Exhibit 99.2
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share and per share data, or as otherwise noted)
As of December 31, | As of December 31, | |||||||||||
2021 | 2022 | 2022 | ||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 2,684,342 | 707,261 | 102,543 | |||||||||
Restricted cash | 47,362 | - | - | |||||||||
Accounts receivable, net | 367 | - | - | |||||||||
Inventories | 812,363 | 1,473,990 | 213,708 | |||||||||
Prepayments and other current assets | 1,729,027 | 1,689,079 | 244,893 | |||||||||
Total current assets | 5,273,461 | 3,870,330 | 561,144 | |||||||||
Non-current assets: | ||||||||||||
Cryptocurrency | 20,310 | 87,273 | 12,653 | |||||||||
Property, equipment and software | 185,566 | 597,988 | 86,700 | |||||||||
Right-of-use assets, net | 30,920 | 29,600 | 4,292 | |||||||||
Deferred tax assets | 99,044 | 151,410 | 21,952 | |||||||||
Other non-current assets | 2,956 | 17,437 | 2,528 | |||||||||
Non-current financial investment | 20,000 | 20,000 | 2,900 | |||||||||
Total non-current assets | 358,796 | 903,708 | 131,025 | |||||||||
Total assets | 5,632,257 | 4,774,038 | 692,169 | |||||||||
LIABILITIES, AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | 143,441 | 116,333 | 16,867 | |||||||||
Contract liabilities | 1,340,731 | 4,613 | 669 | |||||||||
Income tax payable | 148,719 | 50,340 | 7,299 | |||||||||
Accrued liabilities and other current liabilities | 437,394 | 336,705 | 48,814 | |||||||||
Lease liabilities, current | 14,819 | 16,118 | 2,337 | |||||||||
Total current liabilities | 2,085,104 | 524,109 | 75,986 | |||||||||
Non-current liabilities: | ||||||||||||
Lease liabilities, non-current | 16,292 | 10,039 | 1,456 | |||||||||
Warrant liability | 66,347 | - | - | |||||||||
Other non-current liabilities | 5,824 | 4,163 | 604 | |||||||||
Total liabilities | 2,173,567 | 538,311 | 78,046 | |||||||||
Shareholders’ equity: | ||||||||||||
Ordinary shares (US$0.00000005 par value; 1,000,000,000,000 shares authorized, 2,804,138,492 shares issued, 2,577,386,552 and 2,496,001,757 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) | 1 | 1 | - | |||||||||
Subscriptions receivable from shareholders | (1 | ) | (1 | ) | - | |||||||
Treasury stocks (US$0.00000005 par value; 226,751,940 shares as of December 31, 2021 and 308,136,735 shares as of December 31, 2022, respectively) | (231,281 | ) | (380,538 | ) | (55,173 | ) | ||||||
Additional paid-in capital | 2,891,134 | 3,298,531 | 478,242 | |||||||||
Statutory reserves | 97,420 | 102,586 | 14,874 | |||||||||
Accumulated other comprehensive loss | (101,925 | ) | (4,844 | ) | (702 | ) | ||||||
Retained earnings | 803,342 | 1,219,992 | 176,882 | |||||||||
Total shareholders’ equity | 3,458,690 | 4,235,727 | 614,123 | |||||||||
Total liabilities and shareholders’ equity | 5,632,257 | 4,774,038 | 692,169 |
1
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(all amounts in thousands of RMB, except share and per share data, or as otherwise noted)
For the Three Months Ended | ||||||||||||||||
December 31, 2021 | September 30, 2022* | December 31, 2022 | December 31, 2022 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Revenues | ||||||||||||||||
Products revenue | 2,168,908 | 915,992 | 319,558 | 46,332 | ||||||||||||
Mining revenue | 15,409 | 62,018 | 72,150 | 10,461 | ||||||||||||
Other revenues | 238 | 197 | 218 | 32 | ||||||||||||
Total revenues | 2,184,555 | 978,207 | 391,926 | 56,825 | ||||||||||||
Cost of revenues | (697,606 | ) | (758,871 | ) | (822,979 | ) | (119,321 | ) | ||||||||
Gross profit/(loss) | 1,486,949 | 219,336 | (431,053 | ) | (62,496 | ) | ||||||||||
Operating expenses: | ||||||||||||||||
Research and development expenses | (112,017 | ) | (118,084 | ) | (223,479 | ) | (32,401 | ) | ||||||||
Sales and marketing expenses | (30,712 | ) | (14,249 | ) | (7,629 | ) | (1,106 | ) | ||||||||
General and administrative expenses | (130,995 | ) | (142,690 | ) | (162,375 | ) | (23,542 | ) | ||||||||
Impairment on cryptocurrency | - | (11,290 | ) | (11,276 | ) | (1,635 | ) | |||||||||
Total operating expenses | (273,724 | ) | (286,313 | ) | (404,759 | ) | (58,684 | ) | ||||||||
Income/(loss) from operations | 1,213,225 | (66,977 | ) | (835,812 | ) | (121,180 | ) | |||||||||
Interest income | 1,986 | 2,948 | 7,670 | 1,112 | ||||||||||||
Change in fair value of warrant liability | 22,148 | - | - | - | ||||||||||||
Interest expense | 246 | - | - | - | ||||||||||||
Foreign exchange gains, net | 4,190 | 101,197 | 26,583 | 3,854 | ||||||||||||
Other income, net | 4,492 | 1,719 | 14,037 | 2,035 | ||||||||||||
Income/(loss) before income tax expenses | 1,246,287 | 38,887 | (787,522 | ) | (114,179 | ) | ||||||||||
Income tax (expense)/benefit | (49,758 | ) | 7,173 | 177,302 | 25,706 | |||||||||||
Net income/(loss) | 1,196,529 | 46,060 | (610,220 | ) | (88,473 | ) | ||||||||||
Foreign currency translation adjustment, net of nil tax | (19,930 | ) | 94,008 | (47,226 | ) | (6,847 | ) | |||||||||
Total comprehensive income/(loss) | 1,176,599 | 140,068 | (657,446 | ) | (95,320 | ) | ||||||||||
Weighted average number of shares used in per share calculation: | ||||||||||||||||
— Basic | 2,602,142,223 | 2,560,879,920 | 2,515,312,493 | 2,515,312,493 | ||||||||||||
— Diluted | 2,635,116,905 | 2,580,542,499 | 2,515,312,493 | 2,515,312,493 | ||||||||||||
Net earnings/(loss) per share (cent per share) | ||||||||||||||||
— Basic | 45.98 | 1.80 | (24.26 | ) | (3.52 | ) | ||||||||||
— Diluted | 45.41 | 1.78 | (24.26 | ) | (3.52 | ) | ||||||||||
Share-based compensation expenses were included in: | ||||||||||||||||
Cost of revenues | - | 481 | 405 | 59 | ||||||||||||
Research and development expenses | 19,614 | 14,484 | 14,138 | 2,050 | ||||||||||||
Sales and marketing expenses | 2,123 | 5,370 | 4,383 | 635 | ||||||||||||
General and administrative expenses | 54,627 | 84,888 | 77,622 | 11,254 |
2
The table below sets forth a reconciliation of net income/(loss) to non-GAAP adjusted net income/(loss) for the period indicated:
For the Three Months Ended | ||||||||||||||||
December 31, 2021 | September 30, 2022 | December 31, 2022 | December 31, 2022 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Net income/(loss) | 1,196,529 | 46,060 | (610,220 | ) | (88,473 | ) | ||||||||||
Share-based compensation expenses | 76,364 | 105,223 | 96,548 | 13,998 | ||||||||||||
Change in fair value of warrant liability | (22,148 | ) | - | - | - | |||||||||||
Non-GAAP adjusted net income/(loss) | 1,250,745 | 151,283 | (513,672 | ) | (74,475 | ) |
3
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(all amounts in thousands of RMB, except share and per share data, or as otherwise noted)
For the Years Ended | ||||||||||||
December 31, 2021 | December 31, 2022 | December 31, 2022 | ||||||||||
RMB | RMB | US$ | ||||||||||
Revenues | ||||||||||||
Products revenue | 4,956,891 | 4,159,563 | 603,080 | |||||||||
Mining revenue | 21,688 | 218,639 | 31,700 | |||||||||
Other revenues | 8,127 | 705 | 102 | |||||||||
Total revenues | 4,986,706 | 4,378,907 | 634,882 | |||||||||
Cost of revenues | (2,135,961 | ) | (2,831,107 | ) | (410,472 | ) | ||||||
Gross profit | 2,850,745 | 1,547,800 | 224,410 | |||||||||
Operating expenses: | ||||||||||||
Research and development expenses | (332,846 | ) | (546,642 | ) | (79,256 | ) | ||||||
Sales and marketing expenses | (100,467 | ) | (62,966 | ) | (9,129 | ) | ||||||
General and administrative expenses | (589,107 | ) | (580,523 | ) | (84,168 | ) | ||||||
Impairment on cryptocurrency | - | (52,959 | ) | (7,678 | ) | |||||||
Total operating expenses | (1,022,420 | ) | (1,243,090 | ) | (180,231 | ) | ||||||
Income from operations | 1,828,325 | 304,710 | 44,179 | |||||||||
Interest income | 7,310 | 15,938 | 2,311 | |||||||||
Change in fair value of warrant liability | 190,178 | 24,598 | 3,566 | |||||||||
Investment income | 277 | - | - | |||||||||
Foreign exchange gains, net | 17,890 | 242,957 | 35,225 | |||||||||
Other income, net | 6,410 | 22,156 | 3,212 | |||||||||
Income before income tax expenses | 2,050,390 | 610,359 | 88,493 | |||||||||
Income tax expense | (50,108 | ) | (124,002 | ) | (17,979 | ) | ||||||
Net income | 2,000,282 | 486,357 | 70,514 | |||||||||
Foreign currency translation adjustment, net of nil tax | (22,145 | ) | 97,081 | 14,075 | ||||||||
Total comprehensive income | 1,978,137 | 583,438 | 84,589 | |||||||||
Weighted average number of shares used in per share calculation: | ||||||||||||
— Basic | 2,521,667,815 | 2,560,106,403 | 2,560,106,403 | |||||||||
— Diluted | 2,576,157,247 | 2,577,892,069 | 2,577,892,069 | |||||||||
Net earnings per share (cent per share) | ||||||||||||
— Basic | 79.32 | 19.00 | 2.75 | |||||||||
— Diluted | 77.65 | 18.87 | 2.74 | |||||||||
Share-based compensation expenses were included in: | ||||||||||||
Cost of revenues | 269 | 990 | 144 | |||||||||
Research and development expenses | 99,173 | 66,065 | 9,579 | |||||||||
Sales and marketing expenses | 8,240 | 16,263 | 2,358 | |||||||||
General and administrative expenses | 383,779 | 324,079 | 46,987 |
4
The table below sets forth a reconciliation of net income to non-GAAP adjusted net income for the years indicated:
For the Years Ended | ||||||||||||
December 31, 2021 | December 31, 2022 | December 31, 2022 | ||||||||||
RMB | RMB | US$ | ||||||||||
Net income | 2,000,282 | 486,357 | 70,514 | |||||||||
Share-based compensation expenses | 491,461 | 407,397 | 59,068 | |||||||||
Change in fair value of warrant liability | (190,178 | ) | (24,598 | ) | (3,566 | ) | ||||||
Non-GAAP adjusted net income | 2,301,565 | 869,156 | 126,016 |
5