Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,”
“we” or “our”), a global blockchain technology and Fintech company,
today announced its financial results for the fiscal year ended
December 31, 2022.
Operational and Financial Highlights for Fiscal Year
2022
Total computing power sold in fiscal year 2022
was 0.41 million Thash/s, representing a year-over-year decrease of
72.27% from 1.47 million Thash/s in fiscal year 2021.
Total net revenues in fiscal year 2022 were
US$32.33 million, representing a 37.17% year-over-year decrease
from US$51.45 million in fiscal year 2021.
Gross profit in fiscal year 2022 was US$15.41
million compared to the gross profit of US$29.22 million in fiscal
year 2021.
Net loss in fiscal year 2022 was US$45.76
million compared to net income of US$2.77 million in fiscal year
2021.
Mr. Dong Hu, Chairman, and Chief Executive Officer of the
Company, commented, “In the past year, we have been committed to
expanding our global Fintech business. While our cryptocurrency
exchange, cross-border payment and foreign exchange business are in
their infancy due to the well-publicized industry volatility and
the macroeconomic environment, we continue to believe in the future
prospects of blockchain technology and Fintech industry generally.
As these business lines develop beyond their infancy, we expect to
distinguish ourselves from other industry participants by
prioritizing the expansion of our business within a sound
regulatory system, providing quality online trading services to our
customers, and striving to improve the protection mechanism for
safety, reliability and compliance. We are confident in the various
opportunities and challenges ahead, and at the same time, as
always, we adhere to Fintech as our core driver to continuously
launch diversified products and services.”
Financial Results for Fiscal Year 2022
Total net revenues in fiscal year 2022 were
US$32.33 million, compared to US$51.45 million in fiscal year 2021.
The year-over-year decrease in total net revenues was primarily due
to, among others, Bitcoin price’s continued decrease and large
cryptocurrency exchange platforms declaring bankruptcy in 2022,
which led to investors being increasingly cautious in investment.
Our chip suppliers also reduced their production capacity due to
the impact of COVID-19, resulting in our inability to produce at
full capacity, insufficient inventory and inability to meet the
market demand. With limited raw materials, we optimized our
hardware structure to ensure our products’ competitiveness.
Cost of revenues in fiscal year 2022 was
US$16.92 million, compared to US$22.23 million in fiscal year 2021.
The year-over-year decrease in cost of revenues was a result of a
decrease in sales. Our cost of revenues for fiscal year 2022
primarily consists of impairment charge on write-downs for the
potentially obsolete, slow-moving inventory and lower of cost or
market, and VAT recoverable impairment of $4.5 million recorded in
2022 which was mainly associated with the disposal of Wuhai Ebang
Information Technology Co., Ltd.
Gross profit in fiscal year 2022 was US$15.41
million, compared to the gross profit of US$29.22 million in fiscal
year 2021.
Total operating expenses in the fiscal year
2022 were US$63.41 million compared to US$27.19 million in fiscal
year 2021.
- Selling expenses in fiscal year 2022 were
US$1.96 million compared to US$1.42 million in fiscal year 2021.
The year-over-year increase in selling expenses was mainly due to
increased advertising and marketing expenses occurred in relation
to development of our Fintech businesses.
- General and administrative expenses in fiscal
year 2022 were US$61.45 million compared to US$25.77 million in
fiscal year 2021. The year-over-year increase in general and
administrative expenses was mainly due to increases in amortization
expenses and impairment losses relating to intangible assets and
employee stock ownership plan related expenses.
Gain from disposal of
subsidiaries in fiscal year 2022 was US$0.006 million
compared to nil in fiscal year 2021. The year-over-year increase in
gain from disposal of subsidiaries was primarily due to the
disposal of Ebang Hongling and Wuhai Ebang during 2022.
Loss from operations in fiscal year 2022 was
US$47.99 million compared to income from operations of US$2.03
million in fiscal year 2021.
Interest income in fiscal year 2022 was US$4.36
million compared to US$1.78 million in fiscal year 2021. The
year-over-year increase in interest income was primarily due to the
interest income from our investments in term deposit and financing
products in 2022.
Other income in fiscal year 2022 was US$1.03
million compared to US$0.13 million in fiscal year 2021. The
year-over-year increase in interest income was primarily due to the
liability waived before the deregistration of a subsidiary.
Government grants in fiscal year 2022 were
US$0.08 million compared to US$0.44 million in fiscal year 2021.
The year-over-year decrease in government grants was primarily due
to the decrease of non-recurring rebates from local government.
Net loss in fiscal year 2022 was US$45.76
million compared to net income of US$2.77 million in fiscal year
2021.
Net loss attributable to Ebang International Holdings
Inc. in fiscal year 2022 was US$43.89 million compared to
net income attributable to Ebang International Holdings Inc. of
US$4.43 million in fiscal year 2021.
Basic and diluted net loss per share in fiscal
year 2022 was US$7.03 compared to basic and diluted net earnings
per share of US$0.75 in fiscal year 2021.
Cash and cash equivalents were US$251.29
million as of December 31, 2022, compared with US$239.87 million as
of December 31, 2021.
About Ebang International Holdings Inc.
Ebang International Holdings Inc. is a global blockchain
technology and Fintech company with strong application-specific
integrated circuit (ASIC) chip design capability. With years of
industry experience and expertise, it has become a global Bitcoin
mining machine producer. Based on its deep understanding of the
Fintech industry and compliance with laws and regulations in
various jurisdictions, it has launched professional, convenient and
innovative Fintech service platforms. It strives to expand into the
upstream and downstream markets of the blockchain and Fintech
industry value chain to achieve diversified products and services.
For more information, please visit https://ir.ebang.com/.
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. These forward-looking statements
include, without limitation, the Company’s development plans and
business outlook, which can be identified by terminology such as
“may,” “will,” “expects,” “anticipates,” “aims,” “potential,”
“future,” “intends,” “plans,” “believes,” “estimates,” “continue,”
“likely to,” and other 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 include, but are not limited
to, statements regarding our future operating results and financial
position, our business strategy and plans, expectations relating to
our industry, the regulatory environment, market conditions, trends
and growth, expectations relating to customer behaviors and
preferences, our market position and potential market
opportunities, and our objectives for future operations.
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. These risks and uncertainties include
our ability to successfully execute our business and growth
strategy and maintain future profitability, market acceptance of
our products and services, our ability to further penetrate our
existing customer base and expand our customer base, our ability to
develop new products and services, our ability to expand
internationally, the success of any acquisitions or investments
that we make, the efforts of increased competition in our markets,
our ability to stay in compliance with applicable laws and
regulations, market conditions across the blockchain, Fintech and
general market, political and economic conditions. 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.
Investor Relations ContactFor investor and
media inquiries, please contact:
Ebang International Holdings Inc.Email: ir@ebang.com
Ascent Investor Relations LLCMs. Tina XiaoTel: (917)
609-0333Email: tina.xiao@ascent-ir.com
EBANG INTERNATIONAL HOLDINGS
INC.CONSOLIDATED BALANCE SHEETS
(Stated in US dollars)
|
December 31,2022 |
|
|
December 31,2021 |
|
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
251,294,952 |
|
|
$ |
239,872,316 |
|
Restricted cash, current |
|
29,039 |
|
|
|
171,156 |
|
Short-term investments |
|
5,835,377 |
|
|
|
35,443,246 |
|
Accounts receivable, net |
|
3,334,727 |
|
|
|
9,872,746 |
|
Advances to suppliers |
|
1,178,168 |
|
|
|
1,057,096 |
|
Inventories, net |
|
440,064 |
|
|
|
7,137,538 |
|
Prepayments |
|
281,611 |
|
|
|
283,776 |
|
Other current assets, net |
|
6,711,422 |
|
|
|
4,994,271 |
|
Total current
assets |
|
269,105,360 |
|
|
|
298,832,145 |
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
36,549,278 |
|
|
|
33,329,610 |
|
Intangible assets, net |
|
6,890,738 |
|
|
|
22,512,208 |
|
Operating lease right-of-use assets |
|
5,343,608 |
|
|
|
2,132,247 |
|
Operating lease right-of-use assets - related parties |
|
519,140 |
|
|
|
1,136,775 |
|
Restricted cash, non-current |
|
903,125 |
|
|
|
883,130 |
|
Goodwill |
|
2,299,628 |
|
|
|
- |
|
VAT recoverable |
|
21,132,898 |
|
|
|
26,332,231 |
|
Other assets |
|
1,421,309 |
|
|
|
705,825 |
|
Total non-current
assets |
|
75,059,724 |
|
|
|
87,032,026 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
344,165,084 |
|
|
$ |
385,864,171 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
1,456,577 |
|
|
$ |
3,387,836 |
|
Accrued liabilities and other payables |
|
11,519,091 |
|
|
|
8,975,988 |
|
Operating lease liabilities, current |
|
1,217,604 |
|
|
|
851,936 |
|
Operating lease liabilities - related parties, current |
|
283,567 |
|
|
|
595,424 |
|
Advances from customers |
|
1,010,852 |
|
|
|
894,174 |
|
Total current
liabilities |
|
15,487,691 |
|
|
|
14,705,358 |
|
|
|
|
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
|
|
|
Operating lease liabilities – related party, non-current |
|
- |
|
|
|
288,563 |
|
Deferred tax liabilities |
|
1,133,539 |
|
|
|
178,582 |
|
Operating lease liabilities, non-current |
|
5,755,973 |
|
|
|
1,712,303 |
|
Total non-current
liabilities |
|
6,889,512 |
|
|
|
2,179,448 |
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
22,377,203 |
|
|
|
16,884,806 |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Class A ordinary share, HKD0.03 par value, 11,112,474 shares
authorized, 4,700,852 and 4,640,318 shares issued and outstanding
as of December 31, 2022 and 2021, respectively(1) |
|
18,080 |
|
|
|
17,848 |
|
Class B ordinary share, HKD0.03 par value, 1,554,192 shares
authorized, issued and outstanding as of December 31, 2022 and
2021, respectively(1) |
|
5,978 |
|
|
|
5,978 |
|
Additional paid-in capital |
|
397,620,927 |
|
|
|
393,717,189 |
|
Statutory reserves |
|
11,079,649 |
|
|
|
11,079,649 |
|
Accumulated deficit |
|
(78,068,522 |
) |
|
|
(34,180,280 |
) |
Accumulated other comprehensive loss |
|
(11,724,531 |
) |
|
|
(6,897,005 |
) |
Total Ebang
International Holdings Inc. shareholders’ equity |
|
318,931,581 |
|
|
|
363,743,379 |
|
|
|
|
|
|
|
|
|
Non-controlling interest |
|
2,856,300 |
|
|
|
5,235,986 |
|
|
|
|
|
|
|
|
|
Total
equity |
|
321,787,881 |
|
|
|
368,979,365 |
|
|
|
|
|
|
|
|
|
Total liabilities and
equity |
$ |
344,165,084 |
|
|
$ |
385,864,171 |
|
(1) |
Retrospectively adjusted for the effect of the Reverse Stock Split
effected on November 20, 2022. See Note 12. |
|
|
EBANG INTERNATIONAL HOLDINGS
INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)(Stated in US
dollars)
|
For the year
endedDecember 31,
2022 |
|
|
For the year
endedDecember 31,
2021 |
|
|
For the year
endedDecember 31,2020 |
|
Product revenue |
$ |
29,537,224 |
|
|
$ |
48,323,022 |
|
|
$ |
9,677,278 |
|
Service revenue |
|
2,790,895 |
|
|
|
3,127,225 |
|
|
|
9,327,023 |
|
Total
revenues |
|
32,328,119 |
|
|
|
51,450,247 |
|
|
|
19,004,301 |
|
Cost of revenues |
|
16,915,795 |
|
|
|
22,227,055 |
|
|
|
21,903,644 |
|
Gross profit
(loss) |
|
15,412,324 |
|
|
|
29,223,192 |
|
|
|
(2,899,343 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Selling expenses |
|
1,956,120 |
|
|
|
1,418,586 |
|
|
|
925,373 |
|
General and administrative
expenses |
|
61,450,444 |
|
|
|
25,774,237 |
|
|
|
22,822,085 |
|
Total operating
expenses |
|
63,406,564 |
|
|
|
27,192,823 |
|
|
|
23,747,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of
subsidiaries |
|
(5,941 |
) |
|
|
- |
|
|
|
- |
|
Income (loss) from
operations |
|
(47,988,299 |
) |
|
|
2,030,369 |
|
|
|
(26,646,801 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
4,362,832 |
|
|
|
1,779,672 |
|
|
|
824,435 |
|
Interest expenses |
|
- |
|
|
|
(4,383 |
) |
|
|
(728,346 |
) |
Other income |
|
1,033,622 |
|
|
|
133,477 |
|
|
|
81,733 |
|
Loss from investment |
|
(509,496 |
) |
|
|
(3,656,520 |
) |
|
|
- |
|
Exchange gain (loss) |
|
(2,161,264 |
) |
|
|
1,780,087 |
|
|
|
(288,346 |
) |
Government grants |
|
81,911 |
|
|
|
434,604 |
|
|
|
4,006,567 |
|
Other expenses |
|
(649,476 |
) |
|
|
(108,328 |
) |
|
|
(108,624 |
) |
Total other
income |
|
2,158,129 |
|
|
|
358,609 |
|
|
|
3,787,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes provision (benefit) |
|
(45,830,170 |
) |
|
|
2,388,978 |
|
|
|
(22,859,382 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes provision
(benefit) |
|
(72,933 |
) |
|
|
(378,843 |
) |
|
|
9,251,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
(45,757,237 |
) |
|
|
2,767,821 |
|
|
|
(32,110,924 |
) |
Less: net loss attributable to
non-controlling interest |
|
(1,868,995 |
) |
|
|
(1,663,120 |
) |
|
|
(1,435,504 |
) |
Net income (loss)
attributable to Ebang International Holdings Inc. |
$ |
(43,888,242 |
) |
|
$ |
4,430,941 |
|
|
$ |
(30,675,420 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(45,757,237 |
) |
|
$ |
2,767,821 |
|
|
$ |
(32,110,924 |
) |
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
(5,338,217 |
) |
|
|
953,073 |
|
|
|
1,960,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income (loss) |
|
(51,095,454 |
) |
|
|
3,720,894 |
|
|
|
(30,150,815 |
) |
Less: comprehensive loss
attributable to non-controlling interest |
|
(2,379,686 |
) |
|
|
(1,461,374 |
) |
|
|
(893,905 |
) |
Comprehensive income
(loss) attributable to Ebang International Holdings
Inc. |
$ |
(48,715,768 |
) |
|
$ |
5,182,268 |
|
|
$ |
(29,256,910 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
ordinary share attributable to Ebang International Holdings
Inc. |
|
|
|
|
|
|
|
|
|
|
|
Basic(1) |
$ |
(7.03 |
) |
|
$ |
0.75 |
|
|
$ |
(7.55 |
) |
Diluted(1) |
$ |
(7.03 |
) |
|
$ |
0.75 |
|
|
$ |
(7.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic(1) |
|
6,247,333 |
|
|
|
5,923,845 |
|
|
|
4,064,708 |
|
Diluted(1) |
|
6,247,333 |
|
|
|
5,928,858 |
|
|
|
4,064,708 |
|
(1) |
Retrospectively adjusted for the effect of the Reverse Stock Split
effected on November 20, 2022. See Note 12. |
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