6-K
Ebang International Holdings Inc. (EBON)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2021
Commission File Number 001-39337
Ebang International Holdings Inc.
(Exact name of registrant as specified in its charter)
Building 7, No. 5 Nangonghe Road, Linping Street
Yuhang District, Hangzhou, Zhejiang, 311100
People’s Republic of China
+86 571-8817-6197
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Ebang International Holdings Inc. | |||
|---|---|---|---|
| Date: October 1, 2021 | By: | /s/ Dong Hu | |
| Name: | Dong Hu | ||
| Title: | Chairman and Chief Executive Officer |
1
EXHIBIT INDEX
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release |
2
Exhibit 99.1
Ebang International Holdings Inc. Reports UnauditedFinancial Results for The First Six Months of Fiscal Year 2021
Hangzhou, China, October 1, 2021 – Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a global application-specific integrated circuit (“ASIC”) chip design company and a manufacturer of high-performance Bitcoin mining machines, today announced its unaudited financial results for the first six months of fiscal year 2021.
Operational and Financial Highlights for the FirstSix Months of Fiscal Year 2021
Total computing power soldin the first six months of 2021 was 0.80 million Thash/s, representing a period-over-period increase of 220.00% from 0.25 million Thash/s in the same period of 2020.
Total net revenuesin the first six months of 2021 were US$18.30 million, representing a 65.69% period-over-period increase from US$11.04 million in the same period of 2020.
Gross profit in the first six months of 2021 was US$5.64 million compared to the gross loss of US$0.97 million in the same period of 2020.
Net lossin the first six months of 2021 was US$4.26 million compared to US$6.96 million in the same period of 2020.
Mr. Dong Hu, Chairman and Chief Executive Officer of the Company, commented, “Over the past few years, the Company has been focusing on the research and development and sales of Bitcoin mining machines. However, this business is susceptible to the impact of macro and micro environments such as global political and regulatory attitude toward cryptocurrency in general, economic competitions, chip production capacity and supply, and Bitcoin price fluctuations. To achieve long-term stable growth, the company plans to vigorously develop financial technology (FinTech) business, while steadily carry out research and development as well as sales business of mining machines of Bitcoin and other cryptocurrencies such as Litecoin and Dogecoin. The Company plans to gradually launch software-as-a-service (SaaS) businesses on some of its platforms, aiming to provide a full set of FinTech solutions to industry players who lack technical support and security. The Company has gradually increased the initial investment in this business, including but not limited to talent recruitment, equipment purchase, software development, and customer acquisition, which business we expect to bring continuous and stable revenue to the Company. The mining farm business includes the Company’s original mining machine hosting business and the newly derived self-mining business. Up to now, the Company has completed the establishment of the business team and started the preparatory work for the construction of North American and European mining farms in June 2021. The self-mining business can well offset the negative impact of the plummeting Bitcoin price on the sales of mining machines, thereby further ensuring the Company's long-term stable and healthy development.”
Unaudited Financial Results for the First Six Monthsof Fiscal Year 2021
Total net revenuesin the first six months of 2021 were US$18.30 million, representing a 65.69% period-over-period increase from US$11.04 million in the same period of 2020. The period-over-period increase in total net revenues were mainly due to the increase of Bitcoin price in the first six months of 2021, which increase the expected returns on Bitcoin related activities such as mining, and in turn resulted in a much higher demand on our Bitcoin mining machines.
Cost of revenuesin the first six months of 2021 was US$12.66 million compared to US$12.01 million in the same period of 2020. The cost of revenues remained stable mainly due to the combined impact of the increase in the Company’s sales and the lower inventory cost related to the utilization of the impaired inventories in our production.
Gross profit in the first six months of 2021 was US$5.64 million compared to the gross loss of US$0.97 million in the same period of 2020.
Total operating expensesin the first six months of 2021 were US$10.58 million compared to US$7.71 million in the same period of 2020.
| ● | Selling expenses in the first six months of 2021 maintain stable with the amount of US$0.59 million compared to US$0.45 million in<br> the same period of 2020. |
|---|---|
| ● | General and administrative expensesin the first six months of 2021 were US$9.99 million compared to US$7.26 million in the same period of 2020. The period-over-period increase in general and administrative expenses was mainly caused by an increase in amortization of intangible asset for the exclusive Authorization of Patent Technology (AsicBoost) in Korea. |
| --- | --- |
Loss from operationsin the first six months of 2021 was US$4.95 million compared to US$8.68 million in the same period of 2020.
Other incomein the first six months of 2021 was US$0.17 million compared to US$0.02 million in the same period of 2020. The period-over-period increase in other income was mainly caused by the increase in investment income from short term investment in the six months ended June 30, 2021.
Government grants in the first six months of 2021 were US$0.02 million compared to US$2.54 million in the same period of 2020. The period-over-period decrease in government grants was mainly caused by the decrease of tax rewards from the Chinese government.
Other expensein the first six months of 2021 was US$1.15 million compared to US$0.02 million in the same period of 2020. The period-over-period increase in other expense was mainly caused by the loss on fair value changes from short term investment in the six months ended June 30, 2021.
Net lossin the first six months of 2021 was US$4.26 million compared to US$6.96 million in the same period of 2020.
Net loss attributable toEbang International Holdings Inc. in the first six months of 2021 was US$3.58 million compared to US$6.21 million in the same period of 2020.
Basic and diluted net lossper sharesin the first six months of 2021 were both US$0.02 compared to US$0.06 in the same period of 2020.
About Ebang International Holdings Inc.
Ebang International Holdings Inc. is a blockchain technology company with strong application-specific integrated circuit (ASIC) chip design capability. With years of industry experience and expertise in ASIC chip design, it has become a global bitcoin mining machine producer with steady access to wafer foundry capacity. With its licensed and registered entities in various jurisdictions, the Company intends to launch a professional, convenient and innovative digital asset financial service platform to expand into the upstream and the downstream of blockchain and cryptocurrency industry value chain. For more information, please visit https://ir.ebang.com.cn/.
Forward-Looking Statements
This press release contains forward-looking statementswithin the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities LitigationReform Act of 1995. Certain statements contained herein are “forward-looking” statements within the meaning of the applicablesecurities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,”“believe,” “commit,” “continue,” “could,” “estimate,” “expect,”“forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,”“project,” “remain,” “should,” “will,” “would,” and similar expressions intendedto identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such statements arenot historical facts, and are based upon the Company’s current beliefs, plans and expectations, and the current market and operatingconditions. Forward-looking statements involve inherent known or unknown risks, uncertainties and other factors, all of which are difficultto predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance andachievements to differ materially from those contained in any forward-looking statement. Further information regarding these and otherrisks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. These forward-lookingstatements are made only as of the date indicated, and the Company undertakes no obligation to update or revise the information containedin any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.
Investor Relations Contact
For investor and media inquiries, please contact:
Ebang International Holdings Inc.
Email: ir@ebang.com.cn
Ascent Investor Relations LLC
Ms. Tina Xiao
Tel: (917) 609-0333
Email: tina.xiao@ascent-ir.com
EBANG INTERNATIONAL HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Stated in US dollars)
| June 30,<br> 2021 | December 31,<br> 2020 | |||||
|---|---|---|---|---|---|---|
| (Unaudited) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 278,195,874 | $ | 13,669,439 | ||
| Restricted cash, current | 110,463 | 406,857 | ||||
| Investments | 6,882,081 | 40,835,000 | ||||
| Accounts receivable, net | 6,996,013 | 7,205,113 | ||||
| Notes receivable | - | 765,967 | ||||
| Advances to suppliers | 3,114,174 | 221,186 | ||||
| Inventories, net | 5,844,991 | 3,845,091 | ||||
| Prepayments | 636,103 | 522,808 | ||||
| Due from related party | 4,648 | - | ||||
| Other current assets, net | 804,943 | 1,128,599 | ||||
| Total current assets | 302,589,290 | 68,600,060 | ||||
| Non-current assets: | ||||||
| Restricted cash, non-current | - | 47,455 | ||||
| Operating lease right-of-use assets | 606,695 | 898,335 | ||||
| Operating lease right-of-use assets - related parties | 1,466,805 | 17,701 | ||||
| Property, plant and equipment, net | 33,414,525 | 29,123,243 | ||||
| Intangible assets, net | 22,410,188 | 23,077,435 | ||||
| VAT recoverables | 28,440,372 | 21,897,063 | ||||
| Deferred tax assets | 70,170 | - | ||||
| Other assets | 545,012 | 538,934 | ||||
| Total non-current assets | 86,953,767 | 75,600,166 | ||||
| Total assets | $ | 389,543,057 | $ | 144,200,226 | ||
| LIABILITIES AND EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 2,343,819 | $ | 2,762,187 | ||
| Notes payable | 2,740,621 | 1,087,673 | ||||
| Loans due within one year, less unamortized debt issuance costs | - | 765,967 | ||||
| Income taxes payable | 562,452 | 556,137 | ||||
| Advances from customers | 10,114,303 | 832,842 | ||||
| Accrued liabilities and other payables | 12,053,301 | 21,921,614 | ||||
| Operating lease liabilities, current | 743,368 | 659,807 | ||||
| Operating lease liabilities - related parties, current | 589,450 | 17,701 | ||||
| Due to related party | - | 5,652,833 | ||||
| Total current liabilities | 29,147,314 | 34,256,761 | ||||
| Non-current liabilities: | ||||||
| Operating lease liabilities, non-current | 7,065 | 118,827 | ||||
| Operating lease liabilities, related parties, non-current | 608,107 | - | ||||
| Deferred tax liabilities | - | 872 | ||||
| Total non-current liabilities | 615,172 | 119,699 | ||||
| Total liabilities | 29,762,486 | 34,376,460 | ||||
| Equity: | ||||||
| Class A ordinary share, HKD0.001 par value, 333,374,217 shares authorized, 139,209,554 and 89,909,554 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 17,848 | 11,411 | ||||
| Class B ordinary share, HKD0.001 par value, 46,625,783 shares authorized, 46,625,783 and 46,625,783 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 5,978 | 5,978 | ||||
| Additional paid-in capital | 393,010,189 | 138,288,921 | ||||
| Accumulated deficit | (42,218,740 | ) | (38,581,419 | ) | ||
| Statutory reserves | 11,106,522 | 11,049,847 | ||||
| Accumulated other comprehensive loss | (8,256,547 | ) | (7,648,332 | ) | ||
| Total Ebang International Holdings Inc. shareholders’ equity | 353,665,250 | 103,126,406 | ||||
| Non-controlling interest | 6,115,321 | 6,697,360 | ||||
| Total equity | 359,780,571 | 109,823,766 | ||||
| Total liabilities and equity | $ | 389,543,057 | $ | 144,200,226 |
EBANG INTERNATIONAL HOLDINGS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS AND COMPREHENSIVE LOSS
(Stated in US dollars)
| For the six <br> months ended <br> June 30, <br> 2021 | For the six <br> months ended <br> June 30, <br> 2020 | |||||
|---|---|---|---|---|---|---|
| Product revenue | $ | 15,310,854 | $ | 4,954,499 | ||
| Service revenue | 2,984,707 | 6,087,856 | ||||
| Total revenues | 18,295,561 | 11,042,355 | ||||
| Cost of revenues | 12,657,744 | 12,009,303 | ||||
| Gross profit (loss) | 5,637,817 | (966,948 | ) | |||
| Operating expenses: | ||||||
| Selling expenses | 594,027 | 452,608 | ||||
| General and administrative expenses | 9,989,018 | 7,257,855 | ||||
| Total operating expenses | 10,583,045 | 7,710,463 | ||||
| Loss from operations | (4,945,228 | ) | (8,677,411 | ) | ||
| Other income (expenses): | ||||||
| Interest income | 119,772 | 12,714 | ||||
| Interest expenses | (4,369 | ) | (579,486 | ) | ||
| Other income | 167,382 | 16,080 | ||||
| Exchange gain | 1,469,620 | 474,488 | ||||
| Government grants | 21,678 | 2,541,708 | ||||
| Other expenses | (1,154,704 | ) | (16,436 | ) | ||
| Total other income | 619,379 | 2,449,068 | ||||
| Loss before income taxes benefit (provision) | (4,325,849 | ) | (6,228,343 | ) | ||
| Income taxes benefit (provision) | 69,964 | (735,048 | ) | |||
| Net loss | (4,255,885 | ) | (6,963,391 | ) | ||
| Less: net income attributable to non-controlling interest | (675,239 | ) | (751,104 | ) | ||
| Net loss attributable to Ebang International Holdings Inc. | $ | (3,580,646 | ) | $ | (6,212,287 | ) |
| Comprehensive loss | ||||||
| Net loss | $ | (4,255,885 | ) | $ | (6,963,391 | ) |
| Other comprehensive loss: | ||||||
| Foreign currency translation adjustment | (515,015 | ) | (1,189,594 | ) | ||
| Total comprehensive loss | (4,770,900 | ) | (8,152,985 | ) | ||
| Less: comprehensive loss attributable to non-controlling interest | (582,039 | ) | (876,484 | ) | ||
| Comprehensive loss attributable to Ebang International Holdings Inc. | $ | (4,188,861 | ) | $ | (7,276,501 | ) |
| Net loss per ordinary share attributable to Ebang International Holdings Inc. | ||||||
| Basic | $ | (0.02 | ) | $ | (0.06 | ) |
| Diluted | $ | (0.02 | ) | $ | (0.06 | ) |
| Weighted average ordinary shares outstanding | ||||||
| Basic | 169,460,752 | 111,876,848 | ||||
| Diluted | 169,460,752 | 111,876,848 |