On Thursday, April 9 (pre-market), Canaan Inc. (NASDAQ: CAN), the world's second-largest Bitcoin mining hardware manufacturer, released its unaudited financial results for the fourth quarter and full year ended December 31, 2019.
Here is BroadChain's brief analysis:
2019 Revenue: RMB 1.4226 Billion; Net Loss: RMB 1.0345 Billion
Canaan reported 2019 revenue of RMB 1.4226 billion, a significant drop from RMB 2.7053 billion in 2018.
The company posted an operating loss of RMB 1.0554 billion for the year, a stark reversal from the RMB 130 million operating profit recorded in 2018.
Net loss attributable to shareholders reached RMB 1.0345 billion, compared to a net income of RMB 122.4 million the previous year.
Operating costs rose to RMB 538.5 million in 2019, up from RMB 375.1 million in 2018.
R&D expenses totaled RMB 169 million, down 10.9% from RMB 189.7 million in 2018, primarily due to a reduction in project scope.
Sales and marketing expenses fell sharply by 43.4% to RMB 21.9 million, from RMB 38.7 million a year earlier.
Administrative expenses surged to RMB 347.6 million from RMB 146.7 million. This jump was largely attributed to share-based compensation expenses of RMB 247.4 million recognized in 2019.
As of December 31, 2019, Canaan held cash and cash equivalents of RMB 516.6 million, nearly double the RMB 258.9 million held at the end of 2018.
Q4 2019 Revenue Jumps 66.8% Year-on-Year to RMB 463.2 Million
Fourth-quarter revenue came in at RMB 463.2 million, a 66.8% increase from RMB 277.7 million in Q4 2018.
However, the net loss widened dramatically to RMB 798 million, compared to a net loss of RMB 27.5 million in the same period last year.
On a non-GAAP basis, the net loss was RMB 750.5 million, versus RMB 23.1 million in Q4 2018.
Outlook: Q1 2020 Revenue Guidance of at Least RMB 60 Million
The company stated that due to the negative impact of the COVID-19 pandemic, it expects Q1 2020 revenue to be no less than RMB 60 million.
Unusual Trading Activity and Surge on February 12
On February 12 (U.S. local time), Canaan's stock opened at $4.41, soared to an intraday high of $8.69—nearly doubling in price—and closed up 82.73%.
Notably, trading volume that day hit a record $87.0552 million—roughly 80 times the average daily volume of around $1 million seen in the preceding period.
As a reminder, Canaan had previously attempted listings on the A-share and Hong Kong exchanges before finally raising $90 million through its Nasdaq IPO. The trading volume on February 12 alone matched its entire IPO fundraising amount.
Stock Performance: Down Over 60% Since IPO
Based on its IPO price of $9.00 per share, Canaan's pre-market stock price was $3.52 as of Thursday, April 9.
This indicates the company's market capitalization has fallen over 60% since its debut, currently standing at approximately $557 million (RMB 3.92835 billion).