SAIHEAT Limited Reports Unaudited Financial Results for the Six Months Ended June 30, 2024
Rhea-AI Summary
SAIHEAT reported unaudited financial results for H1 2024, showing total revenues of US$3.2 million, a 6% increase year-over-year. The company posted a gross margin loss of US$0.1 million and net losses of US$1.9 million, improved from US$3.7 million loss in H1 2023. Key developments include expansion of SAI NODE Marietta facility with 478 Bitmain miners, increasing hash rate by 68 PH/s, and multiple MoUs in the nuclear sector. The company's self-mining efficiency reached 27.3 J/TH, with operational hash rate around 150 PH/s. Cash position stood at US$1.9 million as of June 30, 2024.
Positive
- Revenue increased 6% YoY to US$3.2 million
- Net loss improved from US$3.7M to US$1.9M YoY
- Hash rate capacity increased by 68 PH/s with new mining machines
- Mining revenue grew from US$0.4M to US$1.7M YoY
Negative
- Gross margin turned negative at US$0.1M from positive US$0.2M YoY
- Sales of products decreased 37% to US$1.3M
- Hosting revenue declined from US$0.3M to US$0.05M
- Mining pool revenue decreased from US$0.2M to US$0.07M
News Market Reaction – SAIH
On the day this news was published, SAIH declined 21.48%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SINGAPORE, Nov. 13, 2024 (GLOBE NEWSWIRE) -- SAIHEAT Limited (f/k/a SAI.TECH Global Corporation) (“SAIHEAT” or the “Company”) (NASDAQ: SAIH, SAITW), today reported unaudited financial results for the six months ended June 30, 2024.
Financial Highlights for the Six Months Ended June 30, 2024
- Total revenues for the six months ended June 30, 2024, were US
$ 3.2 million , having increased6% compared to the six months ended June 30, 2023.
- Gross Margin for the six months ended June 30, 2024, was negative US
$ 0.1 million , compared to gross profits of US$ 0.2 million for the six months ended June 30, 2023.
- Net losses for the six months ended June 30, 2024, was US
$ 1.9 million compared to net losses of US$ 3.7 million for the six months ended June 30, 2023.
Mr. Arthur Lee, Chairman and Chief Executive Officer of the Company, stated that, “Despite the reduction in block rewards from the April ‘halving event’, our total revenue have increased
Recent Developments
On-site Project Development Update in the U.S.
- We expanded our SAI NODE Marietta facility, initiated a scale-up that began in December 2023. This expansion included the strategic addition of 478 Bitmain bitcoin mining machines, increasing our hash rate capacity by approximately 68 PH/s. With this deployment, we now have around 150 PH/s operational hash rate for our self-mining operations, achieving a self-mining efficiency of approximately 27.3 J/TH.
We signed a Memorandum of Understanding (MoU) with Idaho Competitive Aquatics, LLC in August 2024 to develop a model case of our Advanced Computing Center Ecosystem (ACCE), which is to utilize recycled computing heat as a replacement of nature gas heaters at the aquatic center. Upon the completion of the project, the new ACCE system is expected to eliminate CO2 emission from original nature gas heating by up to 96,000 pounds per month and lowering facility heating costs by over40% immediately.
We announced our latest All-in-One ACCE products, RACKCAB and HYDROCAB, which integrate server hosting system, CDU system and computing heat capture/recycling system into one standard cabinet. Our All-in-One ACCE product is developed as a low-cost and easy-to-install system for computing heat recycling. Both products are currently deployed and under installation at our customer.
Presence at In-Person Event
- We participated in the 2024 SelectUSA Investment Summit in June. This prestigious event connects investors, companies, and industry experts, serving as a crucial platform for fostering business investment. Dr. Tao Wu showcased our groundbreaking initiatives, including our Computing Heat Recycling R&D Center in Marietta, Ohio, which features the innovative Advanced Computing Center Ecosystem (ACCE). Our participation underscores our commitment to introducing sustainable technology solutions to the U.S. market and advancing our strategic plan.
Community and Partnership Engagement
- Our sponsored Computing Heat Recycle Center Education Program received a grant from the Marietta Community Foundation in May 2024 to support our continuing joint efforts to provide innovative learning opportunities for students while addressing food insecurity through produce grown in our computing heat recycling greenhouse.
- We signed a Memorandum of Understanding with Al-Farabi Kazakh National University in June 2024, to advance educational initiatives and scientific research in Kazakhstan, focusing on joint programs and research projects that leverage our expertise in AI computing and sustainable energy solutions.
HEATNUC Business Line Update
- We signed two Memorandums of Understanding (MoUs) in July 2024, aimed at enhancing cooperation within the small modular reactor (SMR) industry.
- We appointed François Morin as our Nuclear Energy Strategy Consultant in July 2024, bringing his vast experience from roles such as Director at the World Nuclear Association. Mr. Morin will focus on evaluating the company's expansion into the small modular reactor market, particularly in Asia and globally. His expertise will be instrumental in supporting our innovation and growth in the nuclear energy sector.
- In August 2024, we became a member of the World Nuclear Association (WNA). As part of our membership, we participated in the World Nuclear Symposium 2024 held in September 2024.
- In September 2024, we signed two MoUs that further solidify our position in the Middle Eastern nuclear and SMR markets. One MoU with Jiangsu Shentong Nuclear Equipment focuses on exporting control systems for nuclear power, and another with Shanghai Kaiquan Pump emphasizes joint production of nuclear and SMR equipment.
- We signed two additional MoUs in October 2024, targeting further cooperation in the nuclear and SMR sectors. The MoU with Kinze Nuclear Innovation focuses on nuclear technology consulting and digitalization services, while the one with Jiangsu Jintonglingguang Nuclear Energy Technology aims to enhance the production of nuclear equipment.
- In October 2024, we signed an MoU with Jiangsu Xuanrui Vibration Damping Equipment Co., focusing on product development and marketing in the large-scale nuclear power sector. This collaboration is set to enhance joint manufacturing and market expansion initiatives.
Financial Results for the Six Months Ended June 30, 2024
Revenues
Sales of Products. Sales of products represents the sales of high-performance digital asset mining machines to end customers. The revenue from sales of products was
Hosting Service. Hosting services includes all services related to hosting and daily maintenance of mining machines for customers. Our hosting revenue was derived from our hosting operations in Mexico, which was
Mining Pool. Mining pool income includes revenues from the Company’s self-owned sai.plus mining pool, representing mining rewards from sai.plus mining pool. The Company allocates mining rewards to each pool participant, mainly the hosting clients, net of the pool operator fees based on the sharing mechanism predetermined and records as cost of mining pool revenue. Our mining pool revenues were
Mining Revenue. Mining revenues represent mining rewards generated from the Company’s self-owned mining machines. The mining revenues are mainly derived from our operations in Mexico beginning in 2022 and self-constructed in Marietta in 2023. Our mining revenue were
Cost of Revenues
Cost of revenues primarily included the cost for the purchase of high-performance digital asset mining machines, costs incurred for our self-mining activities, and the direct costs incurred for the provision of hosting services and mining rewards allocated to each provider of pool participant in exchange for their computing power contributed to the mining pool.
The cost of revenues increased by
Gross Margin
Our gross profit decreased by
Selling and Marketing Expenses
Our selling and marketing expenses primarily consisted of staff costs and depreciation expenses to participate in marketing activities. Selling and marketing expenses decreased by
General and Administrative Expenses
Our general and administrative expenses mainly consisted of salaries and bonuses, office related expenses and professional service fees. General and administrative expenses decreased by
Research and Development Expenses
Our research and development expenses mainly consisted of salaries, bonuses, and research related expenses. Research and development expenses decreased by
Other Income, net
Other income was
Net loss
As a result of the foregoing, we had a net loss of
Liquidity
As of June 30, 2024, cash and cash equivalents, restricted cash were US
About SAIHEAT
SAIHEAT Limited (Nasdaq: SAIH) delivers integrated energy services for next-generation data centers. Its thermal module, HEATWIT, offers data center liquid cooling system and solutions for computing heat recycling. The power module, HEATNUC, focuses on global power resource development and modular nuclear power joint development. Formerly known as SAI.TECH Global Corporation, SAIHEAT became a publicly traded company on the Nasdaq Stock Market (NASDAQ) through a merger with TradeUP Global Corporation in May 2022. For more information on SAIHEAT, please visit https://www.saiheat.com
Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements include, but not limited to, statements concerning SAIHEAT and the Company’s operations, financial performance, and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. SAIHEAT cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic, and social conditions around the world including those discussed in SAIHEAT’s Form 20-F under the headings “Risk Factors”, “Results of Operations” and “Business Overview” and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date it is made and SAIHEAT specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.
Media Contact
pr@saiheat.com
Investor Relations Contact
ir@saiheat.com
| SAIHEAT Limited | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands, except for number of shares and per share data) | ||||||||
| As of December 31, 2023 | As of June 30, 2024 | |||||||
| (US$) | (US$) | |||||||
| Audited | (Unaudited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 3,176 | 1,884 | ||||||
| Restricted cash | — | 42 | ||||||
| Accounts receivable | 900 | 437 | ||||||
| Inventories | 44 | 7 | ||||||
| Crypto Assets | 6,709 | 6,382 | ||||||
| Stablecoin assets | 81 | 12 | ||||||
| Deposits, prepayments and other current assets, net | 1,341 | 1,647 | ||||||
| Total current assets | 12,251 | 10,411 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 4,994 | 4,710 | ||||||
| Operating lease right-of-use assets | 830 | 705 | ||||||
| Long term Assets | — | 1,758 | ||||||
| Total non-current assets: | 5,824 | 7,173 | ||||||
| Total assets | 18,075 | 17,584 | ||||||
| Liabilities and equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 45 | 83 | ||||||
| Operating lease liabilities-current | 241 | 160 | ||||||
| Accrued and other liabilities | 359 | 255 | ||||||
| Short term Borrowings | — | 929 | ||||||
| Commitments and contingent liabilities | — | — | ||||||
| Other payable and accrued liabilities | 42 | 47 | ||||||
| Total current liabilities | 687 | 1,474 | ||||||
| Non-current liabilities: | ||||||||
| Operating lease liabilities-non-current | 569 | 519 | ||||||
| Total non-current liabilities | 569 | 519 | ||||||
| Total Liabilities | 1,256 | 1,993 | ||||||
| Shareholders’ equity: | ||||||||
| Class A Ordinary shares ( 15,004,316 and 14,413,299 shares issued and outstanding in June 30, 2024 and December 31, 2023.) | 1 | 2 | ||||||
| Class B Ordinary shares ( and outstanding in June 30, 2024 and December 31, 2023.) | 1 | 1 | ||||||
| Additional paid-in capital | 48,680 | 49,399 | ||||||
| Accumulated deficit | (31,345 | ) | (33,282 | ) | ||||
| Accumulated other comprehensive income/(loss) | (518 | ) | (529 | ) | ||||
| Total shareholders’ equity | 16,819 | 15,591 | ||||||
| Total Liabilities and shareholders’ equity | 18,075 | 17,584 | ||||||
| SAIHEAT Limited | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME | ||||||||
| (In thousands, except for number of shares and per share data) | ||||||||
| For the Six Months Ended June 30, | ||||||||
| 2023 | 2024 | |||||||
| (US$) | (US$) | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenues | 3,026 | 3,204 | ||||||
| Cost of revenues | 2,847 | 3,319 | ||||||
| Gross Profit/(Loss) | 179 | (115 | ) | |||||
| Sales and marketing expenses | 652 | 123 | ||||||
| General and administrative expenses | 3,105 | 2,265 | ||||||
| Research and development expenses | 609 | 344 | ||||||
| Impairment of long-lived assets | — | — | ||||||
| Total operating expenses | 4,366 | 2,732 | ||||||
| Loss from operations | (4,187 | ) | (2,847 | ) | ||||
| Other income, net | 462 | 910 | ||||||
| Loss before income tax | (3,725 | ) | (1,937 | ) | ||||
| Income tax expenses | — | — | ||||||
| Net loss | (3,725 | ) | (1,937 | ) | ||||
| Other comprehensive loss | ||||||||
| Foreign currency translation loss | (131 | ) | (10 | ) | ||||
| Total comprehensive loss | (3,856 | ) | (1,947 | ) | ||||
| Loss per ordinary share | ||||||||
| Basic and diluted | (0.1578 | ) | (0.0792 | ) | ||||
| Weighted average number of ordinary shares outstanding: | ||||||||
| Basic & Diluted | 23,611,768 | 24,472,089 | ||||||
FAQ
What was SAIH's revenue for the first half of 2024?
How much did SAIH's net loss improve in H1 2024?
What was SAIH's hash rate increase after the Marietta facility expansion?
What was SAIH's cash position as of June 30, 2024?
