Ebang International Reports Financial Results for Fiscal Year 2023

Core Viewpoint - Ebang International Holdings Inc. reported a significant decline in total net revenues for the fiscal year 2023, primarily due to adverse market conditions and the absence of one-time revenue from the previous year, while also highlighting growth in specific business segments such as cryptocurrency exchange and cross-border payments [2][4][3]. Financial Performance - Total net revenues for fiscal year 2023 decreased by 85.0% to US$4.9 million, down from US$32.3 million in 2022 [2][4]. - Gross loss for the fiscal year 2023 was US$16.7 million, compared to a gross profit of US$15.4 million in 2022 [2][5]. - Net loss for fiscal year 2023 was US$38.0 million, an improvement from a net loss of US$45.8 million in 2022 [2][8]. Revenue Breakdown - Revenue from cryptocurrency exchange and cross-border payment and foreign exchange businesses increased by approximately 36% compared to the previous fiscal year [3]. - The decline in total revenues was attributed to the bankruptcy of virtual currency banks in the U.S. and increased caution among market participants regarding cryptocurrency products [4]. Cost and Expenses - Cost of revenues increased by 27.4% to US$21.6 million in 2023, primarily due to a VAT recoverable impairment of US$16.7 million [5]. - Total operating expenses decreased by 41.7% to US$36.9 million, driven by reductions in selling and general administrative expenses [5][6]. Impairments and Losses - Impairment of intangible assets in 2023 was US$3.7 million, and impairment of goodwill was US$2.3 million, reflecting challenges from previous acquisitions [6][7]. - Loss from operations for the fiscal year was US$53.6 million, compared to a loss of US$48.0 million in 2022 [7][18]. Cash Position - Cash and cash equivalents as of December 31, 2023, were US$241.6 million, a decrease from US$251.3 million as of December 31, 2022 [8][14]. Market Outlook - The approval and listing of spot Bitcoin ETFs are seen as potential positive developments for the cryptocurrency market, despite ongoing challenges [3]. - The company aims to continue promoting innovation and adjusting business strategies in response to market changes [3].