Ebang International Holdings Inc. Reports Unaudited Financial Results for The First Six Months of Fiscal Year 2021
10/01/2021 - 04:30 PM
HANGZHOU, China, Oct. 01, 2021 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a global application-specific integrated circuit (“ASIC”) chip design company and a manufacturer of high-performance Bitcoin mining machines, today announced its unaudited financial results for the first six months of fiscal year 2021.
Operational and Financial Highlights for the First Six Months of Fiscal Year 2021
Total computing power sold in the first six months of 2021 was 0.80 million Thash/s, representing a period-over-period increase of 220.00% from 0.25 million Thash/s in the same period of 2020.
Total net revenues in the first six months of 2021 were US$18.30 million , representing a 65.69% period-over-period increase from US$11.04 million in the same period of 2020.
Gross profit in the first six months of 2021 was US$5.64 million compared to the gross loss of US$0.97 million in the same period of 2020.
Net loss in the first six months of 2021 was US$4.26 million compared to US$6.96 million in the same period of 2020.
Unaudited Financial Results for the First Six Months of Fiscal Year 2021
Total net revenues in the first six months of 2021 were US$18.30 million , representing a 65.69% period-over-period increase from US$11.04 million in the same period of 2020. The period-over-period increase in total net revenues were mainly due to the increase of Bitcoin price in the first six months of 2021, which increase the expected returns on Bitcoin related activities such as mining, and in turn resulted in a much higher demand on our Bitcoin mining machines.
Cost of revenues in the first six months of 2021 was US$12.66 million compared to US$12.01 million in the same period of 2020. The cost of revenues remained stable mainly due to the combined impact of the increase in the Company’s sales and the lower inventory cost related to the utilization of the impaired inventories in our production.
Gross profit in the first six months of 2021 was US$5.64 million compared to the gross loss of US$0.97 million in the same period of 2020.
Total operating expenses in the first six months of 2021 were US$10.58 million compared to US$7.71 million in the same period of 2020.
Selling expenses in the first six months of 2021 maintain stable with the amount of US$0.59 million compared to US$0.45 million in the same period of 2020.General and administrative expenses in the first six months of 2021 were US$9.99 million compared to US$7.26 million in the same period of 2020. The period-over-period increase in general and administrative expenses was mainly caused by an increase in amortization of intangible asset for the exclusive Authorization of Patent Technology (AsicBoost) in Korea.Loss from operations in the first six months of 2021 was US$4.95 million compared to US$8.68 million in the same period of 2020.
Other income in the first six months of 2021 was US$0.17 million compared to US$0.02 million in the same period of 2020. The period-over-period increase in other income was mainly caused by the increase in investment income from short term investment in the six months ended June 30, 2021.
Government grants in the first six months of 2021 were US$0.02 million compared to US$2.54 million in the same period of 2020. The period-over-period decrease in government grants was mainly caused by the decrease of tax rewards from the Chinese government.
Other expense in the first six months of 2021 was US$1.15 million compared to US$0.02 million in the same period of 2020. The period-over-period increase in other expense was mainly caused by the loss on fair value changes from short term investment in the six months ended June 30, 2021.
Net loss in the first six months of 2021 was US$4.26 million compared to US$6.96 million in the same period of 2020.
Net loss attributable to Ebang International Holdings Inc. in the first six months of 2021 was US$3.58 million compared to US$6.21 million in the same period of 2020.
Basic and diluted net loss per shares in the first six months of 2021 were both US$0.02 compared to US$0.06 in the same period of 2020.
About Ebang International Holdings Inc.
Ebang International Holdings Inc. is a blockchain technology company with strong application-specific integrated circuit (ASIC) chip design capability. With years of industry experience and expertise in ASIC chip design, it has become a global bitcoin mining machine producer with steady access to wafer foundry capacity. With its licensed and registered entities in various jurisdictions, the Company intends to launch a professional, convenient and innovative digital asset financial service platform to expand into the upstream and the downstream of blockchain and cryptocurrency industry value chain. For more information, please visit https://ir.ebang.com.cn/. Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Certain statements contained herein are “forward-looking” statements within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “commit,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “remain,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such statements are not historical facts, and are based upon the Company’s current beliefs, plans and expectations, and the current market and operating conditions. Forward-looking statements involve inherent known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance and achievements to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements are made only as of the date indicated, and the Company undertakes no obligation to update or revise the information contained in any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.
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EBANG INTERNATIONAL HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Stated in US dollars)
June 30, 2021 December 31, 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 278,195,874 $ 13,669,439 Restricted cash, current 110,463 406,857 Investments 6,882,081 40,835,000 Accounts receivable, net 6,996,013 7,205,113 Notes receivable - 765,967 Advances to suppliers 3,114,174 221,186 Inventories, net 5,844,991 3,845,091 Prepayments 636,103 522,808 Due from related party 4,648 - Other current assets, net 804,943 1,128,599 Total current assets 302,589,290 68,600,060 Non-current assets: Restricted cash, non-current - 47,455 Operating lease right-of-use assets 606,695 898,335 Operating lease right-of-use assets - related parties 1,466,805 17,701 Property, plant and equipment, net 33,414,525 29,123,243 Intangible assets, net 22,410,188 23,077,435 VAT recoverables 28,440,372 21,897,063 Deferred tax assets 70,170 - Other assets 545,012 538,934 Total non-current assets 86,953,767 75,600,166 Total assets $ 389,543,057 $ 144,200,226 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 2,343,819 $ 2,762,187 Notes payable 2,740,621 1,087,673 Loans due within one year, less unamortized debt issuance costs - 765,967 Income taxes payable 562,452 556,137 Advances from customers 10,114,303 832,842 Accrued liabilities and other payables 12,053,301 21,921,614 Operating lease liabilities, current 743,368 659,807 Operating lease liabilities - related parties, current 589,450 17,701 Due to related party - 5,652,833 Total current liabilities 29,147,314 34,256,761 Non-current liabilities: Operating lease liabilities, non-current 7,065 118,827 Operating lease liabilities, related parties, non-current 608,107 - Deferred tax liabilities - 872 Total non-current liabilities 615,172 119,699 Total liabilities 29,762,486 34,376,460 Equity: Class A ordinary share, HKD0.001 par value, 333,374,217 shares authorized, 139,209,554 and 89,909,554 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively 17,848 11,411 Class B ordinary share, HKD0.001 par value, 46,625,783 shares authorized, 46,625,783 and 46,625,783 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively 5,978 5,978 Additional paid-in capital 393,010,189 138,288,921 Accumulated deficit (42,218,740 ) (38,581,419 ) Statutory reserves 11,106,522 11,049,847 Accumulated other comprehensive loss (8,256,547 ) (7,648,332 ) Total Ebang International Holdings Inc. shareholders’ equity 353,665,250 103,126,406 Non-controlling interest 6,115,321 6,697,360 Total equity 359,780,571 109,823,766 Total liabilities and equity $ 389,543,057 $ 144,200,226
EBANG INTERNATIONAL HOLDINGS INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Stated in US dollars)
For the six months ended June 30, 2021 For the six months ended June 30, 2020 Product revenue $ 15,310,854 $ 4,954,499 Service revenue 2,984,707 6,087,856 Total revenues 18,295,561 11,042,355 Cost of revenues 12,657,744 12,009,303 Gross profit (loss) 5,637,817 (966,948 ) Operating expenses: Selling expenses 594,027 452,608 General and administrative expenses 9,989,018 7,257,855 Total operating expenses 10,583,045 7,710,463 Loss from operations (4,945,228 ) (8,677,411 ) Other income (expenses): Interest income 119,772 12,714 Interest expenses (4,369 ) (579,486 ) Other income 167,382 16,080 Exchange gain 1,469,620 474,488 Government grants 21,678 2,541,708 Other expenses (1,154,704 ) (16,436 ) Total other income 619,379 2,449,068 Loss before income taxes benefit (provision) (4,325,849 ) (6,228,343 ) Income taxes benefit (provision) 69,964 (735,048 ) Net loss (4,255,885 ) (6,963,391 ) Less: net income attributable to non-controlling interest (675,239 ) (751,104 ) Net loss attributable to Ebang International Holdings Inc. $ (3,580,646 ) $ (6,212,287 ) Comprehensive loss Net loss $ (4,255,885 ) $ (6,963,391 ) Other comprehensive loss: Foreign currency translation adjustment (515,015 ) (1,189,594 ) Total comprehensive loss (4,770,900 ) (8,152,985 ) Less: comprehensive loss attributable to non-controlling interest (582,039 ) (876,484 ) Comprehensive loss attributable to Ebang International Holdings Inc. $ (4,188,861 ) $ (7,276,501 ) Net loss per ordinary share attributable to Ebang International Holdings Inc. Basic $ (0.02 ) $ (0.06 ) Diluted $ (0.02 ) $ (0.06 ) Weighted average ordinary shares outstanding Basic 169,460,752 111,876,848 Diluted 169,460,752 111,876,848
