Ebang International Holdings Inc. Reports Unaudited Financial Results for The First Six Months of Fiscal Year 2020

Nachrichtenquelle: globenewswire
25.09.2020, 22:15  |  110   |   |   

HANGZHOU, China, Sept. 25, 2020 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a leading application-specific integrated circuit (“ASIC”) chip design company and a leading manufacturer of high-performance Bitcoin mining machines, today announced its unaudited financial results for the first six months of fiscal year 2020.

Operational and Financial Highlights for the First Six Months of Fiscal Year 2020

Total computing power sold in the first six months of 2020 was 0.25 million Thash/s, representing a year-over-year decrease of 86.02% from 1.82 million Thash/s in the same period of 2019.

Total net revenues in the first six months of 2020 were US$11.04 million, representing a 50.60% year-over-year decrease from US$22.35 million in the same period of 2019.

Gross loss in the first six months of 2020 was US$0.97 million, representing a 94.59% year-over-year decrease from US$17.87 million in the same period of 2019.

Net loss in the first six months of 2020 was US$6.96 million compared to US$19.07 million in the same period of 2019.

Mr. Dong Hu, Chairman and Chief Executive Officer of the Company, commented, “The outbreak of the COVID-19 has significantly affected business and manufacturing activities worldwide. Measures to contain COVID-19, such as travel restrictions, mandatory quarantines and suspension of business activities have caused severe disruptions and uncertainties to our business operations and adversely affected our results of operations and financial condition. Our chip suppliers have reduced their production capacity due to the impact of the COVID-19, resulting in our shortage of raw materials during the first six months of 2020. Faced with the turbulent social and industrial environment, we have taken timely and proactive measures to ensure the resilience of our business operations and allow us to deliver solid performance after the market condition resumes normal. In light of this, our management has been actively optimizing our revenue structure based on the productivity ratio and strategically exploring expansion into blockchain-enabled financial services.”

Mr. Hu continued, “With the preparatory work we have initiated in Singapore and Canada, we are at an initial preparatory stage of executing our plan to launch blockchain-enabled financial business by establishing cryptocurrency exchange(s) and online brokerage(s) and by combining the blockchain-enabled financial businesses with the traditional ones to capture the entire value chain of the blockchain industry. Marching into these new fields, we are staying true to our mission in strengthening the technological innovation in our products and services to ensure their competitiveness in the market.”

Unaudited Financial Results for the First Six Months of Fiscal Year 2020

Total net revenues in the first six months of 2020 were US$11.04 million, representing a 50.60% year-over-year decrease from US$22.35 million in the same period of 2019. The year-over-year decrease in total net revenues were mainly due to the combined impact of COVID-19 and Bitcoin halving event, which significantly affect the expected returns on Bitcoin related activities such as mining, and in turn resulted in a much lower demand and average selling price of our Bitcoin mining machines.

Cost of revenues in the first six months of 2020 was US$12.01 million compared to US$40.21 million in the same period of 2019. The year-over-year decrease in cost of revenues were in line with the changes in the Company’s sales and the decrease in inventory write-down.

Gross loss in the first six months of 2020 was US$0.97 million, representing a 94.59% year-over-year decrease from US$17.87 million in the same period of 2019.

Total operating expenses in the first six months of 2020 were US$7.71 million compared to US$9.60 million in the same period of 2019.

  • Selling expenses in the first six months of 2020 were US$0.45 million compared to US$0.49 in the same period of 2019. The year-over-year decrease in selling expenses was mainly caused by reduced salary and bonus expenses relating to selling activities.

  • General and administrative expenses in the first six months of 2020 were US$7.26 million compared to US$9.10 million in the same period of 2019. The year-over-year decrease in general and administrative expenses was mainly caused by a decrease in research and development expenses due to decreased purchase in materials used for research and development purposes in the six months ended June 30, 2020 compared to the same period of 2019.

Loss from operations in the first six months of 2020 was US$8.68 million compared to US$27.47 million in the same period of 2019.

Other income in the first six months of 2020 was US$0.02 million compared to US$0.03 million in the same period of 2019. The year-over-year decrease in other income was mainly caused by the decrease in investment income from wealth management products purchased from the banks in the six months ended June 30, 2020.

Government grants in the first six months of 2020 were US$2.54 million compared to US$6.18 million in the same period of 2019. The year-over-year decrease in government grants was mainly caused by the decrease of tax rewards from government.

Net loss in the first six months of 2020 was US$6.96 million compared to US$19.07 million in the same period of 2019.

Net loss attributable to Ebang International Holdings Inc. in the first six months of 2020 was US$6.21 million compared to US$18.11 million in the same period of 2019.

Basic and diluted net loss per shares in the first six months of 2020 were both US$0.06 compared to US$0.16 in the same period of 2019.

About Ebang International Holdings Inc.

Ebang International Holdings Inc. is a leading application-specific integrated circuit ASIC chip design company and a leading manufacturer of high-performance Bitcoin mining machines. The Company has strong ASIC chip design capability underpinned by nearly a decade of industry experience and expertise in the telecommunications business. The Company is one of the few fabless integrated circuit design companies with the advanced technology to independently design ASIC chips, established access to third-party wafer foundry capacity and a proven in-house capability to produce blockchain products*. The Company was also a leading Bitcoin mining machine producer in the global market in terms of computing power sold in 2019*. For more information, please visit https://ir.ebang.com.cn/.

  * According to an industry report prepared by Frost & Sullivan in 2019

Safe Harbor Statement

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. 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. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. 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,
2020
    December 31,
2019
 
    (Unaudited)        
ASSETS            
Current assets:            
Cash and cash equivalents   $ 1,089,933     $ 3,464,262  
Restricted cash, current     824,291       2,270,588  
Accounts receivable, net     7,546,319       8,128,178  
Bank acceptance notes from customers     707,394       -  
Advances to suppliers     1,191,368       1,062,049  
Inventories, net     8,822,464       13,088,542  
VAT recoverables     19,859,583       21,954,169  
Prepayments     8,493,421       13,272,775  
Other current assets, net     219,270       224,452  
Total current assets     48,754,043       63,465,015  
                 
Non-current assets:                
Property, plant and equipment, net     20,904,153       13,224,761  
Intangible assets, net     3,418,247       3,784,153  
Operating lease right-of-use assets     1,125,288       1,280,076  
Operating lease right-of-use assets - related party     23,016       37,266  
Restricted cash, non-current     21,182       43,317  
Other assets     830,338       776,458  
Total non-current assets     26,322,224       19,146,031  
                 
Total assets   $ 75,076,267     $ 82,611,046  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   $ 7,173,801     $ 11,832,003  
Bank acceptance notes to vendors     1,431,765       -  
Accrued liabilities and other payables     14,346,108       13,739,041  
Loans due within one year, less unamortized debt issuance costs     -       4,864,697  
Operating lease liabilities, current     687,107       793,521  
Operating lease liabilities – related party, current     32,732       37,266  
Income taxes payable     841,725       521,648  
Due to related parties     6,908,102       6,242,824  
Advances from customers     1,662,352       1,015,675  
Total current liabilities     33,083,692       39,046,675  
                 
Non-current liabilities:                
Long-term loans – related party     24,113,700       17,632,000  
Operating lease liabilities, non-current     461,236       361,747  
                 
Total non-current liabilities     24,574,936       17,993,747  
                 
Total liabilities     57,658,628       57,040,422  
                 
Shareholders’ equity:                
Common share, HKD0.001 par value, 380,000,000 shares authorized, 111,771,000 shares issued and outstanding as of December 31, 2019     -       14,330  
Class A common share, HKD0.001 par value, 333,374,217 shares authorized, 84,409,554 shares issued and outstanding as of June 30, 2020     10,822       -  
Class B common share, HKD0.001 par value, 46,625,783 shares authorized, 46,625,783 shares issued and outstanding as of June 30, 2020     5,978       -  
Additional paid-in capital     115,570,313       23,888,023  
Subscription receivable     (91,684,760 )     -  
Statutory reserves     11,483,844       11,049,847  
Accumulated deficit     (14,552,283 )     (7,905,999 )
Accumulated other comprehensive loss     (10,131,056 )     (9,066,842 )
Total Ebang International Holdings Inc. shareholder’s equity     10,702,858       17,979,359  
                 
Non-controlling interest     6,714,781       7,591,265  
                 
Total shareholders’ equity     17,417,639       25,570,624  
                 
Total liabilities and shareholders’ equity   $ 75,076,267     $ 82,611,046  
                 


 

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,
2020
    For the six
months ended
June 30,
2019
 
             
Product revenue   $ 4,954,499     $ 15,111,199  
Service revenue     6,087,856       7,240,536  
Total revenues     11,042,355       22,351,735  
Cost of revenues     12,009,303       40,219,588  
Gross loss     (966,948 )     (17,867,853 )
                 
Operating expenses:                
Selling expenses     452,608       494,792  
General and administrative expenses     7,257,855       9,102,696  
Total operating expenses     7,710,463       9,597,488  
                 
Loss from operations     (8,677,411 )     (27,465,341 )
                 
Other income (expenses):                
Interest income     12,714       32,111  
Interest expenses     (579,486 )     (1,315,770 )
Other income     16,080       29,240  
Exchange gain     474,488       3,986,019  
Government grants     2,541,708       6,184,035  
VAT refund     -       9,306  
Other expenses     (16,436 )     (101,999 )
Total other income     2,449,068       8,822,942  
                 
Loss before income taxes provision     (6,228,343 )     (18,642,399 )
                 
Income taxes provision     735,048       428,596  
                 
Net loss     (6,963,391 )     (19,070,995 )
Less: net income attributable to non-controlling interest     (751,104 )     (959,154 )
Net loss attributable to Ebang International Holdings Inc.   $ (6,212,287 )   $ (18,111,841 )
                 
Comprehensive loss                
Net loss   $ (6,963,391 )   $ (19,070,995 )
Other comprehensive loss:                
Foreign currency translation adjustment     (1,189,594 )     536,529  
                 
Total comprehensive loss     (8,152,985 )     (18,534,466 )
Less: comprehensive loss attributable to non-controlling interest     (125,380 )     -  
Comprehensive loss attributable to Ebang International Holdings Inc.   $ (7,276,501 )   $ (17,575,312 )
                 
Net loss per common share attributable to Ebang International Holdings Inc.                
Basic   $ (0.06 )   $ (0.16 )
Diluted   $ (0.06 )   $ (0.16 )
                 
Weighted average common shares outstanding                
Basic     111,876,848       111,771,000  
Diluted     111,876,848       111,771,000  
                 

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