Golden Sentinel | Turning losses into profits and rising before the market, Canaan Technology will achieve a gross profit of 37.8 million yuan in 2020

Jinse Finance reported that on April 12, Beijing time, Canaan Technology (NASDAQ: CAN) released its 2020 full-year and fourth-quarter financial reports. The financial report shows that the company's total net revenue for 2020 is 447.7 million yuan, and the annual revenue cost has dropped from 1.94 billion yuan in 2019 to 409.9 million yuan, a drop of 78.9%. The gross profit for the whole year of 2020 is 37.8 million yuan, while the gross loss for the whole year of 2019 is 516 million yuan.

After the news was released, as of Jinse Finance's press release, Canaan Technology rose 0.75% before the market.

Golden Evening News | List of important news on the evening of January 18: 12:00-21:00 Keywords: Bitcoin mining difficulty, LBTC, Darknet Joker's Stash

1. Bitcoin mining difficulty will increase to 21.79T, a record high

2. Data: The number of Ethereum retail wallet addresses has increased significantly

3. BTC core developers launched an improved version of the Bitcoin address format Bech32

4. LBTC officially established a DeFi laboratory in the Bank of London, UK

5. Data: The top 1% of LINK addresses hold 82% of the total supply

6. The dark web Joker's Stash will be closed next month, and the annual revenue of Bitcoin exceeds 1 billion US dollars

7. BVCI, a blockchain venture capital firm, launched a CADT stablecoin pegged to the Canadian dollar [2021/1/18 16:27:55]

The financial report shows that the company's orders increased significantly in the second half of the year, and the order volume in the fourth quarter exceeded 92,000 units. As of the end of 2020, the company has reached a total order contract of 1.131 billion yuan (RMB, the same below), of which sales advance receipts are 429 million yuan, an increase of 351 million yuan or 81.8% compared with the third quarter. As of the end of the first quarter of 2021, more than 156,000 mining machines have been pre-sold, and advance receipts have exceeded 1.547 billion yuan.

Golden hot search-zce list: CVT tops the list: According to the Golden Finance ranking data, in the past 24 hours, CVT topped the list. The specific top five list is as follows: CVT, ZEN, TRUE, CBC, ONT. [2020/12/19 15:47:02]

Canaan Technology’s total net revenue in the fourth quarter was 38.2 million yuan, and the cost of revenue dropped from 1.14 billion yuan in the same period in 2019 and 180 million yuan in the third quarter of 2020 to 29.2 million yuan. In the quarter, the company’s gross profit turned from a loss of 673.4 million yuan in the same period in 2019 and a loss of 17 million yuan in the third quarter of 2020 to a profit of 9.1 million yuan, and the gross profit rate turned positive to 23%.

Golden Finance takes stock of Canaan Technology’s financial report highlights:

Golden Noon News | April 14th at noon list of important developments: 7:00-12:00 Keywords: 8 departments, central bank digital currency, supply chain, encryption fraud

1.8 Departments jointly issued a document: Accelerate the integration and application of blockchain and other technologies in the supply chain field.

2. The US FBI reminded the public to be vigilant against crypto fraud during the epidemic.

3. Report from the Economic Commission for Europe: Central bank digital currency and encrypted assets are completely different.

4. Guizhou has created eight starting points including the blockchain to promote the upgrading of new digital infrastructure.

5. A number of new projects in Fuzhou will use blockchain technology, including the monitoring platform for muck trucks.

6. Europe and the United States are researching a decentralized privacy protection new crown virus tracking solution.

7. The author of "Rich Dad, Poor Dad" retweeted to emphasize buying more gold, silver and Bitcoin.

8. Darknet content-zce related to COVID-19 has increased by 738% in the past three months.

9. Tether newly printed 120 million USDT in the past week. [2020/4/14]

Orders surged. With the promotion of institutional customer cooperation strategy, the company's orders have increased significantly in the second half of 2020, and the order volume in the fourth quarter exceeded 92,000 units. As of the end of the first quarter of 2021, the company has pre-sold more than 156,000 mining machines.

Advance receipts soared. As of the end of 2020, the company has reached a total order contract of 1.131 billion yuan, of which advance receipts are 429 million yuan, an increase of 351 million yuan or 81.8% from the third quarter. As of the end of the first quarter of 2021, the company's sales advance receipts have exceeded 1.547 billion yuan.

Cost reduction. The cost of revenue in the fourth quarter dropped from 1.14 billion yuan in the same period in 2019 and 180 million yuan in the third quarter of 2020 to 29.2 million yuan. The cost of revenue for the whole year of 2020 has dropped from 1.94 billion yuan in 2019 to 409.9 million yuan, a drop of 78.9%.

Total net revenue in 2020 fell to 447.7 million from 1.42 billion in 2019. Total net revenue for the fourth quarter decreased to $38.2 million from $463.2 million in the same period in 2019 and $163.0 million in the third quarter of 2020. The reasons for the decrease include: First, the company started mass production of new product series in the fourth quarter before gradually increasing sales. In addition, product inventory has been sold out since the third quarter of 2020.

Gross profit turned positive, turning losses into profits in the fourth quarter of 2020, and the annual gross profit rate turned positive. Canaan Technology’s gross profit in the fourth quarter was 9.1 million yuan, compared with a gross loss of 17 million yuan in the third quarter of 2020 and a gross loss of 673.4 million yuan in the fourth quarter of 2019. From a full-year perspective, Canaan Technology's gross profit for 2020 is 37.8 million yuan, while the gross loss for 2019 is 516 million yuan.

With the increase in R&D, Canaan Technology continued to increase R&D investment. In the fourth quarter, R&D expenses were 40.1 million yuan, while in the third quarter of 2020, the R&D investment was 32.1 million yuan, a quarter-on-quarter increase of 24%. The increase in R&D investment is due to the use of more new materials, and the company will continue to increase investment to consolidate its technological and product advantages in emerging markets.

Cash is abundant. As of December 31, 2020, the company's cash and cash equivalents were 391.1 million yuan.

AI chip shipments tripled year-on-year.

In 2020, after experiencing the impact of the epidemic and the challenges of the global chip shortage, Canaan Technology achieved zero inventory and locked in wafer production capacity through massive pre-sale orders, laying a solid foundation for this year's market share, and a new round of growth has been determined.

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