October 22, 2021

StrategisChhr

Skillful Business Crafters

Ebang International Holdings Inc. Reports Unaudited Financial Results for The First Six Months of Fiscal Year 2021

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.

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

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: [email protected]

Ascent Investor Relations LLC
Ms. Tina Xiao
Tel: (917) 609-0333
Email: [email protected]

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

https://finance.yahoo.com/news/ebang-international-holdings-inc-reports-203000079.html