Canaan announced its third quarter earnings, with total revenues of US$137.5 million. Since 2022, the company’s total revenue for the first three quarters has reached US$560 million, up 42.3% compared to the first three quarters of 2021.
Looking at business streams, Canaan’s growth has come primarily from the sales of total computing power. Entering the second half of 2022, the company has maintained its growth in the first three quarters of this year despite a gradual decline in overall industry climate and market demand. According to previous public disclosures, total revenue for January-September 2022 was US$560 million, up 42.3% from the same period in 2021.
Looking at the quality of earnings, Canaan’s gross profit from Jan-Sep 2022, net income attributable to ordinary shareholders and Non-GAAP adjusted net income all showed significant growth compared to the same period last year. In particular, gross profit was US$280 million, up 46.2% from the same period of 2021; net income attributable to ordinary shareholders was US$156 million, up 38.3% from the same period of 2021；Non-GAAP adjusted net income was US$200 million, up 33% from the same period of 2021.
This month, Canaan also held a ceremony to mark the third anniversary of its IPO on Nasdaq. According to the company’s disclosed financial data, since its IPO, Canaan has generated total revenue of US$204 million, US$68 million and US$783 million in 2019, 2020 and 2021, respectively. In 2020, the company successfully completed a management iteration and improved corporate governance structure, laying the foundation for adjustments to the company’s business and marketing strategies. In 2021, Canaan’s strategy of diversifying market exposure by targeting clients ranging from listed companies, mining companies and professional fund management companies helped it achieve a turnaround. In the same year, Canaan grew its total revenue tenfold and achieved gross profit of US$447 million, net income attributable to ordinary shareholders of US$314 million and Non-GAAP adjusted net income of US$361 million, respectively.
Over the past three years, the Bitcoin mining industry has experienced a succession of landmark events such as the Great Hashrate Migration, the wave of mining company IPOs, the global energy crisis and the subsequent arrival of industry deleveraging. Canaan has taken the lead in establishing a diversified market exposure with a focus on North America and Kazakhstan, as well as Europe, Central Asia, Australia, and Southeast Asia, in order to enhance the company’s resilience against market fluctuations. 2022 saw the official establishment of Canaan’s overseas headquarters in Singapore. In the North American market, the company has set up an office in San Jose, California to strengthen its business ties with local customers and provide timely response to demands. In addition, some prospective customers that Canaan met through the North American mining exhibitions in the first half of the year moved towards substantive transactions during the quarter.
“We started operating in China in 2019,” said the company’s Chairman and CEO, Nangeng Zhang. “But now, we have offices in four different countries and an increasingly diverse team. The number of employees and engineers in the company has almost doubled over the last three years.”
Canaan has continued to increase its investment in product development. Canaan spent $24.3 million, $44.7 million and $52.2 million on R&D expenses in 2019, 2020 and 2021. Among them, the company’s R&D investment increased by 83.9% and 16.7% in 2020 and 2021, respectively. Recent data shows that the company spent $45.4 million on R&D in January-September 2022, representing an increase of 44.8% from the same period in 2021.
Publicly available information shows that at the end of 2019, the performance of Canaan’s most advanced machine was only 68 TH/s and 47 J/T. The company’s latest model, A1366, currently has a hashrate of 130 TH/s, an energy efficiency ratio of 25 J/T, a 91% increase in computational efficiency and a 44% increase in power efficiency, making it one of the most competitive models in the market. To promote the new machine’s sales, the company also announced the launch of a point mechanism this year to enhance customer loyalty and attract new customers.
At the ceremony for Canaan’s third anniversary of the IPO, Chairman and CEO Nangeng Zhang remarked that the world is becoming more and more challenging, but the company will continue to provide quality products and services to global customers, wherever they are and however they operate their business. “Canaan needs to fulfill corporate responsibility to serve our customers, employees, shareholders and stakeholders. We also have the responsibility to continuously develop advanced technologies toward greener and more user-friendly solutions,” said Zhang.
About Canaan Inc.
Established in 2013, Canaan (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production and software services. The company’s vision is “super computing is what we do，social enrichment is why we do”. Canaan has a rich experience in chip design and streamlined production in the ASIC field. In 2013, it released and mass produced the world’s first ASIC bitcoin mining machine. Canaan maintains its industry leadership in advanced process chip technology by launching one to two major product iterations every year, and providing energy-efficient computing equipment for the cryptocurrency mining industry. In 2018, Canaan released the world’s first RISC-V architecture commercial edge AI chip, further harnessing the potential of ASIC technology in the field of high-performance computing and artificial intelligence.
For more information, visit: canaan.io.