Canaan Announces Improved Revenue Visibility in 2021
February 10 2021 - 6:00AM
Canaan Inc. (NASDAQ: CAN) ("Canaan" or the "Company"), a leading
high-performance computing solutions provider, today announced that
its revenue visibility has improved substantially in 2021 as a
result of attaining purchase orders totaling more than 100,000
units of bitcoin mining machines from customers in North America.
Many of those purchase orders were placed with prepayment and will
likely occupy the Company’s current manufacturing capacity entirely
for the full year of 2021 and beyond. With those fully committed
purchase orders, the Company now enjoys a much higher degree of
revenue visibility and more precise forecast. As such, the Company
is able to leverage such information and additional liquidity to
conduct its component purchases, production scheduling, warehousing
and logistics.
Mr. Nangeng Zhang, Chairman and Chief Executive
Officer of Canaan, commented, “We have changed our operations model
in 2021. Previously we were selling bitcoin mining machines mostly
to individual mining operators who may not have longer-term
planning. In late 2020, we shifted our client base to mostly
publicly traded companies and bitcoin-focused investment funds
which tend to place sizable orders with longer-term commitment. As
a result, we can now forecast our revenue much more precisely. Our
increased revenue visibility is not only enabling us to plan our
production and logistics well in advance, but also helping us to
optimize our cost structure and improve our customer satisfaction
rate. Above all, it should help us achieve profitable growth for
the long run.”
About Canaan Inc.Established in
2013, Canaan Inc. provides high-performance computing solutions to
efficiently solve complex problems. In 2016, Canaan successfully
initiated the production of its first 16nm chip and passed the test
to receive China's national high-tech enterprise certification. In
2018, Canaan achieved major technological breakthroughs to launch
the K210, the world's first-ever RISC-V-based edge artificial
intelligence (AI) chip, which is now widely used for access control
in situations such as smart door locks and more. Canaan Inc. is
currently focused on the research and development of advanced
technology, including such areas as AI chips, AI algorithms, AI
architectures, system on a chip (SoC) integration and chip
integration. Using the AI chip as its base, Canaan Inc. has
established an intellectual value chain. Canaan Inc. also provides
a suite of AI service solutions and is able to tailor these
solutions to the needs of its partners. For more information,
please visit: investor.canaan-creative.com.
Safe Harbor StatementThis
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
in China; 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, including its registration statement on Form F−1, as amended,
and its annual reports on Form 20−F. 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.
Investor Relations
ContactCanaan Inc.Mr. Shaoke LiEmail:
IR@canaan-creative.com
ICR Inc.Jack WangTel: +1 (347) 396-3281Email:
canaan.ir@icrinc.com
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