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 November 2022
Commission File Number 001-39337
Ebang International Holdings Inc.
(Exact name of registrant as specified in its charter)
No.1066 Xinzhou Road, Economic and Technological Development Zone
Linping District, Hangzhou, Zhejiang, 311199
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: November 17, 2022 | By: | /s/ Dong Hu | |
| Name: | Dong Hu | ||
| Title: | Chairman, Chief Executive Officer and Chief Financial Officer | ||
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EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 |
2
Exhibit 99.1
Ebang International Holdings Inc. Reports Unaudited Financial Results for the First Six Months of Fiscal Year 2022
Hangzhou, China, November 17, 2022 – Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a global blockchain technology company, today announced its unaudited financial results for the first six months of fiscal year 2022.
Operational and Financial Highlights for the First Six Months of Fiscal Year 2022
Total computing power sold in the first six months of 2022 was 0.32 million Thash/s, representing a period-over-period decrease of 60.00% from 0.80 million Thash/s in the same period of 2021.
Total net revenues in the first six months of 2022 were US$25.06 million, representing a 36.97% period-over-period increase from US$18.30 million in the same period of 2021.
Gross profit in the first six months of 2022 was US$14.24 million compared to the gross profit of US$5.64 million in the same period of 2021.
Net loss in the first six months of 2022 was US$10.92 million compared to US$4.26 million in the same period of 2021.
Mr. Dong Hu, Chairman, Chief Executive Officer of the Company, commented, “The global COVID-19 pandemic and the continuous decline of price in cryptocurrency market has undeniably affected our daily operations. Facing these obstacles, we have actively expanded into new markets, including cryptocurrency exchange and cross-border payment businesses. Our Australian cryptocurrency exchange platform has also collaborated with Mastercard to become the first principal member in Australia for self-issuance of crypto-linked card and we believe expansion into these businesses will drive innovation in the crypto and payment space in Australia. When challenges and opportunities coexist, we always adhere to and continue expanding our global business in a legal and compliant manner. We firmly believe in the future development and mainstream trends of Fintech. We expect to continue to maintain our competitive advantage in the industry and continue to make progress and explore opportunities, so that we can achieve more revenue growth in the future and attain our long-term strategic development goals.”
Unaudited Financial Results for the First Six Months of Fiscal Year 2022
Total net revenues in the first six months of 2022 were US$25.06 million, representing a 36.97% period-over-period increase from US$18.30 million in the same period of 2021. The period-over-period increase in total net revenues were mainly attributed to the receipt of payment from a former customer.
Cost of revenues in the first six months of 2022 was US$10.82 million, representing a 14.55% period-over-period decrease from US$12.66 million in the same period of 2021. The period-over-period decrease in cost of revenues was mainly due to the impact of the lower inventory cost related to the utilization of the impaired inventories in our production.
Gross profit in the first six months of 2022 was US$14.24 million, compared to the gross profit of US$5.64 million in the same period of 2021.
Total operating expenses in the first six months of 2022 were US$24.59 million compared to US$10.58 million in the same period of 2021.
| ● | Selling expenses in the first six months of 2022 were US$1.68 million compared to US$0.59 million in the same period of 2021. The period-over-period increase in selling expenses was mainly caused by the increase of staff cost and advertising cost related to our cryptocurrency exchange business. |
| ● | General and administrative expenses in the first six months of 2022 were US$22.90 million compared to US$9.99 million in the same period of 2021. The period-over-period increase in general and administrative expenses was mainly due to the combined impact of the increase in share-based compensation expenses and the increase of administrative cost related to our cryptocurrency exchange business. |
Loss from operations in the first six months of 2022 was US$10.41 million compared to US$4.95 million in the same period of 2021.
Interest income in the first six months of 2022 was US$1.16 million compared to US$0.12 million in the same period of 2021. The period-over-period increase in interest income was mainly caused by the increase in the average cash balance from 2021 to 2022.
Other expense in the first six months of 2022 was US$0.39 million compared to US$1.15 million in the same period of 2021. The period-over-period decrease in other expense was mainly caused by the loss on fair value changes from short term investment in the six months ended June 30, 2022.
Net loss in the first six months of 2022 was US$10.92 million compared to US$4.26 million in the same period of 2021.
Net loss attributable to Ebang International Holdings Inc. in the first six months of 2022 was US$10.08 million compared to US$3.58 million in the same period of 2021.
Basic and diluted net loss per share in the first six months of 2022 were both US$0.05 compared to US$0.02 in the same period of 2021.
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 /.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Certain statements contained herein are “forward-looking” statements within the meaning of the applicable securities 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 intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements include, but are not limited to, statements regarding our future operating results and financial position, our business strategy and plans, expectations relating to our industry, the regulatory environment, market conditions, trends and growth, expectations relating to customer behaviors and preferences, our market position and potential market opportunities, and our objectives for future operations. Such statements are not historical facts, and are based upon the Company’s current beliefs, plans and expectations, and the current market and operating conditions. Forward-looking statements involve inherent known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance and achievements to differ materially from those contained in any forward-looking statement. These risks and uncertainties include our ability to successfully execute our business and growth strategy and maintain future profitability, market acceptance of our products and services, our ability to further penetrate our existing customer base and expand our customer base, our ability to develop new products and services, our ability to expand internationally, the success of any acquisitions or investments that we make, the efforts of increased competition in our markets, our ability to stay in compliance with applicable laws and regulations, market conditions across the crytoeconomy and general market, political and economic conditions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements are made only as of the date indicated, and the Company undertakes no obligation to update or revise the information contained in any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.
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Investor Relations Contact
For investor and media inquiries, please contact:
Ebang International Holdings Inc.
Email: ir@ebang.com
Ascent Investor Relations LLC
Ms. Tina Xiao
Tel: (917) 609-0333
Email: tina.xiao@ascent-ir.com
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EBANG INTERNATIONAL HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Stated in US dollars)
| June 30, 2022 |
December 31, 2021 |
|||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 251,199,223 | $ | 239,872,316 | ||||
| Restricted cash, current | 82,590 | 171,156 | ||||||
| Short-term investments | 13,484,594 | 35,443,246 | ||||||
| Accounts receivable, net | 6,008,361 | 9,872,746 | ||||||
| Advances to suppliers | 1,344,265 | 1,057,096 | ||||||
| Inventories, net | 384,576 | 7,137,538 | ||||||
| Prepayments | 11,285 | 283,776 | ||||||
| Other current assets, net | 6,773,980 | 4,994,271 | ||||||
| Total current assets | 279,288,874 | 298,832,145 | ||||||
| Non-current assets: | ||||||||
| Restricted cash, non-current | 812,293 | 883,130 | ||||||
| Operating lease right-of-use assets | 1,700,229 | 2,132,247 | ||||||
| Operating lease right-of-use assets - related parties | 802,939 | 1,136,775 | ||||||
| Property, plant and equipment, net | 35,684,820 | 33,329,610 | ||||||
| Intangible assets, net | 32,198,740 | 22,512,208 | ||||||
| VAT recoverables | 21,636,622 | 26,332,231 | ||||||
| Goodwill | 2,324,196 | - | ||||||
| Other assets | 1,636,155 | 705,825 | ||||||
| Total non-current assets | 96,795,994 | 87,032,026 | ||||||
| Total assets | $ | 376,084,868 | $ | 385,864,171 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,623,033 | $ | 3,387,836 | ||||
| Income taxes payable | 9,173 | 13,272 | ||||||
| Advances from customers | 771,826 | 894,174 | ||||||
| Accrued liabilities and other payables | 11,602,918 | 8,962,716 | ||||||
| Operating lease liabilities, current | 756,948 | 851,936 | ||||||
| Operating lease liabilities - related parties, current | 570,315 | 595,424 | ||||||
| Total current liabilities | 16,334,213 | 14,705,358 | ||||||
| Non-current liabilities: | ||||||||
| Operating lease liabilities, non-current | 1,379,327 | 1,712,303 | ||||||
| Operating lease liabilities, related parties, non-current | - | 288,563 | ||||||
| Deferred tax liabilities | 1,211,215 | 178,582 | ||||||
| Total non-current liabilities | 2,590,542 | 2,179,448 | ||||||
| Total liabilities | 18,924,755 | 16,884,806 | ||||||
| Equity: | ||||||||
| Class A ordinary share, HKD0.001 par value, 333,374,217 shares authorized, 140,750,554 and 139,209,554 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 18,045 | 17,848 | ||||||
| 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, 2022 and December 31, 2021, respectively | 5,978 | 5,978 | ||||||
| Additional paid-in capital | 396,674,385 | 393,717,189 | ||||||
| Accumulated deficit | (44,255,347 | ) | (34,180,280 | ) | ||||
| Statutory reserves | 11,079,649 | 11,079,649 | ||||||
| Accumulated other comprehensive loss | (11,285,487 | ) | (6,897,005 | ) | ||||
| Total Ebang International Holdings Inc. shareholders’ equity | 352,237,223 | 363,743,379 | ||||||
| Non-controlling interest | 4,922,890 | 5,235,986 | ||||||
| Total equity | 357,160,113 | 368,979,365 | ||||||
| Total liabilities and equity | $ | 376,084,868 | $ | 385,864,171 | ||||
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EBANG INTERNATIONAL HOLDINGS INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
AND COMPREHENSIVE LOSS
(Stated in US dollars)
| For the six months ended June 30, 2022 |
For the six months ended June 30, 2021 |
|||||||
| Product revenue | $ | 25,059,635 | $ | 15,310,854 | ||||
| Service revenue | - | 2,984,707 | ||||||
| Total revenues | 25,059,635 | 18,295,561 | ||||||
| Cost of revenues | 10,816,229 | 12,657,744 | ||||||
| Gross profit | 14,243,406 | 5,637,817 | ||||||
| Operating expenses: | ||||||||
| Selling expenses | 1,685,425 | 594,027 | ||||||
| General and administrative expenses | 22,901,323 | 9,989,018 | ||||||
| Total operating expenses | 24,586,748 | 10,583,045 | ||||||
| Loss from operations | (10,343,342 | ) | (4,945,228 | ) | ||||
| Other income (expenses): | ||||||||
| Interest income | 1,162,470 | 119,772 | ||||||
| Interest expenses | - | (4,369 | ) | |||||
| Other income | 571,462 | 167,382 | ||||||
| Exchange gain (loss) | (1,932,890 | ) | 1,469,620 | |||||
| Government grants | 2,505 | 21,678 | ||||||
| Other expenses | (390,051 | ) | (1,154,704 | ) | ||||
| Total other income (expenses) | (586,504 | ) | 619,379 | |||||
| Loss before income taxes benefit | (10,929,846 | ) | (4,325,849 | ) | ||||
| Income taxes benefit | 10,683 | 69,964 | ||||||
| Net loss | (10,919,163 | ) | (4,255,885 | ) | ||||
| Less: net loss attributable to non-controlling interest | (844,096 | ) | (675,239 | ) | ||||
| Net loss attributable to Ebang International Holdings Inc. | $ | (10,075,067 | ) | $ | (3,580,646 | ) | ||
| Comprehensive loss | ||||||||
| Net loss | $ | (10,919,163 | ) | $ | (4,255,885 | ) | ||
| Other comprehensive loss: | ||||||||
| Foreign currency translation adjustment | (3,857,482 | ) | (515,015 | ) | ||||
| Total comprehensive loss | (14,776,645 | ) | (4,770,900 | ) | ||||
| Less: comprehensive loss attributable to non-controlling interest | (313,096 | ) | (582,039 | ) | ||||
| Comprehensive loss attributable to Ebang International Holdings Inc. | $ | (14,463,549 | ) | $ | (4,188,861 | ) | ||
| Net loss per ordinary share attributable to Ebang International Holdings Inc. | ||||||||
| Basic | $ | (0.05 | ) | $ | (0.02 | ) | ||
| Diluted | $ | (0.05 | ) | $ | (0.02 | ) | ||
| Weighted average ordinary shares outstanding | ||||||||
| Basic | 187,291,199 | 169,460,752 | ||||||
| Diluted | 187,291,199 | 169,460,752 | ||||||
5