Canaan's financial report: 2022 annual revenue of nearly 635 million US dollars, gross profit of 253 million US dollars

Canaan Zhizhi announced its fourth-quarter and full-year financial reports for fiscal year 2022. Revenue in the fourth quarter of 2022 was US$56.8 million, a decrease of 59.9% quarter-on-quarter and an 82.1% year-on-year decrease. Among them, the product revenue in the fourth quarter of 2022 was 46.3 million US dollars, a 65.1% decrease from the previous quarter, mainly due to the decrease in the total computing power sold and the lower selling price due to the decline in the price of Bitcoin. Mining revenue in the fourth quarter of 2022 was $10.5 million, a 16.3% quarter-on-quarter increase and a 368.2% year-on-year increase. The increase in mining revenue in the third quarter of 2022 and the fourth quarter of 2021 is mainly due to the increase in computing power. In addition, the gross loss in the fourth quarter of 2022 was RMB 230.9 million (US$33.5 million), the gross profit in the third quarter of 2022 was RMB 219.3 million, and the gross profit in the same period in 2021 was RMB 1,486.9 million. Cryptocurrency impairments of USD 1.6 million in Q4 2022, compared to RMB 11.3 million in Q3 2022 and zero in the same period in 2021. The impairment was mainly due to the drop in the price of Bitcoin. Full-year 2022 revenue fell to 4,378.9 million yuan ($634.9 million) from 4,986.7 million yuan in 2021. The main reason for the decline is the decrease in the total computing power sold. Gross profit for full-year 2022 fell to CNY 1,747.9 million (USD 253.4 million), from CNY 2,850.7 million in 2021.