Technology

Canaan Inc. Reports Unaudited Third Quarter 2024 Financial Results

Published

1 year ago

November 20, 2024

– Total Revenue Increased to US$73.6 Million, up 120.9% YoY –
– Total Computing Power Sold Achieved 7.3 Million Thash/s, up 93.8% YoY –

SINGAPORE, Nov. 20, 2024 /PRNewswire/ — Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a leading high-performance computing solutions provider, today announced its unaudited financial results for the three months ended September 30, 2024.

Third Quarter 2024 Operating and Financial Highlights

Revenues were US$73.6 million, which beat the previous guidance of US$73 million and increased 120.9% year-over-year.

Total computing power sold was 7.3 million Thash/s, representing a year-over-year increase of 93.8%.

Mining revenue was US$9.0 million, with 147 Bitcoins mined with an average revenue per Bitcoin mined of US$61,034.

Loss from operations was US$56.8 million, narrowing 49.6% year-over-year.

Nangeng Zhang, chairman, and chief executive officer of Canaan, commented, “Despite a challenging third quarter for the industry, we delivered a solid US$73.6 million in total revenue, exceeding our expectations. While Bitcoin prices remained soft in the quarter, the global network hash rate surged over 10%. Through strategic planning and effective execution, we made further strides in our operations. Primarily driven by the A14’s continued large-scale deliveries proceeding as scheduled, we recorded 7.3 million Thash/s of computing power sold, marking our highest sales volume in the past 11 quarters. Our mining operation matrix also continued to be optimized. Despite unfavorable Bitcoin prices, we mined 147 Bitcoins this quarter, a 5% sequential increase.”

“Building on the success of the A14, our new A15 series, which features outstanding performance parameters, began small-scale deliveries this quarter. We are working to optimize the A15’s yield rate and power efficiency, and anticipate ramping up to large-scale deliveries in the fourth quarter. Meanwhile, we remained diligent in strengthening our presence in the North American market. We recently made good progress with our Avalon A15 series, both air-cooled and liquid-cooled versions, including orders from public companies such as CleanSpark and HIVE, which we announced in November. We are also moving steadily towards our 2025 mid-year 10EH/s self-mining target. By delivering high-quality products and efficient alternative solutions, we are committed to empowering our global mining clients to navigate both challenges and opportunities ahead.”

Jin “James” Cheng, chief financial officer of Canaan, stated, “Although the Bitcoin prices remained under pressure in Q3, we overcame significant challenges to beat our expected targets this quarter. Our mining machine sales reached their highest level in nearly two years, driven by our dedicated efforts in delivering both the A14 and A15 models. This accomplishment is a testament to our strengthened production and delivery capabilities. Mining revenue reached US$9 million in the quarter, holding steady compared to the second quarter, despite a 7.5% decrease in the average prices of Bitcoins mined during the same periods. We also increased our balance sheet Bitcoin holdings to a record high of 1,231 Bitcoins, reinforcing our confidence in the long-term value of our cryptocurrency assets.”

“Benefiting from the successful bulk delivery of the A14 products, continued presales of the A15 series, and the completion of the third tranche of Series A preferred shares as we expected, our cash reserves increased to US$72 million by the end of the quarter. The bolstered cash level has enabled us to accelerate the mass production ramp-up of the A15 model. As we approach a critical period of opportunity with the market poised for improvement, we are dedicated to leveraging our high-quality products and enhanced delivery capabilities to meet the diverse needs of our global mining customers. We believe our strategic investments in R&D, supply chain, and mining deployment position us well to capitalize on the anticipated market upturn.”

Third Quarter 2024 Financial Results

Revenues in the third quarter of 2024 were US$73.6 million, as compared to US$71.9 million in the second quarter of 2024 and US$33.3 million in the same period of 2023. Total revenues consisted of US$64.6 million in products revenue, US$9.0 million in mining revenue and US$65,000 in other revenues.

Products revenue in the third quarter of 2024 was US$64.6 million, compared to US$61.8 million in the second quarter of 2024 and US$29.9 million in the same period of 2023. The sequential increase was driven by the increased computing power sold. The year-over-year increase was driven by the increased computing power sold and increased average selling price.

Mining revenue in the third quarter of 2024 was US$9.0 million, compared to US$9.3 million in the second quarter of 2024 and US$3.3 million in the same period of 2023. The year-over-year increase was mainly attributable to the increased computing power energized for mining.

Cost of revenues in the third quarter of 2024 was US$95.1 million, compared to US$91.0 million in the second quarter of 2024 and US$102.4 million in the same period of 2023.

Product cost in the third quarter of 2024 was US$81.6 million, compared to US$79.7 million in the second quarter of 2024 and US$83.7 million in the same period of 2023. The sequential increase was in line with revenue growth. The inventory write-down and prepayment write-down recorded for this quarter was US$22.9 million, compared to US$17.3 million for the second quarter of 2024 and US$53.9 million for the same period of 2023. Product cost consists of direct production costs of mining machines and AI products and indirect costs related to production, as well as inventory write-down and prepayment write-down.

Mining cost in the third quarter of 2024 was US$13.5 million, compared to US$11.0 million in the second quarter of 2024 and US$18.7 million in the same period of 2023. Mining costs herein consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed mining machines. The sequential increase was mainly due to the increased depreciation driven by the increased deployed mining machines. The year-over-year decreases were mainly due to the decreased depreciation which was driven by the end of the depreciation period of early deployed mining machines and the impairment of the currently deployed mining machines. The depreciation in this quarter for deployed mining machines was US$6.5 million, compared to US$4.8 million in the second quarter of 2024 and US$15.0 million in the same period of 2023.

Gross loss in the third quarter of 2024 was US$21.5 million, compared to US$19.1 million in the second quarter of 2024 and US$69.1 million in the same period of 2023.

Total operating expenses in the third quarter of 2024 were US$35.3 million, compared to US$27.5 million in the second quarter of 2024 and US$43.8 million in the same period of 2023.

Research and development expenses in the third quarter of 2024 were US$14.8 million, compared to US$14.6 million in the second quarter of 2024 and US$17.2 million in the same period of 2023. The year-over-year decrease was mainly due to a decrease of US$1.7 million in staff costs and a decrease of US$0.5 million in share-based compensation expenses. Research and development expenses in the third quarter of 2024 also included share-based compensation expenses of US$1.9 million.

Sales and marketing expenses in the third quarter of 2024 were US$1.7 million, compared to US$1.6 million in the second quarter of 2024 and US$2.5 million in the same period of 2023. The year-over-year decrease was mainly due to a decrease of US$0.8 million in the advertising expenses. Sales and marketing expenses in the third quarter of 2024 also included share-based compensation expenses of US$54 thousand.

General and administrative expenses in the third quarter of 2024 were US$12.4 million, compared to US$10.4 million in the second quarter of 2024 and US$16.2 million in the same period of 2023. The sequential increase was mainly due to a decrease in the realized gain on asset disposals. The year-over-year decrease was mainly due to a decrease of US$2.5 million in share-based compensation expenses and an increase of US$0.5 million in the realized gain on asset disposals. General and administrative expenses in the third quarter of 2024 also included share-based compensation expenses of US$4.7 million.

Impairment on property, equipment and software in the third quarter of 2024 was US$6.5 million, compared to US$0.8 million in the second quarter of 2024 and US$5.7 million in the same period of 2023. The sequential and year-over-year increases were mainly due to the increased impairment for some A13 series of mining rigs deployed as a result of increased Bitcoin mining difficulty post-halving.

Loss from operations in the third quarter of 2024 was US$56.8 million, compared to US$46.6 million in the second quarter of 2024 and US$112.8 million in the same period of 2023.

Excess of fair value of Series A Convertible Preferred Shares in the third quarter of 2024 was US$28.3 million, compared to nil in the second quarter of 2024 and nil in the same period of 2023. For further information, please refer to “Preferred Shares Financing” in this press release.

Foreign exchange losses, net in the third quarter of 2024 were US$1.0 million, compared with a gain of US$11.4 million in the second quarter of 2024 and a gain of US$10.9 million in the same period of 2023, respectively. The foreign exchange losses were due to the U.S. dollar depreciation against the Renminbi during the third quarter of 2024.

Net loss in the third quarter of 2024 was US$75.6 million, compared to US$41.9 million in the second quarter of 2024 and US$80.1 million in the same period of 2023.

Non-GAAP adjusted EBITDA in the third quarter of 2024 was a loss of US$34.1 million, as compared to a loss of US$30.6 million in the second quarter of 2024 and a loss of US$68.0 million in the same period of 2023. For further information, please refer to “Use of Non-GAAP Financial Measures” in this press release.

Foreign currency translation adjustment, net of nil tax, in the third quarter of 2024 was a gain of US$5.1 million, compared with a loss of US$4.0 million in the second quarter of 2024 and a gain of US$7.7 million in the same period of 2023, respectively.

Basic and diluted net loss per American depositary share (“ADS”) in the third quarter of 2024 were US$0.27. In comparison, basic and diluted net loss per ADS in the second quarter of 2024 were US$0.15, while basic and diluted net loss per ADS in the same period of 2023 were US$0.47. Each ADS represents 15 of the Company’s Class A ordinary shares.

As of September 30, 2024, the Company held Cryptocurrency assets with a fair value of US$32.6 million and Cryptocurrency receivable with a fair value of US$46.4 million. Cryptocurrency assets primarily consist of 482 bitcoins owned by the Company and 19.3 bitcoins received as customer deposits. Cryptocurrency receivable consists of 600 bitcoins pledged for secured term loans, 100 bitcoins transferred to fixed term product, and 30 bitcoins prepaid for professional services. As of September 30, 2024, the Company held a total of 1,231.3 bitcoins.

Total change in fair value of cryptocurrency assets and cryptocurrency receivable in the third quarter of 2024 was an unrealized gain of US$2.5 million, compared to an unrealized loss of US$9.8 million in the second quarter of 2024. The change in fair value of cryptocurrency assets was recorded in Change in fair value of cryptocurrency as a loss of US$1.7 million, and the change in fair value of cryptocurrency receivable was recorded in Other income (net) as a gain of US$4.2 million.

As of September 30, 2024, the Company had cash of US$71.8 million, compared to US$96.2 million as of December 31, 2023.

Accounts receivable, net as of September 30, 2024, was US$1.4 million, compared to US$3.0 million as of December 31, 2023. Accounts receivable was mainly due to an installment policy implemented for some major customers who meet certain conditions.

Contract liabilities as of September 30, 2024, were US$16.2 million, compared to US$19.6 million as of December 31, 2023.

Shares Outstanding

As of September 30, 2024, the Company had a total of 273,741,843 ADSs outstanding, each representing 15 of the Company’s Class A ordinary shares.

Recent Developments

Expanded Mining Operation Footprint in Texas and Pennsylvania

On November 15, 2024, the Company’s wholly-owned subsidiary, Beet Digital LLC., entered into a strategic joint mining agreement with Luna Squares Texas LLC (“LS Texas”), a West Texas Bitcoin mining firm, to collaborate on mining activities at LS Texas’ mining site. Based on current estimated configurations, Canaan will install approximately 3,480 Avalon A14 series mining machines with an average hash rate of 150 Thash/s and 5,664 Avalon A15 series mining machines with an average hash rate of 194 Thash/s at LS Texas’ 30 MW site located in Willow Wells, Texas. The site is expected to be energized by the first quarter of 2025. After the site is fully energized, this project will provide approximately 1.62 EH/s of computing power.

Additionally, Cantaloupe Digital LLC (“Cantaloupe”), a wholly owned subsidiary of Canaan, recently amended its hosting agreement with Stronghold Digital Mining Hosting, LLC, an affiliate of Stronghold Digital Mining, Inc. (“Stronghold”) and will deliver 4,000 Avalon A14 series mining machines, each with an average hash rate of 150 Thash/s, to replace older Avalon models at Stronghold’s Panther Creek facility. In October, Cantaloupe completed the replacement of 2,000 older-generation units with A14 series machines. The Company anticipates that these 4,000 A14 units will be fully operational by December 31, 2024, resulting in a total of 6,000 A14 series machines at Panther Creek, Pennsylvania, with a combined computing power of 0.9 Exahash/s.

Secured Order from New Customer CleanSpark for 3,800 Avalon A1566I Miners

On November 1, 2024, Canaan U.S. Inc., a wholly owned subsidiary of the Company, entered into a purchase agreement with a new customer, CleanSpark Inc., for its Avalon A1566I miners.

According to the purchase agreement, Canaan U.S. Inc. will provide CleanSpark with 3,800 Avalon A1566I Immersion Cooling Miners. The miners, with an average computing power of 249 Thash/s without overclocking, are scheduled to be delivered in the fourth quarter of 2024.

Secured Large Orders from HIVE for 11,500 units of Avalon A1566 Miners

On November 11, 2024, Canaan Creative Global Pte. Ltd. (“CCG”), a wholly owned Singapore subsidiary of the Company, entered into a purchase agreement with HIVE Digital Technologies Ltd (“HIVE”).

According to the purchase agreement, CCG will provide HIVE with 6,500 Avalon A1566 miners, with an average computing power of 185 Thash/s. Of the 6,500 A1566 miners, 500 miners have been immediately delivered and are scheduled for installation. The remaining 6,000 machines will be delivered in four monthly shipments of 1,500 units, from December 2024 through March 2025.

On November 20, 2024, CCG entered into a follow-on order purchase agreement with HIVE.

According to the follow-on purchase agreement, CCG will provide HIVE with 5,000 Avalon A15 series miners, with an average computing power of 194 Thash/s, expected to be delivered in the first quarter of 2025.

Preferred Shares Financing

On November 27, 2023, the Company entered into a Securities Purchase Agreement with an institutional investor (the “Buyer”), pursuant to which the Company agreed to issue and sell to the Buyer up to 125,000 Series A Convertible Preferred Shares (the “Series A Preferred Shares”) at the price of US$1,000.00 for each Series A Preferred Share.

On December 11, 2023, the Company closed the first tranche of the preferred shares financing (the “First Tranche Preferred Shares Financing”) and was obligated to issue the second tranche of the preferred shares financing (the “Forward Purchase Liabilities”), raising total net proceeds of US$25.4 million. Pursuant to the First Tranches Preferred Shares Financing, the Company issued 25,000 Preferred Shares in total at the price of US$1,000.00 per Preferred Share.

In connection with the issuance of the Preferred Shares, the Company caused The Bank of New York Mellon to deliver 8,000,000 ADSs collectively as pre-delivery shares (the “Pre-delivery Shares”), each representing fifteen Class A ordinary shares of the Company, at the price of US$0.00000075 for each ADS. The Pre-delivery Shares shall be returned to the Company at the end of the arrangement and the Company shall pay such Buyer US$0.00000075 for each such Pre-delivery Share. The Pre-delivery Shares are considered a form of stock borrowing facility and were accounted as a share lending arrangement.

On January 22, 2024, the Company closed the second tranche of the preferred shares financing (the “Second Tranche Preferred Shares Financing”), raising total net proceeds of US$49.9 million. Pursuant to the Second Tranche Preferred Shares Financing, the Company issued 50,000 Preferred Shares in total at the price of US$1,000.00 per Preferred Share and caused The Bank of New York Mellon to deliver an additional 2,800,000 ADSs collectively as pre-delivery shares (the “Pre-delivery Shares”), each representing fifteen Class A ordinary shares of the Company, at the price of US$0.00000075 for each ADS.

The Company intends to use the net proceeds from the First Tranche and Second Tranche Preferred Shares for the expansion of wafer procurement, R&D activities, and other general corporate purposes.

On September 27, 2024, the Company closed the third and final tranche of Series A preferred shares financing (the “Third Tranche Closing”), raising total net proceeds of US$50.0 million. Pursuant to the Third Tranche Closing, the Company issued 50,000 Series A Preferred Shares in total at the price of US$1,000.00 per Series A Preferred Share.

The Company will use the proceeds from the Third Tranche Closing to manufacture or invest in digital mining sites and equipment to be deployed or sold in North America, including any acquisition or disposition of assets from or between subsidiaries.

Pursuant to the Global Amendment in connection with the Third Tranche Closing, the Buyer agreed to return to the Company 2,800,000 ADSs of the Pre-Delivery Shares delivered to the Buyer in the first tranche and the second tranche Series A preferred shares financing. The Company acknowledged that 1,345,203 ADSs of 2,800,000 ADSs of the Pre-Delivery Shares being returned to the Company would be returned in the form of 20,178,045 restricted class A ordinary shares. The Company will have no obligation to issue any Pre-Delivery Shares to the Buyer in connection with the Third Tranche Closing. As of the date of the Company’s third quarter 2024 earnings release, the Company has paid to the Buyer repurchase price of US$2.10 and cancelled 20,178,045 restricted class A ordinary shares repurchased.

As of the date of the Company’s earnings release for the third quarter of 2024, the Company has 4,223,697,753 Class A ordinary shares, 311,624,444 Class B ordinary shares, and 50,000 Series A Preferred Shares issued and outstanding. The increase in the outstanding Class A ordinary shares compared to the end of 2023 was due to the conversion from part of the Series A Preferred Shares to Class A ordinary shares by the Buyer and the issuance of the Pre-delivery Shares.

Execution of a Securities Purchase Agreement for Series A-1 Convertible Preferred Shares

On November 19, 2024, the Company entered into a securities purchase agreement (the “Series A-1 Securities Purchase Agreement”) with an institutional investor (the “Buyer”), pursuant to which the Company shall issue and sell to the Buyer up to 30,000 Convertible Series A-1 Preferred Shares (the “Series A-1 Preferred Shares”) at the price of US$1,000.00 for each Series A-1 Preferred Share. The closing of the sale of the Series A-1 Preferred Shares under the Series A-1 Securities Purchase Agreement is conditioned upon general customary closing conditions.

The Company agreed that the proceeds from the sale of the Series A-1 Preferred Shares will be used by the Company and/or its subsidiaries to manufacture or invest in digital mining sites and equipment to be deployed or sold in North America, including any acquisition or disposition of assets from or between subsidiaries.

Bitcoin Fixed Term Product

During the third quarter of 2024, the Company transferred 100 Bitcoins for fixed term product with an annual percentage rate of return (the “APR”) of 1.5% for 30 calendar days. As of the date of this earnings release, the fixed term product has matured, and total principal and interest of 100.12 Bitcoins have been transferred for open term product with an APR of 1% per annum.

Secured Term Loans

During the third quarter of 2024, the Company pledged 70 Bitcoins for secured term loans with an aggregate carrying value of US$2.0 million for 18 months. The secured term loans enable additional liquidity for the production expansion and operations of the Company.

Business Outlook

For the fourth quarter of 2024, the Company expects total revenues to be approximately US$80 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Conference Call Information

The Company’s management team will hold a conference call at 8:00 A.M. U.S. Eastern Time on November 20, 2024 (or 9:00 P.M. Singapore Time on the same day) to discuss the financial results. Details for the conference call are as follows:

Event Title: Canaan Inc. Third Quarter 2024 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BI93fff71a1b6d462d915c62d639a733cf

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.

A live and archived webcast of the conference call will be available at the Company’s investor relations website at investor.canaan-creative.com.

About Canaan Inc.

Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan’s founding team shipped to its customers the world’s first batch of mining machines incorporating ASIC technology in bitcoin‘s history under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan, please visit https://www.canaan.io/.

Safe Harbor Statement

This announcement contains forward−looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan Inc.’s strategic and operational plans, contain forward−looking statements. Canaan Inc. may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.’s beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition and results of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company’s expectations regarding demand for and market acceptance of its products, especially its bitcoin mining machines; the Company’s expectations regarding maintaining and strengthening its relationships with production partners and customers; the Company’s investment plans and strategies, fluctuations in the Company’s quarterly operating results; competition in its industry; and relevant government policies and regulations relating to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan Inc. does not undertake any obligation to update any forward−looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

In evaluating Canaan’s business, the Company uses non-GAAP measures, such as adjusted EBITDA, as supplemental measures to review and assess its operating performance. The Company defines adjusted EBITDA as net loss excluding income tax expenses (benefit), interest income, depreciation and amortization expenses, share-based compensation expenses, impairment on property, equipment and software, change in fair value of financial instruments and excess of fair value of Series A Convertible Preferred Shares. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools and investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. One of the key limitations of using adjusted EBITDA is that it does not reflect all of the items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

Investor Relations Contact

Canaan Inc.
Xi Zhang
Email: IR@canaan-creative.com

ICR, LLC.
Robin Yang
Tel: +1 (347) 396-3281
Email: canaan.ir@icrinc.com

CANAAN INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands, except share and per share data, or as otherwise noted)

As of December 31,

As of September 30,

2023

2024

USD

ASSETS

Current assets:

Cash

96,154

71,782

Accounts receivable, net

2,997

1,375

Cryptocurrency receivable, current

–

8,261

Inventories

142,287

87,802

Prepayments and other current assets

122,242

138,273

Total current assets

363,680

307,493

Non-current assets:

Cryptocurrency

28,342

32,632

Cryptocurrency receivable, non-current

–

38,127

Property, equipment and software, net

29,466

40,153

Intangible asset

–

954

Operating lease right-of-use assets

1,690

3,363

Deferred tax assets

66,809

76,088

Other non-current assets

486

472

Non-current financial investment

2,824

2,854

Total non-current assets

129,617

194,643

Total assets

493,297

502,136

LIABILITIES, AND
SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

6,245

16,735

Contract liabilities

19,614

16,238

Income tax payable

3,534

3,535

Accrued liabilities and other current

liabilities

64,240

36,178

Operating lease liabilities, current

1,216

1,407

Preferred Shares forward contract
liability

40,344

–

Series A Convertible Preferred Shares

–

77,104

Total current liabilities

135,193

151,197

Non-current liabilities:

Long-term loans

–

23,963

Lease liabilities, non-current

210

1,636

Deferred tax liability

–

162

Other non-current liabilities

9,707

9,372

Total liabilities

145,110

186,330

Shareholders’ equity:

Ordinary shares (US$0.00000005 par
value; 999,999,875,000 shares
authorized, 3,772,078,667 and
4,555,500,242 shares issued,
3,514,973,327 and 4,324,281,437 shares
outstanding as of December 31, 2023
and September 30, 2024, respectively)

–

Treasury stocks (US$0.00000005 par
value; 257,105,340 shares as of
December 31, 2023 and 231,218,805
shares as of September 30, 2024,
respectively)

(57,055)

Additional paid-in capital

653,860

763,293

Statutory reserves

14,892

Accumulated other comprehensive loss

(43,879)

(47,736)

Accumulated deficit

(219,631)

(357,588)

Total shareholders’ equity

348,187

315,806

Total liabilities and shareholders’ equity

493,297

502,136

CANAAN INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS

(all amounts in thousands of USD, except share and per share data, or as otherwise noted)

For the Three Months Ended

September 30,

2023

June 30,

2024

September 30,

2024

USD

Revenues

Products revenue

29,937

61,751

64,584

Mining revenue

3,264

9,308

8,959

Other revenues

118

799

Total revenues

33,319

71,858

73,608

Cost of revenues

Product cost

(83,668)

(79,661)

(81,625)

Mining cost

(17,908)

(11,037)

(13,476)

Other cost

(833)

(290)

(18)

Total cost of revenues

(102,409)

(90,988)

(95,119)

Gross loss

(69,090)

(19,130)

(21,511)

Operating expenses:

Research and development expenses

(17,152)

(14,648)

(14,761)

Sales and marketing expenses

(2,491)

(1,578)

(1,719)

General and administrative expenses

(16,223)

(10,445)

(12,392)

Impairment on property, equipment
and software

(5,691)

(798)

(6,462)

Impairment on cryptocurrency

(2,199)

–

Total operating expenses

(43,756)

(27,469)

(35,334)

Loss from operations

(112,846)

(46,599)

(56,845)

Interest income

158

Interest expense

–

(14)

(247)

Change in fair value of
cryptocurrency

–

(5,125)

(1,672)

Change in fair value of financial
instrument

–

(225)

1,243

Excess of fair value of Series A
Convertible Preferred Shares

–

(28,297)

Foreign exchange gains (losses), net

10,890

11,364

(1,036)

Other income (expense), net

1,349

(3,257)

4,408

Loss before income tax expenses

(100,546)

(43,790)

(82,288)

Income tax benefit

20,443

1,910

6,710

Net loss

(80,103)

(41,880)

(75,578)

Foreign currency translation

adjustment, net of nil tax

7,662

(3,999)

5,129

Total comprehensive loss

(72,441)

(45,879)

(70,449)

Weighted average number of
shares used in per class A and Class
B ordinary share calculation:

— Basic

2,562,542,847

4,117,791,601

4,163,053,834

— Diluted

2,562,542,847

4,117,791,601

4,163,053,834

Net loss per class A and Class B
ordinary share (cent per share)

— Basic

(3.13)

(1.02)

(1.82)

— Diluted

(3.13)

(1.02)

(1.82)

Share-based compensation expenses

were included in:

Cost of revenues

Research and development expenses

2,411

1,702

1,882

Sales and marketing expenses

General and administrative expenses

7,176

4,750

4,694

The table below sets forth a reconciliation of net loss to Non-GAAP adjusted EBITDA for the period indicated:

For the Three Months Ended

September 30,

2023

June 30,
2024

September 30,

2024

USD

Net loss

(80,103)

(41,880)

(75,578)

Income tax benefit

(20,443)

(1,910)

(6,710)

Interest income

(61)

(66)

(158)

Interest expense

247

EBIT

(100,607)

(43,842)

(82,199)

Depreciation and amortization expenses

17,166

5,650

7,855

EBITDA

(83,441)

(38,192)

(74,344)

Share-based compensation expenses

9,740

6,524

6,684

Impairment on property, equipment and
software

5,691

798

6,462

Change in fair value of financial
instruments

–

225

(1,243)

Excess of fair value of Series A
Convertible Preferred Shares

–

28,297

Non-GAAP adjusted EBITDA

(68,010)

(30,645)

(34,144)

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SOURCE Canaan Inc.

Technology

Reach Showcases Full-Stack Product Portfolio for AI Vehicle Intelligent Evolution at Auto China 2026

Published

7 hours ago

May 1, 2026

BEIJING, April 30, 2026 /PRNewswire/ — At Auto China 2026, Reach officially unveiled its full-stack product portfolio designed to accelerate the intelligent evolution of AI vehicles. Industry leaders and experts, along with executives and representatives from Honda, Toyota, FAW, Geely, GAC, Dongfeng Voyah, FAW Jiefang, BMW, Volkswagen CARIAD, Chery, Nissan, Mazda, Hitachi Astemo, Bosch, UAES, ZTE Microelectronics and other global OEMs and industry partners, visited the booth for in-depth discussions on the future of AI-powered mobility and intelligent vehicle evolution.

At the show, Reach demonstrated how AI vehicles are moving from “responding to commands” to “understanding intent and proactively serving users.” Human-vehicle interaction is evolving from isolated smart functions to integrated intelligent experiences, creating a new vision for future mobility.

Supporting this transformation is Reach’s full-stack portfolio covering five key areas: AI Vehicle Neural Foundation, Emotional Cognition, Intelligent Driving Brain, Vehicle-Cloud Computational Brain, and Energy Heart.

At the core is NeuSAR OS, the digital foundation for AI vehicles. Backed by over 10 million production deployments, it provides secure, reliable, and scalable support for AI applications, enabling unified management of vehicle-wide capabilities, cross-domain resources, and AI Agents while improving development efficiency by 30%–50%.

Cloud OS introduces a vehicle-cloud collaborative computing architecture that allows flexible scheduling between onboard small models and cloud-based large models, reducing hardware dependency and optimizing computing costs.

For intelligent driving, Reach’s full-stack AI solution and fifth-generation architecture NeuAUTO support faster mass production across passenger and commercial vehicles through unified software architecture and end-to-end AI models.

Reach AI Data-driven EV power system enables proactive battery health management and energy optimization. It also introduced AI-powered automated testing systems to improve testing efficiency and coverage.

Reach also launched its lifecycle-wide AI Agent solution, built on a full-domain data platform and intelligent systems for planning, after-sales, and operations, it supports product planning, price forecasting, safety monitoring, and customer operations across the full vehicle lifecycle.

As AI vehicles evolve toward full-system intelligence, system-level capability building and ecosystem collaboration are becoming the key to competitiveness. Reach is collaborating with global OEMs, Tier 1 suppliers, and semiconductor partners to accelerate large-scale industrial deployment.

Looking ahead, Reach continues advancing its full-stack portfolio through stronger innovation and deeper ecosystem collaboration, enabling vehicles evolve into true intelligent agents and delivering smarter, safer, and more trusted mobility experiences worldwide.

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SOURCE Reach

Technology

Hydreight Reports Record Fiscal 2025 Results as VSDHOne Drives Rapid Growth and Platform Scale

Published

7 hours ago

May 1, 2026

Achieves profitability, scales to 11,000+ platform licenses, and strengthens balance sheet with $15.7M in cash

VANCOUVER, BC and LAS VEGAS, April 30, 2026 /PRNewswire/ – Hydreight Technologies Inc. (“Hydreight” or the “Company”) (TSXV: NURS) (OTCQB: HYDTF) (FSE: SO6), a U.S.-focused digital health infrastructure platform, is pleased to report its audited financial results for the year ended December 31, 2025. All figures are in Canadian dollars unless otherwise stated. All references to Non-GAAP Financial Measures1 2 are as reported in the Company’s amended and restated Management Discussion and Analysis dated April 30, 2026 (“MD&A”).

Revenue reached $35.4M in 2025, with $43.6M in Adjusted Revenue1 (non-GAAP) and $2.5M in Adjusted EBITDA2 (non-GAAP), reflecting strong growth and improving operating leverage.

The Company achieved net income of $1.69M and continued to scale its platform, driven by accelerating adoption of VSDHOne and expanding transaction volumes across its national healthcare network.

FULL YEAR 2025 HIGHLIGHTS

All comparisons below are to the year ended December 31, 2024, unless otherwise noted.

Revenue: $35.4M vs. $16.04M (+121% YoY)Adjusted Revenue:(1) $43.56M vs. $22.32M (+95% YoY)Adjusted EBITDA:(2) $2.5M vs. $136K (+1,765% YoY)Rising Operating Leverage: OPEX as a % of revenue fell from 38% to 22%2025 Year-end Cash Position: $15.65M vs. $1.19M (strong balance sheet improvement)Positive Adjusted EBITDA2 across the year, reflecting improving operating leverageOver 11,000 licenses signed across the VSDHOne platform, which the Company believes demonstrates strong demand and accelerating adoption

4th QUARTER 2025 HIGHLIGHTS

All comparisons below are to the quarter ended December 31, 2024, unless otherwise noted

Revenue: $14.95M vs. $4.04M (+270% YoY)Adjusted Revenue:(1) $16.85M vs. $5.74M (+193% YoY)Adjusted EBITDA:(2) $1.58M vs. ($0.1M)Rising Operating Leverage: OPEX as a % of revenue fell to 15% in Q4 2025, versus 34% in Q4 2024

The Company believes the following Non-GAAP financial measures provide meaningful insight to its shareholders in understanding the Company’s performance and may assist in the evaluation of the Company’s business relative to that of its peers.

Notes:

(1) “Adjusted Revenue” is a non-GAAP financial measure, and the figures reflect gross economic activity processed through the Company’s platform and should not be considered revenue recognized under IFRS. See “Non-GAAP Financial Measures” section below for definition.

(2) “Adjusted EBITDA” is a non-GAAP financial measure and reflects EBITDA plus additions for atypical and non-recurring charges. See “Non-GAAP Financial Measures” section below for definition.

The following table is included to provide a reconciliation of the Company’s non-GAAP financial measures to the most directly comparable IFRS measures and to enhance the comparability and transparency of the Company’s financial performance for investors.

Three months ended December 31,

Twelve months ended December 31,

2025

2024

%
change

2025

2024

%
change

Adjusted Revenue

$ 16,853,102

$ 5,742,523

193 %

$ 43,563,753

$ 22,321,265

95 %

Deduct – deferred business partner contract
revenue

(313,878)

208,436

425,945

(45,317)

Deduct – business partner payouts on app
service gross revenue

2,218,121

1,493,509

7,752,770

6,321,866

GAAP Revenue

$ 14,948,859

$ 4,040,578

270 %

$ 35,385,038

$ 16,044,716

121 %

Adjusted Gross Margin

$ 2,924,341

$ 1,580,387

85 %

$ 9,429,151

$ 5,650,936

67 %

Deduct – deferred business partner contract
revenue

(313,878)

208,436

425,945

(45,317)

GAAP Gross Margin

$ 3,238,219

$ 1,371,951

136 %

$ 9,003,206

$ 5,696,253

58 %

Adjusted EBITDA

$ 1,577,760

$ (83,191)

$ 2,542,895

$ 136,334

1765 %

Deduct – amortization and depreciation

127,982

62,853

452,772

181,136

Deduct – share-based payments

8,843

87,889

82,385

614,877

Deduct – interest and accretion

452,209

–

586,354

–

Deduct – sales tax provision, net cash paid

252,603

(254,510)

252,603

(254,510)

Deduct – impairment charge

54,814

–

54,814

–

Deduct – income tax expense

(119,249)

–

(119,249)

–

Deduct – deferred tax recovery

699,586

–

699,586

–

GAAP Net Income (Loss)

$ 1,261,646

$ 20,577

6031 %

$ 1,694,304

$ (405,169)

518 %

Shane Madden, CEO of Hydreight, commented:

“2025 was a defining year for Hydreight. We transitioned from a growing platform into a scaled healthcare infrastructure business, with strong revenue growth and sustained profitability.

The acceleration we saw in the second half of the year was driven largely by the rollout of VSDHOne, which is now becoming a meaningful contributor to both revenue and long-term scalability.

As we move into 2026, our focus is on expanding our partner network, increasing transaction volume across the platform, and continuing to grow our compliant healthcare infrastructures in the United States.”

BUSINESS PERFORMANCE & DRIVERS

VSDHOne – Core Growth Engine

The Company’s VSDHOne platform, launched in 2025, was a primary driver of growth, contributing to:

Rapid onboarding of new partnersExpansion of direct-to-consumer healthcare brandsIncreased transaction volume across telehealth and pharmacy services

Revenue growth in 2025 was primarily driven by VSDHOne-related activity, combined with continued organic growth across existing partners.

The platform ramped significantly through the second half of the year, with Q4 alone contributing $14.9M in revenue, representing approximately 270% growth compared to the same period in 2024. This acceleration reflects strong demand from partners seeking compliant, turnkey solutions and demonstrates the Company’s ability to scale transaction volume efficiently across its infrastructure.

OPERATING METRICS & VOLUME GROWTH

Operational performance across the Company’s core verticals continued to strengthen throughout 2025.

The Company’s first two verticals continued their historical growth in 2025, supported by alignment with broader market trends and the introduction of direct-to-consumer products and services through Hydreight’s proprietary platform structure.

Completed Services revenue in Q4 2025 for the first vertical increased by approximately 44% compared to the same period in 2024Completed Services revenue for the first vertical in 2025 increased by approximately 17% compared to 2024New nurse sign-ups increased by approximately 45% in 2025 compared to 2024

These metrics reflect continued growth in the Company’s core service offerings, expansion of its provider network, and increasing utilization across the platform.

PLATFORM SCALE & NETWORK EFFECTS

Hydreight continues to expand its position as a leading healthcare infrastructure platform:

11,000+ licenses signed across VSDHOneNational footprint across all 50 U.S. statesNetwork of healthcare providers, pharmacies, and partners

The Company believes that this scale reflects growing demand from businesses seeking compliant, turnkey solutions to enter and expand within the U.S. healthcare market.

MULTI-VERTICAL REVENUE MODEL

Hydreight generates revenue across three primary streams:

Business partner subscription contractsTelehealth consultation and platform commissionsPharmacy sales

Growth was supported by:

Expansion of product offerings (GLP-1s, peptides, NAD, TRT, and more)Increased partner utilizationBroader adoption across wellness verticals

PROFITABILITY & OPERATING LEVERAGE

Hydreight achieved strong improvements in Adjusted EBITDA, a non-GAAP measure:

Adjusted EBITDA: $2.5M in 2025 vs. $0.14M in 2024 (+1,765% YoY)Net income (loss): $1.69M in 2025 vs. $(0.41)M in 2024

Performance strengthened meaningfully in the fourth quarter, reflecting the scaling of the platform in the second half of the year.

Q4 Adjusted EBITDA: $1.58M vs. ($0.10M) in Q4 2024

This reflects:

Platform scalabilityRevenue growth outpacing cost increasesImproved operational efficiency

This improvement reflects the operating leverage inherent in the Company’s platform model and was not solely a function of higher revenue. As transaction volumes scaled across VSDHOne, incremental revenue flowed through at higher margins, supported by a largely fixed regulatory, pharmacy, and technology infrastructure. As a result, revenue growth outpaced cost growth, driving improved profitability and demonstrating the scalability of the Company’s platform.

¹ See “Non-GAAP Financial Measures and Reconciliation”.

BALANCE SHEET & LIQUIDITY

Cash: $15.65M (vs. $1.2M in 2024)Working Capital: ~$15.7M (vs. deficiency of $2.5M in 2024)Strong capital position to support ongoing operations

The Company also completed a $15M financing in January 2026, subsequent to year‑end, further strengthening its ability to scale operations and pursue strategic initiatives.

Including the $15M financing completed in January 2026, the Company has access to over $30.7M in capital to support growth initiatives.

Please see SEDAR+ for the Company’s consolidated audited financial statements and MD&A for the year ended December 31, 2025.

STRATEGIC INITIATIVES & MILESTONES

Hydreight continues to expand its platform through strategic initiatives and partnerships.

During 2025, the Company:

Strengthened its vertically integrated healthcare infrastructureExpanded its national pharmacy networkInvested in next-generation platform capabilities (VSDHOne 2.0)Established strategic relationships to enhance product innovation and distribution

In 2026, Hydreight further expanded its strategic initiatives through an investment in Insu Therapeutics, a company focused on developing innovative delivery mechanisms for peptide-based therapies. This aligns with Hydreight’s long-term strategy of supporting next-generation treatments across its platform.

OUTLOOK

Hydreight is entering 2026 with strong momentum, supported by:

Continued onboarding of new partnersIncreasing transaction volumes across VSDHOneRecent capital deployment initiativesExpansion into new healthcare verticals

As of the end of Q1 2026, VSDHOne has surpassed 12,000 licenses sold, reflecting continued momentum in platform adoption.

Management remains focused on scaling the platform while maintaining disciplined growth and operational efficiency.

“We look forward to discussing these results in more detail on our upcoming earnings call.” -Shane Madden

ANNUAL FILINGS

The Company’s audited annual financial statements for the year ended December 31, 2025, and the associated MD&A, including a full discussion of non-GAAP financial measures and their reconciliation to IFRS measures, have been filed on SEDAR+ at www.sedarplus.ca and are available on the Company’s issuer profile. Readers are encouraged to review the complete financial statements and MD&A in conjunction with this press release. The Company refiled its MD&A to correct a typographical error in the calculation of Adjusted EBITDA. No other changes have been made.

UPCOMING EARNINGS CALL

Hydreight Technologies will host a live earnings call to discuss its Q4 and full-year 2025 financial results, provide a business update, and outline the Company’s strategic priorities heading into 2026.

Date & Time: Friday, May 1, 2026 at 9:00am – 10:00pm EST

Registration Link: https://hydreight.zoom.us/webinar/register/WN_vP-U6hAiRf2Ejg8muQcocQ

The call will include a formal presentation followed by a live Q&A session. Investors are encouraged to attend to gain deeper insight into Hydreight’s growth strategy and platform expansion.

Clarification on Engagement of GRA Enterprises

Further to the Company’s news release early last year dated February 27, 2025, the Company wishes to clarify that its prior 3-month engagement of GRA Enterprises LLC (doing business as National Inflation Association) (“GRA”) was not renewed and as such was terminated effective May 27, 2025.

Under the engagement, the Company paid GRA an aggregate fee of USD $30,000 in cash pursuant to the GRA Engagement. The fee was paid from general working capital at the commencement of the engagement. No securities, stock options, or other equity-based compensation were issued or granted in connection with the engagement.

The engagement was conducted at arm’s length and has been fully concluded, with no ongoing obligations or amounts payable by the Company. To the Company’s knowledge, neither GRA nor its principal, Gerard Adams, holds any direct or indirect interest in the Company or its securities, nor any right to acquire such an interest.

On behalf of the Board of Directors

Shane Madden
Director and Chief Executive Officer
Hydreight Technologies Inc.

Hydreight Technologies Inc Ranked Number 56 Fastest-Growing Company in North America on the 2024 Deloitte Technology Fast 500™

Hydreight Technologies Recognized as a Top 50 TSX Venture Exchange Company

About Hydreight Technologies Inc.
Hydreight Technologies Inc is building one of the largest mobile clinic networks in the United States. Its proprietary, fully integrated platform has hosted a network of over 3000 nurses, over 300 doctors and a pharmacy network through its Doctor networks across 50 states. The platform includes a built-in, easy-to-use suite of fully integrated tools for accounting, documentation, sales, inventory, booking, and managing patient data, which enables licensed healthcare professionals to provide services directly to patients at home, office or hotel. Hydreight is bridging the gap between provider compliance and patient convenience, empowering nurses, med spa technicians, and other licensed healthcare professionals. The Hydreight platform allows healthcare professionals to deliver services independently, on their own terms, or to add mobile services to existing location-based operations. Hydreight has a 503B pharmacy network servicing all 50 states and is closely affiliated with a U.S. certified e-script and telemedicine provider network.

About VSDHOne – Direct to Consumer Platform
Developed in partnership with Victory Square Technologies (CSE: VST) (OTC: VSQTF) (FWB: 6F6), Hydreight Technologies launched the VSDHOne platform. VSDHOne simplifies the entry challenges for companies and medi-spa businesses to enter the online healthcare space compliantly. This platform is expected to help businesses launch direct-to-consumer healthcare brand in a matter of days in all 50 states. Compliant offerings include: GLP-1s, peptides, personalized healthcare treatments, sermorelin, testosterone replacement therapy (“TRT”), hair loss, skincare, sexual health and more. Hydreight invested in technology, legal and infrastructure to launch this platform. The VSDHOne platform offers a complete, and modular end-to-end solution for businesses looking to launch direct-to-consumer healthcare brands. From compliance and telemedicine technology to nationwide doctor and pharmacy networks, VSDHOne provides all the tools needed for a seamless entry into the online healthcare space. The platform is designed to significantly reduce the time and costs associated with launching such services, making it possible for businesses to go live in days instead of months.

Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Use of Non-GAAP Financial Measures:
The Company uses certain non-GAAP financial measures to assess its operating performance, and this press release contains non-GAAP financial measures, including “Adjusted Revenue” and “Adjusted EBITDA”. These measures are not recognized under International Financial Reporting Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS or GAAP.

The Company defines Adjusted Revenue as gross cash income before adjustment for the deferred portion of business partner contract revenue and gross receipts from Hydreight App service sales. The Company defines Adjusted Gross Margin as GAAP gross margin plus inventory impairment plus the deferred portion of business partner contract revenue. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization and before (i) transaction, restructuring, and integration costs (ii) share-based payments expense, (iii) gains/losses that are not reflective of ongoing operating performance including inventory impairment and (iv) sales tax provision, net of actual cash payments to state tax authorities.

Adjusted Revenue reflects the gross economic activity processed through the Company’s platform during the applicable period and may differ materially from revenue recognized under IFRS, which is based on revenue recognition and deferral requirements. Adjusted Revenue is not a measure of financial performance or profitability and should not be considered a substitute for revenue determined in accordance with IFRS. As used, Adjusted Revenue accelerates cash receipts relative to IFRS revenue recognition. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with IFRS.

The Company believes that these non‑GAAP measures provide information useful to investors in understanding historical operating trends and the scale of the Company’s platform relative to its peers but does not intend for such measures to represent future performance. This data is furnished to provide additional information and does not have any standardized meaning prescribed by IFRS. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of other metrics presented in accordance with IFRS.

Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding expectations for the Company’s 2026 strategic outlook, growth, platform scaling initiatives, and anticipated expansion of VSDHOne and other platform offerings.

Forward‑looking information is based on management’s expectations, estimates and assumptions as of the date hereof, including assumptions regarding: continued partner adoption, stable regulatory regimes applicable to telehealth and pharmacy operations in the United States, availability of capital, and general economic conditions.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflects the Company’s management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company.

Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to obtain requisite regulatory and other approvals with respect to the business operated by the Company and/or the potential impact of the listing of the Company’s shares on the TSXV on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time as a result of being a publicly listed entity. This forward-looking information may be affected by risks and uncertainties in the business of the Company and market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

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SOURCE Hydreight Technologies Inc.

Technology

Scaled Commercial Breakthrough: OMODA & JAECOO AiMOGA Robotics Secures 1,000 Robot Orders, Boosting Smart City Deployment Step by Step

Published

7 hours ago

May 1, 2026

KUALA LUMPUR, Malaysia and WUHU, China, May 1, 2026 /PRNewswire/ — In response to steady advancement of smart city construction and the actual demand for efficient, low-cost urban public service equipment, OMODA & JAECOO officially launched the full-scale commercial layout of AiMOGA Robotics at the 2026 Chery International Business Summit in Wuhu. Centering on the theme “Driven by Scenarios, United for Growth”, the event witnessed a key industrial breakthrough: AiMOGA Intelligent Police Robots secured 1,000 intentional signing orders and completed an official concentrated delivery of 100 units, laying a solid foundation for orderly large-scale promotion and practical scenario operation in urban roads, traffic hubs and daily public governance links.

Jointly developed by OMODA & JAECOO and the professional AiMOGA technical team, the robotic product lineup covers humanoid robots, quadruped robots and core intelligent patrol robots. Drawing on the brand’s mature intelligent vehicle underlying technologies in perception, planning and control, the equipment retains high operational stability. It can well adapt to daily road conditions and climatic environments, independently completing core practical tasks such as real-time traffic guidance, illegal parking identification and fixed-route auxiliary patrols, effectively assisting local frontline staff and optimizing urban refined management efficiency.

Chery Group pointed out that intelligent vehicles and robots share core technological homology, and the batch signing and delivery officially means AiMOGA enters the stage of large-scale standardized commercialization. The products have been iteratively optimized in more than 100 real scenarios across 50 countries including Malaysia, with reliable performance that meets local application standards. Relying on supporting facilities such as university talent cooperation projects, 31 innovation laboratories and a special robot leasing platform launched at the conference, OMODA & JAECOO will steadily improve local supporting service capabilities. The brand will rely on its global channel advantages to accelerate the localized landing of embodied intelligent equipment, pragmatically empower the steady development of smart urban governance industry, and jointly build a complete regional intelligent service ecology with local partners.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/scaled-commercial-breakthrough-omoda–jaecoo-aimoga-robotics-secures-1-000-robot-orders-boosting-smart-city-deployment-step-by-step-302758705.html

SOURCE OMODA & JAECOO