UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2024
Commission File Number: 001-39127
Canaan Inc.
28 Ayer Rajah Crescent
#06-08
Singapore 139959
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F
x Form 40-F ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Exhibit Index
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
| |
Canaan Inc. |
| |
|
| |
By: |
/s/
Nangeng Zhang |
| |
Name: |
Nangeng Zhang |
| |
Title: |
Chairman and Chief Executive Officer |
Date: November 20, 2024
Exhibit 99.1
Canaan Inc. Reports Unaudited Third Quarter
2024 Financial Results
- Total Revenue Increased to US$73.6 Million,
up 120.9% YoY -
- Total Computing Power Sold Achieved 7.3 Million
Thash/s, up 93.8% YoY -
Singapore, Nov. 20, 2024 /PRNewswire/ --
Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a leading high-performance computing solutions provider,
today announced its unaudited financial results for the three months ended September 30, 2024.
Third Quarter 2024 Operating and Financial
Highlights
Revenues were US$73.6 million, which beat
the previous guidance of US$73 million and increased 120.9% year-over-year.
Total computing power sold was 7.3 million
Thash/s, representing a year-over-year increase of 93.8%.
Mining revenue was US$9.0 million, with
147 Bitcoins mined with an average revenue per Bitcoin mined of US$61,034.
Loss from operations was US$56.8 million,
narrowing 49.6% year-over-year.
Nangeng Zhang, chairman, and chief executive officer
of Canaan, commented, “Despite a challenging third quarter for the industry, we delivered a solid US$73.6 million in total revenue,
exceeding our expectations. While Bitcoin prices remained soft in the quarter, the global network hash rate surged over 10%. Through strategic
planning and effective execution, we made further strides in our operations. Primarily driven by the A14’s continued large-scale
deliveries proceeding as scheduled, we recorded 7.3 million Thash/s of computing power sold, marking our highest sales volume in the past
11 quarters. Our mining operation matrix also continued to be optimized. Despite unfavorable Bitcoin prices, we mined 147 Bitcoins this
quarter, a 5% sequential increase.”
“Building on the success of the A14, our new A15 series, which features outstanding performance parameters, began small-scale deliveries
this quarter. We are working to optimize the A15’s yield rate and power efficiency, and anticipate ramping up to large-scale deliveries
in the fourth quarter. Meanwhile, we remained diligent in strengthening our presence in the North American market. We recently made good
progress with our Avalon A15 series, both air-cooled and liquid-cooled versions, including orders from public companies such as CleanSpark
and HIVE, which we announced in November. We are also moving steadily towards our 2025 mid-year 10EH/s self-mining target. By delivering
high-quality products and efficient alternative solutions, we are committed to empowering our global mining clients to navigate both
challenges and opportunities ahead.”
Jin "James" Cheng, chief financial officer
of Canaan, stated, “Although the Bitcoin prices remained under pressure in Q3, we overcame significant challenges to beat our expected
targets this quarter. Our mining machine sales reached their highest level in nearly two years, driven by our dedicated efforts in delivering
both the A14 and A15 models. This accomplishment is a testament to our strengthened production and delivery capabilities. Mining revenue
reached US$9 million in the quarter, holding steady compared to the second quarter, despite a 7.5% decrease in the average prices of Bitcoins
mined during the same periods. We also increased our balance sheet Bitcoin holdings to a record high of 1,231 Bitcoins, reinforcing our
confidence in the long-term value of our cryptocurrency assets.”
“Benefiting from the successful bulk delivery of the A14 products, continued presales of the A15 series, and the completion of the
third tranche of Series A preferred shares as we expected, our cash reserves increased to US$72 million by the end of the quarter.
The bolstered cash level has enabled us to accelerate the mass production ramp-up of the A15 model. As we approach a critical period of
opportunity with the market poised for improvement, we are dedicated to leveraging our high-quality products and enhanced delivery capabilities
to meet the diverse needs of our global mining customers. We believe our strategic investments in R&D, supply chain, and mining deployment
position us well to capitalize on the anticipated market upturn.”
Third Quarter 2024 Financial Results
Revenues in the third quarter of 2024 were
US$73.6 million, as compared to US$71.9 million in the second quarter of 2024 and US$33.3 million in the same period of 2023. Total revenues
consisted of US$64.6 million in products revenue, US$9.0 million in mining revenue and US$65,000 in other revenues.
Products revenue in the third quarter of
2024 was US$64.6 million, compared to US$61.8 million in the second quarter of 2024 and US$29.9 million in the same period of 2023. The
sequential increase was driven by the increased computing power sold. The year-over-year increase was driven by the increased computing
power sold and increased average selling price.
Mining revenue in the third quarter of
2024 was US$9.0 million, compared to US$9.3 million in the second quarter of 2024 and US$3.3 million in the same period of 2023. The year-over-year
increase was mainly attributable to the increased computing power energized for mining.
Cost of revenues in the third quarter of
2024 was US$95.1 million, compared to US$91.0 million in the second quarter of 2024 and US$102.4 million in the same period of 2023.
Product cost in the third quarter of 2024
was US$81.6 million, compared to US$79.7 million in the second quarter of 2024 and US$83.7 million in the same period of 2023. The sequential
increase was in line with revenue growth. The inventory write-down and prepayment write-down recorded for this quarter was US$22.9 million,
compared to US$17.3 million for the second quarter of 2024 and US$53.9 million for the same period of 2023. Product cost consists of direct
production costs of mining machines and AI products and indirect costs related to production, as well as inventory write-down and prepayment
write-down.
Mining cost in the third quarter of 2024
was US$13.5 million, compared to US$11.0 million in the second quarter of 2024 and US$18.7 million in the same period of 2023. Mining
costs herein consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed
mining machines. The sequential increase was mainly due to the increased depreciation driven by the increased deployed mining machines.
The year-over-year decreases were mainly due to the decreased depreciation which was driven by the end of the depreciation period of early
deployed mining machines and the impairment of the currently deployed mining machines. The depreciation in this quarter for deployed mining
machines was US$6.5 million, compared to US$4.8 million in the second quarter of 2024 and US$15.0 million in the same period of 2023.
Gross loss in the third quarter of 2024
was US$21.5 million, compared to US$19.1 million in the second quarter of 2024 and US$69.1 million in the same period of 2023.
Total operating expenses in the third quarter
of 2024 were US$35.3 million, compared to US$27.5 million in the second quarter of 2024 and US$43.8 million in the same period of 2023.
Research and development expenses in the third
quarter of 2024 were US$14.8 million, compared to US$14.6 million in the second quarter of 2024 and US$17.2 million in the same period
of 2023. The year-over-year decrease was mainly due to a decrease of US$1.7 million in staff costs and a decrease of US$0.5 million in
share-based compensation expenses. Research and development expenses in the third quarter of 2024 also included share-based compensation
expenses of US$1.9 million.
Sales and marketing expenses in the third quarter
of 2024 were US$1.7 million, compared to US$1.6 million in the second quarter of 2024 and US$2.5 million in the same period of 2023. The
year-over-year decrease was mainly due to a decrease of US$0.8 million in the advertising expenses. Sales and marketing expenses in the
third quarter of 2024 also included share-based compensation expenses of US$54 thousand.
General and administrative expenses in the third
quarter of 2024 were US$12.4 million, compared to US$10.4 million in the second quarter of 2024 and US$16.2 million in the same period
of 2023. The sequential increase was mainly due to a decrease in the realized gain on asset disposals. The year-over-year decrease was
mainly due to a decrease of US$2.5 million in share-based compensation expenses and an increase of US$0.5 million in the realized gain
on asset disposals. General and administrative expenses in the third quarter of 2024 also included share-based compensation expenses of
US$4.7 million.
Impairment on property, equipment and software
in the third quarter of 2024 was US$6.5 million, compared to US$0.8 million in the second quarter of 2024 and US$5.7 million in the
same period of 2023. The sequential and year-over-year increases were mainly due to the increased impairment for some A13 series of mining
rigs deployed as a result of increased Bitcoin mining difficulty post-halving.
Loss from operations in the third quarter
of 2024 was US$56.8 million, compared to US$46.6 million in the second quarter of 2024 and US$112.8 million in the same period of 2023.
Excess of fair value of Series A Convertible
Preferred Shares in the third quarter of 2024 was US$28.3 million, compared to nil in the second quarter of 2024 and nil in the same
period of 2023. For further information, please refer to "Preferred Shares Financing" in this press release.
Foreign exchange losses, net in the third
quarter of 2024 were US$1.0 million, compared with a gain of US$11.4 million in the second quarter of 2024 and a gain of US$10.9 million
in the same period of 2023, respectively. The foreign exchange losses were due to the U.S. dollar depreciation against the Renminbi during
the third quarter of 2024.
Net loss in the third quarter of 2024 was
US$75.6 million, compared to US$41.9 million in the second quarter of 2024 and US$80.1 million in the same period of 2023.
Non-GAAP adjusted EBITDA in the third quarter
of 2024 was a loss of US$34.1 million, as compared to a loss of US$30.6 million in the second quarter of 2024 and a loss of US$68.0 million
in the same period of 2023. For further information, please refer to "Use of Non-GAAP Financial Measures" in this press release.
Foreign currency translation adjustment, net
of nil tax, in the third quarter of 2024 was a gain of US$5.1 million, compared with a loss of US$4.0 million in the second quarter
of 2024 and a gain of US$7.7 million in the same period of 2023, respectively.
Basic and diluted net loss per American depositary
share (“ADS”) in the third quarter of 2024 were US$0.27. In comparison, basic and diluted net loss per ADS in the second
quarter of 2024 were US$0.15, while basic and diluted net loss per ADS in the same period of 2023 were US$0.47. Each ADS represents 15
of the Company's Class A ordinary shares.
As of September 30, 2024, the Company held
Cryptocurrency assets with a fair value of US$32.6 million and Cryptocurrency receivable with a fair value of US$46.4 million.
Cryptocurrency assets primarily consist of 482 bitcoins owned by the Company and 19.3 bitcoins received as customer deposits. Cryptocurrency
receivable consists of 600 bitcoins pledged for secured term loans, 100 bitcoins transferred to fixed term product, and 30 bitcoins prepaid
for professional services. As of September 30, 2024, the Company held a total of 1,231.3 bitcoins.
Total change in fair value of cryptocurrency assets
and cryptocurrency receivable in the third quarter of 2024 was an unrealized gain of US$2.5 million, compared to an unrealized loss of
US$9.8 million in the second quarter of 2024. The change in fair value of cryptocurrency assets was recorded in Change in fair value
of cryptocurrency as a loss of US$1.7 million, and the change in fair value of cryptocurrency receivable was recorded in Other
income (net) as a gain of US$4.2 million.
As of September 30, 2024, the Company had
cash of US$71.8 million, compared to US$96.2 million as of December 31, 2023.
Accounts receivable, net as of September 30,
2024, was US$1.4 million, compared to US$3.0 million as of December 31, 2023. Accounts receivable was mainly due to an installment
policy implemented for some major customers who meet certain conditions.
Contract liabilities as of September 30,
2024, were US$16.2 million, compared to US$19.6 million as of December 31, 2023.
Shares Outstanding
As of September 30, 2024, the Company had
a total of 273,741,843 ADSs outstanding, each representing 15 of the Company’s Class A ordinary shares.
Recent Developments
Expanded Mining Operation Footprint in Texas
and Pennsylvania
On November 15, 2024, the Company’s
wholly-owned subsidiary, Beet Digital LLC., entered into a strategic joint mining agreement with Luna Squares Texas LLC (“LS Texas”),
a West Texas Bitcoin mining firm, to collaborate on mining activities at LS Texas’ mining site. Based on current estimated configurations,
Canaan will install approximately 3,480 Avalon A14 series mining machines with an average hash rate of 150 Thash/s and 5,664 Avalon A15
series mining machines with an average hash rate of 194 Thash/s at LS Texas’ 30 MW site located in Willow Wells, Texas. The site
is expected to be energized by the first quarter of 2025. After the site is fully energized, this project will provide approximately 1.62
EH/s of computing power.
Additionally, Cantaloupe Digital LLC (“Cantaloupe”),
a wholly owned subsidiary of Canaan, recently amended its hosting agreement with Stronghold Digital Mining Hosting, LLC, an affiliate
of Stronghold Digital Mining, Inc. (“Stronghold”) and will deliver 4,000 Avalon A14 series mining machines, each with
an average hash rate of 150 Thash/s, to replace older Avalon models at Stronghold’s Panther Creek facility. In October, Cantaloupe
completed the replacement of 2,000 older-generation units with A14 series machines. The Company anticipates that these 4,000 A14 units
will be fully operational by December 31, 2024, resulting in a total of 6,000 A14 series machines at Panther Creek, Pennsylvania,
with a combined computing power of 0.9 Exahash/s.
Secured Order from New Customer CleanSpark
for 3,800 Avalon A1566I Miners
On November 1, 2024, Canaan U.S. Inc., a
wholly owned subsidiary of the Company, entered into a purchase agreement with a new customer, CleanSpark Inc., for its Avalon A1566I
miners.
According to the purchase agreement, Canaan U.S.
Inc. will provide CleanSpark with 3,800 Avalon A1566I Immersion Cooling Miners. The miners, with an average computing power of 249 Thash/s
without overclocking, are scheduled to be delivered in the fourth quarter of 2024.
Secured Large Orders from HIVE for 11,500
units of Avalon A1566 Miners
On November 11, 2024, Canaan Creative Global
Pte. Ltd. (“CCG”), a wholly owned Singapore subsidiary of the Company, entered into a purchase agreement with HIVE Digital
Technologies Ltd (“HIVE”).
According to the purchase agreement, CCG will
provide HIVE with 6,500 Avalon A1566 miners, with an average computing power of 185 Thash/s. Of the 6,500 A1566 miners, 500 miners have
been immediately delivered and are scheduled for installation. The remaining 6,000 machines will be delivered in four monthly shipments
of 1,500 units, from December 2024 through March 2025.
On November 20, 2024, CCG entered into a
follow-on order purchase agreement with HIVE.
According to the follow-on purchase agreement,
CCG will provide HIVE with 5,000 Avalon A15 series miners, with an average computing power of 194 Thash/s, expected to be delivered in
the first quarter of 2025.
Preferred Shares Financing
On November 27, 2023, the Company entered
into a Securities Purchase Agreement with an institutional investor (the "Buyer"), pursuant to which the Company agreed to issue
and sell to the Buyer up to 125,000 Series A Convertible Preferred Shares (the "Series A Preferred Shares") at the
price of US$1,000.00 for each Series A Preferred Share.
On December 11, 2023, the Company closed
the first tranche of the preferred shares financing (the "First Tranche Preferred Shares Financing") and was obligated to issue
the second tranche of the preferred shares financing (the "Forward Purchase Liabilities"), raising total net proceeds of US$25.4
million. Pursuant to the First Tranches Preferred Shares Financing, the Company issued 25,000 Preferred Shares in total at the price of
US$1,000.00 per Preferred Share.
In connection with the issuance of the Preferred
Shares, the Company caused The Bank of New York Mellon to deliver 8,000,000 ADSs collectively as pre-delivery shares (the "Pre-delivery
Shares"), each representing fifteen Class A ordinary shares of the Company, at the price of US$0.00000075 for each ADS. The
Pre-delivery Shares shall be returned to the Company at the end of the arrangement and the Company shall pay such Buyer US$0.00000075
for each such Pre-delivery Share. The Pre-delivery Shares are considered a form of stock borrowing facility and were accounted as a share
lending arrangement.
On January 22, 2024, the Company closed the
second tranche of the preferred shares financing (the "Second Tranche Preferred Shares Financing"), raising total net proceeds
of US$49.9 million. Pursuant to the Second Tranche Preferred Shares Financing, the Company issued 50,000 Preferred Shares in total at
the price of US$1,000.00 per Preferred Share and caused The Bank of New York Mellon to deliver an additional 2,800,000 ADSs collectively
as pre-delivery shares (the "Pre-delivery Shares"), each representing fifteen Class A ordinary shares of the Company, at
the price of US$0.00000075 for each ADS.
The Company intends to use the net proceeds from
the First Tranche and Second Tranche Preferred Shares for the expansion of wafer procurement, R&D activities, and other general corporate
purposes.
On September 27, 2024, the Company closed
the third and final tranche of Series A preferred shares financing (the "Third Tranche Closing"), raising total net proceeds
of US$50.0 million. Pursuant to the Third Tranche Closing, the Company issued 50,000 Series A Preferred Shares in total at the price
of US$1,000.00 per Series A Preferred Share.
The Company will use the proceeds from the Third
Tranche Closing to manufacture or invest in digital mining sites and equipment to be deployed or sold in North America, including any
acquisition or disposition of assets from or between subsidiaries.
Pursuant to the Global Amendment in connection
with the Third Tranche Closing, the Buyer agreed to return to the Company 2,800,000 ADSs of the Pre-Delivery Shares delivered to the Buyer
in the first tranche and the second tranche Series A preferred shares financing. The Company acknowledged that 1,345,203 ADSs of
2,800,000 ADSs of the Pre-Delivery Shares being returned to the Company would be returned in the form of 20,178,045 restricted class
A ordinary shares. The Company will have no obligation to issue any Pre-Delivery Shares to the Buyer in connection with the Third Tranche
Closing. As of the date of the Company’s third quarter 2024 earnings release, the Company has paid to the Buyer repurchase price
of US$2.10 and cancelled 20,178,045 restricted class A ordinary shares repurchased.
As of the date of the Company's earnings release
for the third quarter of 2024, the Company has 4,223,697,753 Class A ordinary shares, 311,624,444 Class B ordinary shares, and
50,000 Series A Preferred Shares issued and outstanding. The increase in the outstanding Class A ordinary shares compared to
the end of 2023 was due to the conversion from part of the Series A Preferred Shares to Class A ordinary shares by the Buyer
and the issuance of the Pre-delivery Shares.
Execution of a Securities Purchase Agreement
for Series A-1 Convertible Preferred Shares
On November 19, 2024, the Company
entered into a securities purchase agreement (the "Series A-1 Securities Purchase Agreement") with an institutional
investor (the "Buyer"), pursuant to which the Company shall issue and sell to the Buyer up to 30,000 Convertible
Series A-1 Preferred Shares (the “Series A-1 Preferred Shares”) at the price of US$1,000.00 for each
Series A-1 Preferred Share. The closing of the sale of the Series A-1 Preferred Shares under the Series A-1
Securities Purchase Agreement is conditioned upon general customary closing conditions.
The Company agreed that the proceeds from the
sale of the Series A-1 Preferred Shares will be used by the Company and/or its subsidiaries to manufacture or invest in digital mining
sites and equipment to be deployed or sold in North America, including any acquisition or disposition of assets from or between subsidiaries.
Bitcoin Fixed Term Product
During the third quarter of 2024, the Company
transferred 100 Bitcoins for fixed term product with an annual percentage rate of return (the “APR”) of 1.5% for 30 calendar
days. As of the date of this earnings release, the fixed term product has matured, and total principal and interest of 100.12 Bitcoins
have been transferred for open term product with an APR of 1% per annum.
Secured Term Loans
During the third quarter of 2024, the Company
pledged 70 Bitcoins for secured term loans with an aggregate carrying value of US$2.0 million for 18 months. The secured term loans enable
additional liquidity for the production expansion and operations of the Company.
Business Outlook
For the fourth quarter of 2024, the Company expects
total revenues to be approximately US$80 million. This forecast reflects the Company's current and preliminary views on the market and
operational conditions, which are subject to change.
Conference Call Information
The Company’s management team will hold
a conference call at 8:00 A.M. U.S. Eastern Time on November 20, 2024 (or 9:00 P.M. Singapore Time on the same day) to
discuss the financial results. Details for the conference call are as follows:
| Event Title: | Canaan Inc.
Third Quarter 2024 Earnings Conference Call |
Registration
Link: | https://register.vevent.com/register/BI93fff71a1b6d462d915c62d639a733cf |
All participants must use the link provided above
to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of
participant dial-in numbers and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference
call will be available at the Company’s investor relations website at investor.canaan-creative.com.
About Canaan Inc.
Established in 2013, Canaan Inc. (NASDAQ: CAN),
is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production,
and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's
founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology in bitcoin's history
under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan,
please visit https://www.canaan.io/.
Safe Harbor Statement
This announcement contains forward−looking
statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward−looking statements can be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,” “estimates”
and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan
Inc.’s strategic and operational plans, contain forward−looking statements. Canaan Inc. may also make written or oral forward−looking
statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K,
in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors
or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.’s beliefs and expectations,
are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the
following: the Company’s goals and strategies; the Company’s future business development, financial condition and results
of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company’s expectations regarding demand
for and market acceptance of its products, especially its bitcoin mining machines; the Company’s expectations regarding maintaining
and strengthening its relationships with production partners and customers; the Company’s investment plans and strategies, fluctuations
in the Company’s quarterly operating results; competition in its industry; and relevant government policies and regulations relating
to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company’s filings with
the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan Inc.
does not undertake any obligation to update any forward−looking statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
In evaluating Canaan’s business, the Company
uses non-GAAP measures, such as adjusted EBITDA, as supplemental measures to review and assess its operating performance. The Company
defines adjusted EBITDA as net loss excluding income tax expenses (benefit), interest income, depreciation and amortization expenses,
share-based compensation expenses, impairment on property, equipment and software, change in fair value of financial instruments and excess
of fair value of Series A Convertible Preferred Shares. The Company believes that the non-GAAP financial measures provide useful
information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance
and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial
and operational decision-making.
The non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools
and investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other
consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. One of the key limitations of using adjusted
EBITDA is that it does not reflect all of the items of income and expense that affect the Company’s operations. Further, the non-GAAP
financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability
may be limited. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when evaluating the Company’s performance.
Investor Relations Contact
Canaan Inc.
Xi Zhang
Email: IR@canaan-creative.com
ICR, LLC.
Robin Yang
Tel: +1 (347) 396-3281
Email: canaan.ir@icrinc.com
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share and per share data, or as
otherwise noted)
| | |
As of December 31, | | |
As of September 30, | |
| | |
2023 | | |
2024 | |
| | |
| USD | | |
| USD | |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash | |
| 96,154 | | |
| 71,782 | |
| Accounts receivable, net | |
| 2,997 | | |
| 1,375 | |
| Cryptocurrency receivable, current | |
| - | | |
| 8,261 | |
| Inventories | |
| 142,287 | | |
| 87,802 | |
| Prepayments and other current assets | |
| 122,242 | | |
| 138,273 | |
| Total current assets | |
| 363,680 | | |
| 307,493 | |
| Non-current assets: | |
| | | |
| | |
| Cryptocurrency | |
| 28,342 | | |
| 32,632 | |
| Cryptocurrency receivable, non-current | |
| - | | |
| 38,127 | |
| Property, equipment and software, net | |
| 29,466 | | |
| 40,153 | |
| Intangible asset | |
| - | | |
| 954 | |
| Operating lease right-of-use assets | |
| 1,690 | | |
| 3,363 | |
| Deferred tax assets | |
| 66,809 | | |
| 76,088 | |
| Other non-current assets | |
| 486 | | |
| 472 | |
| Non-current financial investment | |
| 2,824 | | |
| 2,854 | |
| Total non-current assets | |
| 129,617 | | |
| 194,643 | |
| Total assets | |
| 493,297 | | |
| 502,136 | |
| LIABILITIES, AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Accounts payable | |
| 6,245 | | |
| 16,735 | |
| Contract liabilities | |
| 19,614 | | |
| 16,238 | |
| Income tax payable | |
| 3,534 | | |
| 3,535 | |
| Accrued liabilities and other current liabilities | |
| 64,240 | | |
| 36,178 | |
| Operating lease liabilities, current | |
| 1,216 | | |
| 1,407 | |
| Preferred Shares forward contract liability | |
| 40,344 | | |
| - | |
| Series A Convertible Preferred Shares | |
| - | | |
| 77,104 | |
| Total current liabilities | |
| 135,193 | | |
| 151,197 | |
| Non-current liabilities: | |
| | | |
| | |
| Long-term loans | |
| - | | |
| 23,963 | |
| Lease liabilities, non-current | |
| 210 | | |
| 1,636 | |
| Deferred tax liability | |
| - | | |
| 162 | |
| Other non-current liabilities | |
| 9,707 | | |
| 9,372 | |
| Total liabilities | |
| 145,110 | | |
| 186,330 | |
| Shareholders’ equity: | |
| | | |
| | |
| Ordinary shares (US$0.00000005 par value; 999,999,875,000 shares authorized, 3,772,078,667 and 4,555,500,242 shares issued, 3,514,973,327 and 4,324,281,437 shares outstanding as of December 31, 2023 and September 30, 2024, respectively) | |
| - | | |
| - | |
| Treasury stocks (US$0.00000005 par value; 257,105,340 shares as of December 31, 2023 and 231,218,805 shares as of September 30, 2024, respectively) | |
| (57,055 | ) | |
| (57,055 | ) |
| Additional paid-in capital | |
| 653,860 | | |
| 763,293 | |
| Statutory reserves | |
| 14,892 | | |
| 14,892 | |
| Accumulated other comprehensive loss | |
| (43,879 | ) | |
| (47,736 | ) |
| Accumulated deficit | |
| (219,631 | ) | |
| (357,588 | ) |
| Total shareholders’ equity | |
| 348,187 | | |
| 315,806 | |
| Total liabilities and shareholders’ equity | |
| 493,297 | | |
| 502,136 | |
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE LOSS
(all amounts in thousands of USD, except share and per share data,
or as otherwise noted)
| | |
For the Three Months Ended | |
| | |
September 30, 2023 | | |
June 30, 2024 | | |
September 30, 2024 | |
| | |
USD | | |
USD | | |
USD | |
| Revenues | |
| | |
| | |
| |
| Products revenue | |
| 29,937 | | |
| 61,751 | | |
| 64,584 | |
| Mining revenue | |
| 3,264 | | |
| 9,308 | | |
| 8,959 | |
| Other revenues | |
| 118 | | |
| 799 | | |
| 65 | |
| Total revenues | |
| 33,319 | | |
| 71,858 | | |
| 73,608 | |
| Cost of revenues | |
| | | |
| | | |
| | |
| Product cost | |
| (83,668 | ) | |
| (79,661 | ) | |
| (81,625 | ) |
| Mining cost | |
| (17,908 | ) | |
| (11,037 | ) | |
| (13,476 | ) |
| Other cost | |
| (833 | ) | |
| (290 | ) | |
| (18 | ) |
| Total cost of revenues | |
| (102,409 | ) | |
| (90,988 | ) | |
| (95,119 | ) |
| Gross loss | |
| (69,090 | ) | |
| (19,130 | ) | |
| (21,511 | ) |
| Operating expenses: | |
| | | |
| | | |
| | |
| Research and development expenses | |
| (17,152 | ) | |
| (14,648 | ) | |
| (14,761 | ) |
| Sales and marketing expenses | |
| (2,491 | ) | |
| (1,578 | ) | |
| (1,719 | ) |
| General and administrative expenses | |
| (16,223 | ) | |
| (10,445 | ) | |
| (12,392 | ) |
| Impairment on property, equipment and software | |
| (5,691 | ) | |
| (798 | ) | |
| (6,462 | ) |
| Impairment on cryptocurrency | |
| (2,199 | ) | |
| - | | |
| - | |
| Total operating expenses | |
| (43,756 | ) | |
| (27,469 | ) | |
| (35,334 | ) |
| Loss from operations | |
| (112,846 | ) | |
| (46,599 | ) | |
| (56,845 | ) |
| Interest income | |
| 61 | | |
| 66 | | |
| 158 | |
| Interest expense | |
| - | | |
| (14 | ) | |
| (247 | ) |
| Change in fair value of cryptocurrency | |
| - | | |
| (5,125 | ) | |
| (1,672 | ) |
| Change in fair value of financial instrument | |
| - | | |
| (225 | ) | |
| 1,243 | |
| Excess of fair value of Series A Convertible Preferred Shares | |
| - | | |
| - | | |
| (28,297 | ) |
| Foreign exchange gains (losses), net | |
| 10,890 | | |
| 11,364 | | |
| (1,036 | ) |
| Other income (expense), net | |
| 1,349 | | |
| (3,257 | ) | |
| 4,408 | |
| Loss before income tax expenses | |
| (100,546 | ) | |
| (43,790 | ) | |
| (82,288 | ) |
| Income tax benefit | |
| 20,443 | | |
| 1,910 | | |
| 6,710 | |
| Net loss | |
| (80,103 | ) | |
| (41,880 | ) | |
| (75,578 | ) |
| Foreign currency translation adjustment, net of nil tax | |
| 7,662 | | |
| (3,999 | ) | |
| 5,129 | |
| Total comprehensive loss | |
| (72,441 | ) | |
| (45,879 | ) | |
| (70,449 | ) |
| Weighted average number of shares used in per class A and Class B ordinary share calculation: | |
| | | |
| | | |
| | |
| — Basic | |
| 2,562,542,847 | | |
| 4,117,791,601 | | |
| 4,163,053,834 | |
| — Diluted | |
| 2,562,542,847 | | |
| 4,117,791,601 | | |
| 4,163,053,834 | |
| Net loss per class A and Class B ordinary share (cent per share) | |
| | | |
| | | |
| | |
| — Basic | |
| (3.13 | ) | |
| (1.02 | ) | |
| (1.82 | ) |
| — Diluted | |
| (3.13 | ) | |
| (1.02 | ) | |
| (1.82 | ) |
Share-based
compensation expenses were included in: | |
| | | |
| | | |
| | |
| Cost of revenues | |
| 67 | | |
| 59 | | |
| 53 | |
| Research and development expenses | |
| 2,411 | | |
| 1,702 | | |
| 1,882 | |
| Sales and marketing expenses | |
| 86 | | |
| 13 | | |
| 55 | |
| General and administrative expenses | |
| 7,176 | | |
| 4,750 | | |
| 4,694 | |
The table below sets forth a reconciliation of net loss to Non-GAAP
adjusted EBITDA for the period indicated:
| | |
For the Three Months Ended | |
| | |
September 30, 2023 | | |
June 30,
2024 | | |
September 30, 2024 | |
| | |
USD | | |
USD | | |
USD | |
| Net loss | |
| (80,103 | ) | |
| (41,880 | ) | |
| (75,578 | ) |
| Income tax benefit | |
| (20,443 | ) | |
| (1,910 | ) | |
| (6,710 | ) |
| Interest income | |
| (61 | ) | |
| (66 | ) | |
| (158 | ) |
| Interest expense | |
| | | |
| 14 | | |
| 247 | |
| EBIT | |
| (100,607 | ) | |
| (43,842 | ) | |
| (82,199 | ) |
| Depreciation and amortization expenses | |
| 17,166 | | |
| 5,650 | | |
| 7,855 | |
| EBITDA | |
| (83,441 | ) | |
| (38,192 | ) | |
| (74,344 | ) |
| Share-based compensation expenses | |
| 9,740 | | |
| 6,524 | | |
| 6,684 | |
| Impairment on property, equipment and software | |
| 5,691 | | |
| 798 | | |
| 6,462 | |
| Change in fair value of financial instruments | |
| - | | |
| 225 | | |
| (1,243 | ) |
| Excess of fair value of Series A Convertible Preferred Shares | |
| - | | |
| - | | |
| 28,297 | |
| Non-GAAP adjusted EBITDA | |
| (68,010 | ) | |
| (30,645 | ) | |
| (34,144 | ) |
Canaan (NASDAQ:CAN)
Historical Stock Chart
From Nov 2024 to Dec 2024
Canaan (NASDAQ:CAN)
Historical Stock Chart
From Dec 2023 to Dec 2024
