Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,”
“we” or “our”), today announced its unaudited financial results for
the first six months of fiscal year 2024.
Operational and Financial Highlights for
the First Six Months of Fiscal Year 2024
Total net revenues in the
first six months of 2024 were US$2.11 million, representing a
37.41% period-over-period decrease from US$3.38 million in the same
period of 2023.
Gross profit in the first
six months of 2024 was US$0.08 million compared to the gross profit
of US$0.28 million in the same period of 2023.
Net loss in the first six
months of 2024 was US$6.65 million compared to US$8.38 million in
the same period of 2023.
Dong Hu, Chairman and Chief Executive Officer of
the Company, commented, “Our financial results for the first half
of 2024 reflect our continuing efforts to transition our business
while we expand our products and services into industries that we
believe will be supported by our existing core technologies,
R&D expertise and manufacturing capacity. We are pleased with
the progress that we have been able to make, particularly as we
have faced and will continue to face challenges from macroeconomic
conditions, policy changes, market fluctuations, evolving or
shifting trends, and competition within the industry, that
contributed to both highlights and downturns in our financial
performance. We have been reflecting on our strengths and core
competencies and experience in design, R&D and manufacturing
and determined that there was an unmet need in the renewable energy
space for us to exploit, where we aim to integrate cutting-edge
technology into this market, with a particular focus on advanced
solar cell manufacturing.”
Continued Mr. Hu: “We believe that this year
will mark a significant turning point for us where we build on past
achievements and monetize our prior efforts. The transition will
begin paying off now that we have commenced our strategic entry
into the renewable energy sector. Our past experiences have
equipped us with invaluable expertise in R&D and manufacturing,
forming the core of our competitive advantage. These advanced
professional skills and substantial technological reserves have
become our foundation for mutual learning and collaboration across
various industries. We are resolute in our belief that
opportunities and challenges coexist and are committed to actively
expanding new business areas and commercial models while
maintaining strict control over operational costs to ensure the
Company’s sustainable and stable development. We believe that
through technological innovation, we can stand out and meet the
ever-growing and evolving market demands for this new industry
sector we’re pursuing, i.e. renewable energy production, and
contribute to the betterment of our planet and future.”
Unaudited Financial Results for the
First Six Months of Fiscal Year 2024
Total net revenues in the
first six months of 2024 were US$2.11 million, representing a
37.41% period-over-period decrease from US$3.38 million in the same
period of 2023. The period-over-period decrease in total net
revenues was due to changes in the market condition in the first
six months of 2024, which resulted in a decrease in service revenue
and product revenue in the first six months of 2024 as compared to
the same period of 2023.
Cost of revenues in the
first six months of 2024 was US$2.03 million, representing a 34.32%
period-over-period decrease from US$3.09 million in the same period
of 2023. The period-over-period decrease in cost of revenues was
mainly due to the impact of a decrease in impairment cost in
relation to products for the first six months of 2024, compared to
the same period in 2023.
Gross profit in the first
six months of 2024 was US$0.08 million, compared to the gross
profit of US$0.28 million in the same period of 2023.
Total operating
expenses in the first six months of 2024 were
US$12.50 million compared to US$13.64 million in the same period of
2023.
- Selling
expenses in the first six months of 2024 were US$0.66
million compared to US$0.75 million in the same period of 2023. The
period-over-period decrease in selling expenses was mainly caused
by decreased general advertising and marketing expenses related to
our Fintech business for the first six months of 2024.
- General and administrative
expenses in the first six months of 2024 were
US$11.84 million compared to US$12.89 million in the same period of
2023. The period-over-period decrease in general and administrative
expenses was mainly due to our optimization and streamlining of
business operations, including resource allocation, cost, and
expense control.
Loss from operations in
the first six months of 2024 was US$12.42 million compared to
US$13.35 million in the same period of 2023.
Interest income in the
first six months of 2024 was US$6.04 million compared to US$3.22
million in the same period of 2023. The period-over-period increase
in interest income was mainly caused by an increase in interest
rate for US dollar deposits and the Company had more fixed-term
deposit with large principals for the first six months of 2024,
compared to the same period in 2023.
Other income in the first
six months of 2024 was US$0.33 million compared to US$1.04 million
in the same period of 2023. The period-over-period decrease in
other income was mainly due to the Company taking possession of
customer deposits collected from previous years as a result of
defaults by customers under their respective contracts with the
Company for the first six months of 2023, while no such event
occurred in the first six months of 2024.
Other expense in the first
six months of 2024 was US$0.06 million compared to US$0.04 million
in the same period of 2023.
Net loss in the first six
months of 2024 was US$6.65 million compared to US$8.38 million in
the same period of 2023.
Net loss attributable to Ebang
International Holdings Inc. in the first six months
of 2024 was US$6.23 million compared to US$7.82 million in the same
period of 2023.
Basic and diluted net loss per
share in the first six months of 2024 were both
US$0.99 compared to US$1.25 in the same period of 2023.
About Ebang International Holdings
Inc.
Ebang International Holdings Inc. (Nasdaq: EBON)
is a global blockchain technology and Fintech company with strong
application-specific integrated circuit (ASIC) chip design and
manufacturing capability. Leveraging its deep understanding of the
Fintech industry and compliance with laws and regulations across
various jurisdictions, the Company has launched professional,
convenient and innovative Fintech service platforms. The Company
strives to diversify its business and products to increase
shareholder value and has begun to expand into the renewable energy
industry. 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, our ability to successfully develop in the new
industry into which we expand, 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 Contact
For 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.CONDENSED
CONSOLIDATED BALANCE
SHEETS (Unaudited)(Stated in
US dollars) |
|
|
|
|
|
June 30,2024 |
|
|
December 31,2023 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
229,517,387 |
|
|
$ |
241,634,262 |
|
Restricted cash, current |
|
|
390,067 |
|
|
|
88,614 |
|
Short-term investments |
|
|
5,816,326 |
|
|
|
496,122 |
|
Accounts receivable, net |
|
|
817,150 |
|
|
|
946,514 |
|
Advances to suppliers (1) |
|
|
335,926 |
|
|
|
198,617 |
|
Inventories, net |
|
|
65,201 |
|
|
|
198,846 |
|
Prepayments |
|
|
48,643 |
|
|
|
304,453 |
|
Due from related parties |
|
|
580,319 |
|
|
|
- |
|
Other current assets, net |
|
|
6,012,936 |
|
|
|
5,691,679 |
|
Total current
assets |
|
|
243,583,955 |
|
|
|
249,559,107 |
|
|
|
|
|
|
|
|
|
|
Non-current
assets: |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
31,181,673 |
|
|
|
33,151,061 |
|
Intangible assets, net |
|
|
2,172,852 |
|
|
|
2,329,777 |
|
Operating lease right-of-use assets |
|
|
5,169,194 |
|
|
|
6,119,535 |
|
Operating lease right-of-use assets - related parties |
|
|
16,934 |
|
|
|
31,197 |
|
Restricted cash, non-current |
|
|
879,338 |
|
|
|
1,197,286 |
|
VAT recoverables |
|
|
3,963,629 |
|
|
|
4,061,079 |
|
Other assets (1) |
|
|
1,783,969 |
|
|
|
1,790,606 |
|
Total non-current
assets |
|
|
45,167,589 |
|
|
|
48,680,541 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
288,751,544 |
|
|
$ |
298,239,648 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
150,966 |
|
|
$ |
292,570 |
|
Accrued liabilities and other payables |
|
|
8,887,387 |
|
|
|
9,804,848 |
|
Operating lease liabilities, current |
|
|
1,753,734 |
|
|
|
1,764,259 |
|
Operating lease liabilities - related parties, current |
|
|
16,160 |
|
|
|
28,849 |
|
Advances from customers |
|
|
56,587 |
|
|
|
69,361 |
|
Total current
liabilities |
|
|
10,864,834 |
|
|
|
11,959,887 |
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
|
|
|
|
Deferred tax liabilities |
|
|
53,944 |
|
|
|
74,225 |
|
Operating lease liabilities, non-current |
|
|
3,907,017 |
|
|
|
4,880,845 |
|
Operating lease liabilities – related parties, non-current |
|
|
774 |
|
|
|
2,347 |
|
Total non-current
liabilities |
|
|
3,961,735 |
|
|
|
4,957,417 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
14,826,569 |
|
|
|
16,917,304 |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Class A ordinary share, HKD0.03 par value, 11,112,474 shares
authorized, 4,989,746 shares issued, and 4,726,424 shares
outstanding as of June 30, 2024 and December 31, 2023 |
|
|
18,178 |
|
|
|
18,178 |
|
Class B ordinary share, HKD0.03 par value, 1,554,192 shares
authorized, issued and outstanding as of June 30, 2024 and December
31, 2023 |
|
|
5,978 |
|
|
|
5,978 |
|
Additional paid-in capital |
|
|
397,408,663 |
|
|
|
397,467,795 |
|
Statutory reserves |
|
|
11,079,649 |
|
|
|
11,079,649 |
|
Accumulated deficit |
|
|
(121,069,174 |
) |
|
|
(114,840,665 |
) |
Accumulated other comprehensive loss |
|
|
(14,493,243 |
) |
|
|
(13,887,088 |
) |
Total Ebang
International Holdings Inc. shareholders’ equity |
|
|
272,950,051 |
|
|
|
279,843,847 |
|
Non-controlling interest |
|
|
974,924 |
|
|
|
1,478,497 |
|
Total
equity |
|
|
273,924,975 |
|
|
|
281,322,344 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity |
|
$ |
288,751,544 |
|
|
$ |
298,239,648 |
|
(1 |
) |
Certain prior year amounts have been reclassified to conform to the
current period’s presentation. These reclassifications had no
impact on net earnings and financial position. |
|
|
EBANG INTERNATIONAL HOLDINGS INC.INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSAND
COMPREHENSIVE
LOSS(Unaudited)(Stated in US
dollars) |
|
|
|
|
|
For the
six monthsended June
30,2024 |
|
|
For thesix
monthsendedJune
30,2023 |
|
|
|
|
|
|
|
|
Product revenue |
|
$ |
359,498 |
|
|
$ |
1,146,384 |
|
Service revenue(1) |
|
|
1,754,376 |
|
|
|
2,231,023 |
|
Total revenues |
|
|
2,113,874 |
|
|
|
3,377,407 |
|
Cost of revenues |
|
|
2,032,038 |
|
|
|
3,093,730 |
|
Gross profit |
|
|
81,836 |
|
|
|
283,677 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling expenses |
|
|
657,507 |
|
|
|
745,381 |
|
General and administrative expenses |
|
|
11,841,322 |
|
|
|
12,891,709 |
|
Total operating expenses |
|
|
12,498,829 |
|
|
|
13,637,090 |
|
|
|
|
|
|
|
|
|
|
Gain from disposal of subsidiaries |
|
|
- |
|
|
|
(7,524 |
) |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(12,416,993 |
) |
|
|
(13,345,889 |
) |
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
Interest income |
|
|
6,035,650 |
|
|
|
3,221,667 |
|
Other income |
|
|
333,151 |
|
|
|
1,042,669 |
|
Gain from investment |
|
|
3,104 |
|
|
|
803,605 |
|
Net gain (loss) on disposal of cryptocurrencies(1) |
|
|
(64,344 |
) |
|
|
708,935 |
|
Exchange loss |
|
|
(520,020 |
) |
|
|
(787,895 |
) |
Government grants |
|
|
27,854 |
|
|
|
12,800 |
|
Other expenses |
|
|
(61,744 |
) |
|
|
(43,518 |
) |
Total other income |
|
|
5,753,651 |
|
|
|
4,958,263 |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes benefit |
|
|
(6,663,342 |
) |
|
|
(8,387,626 |
) |
|
|
|
|
|
|
|
|
|
Income taxes benefit |
|
|
17,928 |
|
|
|
3,349 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(6,645,414 |
) |
|
|
(8,384,277 |
) |
Less: net loss attributable to non-controlling interest |
|
|
(416,905 |
) |
|
|
(566,280 |
) |
Net loss attributable to Ebang International Holdings
Inc. |
|
$ |
(6,228,509 |
) |
|
$ |
(7,817,997 |
) |
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(6,645,414 |
) |
|
$ |
(8,384,277 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
(692,823 |
) |
|
|
(2,857,279 |
) |
|
|
|
|
|
|
|
|
|
Total comprehensive loss |
|
|
(7,338,237 |
) |
|
|
(11,241,556 |
) |
Less: comprehensive loss attributable to
non-controlling interest |
|
|
(503,573 |
) |
|
|
(774,138 |
) |
Comprehensive loss attributable to Ebang International
Holdings Inc. |
|
$ |
(6,834,664 |
) |
|
$ |
(10,467,418 |
) |
|
|
|
|
|
|
|
|
|
Net loss per ordinary share attributable to Ebang
International Holdings Inc. |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.99 |
) |
|
$ |
(1.25 |
) |
Diluted |
|
$ |
(0.99 |
) |
|
$ |
(1.25 |
) |
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
6,280,616 |
|
|
|
6,269,529 |
|
Dilute |
|
|
6,280,616 |
|
|
|
6,269,529 |
|
(1 |
) |
Certain prior year amounts have been reclassified to conform to the
current period’s presentation. These reclassifications had no
impact on net earnings and financial position. |
Ebang (NASDAQ:EBON)
Historical Stock Chart
From Sep 2024 to Oct 2024
Ebang (NASDAQ:EBON)
Historical Stock Chart
From Oct 2023 to Oct 2024