On September 25, Ebang International Holdings Inc. (Nasdaq: EBON) revealed its unaudited monetary outcomes for the primary six months of the 2020 fiscal yr. Ebang is a number one producer of high-performance Bitcoin mining machines and a significant application-specific built-in circuit (“ASIC”) chip design firm.
The Operational And Monetary Highlights
Complete internet revenues for the primary six months of the yr had been US$11.04 million. That quantity represents a 50.6% year-over-year (YoY) lower from US$22.35 million reported in the identical interval a yr in the past. The cumulative computing power bought within the first half of 2020 was 0.25 million Thash/s which is a YoY lower of round 86.02% from 1.82 million Thash/s recorded in 2019.
The corporate recorded a gross lack of US$0.97 million translating to a 94.59% year-over-year decline from US$17.87 million recorded in the identical interval in 2019. Internet loss for these six months was US$6.96 million in comparison with US$19.07 million within the first six months of final yr.
Chairman and Chief Govt Officer of the Firm, Mr. Dong Hu, mentioned:
“The outbreak of the COVID-19 has considerably affected enterprise and manufacturing actions worldwide. Measures to include COVID-19, reminiscent of journey restrictions, obligatory quarantines, and suspension of enterprise actions have induced extreme disruptions and uncertainties to our enterprise operations and adversely affected our outcomes of operations and monetary situation. Our chip suppliers have decreased their manufacturing capability because of the affect of the COVID-19, leading to our scarcity of uncooked supplies through the first six months of 2020.”
Dong Hu mentioned that the corporate took well timed and proactive measures to ensure the resilience of its enterprise operations. These measures will assist them ship stable efficiency aftermarket situations return to normalcy. In that context, the administration actively optimized the corporate’s income construction based on the productiveness ratio and strategically discover expansions into the blockchain-enabled monetary providers. Hu continued:
“With the preparatory work now we have initiated in Singapore and Canada, we’re at an preliminary preparatory stage of executing our plan to launch blockchain-enabled monetary enterprise by establishing cryptocurrency alternate(s) and on-line brokerage(s) and by combining the blockchain-enabled monetary companies with the normal ones to seize the whole worth chain of the blockchain business.”
Ebang is dedicated to staying true to its mission of strengthening the technological innovation of its services to boost their aggressive edge available in the market.
Unaudited Monetary Outcomes
Within the first six months of 2020, the whole internet revenues reported by Ebang had been US$11.04M, a 50.60% year-over-year lower from US$22.35M recorded in 2019. The bitcoin halving event and the fast unfold of the coronavirus are guilty for these decreases.
The halving occasion affected the anticipated returns on Bitcoin-related actions like mining. Consequently, it resulted in considerably decrease demand and common promoting worth for the bitcoin mining machines.
The price of revenues in the identical interval was US$12.01M in comparison with US$40.21M in the identical interval final yr. That lower was in keeping with the modifications within the agency’s gross sales and the lower in stock write-down. The gross loss stood at US$0.97 million. That represents a 94.59% year-over-year lower from US$17.87M in 2019.
Complete working bills within the first half of 2020 had been US$7.71M in comparison with US$9.60M in 2019. The overall and administrative bills stood at US$7.26 million whereas the promoting bills had been US$0.45 million.
Losses recorded from operations totaled US$8.68 million in comparison with US$27.47 million recorded within the first half of 2019. Different revenue acquired within the first half of 2020 was US$0.02M in comparison with US$0.03M in 2019. That lower is attributed to a plunge in funding revenue from wealth administration merchandise acquired from the banks inside that interval.
$2.54M of presidency grants had been availed to the corporate in comparison with US$6.18 million within the first half of 2019. The lower in these authorities grants was brought on by the lower of tax rewards from the federal government. Internet loss within the first half of this yr was US$6.96 million. The loss attributed to Ebang Worldwide Holdings Inc was US$6.21 million whereas the fundamental and diluted internet loss per shares had been each US$0.06.