EBANG INTERNATIONAL(EBON) - 2024 Q4 - Annual Report

Fiscal Year 2024 Financial Results Operational and Financial Highlights Ebang International reported a 20.9% revenue increase to $5.9 million, achieving a gross profit of $1.2 million and narrowing net loss to $20.9 million Financial Highlights | Financial Metric | Fiscal Year 2024 (US$) | Fiscal Year 2023 (US$) | Change | | :--- | :--- | :--- | :--- | | Total Net Revenues | $5.9 million | $4.9 million | +20.9% | | Gross Profit (Loss) | $1.2 million | ($16.7 million) | N/A (Turnaround) | | Net Loss | $20.9 million | $38.0 million | -45.0% (Loss Narrowed) | Management Commentary Chairman and CEO Dong Hu highlighted 2024 as a turning point, marked by entry into new energy and a dual strategy of growth and cost control - The company is officially entering the new energy sector, marking a key strategic expansion[4] - The operational strategy involves a prudent yet enterprising approach, balancing bold exploration of new business domains with stringent control over operational costs[4] Detailed Financial Performance Analysis Revenue growth in 2024 was driven by new energy and rental income, with a 78.3% cost of revenue reduction leading to gross profit and a 14.6% decrease in operating expenses Revenue Analysis Total net revenues increased by 20.9% to $5.9 million, primarily driven by the new renewable energy business and rental income - Revenue growth was driven by the new renewable energy business and rental income from idle office space[5] Cost and Profitability Analysis Cost of revenues decreased by 78.3% to $4.7 million due to a prior-year VAT impairment, leading to a gross profit of $1.2 million from a prior loss - Cost of revenues decreased by 78.3% to US$4.7 million, mainly because a US$16.7 million VAT impairment was recognized in 2023[6] - The company achieved a gross profit of US$1.2 million in 2024, a significant turnaround from the US$16.7 million gross loss in 2023[7] Operating Expenses Total operating expenses declined by 14.6% to $31.6 million due to reduced selling expenses and no impairment charges, despite a rise in general and administrative costs Operating Expenses Summary | Expense Category | FY 2024 (US$) | FY 2023 (US$) | Change | | :--- | :--- | :--- | :--- | | Selling Expenses | $1.1 million | $1.9 million | -41.6% | | General & Administrative | $30.5 million | $29.0 million | +4.9% | | Impairment Charges | $0 | $6.0 million | -100% | | Total Operating Expenses | $31.6 million | $36.9 million | -14.6% | Net Loss and Earnings Per Share (EPS) Net loss significantly improved to $20.9 million from $38.0 million, with basic and diluted net loss per share improving to $3.22 Net Loss and EPS | Metric | FY 2024 (US$) | FY 2023 (US$) | | :--- | :--- | :--- | | Net Loss | $20.9 million | $38.0 million | | Net Loss Attributable to Ebang | $20.3 million | $36.8 million | | Basic & Diluted Net Loss per Share | $3.22 | $5.86 | Financial Position As of December 31, 2024, Ebang reported total assets of $275.8 million, liabilities of $15.4 million, and cash equivalents of $213.8 million Balance Sheet Summary | Balance Sheet Item | Dec 31, 2024 (US$) | Dec 31, 2023 (US$) | | :--- | :--- | :--- | | Cash and cash equivalents | $213.8 million | $241.6 million | | Total Assets | $275.8 million | $298.2 million | | Total Liabilities | $15.4 million | $16.9 million | | Total Equity | $260.4 million | $281.3 million | Consolidated Financial Statements Consolidated Balance Sheets The report presents consolidated balance sheets as of December 31, 2024, and 2023, detailing assets, liabilities, and equity - The report includes detailed Consolidated Balance Sheets for the fiscal years ending December 31, 2024, and 2023[15][16] Consolidated Statements of Operations and Comprehensive Loss The report includes consolidated statements of operations and comprehensive loss for the years ended December 31, 2024, 2023, and 2022 - The report provides detailed Consolidated Statements of Operations and Comprehensive Loss for the fiscal years 2024, 2023, and 2022[18] About the Company and Forward-Looking Statements Company Overview Ebang International Holdings Inc. leverages its blockchain and Fintech expertise, expanding into renewable energy for stable financial performance and long-term growth - Ebang leverages its expertise in blockchain and Fintech to create service platforms[12] - The company has expanded into the renewable energy sector to diversify its product offerings and ensure long-term, sustainable growth[12] Forward-Looking Statements This section provides a standard legal disclaimer for forward-looking statements, cautioning that actual results may differ due to various risks and uncertainties - The press release contains a standard forward-looking statements disclaimer, outlining risks and uncertainties that could impact future performance[13]