SAI.TECH Global Corporation (“SAI.TECH” or the “Company”, NASDAQ:
SAI, SAITW), a global energy-saving bitcoin mining operator
and a clean-tech company that integrates the bitcoin mining,
heating, and power industries, today reported unaudited financial
results for the six months ended June 30, 2022.
Financial Highlights for the Six Months
Ended June 30, 2022
- Total revenues for the six months
ended June 30, 2022, were US$ 5.4 million, having decreased 33%
compared to the six months ended June 30, 2021.
- Gross profits for the six months
ended June 30, 2022, was US $0.6 million, having decreased 47%
compared to the six months ended June 30, 2021.
- Net losses for the six months ended
June 30, 2022, was US$2.8 million compared to net losses of US$0.2
million for the six months ended June 30, 2021.
Mr. Arthur Lee, Chairman and Chief Executive
Officer of the Company, stated that, “The negative impact caused by
tightened regulation on crypto mining businesses and the vibration
in cryptocurrency markets on the Company’s business resulted in the
downward trend on the Company’s half-year financial result.”
Recent Developments
Despite the deterioration of global bitcoin
market and the fall of bitcoin price, we believe that minimizing
total mining costs is key to future success and have continued our
research and development towards innovative liquid cooling
technologies, to expand our capabilities and advantages as an
energy-saving clean bitcoin mining operator. We have introduced two
new liquid cooling bitcoin mining infrastructure products in
September 2022 and received UL listing certification for US and
Canada for our current product. We also updated our SAIHUB App to
support the rapidly growing Bitcoin Lighting Network. We hosted and
streamed the first Bitcoin Heat Day in August and sponsored the
2022 Cryptocurrency Research Conference in September 2022.
Launch of New Products
- With our continuing efforts on
product research and development, we added two new infrastructure
products – TANKBOX and RACKBOX, to our current SAIHUB BOX product
line in September 2022.
- TANKBOX is our new immersion
cooling outdoor container product, which is compatible with all
air-cooled mining machines on the market. Equipped with heat
recovery system, TANKBOX can accommodate 72 to 144 mining machines
in outdoor environments and provide hot water of up to 50 degrees
Celsius. TANKBOX is expected to be officially launched to market by
end of 2022.
- RACKBOX is our new outdoor
container product, which can accommodate 90 units of Whatsminer’s
latest liquid-cooling miners. Equipped with heat recovery system,
RACKBOX is capable of recovering waste heat and providing hot water
of up to 60 degrees Celsius. RACKBOX is expected to be launched in
the first quarter of 2023.
Update of SAIHU App
- We updated and launched the SAIHUB App 1.1, which supports
Bitcoin Lighting Network.
UL Listing Certification
- We have received the formal UL (Underwriters Laboratories)
Listing certification for US and Canada under industrial control
panels section for SAI.TECH's core product SAIHUB CAB 025M.
Presence at Online and In-Person Conferences
- We hosted the first ‘Bitcoin Heat
Day’ offline gathering event in New York City on August 9,
2022.
- We sponsored and presented on the
2022 Cryptocurrency Research Conference (CRC), held in Durham, the
United Kingdom, from September 22 to 23, 2022.
Financial Results for the Six Months Ended June 30,
2022
Revenues
Sales of Products. Sales
of products represented the sales of high-performance digital asset
mining machines to end customers. The revenue from sales of
products was $3.7 million and $6.9 million for the six
months ended June 30, 2022 and 2021, respectively, having
decreased by $3.2 million, or 47%. The decrease was mainly
associated with bitcoin price fall in the first half of 2022, which
led to a shrink in bitcoin miners’ trading business.
Hosting Service. Hosting
services includes all services related to hosting (including
keeping and running the mining machines) and daily maintenance of
servers to customers. Our hosting revenue for the six months ended
June 30, 2022, and June 30, 2021, were derived from our hosting
operations in Kazakhstan. The revenues were $1.0 million and $1.1
million, respectively, for the six months ended June 20, 2022 and
2021.
Mining Pool. Mining pool income
includes revenues from the Company’s self-owned sai.plus mining
pool, representing mining rewards from sai.plus mining pool. The
Company allocates mining rewards to each pool participant, mainly
the hosting clients, net of the pool operator fees based on the
sharing mechanism predetermined and records as cost of mining pool
revenue. Our mining pool revenues were $0.6 million and nil,
respectively, for the six months ended June 30, 2022, and June 30,
2021.
Mining Revenue. Mining revenues
represent mining rewards generated from the Company’s self-owned
mining machines. The mining revenues are mainly derived from our
operations in Mexico beginning in 2022.Our mining revenue was $0.03
and nil, respectively for the six months ended June 30, 2022, and
June 30, 2021.
Cost of Revenues
Cost of revenues primarily included the cost for
the purchase of high-performance digital asset mining machines,
costs incurred for our self-mining activities, and the direct costs
incurred for the provision of hosting services and mining rewards
allocated to each provider of pool participant in exchange for
their computing power contributed to the mining pool.
The cost of revenues decreased by
$2.1 million or 30%, from $6.8 million for the six months
ended June 30, 2021, to $4.8 million for the six months
ended June 30, 2022. The decrease in cost of revenues was
basically in line with the decrease in revenue.
Gross (Loss)/Profit and Gross Margin
Our gross profit decreased by
$0.54 million, from $1.14 million for the six months
ended June 30, 2021, to gross profit of $0.60 million for
six months ended June 30, 2022. Gross profit as a percentage
of revenue (“gross margin”) was 14% and 11% for the six months
ended June 30, 2021, and 2022, respectively. The decrease of
gross margin was mainly due to the decrease in margin of sales of
products. Our selling price dropped because of the fall in bitcoin
price.
Selling and Marketing Expenses
Our selling and marketing expenses primarily
consisted of staff costs and travelling expenses to participate in
marketing activities. Selling and marketing expenses increased by
$0.12 million from $0.12 million for the six months ended
June 30, 2021, to $0.24 million for the six months ended
June 30, 2022. The increase was mainly due to an increase in
business development activities in the first half of 2022.
General and Administrative Expenses
Our general and administrative expenses mainly
consisted of salaries and bonuses, office related expenses and
professional service fees. General and administrative expenses
increased by $1.7 million, or 183%, from $0.91 million
for the six months ended June 30, 2021, to $2.57 million
for the six months ended June 30, 2022. The increase was
mainly attributable to an increase of $0.8 million in salaries and
bonuses as a result of increased staff headcount and an increase of
$0.72 million in depreciation expense.
Research and Development Expenses
Our research and development expenses mainly
consisted of amortization expenses of intangible assets and costs
for the development of waste heat recovery technology. Research and
development expenses decreased by $0.1 million, or 44%, from
$0.23 million for the six months ended June 30, 2021, to
$0.13 million for the six months ended June 30, 2022. The
decrease was mainly attributable to less research and development
activities amid the sharp fall in bitcoin price in the first half
of 2022.
Impairment of Long-Lived Assets
Impairment of long-lived assets increased by
$0.02 million, or 32%, from $0.05 million for the six months ended
June 30, 2021, to $0.07 million, for the six months ended June 30,
2022. The change was mainly due to the impairment of cryptocurrency
we sustained due to the fall of bitcoin prices.
Other Income(Expense), net
Other income included $0.03 million for the six
months ended June 30, 2021, and other expenses was $0.3 million for
the six months ended June 30, 2022, which mainly comprises of loss
on disposal of fixed assets of $0.3 million.
Net loss
As a result of the foregoing, we had a net loss
of $0.2 million for the six months ended June 30, 2021,
and a net loss of $2.8 million for the six months ended
June 30, 2022.
Liquidity
As of June 30, 2022, cash and cash equivalents
were US$ 16.5 million.
About SAI.TECH
SAI.TECH is a global energy-saving Bitcoin
mining operator and a clean-tech company that integrates the
bitcoin mining, power and heating industries. SAI.TECH uses
proprietary liquid cooling and waste heat recovery technology for
its digital asset mining machines, which utilizes waste heat to
provide recycled energy and heating to potential customers while
lowering mining operating costs. SAI.TECH strives to globally
become the most energy-efficient digital asset mining operations
company, while simultaneously promoting the clean transition of the
bitcoin mining, power and heating industries. For more information
on SAI.TECH, please visit https://sai.tech/.
Forward-Looking Statements:
This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The words “believe”, “expect”, “anticipate”,
“project”, “targets”, “optimistic”, “confident that”, “continue
to”, “predict”, “intend”, “aim”, “will” or similar expressions are
intended to identify forward-looking statements. All statements
other than statements of historical fact are statements that may be
deemed forward-looking statements. These forward-looking statements
including, but not limited to, statements concerning SAI.TECH and
the Company’s operations, financial performance and condition are
based on current expectations, beliefs and assumptions which are
subject to change at any time. SAI.TECH cautions that these
statements by their nature involve risks and uncertainties, and
actual results may differ materially depending on a variety of
important factors such as government and stock exchange
regulations, competition, political, economic and social conditions
around the world and in China including those discussed in
SAI.TECH’s Form 20-F under the headings “Risk Factors”, “Results of
Operations” and “Business Overview” and other reports filed with
the Securities and Exchange Commission from time to time. All
forward-looking statements are applicable only as of the date it is
made and SAI.TECH specifically disclaims any obligation to maintain
or update the forward-looking information, whether of the nature
contained in this release or otherwise, in the future.
SAI.TECH GLOBAL
CORPORATIONUNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS(In thousands, except for number of
shares and per share data)
|
|
As
ofDecember 31,2021 |
|
|
As
ofJune 30,2022 |
|
|
|
(US$) |
|
|
(US$) |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
22,984 |
|
|
|
16,500 |
|
Accounts receivable |
|
|
1,174 |
|
|
|
680 |
|
Amount due from related
parties |
|
|
— |
|
|
|
61 |
|
Inventories |
|
|
198 |
|
|
|
159 |
|
Cryptocurrencies |
|
|
83 |
|
|
|
54 |
|
Deposits, prepayments and
other current assets, net |
|
|
1,022 |
|
|
|
5,253 |
|
Total current
assets |
|
|
25,461 |
|
|
|
22,707 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
4,345 |
|
|
|
3,184 |
|
Intangible assets, net |
|
|
265 |
|
|
|
174 |
|
Operating lease right-of-use
assets |
|
|
43 |
|
|
|
407 |
|
Total
assets |
|
|
30,114 |
|
|
|
26,472 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
2,720 |
|
|
|
149 |
|
Operating lease
liabilities-current |
|
|
17 |
|
|
|
152 |
|
Advance from customers |
|
|
62 |
|
|
|
59 |
|
Accrued and other
liabilities |
|
|
25 |
|
|
|
123 |
|
Income tax payable |
|
|
1 |
|
|
|
1 |
|
Amount due to related
parties |
|
|
160 |
|
|
|
28 |
|
Total current
liabilities |
|
|
2,985 |
|
|
|
512 |
|
Operating lease
liabilities-non-current |
|
|
27 |
|
|
|
255 |
|
Total
Liabilities |
|
|
3,012 |
|
|
|
767 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies - Note 12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
|
|
*Class A Ordinary shares
($0.0001 par value; authorized 330,369,366 shares; issued and
outstanding 12,933,653 shares as of December 31, 2021 and June
30,2022) |
|
|
1 |
|
|
|
1 |
|
*Class B Ordinary shares
($0.0001 par value; authorized 9,630,634 shares; issued and
outstanding 9,630,634 shares as of December 31, 2021 and June
30,2022) |
|
|
1 |
|
|
|
1 |
|
Additional paid-in
capital |
|
|
42,365 |
|
|
|
46,579 |
|
Accumulated deficit |
|
|
(15,348 |
) |
|
|
(20,794 |
) |
Accumulated other
comprehensive income/(loss) |
|
|
83 |
|
|
|
(82 |
) |
Total shareholders’
equity |
|
|
27,102 |
|
|
|
25,705 |
|
Total Liabilities and
shareholders’ equity |
|
|
30,114 |
|
|
|
26,472 |
|
|
|
|
|
|
|
|
|
|
* The shares and per share data are presented on a retroactive
basis to reflect the reorganization.
The accompanying notes are an integral part of these unaudited
condensed consolidated financial statements
SAI.TECH GLOBAL
CORPORATIONUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE
(LOSS)/INCOME(In thousands, except for number of
shares and per share data)
|
|
For theSix Months Ended
June 30, |
|
|
|
2021 |
|
|
2022 |
|
|
|
(US$) |
|
|
(US$) |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Revenues |
|
|
7,990 |
|
|
|
5,376 |
|
Cost of revenues |
|
|
6,849 |
|
|
|
4,774 |
|
Gross
Profit |
|
|
1,141 |
|
|
|
602 |
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
|
122 |
|
|
|
238 |
|
General and administrative
expenses |
|
|
910 |
|
|
|
2,574 |
|
Research and development
expenses |
|
|
230 |
|
|
|
129 |
|
Impairment of long-lived
assets |
|
|
53 |
|
|
|
70 |
|
Total operating
expenses |
|
|
1,315 |
|
|
|
3,011 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(174 |
) |
|
|
(2,409 |
) |
Other income, net |
|
|
32 |
|
|
|
(320 |
) |
Loss before income
tax |
|
|
(142 |
) |
|
|
(2,729 |
) |
Income tax expenses |
|
|
(33 |
) |
|
|
- |
|
Net loss |
|
|
(175 |
) |
|
|
(2,729 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive
loss |
|
|
|
|
|
|
|
|
Foreign currency translation
loss |
|
|
(37 |
) |
|
|
(118 |
) |
Total comprehensive
loss |
|
|
(212 |
) |
|
|
(2,847 |
) |
|
|
|
|
|
|
|
|
|
Loss per ordinary
share* |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.008 |
) |
|
|
(0.121 |
) |
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding*: |
|
|
|
|
|
|
|
|
Basic & Diluted |
|
|
22,564,287 |
|
|
|
22,564,287 |
|
|
|
|
|
|
|
|
|
|
* The shares and per share data are presented on a retroactive
basis to reflect the reorganization.
The accompanying notes are an integral part of the unaudited
condensed consolidated financial statements
About SAI.TECH
SAI.TECH is an energy-saving bitcoin mining operator and a
clean-tech company that integrates the bitcoin mining, power, and
heating industries. SAI.TECH uses proprietary liquid cooling and
waste heat recovery technology for its digital asset mining
machines, utilizing waste heat to provide recycled energy and
heating to potential customers while lowering mining operating
costs. SAI.TECH strives to become the most cost-efficient digital
asset mining operations company globally while simultaneously
promoting the clean transition of the bitcoin mining, power, and
heating industries.
In May 2022, SAI became a publicly trading company under the new
ticker symbol “SAI” on the Nasdaq Stock Market (NASDAQ) through a
merger with TradeUP Global Corporation ("TradeUP").
For more information on SAI.TECH, please visit
https://sai.tech/.
Media Contact
pr@sai.tech
Investor Relations Contact
ir@sai.tech
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