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Ebang International Holdings Inc. Reports Unaudited Financial Results for the First Six Months of Fiscal Year 2022

EBANG INTERNATIONAL HOLDINGS INC.
EBANG INTERNATIONAL HOLDINGS INC.

HANGZHOU, China, Nov. 17, 2022 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a global blockchain technology company, today announced its unaudited financial results for the first six months of fiscal year 2022.

Operational and Financial Highlights for the First Six Months of Fiscal Year 2022

Total computing power sold in the first six months of 2022 was 0.32 million Thash/s, representing a period-over-period decrease of 60.00% from 0.80 million Thash/s in the same period of 2021.

Total net revenues in the first six months of 2022 were US$25.06 million, representing a 36.97% period-over-period increase from US$18.30 million in the same period of 2021.

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Gross profit in the first six months of 2022 was US$14.24 million compared to the gross profit of US$5.64 million in the same period of 2021.

Net loss in the first six months of 2022 was US$10.92 million compared to US$4.26 million in the same period of 2021.

Mr. Dong Hu, Chairman, Chief Executive Officer of the Company, commented, “The global COVID-19 pandemic and the continuous decline of price in cryptocurrency market has undeniably affected our daily operations. Facing these obstacles, we have actively expanded into new markets, including cryptocurrency exchange and cross-border payment businesses. Our Australian cryptocurrency exchange platform has also collaborated with Mastercard to become the first principal member in Australia for self-issuance of crypto-linked card and we believe expansion into these businesses will drive innovation in the crypto and payment space in Australia. When challenges and opportunities coexist, we always adhere to and continue expanding our global business in a legal and compliant manner. We firmly believe in the future development and mainstream trends of Fintech. We expect to continue to maintain our competitive advantage in the industry and continue to make progress and explore opportunities, so that we can achieve more revenue growth in the future and attain our long-term strategic development goals.”

Unaudited Financial Results for the First Six Months of Fiscal Year 2022

Total net revenues in the first six months of 2022 were US$25.06 million, representing a 36.97% period-over-period increase from US$18.30 million in the same period of 2021. The period-over-period increase in total net revenues were mainly attributed to the receipt of payment from a former customer.

Cost of revenues in the first six months of 2022 was US$10.82 million, representing a 14.55% period-over-period decrease from US$12.66 million in the same period of 2021. The period-over-period decrease in cost of revenues was mainly due to the impact of the lower inventory cost related to the utilization of the impaired inventories in our production.

Gross profit in the first six months of 2022 was US$14.24 million, compared to the gross profit of US$5.64 million in the same period of 2021.

Total operating expenses in the first six months of 2022 were US$24.59 million compared to US$10.58 million in the same period of 2021.

  • Selling expenses in the first six months of 2022 were US$1.68 million compared to US$0.59 million in the same period of 2021. The period-over-period increase in selling expenses was mainly caused by the increase of staff cost and advertising cost related to our cryptocurrency exchange business.

  • General and administrative expenses in the first six months of 2022 were US$22.90 million compared to US$9.99 million in the same period of 2021. The period-over-period increase in general and administrative expenses was mainly due to the combined impact of the increase in share-based compensation expenses and the increase of administrative cost related to our cryptocurrency exchange business.

Loss from operations in the first six months of 2022 was US$10.41 million compared to US$4.95 million in the same period of 2021.

Interest income in the first six months of 2022 was US$1.16 million compared to US$0.12 million in the same period of 2021. The period-over-period increase in interest income was mainly caused by the increase in the average cash balance from 2021 to 2022.

Other expense in the first six months of 2022 was US$0.39 million compared to US$1.15 million in the same period of 2021. The period-over-period decrease in other expense was mainly caused by the loss on fair value changes from short term investment in the six months ended June 30, 2022.

Net loss in the first six months of 2022 was US$10.92 million compared to US$4.26 million in the same period of 2021.

Net loss attributable to Ebang International Holdings Inc. in the first six months of 2022 was US$10.08 million compared to US$3.58 million in the same period of 2021.

Basic and diluted net loss per share in the first six months of 2022 were both US$0.05 compared to US$0.02 in the same period of 2021.

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/.

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. 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. 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. 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 cryptoeconomy 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 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,
2022

 

 

December 31,
2021

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

251,199,223

 

 

$

239,872,316

 

Restricted cash, current

 

 

82,590

 

 

 

171,156

 

Short-term investments

 

 

13,484,594

 

 

 

35,443,246

 

Accounts receivable, net

 

 

6,008,361

 

 

 

9,872,746

 

Advances to suppliers

 

 

1,344,265

 

 

 

1,057,096

 

Inventories, net

 

 

384,576

 

 

 

7,137,538

 

Prepayments

 

 

11,285

 

 

 

283,776

 

Other current assets, net

 

 

6,773,980

 

 

 

4,994,271

 

Total current assets

 

 

279,288,874

 

 

 

298,832,145

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

Restricted cash, non-current

 

 

812,293

 

 

 

883,130

 

Operating lease right-of-use assets

 

 

1,700,229

 

 

 

2,132,247

 

Operating lease right-of-use assets - related parties

 

 

802,939

 

 

 

1,136,775

 

Property, plant and equipment, net

 

 

35,684,820

 

 

 

33,329,610

 

Intangible assets, net

 

 

32,198,740

 

 

 

22,512,208

 

VAT recoverables

 

 

21,636,622

 

 

 

26,332,231

 

Goodwill

 

 

2,324,196

 

 

 

-

 

Other assets

 

 

1,636,155

 

 

 

705,825

 

Total non-current assets

 

 

96,795,994

 

 

 

87,032,026

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

376,084,868

 

 

$

385,864,171

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,623,033

 

 

$

3,387,836

 

Income taxes payable

 

 

9,173

 

 

 

13,272

 

Advances from customers

 

 

771,826

 

 

 

894,174

 

Accrued liabilities and other payables

 

 

11,602,918

 

 

 

8,962,716

 

Operating lease liabilities, current

 

 

756,948

 

 

 

851,936

 

Operating lease liabilities - related parties, current

 

 

570,315

 

 

 

595,424

 

Total current liabilities

 

 

16,334,213

 

 

 

14,705,358

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Operating lease liabilities, non-current

 

 

1,379,327

 

 

 

1,712,303

 

Operating lease liabilities, related parties, non-current

 

 

-

 

 

 

288,563

 

Deferred tax liabilities

 

 

1,211,215

 

 

 

178,582

 

Total non-current liabilities

 

 

2,590,542

 

 

 

2,179,448

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

18,924,755

 

 

 

16,884,806

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Class A ordinary share, HKD0.001 par value, 333,374,217 shares authorized, 140,750,554 and 139,209,554 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

18,045

 

 

 

17,848

 

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, 2022 and December 31, 2021, respectively

 

 

5,978

 

 

 

5,978

 

Additional paid-in capital

 

 

396,674,385

 

 

 

393,717,189

 

Accumulated deficit

 

 

(44,255,347

)

 

 

(34,180,280

)

Statutory reserves

 

 

11,079,649

 

 

 

11,079,649

 

Accumulated other comprehensive loss

 

 

(11,285,487

)

 

 

(6,897,005

)

Total Ebang International Holdings Inc. shareholders’ equity

 

 

352,237,223

 

 

 

363,743,379

 

Non-controlling interest

 

 

4,922,890

 

 

 

5,235,986

 

Total equity

 

 

357,160,113

 

 

 

368,979,365

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

376,084,868

 

 

$

385,864,171

 


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, 
2022

 

 

For the
six months
ended 
June 30, 
2021

 

 

 

 

 

 

 

 

Product revenue

 

$

25,059,635

 

 

$

15,310,854

 

Service revenue

 

 

-

 

 

 

2,984,707

 

Total revenues

 

 

25,059,635

 

 

 

18,295,561

 

Cost of revenues

 

 

10,816,229

 

 

 

12,657,744

 

Gross profit

 

 

14,243,406

 

 

 

5,637,817

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling expenses

 

 

1,685,425

 

 

 

594,027

 

General and administrative expenses

 

 

22,901,323

 

 

 

9,989,018

 

Total operating expenses

 

 

24,586,748

 

 

 

10,583,045

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(10,343,342

)

 

 

(4,945,228

)

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

Interest income

 

 

1,162,470

 

 

 

119,772

 

Interest expenses

 

 

-

 

 

 

(4,369

)

Other income

 

 

571,462

 

 

 

167,382

 

Exchange gain (loss)

 

 

(1,932,890

)

 

 

1,469,620

 

Government grants

 

 

2,505

 

 

 

21,678

 

Other expenses

 

 

(390,051

)

 

 

(1,154,704

)

Total other income (expenses)

 

 

(586,504

)

 

 

619,379

 

 

 

 

 

 

 

 

 

 

Loss before income taxes benefit

 

 

(10,929,846

)

 

 

(4,325,849

)

 

 

 

 

 

 

 

 

 

Income taxes benefit

 

 

10,683

 

 

 

69,964

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(10,919,163

)

 

 

(4,255,885

)

Less: net loss attributable to non-controlling interest

 

 

(844,096

)

 

 

(675,239

)

Net loss attributable to Ebang International Holdings Inc.

 

$

(10,075,067

)

 

$

(3,580,646

)

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

 

 

 

 

 

 

 

Net loss

 

$

(10,919,163

)

 

$

(4,255,885

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(3,857,482

)

 

 

(515,015

)

 

 

 

 

 

 

 

 

 

Total comprehensive loss

 

 

(14,776,645

)

 

 

(4,770,900

)

Less: comprehensive loss attributable to non-controlling interest

 

 

(313,096

)

 

 

(582,039

)

Comprehensive loss attributable to Ebang International Holdings Inc.

 

$

(14,463,549

)

 

$

(4,188,861

)

 

 

 

 

 

 

 

 

 

Net loss per ordinary share attributable to Ebang International Holdings Inc.

 

 

 

 

 

 

 

 

Basic

 

$

(0.05

)

 

$

(0.02

)

Diluted

 

$

(0.05

)

 

$

(0.02

)

 

 

 

 

 

 

 

 

 

Weighted average ordinary shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

187,291,199

 

 

 

169,460,752

 

Diluted

 

 

187,291,199

 

 

 

169,460,752