Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,”
“we” or “our”), a global blockchain technology and Fintech company,
today announced its unaudited financial results for the first six
months of fiscal year 2023.
Operational and Financial Highlights for
the First Six Months of Fiscal Year 2023
Total net revenues in the
first six months of 2023 were US$4.09 million, representing an
83.69% period-over-period decrease from US$25.06 million in the
same period of 2022.
Gross profit in the first
six months of 2023 was US$0.99 million compared to the gross profit
of US$14.24 million in the same period of 2022.
Net loss in the first six
months of 2023 was US$8.38 million compared to US$10.92 million in
the same period of 2022.
Mr. Dong Hu, Chairman and Chief Executive
Officer of the Company, commented, “The first half of 2023 was a
challenging period. Industry fluctuations and macroeconomic impacts
have not yet led to a qualitative improvement in our performance,
our cryptocurrency exchange business and cross-border payment and
foreign exchange business have been developing steadily. Still, we
have seen signs of gradual stability in consumer demand and the
prospects for a sustainable economic market. We will continue to
focus on providing personalized and diversified technology
platforms and services, so that our customers can enjoy safer and
more stable, efficient, and sustainable products and services, and
we will continue to strive for customer satisfaction. Additionally,
we have improved our cost control and capital utilization.”
Mr. Hu continues, “Looking forward to the
future, we will continue to expand our business within selected
regulated markets, adhere to technological innovation as our core
driving force, develop and implement a new business strategy to
achieve consistent growth, and actively embrace various
opportunities while tackling challenges in the future. We are
confident in our long-term prospects.”
Unaudited Financial Results for the
First Six Months of Fiscal Year 2023
Total net revenues in the
first six months of 2023 were US$4.09 million, representing an
83.69% period-over-period decrease from US$25.06 million in the
same period of 2022. The period-over-period decrease in total net
revenues was due to the combined impact of: 1) a decrease in sale
of products in the first six months of 2023; and 2) the receipt of
payment from a former customer as a result of a court mediation in
the first six months of 2022.
Cost of revenues in the
first six months of 2023 was US$3.09 million, representing a 71.40%
period-over-period decrease from US$10.82 million in the same
period of 2022. The period-over-period decrease in cost of revenues
was mainly due to the combined impact of a decrease in the
Company’s sales of products, and decreased inventory write-downs
for the potentially obsolete and slow-moving inventories for the
first six months of 2023, compared to the same period in 2022.
Gross profit in the first
six months of 2023 was US$0.99 million, compared to the gross
profit of US$14.24 million in the same period of 2022.
Total operating
expenses in the first six months of 2023 were
US$13.64 million compared to US$24.59 million in the same period of
2022.
- Selling
expenses in the first six months of 2023 were US$0.75
million compared to US$1.69 million in the same period of 2022. The
period-over-period decrease in selling expenses was mainly caused
by decreased general advertising and marketing expenses due to the
adoption of precise advertising and other marketing methods related
to our Fintech business for the first six months of 2023.
- General and administrative
expenses in the first six months of 2023 were
US$12.89 million compared to US$22.90 million in the same period of
2022. The period-over-period decrease in general and administrative
expenses was mainly due to the combined impact of 1) the Company’s
optimization of its internal cost control; 2) lower bad debt
expenses and depreciation expenses; 3) lower amortization expenses
due to full impairment of intangible assets during the year of
2022.
Loss from operations in
the first six months of 2023 was US$12.64 million compared to
US$10.34 million in the same period of 2022.
Interest income in the
first six months of 2023 was US$3.22 million compared to US$1.16
million in the same period of 2022. 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 2023,
compared to the same period in 2022.
Other income in the first
six months of 2023 was US$1.04 million compared to US$0.57 million
in the same period of 2022. The period-over-period increase 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.
Other expense in the first
six months of 2023 was US$0.04 million compared to US$0.39 million
in the same period of 2022.
Net loss in the first six
months of 2023 was US$8.38 million compared to US$10.92 million in
the same period of 2022.
Net loss attributable to Ebang
International Holdings Inc. in the first six months
of 2023 was US$7.82 million compared to US$10.08 million in the
same period of 2022.
Basic and diluted net loss per
share in the first six months of 2023 were both
US$1.25 compared to US$1.61 in the same period of 2022.
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 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 30,2023 |
|
December 31,2022 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
248,861,659 |
|
$ |
251,294,952 |
|
Restricted cash, current |
|
39,076 |
|
|
29,039 |
|
Short-term investments |
|
869,805 |
|
|
5,835,377 |
|
Accounts receivable, net |
|
1,818,940 |
|
|
3,334,727 |
|
Advances to suppliers |
|
1,095,080 |
|
|
1,178,168 |
|
Inventories, net |
|
548,233 |
|
|
440,064 |
|
Prepayments |
|
52,703 |
|
|
281,611 |
|
Other current assets, net |
|
3,065,188 |
|
|
6,711,422 |
|
Total current
assets |
|
256,350,684 |
|
|
269,105,360 |
|
|
|
|
|
|
|
|
Non-current
assets: |
|
|
|
|
|
|
Property, plant and equipment, net |
|
33,892,642 |
|
|
36,549,278 |
|
Intangible assets, net |
|
6,176,539 |
|
|
6,890,738 |
|
Operating lease right-of-use assets |
|
4,569,216 |
|
|
5,343,608 |
|
Operating lease right-of-use assets - related parties |
|
741,695 |
|
|
519,140 |
|
Restricted cash, non-current |
|
973,034 |
|
|
903,125 |
|
Goodwill |
|
2,239,453 |
|
|
2,299,628 |
|
VAT recoverables |
|
20,085,172 |
|
|
21,132,898 |
|
Other assets |
|
904,382 |
|
|
1,421,309 |
|
Total non-current
assets |
|
69,582,133 |
|
|
75,059,724 |
|
|
|
|
|
|
|
|
Total
assets |
$ |
325,932,817 |
|
$ |
344,165,084 |
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
629,685 |
|
$ |
1,456,577 |
|
Accrued liabilities and other payables |
|
7,041,128 |
|
|
11,519,091 |
|
Operating lease liabilities, current |
|
946,906 |
|
|
1,217,604 |
|
Operating lease liabilities - related parties, current |
|
519,288 |
|
|
283,567 |
|
Income taxes payable |
|
75,185 |
|
|
- |
|
Advances from customers |
|
2,749 |
|
|
1,010,852 |
|
Total current
liabilities |
|
9,214,941 |
|
|
15,487,691 |
|
|
|
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
|
|
Deferred tax liabilities |
|
1,043,942 |
|
|
1,133,539 |
|
Operating lease liabilities, non-current |
|
4,242,577 |
|
|
5,755,973 |
|
Total non-current
liabilities |
|
5,286,519 |
|
|
6,889,512 |
|
|
|
|
|
|
|
|
Total
liabilities |
|
14,501,460 |
|
|
22,377,203 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
Class A ordinary share, HKD0.03 par value, 11,112,474 shares
authorized, 4,726,424 and 4,700,852 shares issued and outstanding
as of June 30, 2023 and December 31, 2022, respectively |
|
18,178 |
|
|
18,080 |
|
Class B ordinary share, HKD0.03 par value, 1,554,192 shares
authorized, issued and outstanding as of June 30, 2023 and December
31, 2022, respectively |
|
5,978 |
|
|
5,978 |
|
Additional paid-in capital |
|
398,505,590 |
|
|
397,620,927 |
|
Statutory reserves |
|
11,079,649 |
|
|
11,079,649 |
|
Accumulated deficit |
|
(85,886,519 |
) |
|
(78,068,522 |
) |
Accumulated other comprehensive loss |
|
(14,373,681 |
) |
|
(11,724,531 |
) |
Total Ebang
International Holdings Inc. shareholders’ equity |
|
309,349,195 |
|
|
318,931,581 |
|
Non-controlling interest |
|
2,082,162 |
|
|
2,856,300 |
|
Total
equity |
|
311,431,357 |
|
|
321,787,881 |
|
|
|
|
|
|
|
|
Total liabilities and
equity |
$ |
325,932,817 |
|
$ |
344,165,084 |
|
EBANG INTERNATIONAL HOLDINGS
INC.INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONSAND COMPREHENSIVE
LOSS(Unaudited)(Stated in US
dollars)
|
For the
six monthsended June
30, 2023 |
|
For thesix
monthsended June
30, 2022 |
|
|
|
|
|
|
Product revenue |
$ |
1,146,384 |
|
$ |
25,059,635 |
|
Service revenue |
|
2,939,958 |
|
|
- |
|
Total
revenues |
|
4,086,342 |
|
|
25,059,635 |
|
Cost of revenues |
|
3,093,730 |
|
|
10,816,229 |
|
Gross
profit |
|
992,612 |
|
|
14,243,406 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Selling expenses |
|
745,381 |
|
|
1,685,425 |
|
General and administrative
expenses |
|
12,891,709 |
|
|
22,901,323 |
|
Total operating
expenses |
|
13,637,090 |
|
|
24,586,748 |
|
|
|
|
|
|
|
|
Gain from disposal of
subsidiaries |
|
(7,524 |
) |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(12,636,954 |
) |
|
(10,343,342 |
) |
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
Interest income |
|
3,221,667 |
|
|
1,162,470 |
|
Other income |
|
1,042,669 |
|
|
571,462 |
|
Gain from investment |
|
803,605 |
|
|
- |
|
Exchange gain (loss) |
|
(787,895 |
) |
|
(1,932,890 |
) |
Government grants |
|
12,800 |
|
|
2,505 |
|
Other expenses |
|
(43,518 |
) |
|
(390,051 |
) |
Total other income
(expenses) |
|
4,249,328 |
|
|
(586,504 |
) |
|
|
|
|
|
|
|
Loss before income
taxes benefit |
|
(8,387,626 |
) |
|
(10,929,846 |
) |
|
|
|
|
|
|
|
Income taxes benefit |
|
3,349 |
|
|
10,683 |
|
|
|
|
|
|
|
|
Net loss |
|
(8,384,277 |
) |
|
(10,919,163 |
) |
Less: net loss attributable to
non-controlling interest |
|
(566,280 |
) |
|
(844,096 |
) |
Net loss attributable
to Ebang International Holdings Inc. |
$ |
(7,817,997 |
) |
$ |
(10,075,067 |
) |
|
|
|
|
|
|
|
Comprehensive
loss |
|
|
|
|
|
|
Net loss |
$ |
(8,384,277 |
) |
$ |
(10,919,163 |
) |
Other comprehensive
loss: |
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
(2,857,279 |
) |
|
(3,857,482 |
) |
|
|
|
|
|
|
|
Total comprehensive
loss |
|
(11,241,556 |
) |
|
(14,776,645 |
) |
Less: comprehensive loss
attributable to non-controlling interest |
|
(774,138 |
) |
|
(313,096 |
) |
Comprehensive loss
attributable to Ebang International Holdings Inc. |
$ |
(10,467,418 |
) |
$ |
(14,463,549 |
) |
|
|
|
|
|
|
|
Net loss per ordinary
share attributable to Ebang International Holdings
Inc. |
|
|
|
|
|
|
Basic(1) |
$ |
(1.25 |
) |
$ |
(1.61 |
) |
Diluted(1) |
$ |
(1.25 |
) |
$ |
(1.61 |
) |
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding |
|
|
|
|
|
|
Basic(1) |
|
6,269,529 |
|
|
6,243,040 |
|
Diluted(1) |
|
6,269,529 |
|
|
6,243,040 |
|
|
(1) Retrospectively adjusted for the effect of
the Reverse Stock Split effected on November 20, 2022.
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