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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2024
Commission File Number 001-39337
Ebang International Holdings Inc.
(Exact name of registrant as specified in its charter)
12 Marina View, #20-02B, Asia Square Tower 2,
Singapore, 018961
+86 571-8817-6197
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Ebang International Holdings Inc. | |||
| Date: April 26, 2024 | By: | /s/ Dong Hu | |
| Name: | Dong Hu | ||
| Title: | Chairman, Chief Executive Officer and | ||
| Chief Financial Officer | |||
EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Ebang International Reports Financial Results for Fiscal Year 2023 |
2
Exhibit 99.1
Ebang International Reports Financial Results for Fiscal Year 2023
SINGAPORE, April 26, 2024 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a global blockchain technology and Fintech company, today announced its financial results for the fiscal year ended December 31, 2023.
Operational and Financial Highlights for Fiscal Year 2023
Total net revenues in the 2023 fiscal year decreased by 85.0% to US$4.9 million, from US$32.3 million in the 2022 fiscal year.
Gross loss in the 2023 fiscal year was US$16.7 million, compared to a gross profit of US$15.4 million in the 2022 fiscal year.
Net loss in the 2023 fiscal year was US$38.0 million, compared to US$45.8 million in the 2022 fiscal year.
Mr. Dong Hu, Chairman, and Chief Executive Officer of the Company, commented, “Opportunities and challenges have coexisted since 2023; however, the approval and listing of spot Bitcoin ETFs have given us a glimpse of a promising future for the cryptocurrency market. The strengthening of Fintech regulatory systems and regimes has made our commitment to compliance mechanisms unwavering. Despite the fluctuations in the industry and the impact of the macroeconomic environment, we remain true to our original aspiration, and strive to develop and improve our global Fintech businesses. As for the 2023 fiscal year, our revenue generated from our cryptocurrency exchange and cross-border payment and foreign exchange businesses increased by approximately 36% as compared to the 2022 fiscal year. In the future, we will continue to promote innovation in products and technologies, make real-time adjustments to business strategies in response to the constantly changing market environments, streamline costs and expenses, enhance capital utilization, and prepare for new opportunities in the market.”
Financial Results for Fiscal Year 2023
Total net revenues in the 2023 fiscal year decreased by 85.0% to US$4.9 million, from US$32.3 million in the 2022 fiscal year, primarily due to: (1) the bankruptcy of virtual currency banks in the United States and the exposure of certain fraud incidents on international trading platforms, which led market participants to become increasingly cautious about cryptocurrency related products and services in 2023; and (2) the absence in 2023 of revenue derived from a one-time payment corresponding to the recognition of RMB173.4 million in revenue in 2022 following our receipt of RMB173.4 million (approximately US$25.8 million), a one-time payment from two former customers as a result of court mediations.
Cost of revenues in the 2023 fiscal year increased by 27.4% to US$21.6 million, from US$16.9 million in the 2022 fiscal year, which is primarily due to a VAT recoverable impairment of US$16.7 million, which was recognized in cost of revenue in the 2023 fiscal year as it is expected that VAT will not be recovered in the foreseeable future; and offset by decrease of inventory impairment from US$6.5 million in the 2022 fiscal year to US$0.3 million in the 2023 fiscal year.
Gross loss in the 2023 fiscal year was US$16.7 million, compared to a gross profit of US$15.4 million in the 2022 fiscal year.
Total operating expenses in the 2023 fiscal year decreased by 41.7% to US$36.9 million, from US$63.4 million in the 2022 fiscal year, primarily due to decreases in both selling expenses and general and administrative expenses.
| ● | Selling expenses in the 2023 fiscal year decreased by 3.2% to US$1.9 million, from US$2.0 million in the 2022 fiscal year, mainly due to decreased advertising and marketing expenses related to our Fintech businesses. |
| ● | General and administrative expenses in the 2023 fiscal year decreased by 28.7% to US$29.0 million, from US$40.7 million in the 2022 fiscal year, primarily due to decreases in amortization expenses and stock-based compensation expenses. |
| ● | Impairment of intangible assets in the 2023 fiscal year was US$3.7 million. The US$3.7 million was related to an impairment loss charge on a financial license in the 2023 fiscal year. |
| ● | Impairment of goodwill in the 2023 fiscal year was US$2.3 million. The Company didn’t have impairment of goodwill in the 2022 fiscal year. Impairment of goodwill in the 2023 fiscal year represents the impairment loss charged on goodwill generated from a business acquisition that closed in March 2022 as a result of the annual goodwill impairment review. |
Gain from disposal of subsidiaries in the 2023 fiscal year was US$0.008 million, compared to US$0.006 million in the 2022 fiscal year. Gain from disposal of subsidiaries was primarily due to the disposal of EBONEX PTE. LTD. during the 2023 fiscal year, and disposal of Ebang Hongling and Wuhai Ebang during the 2022 fiscal year.
Loss from operations in the 2023 fiscal year was US$53.6 million, compared to loss from operations of US$48.0 million in the 2022 fiscal year.
Interest income in the 2023 fiscal year was US$11.9 million, compared to US$4.4 million in the 2022 fiscal year. The increase was primarily due to the Company utilizing more funds in the purchase of fixed deposits in the 2023 fiscal year.
Other income in the 2023 fiscal year was US$1.1 million, compared to US$1.0 million in the 2022 fiscal year. Other income in the 2023 fiscal year was mainly due to the Company taking possession of customer deposits collected from previous years as a result of defaults by customers under their respective contracts with the Company.
Net loss in the 2023 fiscal year was US$38.0 million, compared to US$45.8 million in the 2022 fiscal year.
Net loss attributable to Ebang International Holdings Inc. in the 2023 fiscal year was US$36.8 million, compared to US$43.9 million in the 2022 fiscal year.
Basic and diluted net loss per share in the 2023 fiscal year was US$5.86, compared to basic and diluted net loss per share of US$7.03 in the 2022 fiscal year.
Cash and cash equivalents were US$241.6 million as of December 31, 2023, compared with US$251.3 million as of December 31, 2022.
About Ebang International Holdings Inc.
Ebang International Holdings Inc. is a global blockchain technology and Fintech company with strong application-specific integrated circuit (ASIC) chip design capability. With years of industry experience and expertise, it has become a global Bitcoin mining machine producer. Based on its deep understanding of the Fintech industry and compliance with laws and regulations in various jurisdictions, it has launched professional, convenient and innovative Fintech service platforms. It strives to expand into the upstream and downstream markets of the blockchain and Fintech industries value chain to achieve diversified products and services, and to explore future opportunities. For more information, please visit https://ir.ebang.com/.
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. These forward-looking statements include, without limitation, the Company’s development plans and business outlook, which can be identified by terminology such as “may,” “will,” “expects,” “anticipates,” “aims,” “potential,” “future,” “intends,” “plans,” “believes,” “estimates,” “continue,” “likely to,” and other 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 include, but are not limited to, statements regarding our future operating results and financial position, our business strategy and plans, expectations relating to our industry, the regulatory environment, market conditions, trends and growth, expectations relating to customer behaviors and preferences, our market position and potential market opportunities, and our objectives for future operations. 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. These risks and uncertainties include our ability to successfully execute our business and growth strategy and maintain future profitability, market acceptance of our products and services, our ability to further penetrate our existing customer base and expand our customer base, our ability to develop new products and services, our ability to expand internationally, the success of any acquisitions or investments that we make, the efforts of increased competition in our markets, our ability to stay in compliance with applicable laws and regulations, market conditions across the blockchain, Fintech and general market, political and economic conditions. 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: ir@ebang.com
Ascent Investors Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
EBANG INTERNATIONAL HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(Stated in US dollars)
| December 31, 2023 |
December 31, 2022 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 241,634,262 | $ | 251,294,952 | ||||
| Restricted cash, current | 88,614 | 29,039 | ||||||
| Short-term investments | 496,122 | 5,835,377 | ||||||
| Accounts receivable, net | 946,514 | 3,334,727 | ||||||
| Advances to suppliers | 1,071,137 | 1,178,168 | ||||||
| Inventories, net | 198,846 | 440,064 | ||||||
| Prepayments | 304,453 | 281,611 | ||||||
| Other current assets, net | 5,691,679 | 6,711,422 | ||||||
| Total current assets | 250,431,627 | 269,105,360 | ||||||
| Non-current assets: | ||||||||
| Property, plant and equipment, net | 33,151,061 | 36,549,278 | ||||||
| Intangible assets, net | 2,329,777 | 6,890,738 | ||||||
| Operating lease right-of-use assets | 6,119,535 | 5,343,608 | ||||||
| Operating lease right-of-use assets - related parties | 31,197 | 519,140 | ||||||
| Restricted cash, non-current | 1,197,286 | 903,125 | ||||||
| Goodwill | - | 2,299,628 | ||||||
| VAT recoverable | 4,061,079 | 21,132,898 | ||||||
| Other assets | 918,086 | 1,421,309 | ||||||
| Total non-current assets | 47,808,021 | 75,059,724 | ||||||
| Total assets | $ | 298,239,648 | $ | 344,165,084 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 292,570 | $ | 1,456,577 | ||||
| Accrued liabilities and other payables | 9,804,848 | 11,519,091 | ||||||
| Operating lease liabilities, current | 1,764,259 | 1,217,604 | ||||||
| Operating lease liabilities - related parties, current | 28,849 | 283,567 | ||||||
| Advances from customers | 69,361 | 1,010,852 | ||||||
| Total current liabilities | 11,959,887 | 15,487,691 | ||||||
| Non-current liabilities: | ||||||||
| Operating lease liabilities, non-current | 4,880,844 | 5,755,973 | ||||||
| Operating lease liabilities – related party, non-current | 2,348 | - | ||||||
| Deferred tax liabilities | 74,225 | 1,133,539 | ||||||
| Total non-current liabilities | 4,957,417 | 6,889,512 | ||||||
| Total liabilities | 16,917,304 | 22,377,203 | ||||||
| Equity: | ||||||||
| Class A ordinary share, HKD0.03 par value, 11,112,474 shares authorized, 4,989,746 and 4,725,019 shares issued, 4,726,424 and 4,700,852 shares outstanding as of December 31, 2023 and 2022, respectively(1) (2) | 18,178 | 18,080 | ||||||
| Class B ordinary share, HKD0.03 par value, 1,554,192 shares authorized, issued and outstanding as of December 31, 2023 and 2022, respectively(1) | 5,978 | 5,978 | ||||||
| Additional paid-in capital | 397,467,795 | 397,620,927 | ||||||
| Statutory reserves | 11,079,649 | 11,079,649 | ||||||
| Accumulated deficit | (114,840,665 | ) | (78,068,522 | ) | ||||
| Accumulated other comprehensive loss | (13,887,088 | ) | (11,724,531 | ) | ||||
| Total Ebang International Holdings Inc. shareholders’ equity | 279,843,847 | 318,931,581 | ||||||
| Non-controlling interest | 1,478,497 | 2,856,300 | ||||||
| Total equity | 281,322,344 | 321,787,881 | ||||||
| Total liabilities and equity | $ | 298,239,648 | $ | 344,165,084 | ||||
| (1) | Retrospectively adjusted for the effect of the Reverse Stock Split effected on November 20, 2022. |
| (2) | As of December 31, 2023 and 2022, 263,322 and 24,167 (725,000 before the Reverse Stock Split) shares reserved for future issuance upon the vesting of RSAs granted under the 2020 Plan were considered issued but not outstanding, respectively. |
EBANG INTERNATIONAL HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Stated in US dollars)
| For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
||||||||||
| Product revenue | $ | 782,349 | $ | 29,537,224 | $ | 48,323,022 | ||||||
| Service revenue | 4,072,832 | 2,790,895 | 3,127,225 | |||||||||
| Total revenues | 4,855,181 | 32,328,119 | 51,450,247 | |||||||||
| Cost of revenues | 21,558,986 | 16,915,795 | 22,227,055 | |||||||||
| Gross profit (loss) | (16,703,805 | ) | 15,412,324 | 29,223,192 | ||||||||
| Operating expenses: | ||||||||||||
| Selling expenses | 1,893,607 | 1,956,120 | 1,418,586 | |||||||||
| General and administrative expenses | 29,041,432 | 40,712,314 | 25,774,237 | |||||||||
| Impairment of intangible assets | 3,708,247 | 20,738,130 | - | |||||||||
| Impairment of goodwill | 2,299,628 | - | - | |||||||||
| Total operating expenses | 36,942,914 | 63,406,564 | 27,192,823 | |||||||||
| Gain on disposal of subsidiaries | (7,524 | ) | (5,941 | ) | - | |||||||
| Income (loss) from operations | (53,639,195 | ) | (47,988,299 | ) | 2,030,369 | |||||||
| Other income (expenses): | ||||||||||||
| Interest income | 11,941,453 | 4,362,832 | 1,779,672 | |||||||||
| Interest expenses | - | - | (4,383 | ) | ||||||||
| Other income | 1,131,178 | 1,033,622 | 133,477 | |||||||||
| Gain (loss) from investment | 356,996 | (509,496 | ) | (3,656,520 | ) | |||||||
| Net gain on disposal of cryptocurrencies | 744,803 | - | - | |||||||||
| Exchange gain (loss) | 456,647 | (2,161,264 | ) | 1,780,087 | ||||||||
| Government grants | 62,600 | 81,911 | 434,604 | |||||||||
| Other expenses | (119,531 | ) | (649,476 | ) | (108,328 | ) | ||||||
| Total other income | 14,574,146 | 2,158,129 | 358,609 | |||||||||
| Income (loss) before income taxes benefit | (39,065,049 | ) | (45,830,170 | ) | 2,388,978 | |||||||
| Income taxes benefit | (1,031,461 | ) | (72,933 | ) | (378,843 | ) | ||||||
| Net income (loss) | (38,033,588 | ) | (45,757,237 | ) | 2,767,821 | |||||||
| Less: net loss attributable to non-controlling interest | (1,261,445 | ) | (1,868,995 | ) | (1,663,120 | ) | ||||||
| Net income (loss) attributable to Ebang International Holdings Inc. | $ | (36,772,143 | ) | $ | (43,888,242 | ) | $ | 4,430,941 | ||||
| Comprehensive income (loss) | ||||||||||||
| Net income (loss) | $ | (38,033,588 | ) | $ | (45,757,237 | ) | $ | 2,767,821 | ||||
| Other comprehensive income (loss): | ||||||||||||
| Foreign currency translation adjustment | (2,278,915 | ) | (5,338,217 | ) | 953,073 | |||||||
| Total comprehensive income (loss) | (40,312,503 | ) | (51,095,454 | ) | 3,720,894 | |||||||
| Less: comprehensive loss attributable to non-controlling interest | (1,377,803 | ) | (2,379,686 | ) | (1,461,374 | ) | ||||||
| Comprehensive income (loss) attributable to Ebang International Holdings Inc. | $ | (38,934,700 | ) | $ | (48,715,768 | ) | $ | 5,182,268 | ||||
| Net income (loss) per ordinary share attributable to Ebang International Holdings Inc. | ||||||||||||
| Basic (1) | $ | (5.86 | ) | $ | (7.03 | ) | $ | 0.75 | ||||
| Diluted (1) | $ | (5.86 | ) | $ | (7.03 | ) | $ | 0.75 | ||||
| Weighted average ordinary shares outstanding | ||||||||||||
| Basic (1) | 6,275,118 | 6,247,333 | 5,923,845 | |||||||||
| Diluted (1) | 6,275,118 | 6,247,333 | 5,928,858 | |||||||||
| (1) | Retrospectively adjusted for the effect of the Reverse Stock Split effected on November 20, 2022. |