Technology
Canaan Inc. Reports Unaudited Fourth Quarter and Full Year 2024 Financial Results
Published
2 years agoon
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Total revenues of US$88.8 million exceeds guidance, up 80.9% YoY
Total computing power sold achieves record high of 9.1 million TH/s, up 65.9% YoY
Bitcoin mining revenues reach US$15.3 million, up 312.5% YoY
SINGAPORE, March 26, 2025 /PRNewswire/ — Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), an innovator in crypto mining, today announced its unaudited financial results for the three months and twelve months ended December 31, 2024.
Fourth Quarter 2024 Operating and Financial Highlights
Total revenues were US$88.8 million, which beat the guidance of US$80 million and increased 80.9% year-over-year.
Total computing power sold was 9.1 million Terahash per second (TH/s), representing a year-over-year increase of 65.9%, setting a new high.
Mining revenue was US$15.3 million and increased 312.5% year-over-year, with 186 Bitcoins mined at an average revenue of US$82,174 per Bitcoin.
Net loss was US$92.9 million, compared to US$139.0 million in the same period of 2023.
Non-GAAP adjusted EBITDA was a gain of US$19.3 million, compared to a loss of US$69.4 million in the fourth quarter of 2023.
Full Year 2024 Operating and Financial Highlights
Total revenues were US$269.3 million, representing a year-over-year increase of 27.4% from US$211.5 million in 2023.
Total computing power sold was 26.0 million TH/s, representing a year-over-year increase of 32.6% from 19.6 million TH/s in 2023.
Mining revenue was US$44.0 million, representing a year-over-year increase of 29.6% from US$34.0 million in 2023.
Net loss was US$249.8 million, narrowing 39.7% year-over-year.
Non-GAAP adjusted EBITDA was a loss of US$71.5 million, narrowing 73.9% year-over-year.
Nangeng Zhang, chairman, and chief executive officer of Canaan, commented, “We closed out 2024 on a strong note, delivering robust results in the fourth quarter that exceeded our guidance, with total revenue reaching US$88.8 million. This outstanding top-line performance was primarily driven by the large-scale delivery of our latest A15 series, which contributed to a record-breaking 9.1 million TH/s in total computing power sold. Simultaneously, our mining operations capitalized on the favorable bitcoin price environment in Q4, achieving a remarkable 186 bitcoins mined and generating US$15.3 million in mining revenue, marking a sequential increase of 70.7%. Recently, we further expanded 4.7EH/s for our mining operations in North America through two new projects in Pennsylvania and Texas.
“Looking back on the past year, we remained steadfast in our commitment to delivering high-quality, customized mining solutions, such as our high-performance A15 series and the dual-function Avalon Home Series, catering to a diverse global customer base. In key markets like North America, we strengthened our local presence and established strategic partnerships with leading publicly listed mining companies, enhancing our brand recognition and market share. Despite navigating complex regulatory landscapes and shifting market conditions, we made significant progress in expanding our mining hash rate toward our goal of 10EH/s in North America and 15EH/s globally by mid-2025. Meanwhile, we continued to advance our global strategy across research and development, supply chains, production, and logistics to adapt to the evolving compliance environment. With unwavering confidence in Bitcoin‘s long-term potential, we remain dedicated to innovation, operational excellence, and cementing our role as a key player in the Bitcoin ecosystem.”
Jin “James” Cheng, chief financial officer of Canaan, stated, “We achieved excellent results in Q4, with total revenue significantly surpassing our guidance. This exceptional performance was driven by the ramp-up in A15 series bulk deliveries, leading to products revenue of US$73.5 million, a 63.6% year-over-year increase. Our mining business, which serves as our second growth engine, generated US$15.3 million in revenue, up 312.5% year-over-year and 70.7% quarter-over-quarter, while maintaining a highly competitive all-in power cost. This enabled us to accelerate our bitcoin accumulation through mining by leveraging bitcoin price tailwinds in the fourth quarter. As a result, our owned cryptocurrency reached 1,292.5 bitcoins by year-end, reinforcing our financial position. Additionally, due to strong top-line growth and cost optimization, we significantly narrowed our gross loss to US$6.4 million. Although certain non-cash items hit our bottom line, our net loss of US$92.9 million narrowed 33.2% year-over-year, and we achieved EBITDA breakeven and a gain of US$19.3 million in adjusted EBITDA for the quarter.
“The large-scale production and delivery of the A15 series contributed to our cash inflows and optimized our inventory structure as the model became our primary inventory component. As bitcoin prices climbed in Q4, generating fair value gains, our balance sheet was further strengthened, underscoring the advantages of our mining business and our HODL strategy. Looking ahead, we remain focused on executing advanced product deliveries, expanding our mining hash rate, and capitalizing on the anticipated market momentum to enhance our market presence.”
Fourth Quarter 2024 Financial Results
Total revenues in the fourth quarter of 2024 were US$88.8 million, as compared to US$73.6 million in the third quarter of 2024 and US$49.1 million in the same period of 2023. Total revenues consisted of US$73.5 million in products revenue, US$15.3 million in mining revenue and US$20 thousand in other revenues.
Products revenue in the fourth quarter of 2024 was US$73.5 million, compared to US$64.6 million in the third quarter of 2024 and US$44.9 million in the same period of 2023. The sequential and year-over-year increase were driven by increased computing power sold, which was 9.1 million TH/s, increasing 24.7% sequentially and 65.9% year-over-year.
Mining revenue in the fourth quarter of 2024 was US$15.3 million, representing an increase of 70.7% from US$9.0 million in the third quarter of 2024 and an increase of 312.5% from US$3.7 million in the same period of 2023. The sequential and year-over-year increases were mainly attributable to an increase in mining computing power energized and an increase in the bitcoin price.
Cost of revenues in the fourth quarter of 2024 was US$95.1 million, compared to US$95.1 million in the third quarter of 2024 and US$103.1 million in the same period of 2023.
Products costs in the fourth quarter of 2024 were US$80.2 million, compared to US$81.6 million in the third quarter of 2024 and US$95.8 million in the same period of 2023. The sequential and year-over-year decreases were mainly attributable to decreased inventory write-down and prepayment write-down. The inventory write-down and prepayment write-down for this quarter were US$13.6 million, compared to US$22.9 million for the third quarter of 2024 and US$55.5 million for the same period of 2023. Products costs consist of direct production costs of mining machines, and indirect costs related to production, as well as inventory write-down and prepayment write-down.
Mining costs in the fourth quarter of 2024 were US$14.9 million, compared to US$13.5 million in the third quarter of 2024 and US$6.0 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 and year-over-year increases were mainly due to the increase in deployed computing power for the Company’s mining operations. The depreciation in this quarter for deployed mining machines was US$6.0 million, compared to US$6.5 million in the third quarter of 2024 and US$3.8 million in the same period of 2023.
Gross loss in the fourth quarter of 2024 was US$6.4 million, compared to US$21.5 million in the third quarter of 2024 and US$54.1 million in the same period of 2023.
Total operating expenses in the fourth quarter of 2024 were US$49.3 million, compared to US$35.3 million in the third quarter of 2024 and US$39.2 million in the same period of 2023.
Research and development expenses in the fourth quarter of 2024 were US$16.6 million, compared to US$14.8 million in the third quarter of 2024 and US$10.8 million in the same period of 2023. The sequential increase was mainly due to an increase of US$1.2 million in research and development expenditure and an increase of US$0.8 million in staff cost. The year-over-year increase was mainly due to an increase of US$4.5 million in staff costs and an increase of US$1.3 million in research and development expenditure. Research and development expenses in the fourth quarter of 2024 also included share-based compensation expenses of US$1.8 million.
Sales and marketing expenses in the fourth quarter of 2024 were US$1.3 million, compared to US$1.7 million in the third quarter of 2024 and US$1.8 million in the same period of 2023. The sequential and year-over-year decrease was mainly due to a decrease in staff cost. Sales and marketing expenses in the fourth quarter of 2024 also included share-based compensation expenses of US$45 thousand.
General and administrative expenses in the fourth quarter of 2024 were US$27.8 million, compared to US$13.2 million in the third quarter of 2024 and US$22.2 million in the same period of 2023. The sequential increase was mainly due to an increase of US$4.8 million in professional service fees, an increase of US$3.1 million in staff cost, an increase of US$3.1 million in share-based compensation expenses and an increase of US$3.0 million in allowance of doubtful receivables. The year-over-year increase was mainly due to an increase of US$4.0 million in professional service fees, an increase of US$3.0 million in allowance of doubtful receivables, and an increase of US$1.1 million in share-based compensation expenses, partially offset by a decrease of US$2.8 million in staff cost. General and administrative expenses in the fourth quarter of 2024 also included share-based compensation expenses of US$7.8 million, including US$4.0 million for one-off accelerated compensation due to the canceled share-based awards.
Impairment on property and equipment in the fourth quarter of 2024 was US$4.0 million, compared to US$6.5 million in the third quarter of 2024 and US$6.3 million in the same period of 2023.
Loss from operations in the fourth quarter of 2024 was US$55.6 million, compared to US$56.8 million in the third quarter of 2024 and US$93.3 million in the same period of 2023.
Change in fair value of cryptocurrency and Change in fair value of financial derivative in the fourth quarter of 2024 were a gain of US$15.6 million and a gain of US$23.4 million, respectively, compared to a loss of US$1.7 million and a gain of US$4.2 million in the third quarter of 2024, respectively. The increases were mainly due to the increased bitcoin price.
Change in fair value of financial instruments in the fourth quarter of 2024 was a gain of US$17.2 million, compared to a gain of US$1.2 million in the third quarter of 2024 and a loss of US$10.9 million in the same period of 2023, which was mainly due to the changes in fair value of Series A and Series A-1 convertible preferred shares.
Excess of fair value of Convertible Preferred Shares in the fourth quarter of 2024 was US$22.1 million, compared to US$28.3 million in the third quarter of 2024 and US$59.2 million in the same period of 2023.
Foreign exchange gains, net in the fourth quarter of 2024 were US$5.7 million, compared with a loss of US$1.0 million in the third quarter of 2024 and a gain of US$1.4 million in the same period of 2023, respectively. The foreign exchange gains were due to the U.S. dollar appreciation against the Renminbi during the fourth quarter of 2024.
Other income, net in the fourth quarter of 2024 was US$8.3 million, compared to an income of US$0.2 million in the third quarter of 2024 and an expense of US$0.4 million in the same period of 2023, mainly due to a release of payment obligation.
Loss before income tax expense in the fourth quarter of 2024 was US$7.6 million, compared to US$82.3 million in the third quarter of 2024 and US$162.1 million in the same period of 2023.
Income tax expense in the fourth quarter of 2024 was US$85.3 million, compared to an income tax benefit of US$6.7 million in the third quarter of 2024 and an income tax benefit of US$23.1 million in the same period of 2023. The income tax expense was mainly due to the valuation allowance recorded to deduce the carrying value of deferred tax assets for certain tax loss carry-forwards, as well as unrecognized tax benefit related to the potential uncertainty in previous years’ intra-entity transactions.
Net loss in the fourth quarter of 2024 was US$92.9 million, compared to US$75.6 million in the third quarter of 2024 and US$139.0 million in the same period of 2023.
Non-GAAP adjusted EBITDA in the fourth quarter of 2024 was a gain of US$19.3 million, as compared to a loss of US$34.1 million in the third quarter of 2024 and a loss of US$69.4 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 fourth quarter of 2024 was a loss of US$9.7 million, compared with a gain of US$5.1 million in the third quarter of 2024 and a loss of US$0.3 million in the same period of 2023, respectively.
Basic and diluted net loss per American depositary share (“ADS”) in the fourth quarter of 2024 were US$0.33. In comparison, basic and diluted net loss per ADS in the third quarter of 2024 were US$0.27, while basic and diluted net loss per ADS in the same period of 2023 were US$0.77. Each ADS represents 15 of the Company’s Class A ordinary shares.
Full Year 2024 Financial Results
Total revenues in the full year of 2024 increased to US$269.3 million from US$211.5 million in 2023.
Products revenue in the full year of 2024 increased to US$223.2 million from US$176.9 million in 2023. The increase was mainly driven by the increased computing power sold, which was 26.0 million TH/s and increased 32.6% year-over-year.
Mining revenue in the full year of 2024 increased to US$44.0 million from US$34.0 million in 2023. The increase was mainly due to the increased computing power energized for mining and an increase in the price of bitcoin.
Cost of revenues in the full year of 2024 decreased to US$353.6 million from US$452.3 million in the full year of 2023.
Products costs in the full year of 2024 were US$301.3 million, compared to US$368.1 million in the full year of 2023. The decrease was mainly due to a decline in inventory write-down and prepayment write-down.
Mining costs in the full year of 2024 were US$51.6 million, compared to US$81.8 million in the full year of 2023. Mining costs consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation. The depreciation in the full year of 2024 for deployed mining machines was US$22.5 million, compared to US$53.2 million in the full year of 2023.
Gross Loss in the full year of 2024 was US$84.3 million, compared to US$240.8 million in the full year of 2023.
Total operating expenses in the full year of 2024 decreased to US$142.8 million from US$170.1 million in the full year of 2023.
Research and development expenses in the full year of 2024 decreased to US$61.3 million from US$64.8 million in the full year of 2023, primarily due to a decrease in staff costs.
Sales and marketing expenses in the full year of 2024 decreased to US$5.7 million from US$8.2 million in the full year of 2023. The decrease was mainly attributable to a decrease in staff costs.
General and administrative expenses in the full year of 2024 decreased to US$71.7 million from US$73.3 million in the full year of 2023.
Gain on disposal of property, equipment and software in the full year of 2024 increased to US$7.2 million from US$2.1 million in the full year of 2023. The increase was mainly due to the disposal of self-used mining machines.
Impairment on property and equipment in the full year of 2024 was US$11.3 million, compared to US$21.1 million in the full year of 2023.
Loss from operations in the full year of 2024 was US$227.1 million, compared to US$410.9 million in the full year of 2023.
Change in fair value of cryptocurrency and Change in fair value of financial derivative in the full year of 2024 were a gain of US$42.4 million and a gain of US$17.6 million, respectively.
Change in fair value of financial instruments in the full year of 2024 was a gain of US$20.6 million, compared to a loss of US$10.9 million in the full year of 2023.
Excess of fair value of Convertible Preferred Shares in the full year of 2024 was US$50.7 million, compared to US$59.2 million in the full year of 2023.
Foreign exchange gains, net, in the full year of 2024 were US$14.1 million, compared with a gain of US$12.3 million in the full year of 2023.
Net loss in the full year of 2024 was US$249.8 million, compared to US$414.2 million in the full year of 2023.
Non-GAAP adjusted EBITDA in the full year of 2024 was a loss of US$71.5 million, compared to a loss of US$273.7 million in the full year of 2023.
Foreign currency translation adjustment, net of nil tax, in the full year 2024 was a loss of US$13.6 million, compared to a loss of US$7.0 million in the full year of 2023.
Basic and diluted net loss per American depositary share (“ADS”) in the full year of 2024 was US$0.92, compared to basic and diluted net loss per ADS of US$2.41 in the full year of 2023.
As of December 31, 2024, the Company held Cryptocurrency assets with a fair value of US$61.8 million and Cryptocurrency receivable with an aggregate fair value of US$69.6 million. Cryptocurrency assets primarily consist of 562.3 bitcoins owned by the Company and 79.3 bitcoins received as customer deposits. Cryptocurrency receivable consists of 600 bitcoins pledged for secured term loans, 100.3 bitcoins transferred to a fixed term product, and 30 bitcoins prepaid for professional services. The classification of cryptocurrency receivable between current and non-current assets is consistent with the corresponding secured term loans. As of December 31, 2024, the Company held a total of 1,371.9 bitcoins.
As of December 31, 2024, the Company had cash of US$96.5 million, compared to US$96.2 million as of December 31, 2023.
Accounts receivable, net as of December 31, 2024 was US$1.5 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 December 31, 2024, were US$24.2 million, compared to US$19.6 million as of December 31, 2023.
Shares Outstanding
As of December 31, 2024, the Company had a total of 344,283,329 ADSs outstanding, each representing 15 of the Company’s Class A ordinary shares.
Recent Developments
Expanded Mining Footprint in North America
On March 26, 2025, the Company announced that its wholly-owned subsidiaries have signed agreements with two new partners for mining operations at the partners’ facilities in Pennsylvania and Texas.
The Company entered into a three-year master colocation agreement with Mawson Hosting LLC, an affiliate of Mawson Infrastructure Group Inc. (NASDAQ: MIGI), for joint mining operations at its facility in Midland, Pennsylvania. This expansion in Pennsylvania, together with another recently executed 24-month equipment hosting agreement for bitcoin mining at a facility in Edna, Texas, is expected to add around 4.7 EH/s of computing power to the Company’s mining operations in North America. The majority of the projects’ hashrate is expected to be gradually installed by the second quarter of 2025.
New Series A-1 Preferred Shares Financing
On March 6, 2025, 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 200,000 Series A-1 Convertible Preferred Shares (the “Series A-1 Preferred Shares”) at the price of US$1,000.00 for each Series A-1 Preferred Share.
On March 10, 2025, the Company closed the first tranche of the Series A-1 Preferred Shares financing (the “First Tranche Preferred Shares Closing”), raising total net proceeds of US$99.7 million. Pursuant to the First Tranche Preferred Shares Closing, the Company issued 100,000 Series A-1 Preferred Shares in total at the price of US$1,000.00 per Series A-1 Preferred Share and caused The Bank of New York Mellon to deliver 7,000,000 ADSs 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 net proceeds from the financing will be used to fund activities necessary to support the Company’s growth, including research and development, expansion of production scale, manufacturing or investing in digital mining sites and equipment for deployment in North America and sales globally, including any acquisition or disposition of assets from or between the Company’s subsidiaries, and other general corporate purposes.
As of the date of the Company’s earnings release for the fourth quarter of 2024, the Company has 5,526,522,198 Class A ordinary shares, 314,624,444 Class B ordinary shares, 50,000 Series A Preferred Shares and 92,250 Series A-1 Preferred Shares issued and outstanding. The increase in the outstanding Class A ordinary shares compared to the end of 2024 was due to the conversion from part of convertible preferred shares to Class A ordinary shares by the Buyer and the issuance of the Pre-delivery Shares.
Secured A15XP Order from New United States Customer
On January 6, 2025, the Company entered into a purchase agreement with a new, strategic United States customer for its Avalon A15XP miners.
According to the purchase agreement, Canaan U.S. Inc. will provide the customer with 2,800 air-cooled Avalon A15XP miners that will be added to its large mining fleet. The miners, with a benchmark Hash performance of 207 TH/s, are scheduled to be delivered in the first quarter of 2025.
The At-the-Market (“ATM”) Offering
On December 23, 2024, the Company entered into a sales agreement (the “ATM Agreement”) with Macquarie Capital Limited (“Macquarie Capital”), Keefe, Bruyette & Woods, Inc. (“KBW”), China Renaissance Securities (Hong Kong) Limited, Compass Point Research & Trading, LLC, Craig-Hallum Capital Group LLC, Northland Securities, Inc., Rosenblatt Securities Inc., The Benchmark Company, LLC, and B. Riley Securities Inc. (“B. Riley”) as sales agents (the “sales agents”).
From December 23, 2024, to March 26, 2025, the date of the Company’s earnings release for the fourth quarter of 2024, the Company utilized the ATM for fundraising and sold 21,088,579 ADSs with net proceeds of approximately US$42.5 million at an average price of US$2.08 per ADS. With the successful settlement of the First Tranche Preferred Shares Closing, the Company did not utilize the ATM after February 19, 2025.
The Company expects the ATM program to be a flexible mechanism for the Company to access public capital markets. The timing and extent of the use of the ATM program will be at the discretion of the Company, provided that the Company has satisfied certain obligations set forth in the ATM agreements and the ATM facility is duly established.
Secured Term Loans
In January 2025, the Company pledged 300 Bitcoins for secured term loans with an aggregate carrying value of US$20.7 million for 18 months. The secured term loans enable additional liquidity for the production expansion and operations of the Company.
Business Outlook
For fiscal year 2025, the Company maintains its guidance, expecting total revenues to be in the range of US$900 million to US$1.1 billion. For the first quarter of 2025, the Company expects total revenues to be approximately US$75 million. For the second quarter of 2025, the Company expects total revenues to be in the range of US$120 million and US$150 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 March 26, 2025 (or 8:00 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. Fourth Quarter and Full Year 2024 Earnings Conference Call
Registration Link: https://register-conf.media-server.com/register/BI839fbea95f8f4e68ab774d74fbb1e449
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 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,
2023
2024
USD
USD
ASSETS
Current assets:
Cash
96,154
96,488
Accounts receivable, net
2,997
1,514
Inventories
142,287
94,620
Prepayments and other current assets
122,242
90,874
Cryptocurrency receivable, current
–
50,525
Total current assets
363,680
334,021
Non-current assets:
Cryptocurrency
28,342
61,821
Cryptocurrency receivable, non-current
–
19,057
Property, equipment and software, net
29,466
40,163
Intangible asset
–
901
Operating lease right-of-use assets
1,690
3,495
Deferred tax assets
66,809
295
Other non-current assets
486
476
Non-current financial investment
2,824
2,782
Total non-current assets
129,617
128,990
Total assets
493,297
463,011
LIABILITIES, AND SHAREHOLDERS’
EQUITY
Current liabilities
Short-term loans
–
16,658
Accounts payable
6,245
13,975
Contract liabilities
19,614
24,248
Income tax payable
3,534
10,932
Accrued liabilities and other current
liabilities
64,240
43,406
Operating lease liabilities, current
1,216
1,237
Preferred Shares forward contract liability
40,344
–
Series A Convertible Preferred Shares
–
68,113
Total current liabilities
135,193
178,569
Non-current liabilities:
Long-term loans
–
7,279
Operating lease liabilities, non-current
210
1,701
Deferred tax liabilities
–
153
Other non-current liabilities
9,707
9,055
Total liabilities
145,110
196,757
Shareholders’ equity:
Ordinary shares (US$0.00000005 par value;
999,999,875,000 and 999,999,675,000 shares
authorized, 3,772,078,667 and 5,593,444,487
shares issued, 3,514,973,327 and
4,614,163,022 shares outstanding as of
December 31, 2023 and December 31, 2024,
respectively)
–
–
Treasury stocks (US$0.00000005 par value;
257,105,340 and 229,281,465 shares as of
December 31, 2023 and December 31, 2024,
respectively)
(57,055)
(57,055)
Additional paid-in capital
653,860
816,363
Statutory reserves
14,892
14,892
Accumulated other comprehensive loss
(43,879)
(57,456)
Accumulated deficit
(219,631)
(450,490)
Total shareholders’ equity
348,187
266,254
Total liabilities and shareholders’ equity
493,297
463,011
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
December 31,
2023
September 30,
2024
December 31,
2024
USD
USD
USD
Revenues
Products revenue
44,907
64,584
73,452
Mining revenue
3,708
8,959
15,295
Other revenues
458
65
20
Total revenues
49,073
73,608
88,767
Cost of revenues
Products cost
(95,764)
(81,625)
(80,215)
Mining cost
(6,001)
(13,476)
(14,904)
Other cost
(1,377)
(18)
–
Total cost of revenues
(103,142)
(95,119)
(95,119)
Gross loss
(54,069)
(21,511)
(6,352)
Operating expenses:
Research and development expenses
(10,778)
(14,761)
(16,572)
Sales and marketing expenses
(1,762)
(1,719)
(1,338)
General and administrative expenses
(22,173)
(13,206)
(27,784)
Impairment on property and equipment
(6,324)
(6,462)
(4,043)
Impairment on cryptocurrency
(144)
–
–
Gain on disposal of property,
equipment and software
1,982
815
448
Total operating expenses
(39,199)
(35,333)
(49,289)
Loss from operations
(93,268)
(56,844)
(55,641)
Interest income
229
158
107
Interest expense
–
(247)
(260)
Change in fair value of
cryptocurrency
–
(1,672)
15,641
Change in fair value of financial
derivative
–
4,202
23,411
Change in fair value of financial
instruments
(10,918)
1,243
17,213
Excess of fair value of Convertible
Preferred Shares
(59,199)
(28,297)
(22,052)
Foreign exchange gains (losses), net
1,404
(1,036)
5,650
Other income (expense), net
(363)
206
8,330
Loss before income tax expenses
(162,115)
(82,287)
(7,601)
Income tax benefit (expense)
23,100
6,710
(85,301)
Net loss
(139,015)
(75,577)
(92,902)
Foreign currency translation
adjustment, net of nil tax
(268)
5,129
(9,720)
Total comprehensive loss
(139,283)
(70,448)
(102,622)
Weighted average number of shares
used in per share calculation:
— Basic
2,706,024,111
4,163,053,834
4,285,731,465
— Diluted
2,706,024,111
4,163,053,834
4,285,731,465
Net loss per share (cent per share)
— Basic
(5.14)
(1.82)
(2.17)
— Diluted
(5.14)
(1.82)
(2.17)
Share-based compensation expenses
were included in:
Cost of revenues
14
53
143
Research and development expenses
1,911
1,882
1,840
Sales and marketing expenses
79
55
45
General and administrative expenses
6,649
4,694
7,769
The table below sets forth a reconciliation of net loss to non-GAAP adjusted EBITDA for the period indicated:
For the Three Months Ended
December 31,
2023
September 30,
2024
December 31,
2024
USD
USD
USD
Net loss
(139,015)
(75,577)
(92,902)
Income tax (benefit) expense
(23,100)
(6,710)
85,301
Interest income
(229)
(158)
(107)
Interest expense
–
247
260
EBIT
(162,344)
(82,198)
(7,448)
Depreciation and amortization
expenses
7,807
7,855
8,038
EBITDA
(154,537)
(74,343)
590
Share-based compensation expenses
8,653
6,684
9,797
Impairment on property, equipment
and software
6,324
6,462
4,043
Change in fair value of financial
instruments
10,918
(1,243)
(17,213)
Excess of fair value of Convertible
Preferred Shares
59,199
28,297
22,052
Non-GAAP adjusted EBITDA
(69,443)
(34,143)
19,269
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 Years Ended
December 31,
2023
December 31,
2024
USD
USD
Revenues
Products revenue
176,898
223,233
Mining revenue
33,957
44,022
Other revenues
622
2,069
Total revenues
211,477
269,324
Cost of revenues
Products cost
(368,116)
(301,258)
Mining cost
(81,833)
(51,569)
Other cost
(2,308)
(817)
Total cost of revenues
(452,257)
(353,644)
Gross loss
(240,780)
(84,320)
Operating expenses:
Research and development expenses
(64,845)
(61,323)
Sales and marketing expenses
(8,175)
(5,708)
General and administrative expenses
(73,316)
(71,691)
Impairment on property and equipment
(21,126)
(11,303)
Impairment on cryptocurrency
(4,706)
–
Gain on disposal of property, equipment and
software
2,067
7,215
Total operating expenses
(170,101)
(142,810)
Loss from operations
(410,881)
(227,130)
Interest income
956
536
Interest expense
–
(521)
Change in fair value of cryptocurrency
–
42,427
Change in fair value of financial derivative
–
17,606
Change in fair value of financial instruments
(10,918)
20,571
Excess of fair value of Convertible Preferred
Shares
(59,199)
(50,725)
Foreign exchange gains, net
12,309
14,135
Other income, net
2,240
10,832
Loss before income tax expenses
(465,493)
(172,269)
Income tax benefit (expense)
51,340
(77,483)
Net loss
(414,153)
(249,752)
Foreign currency translation adjustment, net of
nil tax
(6,966)
(13,577)
Total comprehensive loss
(421,119)
(263,329)
Weighted average number of shares used in
per share calculation:
— Basic
2,579,202,596
4,072,386,826
— Diluted
2,579,202,596
4,072,386,826
Net loss per share (cent per share)
— Basic
(16.06)
(6.13)
— Diluted
(16.06)
(6.13)
Share-based compensation expenses
were included in:
Cost of revenues
207
312
Research and development expenses
9,098
7,289
Sales and marketing expenses
234
156
General and administrative expenses
32,535
23,159
The table below sets forth a reconciliation of net income to non-GAAP adjusted net income for the years indicated:
For the Years Ended
December 31,
2023
December 31,
2024
USD
USD
Net loss
(414,153)
(249,752)
Income tax (benefit) expense
(51,340)
77,483
Interest income
(956)
(536)
Interest expense
–
521
EBIT
(466,449)
(172,284)
Depreciation and amortization expenses
59,444
28,416
EBITDA
(407,005)
(143,868)
Share-based compensation expenses
42,074
30,916
Impairment on property, equipment and software
21,126
11,303
Change in fair value of financial instruments
10,918
(20,571)
Excess of fair value of Convertible Preferred
Shares
59,199
50,725
Non-GAAP adjusted EBITDA
(273,688)
(71,495)
View original content:https://www.prnewswire.com/news-releases/canaan-inc-reports-unaudited-fourth-quarter-and-full-year-2024-financial-results-302411873.html
SOURCE Canaan Inc.
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Technology Drives the Future of Travel: JETOUR Continues to Expand Its “Travel+” Ecosystem
Published
20 minutes agoon
October 24, 2026By
WUHU, China, Oct. 24, 2026 /PRNewswire/ — Expectations for travel are evolving: vehicles are no longer simply a means of reaching a destination, but travel companions that bring people closer to nature, serving as a “mobile third space.”
JETOUR continues to advance its “Travel+” strategy, integrating technological innovation, product development, and ecosystem building into real travel scenarios. From October 20 to 23, the 2026 JETOUR Global Technology Experience Day, themed “Future Travel Starts Now,” takes place across Wuhu, Anhui and Moganshan, Zhejiang, featuring technology experiences, on-road driving, outdoor living, and conservation activities.
Technological Innovation: Expanding the Possibilities of Travel
Backed by the Group’s expertise in AI, intelligent driving, smart cabins, and AiMOGA Robotics, JETOUR turns cutting-edge technology into experiences users can genuinely feel. The XWD Fully Automatic Intelligent 4WD, with 7+X one-touch modes, tackles mountain roads, gravel, and water crossings, while the GAIA All-Terrain Intelligent Architecture adapts to diverse terrain and C-DM hybrid technology balances performance with efficiency. On October 21, models with these technologies take on mountain-road test drives at Moganshan.
A Diverse Product Lineup: Enriching the Travel Experience
The G700 combines premium comfort with hardcore off-road capability, while the T1 and T2 suit both urban driving and light off-road adventures. Roof tents, onboard refrigerators, and other ecosystem equipment turn the vehicle into an all-round companion. JETOUR also hosts a camping market and a Starry Night Forum, bringing product features into real travel settings.
Ecosystem: Extending the Value of Travel
Travel is about understanding cultures and protecting nature as well as exploration. Participants visit Xiazhu Lake in Zhejiang for a crested ibis conservation initiative. Globally, JETOUR supports cheetah conservation in Africa, turtle conservation in Malaysia, harpy eagle conservation in Panama, and protection of Pakistan’s national animal, the markhor.
JETOUR has also partnered with Chile’s Colo-Colo, FIBA, and the Malaysia Marathon, broadening engagement with local culture, sport, and communities — giving “Travel+” an ever richer meaning.
JETOUR now joins travelers worldwide across city, mountain, and wetland, exploring new possibilities through the deeper integration of technology and travel.
ABOUT JETOUR
Launched in 2018, JETOUR follows the “Travel+” strategy and has entered over 100 countries and regions, with 2,000+ sales and after-sales outlets. Its lineup includes the T Series for light off-road and the G Series for the premium luxury off-road market, covering urban commuting, family road trips, outdoor camping, and long-distance journeys.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/technology-drives-the-future-of-travel-jetour-continues-to-expand-its-travel-ecosystem-302918650.html
SOURCE JETOUR
Technology
Technology Drives the Future of Travel: JETOUR Continues to Expand Its “Travel+” Ecosystem
Published
20 minutes agoon
October 24, 2026By
WUHU, China, Oct. 24, 2026 /PRNewswire/ — Expectations for travel are evolving: vehicles are no longer simply a means of reaching a destination, but travel companions that bring people closer to nature, serving as a “mobile third space.”
JETOUR continues to advance its “Travel+” strategy, integrating technological innovation, product development, and ecosystem building into real travel scenarios. From October 20 to 23, the 2026 JETOUR Global Technology Experience Day, themed “Future Travel Starts Now,” takes place across Wuhu, Anhui and Moganshan, Zhejiang, featuring technology experiences, on-road driving, outdoor living, and conservation activities.
Technological Innovation: Expanding the Possibilities of Travel
Backed by the Group’s expertise in AI, intelligent driving, smart cabins, and AiMOGA Robotics, JETOUR turns cutting-edge technology into experiences users can genuinely feel. The XWD Fully Automatic Intelligent 4WD, with 7+X one-touch modes, tackles mountain roads, gravel, and water crossings, while the GAIA All-Terrain Intelligent Architecture adapts to diverse terrain and C-DM hybrid technology balances performance with efficiency. On October 21, models with these technologies take on mountain-road test drives at Moganshan.
A Diverse Product Lineup: Enriching the Travel Experience
The G700 combines premium comfort with hardcore off-road capability, while the T1 and T2 suit both urban driving and light off-road adventures. Roof tents, onboard refrigerators, and other ecosystem equipment turn the vehicle into an all-round companion. JETOUR also hosts a camping market and a Starry Night Forum, bringing product features into real travel settings.
Ecosystem: Extending the Value of Travel
Travel is about understanding cultures and protecting nature as well as exploration. Participants visit Xiazhu Lake in Zhejiang for a crested ibis conservation initiative. Globally, JETOUR supports cheetah conservation in Africa, turtle conservation in Malaysia, harpy eagle conservation in Panama, and protection of Pakistan’s national animal, the markhor.
JETOUR has also partnered with Chile’s Colo-Colo, FIBA, and the Malaysia Marathon, broadening engagement with local culture, sport, and communities — giving “Travel+” an ever richer meaning.
JETOUR now joins travelers worldwide across city, mountain, and wetland, exploring new possibilities through the deeper integration of technology and travel.
ABOUT JETOUR
Launched in 2018, JETOUR follows the “Travel+” strategy and has entered over 100 countries and regions, with 2,000+ sales and after-sales outlets. Its lineup includes the T Series for light off-road and the G Series for the premium luxury off-road market, covering urban commuting, family road trips, outdoor camping, and long-distance journeys.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/technology-drives-the-future-of-travel-jetour-continues-to-expand-its-travel-ecosystem-302918650.html
SOURCE JETOUR
Technology
Best AI Tools for Marketing Content (2026): CapCut Recognized for Faster AI-Powered Video and Image Creation by Better Business Advice
Published
1 hour agoon
October 24, 2026By
NEW YORK, Oct. 24, 2026 /PRNewswire/ — Better Business Advice has recognized CapCut in its 2026 coverage of the best AI tools for marketing content, highlighting its collection of AI-powered features for creating and editing videos, images, audio, and other campaign assets. The recognition reflects growing interest in tools that help transform creative concepts into usable marketing materials while reducing the manual work involved in production.
Best AI Marketing Tools
Seedance 2.0 – an AI video generation model that creates videos from text prompts or imagesSeedream – an AI image generation model that creates high-quality visuals from text prompts
AI-powered content creation is changing how businesses develop digital marketing campaigns. From promotional videos and product imagery to social media graphics and branded audio, organizations face growing demand for creative assets across multiple digital channels. Tools that simplify production and support faster experimentation are becoming an increasingly important part of modern marketing workflows.
CapCut offers a range of AI-assisted capabilities covering several stages of content creation. These include text-based video generation, AI image generation, background removal, image expansion, music generation, and photo animation. Together, the tools provide options for producing marketing assets for social media, digital advertising, product promotions, and other online campaigns.
AI Video Generation Supports Promotional Campaigns
Video is an important format for communicating product information, presenting services, and building audience engagement. However, producing video content regularly can require significant planning, editing, and creative resources.
CapCut’s Seedance 2.0 AI video generator supports prompt-based video creation. Users can describe a creative concept and generate video content that serves as a starting point for further development.
The capability can support promotional videos, product showcases, educational content, and social media campaigns. It also gives creators a way to explore different visual approaches during the planning stage before refining the selected direction.
For businesses producing content across multiple channels, AI-assisted video generation can help reduce the effort required to develop initial concepts. Generated material can then be reviewed and edited to align with campaign objectives, brand guidelines, and platform requirements.
Image Generation Helps Develop Marketing Concepts
Visual assets influence how products, services, and campaigns are presented to audiences. Developing suitable imagery often involves several rounds of brainstorming and creative testing before a final direction is selected.
CapCut’s Seedream AI image generator enables users to create images from text prompts. The tool can support concept drafts, campaign planning, and experimentation with different visual styles.
For example, a seasonal marketing campaign may require several approaches to backgrounds, compositions, and visual themes. AI-generated drafts can help illustrate those options before resources are committed to final production.
CapCut’s GPT Image 2 provides another option for generating images from natural language instructions. The feature can support the development of promotional graphics, campaign imagery, and other visual assets.
These tools help shorten the early stages of creative development by making it easier to turn written ideas into visual references. Human review remains important to ensure the resulting assets accurately represent the product and meet the campaign’s requirements.
Image Editing Simplifies Asset Preparation
AI image generation is only one part of preparing content for publication. Existing photographs and graphics often need adjustments before they can be used across marketing channels.
CapCut’s AI background removal tool helps separate subjects from their original backgrounds. This can be useful when preparing product images, promotional graphics, and other assets that require a different visual setting.
The AI Image Extender addresses the challenge of adapting images to different layouts. By generating content beyond an image’s original boundaries, the tool can help users adjust compositions for different formats without relying entirely on cropping or stretching.
These capabilities can support the preparation of visuals for social media posts, website banners, digital advertisements, and product promotions. They also provide options for repurposing existing creative assets instead of producing entirely new images for every placement.
AI Audio and Photo Animation Expand Creative Options
Marketing content often combines visuals, movement, and sound to communicate a message. Producing these elements separately can add complexity to the creative process.
CapCut’s SeedMusic AI audio generator supports AI-assisted music creation based on creative prompts. Generated music can be used as a starting point for videos, promotional campaigns, and other multimedia projects, subject to appropriate review and usage requirements.
The platform’s Photo-to-3D tool offers another way to adapt still images into more dynamic visual content. This capability can help transform existing photography into animated presentations for product showcases, social media, and digital promotions.
By supporting audio creation and image animation alongside video and image tools, CapCut provides additional options for developing varied marketing materials.
A Connected Workflow for Marketing Content
CapCut’s collection of AI-powered features supports several stages of campaign production within one creative environment. A project could begin with concept images generated through Seedream, followed by visual development with GPT Image 2. Background removal and image expansion can then help prepare assets for different placements.
Selected visuals can be incorporated into video projects using Seedance 2.0, while SeedMusic offers an option for developing accompanying audio. Photo-to-3D can provide another format for repurposing existing images.
Not every campaign requires all these capabilities. Their practical value depends on the content format, production requirements, and intended audience. Reviewing generated assets for accuracy, visual consistency, and suitability remains essential before publication.
Better Business Advice’s recognition of CapCut reflects the growing role of AI-assisted production in digital marketing. As businesses continue to develop content for multiple channels, tools that support video creation, image generation, editing, and multimedia production can help simplify creative workflows while leaving room for human direction and quality control.
The full article can be read at the Better Business Advice website.
About CapCut
CapCut is an AI-powered photo and video editing platform designed to make high-quality video creation accessible across devices. The platform supports creators, businesses, and everyday users with tools for video editing, AI video generation, captions, templates, audio, and visual editing. CapCut is available across mobile, web, desktop, and iPad experiences, helping users create, edit, and prepare video content for social media, marketing, education, and personal projects.
About Better Business Advice: Better Business Advice covers the news and strategies driving modern business success. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided.
View original content:https://www.prnewswire.com/news-releases/best-ai-tools-for-marketing-content-2026-capcut-recognized-for-faster-ai-powered-video-and-image-creation-by-better-business-advice-302918030.html
SOURCE BetterBusinessAdvice.com
Technology Drives the Future of Travel: JETOUR Continues to Expand Its “Travel+” Ecosystem
Technology Drives the Future of Travel: JETOUR Continues to Expand Its “Travel+” Ecosystem
Best AI Tools for Marketing Content (2026): CapCut Recognized for Faster AI-Powered Video and Image Creation by Better Business Advice
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