On September 25, Ebang International Holdings Inc. (Nasdaq: EBON) published its unaudited financial results for the first six months of the 2020 fiscal year. Ebang is a leading manufacturer of high-performance Bitcoin mining machines and a major application-specific integrated circuit (“ASIC”) chip design company.

Homepage of asic website on the display of PC, url - asic.gov.au.

The Operational And Financial Highlights

Total net revenues for the first six months of the year were US$11.04 million. That amount represents a 50.6% year-over-year (YoY) decrease from US$22.35 million reported in the same period a year ago. The cumulative computing power sold in the first half of 2020 was 0.25 million Thash/s which is a YoY decrease of around 86.02% from 1.82 million Thash/s recorded in 2019.

The company recorded a gross loss of US$0.97 million translating to a 94.59% year-over-year decline from US$17.87 million recorded in the same period in 2019. Net loss for these six months was US$6.96 million compared to US$19.07 million in the first six months of last year.

cryptocurrency equipment mining

Chairman and Chief Executive Officer of the Company, Mr. Dong Hu, said:

“The outbreak of the COVID-19 has significantly affected business and manufacturing activities worldwide. Measures to contain COVID-19, such as travel restrictions, mandatory quarantines, and suspension of business activities have caused severe disruptions and uncertainties to our business operations and adversely affected our results of operations and financial condition. Our chip suppliers have reduced their production capacity due to the impact of the COVID-19, resulting in our shortage of raw materials during the first six months of 2020.”

Dong Hu said that the company took timely and proactive measures to guarantee the resilience of its business operations. These measures will help them deliver solid performance aftermarket conditions return to normalcy. In that context, the management actively optimized the company’s revenue structure according to the productivity ratio and strategically explore expansions into the blockchain-enabled financial services. Hu continued:

“With the preparatory work we have initiated in Singapore and Canada, we are at an initial preparatory stage of executing our plan to launch blockchain-enabled financial business by establishing cryptocurrency exchange(s) and online brokerage(s) and by combining the blockchain-enabled financial businesses with the traditional ones to capture the entire value chain of the blockchain industry.”

Ebang is committed to staying true to its mission of strengthening the technological innovation of its products and services to enhance their competitive edge in the market.

Unaudited Financial Results

In the first six months of 2020, the total net revenues reported by Ebang were US$11.04M, a 50.60% year-over-year decrease from US$22.35M recorded in 2019. The bitcoin halving event and the rapid spread of the coronavirus are to blame for these decreases.

The halving event affected the anticipated returns on Bitcoin-related activities like mining. Consequently, it resulted in significantly lower demand and average selling price for the bitcoin mining machines.

3d Illustration - Ein halbierter, goldener Bitcoin und die Botschaft Halving auf schwarzem Hintergrund - digitale Kryptowährung

The cost of revenues in the same period was US$12.01M compared to US$40.21M in the same period last year. That decrease was in line with the changes in the firm’s sales and the decrease in inventory write-down. The gross loss stood at US$0.97 million. That represents a 94.59% year-over-year decrease from US$17.87M in 2019.

Total operating expenses in the first half of 2020 were US$7.71M compared to US$9.60M in 2019. The general and administrative expenses stood at US$7.26 million while the selling expenses were US$0.45 million.

Losses recorded from operations totaled US$8.68 million compared to US$27.47 million recorded in the first half of 2019. Other income acquired in the first half of 2020 was US$0.02M compared to US$0.03M in 2019. That decrease is attributed to a plunge in investment income from wealth management products acquired from the banks within that period.

$2.54M of government grants were availed to the company compared to US$6.18 million in the first half of 2019. The decrease in these government grants was caused by the decrease of tax rewards from the government. Net loss in the first half of this year was US$6.96 million. The loss attributed to Ebang International Holdings Inc was US$6.21 million while the basic and diluted net loss per shares were both US$0.06.

About the author

Wanguba Muriuki is an Editor at Large for E-Crypto News and author of the book- "The Exploitative Intrigues of Cryptocurrency Scams Explained." He is also a passionate creator who sees every aspect of life from a written perspective. He loves Blockchain, Cryptocurrency, Technology, and Traveling. He is a widely experienced creative and technical writer. Everything and everyone is describable. The best description is written.

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