ended December 31, 2019 and 2020: RMB27,719 and RMB14,685). The Company did not provide price concessions to customers

in 2021.

The Company recognizes products revenue at a point in time based on management’s evaluation of when the control of the products has been passed to customers. The transfer of control is considered complete when products have been picked up by or shipped to the Company’s customers.

The Company

offers a standard product warranty of 360 days that the product will operate under normal use. At

the time revenue is recognized,
an estimate of future warranty costs is recorded as a component of cost of revenues. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. The amount of total warranty costs incurred was RMB1,310, RMB764
and RMB28,826 for the years ended December 31, 2019, 2020 and 2021, respectively.

Services revenue

The Company also generates a small portion of revenue from its maintenance services under separate contracts. Revenue from the maintenance service to the customer is recognized when the related services have been rendered to the customers.

Mining revenue

The Company performs mining activities with its own mining equipment to earn cryptocurrency reward. The Company recognizes revenue when it earns the cryptocurrency as a result of its mining activity. The amount of revenue recognized is measured with reference to the spot price of the cryptocurrency to standard currencies on the date when it is earned.

(t)

Revenue from lease arrangements as lessor (ASC 842, Lease)

From July 2019, the Company started to generate revenue from the leases of mining equipment for Bitcoin mining to its customers. The leases cannot generally be extended or terminated at the customer’s discretion. However, upon the mutual agreement of the parties, the leases can be early terminated after three months. Rental charges are computed based on a time rate of machine’s type and rental period. The leases of mining equipment meet the classification of operating leases, and revenues from operating leases are recognized on a straight-line basis over the contract terms. The Company ceased leasing mining equipment in the the second quarter of 2021.

(

)

Value-added-tax

(“VAT”) recoverable and surcharges

Value added tax recoverable represent amounts paid by the

Company

for purchases. The surcharges (i.e., Urban construction and maintenance tax, educational surtax, local educational surtax), vary from 6% to 12%

the

value-added-tax

paid depending on the taxpayer’s location.

(v)

Cost of revenues

Amounts recorded as cost of revenues relate to direct expenses incurred to generate revenue. Such costs are recorded as incurred. Cost of revenues primarily consists of product costs, including costs of raw material, contractual manufacturers for production, labor costs, shipping and handling costs, manufacturing and depreciation, warehousing costs and slow-moving, obsolete inventories write-downs, prepayments write-downs and tax surcharges.

(w)

Research and development expenses

Research and development expenses consist primarily of salary and welfare for research and development personnel, consulting and contractor expenses, testing and tooling materials and other expenses in associated with research and development personnel. The Company recognizes research and development expenses as expense when incurred.

(

)

Sales and marketing expenses

Sales and marketing expenses consist primarily of salary and welfare for sales and marketing personnel, promotion and marketing expenses and other expenses in associated with sales and marketing personnel.

Advertising expense are expensed as incurred and included in selling and marketing expenses. The advertising expenses were RMB2,377, RMB3,701 and RMB4,461 for the years ended December 31, 2019, 2020 and 2021, respectively.

(y)

General and administrative expenses

General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses and depreciation in associated with general and administrative personnel, allowance for doubtful receivables, entertainment expense, general office expense and professional service fees.

(z)

Government grants

Government grants represent cash subsidies received from PRC government. Cash subsidies which have no defined rules and regulations to govern the criteria necessary for companies to enjoy the benefits are recognized as “Other income, net” when received. Total government grants received were RMB24,926, RMB32,499 and RMB5,699 for the years ended December 31, 2019, 2020 and 2021, respectively.

(aa)

Lease arrangement as lessee

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease

right-of-use

(“ROU”) assets, operating lease liability, and operating lease liability,

non-current

in the Company’s consolidated balance sheets.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease.

The Company has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less and the Company recognizes lease expense for these leases on a straight-line basis over the lease terms.

(ab)

Employee social security and welfare benefits

Employees of the Company in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated defined contribution plan. The Company is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government.

The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Company’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the consolidated statements of comprehensive

income (loss)

amounted

to RMB23,026, RMB14,919 and RMB27,740 for the years ended December 31, 2019, 2020 and 2021, respectively.

(ac)

Income

taxes

The Company accounts for income taxes under the liability method. Under the liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the tax income rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded if it is more likely than not that some portion or all deferred income tax asset will not be realized in the foreseeable future.

(ad)

Share-based compensation

The Company grants restricted shares and share options to eligible employees and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation.

Employees’ share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at the grant date if no vesting conditions are required; or b) for share-based awards granted with only service conditions, using the graded vesting method, net of estimated forfeitures, over the vesting period; or c) for share-based awards granted with service conditions and the occurrence of an IPO as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the IPO, using the graded vesting method; or d) for share-based awards with service conditions and other performance condition, using the graded vesting method, net of estimated

pre-vesting

forfeitures, over the vesting period.

A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Company calculates incremental compensation expense of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Company recognizes incremental compensation cost in the period when the modification occurs. For awards not being fully vested, the Company recognizes the sum of the incremental compensation expense and the remaining unrecognized compensation expense for the original awards over the remaining requisite service period after modification.

Share-based compensation in relation to the restricted shares is measured based on the fair market value of the Company’s ordinary shares at the grant date of the award. Prior to the listing, estimation of the fair value of the Company’s ordinary shares involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, including discount rate, and subjective judgments regarding the Company’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. Share-based compensation in relation to the share options is estimated using the Binomial Model. The determination of the fair value of share options is affected by the share price of the Company’s ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple and expected dividend yield. The fair value of these awards was determined by management with the assistance from an independent valuation firm.

(ae)

Statutory reserves

The Company’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of

after-tax

profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”).

Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The

Company

is not required to make appropriation to other reserve funds and the

Company

does not have any intentions to make appropriations to any other reserve funds.

The general reserve fund can only be used for specific purposes, such as offsetting the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves.

There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Company has not done so.

Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to Canaan Inc. in terms of cash dividends, loans or advances.

The Company

has made nil, nil and RMB113 appropriations to statutory reserve for the years ended December 31, 2019, 2020 and 2021, respectively.

(af)

Repurchase of share

The Company accounts for treasury stock using the cost method. Under the cost method, when the Company’s shares are acquired for purposes other than retirement, the costs of the acquired stock will be shown separately as a deduction from the total of capital stock.

(ag)

Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the period. Dilutive equivalent shares are excluded from the computation of diluted earnings (loss) per share if their effects would be anti-dilutive. ordinary share equivalents consist of the ordinary shares issuable in connection with the Company’s ordinary shares issuable upon the conversion of the share-based awards, using the treasury stock method.

(ah)

Comprehensive income (loss)

Comprehensive income (loss) is defined as the change in shareholders’ equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders.

Comprehensive income (loss) is reported in the consolidated statements of comprehensive income (loss). Accumulated other comprehensive loss of the Company include the foreign currency translation adjustments.

(ai)

Segment reporting

Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision makers in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Company does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Company has only one operating segment and one reportable segment.

All the long-lived assets, net as of December 31, 2021 were located in the PRC, except for RMB146,881 long-lived assets, net were located in

Central Asia

. The Company’s revenue segregated by geographic region is disclosed below.

The geographical region of revenue generated is based on the location at which the goods delivered or the services were provided:


Geographic region	For the Years Ended December 31,
	2019		2020		2021
Mainland China		1,063,630		379,418		1,779,923
Kazakhstan		—		47,792		711,596
Cyprus		—		—		633,322
Canada		22,738		162		402,489
Australia		3,591		114		361,377
United States of America		46,045		3,528		312,722
Thailand		171		31		289,013
Sverige		326		8		152,127
Hong Kong Special Administrative Region		11,216		12,301		87,971
Japan		236,206		—		3
Other foreign countries		38,700		4,332		256,163

Total		1,422,623		447,686		4,986,706

(aj)

Recently issued accounting pronouncements

New and amended standards adopted by the Company:

In January 2020, the FASB issued Accounting Standards Update No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarified that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments also clarified that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in paragraph 815-10-15-141 to determine the accounting for those forward contracts and purchased options. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted this guidance on January 1, 2021 and it did not have a material effect on the Company’s consolidated financial statements.

ii.

New and amended standards not yet adopted by the Company:

In June 2016, the FASB issued ASU

No. 2016-13,

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU

2016-13”).

ASU 2016-13 was further amended in November 2018 by ASU 2018-19 and in November 2019 by ASU 2019-10. This guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability. The guidance is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2019. For all other entities, it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As the Company is an “emerging growth company” and elects to apply for the new and revised accounting standards for the fiscal year beginning after December 15, 2022. The Company is currently evaluating the impact.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarify existing guidance. The guidance is effective for public business entities for annual reporting periods, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, it is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The standard is effective for the Company for fiscal years beginning after 15 December 2021, and interim periods within fiscal years beginning after 15 December 2022. Early adoption is permitted. The Company adopted this guidance on January 1, 2022 and it did not have a material effect on the Company’s consolidated financial statements.

In August 2020, the FASB issued Accounting Standards Update 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. The amendments in this Update are effective for public business entities, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. ASU 2020-06 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company does not plan to early adopt the new guidance and will assess the impact before adoption.

Summary of significant accounting policies - Summary of Cash and Cash Equivalents (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents, at Carrying Value	¥ 2,684,342	$ 421,232	¥ 391,310
CHINA
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents, at Carrying Value	39,746		0
Overseas [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents, at Carrying Value	317		1
China, Yuan Renminbi \| CHINA
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents, at Carrying Value	1,167,445		110,241
United States of America, Dollars \| CHINA
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents, at Carrying Value	1,447,336		248,716
United States of America, Dollars \| Overseas [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents, at Carrying Value	¥ 29,498		¥ 32,352

Income Taxes - Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
PRC statutory income tax rates	25.00%	(25.00%)	(25.00%)
Permanent book – tax difference	1.40%	(4.50%)	3.30%
Share-based compensation	3.40%	0.20%	5.80%
Super deduction of R&D expense	(2.60%)	(5.70%)	(1.50%)
Others	0.60%	1.00%	(1.00%)
Different tax rates in other jurisdictions	(2.20%)	2.00%	0.40%
Effect of tax holiday	(7.80%)	4.40%	8.40%
Change in valuation allowance	(14.00%)	23.10%	12.90%
Total	2.40%	0.00%	0.00%
Effects of tax holidays entitled by the PRC subsidiaries	¥ 160,246	¥ (9,553)	¥ (87,043)
Class A and ClassB [Member]
Income Taxes [Line Items]
Effects of tax holidays entitled by the PRC subsidiaries on basic (loss) earnings per Class A and Class B ordinary share (RMB cent per share)	¥ 6.35	¥ (0.41)	¥ (4.04)

Cryptocurrency (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Cryptocurrency


	As of December 31, 2021
Gross carrying amount		21,371
Less: Impairment of cryptocurrency		(1,061	)

Net		20,310

Condensed Financial Information of the Parent Company - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021
Subsidiaries
Condensed Financial Statements Captions [Line Items]
Restricted net assets as percentage of consolidated and unconsolidated subsidiaries	25.00%

Organization and Principal Activities - Schedule of Subsidiaries (Details)	12 Months Ended
	Dec. 31, 2021
Canaan Creative (HK) Holdings Limited
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Canaan Creative (HK) Holdings Limited
Date of incorporation	Feb. 22, 2018
Place of incorporation	Hong Kong Special Administrative Region
Equity interest held	100.00%
Principal activities	Research and development of ICs
Canaan Creative Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Canaan Creative Co., Ltd.
Date of incorporation	Apr. 01, 2013
Place of incorporation	Beijing, China
Equity interest held	100.00%
Principal activities	Research and development of ICs
Langfang Creative Technology Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Langfang Creative Technology Co., Ltd.
Date of incorporation	May 15, 2014
Place of incorporation	Langfang, China
Equity interest held	100.00%
Principal activities	Assembly of mining equipment and spare parts
Canaan Convey Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Canaan Convey Co., Ltd.
Date of incorporation	Nov. 02, 2017
Place of incorporation	Beijing, China
Equity interest held	100.00%
Principal activities	International distribution of mining equipment and spare parts
Zhejiang Avalon Technology Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Zhejiang Avalon Technology Co., Ltd.
Date of incorporation	Dec. 05, 2017
Place of incorporation	Hangzhou, China
Equity interest held	100.00%
Principal activities	Distribution of mining equipment and spare parts
Hangzhou Canaan Chuangxin Technology Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Hangzhou Canaan Chuangxin Technology Co., Ltd.
Date of incorporation	Dec. 26, 2018
Place of incorporation	Hangzhou, China
Equity interest held	100.00%
Principal activities	Research and development of ICs
Canaan Creative (SH) Co., Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Canaan Creative (SH) Co., Ltd.
Date of incorporation	Jan. 27, 2021
Place of incorporation	Shanghai, China
Equity interest held	100.00%
Principal activities	Research and development of ICs
Canaan Creative International PTE Limited
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Canaan Creative International PTE. Ltd.
Date of incorporation	Mar. 09, 2021
Place of incorporation	Singapore
Equity interest held	100.00%
Principal activities	International distribution of mining equipment and spare parts
Hangzhou Canaan Intelligence Information Technology Co., Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Hangzhou Canaan Intelligence Information Technology Co., Ltd.
Date of incorporation	Apr. 09, 2013
Place of incorporation	Hangzhou, China
Equity interest held	100.00%
Principal activities	Research and development of ICs
Canaan Bright Sight Co., Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Name of subsidiaries	Canaan Bright Sight Co., Ltd.
Date of incorporation	Dec. 24, 2018
Place of incorporation	Beijing, China
Equity interest held	100.00%
Principal activities	International distribution of AI products

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets
Tax losses carried forward	¥ 102,239	¥ 286,044
Write-down of inventories	10,771	16,840
Warranty reserve	2,704	0
Allowance for doubtful accounts	1,314	1,744
Unrealized gain from intracompany sale	0	162
Subtotal	117,028	304,790
Less: Valuation allowance	(17,984)	(304,790)	¥ (254,039)	¥ (119,065)
Deferred tax assets	¥ 99,044	¥ 0

Risks and Concentration - Additional Information (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Accounts receivable current	¥ 367	$ 58	¥ 7,128
Credit Concentration Risk [Member]
Accounts receivable current	¥ 367		¥ 7,128

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

The Company leases facilities under

non-cancellable

operating leases expiring on different dates. The terms of substantially all these leases are three years or less. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. All the Company’s leases qualify as operating leases. Variable lease cost and short-term leases (lease terms less than 12 months) are recognized as incurred.

(a)

The components of lease expenses were as follows:


	For the Years Ended December 31,
	2019		2020		2021
Lease cost:
Reduction in the carrying amount of ROU assets		10,928		13,432		17,584
Interest of lease liabilities		1,746		1,938		1,613
Expenses for short-term lease within 12 months		605		505		443

Total lease cost		13,279		15,875		19,640

(b)

Supplemental cash flow information related to leases was as follows:


	For the Years Ended December 31,
	2019		2020		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		11,228		14,322		20,739
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		—		5,516		36,672
Reductions to ROU assets resulting from reductions to lease obligations:
Operating leases		—		427		2,590

(c)

Supplemental balance sheet information related to leases was as follows:

As of December 31,

2019

2020

2021

Weighted-average remaining lease term

Operating leases

1.2 year

1.3 year

2.4 year

Weighted-average discount rate

Operating lease

7.14% per annum

6.73% per annum

5.17% per annum


Years Ending December 31,	As of December 31, 2021

2022		14,917
2023		13,867
2024 and thereafter		4,222
Total undiscounted lease payments		33,006
Less: imputed interest		(1,895	)

Total lease liabilities		31,111

Amounts due within 12 month s		14,819
Non-current lease liability		16,292

Short-Term Debts - Additional Information (Details) - Short-Term Loan Agreement ¥ in Thousands	Dec. 31, 2020 CNY (¥)
Interest Rate 2.70%
Short-term Debt [Line Items]
Debt instrument, aggregated principal amount	¥ 35,000
Debt instrument, interest rates	2.84%
Interest Rate Range - 2.70% to 2.85%
Short-term Debt [Line Items]
Debt instrument, aggregated principal amount	¥ 152,000
Interest Rate Range - 4.35% to 4.79%
Short-term Debt [Line Items]
Debt instrument, aggregated principal amount	¥ 200,000
Minimum \| Interest Rate Range - 2.70% to 2.85%
Short-term Debt [Line Items]
Debt instrument, interest rates	2.70%
Minimum \| Interest Rate Range - 4.35% to 4.79%
Short-term Debt [Line Items]
Debt instrument, interest rates	4.35%
Maximum \| Interest Rate Range - 2.70% to 2.85%
Short-term Debt [Line Items]
Debt instrument, interest rates	2.85%
Maximum \| Interest Rate Range - 4.35% to 4.79%
Short-term Debt [Line Items]
Debt instrument, interest rates	4.79%

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 2,684,342	$ 421,232	¥ 391,310
Restricted cash	47,362	7,432	4,494
Short-term investments			62,386
Accounts receivable, net	367	58	7,128
Inventories	812,363	127,477	225,522
Prepayments and other current assets	1,729,027	271,323	316,366
Total current assets	5,273,461	827,522	1,007,206
Non-current assets:
Cryptocurrency	20,310	3,187
Property, equipment and software	185,566	29,119	12,193
Right-of-use assets, net	30,920	4,852	14,422
Deferred tax assets	99,044	15,542
Other non-current assets	2,956	464	2,530
Non-current financial investment	20,000	3,138	25
Total non-current assets	358,796	56,302	29,170
Total assets	5,632,257	883,824	1,036,376
Current liabilities:
Short-term debts			34,754
Accounts payable	143,441	22,509	37,407
Notes payable			13,963
Contract liabilities	1,340,731	210,390	430,388
Income tax payable	148,719	23,337
Accrued liabilities and other current liabilities	437,394	68,637	63,343
Lease liabilities, current	14,819	2,325	12,621
Total current liabilities	2,085,104	327,198	592,476
Non-current liabilities:
Lease liabilities, non-current	16,292	2,557	3,322
Other non-current liabilities	5,824	914	8,020
Warrant liability	66,347	10,411
Total liabilities	2,173,567	341,080	603,818
Contingencies (Note 19)
Shareholders' equity:
Ordinary shares (US$0.00000005 par value; 1,000,000,000,000 shares authorized, 2,372,222,222 shares issued and 2,328,326,132 shares outstanding as of December 31, 2020, and 2,804,138,492 shares issued and 2,577,386,552 shares outstanding as of December 31, 2021, respectively)	1		1
Subscriptions receivable from shareholders	(1)		(1)
Treasury stocks (US$0.00000005 par value; 43,896,090 and 226,751,940 shares as of December 31, 2020 and 2021, respectively)	(231,281)	(36,293)	(23,915)
Additional paid-in capital	2,891,134	453,682	1,634,619
Statutory reserves	97,420	15,287	97,307
Accumulated other comprehensive loss	(101,925)	(15,994)	(79,780)
Retained earnings (accumulated deficit)	803,342	126,062	(1,195,673)
Total shareholders' equity	3,458,690	542,744	432,558
Total liabilities and shareholders' equity	¥ 5,632,257	$ 883,824	¥ 1,036,376

Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions

Related party transactions

For the years ended December 31, 2019, 2020 and 2021, the related party transactions are as follows:


	For the Years Ended December 31,
	2019		2020		2021
Transaction amount with related parties
Disposal of motor vehicles		—		637		—

		—		637		—

As of December 31, 2020 and 2021, there are no related party balances.

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of preparation

(a)

Basis of preparation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below.

Use of estimates

(b)

Use of estimates

Consolidation

(c)

Consolidation

Functional currency and foreign currency translation

(d)

Functional currency and foreign currency translation

Foreign Currency Matters

Transactions denominated in other than the functional currencies are

re-measured

into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are

re-measured

at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income (loss) as foreign exchange related gains or loss.

Convenience translation

(e)

Convenience translation

The United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into

US$ for the convenience of the reader were calculated at the rate of US$1.00=RMB

6.3726

December 3

Warrant Liability [Policy Text Block]

(f)

Warrant Liability

Fair value of financial instruments

(g)

Fair value of financial instruments

The three levels of inputs that may be used to measure fair value include:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, for the assets or liabilities either directly or indirectly.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments,

non-current

financial investments, accounts receivable, accounts payable, short-term debts, notes payable and other liabilities.

On a recurring basis, the Company measures its short-term investments and warrant liability at fair value.

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

As of December 31, 2020

Level 1

Level 2

Level 3

Balance at

fair value

Assets

Short-term investments

—

62,386

—

62,386

As of December 31, 202

Level 1

Level 2

Level 3

Balance at

fair value

Liabilities

Warrant liability

—

66,347

Cash and cash equivalents

(h)

Cash and cash equivalents

Cash and cash equivalents include cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use.


	As of December 31,
	2020		2021
RMB denominated bank deposits with financial institutions in the PRC		110,241		1,167,445
US dollar denominated bank deposits with financial institutions in the PRC		248,716		1,447,336
Others denominated bank deposits with financial institutions in the PRC		-		39,746
US dollar denominated bank deposits with overseas financial institutions PRC		32,352		29,498
Others denominated bank deposits with overseas financial institutions		1		317

Total		391,310		2,684,342

2020

with

large financial institutions in the PRC mainland, Hong Kong, United States and Singapore with acceptable credit rating.

Restricted cash

(i)

Restricted cash

Short-term investments

(j)

Short-term investments

RMB3,055, RMB5,844 and RMB277

in the consolidated

statements of comprehensive income (loss) for the years ended December 31, 2019, 2020 and 2021, respectively.

Accounts receivable

(k)

Accounts receivable

Inventories

(l)

Inventories

In accordance with ASC

855-

-55-1(b),

Cryptocurrency

(m)

Cryptocurrency

earned.

Operating lease assets

(n)

Operating lease assets

Operating lease assets consist of lease contracts for mining equipment for Bitcoin mining with customers,

Company

Property, equipment and software

(

)

Property, equipment and software


		Leasehold improvements		the shorter of their useful lives and the lease terms
		Computers and electronic equipment		3 to 5 years
		Mechanical equipment		5 years
		Mining equipment		1.5 years
		Motor vehicles		5 years
		Software		3 years

Non-current financial investment

(

)

Non-current

financial investment

The Company’s

non-current

in-substance

common stock, and is measured and recorded using a measurement alternative that measures the

non-current

financial investment at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. The carrying value of the Company’s

non-current

financial investment measured under cost minus impairment were RMB25 and RMB20,000 as of December 31, 2020 and 2021.

During the year ended December 31, 2020 and 2021, the Company recognized impairment charge of RMB2,475

and RMB25 recorded in other income, net.

Impairment of long-lived assets

(q)

Impairment of long-lived assets

Contract liabilities

(r)

Contract liabilities

Cash proceeds received from customers before product delivery is recognized as contract liabilities and is recognized as revenues when revenue recognition criteria are met.

Revenue from contracts with customers (ASC 606)

(s)

Revenue from contracts with customers (ASC 606)

Products revenue

period-end

period-end.

of RMB22,392, RMB11,455 and nil, respectively.

in 2021.

The Company

offers a standard product warranty of 360 days that the product will operate under normal use. At

Services revenue

Mining revenue

Revenue from lease arrangements as lessor (ASC 842)

(t)

Revenue from lease arrangements as lessor (ASC 842, Lease)

Value-added-tax ("VAT") recoverable and surcharges

(

)

Value-added-tax

(“VAT”) recoverable and surcharges

Value added tax recoverable represent amounts paid by the

Company

for purchases. The surcharges (i.e., Urban construction and maintenance tax, educational surtax, local educational surtax), vary from 6% to 12%

the

value-added-tax

paid depending on the taxpayer’s location.

Cost of revenues

(v)

Cost of revenues

Research and development expenses

(w)

Research and development expenses

Sales and marketing expenses

(

)

Sales and marketing expenses

General and administrative expenses

(y)

General and administrative expenses

Government grants

(z)

Government grants

Lease arrangement as lessee

(aa)

Lease arrangement as lessee

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease

right-of-use

(“ROU”) assets, operating lease liability, and operating lease liability,

non-current

in the Company’s consolidated balance sheets.

Employee social security and welfare benefits

(ab)

Employee social security and welfare benefits

income (loss)

amounted

to RMB23,026, RMB14,919 and RMB27,740 for the years ended December 31, 2019, 2020 and 2021, respectively.

Income taxes

(ac)

Income

taxes

The Company evaluates its uncertain tax positions using the provisions of ASC

740-10,

Income Taxes

, which prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements. The Company recognizes in the financial statements the benefit of a tax position which is ‘‘more likely than not’’ to be sustained under examination based solely on the technical merits of the position assuming a review by tax authorities having all relevant information. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. It is the Company’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense.

Share-based compensation

(ad)

Share-based compensation

The Company grants restricted shares and share options to eligible employees and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation.

pre-vesting

forfeitures, over the vesting period.

Statutory reserves

(ae)

Statutory reserves

The Company’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of

after-tax

profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”).

Company

is not required to make appropriation to other reserve funds and the

Company

does not have any intentions to make appropriations to any other reserve funds.

There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Company has not done so.

The Company

has made nil, nil and RMB113 appropriations to statutory reserve for the years ended December 31, 2019, 2020 and 2021, respectively.

Repurchase of share

(af)

Repurchase of share

Earnings (loss) per share

(ag)

Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period.

Comprehensive income (loss)

(ah)

Comprehensive income (loss)

Segment reporting

(ai)

Segment reporting

All the long-lived assets, net as of December 31, 2021 were located in the PRC, except for RMB146,881 long-lived assets, net were located in

Central Asia

. The Company’s revenue segregated by geographic region is disclosed below.

The geographical region of revenue generated is based on the location at which the goods delivered or the services were provided:


Geographic region	For the Years Ended December 31,
	2019		2020		2021
Mainland China		1,063,630		379,418		1,779,923
Kazakhstan		—		47,792		711,596
Cyprus		—		—		633,322
Canada		22,738		162		402,489
Australia		3,591		114		361,377
United States of America		46,045		3,528		312,722
Thailand		171		31		289,013
Sverige		326		8		152,127
Hong Kong Special Administrative Region		11,216		12,301		87,971
Japan		236,206		—		3
Other foreign countries		38,700		4,332		256,163

Total		1,422,623		447,686		4,986,706

Recently issued accounting pronouncements

(aj)

Recently issued accounting pronouncements

New and amended standards adopted by the Company:

ii.

New and amended standards not yet adopted by the Company:

In June 2016, the FASB issued ASU

No. 2016-13,

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU

2016-13”).

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Ordinary shares, par value	$ 0.00000005	$ 0.00000005
Ordinary shares, shares authorized	1,000,000,000,000	1,000,000,000,000
Ordinary shares, shares issued	2,804,138,492	2,372,222,222
Ordinary shares, shares outstanding	2,577,386,552	2,328,326,132
Treasury stocks, par value	$ 0.00000005	$ 0.00000005
Treasury stock, shares	226,751,940	43,896,090

Summary of significant accounting policies - Schedule of Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2021
Leasehold Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	the shorter of their useful lives and the lease terms
Computers and Electronic Equipment \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful lives	3 years
Computers and Electronic Equipment \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Mechanical Equipment
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Mining Equipment [Member]
Property Plant And Equipment [Line Items]
Estimated useful lives	1 year 6 months
Motor Vehicles
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Software
Property Plant And Equipment [Line Items]
Estimated useful lives	3 years

Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands				1 Months Ended		12 Months Ended
	May 03, 2021 CNY (¥) shares	Nov. 25, 2020 shares	Nov. 21, 2019 USD ($) $ / shares shares	May 31, 2019 shares	Feb. 28, 2019 CNY (¥) shares	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2020 $ / shares shares	Feb. 28, 2019 $ / shares	Jun. 30, 2018 CNY (¥) shares	Jun. 30, 2018 $ / shares	Mar. 23, 2018 CNY (¥) shares	Mar. 23, 2018 $ / shares
Class Of Stock [Line Items]
Authorized share capital amount \| ¥												¥ 50,000		¥ 50,000
Ordinary shares, shares authorized							1,000,000,000,000			1,000,000,000,000		1,000,000,000,000
Ordinary shares, shares issued							2,804,138,492			2,372,222,222		500,000,000		500,000,000
Ordinary shares, par value \| $ / shares							$ 0.00000005			$ 0.00000005			$ 0.00000005		$ 0.0001
Issuance of ordinary shares (in shares)	4,047,620			233,217,776	222,222,222
Issuance of ordinary shares \| ¥									¥ 669,559
Shares issued, price per share \| $ / shares											$ 0.45
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance- \| ¥									544,122
Ordinary shares, shares outstanding							2,577,386,552			2,328,326,132
Class of warrant or right, number of securities called by warrants or rights	674,603
Fair value of the warrant liability	¥ 258,782					¥ (190,178)	$ (29,843)	¥ 0	¥ 0
Proceeds from Issuance of Common Stock \| ¥	770,673
cash consideration \| ¥					¥ 100
American Depositary Shares
Class Of Stock [Line Items]
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance- \| $			$ 90,000
Class A Common Shares
Class Of Stock [Line Items]
Shares issued upon conversion		45,000,000
Issuance of ordinary shares \| ¥	¥ 1,029,455
Common stock vote per share						one vote	one vote
Ordinary shares, shares outstanding							2,265,762,108
Class of warrant or right, number of securities called by warrants or rights	10,119,045
Class B Common Shares
Class Of Stock [Line Items]
Shares converted		45,000,000
Common stock vote per share						fifteen votes	fifteen votes
Ordinary shares, shares outstanding							311,624,444
Initial Public Offering
Class Of Stock [Line Items]
Number of ordinary shares in each american depositary share			15
Initial Public Offering \| American Depositary Shares
Class Of Stock [Line Items]
Issuance of ordinary shares (in shares)			10,000,000
Institutional Investors [Member]
Class Of Stock [Line Items]
Issuance of ordinary shares (in shares)	13,492,065				403,157
Institutional Investors [Member] \| American Depositary Shares
Class Of Stock [Line Items]
Shares issued, price per share \| $ / shares			$ 9.00
Institutional Investors [Member] \| Class A Common Shares
Class Of Stock [Line Items]
Issuance of ordinary shares (in shares)	202,380,975
Class of warrant or right, number of securities called by warrants or rights	60,714,300

Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Accrued Liabilities and Other Liabilities [Abstract]
VAT payable	¥ 128,939		¥ 0
Withholding tax payables due to restricted share units (Note a)	126,198		0
Salary and welfare payable	118,712		25,148
Other tax payables	19,128		874
Warranty reserve	18,026		0
Customer refund	10,738		0
VAT received from customers related to contract liabilities	2,427		28,958
Rental deposits	2,120		4,011
Refund from depository bank – current	2,013		2,060
Others	9,093		2,292
Total	437,394	$ 68,637	63,343
Other non-current liabilities
Refund from depository bank – non-current	¥ 5,824		¥ 8,020

Condensed Financial Information of the Parent Company - Schedule of Condensed Statements of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands		12 Months Ended
	May 03, 2021 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Cost of revenues and operating expenses:
Cost of revenues		¥ 2,135,961	$ 335,179	¥ 409,922	¥ 1,938,626
Research and development expenses		(332,846)	(52,231)	(140,041)	(168,982)
Sales and marketing expenses		(100,467)	(15,765)	(19,980)	(21,917)
General and administrative expenses		(589,107)	(92,444)	(131,624)	(347,633)
Interest income		7,310	1,147	3,153	3,853
Other income, net		6,410	1,006	30,958	25,093
Change in fair value of warrant liability	¥ 258,782	(190,178)	(29,843)	0	0
Net income (loss)		2,000,282	313,886	(215,094)	(1,034,510)
Total comprehensive income (loss)		1,978,137	310,411	(239,332)	(1,024,822)
Parent Company
Cost of revenues and operating expenses:
Cost of revenues		(269)	(42)
Research and development expenses		(99,173)	(15,562)	(652)	(22,465)
Sales and marketing expenses		(8,239)	(1,293)	(41)	(358)
General and administrative expenses		(390,448)	(61,270)	(2,277)	(247,426)
Loss from operations		(498,129)	(78,167)	(2,970)	(270,249)
Interest income		1			5
Other income, net		2,037	320	2,425
Change in fair value of warrant liability		190,178	29,843
Share of income (losses) from subsidiaries		2,306,195	361,892	(214,549)	(764,266)
Net income (loss)		2,000,282	313,888	(215,094)	(1,034,510)
Foreign currency translation adjustment, net of nil tax		(22,145)	(3,475)	(24,238)	9,688
Total comprehensive income (loss)		¥ 1,978,137	$ 310,413	¥ (239,332)	¥ (1,024,822)

Prepayments and Other Assets - Summary of Prepayments and Other Assets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Prepayments and other current assets
Prepayments to vendors	¥ 1,427,820		¥ 203,063
VAT recoverable	260,571		87,879
Prepayment for repurchase of ordinary shares	15,901		15,825
VAT refund for export sales	14,041		5,510
Others	10,694		4,089
Prepayments and other current assets	1,729,027	$ 271,323	316,366
Other non-current assets
Rental and other deposits	¥ 2,956		¥ 2,530

Property, Equipment and Software - Schedule of Property, Equipment and Software (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Property, Equipment and Software [Line Items]
Total cost	¥ 210,052		¥ 36,592
Less: Accumulated depreciation and amortization	(24,486)		(24,399)
Property, equipment and software, net	185,566	$ 29,119	12,193
Mining Equipment [Member]
Property, Equipment and Software [Line Items]
Total cost	146,881		0
Computers and Electronic Equipment
Property, Equipment and Software [Line Items]
Total cost	27,492		14,540
Leasehold Improvements
Property, Equipment and Software [Line Items]
Total cost	21,412		17,130
Mechanical Equipment
Property, Equipment and Software [Line Items]
Total cost	7,694		1,181
Software
Property, Equipment and Software [Line Items]
Total cost	5,438		1,955
Construction in Progress
Property, Equipment and Software [Line Items]
Total cost	665		1,325
Motor Vehicles
Property, Equipment and Software [Line Items]
Total cost	¥ 470		¥ 461

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares	Dec. 31, 2019 CNY (¥) ¥ / shares shares
Net revenues
Mining revenues	¥ 21,688	$ 3,403
Leases revenue	7,556	1,186	¥ 18,963	¥ 24,548
Other revenues	347	54	901	2,548
Total net revenues	4,986,706	782,522	447,686	1,422,623
Cost of revenues	(2,135,961)	(335,179)	(409,922)	(1,938,626)
Gross profit (loss)	2,850,745	447,343	37,764	(516,003)
Operating expenses:
Research and development expenses	(332,846)	(52,231)	(140,041)	(168,982)
Sales and marketing expenses	(100,467)	(15,765)	(19,980)	(21,917)
General and administrative expenses	(589,107)	(92,444)	(131,624)	(347,633)
Total operating expenses	(1,022,420)	(160,440)	(291,645)	(538,532)
Income (loss) from operations	1,828,325	286,903	(253,881)	(1,054,535)
Interest income	7,310	1,147	3,153	3,853
Change in fair value of warrant liability	190,178	29,843	0	0
Investment income	277	43	5,844	3,055
Interest expense and guarantee fee \| ¥			(3,587)	(20,038)
Foreign exchange gains, net	17,890	2,807	2,419	6,809
Value added tax refunds \| ¥				1,253
Other income, net	6,410	1,006	30,958	25,093
Income (loss) before income tax expense	2,050,390	321,749	(215,094)	(1,034,510)
Income tax expense	(50,108)	(7,863)	0	0
Net income (loss)	2,000,282	313,886	(215,094)	(1,034,510)
Foreign currency translation adjustment, net of nil tax	(22,145)	(3,475)	(24,238)	9,688
Total comprehensive income (loss)	¥ 1,978,137	$ 310,411	¥ (239,332)	¥ (1,024,822)
Weighted average number of shares used in per Class A and Class B ordinary share calculation:
— Basic \| shares	2,521,667,815	2,521,667,815	2,345,703,779	2,153,172,769
— Diluted \| shares	2,576,157,247	2,576,157,247	2,345,703,779	2,153,172,769
Net earnings (loss) per Class A and Class B ordinary share (cent per share)
— Basic \| (per share)	¥ 79.32	$ 12.45	¥ (9.17)	¥ (48.05)
— Diluted \| (per share)	¥ 77.65	$ 12.18	¥ (9.17)	¥ (48.05)
Share-based compensation expenses were included in:
Share-based compensation expenses	¥ 491,461	$ 77,120	¥ 2,950	¥ 270,242
Cost of revenues
Share-based compensation expenses were included in:
Share-based compensation expenses	269	42
Research and development expenses
Share-based compensation expenses were included in:
Share-based compensation expenses	99,173	15,562	652	22,465
Sales and marketing expenses
Share-based compensation expenses were included in:
Share-based compensation expenses	8,240	1,293	41	358
General and administrative expenses
Share-based compensation expenses were included in:
Share-based compensation expenses	383,779	60,223	2,257	247,419
Product
Net revenues
Net revenues	4,956,891	777,844	427,522	1,392,859
Service
Net revenues
Net revenues	¥ 224	$ 35	¥ 300	¥ 2,668

Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term Operating leases	2 years 4 months 24 days	1 year 3 months 18 days	1 year 2 months 12 days
Weighted-average discount rate Operating lease	5.17%	6.73%	7.14%

Treasury Stock

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Treasury Stock

Treasury stocks

2018 Equity Incentive Plan

In April 2018, the Company established a trust to hold 51,624,000 of the Company’s issued ordinary shares. These ordinary shares were contributed by the

Co-Founders

and employees and held in a trust (the “Trust”) for the benefit of the employees who are under the 2018 Equity Incentive Plan (Note 1

In February 2019, 403,157 issued ordinary shares were contributed by the then existing shareholders to the Trust for future share awards.

The ordinary shares issued to the Trust are accounted for as treasury stocks of the Company and presented as such for all periods presented. The Trust does not hold any other assets or liabilities as

December 31, 2020 and 2021, nor earn any income nor incur any expenses for the years ended December 31, 2019, 2020 and 2021.

Upon the completion of the Company’s IPO in November 2019, 13,928,205 restricted share units and 16,000,000 restricted ordinary shares that have been vested under the 2018 Equity Incentive Plan (Note 1

) were transferred from treasury stocks to ordinary shares.

In 2020, 4,002,052 restricted share units were transferred from treasury stock to ordinary shares. For the year ended December 31, 2021, 5,757,945 restricted share units that have been vested were transferred from treasury stock to ordinary shares under the 2018 Incentive Plan (Note 16).

As of December 31, 2021, 12,338,955 issued ordinary shares are accounted as treasury stocks.

Amended 2018 Plan

In April 2021, the Board of Directors of the Company amended the 2018 Plan (the “Amended 2018 Plan”) (Note 16). In May and September 2021, the Company issued 94,927,065 Class A ordinary shares and 63,774,885 Class A ordinary shares, which were then reserved under the Amended 2018 Plan. For the year ended December 31, 2021, 95,816,325 restricted share units that have been vested were transferred from treasury stock to ordinary shares under the Amended 2018 Plan. Under the Amended 2018 Plan, the Company withholds the shares issued to the employees to meet the income tax withholding requirement upon the vesting of the Restricted share units. For the year ended December 31, 2021, the Company withheld 33,255,495 Class A ordinary shares for RMB150,706 and sold 13,043,895 Class A ordinary shares for RMB45,728. The Company did not retire any of the repurchased Class A ordinary shares. As of December 31, 2021, 83,097,225 issued ordinary shares are accounted as treasury stocks.

Share Repurchase Program

Effective September 9, 2020, the Board of Directors approved a share repurchase program to repurchase in the open market up to

US$10

million worth of its outstanding (i) ADS each representing 15 Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from September 22, 2020 depending on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with Canaan’s working capital requirements and general business conditions, the relevant rules under United States securities laws and regulations, and the relevant stock exchange rules.

During the year ended

December 31, 2020, total of 1,719,946 outstanding ADSs (25,799,190 shares) were repurchased but have not been retired with a total consideration of RMB23,915, which is shown as treasury stock (Note 2(a

)).

Effective September 19, 2021, the Board of Directors approved a share repurchase program to repurchase in the open market up to US$20 million worth of its outstanding (i) American Depositary Share (“ADS”) each representing 15 Class A ordinary shares, and

or (ii) Class A ordinary shares over the next 12 months starting from September 20, 2021 depending on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with Canaan’s working capital requirements and general business conditions, the relevant rules under United States securities laws and regulations, and the relevant stock exchange rules.

During the year ended December 31, 2021, total of 2,312,215 outstanding ADSs (34,683,225 shares) were repurchased but have not been retired with a total consideration of RMB103,543, which is shown as treasury stock (Note 2(af)).

As of December 31, 2021, a total of 60,482,415 repurchased ordinary shares are accounted as treasury stocks.

Summary of significant accounting policies - Summary of Assets and liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Warrant [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Warrant liability	¥ 66,347
Short-term investments
Disclosure Of Significant Accounting Policies [Line Items]
Short-term investments		¥ 62,386
Level 2 \| Short-term investments
Disclosure Of Significant Accounting Policies [Line Items]
Short-term investments		¥ 62,386
Level 3 \| Warrant [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Warrant liability	¥ 66,347

Share-Based Compensation - Additional Information (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands								1 Months Ended				12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	May 31, 2021	May 03, 2021	Apr. 30, 2021	Apr. 25, 2018	Oct. 08, 2016	Nov. 30, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2017	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share options granted												114,000,000
Exercise price of share options granted												¥ 4.90
Share-based compensation expense														¥ 44,789
Issuance of ordinary shares (in shares)				4,047,620					233,217,776	222,222,222
Employee
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of ordinary shares (in shares)									111,217,778
Fair value of ordinary shares														¥ 213,135
2018 Equity Incentive Plan \| Common Class A [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation arrangement by share based payment award cumulative annual increase percentage					15.0
Share-based compensation arrangement by share-based payment award, percentage of outstanding stock maximum					3.00%
Number of additional shares authorized for issuance under share-based payment arrangement		63,774,885	94,927,065
Amended 2018 Plan [Member] \| Common Class A [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of ordinary shares (in shares)												13,043,895
Share Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
weighted-average period for recognization of unrecognized compensation expense related to share options	27 months 11 days
Unrecognized compensation expense related to share options	¥ 332,754											¥ 332,754
Share Options \| 2016 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share options granted							39,600,000
Exercise price of share options granted							¥ 0.023
Share options vesting period description							The vesting period was from October 2016 to May 2017
Share options exercise period description							the exercise period was from June 2017 to July 2017.
Share Options \| Amended 2018 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted share units granted												114,000,000
Restricted Share Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted shares outstanding	137,243,670											137,243,670	9,040,000	15,733,334	32,030,000
Restricted share units granted												236,768,940
Restricted share units vested												101,574,270	4,002,052	13,928,205
Unrecognized compensation expense	¥ 519,951											¥ 519,951
weighted-average period for recognization of unrecognized compensation expense related to share options												34 months 10 days
Restricted Share Units \| Initial Public Offering
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted share units vested								2,000,000
Restricted Share Units \| 2017 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted share units granted											71,200,000
Exercise price of restricted share units granted											¥ 0.015
Restricted Share Units \| 2017 Equity Incentive Plan \| Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted share units vested											39,170,000
Restricted Share Units \| 2017 Equity Incentive Plan \| Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share options vesting period description												two or four service years
Restricted share units vested											30,030,000
Restricted Share Units \| 2017 Equity Incentive Plan \| Tranche Three \| Initial Public Offering
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted share units vested											2,000,000
Restricted Share Units \| Amended 2018 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted share units granted												236,768,940
Restricted Ordinary Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted shares outstanding														0	17,594,000
Restricted share units granted						19,594,000
Restricted share units vested								16,000,000						16,000,000
Restricted Ordinary Shares \| 2018 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted share units vested												95,816,325
Restricted Ordinary Shares \| Amended 2018 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted share units granted												236,768,940

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate

A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows:


	For the Years Ended December 31,
	2019			2020			2021
PRC statutory income tax rates		(25.0	)%		(25.0	)%		25.0	%
Permanent book-tax difference		3.3	%		(4.5	)%		1.4	%
Share-based compensation		5.8	%		0.2	%		3.4	%
Super deduction of R&D expense		(1.5	)%		(5.7	)%		(2.6	)%
Others		(1.0	)%		1.0	%		0.6	%
Different tax rates in other jurisdictions		0.4	%		2.0	%		(2.2	)%
Effect of tax holiday		8.4	%		4.4	%		(7.8	)%
Change in valuation allowance		12.9	%		23.1	%		(14.0	)%

Total		0.0	%		0.0	%		2.4	%

Effects of tax holidays entitled by the PRC subsidiaries		(87,043	)		(9,553	)		160,246
Effects of tax holidays entitled by the PRC subsidiaries on basic (loss) earnings per Class A and Class B ordinary share (RMB cent per share)		(4.04	)		(0.41	)		6.35

Schedule of Composition of Income Tax Expense

The current and deferred portions of income tax expense (benefit) included in the consolidated statements of comprehensive income (loss) are as follows:


	For the Years Ended December 31,
	2019		2020		2021
Current income tax expense		—		—		149,152
Deferred income tax benefits		—		—		(99,044	)

Income tax expense		—		—		50,108

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2020 and 2021 are as follows:


	As of December 31,
	2020			2021
Deferred tax assets
Tax losses carried forward		286,044			102,239
Write-down of inventories		16,840			10,771
Warranty reserve		—			2,704
Allowance for doubtful accounts		1,744			1,314
Unrealized gain from intracompany sale		162			—

Subtotal		304,790			117,028
Less: Valuation allowance		(304,790	)		(17,984	)

Deferred tax assets		—			99,044

Schedule of Movement of Valuation Allowance

Movement of valuation allowance is as follows:


	For the Years Ended December 31,
	2019		2020		2021
Beginning balance		119,065		254,039		304,790
Additions (decreases) during the year		134,974		50,751		(286,806	)

Ending balance		254,039		304,790		17,984

Inventories

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Inventories

5 .	Inventories

Inventories consist of the following:


	As of December 31,
	2020		2021
Raw materials		195,939		429,208
Finished goods		26,963		304,801
Work in process		2,620		78,354

Total		225,522		812,363

During the years ended December 31, 2019, 2020 and 2021, the Company recorded write-down

of RMB526,473, RMB44,916 and RMB50,714 for the obsolete inventories in cost of revenues, respectively.

For the years ended December 31, 2019, 2020 and 2021, at the beginning of lease period, the inventories reclassified to operating lease assets were RMB99,523, RMB135,276 and 15,169, respectively. At the end of lease period, the operating lease assets with net book value of RMB79,065, RMB115,887 and

12,051 were reclassified to inventories. Depreciation expense of operating lease assets of RMB20,458, RMB19,389 and

RMB

3,118

was recorded in the cost of revenues for the year ended December 31, 2019, 2020 and 2021. The Company ceased the asset lease business in 2021 as a result of the restriction of mining activities in the PRC.

Restricted cash - Additional Information (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	¥ 47,362	$ 7,432	¥ 4,494

Prepayments and Other Assets - Summary of Prepayments and Other Assets (Parenthetical) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allowance for credit loss, other receivables	¥ 5,517	¥ 4,606	¥ 0
Write-down for prepayments to third-party suppliers	0	0	¥ 202,522
Foundry Service [Member]
Purchase obligation to third parties	¥ 917,346	¥ 121,015

Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 2,684,342	$ 421,232	¥ 391,310
Total current assets	5,273,461	827,522	1,007,206
Non-current assets:
Total assets	5,632,257	883,824	1,036,376
Current liabilities:
Refund from depository bank – current	2,013		2,060
Non-current liabilities:
Refund from depository bank – non-current	5,824		8,020
Warrant liability	66,347	10,411
Total liabilities	2,173,567	341,080	603,818
Shareholders' equity:
Ordinary shares	1		1
Subscriptions receivable from shareholders	(1)		(1)
Treasury stocks	231,281	36,293	23,915
Additional paid-in capital	2,891,134	453,682	1,634,619
Statutory reserves	97,420	15,287	97,307
Accumulated other comprehensive loss	(101,925)	(15,994)	(79,780)
Retained earnings (accumulated deficit)	803,342	126,062	(1,195,673)
Total shareholders' equity	3,458,690	542,744	432,558	¥ 692,795	¥ 240,978
Total liabilities and shareholders' equity	5,632,257	883,824	1,036,376
Parent Company
Current assets:
Cash and cash equivalents	30,860	4,843	147
Receivables from subsidiaries	3,501,544	549,468	442,491
Total current assets	3,532,404	554,311	442,638
Non-current assets:
Investments in subsidiaries	470	74
Total assets	3,532,874	554,385	442,638
Current liabilities:
Refund from depository bank – current	2,013	316	2,060
Non-current liabilities:
Refund from depository bank – non-current	5,824	914	8,020
Warrant liability	66,347	10,411
Total liabilities	74,184	11,641	10,080
Shareholders' equity:
Ordinary shares	1		1
Subscriptions receivable from shareholders	(1)		(1)
Treasury stocks	(231,281)	(36,293)	(23,915)
Additional paid-in capital	2,891,134	453,501	1,634,619
Statutory reserves	97,420	15,287	97,307
Accumulated other comprehensive loss	(101,925)	(15,994)	(79,780)
Retained earnings (accumulated deficit)	803,342	126,243	(1,195,673)
Total shareholders' equity	3,458,690	542,744	432,558
Total liabilities and shareholders' equity	¥ 3,532,874	$ 554,385	¥ 442,638

Basic and Diluted Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares	Dec. 31, 2019 CNY (¥) ¥ / shares shares
Basic earnings (loss) per share calculation Numerator :
Net income/(loss)	¥ 2,000,282	$ 313,886	¥ (215,094)	¥ (1,034,510)
Basic and diluted net earnings/(loss) per share calculation: Denominator
Weighted-average ordinary shares outstanding	2,521,667,815	2,521,667,815	2,345,703,779	2,153,172,769
Diluted earnings (loss) per share calculation Numerator :
Net income/(loss)	¥ 2,000,282	$ 313,886	¥ (215,094)	¥ (1,034,510)
Diluted net earnings/(loss) per share calculation: Denominator
— Basic	2,521,667,815	2,521,667,815	2,345,703,779	2,153,172,769
Add: weighted-average RSUs	54,489,432	54,489,432
Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share	2,576,157,247	2,576,157,247	2,345,703,779	2,153,172,769
Diluted earnings (loss) per Class A and Class B ordinary share (RMB cent per share) \| (per share)	¥ 77.65	$ 12.18	¥ (9.17)	¥ (48.05)
Class A and Class B ordinary share [Member]
Basic and diluted net earnings/(loss) per share calculation: Denominator
Net earnings (loss) per Class A and Class B ordinary share (RMB cent per share) \| ¥ / shares	¥ 79.32		¥ (9.17)	¥ (48.05)
Diluted net earnings/(loss) per share calculation: Denominator
Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share	2,576,157,247	2,576,157,247	2,345,703,779	2,153,172,769
Diluted earnings (loss) per Class A and Class B ordinary share (RMB cent per share) \| ¥ / shares	¥ 77.65		¥ (9.17)	¥ (48.05)

Notes Payable

12 Months Ended

Dec. 31, 2021

Notes Payable [Abstract]

Notes Payable

Notes payable

Notes payable represent payables in the form of notes issued by the Company. The notes are endorsed by banks to ensure that noteholders will be paid upon maturity. The Company is required to maintain a certain balance of cash deposit in designated bank accounts for the notes payable outstanding as of December 31, 2020. Such required cash deposit o

f RMB4,494

was classified as restricted cash on the consolidated balance sheet as of December 31, 2020. No such balance of cash deposit was restricted as of December 31, 2021.

Warrants - Summary of Significant Unobservable Inputs Used In Calculation Of Warrant Liability (Detail) - Warrants To Purchase Common Stock [Member]	Dec. 31, 2021 yr
Risk Free Rate \| Maximum
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items]
Fair value of the warrant liability	0.81
Risk Free Rate \| Minimum
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items]
Fair value of the warrant liability	0.37
Volatility \| Maximum
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items]
Fair value of the warrant liability	127.93
Volatility \| Minimum
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items]
Fair value of the warrant liability	131.47
Expected dividend yield
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items]
Fair value of the warrant liability	0
Expected term \| Maximum
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items]
Fair value of the warrant liability	3
Expected term \| Minimum
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items]
Fair value of the warrant liability	2.3

Share-based compensation - Summary of Fair Values of the Share Options Granted (Detail)	12 Months Ended
	Dec. 31, 2021 ¥ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of option per share	¥ 6.63
Aggregate grant date fair value of options	¥ 465,553

Condensed Financial Information of the Parent Company (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Balance Sheets

CONDENSED BALANCE SHEETS


	As of December 31,
	2020			2021
	RMB			RMB			US$ (Note 2(e))
ASSETS
Current assets:
Cash and cash equivalents		147			30,860			4,843
Receivables from subsidiaries		442,491			3,501,544			549,468

Total current assets		442,638			3,532,404			554,311

Non-current assets:
Investments in subsidiaries		—			470			74

Total assets		442,638			3,532,874			554,385

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Refund from depository bank – current		2,060			2,013			316
Non-current liabilities:
Refund from depository bank – non-current		8,020			5,824			914
Warrant liability		—			66,347			10,411

Total liabilities		10,080			74,184			11,641

Shareholders’ equity:
Ordinary shares		1			1			—
Subscriptions receivable from shareholders		(1	)		(1	)		—
Treasury stocks		(23,915	)		(231,281	)		(36,293	)
Additional paid-in capital		1,634,619			2,891,134			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	)		803,342			126,243

Total shareholders’ equity		432,558			3,458,690			542,744

Total liabilities and shareholders’ equity		442,638			3,532,874			554,385

Schedule of Condensed Statements of Comprehensive Loss

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS


	For the year ended December 31,
	2019			2020			2021
	RMB			RMB			RMB			US$ (Note 2(e))
Cost of revenues and operating expenses:
Cost of revenues		—			—			(269	)		(42	)
Research and development expenses		(22,465	)		(652	)		(99,173	)		(15,562	)
Sales and marketing expenses		(358	)		(41	)		(8,239	)		(1,293	)
General and administrative expenses		(247,426	)		(2,277	)		(390,448	)		(61,270	)

Loss from operations		(270,249	)		(2,970	)		(498,129	)		(78,167	)

Interest income		5			—			1			—
Other income, net		—			2,425			2,037			320
Change in fair value of warrant liability		—			—			190,178			29,843
Share of income (losses) from subsidiaries*		(764,266	)		(214,549	)		2,306,195			361,892

Net income (loss)		(1,034,510	)		(215,094	)		2,000,282			313,888

Foreign currency translation adjustment, net of nil tax		9,688			(24,238	)		(22,145	)		(3,475	)

Total comprehensive income (loss)		(1,024,822	)		(239,332	)		1,978,137			310,413

Schedule of Condensed Statements of Cash Flows

CONDENSED STATEMENTS OF CASH FLOWS


	For the year ended December 31,
	2019			2020			2021
	RMB			RMB			RMB			US$ (Note 2(e))
Cash flows from operating activities
Receipt of refund from depository bank		—			13,285			—			—
Other cash used in operating activities		(39	)		(1	)		(6,462	)		(1,014	)

Net cash provided by (used in) operating activities		(39	)		13,284			(6,462	)		(1,014	)

Cash flows from investing activities
Decrease (increase) in receivables from subsidiaries		(1,252,029	)		28,451			(871,194	)		(136,709	)

Net cash provided by (used in) investing activities		(1,252,029	)		28,451			(871,194	)		(136,709	)

Cash flows from financing activities
Proceeds from issuance of ordinary shares		669,559			—			—			—
Proceeds from issuance of ordinary shares upon IPO		582,449			—			—			—
Payment for repurchase of ordinary shares		—			(23,915	)		(103,543	)		(16,248	)
Prepayment under share repurchase agreement		—			(16,146	)		(573	)		(90	)
Payment for cost of issuance		—			—			(519	)		(81	)
Proceeds from issuance of ordinary shares and warrants		—			—			1,029,455			161,544

Net cash provided by (used in) financing activities		1,252,008			(40,061	)		924,820			145,125

Net increase (decrease) in cash and cash equivalents		(60	)		1,674			47,164			7,402
Effect of exchange rate changes on cash		74			(1,541	)		(16,451	)		(2,582	)
Cash and cash equivalents, beginning of year		—			14			147			23

Cash and cash equivalents, end of year		14			147			30,860			4,843

Risks and Concentration (Tables)

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Summary of Accounts Receivable Concentration of Credit risk and Customers Contribution of Total Revenue

Accounts receivable concentration of credit risk is as below:


	As of December 31,
	2020			2021
Customer A		96	%			*
Customer B			*		52	%

*	Less than 10%

Customers which contributed more than 10% of total revenue are as below:


	For the Years Ended December 31,
	2019			2020			2021
Customer C			*		29	%			*
Customer D			*			*		18	%
Customer E		17	%			*			*
Customer F			*		16	%			*

*	Less than 10%

Basic and Diluted Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share, Basic and Diluted [Abstract]

Basic and diluted earnings (loss) per share

19.	Basic and diluted earnings (loss) per share

Basic and diluted earnings (loss) per share have been calculated in accordance with ASC 260 on computation of earnings (loss) per share for the years ended December 31, 2019, 2020 and 2021 as follows:


	For the Years Ended December 31,
	2019			2020			2021
Basic earnings (loss) per share calculation
Numerator:
Net income (loss)		(1,034,510	)		(215,094	)		2,000,282

Denominator:
Weighted-average ordinary shares outstanding		2,153,172,769			2,345,703,779			2,521,667,815

Net earnings (loss) per Class A and Class B ordinary share (RMB cent per share)		(48.05	)		(9.17	)		79.32


	For the Years Ended December 31,
	2019			2020			2021
Diluted earnings (loss) per share calculation
Numerator:
Net income (loss)		(1,034,510	)		(215,094	)		2,000,282

Denominator:
Weighted-average ordinary shares outstanding		2,153,172,769			2,345,703,779			2,521,667,815
Add: weighted-average RSUs		—			—			54,489,432

Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share		2,153,172,769			2,345,703,779			2,576,157,247

Diluted earnings (loss) per Class A and Class B ordinary share (RMB cent per share)		(48.05	)		(9.17	)		77.65

The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows:


	For the Year Ended December 31,
	2019		2020		2021
Weighted-average RSUs		13,923,725		10,710,636		—
Share options		—		—		114,000,000
Warrants		—		—		70,833,345

Basic and Diluted Earnings (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share, Basic and Diluted [Abstract]

Schedule of Earnings Per Share, Basic and Diluted


	For the Years Ended December 31,
	2019			2020			2021
Basic earnings (loss) per share calculation
Numerator:
Net income (loss)		(1,034,510	)		(215,094	)		2,000,282

Denominator:
Weighted-average ordinary shares outstanding		2,153,172,769			2,345,703,779			2,521,667,815

Net earnings (loss) per Class A and Class B ordinary share (RMB cent per share)		(48.05	)		(9.17	)		79.32


	For the Years Ended December 31,
	2019			2020			2021
Diluted earnings (loss) per share calculation
Numerator:
Net income (loss)		(1,034,510	)		(215,094	)		2,000,282

Denominator:
Weighted-average ordinary shares outstanding		2,153,172,769			2,345,703,779			2,521,667,815
Add: weighted-average RSUs		—			—			54,489,432

Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share		2,153,172,769			2,345,703,779			2,576,157,247

Diluted earnings (loss) per Class A and Class B ordinary share (RMB cent per share)		(48.05	)		(9.17	)		77.65

Effects of Outstanding RSUs Excluded From Computation of Diluted Loss Per Share Due to Anti-Dilutive Effect

The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows:


	For the Year Ended December 31,
	2019		2020		2021
Weighted-average RSUs		13,923,725		10,710,636		—
Share options		—		—		114,000,000
Warrants		—		—		70,833,345

Summary of significant accounting policies - Additional Information (Details) ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥) Segment ¥ / Segment	Dec. 31, 2021 USD ($) Segment ¥ / Segment	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 HKD ($)	Dec. 31, 2021 SGD ($)	Dec. 30, 2021
Disclosure Of Significant Accounting Policies [Line Items]
Foreign currency convenience translation of amounts from RMB into US$								6.3726
Investment income	¥ 277	$ 43	¥ 5,844	¥ 3,055
Non-current financial investment	20,000		25		$ 3,138
Impairment charge to non-current financial investment	25	$ 4	2,475	0
Operating lease asset	¥ 30,920		14,422		4,852
Operating lease assets, estimated economic useful life	18 months	18 months
Prepayment received from customers	¥ 1,340,731		430,388		210,390
Revenue recognized from contract liability	¥ 424,426		8,008	6,904
Payment terms under credit sales	The payment terms under credit sales generally consist of 50% down payment and 50% subsequent payments over a period of 90 to 180 days.	The payment terms under credit sales generally consist of 50% down payment and 50% subsequent payments over a period of 90 to 180 days.
Price concessions	¥ 0		11,455	22,392
Adjustment to the previously estimated variable considerations	¥ 0		14,685	27,719
Standard product warranty	360 days that the product will operate under normal use.	360 days that the product will operate under normal use.
Advertising expense	¥ 4,461		3,701	2,377
Employee social security and welfare benefit expenses	¥ 27,740		14,919	23,026
Appropriation to statutory general reserve percentage	10.00%	10.00%
Statutory general reserve required maximum percentage of registered capital	50.00%	50.00%
Profit appropriations to statutory reserves	¥ 113		0	0
Number of operating segment \| Segment	1	1
Number of reportable segment \| ¥ / Segment	1	1
Warranty costs incurred	¥ 28,826		764	1,310
Impairment of indefinitely lived intangible assets	(1,061)
Bank Time Deposits [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Bank deposits insured by government authorities	11,579		9,086
CHINA \| Depoists With Financial Institutions [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Bank deposits insured by government authorities	500
HONG KONG \| Depoists With Financial Institutions [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Bank deposits insured by government authorities \| $						$ 500
UNITED STATES \| Depoists With Financial Institutions [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Bank deposits insured by government authorities \| $					$ 250
SINGAPORE \| Depoists With Financial Institutions [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Bank deposits insured by government authorities \| $							$ 75
KAZAKHSTAN
Disclosure Of Significant Accounting Policies [Line Items]
Long-Lived Assets	146,881
Assets Subject To Operating Lease [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Operating lease asset	0		0
Government Grants
Disclosure Of Significant Accounting Policies [Line Items]
Government grants received	¥ 5,699		¥ 32,499	¥ 24,926
Minimum
Disclosure Of Significant Accounting Policies [Line Items]
Value added tax recoverable percentage	6.00%	6.00%
Maximum
Disclosure Of Significant Accounting Policies [Line Items]
Value added tax recoverable percentage	12.00%	12.00%

Summary of significant accounting policies - Summary of Revenue Segregated by Geographic Region (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	¥ 4,986,706	$ 782,522	¥ 447,686	¥ 1,422,623
Mainland China
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	1,779,923		379,418	1,063,630
Kazakhstan
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	711,596		47,792
Cyprus
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	633,322
Canada
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	402,489		162	22,738
Australia
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	361,377		114	3,591
United States of America
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	312,722		3,528	46,045
Thailand
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	289,013		31	171
Sverige
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	152,127		8	326
Hong Kong Special Administrative Region
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	87,971		12,301	11,216
Japan
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	3			236,206
Other Foreign Countries
Revenues From External Customers And Long Lived Assets [Line Items]
Total net revenues	¥ 256,163		¥ 4,332	¥ 38,700

Organization and Principal Activities (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Subsidiaries

As of December 31, 2021, the Company’s principal subsidiaries are as follows:


Name of subsidiaries	Date of incorporation	Place of incorporation	Equity interest held		Principal activities
Canaan Creative (HK) Holdings Limited	February 22, 2018	Hong Kong Special Administrative Region		100%	Research and development of ICs
Hangzhou Canaan Intelligence Information Technology Co., Ltd.	April 9, 2013	Hangzhou, China		100%	Research and development of ICs
Canaan Creative Co., Ltd.	April 1, 2013	Beijing, China		100%	Research and development of ICs
Langfang Creative Technology Co., Ltd.	May 15, 2014	Langfang, China		100%	Assembly of mining equipment and spare parts
Canaan Convey Co., Ltd.	November 2, 2017	Beijing, China		100%	International distribution of mining equipment and spare parts
Zhejiang Avalon Technology Co., Ltd.	December 5, 2017	Hangzhou, China		100%	Distribution of mining equipment and spare parts
Canaan Bright Sight Co., Ltd.	December 24, 2018	Beijing, China		100%	International distribution of AI products
Hangzhou Canaan Chuangxin Technology Co., Ltd.	December 26, 2018	Hangzhou, China		100%	Research and development of ICs
Canaan Creative (SH) Co., Ltd.	January 27, 2021	Shanghai, China		100%	Research and development of ICs
Canaan Creative International PTE. Ltd.	March 9, 2021	Singapore		100%	International distribution of mining equipment and spare parts

Warrants (Tables)

12 Months Ended

Dec. 31, 2021

Warrants and Rights Note Disclosure [Abstract]

Summary of Significant Unobservable Inputs Used In Calculation Of Warrant Liability

The Company classified the warrants as warrant liability. At initial recognition, the Company recorded the warrant liability on the consolidated balance sheet at its estimated fair value and subsequently remeasured to fair value at the end of each reporting period utilizing the binomial option pricing model, which involves significant assumptions as below:


	For the Year Ended December 31, 2021
Risk Free Rate		0.37%-0.81	%
Volatility		131.47%-127.93	%
Expected dividend yield		0	%
Expected term		2.3 years-3 years

Notes Payable - Additional Information (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Notes Payable [Abstract]
Restricted Cash	¥ 0	¥ 4,494

Share-Based Compensation - Summary of Restricted Shares Activity (Details) - Restricted Share Units - ¥ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, Outstanding	9,040,000	15,733,334	32,030,000
Number of shares, Granted	236,768,940
Number of shares, Forfeited	(6,991,000)	(2,691,282)	(2,368,461)
Number of shares, Vested	(101,574,270)	(4,002,052)	(13,928,205)
Number of shares, Outstanding	137,243,670	9,040,000	15,733,334
Weighted average grant date fair value, Outstanding	¥ 1.51	¥ 1.51	¥ 1.55
Weighted average grant date fair value, Granted	3.74
Weighted average grant date fair value, Forfeited	3.10	1.51	1.51
Weighted average grant date fair value, Vested	2.15	1.51	1.59
Weighted average grant date fair value, Outstanding	¥ 4.81	¥ 1.51	¥ 1.51

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands	CNY (¥) shares	USD ($) shares	Initial Public Offering CNY (¥)	Ordinary Shares CNY (¥) shares	Subscription Receivables From Shareholders CNY (¥) shares	Treasury Stock CNY (¥) shares	Additional Paid-in Capital CNY (¥)	Additional Paid-in Capital Initial Public Offering CNY (¥)	Statutory Reserves CNY (¥)	Accumulated Other Comprehensive Loss CNY (¥)	Retained Earnings (Accumulated Deficit) CNY (¥)
Beginning Balance at Dec. 31, 2018	¥ 240,978			¥ 1	¥ (1)		¥ 154,970		¥ 97,307	¥ (65,230)	¥ 53,931
Beginning Balance (in shares) at Dec. 31, 2018 \| shares				1,948,376,000		51,624,000
Issuance of ordinary shares	669,559						669,559
Issuance of ordinary shares (in shares) \| shares				222,222,222
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance			¥ 536,629					¥ 536,629
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance (in Shares) \| shares				150,000,000
Ordinary share contributed by shareholders for the equity incentive plan (in shares) \| shares				(403,157)		403,157
Share Repurchase (Shares) \| shares				150,000,000
Share Repurchase			¥ (536,629)					¥ (536,629)
Share-based compensation expense	270,242						270,242
Foreign currency translation	9,688									9,688
Vesting of restricted share units and restricted shares	209						209
Vesting of restricted share units and restricted shares (in shares) \| shares				29,928,205		(29,928,205)
Profit appropriations to statutory reserves	0
Net income/(loss)	(1,034,510)										(1,034,510)
Ending Balance at Dec. 31, 2019	692,795			¥ 1	(1)		1,631,609		97,307	(55,542)	(980,579)
Ending Balance (in shares) at Dec. 31, 2019 \| shares				2,350,123,270		22,098,952
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance	23,915					¥ 23,915
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance (in Shares) \| shares				(25,799,190)		25,799,190
Share Repurchase (Shares) \| shares				(25,799,190)		25,799,190
Share Repurchase	(23,915)					¥ (23,915)
Share-based compensation expense	2,950						2,950
Foreign currency translation	(24,238)									(24,238)
Vesting of restricted share units and restricted shares	60						60
Vesting of restricted share units and restricted shares (in shares) \| shares				4,002,052		(4,002,052)
Profit appropriations to statutory reserves	0
Net income/(loss)	(215,094)										(215,094)
Ending Balance at Dec. 31, 2020	¥ 432,558			¥ 1	¥ (1)	¥ (23,915)	1,634,619		97,307	(79,780)	(1,195,673)
Ending Balance (in shares) at Dec. 31, 2020 \| shares	2,328,326,132	2,328,326,132		2,328,326,132		43,896,090
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance	¥ 103,543					¥ 103,543
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance (in Shares) \| shares				(34,683,225)		34,683,225
Share Repurchase (Shares) \| shares				(34,683,225)		34,683,225
Share Repurchase	(103,543)					¥ (103,543)
Share-based compensation expense	491,461						491,461
Foreign currency translation	(22,145)	$ (3,475)								(22,145)
Vesting of restricted share units and restricted shares	86						86
Vesting of restricted share units and restricted shares (in shares) \| shares				101,574,270		(101,574,270)
Profit appropriations to statutory reserves	113								113		(113)
Repurchase of vested employee restricted share units for tax withholding	(150,705)					¥ (150,705)
Repurchase of vested employee restricted share units for tax withholding(Shares) \| shares				(33,255,495)		33,255,495
Resale of vested employee restricted share units for tax withholding	45,728					¥ 46,882					(1,154)
Resale of vested employee restricted share units for tax withholding (in Shares) \| shares				13,043,895		(13,043,895)
New issuance of ordinary shares and warrants	764,968						764,968
New issuance of ordinary shares and warrants(Shares) \| shares				202,380,975		70,833,345
Issuance of ordinary shares as a reserve for share-based compensation awards \| shares						158,701,950
Net income/(loss)	2,000,282	313,886									2,000,282
Ending Balance at Dec. 31, 2021	¥ 3,458,690	$ 542,744		¥ 1		¥ (231,281)	¥ 2,891,134		¥ 97,420	¥ (101,925)	¥ 803,342
Ending Balance (in shares) at Dec. 31, 2021 \| shares	2,577,386,552	2,577,386,552		2,577,386,552	(1)	226,751,940

Short-Term Debts

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Short-Term Debts

10.	Short-term debts


	As of December 31,
	2020		2021
Short-term bank loans		34,754		—

During the years ended December 31, 2020, the Company entered into certain short-term loan agreements with various banks with aggregated principal amount

of RMB200,000 with interest rates ranging from 4.35% to 4.79% per annum and RMB152,000 with interest rates ranging from 2.70% to 2.85% per annum, respectively. As of December 31, 2020, the aggregated outstanding principal amounts under these agreements were

RMB35,000 bearing interest rate 2.84%

per annum. The Company repaid the full balance in 2021.

Subsequent Event

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Event

22.	Subsequent events

Effective March 15, 2022, the Board of Directors has authorized a share repurchase program under which the Company may repurchase up to US$100 million worth of its outstanding (i) ADSs, each representing 15 Class A ordinary shares, and or (ii) Class A ordinary shares over the next 24 months starting from March 16, 2022.

From late March 2022, the assembly factory in Langfang city in the PRC was temporary shut down due to the COVID-19 pandemic. As a result, the product assembly or shipment was suspended. Given the dynamic nature of these circumstances, the reduced assembly volume, the delayed shipment quantity of the mining equipment, or the related financial impact cannot be reasonably estimated at this time. The impact would be reflected in the first half year of 2022. The Company will be continuously evaluating any further potential impact on business, results of operations and financial condition.

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Related Party Transactions

For the years ended December 31, 2019, 2020 and 2021, the related party transactions are as follows:


	For the Years Ended December 31,
	2019		2020		2021
Transaction amount with related parties
Disposal of motor vehicles		—		637		—

		—		637		—

Condensed Financial Information of the Parent Company - Schedule of Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands		12 Months Ended
	May 03, 2021 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Cash flows from operating activities
Net cash provided by (used in) operating activities		¥ 1,438,850	$ 225,786	¥ 42,297	¥ (280,058)
Cash flows from investing activities
Net cash (used in)/provided by investing activities		5,115	803	(49,576)	(16,330)
Cash flows from financing activities
Proceeds from issuance of ordinary shares	¥ 770,673
Proceeds from issuance of ordinary shares upon IPO					544,122
Payment for repurchase of ordinary shares		103,543	16,248	23,915
Proceeds from Issuance of Ordinary Shares and Warrants					669,559
Net cash provided by (used in) financing activities		905,854	142,149	(111,940)	277,951
Net increase (decrease) in cash and cash equivalents		2,349,819	368,738	(119,219)	(18,437)
Effect of exchange rate changes on cash		(13,919)	(2,184)	(9,823)	(1,927)
Cash and cash equivalents, and restricted cash at the beginning of year		395,804	62,110	524,846	545,210
Cash and cash equivalents, and restricted cash at the end of year		2,731,704	428,664	395,804	524,846
Parent Company
Cash flows from operating activities
Receipt of refund from depository bank		0	0	13,285	0
Other cash used in operating activities		(6,462)	(1,014)	(1)	(39)
Net cash provided by (used in) operating activities		(6,462)	(1,014)	13,284	(39)
Cash flows from investing activities
Decrease (increase) in receivables from subsidiaries		(871,194)	(136,709)	28,451	(1,252,029)
Net cash (used in)/provided by investing activities		(871,194)	(136,709)	28,451	(1,252,029)
Cash flows from financing activities
Proceeds from issuance of ordinary shares		0	0	0	669,559
Proceeds from issuance of ordinary shares upon IPO		0	0	0	582,449
Payment for repurchase of ordinary shares		(103,543)	(16,248)	(23,915)	0
Prepayment under share repurchase agreement		(573)	(90)	(16,146)	0
Payment for cost of issuance		(519)	(81)	0	0
Proceeds from Issuance of Ordinary Shares and Warrants		1,029,455	161,544	0	0
Net cash provided by (used in) financing activities		924,820	145,125	(40,061)	1,252,008
Net increase (decrease) in cash and cash equivalents		47,164	7,402	1,674	(60)
Effect of exchange rate changes on cash		(16,451)	(2,582)	(1,541)	74
Cash and cash equivalents, and restricted cash at the beginning of year		147	23	14	0
Cash and cash equivalents, and restricted cash at the end of year		¥ 30,860	$ 4,843	¥ 147	¥ 14

Basic and Diluted Earnings (Loss) Per Share - Effects of Outstanding RSUs Excluded From Computation of Diluted Loss Per Share Due to Anti-Dilutive Effect (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Weighted-average RSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted-average of shares	0	10,710,636	13,923,725
Share options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted-average of shares	114,000,000	0	0
Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted-average of shares	70,833,345	0	0

Contingencies (Details) ¥ in Thousands	Dec. 31, 2021 CNY (¥)
Loss Contingencies [Line Items]
Contingent liabilities	¥ 0

Income Taxes - Schedule of Composition of Income Tax Expense (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Income Tax Disclosure [Abstract]
Current income tax expense	¥ 149,152		¥ 0	¥ 0
Deferred income tax benefits	(99,044)	$ (15,542)	0	0
Income tax expense	¥ 50,108	$ 7,863	¥ 0	¥ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Share-Based Compensation - Summary of Restricted Ordinary Shares Activity Under Replacement Agreement (Details) - Restricted Ordinary Shares - ¥ / shares	1 Months Ended	12 Months Ended
	Nov. 30, 2019	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, Outstanding		17,594,000
Number of shares, Forfeited		(1,594,000)
Number of shares, Vested	(16,000,000)	(16,000,000)
Number of shares, Outstanding		0
Weighted average grant date fair value, Outstanding		¥ 2.56
Weighted average grant date fair value, Forfeited		2.56
Weighted average grant date fair value, Vested		2.56
Weighted average grant date fair value, Outstanding		¥ 0

Share-based compensation - Schedule of Stock Option Activity (Details) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥) ¥ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of shares , Begining Balance \| shares	0
Number of shares , Granted \| shares	114,000,000
Number of shares , Ending Balance \| shares	114,000,000
Number of shares , Expected to vest \| shares	94,677,000
Number of shares , Exercisable \| shares	0
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Exercise Price [Abstract]
Weighted-Average per Share Exercise Price , Begining Balance \| ¥ / shares	¥ 0
Weighted-Average per Share Exercise Price , Granted \| ¥ / shares	4.90
Weighted-Average per Share Exercise Price , Ending Balance \| ¥ / shares	4.90
Weighted-Average per Share Exercise Price, Expected to vest \| ¥ / shares	4.90
Weighted-Average per Share Exercise Price , Exercisable \| ¥ / shares	¥ 0
Share Based Compensation Arrangement By ShareBased Payment Award Options Weighted Average Remaining Contractual Term [Abstract]
Weighted Average Remaining Contractual Term, Expected to vest	9 years 1 month 6 days
Share Based Compensation Arrangement By ShareBased Payment Award Options Aggregate Intrinsic Value [Abstract]
Aggregate Intrinsic Value, Begining balance \| ¥	¥ 0
Aggregate Intrinsic Value, Granted \| ¥	0
Aggregate Intrinsic Value, Ending balance \| ¥	0
Aggregate Intrinsic Value, Expected to vest \| ¥	0
Aggregate Intrinsic Value, Exercisable \| ¥	¥ 0

Ordinary Shares

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Ordinary Shares

14.	Ordinary shares

On March 23, 2018, Canaan Inc. was incorporated as an exempted company with limited liability company with authorized share capital of US$50,000 divided into 500,000,000 shares with par value US$0.0001 each. In June 2018, the authorized share capital of US$50,000, which represented 500,000,000 issued shares, was subdivided into 1,000,000,000,000 shares of a par value of US$0.00000005 each.

In February 2019, the Company issued 222,222,222 ordinary shares to existing shareholders at a price of US$0.45 per share for a total cash consideration of US$100 million. Out of the 222,222,222 ordinary shares issued, 403,157 issued ordinary shares were contributed by the then existing shareholders to the Trust for future share awards (Note 1

On November 21, 2019, the Company completed its IPO and became listed on the Nasdaq Global Market by issuing 10,000,000 ADSs at the price of US$9.00 per ADS for

total gross proceeds of US$90 million. Each ADS represents 15 Class A ordinary

shares.

Upon the completion of the Company’s IPO, the Company’s authorized share capital was

re-designated

into Class A ordinary shares and Class B ordinary shares, Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to

one vote

and each Class B ordinary share is entitled to

fifteen votes

. In addition, certain matters including those related to the change of control of the Company require an additional approval by the holders of a majority of Class A ordinary shares voting as a separate class. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Class B ordinary shares will be automatically converted into the same number of Class A ordinary shares under certain circumstances, including any transfer of Class B ordinary shares by the holder thereof to any person or entity which is not an affiliate of such holder.

Effective November 25, 2020, the Board of Directors approved conversion of 45,000,000 Class B ordinary shares into 45,000,000 Class A ordinary shares.

On May 3, 2021, the Company issued 13,492,065 ADSs (202,380,975 Class A ordinary shares) to certain institutional investors for RMB1,029,455, net of issuance cost. The Company also issued to the investors warrants to purchase up to an aggregate of 4,047,620 ADSs (60,714,300 Class A ordinary shares). Also, the Company issued warrants to two placement agents, which entitles them to purchase up to an aggregate of 674,603 ADSs (10,119,045 Class A ordinary shares). The Company classified the warrants as warrant liability and the fair value of the warrant liability was RMB258,782 as of the issuance date, the residual proceeds of RMB770,673 was allocated to the Company’s ordinary shares. (Note 13)

As of December 31, 2021, the authorized ordinary shares are 1,000,000,000,000, of which 2,804,138,492 shares were issued and 2,577,386,552 shares were outstanding. These outstanding shares consist of (1) 2,265,762,108 Class A ordinary shares and (2) 311,624,444 Class B ordinary shares, which were held by the Chairman and CEO of the Company.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Related Party Transaction - Additional Information (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Related Party Transactions [Abstract]
Amounts due from related parties	¥ 0	¥ 0

- Definition

The aggregate amount of receivables to be collected from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth, at the financial statement date. which are usually due within one year (or one business cycle).

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+ Details

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Shares Repurchase [Member] ¥ in Millions	Mar. 15, 2022 CNY (¥) shares
Subsequent Event [Line Items]
Stock repurchase program authorized amount \| ¥	¥ 100
Number of ordinary shares representing american depositary shares \| shares	15
Stock Repurchase Program, Period in Force	24 months
Stock repurchase program starting date	Mar. 16, 2022

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Components of Lease Expenses

(a)

The components of lease expenses were as follows:


	For the Years Ended December 31,
	2019		2020		2021
Lease cost:
Reduction in the carrying amount of ROU assets		10,928		13,432		17,584
Interest of lease liabilities		1,746		1,938		1,613
Expenses for short-term lease within 12 months		605		505		443

Total lease cost		13,279		15,875		19,640

Summary of Supplemental Cash Flow Information Related to Leases

(b)

Supplemental cash flow information related to leases was as follows:


	For the Years Ended December 31,
	2019		2020		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		11,228		14,322		20,739
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		—		5,516		36,672
Reductions to ROU assets resulting from reductions to lease obligations:
Operating leases		—		427		2,590

Summary of Supplemental Balance Sheet Information Related to Leases

(c)

Supplemental balance sheet information related to leases was as follows:

As of December 31,

2019

2020

2021

Weighted-average remaining lease term

Operating leases

1.2 year

1.3 year

2.4 year

Weighted-average discount rate

Operating lease

7.14% per annum

6.73% per annum

5.17% per annum

Schedule of Maturities of Lease Liabilities


Years Ending December 31,	As of December 31, 2021

2022		14,917
2023		13,867
2024 and thereafter		4,222
Total undiscounted lease payments		33,006
Less: imputed interest		(1,895	)

Total lease liabilities		31,111

Amounts due within 12 month s		14,819
Non-current lease liability		16,292

Warrants - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands		1 Months Ended		12 Months Ended
	May 03, 2021 CNY (¥) shares	May 31, 2021 CNY (¥)	May 31, 2021 USD ($)	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2021 USD ($) shares	May 01, 2021 $ / shares shares
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	674,603
Class of Warrant or Right, Outstanding				70,833,345				70,833,345
Fair Value Adjustment of Warrants	¥ (258,782)			¥ 190,178	$ 29,843	¥ 0	¥ 0
Warrants To Purchase Common Stock [Member] \| Warrant [Member]
Class of Warrant or Right [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances		¥ 258,782	$ 39,877
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value				¥ 66,347				$ 10,406
Common Class A [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	10,119,045
Common Class A [Member] \| Warrant [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares									$ 1.05
Tranche One [Member] \| Warrants To Purchase Common Stock [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares									16.38
Tranche One [Member] \| Common Class A [Member] \| Warrants To Purchase Common Stock [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares									1.09
Tranche Two [Member] \| Warrant [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares									$ 15.75
Tranche Two [Member] \| Warrants To Purchase Common Stock [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									674,603
Tranche Two [Member] \| Common Class A [Member] \| Warrants To Purchase Common Stock [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									10,119,045
Investor Warrants [Member] \| Tranche One [Member] \| Warrants To Purchase Common Stock [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									4,047,620
Investor Warrants [Member] \| Tranche One [Member] \| Common Class A [Member] \| Warrants To Purchase Common Stock [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									60,714,300

Prepayments and Other Assets

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepayments and Other Assets

6 .	Prepayments and other assets

The current and

non-current

portions of prepayments and other assets consist of the

following


	As of December 31,
	2020		2021
Prepayments and other current assets
Prepayments to vendors (Note a)		203,063		1,427,820
VAT recoverable		87,879		260,571
Prepayment for repurchase of ordinary shares		15,825		15,901
VAT refund for export sales (Note b)		5,510		14,041
Others (Note c)		4,089		10,694

		316,366		1,729,027

Other n on-current assets
Rental and other deposits		2,530		2,956

Note a: Prepayments to vendors mainly represent prepayments made to third-party suppliers for foundry service. The Company also records a provision for the prepayment to third-party suppliers when the Company believes that the net realizable value (being the estimated selling price of final products, less the costs of completion and selling expenses) is less than carrying amount. For the years ended December 31, 2019, 2020 and 2021, the Company recorded a write-down of

RMB202,522, nil and nil for the prepayment to third-party suppliers in cost of revenues. As of December 31, 2020 and 2021, the

Company

’s purchase obligation to third-party suppliers for foundry service was RMB121,015 and

RMB

917,346 respectively.

Note b: Canaan Convey Co., Ltd. is entitled to VAT refund for its export sales.

Note c: During the years ended December 31, 2019, 2020 and 2021, the

Company

recorded provision of allowance for other receivables of nil, RMB4,606 and RMB5,517, respectively.

Accrued liabilities and other liabilities - Schedule of Product Warranty Liability (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)
Product Warranties Disclosures [Abstract]
Accrued warranty—beginning of year	¥ 0
Accrual for warranties issued during the year	28,826
Warranty claims paid	(10,800)
Accrued warranty—end of year	¥ 18,026

Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	¥ 20,739	¥ 14,322	¥ 11,228
Right-of-use assets obtained in exchange for lease obligations:
Operating lease liabilities	36,672	5,516
Reductions to ROU assets resulting from reductions to lease obligations:
Operating leases	¥ 2,590	¥ 427

Inventories - Schedule of Inventories (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Inventory Disclosure [Abstract]
Raw materials	¥ 429,208		¥ 195,939
Finished goods	304,801		26,963
Work in process	78,354		2,620
Total	¥ 812,363	$ 127,477	¥ 225,522

Accrued Liabilities and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Payables And Accruals [Abstract]

Schedule of Accrued Liabilities and Other Liabilities


	As of December 31,
	2020		2021
Accrued liabilities and other current liabilities
VAT payable		—		128,939
Withholding tax payables due to restricted share units (Note a)		—		126,198
Salary and welfare payable		25,148		118,712
Other tax payables		874		19,128
Warranty reserve (Note b)		—		18,026
Customer refund		—		10,738
VAT received from customers related to contract liabilities		28,958		2,427
Rental deposits		4,011		2,120
Refund from depository bank – current		2,060		2,013
Others		2,292		9,093

Total		63,343		437,394

Other n on-current liabilities
Refund from depository bank – non-current		8,020		5,824

Schedule of Product Warranty Liability

Movement of provision for warranty is as follows:


	For the year ended December 31, 2021
Accrued warranty—beginning of year		—
Accrual for warranties issued during the year		28,826
Warranty claims paid		(10,800	)
Accrued warranty—end of year		18,026

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

(a)

Cayman Islands

Under the current tax laws of Cayman Islands, the Company is not subject to income, corporation or capital gains tax, and no withholding tax is imposed upon the payment of dividends.

(b)

Hong Kong Profits Tax

One of the Company’s subsidiaries incorporated in Hong Kong is subject to Hong Kong profits tax rate of 16.5% on its estimated assessable profit for the years ended December 31, 2019, 2020 and 2021. Dividends income received from subsidiaries in China are not subject to Hong Kong profits tax.

(c)

PRC Enterprise Income Tax (“EIT”)

On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to EIT at a uniform rate of 25%. The EIT law became effective on January 1, 2008.

Canaan Creative Co., Ltd. (“Canaan Creative”) obtained its High and New Technology Enterprises (“HNTE”) certificate with a valid period of
three years in 2019. Therefore, Canaan Creative is eligible to enjoy a preferential tax rate of 15% from 2019 to 2021 to the extent it has taxable
income under the EIT Law, as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority.

Hangzhou Canaan Intelligence Information Technology Co., Ltd. (“Hangzhou Canaan”)

obtain

ed its HNTE certificate with a valid period of three y

ears

in 2019, and therefore is eligible to enjoy a preferential tax rate of 15% from 2019 to 2021 to the extent it has taxable income under the EIT Law, as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. In addition, in accordance with Caishui (2012) No. 27 issued by the State Tax Bureau on April 20, 2012, Hangzhou Canaan is qualified as an integrated circuit enterprise and enjoying a

5-year

tax holiday (two year full exemption followed by three year half reduction) beginning from 2016 after utilizing all prior years’ tax losses. Therefore, Hangzhou Canaan is eligible to enjoy a preferential tax rate of 0% from 2016 to 2017 and 12.5% from 2018 to 2020.

The Company’s other

PRC subsidiaries are subject to the statutory income tax rate of 25%.

(d)

PRC Withholding Income Tax on Dividends

The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a

non-PRC

company is located.”

The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a

non-resident

enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% if the immediate holding company in Hong Kong owns directly at least 25% of the shares of the FIE and could be recognized as a Beneficial Owner of the dividend from PRC tax perspective.

As of December 31, 2020 and 2021, the aggregated amount of undistributed earnings of the

Company

entities located in the PRC that are available for distribution to the Company were RMB701,633 and RMB1,192,746, respectively. The

Compan

plans to indefinitely reinvested undistributed earnings earned from its PRC subsidiaries in its operations in

the

PRC. Therefore, no withholding income tax for undistributed earnings of its subsidiaries were provided as of December 31, 2020 and 2021.

A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows:


	For the Years Ended December 31,
	2019			2020			2021
PRC statutory income tax rates		(25.0	)%		(25.0	)%		25.0	%
Permanent book-tax difference		3.3	%		(4.5	)%		1.4	%
Share-based compensation		5.8	%		0.2	%		3.4	%
Super deduction of R&D expense		(1.5	)%		(5.7	)%		(2.6	)%
Others		(1.0	)%		1.0	%		0.6	%
Different tax rates in other jurisdictions		0.4	%		2.0	%		(2.2	)%
Effect of tax holiday		8.4	%		4.4	%		(7.8	)%
Change in valuation allowance		12.9	%		23.1	%		(14.0	)%

Total		0.0	%		0.0	%		2.4	%

Effects of tax holidays entitled by the PRC subsidiaries		(87,043	)		(9,553	)		160,246
Effects of tax holidays entitled by the PRC subsidiaries on basic (loss) earnings per Class A and Class B ordinary share (RMB cent per share)		(4.04	)		(0.41	)		6.35

Composition of income tax expense (benefit)

The current and deferred portions of income tax expense (benefit) included in the consolidated statements of comprehensive income (loss) are as follows:


	For the Years Ended December 31,
	2019		2020		2021
Current income tax expense		—		—		149,152
Deferred income tax benefits		—		—		(99,044	)

Income tax expense		—		—		50,108

Deferred tax assets and liabilities

Deferred taxes were measured using the enacted tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2020 and 2021 are as follows:


	As of December 31,
	2020			2021
Deferred tax assets
Tax losses carried forward		286,044			102,239
Write-down of inventories		16,840			10,771
Warranty reserve		—			2,704
Allowance for doubtful accounts		1,744			1,314
Unrealized gain from intracompany sale		162			—

Subtotal		304,790			117,028
Less: Valuation allowance		(304,790	)		(17,984	)

Deferred tax assets		—			99,044

As of December 31, 2020 and 2021, the Company had tax loss carry forwards of approximately RMB1,762,521 and RMB437,187, which mainly arose from its PRC subsidiaries and to a less extent from its HK subsidiary.

Most of the

PRC subsidiaries are qualified as HNTE or technology small and medium enterprise (“SMEs”), the carryforwards period for net operating losses under the EIT Law is changed from five years to ten years.

As of December 31, 2021, the had net operating loss carry forwards of RMB84,255 attributable to the PRC mainland and Hong Kong subsidiaries.

The net operating loss carryforwards

by the PRC mainland companies will expire

in varying amounts between 2022 and 2031.

Tax losses of RMB84,255 will expire, if unused, by 2025 and thereafter. Other than the expiration, there are no other limitations or restrictions upon the Company’s ability to use these operating loss carryforwards.

Valuation allowance is provided against deferred tax assets when the Company determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Company considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for tax loss carry forward because it was more likely than not that such deferred tax assets will not be realized due to lack of profitable history to support the Company’s estimate of its future taxable income. If events occur in the future that allow the Company to realize part or all its deferred income tax, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur.

As of December 31, 2020 and 2021, valuation allowances of RMB304,790 and RMB17,984

were provided because it was more likely than not that the Company will not be able to utilize certain tax losses carry forwards and other deferred tax assets generated by its subsidiaries. If events occur in the future that allow the Company to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowances will increase income when those events occur.

Movement of valuation allowance is as follows:


	For the Years Ended December 31,
	2019		2020		2021
Beginning balance		119,065		254,039		304,790
Additions (decreases) during the year		134,974		50,751		(286,806	)

Ending balance		254,039		304,790		17,984

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2020 and 2021, the Company did not have any significant unrecognized uncertain tax positions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Warrants

12 Months Ended

Dec. 31, 2021

Warrants and Rights Note Disclosure [Abstract]

Warrants

13. Warrants

In connection with the issuance of ordinary shares (Note 14) in May 2021, the Company also issued warrants to the investors, which entitle the investors to purchase up to an aggregate of 4,047,620 ADS (representing 60,714,300 Class A ordinary Shares) at $16.38 per ADS (representing $1.09 Class A ordinary share). Also, the Company issued warrants to two placement agents, which entitle them to purchase up to an aggregate of 674,603 ADSs (representing 10,119,045 Class A ordinary shares) at $15.75 per ADS (representing $1.05 Class A ordinary share). The warrants are all outstanding as of December 31, 2021. The warrants are all outstanding as of December 31, 2021 and total of 70,833,345 ordinary shares are accounted as treasury stocks.


	For the Year Ended December 31, 2021
Risk Free Rate		0.37%-0.81	%
Volatility		131.47%-127.93	%
Expected dividend yield		0	%
Expected term		2.3 years-3 years

The risk-free rate of return was estimated based on the yield of US Treasury Strip with a maturity life equal to the remaining maturity life of the Warrants as of the Valuation Date. The expected volatility was estimated based on the historical volatility of comparable peer public companies and the Company with a time horizon close to the expected term of the Company’s warrant liability. Expected dividend yield is zero as the Company has never declared or paid any cash dividends on its shares, and the Company does not anticipate any dividend payments in the foreseeable future. Expected term is the remaining life of the warrant liability.

The fair value of the warrant liability was US$39,877 (equivalent to RMB258,782) at the issuance date and US$10,406 (RMB66,347

)

as of December 31, 2021. The change of RMB190,178 in the fair value of the warrant liability for the year ended December 31, 2021 was recognized in the consolidated statements of comprehensive

income (loss).

Property, Equipment and Software

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Equipment and Software

8.	Property, equipment and software

Property, equipment and software consist of the following:


	As of December 31,
	2020			2021
Cost:
Mining equipment		—			146,881
Computers and electronic equipment		14,540			27,492
Leasehold improvements		17,130			21,412
Mechanical equipment		1,181			7,694
Software		1,955			5,438
Construction in progress		1,325			665
Motor vehicles		461			470

Total cost		36,592			210,052
Less: Accumulated depreciation and amortization		(24,399	)		(24,486	)

Property, equipment and software, net		12,193			185,566

Depreciation and amortization expenses recognized for the years ended December 31, 2019, 2020 and 2021 are summarized as follows:


	For the Years Ended December 31,
	2019		2020		2021
General and administrative expenses		8,062		7,680		6,439
Research and development expenses		3,662		3,874		2,826
Cost of revenues		1,899		217		1,715
Sales and marketing expenses		81		81		29

Total		13,704		11,852		11,009

Cryptocurrency

12 Months Ended

Dec. 31, 2021

Disclosure Of Cryptocurrency [Abstract]

Cryptocurrency

7.	Cryptocurrency


	As of December 31, 2021
Gross carrying amount		21,371
Less: Impairment of cryptocurrency		(1,061	)

Net		20,310

Income Taxes - Schedule of Movement of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Beginning balance	¥ 304,790	¥ 254,039	¥ 119,065
Additions (decreases) during the year	(286,806)	50,751	134,974
Ending balance	¥ 17,984	¥ 304,790	¥ 254,039

Related Party Transactions - Schedule of Related Party Transactions (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Transaction amount with related parties
Transaction amount with related parties	¥ 0	¥ 637	¥ 0
Disposal of motor vehicles
Transaction amount with related parties
Transaction amount with related parties	¥ 0	¥ 637	¥ 0

Organization and Principal Activities

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Principal Activities

1.	Organization and principal activities

Canaan Inc., an exempted company with limited liability incorporated in the Cayman Islands, through wholly-owned subsidiaries (collectively referred to as the “Company”), is principally engaged in integrated circuit (the “IC”) design and sale and lease of final mining equipment by integrating its IC products for Bitcoin mining and related components in the People’s Republic of China (the “PRC”) and other countries and regions.

As of December 31, 2021, the Company’s principal subsidiaries are as follows:


Name of subsidiaries	Date of incorporation	Place of incorporation	Equity interest held		Principal activities
Canaan Creative (HK) Holdings Limited	February 22, 2018	Hong Kong Special Administrative Region		100%	Research and development of ICs
Hangzhou Canaan Intelligence Information Technology Co., Ltd.	April 9, 2013	Hangzhou, China		100%	Research and development of ICs
Canaan Creative Co., Ltd.	April 1, 2013	Beijing, China		100%	Research and development of ICs
Langfang Creative Technology Co., Ltd.	May 15, 2014	Langfang, China		100%	Assembly of mining equipment and spare parts
Canaan Convey Co., Ltd.	November 2, 2017	Beijing, China		100%	International distribution of mining equipment and spare parts
Zhejiang Avalon Technology Co., Ltd.	December 5, 2017	Hangzhou, China		100%	Distribution of mining equipment and spare parts
Canaan Bright Sight Co., Ltd.	December 24, 2018	Beijing, China		100%	International distribution of AI products
Hangzhou Canaan Chuangxin Technology Co., Ltd.	December 26, 2018	Hangzhou, China		100%	Research and development of ICs
Canaan Creative (SH) Co., Ltd.	January 27, 2021	Shanghai, China		100%	Research and development of ICs
Canaan Creative International PTE. Ltd.	March 9, 2021	Singapore		100%	International distribution of mining equipment and spare parts

Share-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Share-based compensation

On October 8, 2016, Canaan Chaoxin, which was a holding company controlled by the controlling shareholders, established of 2016 Equity Incentive Plan (the “2016 Plan”) with the purpose of which is to provide share options for employees contributing to the Company. On October 8, 2016, Canaan Chaoxin granted 39,600,000 share options to Company’s employees at an exercise price of RMB0.023 per share under the 2016 Plan. The vesting period was from October 2016 to May 2017 and the exercise period was from June 2017 to July 2017.

On November 22, 2017, Canaan Chaoxin approved the establishment of 2017 Equity Incentive Plan (the “2017 Plan”) with the purpose of which is to provide restricted share units (“RSUs”) to its employees. In November 2017, Canaan Chaoxin granted 71,200,000 RSUs to Company’s employees at an exercise price of RMB0.015 per share under the 2017 Plan, among which, 39,170,000 RSUs are vested immediately on the grant date, 30,030,000 RSUs contain two or four service years of the employees and the remaining 2,000,000 RSUs shall be vested upon occurrence of IPO.

As part of

the reorganization to facilitate the offshore financing in 2018, the Board of Directors of the Company approved the 2018 Equity Incentive Plan (the “2018 Plan”) on April 25, 2018

, which assumed Canaan Chaoxin’s obligations and duties under the share awards granted by Canaan Chaoxin. As a result, the unvested RSUs granted by Canaan Chaoxin under 2017 Plan were replaced with RSUs of the Company. Such new RSUs replaced the RSUs granted under Canaan Chaoxin’s existing RSUs in its entirety by exchanging of the RSU granted by Canaan Chaoxin for the RSU of the Company while maintaining their respective terms and vesting schedules unchanged except for the addition of performance condition of IPO. This resulted in a probable to improbable (Type II) modification, and no incremental fair value would be recognized unless and until vesting of the award under the modified conditions becomes probable. Since this modification was not beneficial to its employees, no incremental value was resulting from the modification. The Company recognized compensation cost equal to the award’s original grant-date fair value when the original vesting conditions are satisfied, regardless of whether the modified IPO condition is satisfied.

Also on April 25, 2018, some employees

who are under the 2016 Plan entered into share award replacement agreement (the “Replacement Agreement”) with the Company under which a total of

19,594,000

ordinary shares of the Company held by the employees became restricted and shall be vested upon IPO of the Company.

If the employee voluntarily and unilaterally terminates his employment/service contract with any Company entities or his employment, the unvested restricted shares shall automatically lapse

. Deferred share-based compensation was measured for the restricted shares using the estimated fair value of the Company’s ordinary shares at the date of imposition of the restriction in April 2018, and the compensation cost for the restricted shares shall be recognized upon occurrence of IPO.

As of December 31, 2018, there were 17,594,000 restricted shares outstanding.

Upon completion of the Company’s IPO in November 2019, 2,000,000 RSUs with IPO condition and 16,000,000 restricted ordinary shares were immediately vested and related share-based compensation expenses amounted to RMB44,789 were recognized.

In April 2021, the Board of Directors of the Company amended the 2018 Plan (the “Amended 2018 Plan”). Under the Amended 2018 Plan, in April 2021 and on every January 1 thereafter during which the 2018 Plan remains in effect, the maximum aggregate number of Class A

rdinary

hares which may be subject to awards under the 2018 Plan will be automatically increased by 15.0% of the total number of Class A

rdinary

hares issued and outstanding on December 31 of the preceding calendar year, if and whenever the unallocated Class A

rdinary

hares which may be issuable under the 2018 Plan account for less than 3% of the then total issued and outstanding Class A

rdinary

hares. In May and September 2021, the

Compan

issued

94,927,065

Class A

ordinary shares and 63,774,885

Class A ordinary

shares, which were then reserved under the Amended 2018 Plan. In 2021, the Company granted 236,768,940 RSUs and 114,000,000 options to Company’s employees under the Amended 2018 Plan. For the year ended December 31, 2021, 95,816,325 restricted share units were transferred from treasury stock to ordinary shares upon vesting under the Amended 2018 Incentive Plan.

(a)

Restricted share units

The following table summarizes the RSUs activity for the years ended December 31, 2019, 2020 and 2021:


	Number of shares			Weighted average grant date fair value
				RMB
Outstanding a s of December 31, 2018		32,030,000			1.55

Forfeited		(2,368,461	)		1.51
Vested		(13,928,205	)		1.59

Outstanding a s of December 31, 2019		15,733,334			1.51

Forfeited		(2,691,282	)		1.51
Vested		(4,002,052	)		1.51

Outstanding a s of December 31, 2020		9,040,000			1.51

Granted		236,768,940			3.74
Forfeited		(6,991,000	)		3.10
Vested		(101,574,270	)		2.15

Outstanding a s of December 31, 2021		137,243,670			4.81

In 2021, the Company granted 236,768,940 RSUs to the Company’s employees under the Amended 2018 Plan. The Company used closing price of ordinary share to determine the fair value of the RSUs after completion of the Company’s IPO.

As of December 31, 2021, there was RMB519,951 unrecognized compensation expense related to RSUs, which is expected to be recognized over a weighted-average period of 34.33 months.

(b)

Share options

The following table summarizes the share options for the years ended December 31, 2019, 2020 and 2021:


	Number of shares		Weighted-Average per Share Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
			RMB		Years		RMB
Outstanding a s of December 31, 2018, 2019 and 2020		—		—		—		—

Granted		114,000,000		4.90		—		—

Outstanding a s of December 31, 2021		114,000,000		4.90		9.10		—
Expected to vest a s of December 31, 2021		94,677,000		4.90		9.10		—
Exercisable a s of December 31, 2021		—		—		—		—

The aggregate intrinsic value as of December 31, 2021 in the table above represents the difference between the fair value of the Company’s ordinary share

December 31, 2021 and the exercise price.

The fair values of the share options granted by the Company to employees for the year ended December 31, 2021 are as follows:


	For the Year Ended December 31,
	2021

Weighted average grant date fair value of option per share		6.63
Aggregate grant date fair value of options		465,553

As of December 31, 2021, there was RMB332,754 unrecognized compensation expense related to share options, which is expected to be recognized over a weighted-average period of 27.39 months.

The assumptions used to estimate the fair values of the share options granted were as follows:


	For the Year Ended December 31,
	2021
Risk-free rate of return (1)		1.25% to 1.85%
Dividend yield (2)		0%
Expected volatility (3)		136.91% to 142.01%
Expected term (4)		10 years
Exercise multiple (5)		2.80
Fair value of ordinary share	US$	3.78 to US$17.51

The risk-free rate of return was estimated based on the yield of US Strip Bond with a maturity life equal to the remaining maturity life of the Company’s options as of the valuation date.

Dividend yield is zero as the Company has never declared or paid any cash dividends on its shares, and the Company does not anticipate any dividend payments in the foreseeable future.

The expected volatility was estimated based on the historical volatility of comparable peer public companies and the Company with a time horizon close to the contract life of the Company’s options.

Expected term is the contract life of the option.

The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it has considered the statistics by making reference to a widely-accepted academic research publication.

(c)

Restricted ordinary shares

The following table summarizes the restricted ordinary shares activity under Replacement Agreement for the year ended December 31, 2019:


	Number of shares			Weighted average grant date fair value
				RMB

Outstanding a s of December 31, 2018		17,594,000			2.56

Forfeited		(1,594,000	)		2.56
Vested		(16,000,000	)		2.56

Outstanding as of December 31, 2019, 2020 and 2021		—			—

The Company

used income approach involving applying appropriate discount rates to estimated cash flows that are based on earnings forecast and discount for lack of marketability to determine the fair value of the restricted ordinary share at the date of imposition of the restriction in April 2018 with assistance from an independent valuation firm.

For the year ended December 31, 2020 and 2021, there was no outstanding restricted ordinary shares.

(d)

Other share-based compensation

In May 2019, certain shareholders of the Company sold 233,217,776 ordinary shares in aggregate to certain existing shareholders and certain third party investors. Out of the total 233,217,776 shares transferred, 111,217,778 shares were purchased by existing shareholders who were also the employees of the Company. The net excess of appraised fair value of the ordinary shares (acquired by employee shareholders) over the considerations amounted to RMB213,135, which was charged to general and administrative expenses as share-based compensation costs for the year ended December 31, 2019.

Risks and Concentration - Summary of Accounts Receivable Concentration of Credit risk and Customers Contribution of Total Revenue (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Concentration of Credit Risk \| Accounts Receivable \| Customer A
Concentration Risk [Line Items]
Concentration risk, percentage		96.00%
Concentration of Credit Risk \| Accounts Receivable \| Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	52.00%
Customer Concentration Risk \| Total Revenue \| Customer C
Concentration Risk [Line Items]
Concentration risk, percentage		29.00%
Customer Concentration Risk \| Total Revenue \| Customer D
Concentration Risk [Line Items]
Concentration risk, percentage	18.00%
Customer Concentration Risk \| Total Revenue \| Customer E
Concentration Risk [Line Items]
Concentration risk, percentage			17.00%
Customer Concentration Risk \| Total Revenue \| Customer F
Concentration Risk [Line Items]
Concentration risk, percentage		16.00%

Leases - Components of Lease Expenses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Lease cost:
Reduction in the carrying amount of ROU assets	¥ 17,584		¥ 13,432	¥ 10,928
Interest of lease liabilities	1,613	$ 253	1,938	1,746
Expenses for short-term lease within 12 months	443		505	605
Total lease cost	¥ 19,640		¥ 15,875	¥ 13,279

Cryptocurrency - Schedule of Cryptocurrency (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying amount	¥ 21,371
Less: Impairment of cryptocurrency	(1,061)
Net	¥ 20,310

Accrued Liabilities and Other Liabilities

12 Months Ended

Dec. 31, 2021

Payables And Accruals [Abstract]

Accrued Liabilities and Other Liabilities

12.	Accrued liabilities and other liabilities


	As of December 31,
	2020		2021
Accrued liabilities and other current liabilities
VAT payable		—		128,939
Withholding tax payables due to restricted share units (Note a)		—		126,198
Salary and welfare payable		25,148		118,712
Other tax payables		874		19,128
Warranty reserve (Note b)		—		18,026
Customer refund		—		10,738
VAT received from customers related to contract liabilities		28,958		2,427
Rental deposits		4,011		2,120
Refund from depository bank – current		2,060		2,013
Others		2,292		9,093

Total		63,343		437,394

Other n on-current liabilities
Refund from depository bank – non-current		8,020		5,824

Note a: Upon vesting of the restricted share units, the Company withholds the shares to cover the statutory withholding requirement. As of December

31 2021, RMB126,198

was withheld on behalf of the employee and was subsequently remitted to the tax authority in January 2022.

Note b: For mining equipment, the Company provides its customers for 360 days warranty, subject to certain conditions, such as normal use. The Company provides for the estimated costs of warranties at the time revenue is recognized. Factors that affect the Company’s warranty obligation include product defect rates and costs of repair or replacement.

Movement of provision for warranty is as follows:


	For the year ended December 31, 2021
Accrued warranty—beginning of year		—
Accrual for warranties issued during the year		28,826
Warranty claims paid		(10,800	)
Accrued warranty—end of year		18,026

Treasury Stocks - Additional Information (Details) ¥ in Thousands, $ in Millions		1 Months Ended					12 Months Ended
	May 03, 2021 CNY (¥) shares	Sep. 30, 2021 shares	May 31, 2021 shares	Nov. 30, 2019 shares	May 31, 2019 shares	Feb. 28, 2019 shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2019 CNY (¥)	Sep. 19, 2021 USD ($)	Apr. 30, 2018 shares
Equity Class Of Treasury Stock [Line Items]
Common stock shares outstanding							2,577,386,552	2,328,326,132
Treasury stock, shares							226,751,940	43,896,090
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation \| ¥							¥ 150,705
Stock Issued During Period, Shares, New Issues	4,047,620				233,217,776	222,222,222
Stock Issued During Period, Value, New Issues \| ¥									¥ 669,559
2018 Equity Incentive Plan
Equity Class Of Treasury Stock [Line Items]
Ordinary shares Held in trust											51,624,000
Ordinary shares contributed for future share awards						403,157
Restricted Share Units \| 2018 Equity Incentive Plan
Equity Class Of Treasury Stock [Line Items]
Shares transferred from treasury stock to ordinary shares							5,757,945	4,002,052
Restricted Share Units \| Amended 2018 Plan [Member]
Equity Class Of Treasury Stock [Line Items]
Treasury stock, shares							83,097,225
Restricted Share Units \| Initial Public Offering \| 2018 Equity Incentive Plan
Equity Class Of Treasury Stock [Line Items]
Restricted share units vested transferred from treasury stocks to ordinary shares				928,205
Restricted Ordinary Shares \| 2018 Equity Incentive Plan
Equity Class Of Treasury Stock [Line Items]
Treasury stock, shares							12,338,955
Restricted Ordinary Shares \| Amended 2018 Plan [Member]
Equity Class Of Treasury Stock [Line Items]
Treasury stock, shares							95,816,325
Restricted Ordinary Shares \| Initial Public Offering \| 2018 Equity Incentive Plan
Equity Class Of Treasury Stock [Line Items]
Restricted share units vested transferred from treasury stocks to ordinary shares				16,000,000
Shares Repurchase [Member]
Equity Class Of Treasury Stock [Line Items]
Common stock shares outstanding							2,312,215	1,719,946
Share repurchased							34,683,225	25,799,190
Proceeds from repurchases \| ¥							¥ 103,543	¥ 23,915
Shares Repurchase [Member] \| Restricted Ordinary Shares
Equity Class Of Treasury Stock [Line Items]
Treasury stock, shares							60,482,415
Share Repurchase Program [Member]
Equity Class Of Treasury Stock [Line Items]
Stock repurchase program authorized amount \| $										$ 10
Common Class A [Member]
Equity Class Of Treasury Stock [Line Items]
Common stock shares outstanding							2,265,762,108
Stock Issued During Period, Value, New Issues \| ¥	¥ 1,029,455
Common Class A [Member] \| Amended 2018 Plan [Member]
Equity Class Of Treasury Stock [Line Items]
Ordinary shares contributed for future share awards		63,774,885	63,774,885
Share-based payment arrangement, shares withheld for tax withholding obligation							33,255,495
Shares Issued in Period		94,927,065	94,927,065
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation \| ¥							¥ 150,706
Stock Issued During Period, Shares, New Issues							13,043,895
Stock Issued During Period, Value, New Issues \| ¥							¥ 45,728

Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Inventory [Line Items]
Inventory write-down	¥ 50,714	$ 7,958	¥ 44,916	¥ 526,473
Reclassification of inventory to operating lease assets at the beginning of lease period	15,169		135,276	99,523
Reclassification of operating lease assets to inventory at the end of lease period	12,051		115,887	79,065
Depreciation expense of operating lease assets	3,118	$ 489	19,389	20,458
Cost of Revenues
Inventory [Line Items]
Depreciation expense of operating lease assets	¥ 3,118		¥ 19,389	¥ 20,458

Property, Equipment and Software - Schedule of Depreciation and Amortization Expenses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, equipment and software	¥ 11,009	$ 1,728	¥ 11,852	¥ 13,704
General and administrative expenses
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, equipment and software	6,439		7,680	8,062
Research and development expenses
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, equipment and software	2,826		3,874	3,662
Cost of Revenues
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, equipment and software	1,715		217	1,899
Sales and marketing expenses
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, equipment and software	¥ 29		¥ 81	¥ 81

Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Parenthetical) (Details) ¥ in Thousands	Dec. 31, 2021 CNY (¥)
Accrued Liabilities And Other Current Liabilities [Abstract]
Withholding tax payable restricted share units current	¥ 126,198

Prepayments and Other Assets (Tables)

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Summary of Prepayments and Other Assets

The current and

non-current

portions of prepayments and other assets consist of the

following


	As of December 31,
	2020		2021
Prepayments and other current assets
Prepayments to vendors (Note a)		203,063		1,427,820
VAT recoverable		87,879		260,571
Prepayment for repurchase of ordinary shares		15,825		15,901
VAT refund for export sales (Note b)		5,510		14,041
Others (Note c)		4,089		10,694

		316,366		1,729,027

Other n on-current assets
Rental and other deposits		2,530		2,956

Condensed Financial Information of the Parent Company

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of the Parent Company

23.	Condensed financial information of the parent company

Rules

12-04(a)

and

4-08(e)(3)

of Regulation

S-X

require condensed financial information as to the financial position, cash flows and results of operations of a parent company as of and for the same periods for which the audited consolidated financial statements have been presented when the restricted net assets of the consolidated and unconsolidated subsidiaries together exceed 25% of consolidated net assets as of the end of the most recently completed fiscal year.

The following condensed financial statements of the Parent Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Parent Company used the equity method to account for its investment in its subsidiaries. Such investment is presented on the separate condensed balance sheets of the Parent Company as “Receivables from subsidiaries”. The Parent Company, its subsidiaries were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Parent Company’s share of income (loss) from its subsidiaries is reported as “share of income (loss) from subsidiaries” in the condensed financial statements.

The Parent Company is a Cayman Islands company and, therefore, is not subject to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted.

As of December 31, 2020 and 2021, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any.

For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s share of income (loss) from its subsidiaries was reported as a share of income (loss) of subsidiaries in the accompanying parent company only financial statements. Ordinarily, under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of the parent only financial information, the Company has continued to reflect its share, based on its proportionate interest, of the losses of its subsidiaries regardless of the carrying value of the investment even though the Company is not obligated to provide continuing support or

fund losses.

CONDENSED BALANCE SHEETS


	As of December 31,
	2020			2021
	RMB			RMB			US$ (Note 2(e))
ASSETS
Current assets:
Cash and cash equivalents		147			30,860			4,843
Receivables from subsidiaries		442,491			3,501,544			549,468

Total current assets		442,638			3,532,404			554,311

Non-current assets:
Investments in subsidiaries		—			470			74

Total assets		442,638			3,532,874			554,385

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Refund from depository bank – current		2,060			2,013			316
Non-current liabilities:
Refund from depository bank – non-current		8,020			5,824			914
Warrant liability		—			66,347			10,411

Total liabilities		10,080			74,184			11,641

Shareholders’ equity:
Ordinary shares		1			1			—
Subscriptions receivable from shareholders		(1	)		(1	)		—
Treasury stocks		(23,915	)		(231,281	)		(36,293	)
Additional paid-in capital		1,634,619			2,891,134			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	)		803,342			126,243

Total shareholders’ equity		432,558			3,458,690			542,744

Total liabilities and shareholders’ equity		442,638			3,532,874			554,385

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS


	For the year ended December 31,
	2019			2020			2021
	RMB			RMB			RMB			US$ (Note 2(e))
Cost of revenues and operating expenses:
Cost of revenues		—			—			(269	)		(42	)
Research and development expenses		(22,465	)		(652	)		(99,173	)		(15,562	)
Sales and marketing expenses		(358	)		(41	)		(8,239	)		(1,293	)
General and administrative expenses		(247,426	)		(2,277	)		(390,448	)		(61,270	)

Loss from operations		(270,249	)		(2,970	)		(498,129	)		(78,167	)

Interest income		5			—			1			—
Other income, net		—			2,425			2,037			320
Change in fair value of warrant liability		—			—			190,178			29,843
Share of income (losses) from subsidiaries*		(764,266	)		(214,549	)		2,306,195			361,892

Net income (loss)		(1,034,510	)		(215,094	)		2,000,282			313,888

Foreign currency translation adjustment, net of nil tax		9,688			(24,238	)		(22,145	)		(3,475	)

Total comprehensive income (loss)		(1,024,822	)		(239,332	)		1,978,137			310,413

CONDENSED STATEMENTS OF CASH FLOWS


	For the year ended December 31,
	2019			2020			2021
	RMB			RMB			RMB			US$ (Note 2(e))
Cash flows from operating activities
Receipt of refund from depository bank		—			13,285			—			—
Other cash used in operating activities		(39	)		(1	)		(6,462	)		(1,014	)

Net cash provided by (used in) operating activities		(39	)		13,284			(6,462	)		(1,014	)

Cash flows from investing activities
Decrease (increase) in receivables from subsidiaries		(1,252,029	)		28,451			(871,194	)		(136,709	)

Net cash provided by (used in) investing activities		(1,252,029	)		28,451			(871,194	)		(136,709	)

Cash flows from financing activities
Proceeds from issuance of ordinary shares		669,559			—			—			—
Proceeds from issuance of ordinary shares upon IPO		582,449			—			—			—
Payment for repurchase of ordinary shares		—			(23,915	)		(103,543	)		(16,248	)
Prepayment under share repurchase agreement		—			(16,146	)		(573	)		(90	)
Payment for cost of issuance		—			—			(519	)		(81	)
Proceeds from issuance of ordinary shares and warrants		—			—			1,029,455			161,544

Net cash provided by (used in) financing activities		1,252,008			(40,061	)		924,820			145,125

Net increase (decrease) in cash and cash equivalents		(60	)		1,674			47,164			7,402
Effect of exchange rate changes on cash		74			(1,541	)		(16,451	)		(2,582	)
Cash and cash equivalents, beginning of year		—			14			147			23

Cash and cash equivalents, end of year		14			147			30,860			4,843

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Stock Option Activity

The following table summarizes the share options for the years ended December 31, 2019, 2020 and 2021:


	Number of shares		Weighted-Average per Share Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
			RMB		Years		RMB
Outstanding a s of December 31, 2018, 2019 and 2020		—		—		—		—

Granted		114,000,000		4.90		—		—

Outstanding a s of December 31, 2021		114,000,000		4.90		9.10		—
Expected to vest a s of December 31, 2021		94,677,000		4.90		9.10		—
Exercisable a s of December 31, 2021		—		—		—		—

summay of fair values of the share options granted

The fair values of the share options granted by the Company to employees for the year ended December 31, 2021 are as follows:


	For the Year Ended December 31,
	2021

Weighted average grant date fair value of option per share		6.63
Aggregate grant date fair value of options		465,553

Summary of assumptions used to determine the fair value of stock options

The assumptions used to estimate the fair values of the share options granted were as follows:


	For the Year Ended December 31,
	2021
Risk-free rate of return (1)		1.25% to 1.85%
Dividend yield (2)		0%
Expected volatility (3)		136.91% to 142.01%
Expected term (4)		10 years
Exercise multiple (5)		2.80
Fair value of ordinary share	US$	3.78 to US$17.51

Restricted Share Units

Summary of Restricted Shares Activity

The following table summarizes the RSUs activity for the years ended December 31, 2019, 2020 and 2021:


	Number of shares			Weighted average grant date fair value
				RMB
Outstanding a s of December 31, 2018		32,030,000			1.55

Forfeited		(2,368,461	)		1.51
Vested		(13,928,205	)		1.59

Outstanding a s of December 31, 2019		15,733,334			1.51

Forfeited		(2,691,282	)		1.51
Vested		(4,002,052	)		1.51

Outstanding a s of December 31, 2020		9,040,000			1.51

Granted		236,768,940			3.74
Forfeited		(6,991,000	)		3.10
Vested		(101,574,270	)		2.15

Outstanding a s of December 31, 2021		137,243,670			4.81

Restricted Ordinary Shares

Summary of Restricted Shares Activity

The following table summarizes the restricted ordinary shares activity under Replacement Agreement for the year ended December 31, 2019:


	Number of shares			Weighted average grant date fair value
				RMB

Outstanding a s of December 31, 2018		17,594,000			2.56

Forfeited		(1,594,000	)		2.56
Vested		(16,000,000	)		2.56

Outstanding as of December 31, 2019, 2020 and 2021		—			—

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Assets and liabilities Measured at Fair Value on a Recurring Basis

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

As of December 31, 2020

Level 1

Level 2

Level 3

Balance at

fair value

Assets

Short-term investments

—

62,386

—

62,386

As of December 31, 202

Level 1

Level 2

Level 3

Balance at

fair value

Liabilities

Warrant liability

—

66,347

Summary of Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use.


	As of December 31,
	2020		2021
RMB denominated bank deposits with financial institutions in the PRC		110,241		1,167,445
US dollar denominated bank deposits with financial institutions in the PRC		248,716		1,447,336
Others denominated bank deposits with financial institutions in the PRC		-		39,746
US dollar denominated bank deposits with overseas financial institutions PRC		32,352		29,498
Others denominated bank deposits with overseas financial institutions		1		317

Total		391,310		2,684,342

Schedule of Estimated Useful Lives

The estimated useful lives are as follows:


		Leasehold improvements		the shorter of their useful lives and the lease terms
		Computers and electronic equipment		3 to 5 years
		Mechanical equipment		5 years
		Mining equipment		1.5 years
		Motor vehicles		5 years
		Software		3 years

Summary of Revenue Segregated by Geographic Region

he geographical region of revenue generated is based on the location at which the goods delivered or the services were provided:


Geographic region	For the Years Ended December 31,
	2019		2020		2021
Mainland China		1,063,630		379,418		1,779,923
Kazakhstan		—		47,792		711,596
Cyprus		—		—		633,322
Canada		22,738		162		402,489
Australia		3,591		114		361,377
United States of America		46,045		3,528		312,722
Thailand		171		31		289,013
Sverige		326		8		152,127
Hong Kong Special Administrative Region		11,216		12,301		87,971
Japan		236,206		—		3
Other foreign countries		38,700		4,332		256,163

Total		1,422,623		447,686		4,986,706

Short-Term Debts (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Short-Term Debts


	As of December 31,
	2020		2021
Short-term bank loans		34,754		—

Risks and Concentration

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Risks and Concentration

3.	Risks and concentration

(a)

Concentration of credit risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments and accounts receivable. The Company places its cash and cash equivalents and restricted cash with financial institutions with high credit ratings and quality.

The Company conducts credit evaluations of customers, and generally does not require collateral or other security from its customers. The Company establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers.

Accounts receivable are unsecured and are derived from revenue earned

through

customers. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them.

As of December 31, 2020 and 2021, accounts receivable were RMB7,128 and RMB367, respectively.

Accounts receivable concentration of credit risk is as below:


	As of December 31,
	2020			2021
Customer A		96	%			*
Customer B			*		52	%

*	Less than 10%

Customers which contributed more than 10% of total revenue are as below:


	For the Years Ended December 31,
	2019			2020			2021
Customer C			*		29	%			*
Customer D			*			*		18	%
Customer E		17	%			*			*
Customer F			*		16	%			*

*	Less than 10%

(b)

Supplier concentration

The Company purchased integrated circuits, an important component of its products, mainly from one supplier for the years ended December 31, 2019.

For the year ended December 31, 2020, the Company’s purchases of its integrated circuits mainly from two suppliers.

For the year ended December 31, 2021, the Company’s purchases substantially all its integrated circuits from one supplier.

Although only a limited number of manufacturers for such integrated circuits are available, management believes that they could change their suppliers within these manufacturers which provided integrated circuits on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would affect operating results adversely.

Share-based compensation - Summary of Assumptions Used to determine the Fair Value of Stock Optionsd (Detail)	12 Months Ended
	Dec. 31, 2021 ¥ / USD $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	0.00%
Expected term	10 years
Exercise multiple \| ¥ / USD	2.80
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate of return	1.85%
Expected volatility	142.01%
Fair value of ordinary share	$ 17.51
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate of return	1.25%
Expected volatility	136.91%
Fair value of ordinary share	$ 3.78