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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Ebang International Holdings Inc. Reports Unaudited Financial Results for The First Six Months ...

October 1, 2021 GMT

HANGZHOU, China, Oct. 01, 2021 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a global application-specific integrated circuit (“ASIC”) chip design company and a manufacturer of high-performance Bitcoin mining machines, today announced its unaudited financial results for the first six months of fiscal year 2021.

Operational and Financial Highlights for the First Six Months of Fiscal Year 2021

Total computing power sold in the first six months of 2021 was 0.80 million Thash/s, representing a period-over-period increase of 220.00% from 0.25 million Thash/s in the same period of 2020.

Total net revenues in the first six months of 2021 were US$18.30 million, representing a 65.69% period-over-period increase from US$11.04 million in the same period of 2020.

Gross profit in the first six months of 2021 was US$5.64 million compared to the gross loss of US$0.97 million in the same period of 2020.

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Net loss in the first six months of 2021 was US$4.26 million compared to US$6.96 million in the same period of 2020.
  
Mr. Dong Hu, Chairman and Chief Executive Officer of the Company, commented, “Over the past few years, the Company has been focusing on the research and development and sales of Bitcoin mining machines. However, this business is susceptible to the impact of macro and micro environments such as global political and regulatory attitude toward cryptocurrency in general, economic competitions, chip production capacity and supply, and Bitcoin price fluctuations. To achieve long-term stable growth, the company plans to vigorously develop financial technology (FinTech) business, while steadily carry out research and development as well as sales business of mining machines of Bitcoin and other cryptocurrencies such as Litecoin and Dogecoin. The Company plans to gradually launch software-as-a-service (SaaS) businesses on some of its platforms, aiming to provide a full set of FinTech solutions to industry players who lack technical support and security. The Company has gradually increased the initial investment in this business, including but not limited to talent recruitment, equipment purchase, software development, and customer acquisition, which business we expect to bring continuous and stable revenue to the Company. The mining farm business includes the Company’s original mining machine hosting business and the newly derived self-mining business. Up to now, the Company has completed the establishment of the business team and started the preparatory work for the construction of North American and European mining farms in June 2021. The self-mining business can well offset the negative impact of the plummeting Bitcoin price on the sales of mining machines, thereby further ensuring the Company’s long-term stable and healthy development.” 

Unaudited Financial Results for the First Six Months of Fiscal Year 2021

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Total net revenues in the first six months of 2021 were US$18.30 million, representing a 65.69% period-over-period increase from US$11.04 million in the same period of 2020. The period-over-period increase in total net revenues were mainly due to the increase of Bitcoin price in the first six months of 2021, which increase the expected returns on Bitcoin related activities such as mining, and in turn resulted in a much higher demand on our Bitcoin mining machines.

Cost of revenues in the first six months of 2021 was US$12.66 million compared to US$12.01 million in the same period of 2020. The cost of revenues remained stable mainly due to the combined impact of the increase in the Company’s sales and the lower inventory cost related to the utilization of the impaired inventories in our production.

Gross profit in the first six months of 2021 was US$5.64 million compared to the gross loss of US$0.97 million in the same period of 2020.

Total operating expenses in the first six months of 2021 were US$10.58 million compared to US$7.71 million in the same period of 2020.

  • Selling expenses in the first six months of 2021 maintain stable with the amount of US$0.59 million compared to US$0.45 million in the same period of 2020.

  • General and administrative expenses in the first six months of 2021 were US$9.99 million compared to US$7.26 million in the same period of 2020. The period-over-period increase in general and administrative expenses was mainly caused by an increase in amortization of intangible asset for the exclusive Authorization of Patent Technology (AsicBoost) in Korea.

Loss from operations in the first six months of 2021 was US$4.95 million compared to US$8.68 million in the same period of 2020.

Other income in the first six months of 2021 was US$0.17 million compared to US$0.02 million in the same period of 2020. The period-over-period increase in other income was mainly caused by the increase in investment income from short term investment in the six months ended June 30, 2021.

Government grants in the first six months of 2021 were US$0.02 million compared to US$2.54 million in the same period of 2020. The period-over-period decrease in government grants was mainly caused by the decrease of tax rewards from the Chinese government.

Other expense in the first six months of 2021 was US$1.15 million compared to US$0.02 million in the same period of 2020. The period-over-period increase in other expense was mainly caused by the loss on fair value changes from short term investment in the six months ended June 30, 2021.

Net loss in the first six months of 2021 was US$4.26 million compared to US$6.96 million in the same period of 2020.

Net loss attributable to Ebang International Holdings Inc. in the first six months of 2021 was US$3.58 million compared to US$6.21 million in the same period of 2020.

Basic and diluted net loss per shares in the first six months of 2021 were both US$0.02 compared to US$0.06 in the same period of 2020.

About Ebang International Holdings Inc.

Ebang International Holdings Inc. is a blockchain technology company with strong application-specific integrated circuit (ASIC) chip design capability. With years of industry experience and expertise in ASIC chip design, it has become a global bitcoin mining machine producer with steady access to wafer foundry capacity. With its licensed and registered entities in various jurisdictions, the Company intends to launch a professional, convenient and innovative digital asset financial service platform to expand into the upstream and the downstream of blockchain and cryptocurrency industry value chain. For more information, please visit https://ir.ebang.com.cn/.
  
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. Certain statements contained herein are “forward-looking” statements within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “commit,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “remain,” “should,” “will,” “would,” and 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 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. 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.cn

Ascent Investor Relations LLC
Ms. Tina Xiao
Tel: (917) 609-0333
Email: tina.xiao@ascent-ir.com

EBANG INTERNATIONAL HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS 
(Stated in US dollars)

   June 30,
2021
   December 31,
2020
 
  (Unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents $278,195,874  $13,669,439 
Restricted cash, current  110,463   406,857 
Investments  6,882,081   40,835,000 
Accounts receivable, net  6,996,013   7,205,113 
Notes receivable  -   765,967 
Advances to suppliers  3,114,174   221,186 
Inventories, net  5,844,991   3,845,091 
Prepayments  636,103   522,808 
Due from related party  4,648   - 
Other current assets, net  804,943   1,128,599 
Total current assets  302,589,290   68,600,060 
         
Non-current assets:        
Restricted cash, non-current  -   47,455 
Operating lease right-of-use assets  606,695   898,335 
Operating lease right-of-use assets - related parties  1,466,805   17,701 
Property, plant and equipment, net  33,414,525   29,123,243 
Intangible assets, net  22,410,188   23,077,435 
VAT recoverables  28,440,372   21,897,063 
Deferred tax assets  70,170   - 
Other assets  545,012   538,934 
Total non-current assets  86,953,767   75,600,166 
         
Total assets $389,543,057  $144,200,226 
         
LIABILITIES AND EQUITY        
Current liabilities:        
Accounts payable $2,343,819  $2,762,187 
Notes payable  2,740,621   1,087,673 
Loans due within one year, less unamortized debt issuance costs  -   765,967 
Income taxes payable  562,452   556,137 
Advances from customers  10,114,303   832,842 
Accrued liabilities and other payables  12,053,301   21,921,614 
Operating lease liabilities, current  743,368   659,807 
Operating lease liabilities - related parties, current  589,450   17,701 
Due to related party  -   5,652,833 
Total current liabilities  29,147,314   34,256,761 
         
Non-current liabilities:        
Operating lease liabilities, non-current  7,065   118,827 
Operating lease liabilities, related parties, non-current  608,107   - 
Deferred tax liabilities  -   872 
         
Total non-current liabilities  615,172   119,699 
         
Total liabilities  29,762,486   34,376,460 
         
Equity:        
Class A ordinary share, HKD0.001 par value, 333,374,217 shares authorized, 139,209,554 and 89,909,554 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively  17,848   11,411 
Class B ordinary share, HKD0.001 par value, 46,625,783 shares authorized, 46,625,783 and 46,625,783 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively  5,978   5,978 
Additional paid-in capital  393,010,189   138,288,921 
Accumulated deficit  (42,218,740)  (38,581,419)
Statutory reserves  11,106,522   11,049,847 
Accumulated other comprehensive loss  (8,256,547)  (7,648,332)
Total Ebang International Holdings Inc. shareholders’ equity  353,665,250   103,126,406 
         
Non-controlling interest  6,115,321   6,697,360 
         
Total equity  359,780,571   109,823,766 
         
Total liabilities and equity $389,543,057  $144,200,226 

  

EBANG INTERNATIONAL HOLDINGS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(Stated in US dollars)

   For the six 
months ended 
June 30, 
2021
   For the six 
months ended 
June 30, 
2020
 
       
Product revenue $15,310,854  $4,954,499 
Service revenue  2,984,707   6,087,856 
Total revenues  18,295,561   11,042,355 
Cost of revenues  12,657,744   12,009,303 
Gross profit (loss)  5,637,817   (966,948)
         
Operating expenses:        
Selling expenses  594,027   452,608 
General and administrative expenses  9,989,018   7,257,855 
Total operating expenses  10,583,045   7,710,463 
         
Loss from operations  (4,945,228)  (8,677,411)
         
Other income (expenses):        
Interest income  119,772   12,714 
Interest expenses  (4,369)  (579,486)
Other income  167,382   16,080 
Exchange gain  1,469,620   474,488 
Government grants  21,678   2,541,708 
Other expenses  (1,154,704)  (16,436)
Total other income  619,379   2,449,068 
         
Loss before income taxes benefit (provision)  (4,325,849)  (6,228,343)
         
Income taxes benefit (provision)  69,964   (735,048)
         
Net loss  (4,255,885)  (6,963,391)
Less: net income attributable to non-controlling interest  (675,239)  (751,104)
Net loss attributable to Ebang International Holdings Inc. $(3,580,646) $(6,212,287)
         
Comprehensive loss        
Net loss $(4,255,885) $(6,963,391)
Other comprehensive loss:        
Foreign currency translation adjustment  (515,015)  (1,189,594)
         
Total comprehensive loss  (4,770,900)  (8,152,985)
Less: comprehensive loss attributable to non-controlling interest  (582,039)  (876,484)
Comprehensive loss attributable to Ebang International Holdings Inc. $(4,188,861) $(7,276,501)
         
Net loss per ordinary share attributable to Ebang International Holdings Inc.        
Basic $(0.02) $(0.06)
Diluted $(0.02) $(0.06)
         
Weighted average ordinary shares outstanding        
Basic  169,460,752   111,876,848 
Diluted  169,460,752   111,876,848