Kanan Technology released first quarter earnings: revenue of 400 million yuan overseas revenue accounted for nearly 80%

The financial report shows that, thanks to the growth in the number of bitcoin miners delivered in the first quarter, Canaan Technology reported revenue of $402.8 million (RMB, same below) in the first quarter, an increase of nearly 4.9 times year-on-year and 9.5 times sequentially.

Kanan Technology released first quarter earnings: revenue of 400 million yuan overseas revenue accounted for nearly 80%

The equity compensation mechanism further stimulates team effectiveness in all business lines of the company, enhances internal cohesion through executive and employee shareholding, solidifies investor confidence, and achieves lock-in to the company’s business prospects and long-term value.

On June 1, Beijing time, CAN (NASDAQ:CAN) released its financial report for the first quarter of 2021. According to the financial report, thanks to the growth in the number of bitcoin miners delivered in the first quarter, CAN’s revenue in the first quarter was RMB402.8 million (RMB, same below), up nearly 4.9 times year-over-year and 9.5 times sequentially. In terms of revenue structure, the company’s revenue from overseas markets accounted for 78.4% of total revenue in the first quarter of 2021, compared to only 4.9% in the same period of 2020.

The Company’s gross profit for the quarter increased to RMB194.2 million from RMB2.39 million in the same period of 2020 and RMB9.09 million in the fourth quarter of 2020, and gross margin improved to 48.2% from 3.5% in the same period of 2020 and 23.8% in the fourth quarter of 2020.

Net income attributable to common shareholders for the first quarter of 2021 was RMB 1.2 million and non-GAAP adjusted net income was RMB 143.2 million.

During the quarter, the Company incurred share-based payment expense of approximately RMB145.5 million equivalent for restricted shares granted under the Amended 2018 Equity Incentive Plan. The equity compensation mechanism further stimulates team effectiveness in all business lines of the Company, enhances internal cohesion through shareholding of executives and employees, solidifies investor confidence and achieves lock-in of the Company’s business prospects and long-term value.

As of the end of the first quarter, the Company’s pre-receivables amounted to RMB 1,210.6 million due to increased down payments for bitcoin mining machine sales orders in the next few quarters. During the same period, the Company’s cash and cash equivalents were RMB 1,337.8 million.

The following are the Company’s key financial data for the first quarter.

Revenue: revenue increased to RMB402.8 million ($61.48 million) in the first quarter of 2021 from RMB68.27 million in the same period of 2020 and RMB38.25 million in the fourth quarter of 2020. The year-over-year and sequential increases were mainly due to the growth in mining machine sales.

Overseas revenue share: In terms of revenue mix, the Company’s revenue from overseas markets accounted for 78.4% of total revenue in the first quarter of 2021, excluding revenue from Hong Kong, compared to 4.9% in the same period of 2020.

Total Sales Capacity: The Company’s total sales capacity for the first quarter of 2021 was 1.98 million TH/s, an increase of 122.2% compared to the first quarter of 2020 and an increase of 900% from the fourth quarter of 2020. The sequential increase in total sales capacity was primarily due to an increase in the number of bitcoin miners delivered during the quarter.

Costs: costs increased to RMB208.6 million ($31.83 million) in the first quarter of 2021 from RMB65.89 million in the same period of 2020 and RMB29.16 million in the fourth quarter of 2020. The year-over-year and sequential increases in costs are consistent with revenue growth.

Gross profit and gross margin: Gross profit increased to RMB194.2 million (US$29.64 million) in the first quarter of 2021 from RMB2.39 million in the same period of 2020 and RMB9.09 million in the fourth quarter of 2020. gross margin improved to 48.2% in the first quarter of 2021 from 3.5% in the same period of 2020 and 23.8% in the fourth quarter of 2020.

Total operating expenses: Total operating expenses for the first quarter of 2021 were RMB207.9 million (US$31.73 million) compared to RMB73.52 million for the same period in 2020 and RMB80.1 million for the fourth quarter of 2020.

R&D expenses: R&D expenses for the first quarter of 2021 were RMB58.16 million (US$8.88 million), an increase of 39.2% compared to RMB41.79 million for the same period in 2020 and an increase of 45.2% compared to RMB40.06 million for the fourth quarter of 2020.

Equity Incentives: Share-based payment expense of approximately RMB145.5 million equivalent for restricted shares granted under the Company’s Amended 2018 Equity Incentive Plan in the first quarter of 2021.

Operating loss: Operating loss narrowed to RMB13.67 million ($2.09 million) in the first quarter of 2021 from RMB71.13 million in the same period of 2020 and RMB71.0 million in the fourth quarter of 2020.

Net income attributable to shareholders: Net income attributable to common shareholders for the first quarter of 2021 was RMB1.2 million (US$190,000), compared to a loss of RMB39.95 million for the same period in 2020 and a loss of RMB72.05 million for the fourth quarter of 2020.

Non-GAAP Adjusted Net Income: Non-GAAP adjusted net income was RMB143.2 million (US$21.85 million) for the first quarter of 2021, compared to a loss of RMB38.22 million for the same period in 2020 and a loss of RMB73.12 million for the fourth quarter of 2020. Non-GAAP adjusted net income/loss excludes equity incentive expense.

Net income per share: Basic net income and diluted net income per American Depositary Share (ADS) were both RMB 0.01 ($0.00) for the first quarter of 2021. This compares to a basic net loss and diluted net loss per ADS of RMB 0.25 for the same period in 2020 and a basic net loss and diluted net loss per ADS of RMB 0.46 for the fourth quarter of 2020. Each ADS represents 15 shares of the Company’s Class A common stock.

Pre-receivables: Pre-receivables were RMB 1,210.6 million ($184.8 million) as of March 31, 2021, up from RMB 430.4 million as of December 31, 2020, primarily due to increased down payments on bitcoin miner sales orders in the coming quarters.

Cash Flow: The Company’s cash and cash equivalents were RMB 1,337.8 million ($204.2 million) as of March 31, 2021, compared to RMB 391.3 million as of December 31, 2020. Short-term investments decreased to RMB8.5 million ($1.3 million) as of March 31, 2021 from RMB62.39 million as of December 31, 2020 as the Company redeemed some of its wealth management products during the first quarter of 2021. The short-term investments held are highly liquid and can be recovered at any time.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/kanan-technology-released-first-quarter-earnings-revenue-of-400-million-yuan-overseas-revenue-accounted-for-nearly-80/
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