Ebang International Reports Financial Results for Fiscal Year 2020

HANGZHOU, China, April 30, 2021 (GLOBE NEWSWIRE) — Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a blockchain expertise firm within the international market, at this time introduced its monetary outcomes for the fiscal yr ended December 31, 2020.

Operational and Financial Highlights for Fiscal Year 2020

Total computing energy offered in fiscal yr 2020 was 0.50 million TH/s, representing a year-over-year lower of 91.64% from 5.97 million TH/s in fiscal yr 2019.

Total web revenues in fiscal yr 2020 have been US$19.00 million representing an 82.57% year-over-year lower from US$109.06 million in fiscal yr 2019.

Gross loss in fiscal yr 2020 was US$2.90 million representing a 90.51% year-over-year lower from US$30.56 million in fiscal yr 2019.

Net loss in fiscal yr 2020 was US$32.11 million in comparison with US$41.07 million in fiscal yr 2019.

Mr. Dong Hu, Chairman and Chief Executive Officer of the Company, commented, “The negative impact and unprecedented challenges caused by COVID-19 on businesses around the world is well documented, and we are not immune to them. Our chip suppliers have reduced their production capacity, resulting in our shortage of raw materials during the fiscal year of 2020. To ensure the resilience of our business operations and deliver solid performance after the market condition resumes normal, we have been actively optimizing our revenue structure based on the productivity ratio and strategically exploring expansion into blockchain-enabled financial services. For example, we positioned our overseas expansion by establishing subsidiaries globally and acquiring relevant licenses or authorizations for our cryptocurrency exchange business.”

Continued Hu, “We are committed to our mission in strengthening the technological innovation in our products and services to ensure their competitiveness in the global cryptocurrency market. As previously noted, in 2021, we will increase investments in high performance ASIC chips and mining machines. Our abundant cash reserve allows us to expand the revenue sources from our current business and optimize the development of our blockchain industry chain. We believe our current businesses have solid potential and we are working hard to deliver results going forward that will demonstrate sequential improvement in operating and financial metrics.”

Financial Results for Fiscal Year 2020

Total web revenues in fiscal yr 2020 have been US$19.00 million representing an 82.57% year-over-year lower from US$109.06 million in fiscal yr 2019. The year-over-year lower in whole web revenues was primarily because of the mixed affect of COVID-19 similar to journey restrictions, necessary quarantines and suspension of enterprise actions, which have brought about extreme disruptions and uncertainties to the Company’s enterprise operations and adversely affected the Company’s outcomes of operations and monetary situation. For occasion, the Company’s chip suppliers have diminished their manufacturing capability because of the affect of the COVID-19, ensuing within the Company’s scarcity of uncooked supplies throughout the first half of 2020. And along with the Bitcoin halving occasion, which considerably affected the anticipated returns on Bitcoin associated actions similar to mining, and in flip resulted in a a lot decrease demand and common promoting worth of the Company’s Bitcoin mining machines.

Cost of revenues in fiscal yr 2020 was US$21.90 million in comparison with US$139.62 million in fiscal yr 2019. The year-over-year lower in price of revenues was according to the adjustments within the Company’s gross sales and the lower in stock write-down.

Gross loss in fiscal yr 2020 have been US$2.90 million representing a 90.51% year-over-year lower from US$30.56 million in fiscal yr 2019.

Total working bills in fiscal yr 2020 have been US$23.75 million in comparison with US$20.08 million in fiscal yr 2019.

  • Selling bills in fiscal yr 2020 have been US$0.93 million in comparison with US$1.21 million in fiscal yr 2019. The year-over-year lower in promoting bills was according to the lower within the Company’s gross sales in addition to diminished wage and bonus bills referring to promoting actions.
  • General and administrative bills in fiscal yr 2020 have been US$22.82 million in comparison with US$18.87 million in fiscal yr 2019. The year-over-year enhance typically and administrative bills was primarily attributable to enhance in skilled payment associated to the IPO course of.

Loss from operations in fiscal yr 2020 was US$26.65 million in comparison with US$50.65 million in fiscal yr 2019.

Interest revenue in fiscal yr 2020 was US$0.82 million in comparison with US$0.22 million in fiscal yr 2019. The year-over-year enhance in curiosity revenue was primarily because of the enhance within the curiosity revenue from our investments in bonds after our IPO in 2020 and there was no bond funding in 2019.

Government grants in fiscal yr 2020 have been US$4.01 million in comparison with US$6.30 million in fiscal yr 2019. The year-over-year lower in authorities grants was primarily because of the lower of non-recurring rebates from native authorities.

Net loss in fiscal yr 2020 was US$32.11 million in comparison with US$41.07 million in fiscal yr 2019.

Net loss attributable to Ebang International Holdings Inc. in fiscal yr 2020 was US$30.67 million in comparison with US$42.40 million in fiscal yr 2019.

Basic and diluted web loss per shares in fiscal yr 2020 have been each US$0.25 in comparison with US$0.38 in fiscal yr 2019.

Cash and money equivalents have been US$13.67 million as of December 31, 2020, in contrast with US$3.46 million as of December 31, 2019.

About Ebang International Holdings Inc.

Ebang International Holdings Inc. is a blockchain expertise firm with robust application-specific built-in circuit (ASIC) chip design functionality. With years of trade expertise and experience in ASIC chip design, it has grow to be a number one bitcoin mining machine producer within the international market with regular entry to wafer foundry capability. With its licensed or registered entities in numerous jurisdictions, the Company seeks to launch an expert, handy and revolutionary digital asset monetary service platform to increase into the upstream and the downstream of blockchain and cryptocurrency trade worth chain. For extra info, please go to https://ir.ebang.com.cn/.

Safe Harbor Statement

This press launch comprises forward-looking statements throughout the which means of Section 21E of the Securities Exchange Act of 1934, as amended, and as outlined within the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements embody, with out limitation, the Company’s improvement plans and enterprise outlook, which will be recognized by terminology similar to “may,” “will,” “expects,” “anticipates,” “aims,” “potential,” “future,” “intends,” “plans,” “believes,” “estimates,” “continue,” “likely to” and different related expressions. Such statements will not be historic info, and are primarily based upon the Company’s present beliefs, plans and expectations, and the present market and working situations. Forward-looking statements contain inherent recognized or unknown dangers, uncertainties and different components, all of that are tough to foretell and lots of of that are past the Company’s management, which can trigger the Company’s precise outcomes, efficiency and achievements to vary materially from these contained in any forward-looking assertion. Further info concerning these and different dangers, uncertainties or components is included within the Company’s filings with the U.S. Securities and Exchange Commission. These forward-looking statements are made solely as of the date indicated, and the Company undertakes no obligation to replace or revise the data contained in any forward-looking statements because of new info, future occasions or in any other case, besides as required underneath relevant regulation.

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.
CONSOLIDATED BALANCE SHEETS
(Stated in US {dollars})

 December 31,
2020
  December 31,
2019
 
ASSETS     
Current property:     
Cash and money equivalents$13,669,439  $3,464,262 
Restricted money, present 406,857   2,270,588 
Debt investments 40,835,000    
Accounts receivable, web 7,205,113   8,128,178 
Notes receivable 765,967    
Advances to suppliers 221,186   1,062,049 
Inventories, web 3,845,091   13,088,542 
Prepayments 522,808   591,031 
Other present property, web 1,128,599   224,452 
Total present property 68,600,060   28,829,102 
        
Non-current property:       
Property, plant and gear, web 29,123,243   13,224,761 
Intangible property, web 23,077,435   3,784,153 
Operating lease right-of-use property 898,335   1,280,076 
Operating lease right-of-use property – associated occasion 17,701   37,266 
Restricted money, non-current 47,455   43,317 
Deferred tax property    8,542,715 
VAT recoverable 21,897,063   21,954,169 
Other property 538,934   4,915,487 
Total non-current property 75,600,166   53,781,944 
        
Total property$144,200,226  $82,611,046 
        
LIABILITIES AND EQUITY       
Current liabilities:       
Accounts payable$2,762,187  $11,832,003 
Notes payable 1,087,673    
Accrued liabilities and different payables 21,921,614   13,739,041 
Loans due inside one yr, much less unamortized debt issuance prices 765,967   4,864,697 
Operating lease liabilities, present 659,807   793,521 
Operating lease liabilities – associated occasion, present 17,701   37,266 
Income taxes payable 556,137   521,648 
Due to associated occasion 5,652,833   6,242,824 
Advances from prospects 832,842   1,015,675 
Total present liabilities 34,256,761   39,046,675 
        
Non-current liabilities:       
Long-term loans – associated occasion    17,632,000 
Deferred tax liabilities 872    
Operating lease liabilities, non-current 118,827   361,747 
Total non-current liabilities 119,699   17,993,747 
        
Total liabilities 34,376,460   57,040,422 
        
Equity:       
Ordinary share, HKD0.001 par worth, 380,000,000 shares approved, nil
and 111,771,000 shares issued and excellent at December 31, 2020 and
2019, respectively
    14,330 
Class A unusual share, HKD0.001 par worth, 333,374,217 shares
approved, 89,009,554 and nil shares issued and excellent as of
December 31, 2020 and 2019, respectively
 11,411    
Class B unusual share, HKD0.001 par worth, 46,625,783 shares
approved, 46,625,783 and nil shares issued and excellent as of
December 31, 2020 and 2019, respectively
 5,978    
Additional paid-in capital 138,288,921   23,888,023 
Statutory reserves 11,049,847   11,049,847 
Accumulated deficit (38,581,419)  (7,905,999)
Accumulated different complete loss (7,648,332)  (9,066,842)
Total Ebang International Holdings Inc. shareholders’ fairness 103,126,406   17,979,359 
        
Non-controlling curiosity 6,697,360   7,591,265 
        
Total fairness 109,823,766   25,570,624 
        
Total liabilities and fairness$144,200,226  $82,611,046 
 
 

EBANG INTERNATIONAL HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Stated in US {dollars})

 For the yr ended
December 31,

2020
  For the yr ended
December 31,

2019
  For the yr ended
December 31,

2018
 
Product income$9,677,278  $93,255,813  $310,856,407 
Service income 9,327,023   15,804,253   8,185,386 
Total revenues 19,004,301   109,060,066   319,041,793 
Cost of revenues 21,903,644   139,623,799   294,596,001 
Gross revenue (loss) (2,899,343)  (30,563,733)  24,445,792 
            
Operating bills:           
Selling bills 925,373   1,213,294   4,095,835 
General and administrative bills 22,822,085   18,870,794   51,410,864 
Total working bills 23,747,458   20,084,088   55,506,699 
            
Loss from operations (26,646,801)  (50,647,821)  (31,060,907)
            
Other revenue (bills):           
Interest revenue 824,435   217,200   453,991 
Interest bills (728,346)  (2,041,491)  (921,047)
Other revenue 81,733   84,992   1,139,514 
Exchange acquire (loss) (288,346)  5,693,798   (403,544)
Government grants 4,006,567   6,298,893   798,680 
VAT refund    9,138   27,368,030 
Other bills (108,624)  (287,530)  (8,289,391)
Total different revenue 3,787,419   9,975,000   20,146,233 
            
Loss earlier than revenue taxes provision (22,859,382)  (40,672,821)  (10,914,674)
            
Income taxes provision 9,251,542   400,311   899,586 
            
Net Loss (32,110,924)  (41,073,132)  (11,814,260)
Less: web revenue (loss) attributable to non-controlling curiosity (1,435,504)  1,330,237   494,234 
Net loss attributable to Ebang International Holdings Inc.$(30,675,420) $(42,403,369) $(12,308,494)
            
Comprehensive loss           
Net loss$(32,110,924) $(41,073,132) $(11,814,260)
Other complete revenue (loss):           
Foreign forex translation adjustment 1,960,109   (1,188,488)  (11,363,682)
            
Total complete loss (30,150,815)  (42,261,620)  (23,177,942)
Less: complete revenue (loss) attributable to non-
controlling curiosity
 (893,905)  1,330,237   494,234 
Comprehensive loss attributable to Ebang
International Holdings Inc.
$(29,256,910) $(43,591,857) $(23,672,176)
            
Net loss per unusual share attributable to Ebang
International Holdings Inc.
           
Basic$(0.25) $(0.38) $(0.36)
Diluted$(0.25) $(0.38) $(0.36)
            
Weighted common unusual shares excellent           
Basic 121,941,226   111,771,000   33,808,506 
Diluted 121,941,226   111,771,000   33,808,506 

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