Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Canaan Inc. |
Entity Central Index Key | 0001780652 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Entity Shell Company | false |
Document Shell Company Report | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity File Number | 001-39127 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1-2/F, QianFang Science Building C |
Entity Address, Address Line Two | Building No. 27, Zhongguancun Software Park (Phase I) |
Entity Address, Address Line Three | No. 8 Dongbeiwang West Road |
Entity Address, City or Town | Haidian District, Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100193 |
Document Annual Report | true |
Document Transition Report | false |
Document Registration Statement | false |
ICFR Auditor Attestation Flag | false |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2,060,597,778 |
Title of each class | Class A ordinary shares, par value US$0.00000005 per share* |
Name of each exchange on which registered | NASDAQ |
No Trading Symbol Flag | true |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 311,624,444 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of each class | American Depositary Shares, each representing 15 Class A ordinary share |
Trading Symbol | CAN |
Name of each exchange on which registered | NASDAQ |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 1-2/F, QianFang Science Building C |
Entity Address, Address Line Two | Building No. 27, Zhongguancun Software Park (Phase I) |
Entity Address, Address Line Three | No. 8 Dongbeiwang West Road |
Entity Address, City or Town | Haidian District, Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100193 |
Contact Personnel Name | Tong He, Director of Finance |
City Area Code | +86-010 |
Local Phone Number | 5874-1858 |
Contact Personnel Email Address | IR@canaan-creative.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 391,310 | $ 59,971 | ¥ 516,607 |
Restricted cash | 4,494 | 689 | 8,239 |
Short-term investments | 62,386 | 9,561 | 11,005 |
Accounts receivable | 7,128 | 1,092 | 2,872 |
Inventories | 225,522 | 34,563 | 196,067 |
Prepayments and other current assets | 316,366 | 48,484 | 206,020 |
Total current assets | 1,007,206 | 154,360 | 940,810 |
Non-current assets: | |||
Property, equipment and software | 12,193 | 1,869 | 22,602 |
Right-of-use assets, net | 14,422 | 2,210 | 22,764 |
Other non-current assets | 2,530 | 388 | 5,250 |
Non-current financial investment | 25 | 4 | |
Total non-current assets | 29,170 | 4,471 | 50,616 |
Total assets | 1,036,376 | 158,831 | 991,426 |
Current liabilities: | |||
Short-term debts | 34,754 | 5,326 | 99,903 |
Accounts payable | 37,407 | 5,733 | 99,050 |
Notes payable | 13,963 | 2,140 | 27,462 |
Contract liabilities | 430,388 | 65,960 | 8,288 |
Accrued liabilities and other current liabilities | 63,343 | 9,708 | 40,691 |
Lease liabilities, current | 12,621 | 1,934 | 9,838 |
Total current liabilities | 592,476 | 90,801 | 285,232 |
Non-current liabilities: | |||
Lease liabilities, non-current | 3,322 | 509 | 13,399 |
Other non-current liabilities | 8,020 | 1,229 | |
Total liabilities | 603,818 | 92,539 | 298,631 |
Contingencies (Note 19) | |||
Shareholders' equity: | |||
Ordinary shares (US$0.00000005 par value; 1,000,000,000,000 shares authorized, 2,372,222,222 shares issued, 2,350,123,270 and 2,328,326,132 shares outstanding as of December 31, 2019 and 2020, respectively) | 1 | 1 | |
Subscriptions receivable from shareholders | (1) | (1) | |
Treasury stocks (US$0.00000005 par value; 22,098,952 and 43,896,090 shares as of December 31, 2019 and 2020, respectively) | (23,915) | (3,665) | |
Additional paid-in capital | 1,634,619 | 250,516 | 1,631,609 |
Statutory reserves | 97,307 | 14,913 | 97,307 |
Accumulated other comprehensive loss | (79,780) | (12,227) | (55,542) |
Accumulated deficit | (1,195,673) | (183,245) | (980,579) |
Total shareholders' equity | 432,558 | 66,292 | 692,795 |
Total liabilities and shareholders' equity | ¥ 1,036,376 | $ 158,831 | ¥ 991,426 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Nov. 25, 2020 | Dec. 31, 2019 | Jun. 30, 2018 | Mar. 23, 2018 |
Ordinary shares, par value | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.0001 | |
Ordinary shares, shares authorized | 1,000,000,000,000 | 1,000,000,000,000 | 1,000,000,000,000 | 500,000,000 | |
Ordinary shares, shares issued | 2,372,222,222 | 2,372,222,222 | 500,000,000 | ||
Ordinary shares, shares outstanding | 2,328,326,132 | 2,328,326,132 | 2,350,123,270 | ||
Treasury stocks, par value | $ 0.00 | $ 0.00 | |||
Treasury stock, shares | 43,896,090 | 22,098,952 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Net revenues | ||||
Leases revenue | ¥ 18,963 | $ 2,906 | ¥ 24,548 | |
Other revenues | 901 | 139 | 2,548 | ¥ 741 |
Total net revenues | 447,686 | 68,612 | 1,422,623 | 2,705,291 |
Cost of revenues | (409,922) | (62,823) | (1,938,626) | (2,197,172) |
Gross profit/(loss) | 37,764 | 5,789 | (516,003) | 508,119 |
Operating expenses: | ||||
Research and development expenses | (140,041) | (21,462) | (168,982) | (189,680) |
Sales and marketing expenses | (19,980) | (3,062) | (21,917) | (38,731) |
General and administrative expenses | (131,624) | (20,172) | (347,633) | (146,684) |
Total operating expenses | (291,645) | (44,696) | (538,532) | (375,095) |
Income/(Loss) from operations | ||||
Income/(loss) from operations | (253,881) | (38,907) | (1,054,535) | 133,024 |
Interest income | 3,153 | 483 | 3,853 | 4,234 |
Investment income | 5,844 | 896 | 3,055 | 3,162 |
Interest expense and guarantee fee | (3,587) | (550) | (20,038) | (53,069) |
Foreign exchange (loss)/gains, net | 2,419 | 371 | 6,809 | (1,178) |
Value added tax refunds | ¥ | 1,253 | 110,231 | ||
Other income, net | 30,958 | 4,745 | 25,093 | 3,838 |
Income/(loss) before income tax expense | (215,094) | (32,962) | (1,034,510) | 200,242 |
Income tax expense | 0 | 0 | 0 | (77,810) |
Net income/(loss) | (215,094) | (32,962) | (1,034,510) | 122,432 |
Foreign currency translation adjustment, net of nil tax | (24,238) | (3,715) | 9,688 | (65,230) |
Total comprehensive loss | ¥ (239,332) | $ (36,677) | ¥ (1,024,822) | ¥ 57,202 |
Weighted average number of shares used in per share calculation: | ||||
— Basic | 2,345,703,779 | 2,345,703,779 | 2,153,172,769 | 1,964,499,660 |
— Diluted | 2,345,703,779 | 2,345,703,779 | 2,153,172,769 | 1,978,161,073 |
Net earnings/(loss) per share (cent per share) | ||||
— Basic | (per share) | ¥ (9.17) | $ (1.41) | ¥ (48.05) | ¥ 6.23 |
— Diluted | (per share) | ¥ (9.17) | $ (1.41) | ¥ (48.05) | ¥ 6.19 |
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | ¥ 2,950 | $ 452 | ¥ 270,242 | ¥ 18,586 |
Research and development expenses | ||||
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | 652 | 100 | 22,465 | 9,611 |
Sales and marketing expenses | ||||
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | 41 | 6 | 358 | 1,088 |
General and administrative expenses | ||||
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | 2,257 | 346 | 247,419 | 7,887 |
Product | ||||
Net revenues | ||||
Net revenues | 427,522 | 65,521 | 1,392,859 | 2,698,594 |
Service | ||||
Net revenues | ||||
Net revenues | ¥ 300 | $ 46 | ¥ 2,668 | ¥ 5,956 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Initial Public OfferingCNY (¥) | Ordinary SharesCNY (¥)shares | Subscription Receivables From ShareholdersCNY (¥) | Treasury StockCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalInitial Public OfferingCNY (¥) | Statutory ReservesCNY (¥) | Accumulated Other Comprehensive LossCNY (¥) | Retained Earnings (Accumulated Deficit)CNY (¥) |
Beginning Balance at Dec. 31, 2017 | ¥ 857,241 | ¥ 1 | ¥ (1) | ¥ 423,642 | ¥ 28,806 | ¥ 404,793 | |||||
Beginning Balance (in shares) at Dec. 31, 2017 | shares | 2,000,000,000 | ||||||||||
Ordinary share contributed by shareholders for the equity incentive plan | ¥ 51,624,000 | ||||||||||
Ordinary share contributed by shareholders for the equity incentive plan (in shares) | shares | (51,624,000) | ||||||||||
Share-based compensation expense | 18,586 | 18,586 | |||||||||
Foreign currency translation | (65,230) | ¥ (65,230) | |||||||||
Deemed distribution | (692,051) | (287,258) | (404,793) | ||||||||
Net income/(loss) | 122,432 | 122,432 | |||||||||
Profit appropriations to statutory reserves | 68,501 | 68,501 | (68,501) | ||||||||
Ending Balance at Dec. 31, 2018 | 240,978 | ¥ 1 | (1) | 154,970 | 97,307 | (65,230) | 53,931 | ||||
Ending Balance (in shares) at Dec. 31, 2018 | shares | 1,948,376,000 | 51,624,000 | |||||||||
Issuance of ordinary shares | 669,559 | 669,559 | |||||||||
Issuance of ordinary shares (in shares) | shares | 222,222,222 | ||||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance | ¥ 536,629 | ¥ 536,629 | |||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance (in Shares) | shares | 150,000,000 | ||||||||||
Ordinary share contributed by shareholders for the equity incentive plan (in shares) | shares | (403,157) | 403,157 | |||||||||
Share Repurchase (Shares) | shares | 150,000,000 | ||||||||||
Share Repurchase | ¥ (536,629) | ¥ (536,629) | |||||||||
Share-based compensation expense | 270,242 | 270,242 | |||||||||
Foreign currency translation | 9,688 | 9,688 | |||||||||
Vesting of restricted share units and restricted shares | 209 | 209 | |||||||||
Vesting of restricted share units and restricted shares (in shares) | shares | 29,928,205 | (29,928,205) | |||||||||
Net income/(loss) | (1,034,510) | (1,034,510) | |||||||||
Profit appropriations to statutory reserves | 0 | ||||||||||
Ending Balance at Dec. 31, 2019 | ¥ 692,795 | ¥ 1 | (1) | 1,631,609 | 97,307 | (55,542) | (980,579) | ||||
Ending Balance (in shares) at Dec. 31, 2019 | shares | 2,350,123,270 | 2,350,123,270 | 2,350,123,270 | 22,098,952 | |||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance | ¥ 23,915 | ¥ 23,915 | |||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance (in Shares) | shares | (25,799,190) | 25,799,190 | |||||||||
Share Repurchase (Shares) | shares | (25,799,190) | 25,799,190 | |||||||||
Share Repurchase | (23,915) | ¥ (23,915) | |||||||||
Share-based compensation expense | 2,950 | 2,950 | |||||||||
Foreign currency translation | (24,238) | $ (3,715) | (24,238) | ||||||||
Vesting of restricted share units and restricted shares | 60 | 60 | |||||||||
Vesting of restricted share units and restricted shares (in shares) | shares | 4,002,052 | (4,002,052) | |||||||||
Net income/(loss) | (215,094) | (32,962) | (215,094) | ||||||||
Profit appropriations to statutory reserves | 0 | ||||||||||
Ending Balance at Dec. 31, 2020 | ¥ 432,558 | $ 66,292 | ¥ 1 | ¥ (1) | ¥ (23,915) | ¥ 1,634,619 | ¥ 97,307 | ¥ (79,780) | ¥ (1,195,673) | ||
Ending Balance (in shares) at Dec. 31, 2020 | shares | 2,328,326,132 | 2,328,326,132 | 2,328,326,132 | 43,896,090 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities | ||||
Net income/(loss) | ¥ (215,094) | $ (32,962) | ¥ (1,034,510) | ¥ 122,432 |
Adjustments for: | ||||
Depreciation and amortization of property, equipment and software | 11,852 | 1,816 | 13,704 | 13,145 |
Depreciation of operating lease assets | 19,389 | 2,971 | 20,458 | |
Foreign exchange loss/(gain) | (14,094) | (2,160) | (9,636) | 2,224 |
(Reversal)/provision of allowance for doubtful receivables | 4,849 | 743 | (2,152) | |
Loss on disposal of property, equipment and software | 96 | 15 | 2,033 | |
Share-based compensation expense | 2,950 | 452 | 270,242 | 18,586 |
Deferred income tax expenses | 0 | 0 | 1,062 | |
Investment income | (5,844) | (896) | (3,055) | (3,162) |
Amortization of right-of-use asset | 13,432 | 2,059 | 10,928 | |
Interest of lease liabilities | 1,938 | 297 | 1,746 | |
Impairment charge to non-current financial investment | 2,475 | 379 | ||
Changes in assets and liabilities: | ||||
Accounts receivable | (4,499) | (690) | 20,815 | (20,228) |
Inventories | (48,844) | (7,486) | 369,147 | (325,825) |
Prepayments and other current assets | (99,127) | (15,194) | (20,256) | 449,657 |
Income tax receivable | 27,054 | (27,054) | ||
Amount due from a related party | 68 | (68) | ||
Other non-current assets | 2,720 | 417 | 1,090 | (2,144) |
Prepaid interest expense and guarantee fee | (149) | (23) | 7,873 | (7,970) |
Accounts payable | (61,643) | (9,447) | 51,810 | (3,198) |
Notes payable | (13,499) | (2,069) | 27,462 | |
Contract liabilities | 422,100 | 64,690 | 1,384 | (195,573) |
Income tax payable | (609) | (23,255) | ||
Accrued liabilities and other current liabilities | 29,591 | 4,535 | (24,545) | (11,253) |
Other non-current liabilities | 8,020 | 1,229 | ||
Lease liabilities | (14,322) | (2,195) | (11,228) | |
Net cash (used in)/provided by operating activities | 42,297 | 6,481 | (280,058) | (12,743) |
Cash flows from investing activities: | ||||
Payment for short-term investments | (1,334,077) | (204,456) | (554,700) | (1,405,520) |
Proceeds from disposal of short-term investments | 1,288,540 | 197,477 | 546,750 | 1,498,682 |
Purchase of property, equipment and software | (2,176) | (333) | (8,380) | (24,910) |
Proceeds from disposal of property, equipment and software | 637 | 98 | 211 | |
Payment for non-current financial investments | (2,500) | (383) | ||
Net cash inflow arising from disposal of subsidiaries | 15,515 | |||
Net cash provided by/(used in) investing activities | (49,576) | (7,597) | (16,330) | 83,978 |
Cash flows from financing activities: | ||||
Proceeds from issuance of ordinary shares | 669,559 | |||
Payment for repurchase of ordinary shares | (23,915) | (3,665) | ||
Prepayment under share repurchase agreement | (16,146) | (2,474) | ||
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance | 544,122 | |||
Payment for cost of issuance | (6,879) | (1,054) | ||
Proceeds from borrowings | 152,000 | 23,295 | 200,000 | 1,952,198 |
Repayment of borrowings | (217,000) | (33,257) | (1,135,730) | (964,947) |
Payment for deemed distribution (Note 1(b)) | (692,051) | |||
Net cash provided by/(used in) financing activities | (111,940) | (17,155) | 277,951 | 295,200 |
Net increase/(decrease) in cash and cash equivalents, and restricted cash | (119,219) | (18,271) | (18,437) | 366,435 |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (9,823) | (1,505) | (1,927) | 2,275 |
Cash and cash equivalents, and restricted cash at the beginning of year | 524,846 | 80,436 | 545,210 | 176,500 |
Cash and cash equivalents, and restricted cash at the end of year | 395,804 | 60,660 | 524,846 | 545,210 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 3,736 | 573 | 11,583 | 35,773 |
Cash paid for guarantee fee | 7,145 | 19,146 | ||
Cash paid for income tax | 3,510 | ¥ 127,155 | ||
Supplemental disclosure of non-cash investing and financing activities: | ||||
Acquisition of operating lease assets | 135,276 | 20,732 | 99,523 | |
Disposal of operating lease assets | ¥ 115,887 | $ 17,760 | 79,065 | |
Accrued initial public offering related cost | ¥ 7,493 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. Organization and principal activities (a) Principal activities Canaan Inc. (the “Company”), an exempted company with limited liability incorporated in the Cayman Islands and its subsidiaries are collectively referred to as the “Group”. The Group are principally engaged in integrated circuit (the “IC”) design and sale and lease of final system products by integrating its IC products for Bitcoin mining and related components in the People’s Republic of China (the “PRC”) and other countries and regions. The Group utilizes third-party suppliers to fabricate, package and test the IC products. As of December 31, 2020, the Company’s subsidiaries are as follows: Name of subsidiaries Date of incorporation Place of incorporation Equity interest held Principal activities Canaan Creative (HK) Holdings Limited February 22, 2018 Hong Kong 100 % Research and Hangzhou Canaan Creative Information Technology Co., Ltd. April 9, 2013 Hangzhou, China 100 % Research and Canaan Creative Co., Ltd. April 1, 2013 Beijing, China 100 % Research and Langfang Creative Technology Co., Ltd. May 15, 2014 Langfang, China 100 % Assembly of system Hangzhou Ruihong Technology Co., Ltd. June 30, 2015 Hangzhou, China 100 % Supply chain and Hangzhou Canaan Blockchain Technology Co., Ltd. November 11, 2016 Hangzhou, China 100 % Research and Canaan Convey Co., Ltd. November 2, 2017 Beijing, China 100 % International Zhejiang Avalon Technology Co., Ltd. December 5, 2017 Hangzhou, China 100 % Distribution of Canaan Mingxin (Beijing) Technology Co., Ltd. December 24, 2018 Beijing, China 100 % International Hangzhou Canaan Chuangxin Technology Co., Ltd. December 26, 2018 Hangzhou, China 100 % Research and (b) Reorganization Prior to the incorporation of the Company, the Group’s business was carried out by Hangzhou Canaan Creative Information Technology Co., Ltd. (“Hangzhou Canaan”) and its subsidiaries. Hangzhou Canaan was established by co-founders “Co-Founders”). 1) On February 6, 2018, the Company was incorporated in the Cayman Islands by the Co-Founders. 2) On February 22, 2018, Canaan Creative (HK) Holdings Limited (“Canaan HK”) was incorporated in Hong Kong with 100% ownership by the Company. 3) On March 12, 2018 4) On March 21, 2018, Canaan HK acquired the 1% equity interest in Hangzhou Canaan from WWXD Limited and the remaining 99% equity interest in Hangzhou Canaan from its other shareholders at an aggregate cash consideration of RMB692,051, which was recorded as deemed distribution to these shareholders. This deemed distribution reduced retained earnings with amount of RMB404,793, and in the absence of retained earnings, reduced additional paid-in As the shareholdings in the Company and Hangzhou Canaan were with a high degree of common ownership immediately before and after the Reorganization, even though no single investor controlled Hangzhou Canaan or Canaan Inc., the transaction of the Reorganization was determined as recapitalization with lack of economic substance, and was accounted for in a manner similar to a common control transaction. Consequently, the financial information of the Group is presented on a carryover basis for all periods presented. The number of outstanding shares in the consolidated balance sheets, the consolidated statements of changes in shareholders’ equity, and per share information including the net earnings/(loss) per share have been presented retrospectively as of the beginning of the earliest period presented on the consolidated financial statements to reflect the final shares issued in the Reorganization. On November 21, 2019, the Company consummated its initial public offering (the “IPO”) on the Nasdaq Global Market, where 10,000,000 American Depositary Shares (“ADSs”) were issued at the price of US$9.00 per ADS for a total gross proceeds of US$90 million. Each ADS represents 15 Class A ordinary shares. |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies | 2. Principal Accounting Policies (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates. The Company believes that accounting estimation of variable consideration for revenue recognition, write-down for inventories and prepayments, valuation and recognition of share-based compensation reflect significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from these estimates. (c) Consolidation The Group’s consolidated financial statements include the financial statements of the Company and its subsidiaries, for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in other than the functional currencies are re-measured re-measured The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the Company and its subsidiaries incorporated outside of PRC are translated into RMB at fiscal year-end i . (e) Convenience translation The United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the rate of US$1.00=RMB6.5250 on December 31, 2020, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2020, or at any other rate. (f) Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value meas u The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, for the assets or liabilities either directly or indirectly. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, non-current As of December 31, 2019 and 2020, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and other liabilities approximated to their fair values reported in the consolidated balance sheets due to the short term nature of these instruments. On a recurring basis, the Group measures its short-term investments at fair value. The following table sets forth the Group’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2019 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 11,005 — 11,005 As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 62,386 — 62,386 The Group values its investments in wealth management products based on quoted prices of similar products provided by banks at the end of each period, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. (g) Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use. (h) Restricted cash Restricted cash includes cash and cash equivalents that are not readily available for the Company’s normal disbursements. Restricted cash are primarily related to cash deposits with banks and financial institutions required as part of collateral for the Company’s notes payable (Note 11) arrangements. (i) Short-term investments Short-term investments include investments in wealth management products issued by certain banks which are redeemable by the Company at any time. The wealth management products are unsecured with variable interest rates. The Company measures the short-term investments at fair value and fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The change in fair value is recorded as investment income amounted to RMB3,162, RMB3,055 and RMB5,844 in the consolidated statements of comprehensive income/(loss) for the years ended December 31, 2018, 2019 and 2020, respectively. (j) Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and based on factors listed in the following paragraph. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability . (k) Inventories Inventories, consisting of finished goods, work in process, raw materials and goods in transit, which are purchased from contract manufacturers and component suppliers. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Group takes ownership, risks and rewards of the products purchased. In accordance with ASC 855-10-55-1(b), (l) Operating lease assets Operating lease assets consist of lease contracts for system products for Bitcoin mining with customers, which are reclassified from inventories at the beginning of lease period. Operating lease assets are recorded at cost less accumulated depreciation and impairment losses. Depreciation is provided using a straight-line method over the estimated economic lives which is generally 18 months. Depreciation expenses are included in costs of revenues. The Group monitors accounting estimates relating to the depreciation period. Changes made to estimates are reflected in depreciation expense on a prospective basis. As of December 31, 2019 and 2020, the Company did not have any operating lease assets. (m) Property, equipment and software Property, equipment and software are stated at historical cost less accumulated depreciation, amortization and impairment loss, if any. Depreciation and amortization is calculated using the straight-line method over the shorter of their estimated useful lives of these assets or the term of the related leases. The estimated useful lives are as follows: Leasehold improvements the shorter of their useful lives and the lease terms Computers and electronic equipment 3 to 5 years Mechanical equipment 5 years Motor vehicles 5 years Software 3 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income/(loss). Construction in progress represents assets under construction. Construction in progress is transferred to property, equipment and software and depreciation or amortization commences when an asset is ready for its intended use. (n) Non-current The Group’s non-current in-substance non-current non-current During the year ended December 31, 2020, the Group recognized impairment charge of RMB2,475 and recorded in other income, net. (o) Impairment of long-lived assets For other long-lived assets including property, equipment and software, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. (p) Contract liabilities Cash proceeds received from customers before product delivery is recognized as contract liabilities and is recognized as revenues when revenue recognition criteria are met. The prepayments received from customers as of December 31, 2019 and 2020 was RMB8,288 and RMB430,388, respectively. The revenue recognized during the years ended December 31, 2018, 2019 and 2020 for the beginning balance of contract liability was RMB202,477, RMB6,904 and RMB8,008, respectively. (q) Revenue from contracts with customers (ASC 606) The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. Products revenue The Group generates revenue primarily from the sale of Bitcoin mining machines directly to a customer, such as a business or individual engaged in Bitcoin mining activities. As the Bitcoin price fluctuates, the Group may adjust the selling price of Bitcoin mining machines on a weekly basis, as customers are only willing to pay for machines based on their ability to recover their investment through mining Bitcoin over a relatively short period of time. The Group’s sales arrangements usually require a full prepayment before the delivery of products. The Group started to offer credit sales to certain significant, long-standing customers in China in 2018. The payment terms under credit sales generally consist of 50% down payment and 50% subsequent payments over a period of 90 to 180 days. With the adoption of a more dynamic pricing strategy, the Group expects to accept a lower amount of consideration (as compared to fixed and promised consideration that is set out in the sales contracts) from its credit sales customers if the price of Bitcoin decreases in the post-sale period; hence providing implicit price concession to these customers and the ultimate amount of price concessions to be provided to these credit sales customers is highly dependent on the changes of Bitcoin prices. Revenues from product sales are recorded at the net sales price (transaction price), which includes an estimation of variable consideration which primarily results from implicit price concessions on credit sales. The amount of variable consideration is included in the transaction price to the extent it is not constrained and that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the estimates. If actual results in the future vary from estimates, the Group will adjust these estimates, which would affect revenue and earnings in the period when such changes are known. With respect to the determination of variable consideration resulting from the amount of implicit price concession, since the Bitcoin market price is volatile and unpredictable and changes of Bitcoin price, will greatly affect the implicit price concessions to be provided by the Group to its credit sales customers, the Group historically has not been able to overcome the constraint on variable consideration at the time of product sale or at subsequent period-end period-end. The Group recognizes products revenue at a point in time based on management’s evaluation of when the control of the products have been passed to customers. The transfer of control is considered complete when products have been picked up by or shipped to the Group’s customers . The Group offers a standard product warranty of no longer than 6 months that the product will operate under normal use. At the time revenue is recognized, an estimate of future warranty costs is recorded as a component of cost of revenues. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. The amount of total warranty costs incurred was immaterial for the Services revenue The Company also generates a small portion of revenue from its maintenance services under separate contracts. Revenue from the maintenance service to the customer is recognized when the related services have been rendered to the customers. (r) Revenue from lease arrangements as lessor (ASC 842) From July 2019, the Group started to generate revenue from the leases of system products for Bitcoin mining to its customers. The leases cannot generally be extended or terminated at the customer’s discretion. However, upon the mutual agreement of the parties, the leases can be early terminated after three months. Rental charges are computed based on a time rate of machine’s type and rental period. The leases of system products meet the classification of operating leases, and revenues from operating leases are recognized on a straight-line basis over the contract terms. (s) Value-added-tax Value added tax recoverable represent amounts paid by the Group for purchases. The surcharges (i.e., Urban construction and maintenance tax, educational surtax, local educational surtax), vary from 10% to 12% of the value-added-tax (t) Cost of revenues Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists of product costs, including costs of raw material, contract manufacturers for production, shipping and handling costs, manufacturing and tooling equipments depreciation, warehousing costs and slow-moving, obsolete inventories write-downs, prepayments write-downs and tax surcharges. (u) Research and development expenses Research and development expenses consist primarily of salary and welfare for research and development personnel, consulting and contractor expenses, testing and tooling materials and other expenses in associated with research and development personnel. The Group recognizes research and development expenses as expense when incurred. (v) Sales and marketing expenses Sales and marketing expenses consist primarily of salary and welfare for sales and marketing personnel, promotion and marketing expenses and other expenses in associated with sales and marketing personnel. Advertising expense are expensed as incurred and included in selling and marketing expenses. The advertising expenses were RMB2,124, RMB2,377 and RMB3,701 for the years ended December 31, 2018, 2019 and 2020, respectively. (w) General and administrative expenses General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses and depreciation in associated with general and administrative personnel, allowance for doubtful receivables, entertainment expense, general office expense and professional service fees. (x) Government grants Government grants represent cash subsidies received from PRC government. Cash subsidies which have no defined rules and regulations to govern the criteria necessary for companies to enjoy the benefits are recognized as “Other income, net” when received. Total government grants received were RMB8,058, RMB24,926 and RMB32,499 for the years ended December 31, 2018, 2019 and 2020, respectively. (y) VAT refunds In accordance with Caishui (2011) No. 100 issued by State Tax Bureau, Hangzhou Canaan is qualified as enterprise of selling self-developed software products and enjoying an tax refund for the excess of 3% of its actual tax burden after the VAT is levied at the 16% or 13% tax rate since April 2019.Tax refund is recognized when received. Total VAT refunds received were RMB110,231, RMB1,253 and nil for the years ended December 31, 2018, 2019 and 2020, respectively. (z) Lease arrangement as lessee The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use non-current ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. (aa) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the consolidated statements of comprehensive income/(loss) amounted to RMB20,618, RMB23,026 and RMB14,919 for the years ended December 31, 2018, 2019 and 2020, respectively. (ab) Income taxes The Group accounts for income taxes under the liability method. Under the liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the tax income rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded if it is more likely than not that some portion or all of a deferred income tax assets will not be realized in the foreseeable future. The Group evaluates its uncertain tax positions using the provisions of ASC 740-10, Income Taxes (ac) Share-based compensation The Company grants restricted shares and share options to eligible employees and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation. Employees’ share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at the grant date if no vesting conditions are required; or b) for share-based awards granted with only service conditions, using the graded vesting method, net of estimated forfeitures, over the vesting period; or c) for share-based awards granted with service conditions and the occurrence of an IPO as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the IPO, using the graded vesting method; or d) for share-based awards with service conditions and other performance condition, using the graded vesting method, net of estimated pre-vesting A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Group calculates incremental compensation expense of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period when the modification occurs. For awards not being fully vested, the Group recognizes the sum of the incremental compensation expense and the remaining unrecognized compensation expense for the original awards over the remaining requisite service period after modification. Share-based compensation in relation to the restricted shares is measured based on the fair market value of the Group’s ordinary shares at the grant date of the award. Prior to the listing, estimation of the fair value of the Group’s ordinary shares involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, including discount rate, and subjective judgments regarding the Group’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. Share-based compensation in relation to the share options is estimated using the Binomial Option Pricing Model. The determination of the fair value of share options is affected by the share price of the Group’s ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple and expected dividend yield. The fair value of these awards was determined with the assistance from an independent valuation firm. (ad) Statutory reserves The Group’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as offsetting the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group has not done so. Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances. The Group has made RMB68,501, nil and nil appropriations to statutory reserve mainly for Hangzhou Canaan for the years ended December 31, 2018, 2019 and 2020, respectively. (ae) Repurchase of share The Group accounts for treasury stock using the cost method. Under the cost method, when the Company’s shares are acquired for purposes other than retirement, the costs of the acquired stock will be shown separately as a deduction from the total of capital stock. (af) Earnings/ (loss) per share Basic earnings/(loss) per share is computed by dividing net income/(loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. Diluted earnings/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the period. Dilutive equivalent shares are excluded from the computation of diluted earnings/(loss) per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s ordinary shares issuable upon the conversion of the share-based awards, using the treasury stock method . (ag) Comprehensive income/(loss) Comprehensive income/(loss) is defined as the change in shareholders’ equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income/(loss) is reported in the consolidated statements of comprehensive income/(loss). Accumulated other comprehensive loss of the Group include the foreign currency translation adjustments. (ah) Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Group does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Group has only one operating segment and one reportable segment. The Group’s long-lived assets are substantially located in the PRC. The Group’s revenue segregated by geographic region is as follows: Geographic region For the Years Ended December 31, 2018 2019 2020 PRC 2,057,632 1,063,630 379,418 Kazakhstan — — 47,792 Hong Kong 91,028 11,216 12,301 United States of America 284,965 46,045 3,528 Canada 25,548 22,738 162 Japan — 236,206 — Other foreign countries 246,118 42,788 4,485 Total 2,705,291 1,422,623 447,686 (ai) Recently issued accounting pronouncements i. New and amended standards adopted by the Group: In August 2018, the FASB released ASU 2018-13, 2018-13 2018-13 ii. New and amended standards not yet adopted by the Group: In June 2016, the FASB issued ASU No. 2016-13, 2016-13”). 2018-19, 2018-19”), 2016-13. 2019-10, 2016-13 2018-19 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarify existing guidance. The standard is effective for the Company for fiscal years beginning after 15 December 2021, and interim periods within fiscal years beginning after 15 December 2022. Early adoption is permitted. The Group is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In January 2020, the FASB issued Accounting Standards Update No. 2020-01, 815-10-15-141(a) 815-10-15-141 |
Risks and Concentration
Risks and Concentration | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Risks and Concentration | 3. Risks and concentration (a) Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments and accounts receivable. The Group places its cash and cash equivalents and restricted cash with financial institutions with high credit ratings and quality. The Group conducts credit evaluations of customers, and generally does not require collateral or other security from its customers. The Group establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. Accounts receivable are unsecured and are derived from revenue earned through customers. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them . As of December 31, 2019 and 2020, accounts receivable were RMB2,872 and RMB7,128, respectively . Accounts receivable concentration of credit risk is as below: As of December 31, 2019 2020 Customer A * 96 % Customer B 31 % * Customer C 28 % * Customer D 14 % * Customer E 10 % * * Less than 10% Customers which contributed more than 10% of total revenue are as below: For the Years Ended 2018 2019 2020 Customer F * * 29 % Customer G * 17 % * Customer H * * 16 % Customer I 14 % * * * Less than 10% (b) Supplier concentration The Group purchased integrated circuits, an important component of its products, mainly from Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (“TSMC”) for the years ended December 31, 2018 and 2019. For the year ended December 31, 2020 the Group’s purchases of its integrated circuits mainly from Samsung Electronics Co., Ltd. and its authorized distributors (collectively, “Samsung”) and Semiconductor Manufacturing International Corporation and its subsidiaries (collectively, “SMIC”). Although only a limited number of manufacturers for such integrated circuits are available, management believes that they could change their suppliers within these manufacturers which provided integrated circuits on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would affect operating results adversely. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 4. Cash and cash equivalents Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use. The following table sets forth a breakdown of cash and cash equivalents by currency denomination and jurisdiction as of December 31, 2019 and 2020: RMB RMB equivalent (US$) RMB (HK$) Total in China Overseas China Overseas December 31, 2019 59,705 435,152 20,381 1,369 516,607 December 31, 2020 110,241 32,352 248,716 1 391,310 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | 5. Accounts receivable As of December 31, 2019 2020 Accounts receivable, gross 2,872 7,371 Less: allowance for doubtful accounts — (243 ) Accounts receivable 2,872 7,128 The following table presents movement of the allowance for doubtful accounts: For the Years Ended 2018 2019 2020 Balance at the beginning of the year (5,932 ) (3,780 ) — Provisions for doubtful receivables — — (243 ) Collection of amounts previously in dispute 2,152 — — Write-off — 3,780 — (3,780 ) — (243 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories consist of the following: As of December 31, 2019 2020 Raw materials 58,627 195,939 Finished goods 127,452 26,963 Work in process 8,728 2,620 Goods in transit 1,260 — Total 196,067 225,522 During the years ended December 31, 2018, 2019 and 2020, the Group recorded write-down of RMB427,163, RMB526,473 and RMB44,916 for the obsolete inventories in cost of revenues, respectively. For the rs |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments and Other Assets | 7. Prepayments and other assets The current and non-current As of December 31, 2019 2020 Prepayments and other current assets Prepayments to vendors (Note a) 35,801 203,063 VAT recoverable 122,757 87,879 Prepayment for repurchase of ordinary shares — 15,825 VAT refund for export sales (Note b) 35,507 5,510 Others (Note c) 11,955 4,089 206,020 316,366 Non-current Rental and other deposits 5,250 2,530 Note a: Prepayments to vendors mainly represent prepayments made to third-party suppliers for foundry service. The Group also records a provision for the prepayment to third-party suppliers when the Group believes that the net realizable value (being the estimated selling price of final products, less the costs of completion and selling expenses) is less than carrying amount. For the years ended December 31, 2018, 2019 and 2020, the Group recorded a write-down of RMB358,842, RMB202,522 and nil for the prepayment to third-party suppliers in cost of revenues. Note b: Canaan Convey Co., Ltd. is entitled to VAT refund for its export sales. Note c: During the years ended December 31, 2018, 2019 and 2020, the Group recorded provision of allowance for other receivables of nil, nil and RMB4,606, respectively. |
Property, Equipment and Softwar
Property, Equipment and Software | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software | 8. Property, equipment and software Property, equipment and software consist of the following: As of December 31, 2019 2020 Cost: Leasehold improvements 28,542 17,130 Computers and electronic equipment 18,721 14,540 Software 470 1,955 Construction in progress 1,325 1,325 Mechanical equipment 1,181 1,181 Motor vehicles 1,739 461 Total cost 51,978 36,592 Less: Accumulated depreciation and amortization (29,376 ) (24,399 ) Property, equipment and software, net 22,602 12,193 Depreciation and amortization expenses recognized for the years ended December 31, 2018, 2019 and 2020 are summarized as follows: For the Years Ended December 31, 2018 2019 2020 General and administrative expenses 6,667 8,062 7,680 Research and development expenses 5,197 3,662 3,874 Cost of revenues 1,260 1,899 217 Sales and marketing expenses 21 81 81 Total 13,145 13,704 11,852 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 9. Leases The Company leases facilities under non-cancellable (a) The components of lease expenses were as follows: For the Years Ended December 31, 2019 2020 Lease cost: Amortization of right-of-use 10,928 13,432 Interest of lease liabilities 1,746 1,938 Expenses for short-term lease within 12 months 605 505 Total lease cost 13,279 15,875 (b) Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2019 2020 Cash paid for amounts included in the measurement of lease liabilities: 11,228 14,322 Right-of-use — 5,516 Reductions to ROU assets resulting from reductions to lease obligations: — 427 (c) Supplemental balance sheet information related to leases was as follows: As of December 31, 2019 2020 Weighted-average remaining lease term Operating leases 1.2 year 1.3 year Weighted-average discount rate Operating lease 7.14% per annum 6.73% per annum (d) Maturities of lease liabilities were as follows: Years Ending December 31, As of December 31, 2020 2021 13,200 2022 3,603 Total undiscounted lease payments 16,803 Less: imputed interest (860 ) Total lease liabilities 15,943 |
Short-Term Debts
Short-Term Debts | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Debts | 10. Short-term debts As of December 31, 2019 2020 Short-term bank loans 99,903 34,754 During the years ended December 31, 2019 and 2020, the Group entered into certain short-term loan agreements with various banks with aggregated principal amount of RMB200,000 with interest rates ranging from 4.35% to 4.79% per annum and RMB152,000 with interest rates ranging from 2.70% to 2.85% per annum, respectively. As of December 31, 2019 and 2020, the aggregated outstanding principal amounts under these agreements were RMB100,000 bearing interest rate 4.35% per annum and RMB35,000 bearing interest rate 2.84% per annum, respectively. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Notes Payable [Abstract] | |
Notes Payable | 11. Notes payable Notes payable represent payables in the form of notes issued by the Group. The notes are endorsed by banks to ensure that noteholders will be paid upon maturity. The Group is required to maintain a certain balance of cash deposit in designated bank accounts for the notes payable outstanding as of December 31, 2019 and |
Accrued Liabilities and Other L
Accrued Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities and Other Liabilities | 12. Accrued liabilities and other liabilities As of December 31, 2019 2020 Accrued liabilities and other current liabilities VAT received from customers related to contract liabilities 937 28,958 Salary and welfare payable 24,034 25,148 Rental deposits — 4,011 Refund from depository bank – current — 2,060 Other tax payables 2,225 874 Professional service fee accrual 7,493 — Other service fee payables 2,196 — Others 3,806 2,292 Total 40,691 63,343 Non-current Refund from depository bank – non-current — 8,020 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Ordinary Shares | 13. Ordinary shares On March 23, 2018, Canaan Inc. was incorporated as an exempted company with limited liability company with authorized share capital of US$50,000 divided into 500,000,000 shares with par value US$0.0001 each. In June 2018, the authorized share capital of US$50,000, which represented 500,000,000 issued shares, was subdivided into 1,000,000,000,000 shares of a par value of US$ 0.00000005 In February 2019, the Company issued 222,222,222 ordinary shares to existing shareholders at a price of US$0.45 per share for a total cash consideration of US$100 million. Out of the 222,222,222 ordinary shares issued, 403,157 issued ordinary shares were contributed by the then existing shareholders to the Trust for future share awards (Note 14). On November 21, 2019, the Company completed its IPO and became listed on the Nasdaq Global Market by issuing 10,000,000 ADSs at the price of US$9.00 per ADS for a total gross proceeds of US$90 million. Each ADS represents 15 Class A ordinary shares. Upon the completion of the Company’s IPO, the Company’s authorized share capital was re-designated Effective November 25, 2020, the Board of Directors approved conversion of 45,000,000 Class B ordinary shares into 45,000,000 Class A ordinary shares. As of December 31, 2020, the authorized ordinary shares are 1,000,000,000,000, of which 2,372,222,222 shares were issued and 2,328,326,132 shares were outstanding. These outstanding shares consist of (1) 2,016,701,688 Class A ordinary shares and (2) 311,624,444 Class B ordinary shares, which were held by the Chairman and CEO of the Company. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Treasury Stock | 14. Treasury stocks In April 2018, the Company established a trust to hold 51,624,000 of the Company’s issued ordinary shares. These ordinary shares were contributed by the Co-Founders In February 2019, 403,157 issued ordinary shares were contributed by the then existing shareholders to the Trust for future share awards. The ordinary shares issued to the Trust are accounted for as treasury stocks of the Company and presented as such for all periods presented. The Trust does not hold any other assets or liabilities as at December 31, 2019 and 2020, nor earn any income nor incur any expenses for the years ended December 31, 2018, 2019 and 2020. Upon the completion of the Company’s IPO in November 2019, 13,928,205 restricted share units and 16,000,000 restricted ordinary shares that have been vested under the 2018 Equity Incentive Plan (Note 15) were transferred from treasury stocks to ordinary shares. For the year ended December 31, 2020, 4,002,052 Effective September 9, 2020, the Board of Directors approved a share repurchase program to repurchase in the open market up to US$10 million worth of its outstanding (i) American Depositary Share (“ADS”) each representing 15 Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from September 22, 2020 depending on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with Canaan’s working capital requirements and general business conditions, the relevant rules under United States securities laws and regulations, and the relevant stock exchange rules. As of December 31, 2020, total of 1,719,946 outstanding ADSs (25,799,190 shares) were repurchased but have not been retired with a total consideration of RMB23,915, which is shown as treasury stock (Note 2(ae)). |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 15. Share-based compensation On October 8, 2016, Canaan Chaoxin, which was a holding company controlled by the controlling shareholders, established of 2016 Equity Incentive Plan (the “2016 Plan”) with the purpose of which is to provide share options for employees contributing to the Company. On October 8, 2016, Canaan Chaoxin granted 39,600,000 share options to Company’s employees at an exercise price of RMB0.023 per share under the 2016 Plan. The vesting period was from October 2016 to May 2017 the exercise period was from June 2017 to July 2017 On November 22, 2017, Canaan Chaoxin approved the establishment of 2017 Equity Incentive Plan (the “2017 Plan”) with the purpose of which is to provide restricted share units (“RSUs”) to its employees. In November 2017, Canaan Chaoxin granted 71,200,000 RSUs to Company’s employees at an exercise price of RMB0.015 per share under the 2017 Plan, among which, 39,170,000 RSUs are vested immediately on the grant da te As part of the Reorganization in 2018, the Board of Directors of the Company approved the 2018 Equity Incentive Plan (the “2018 Plan”) on April 25, 2018, which assumed Canaan Chaoxin’s obligations and duties under the share awards granted by Canaan Chaoxin. As a result, the unvested RSUs granted by Canaan Chaoxin under 2017 Plan were replaced with RSUs of the Company. Such new RSUs replaced the RSUs granted under Canaan Chaoxin’s existing RSUs in its entirety by exchanging of the RSU granted by Canaan Chaoxin for the RSU of the Company while maintaining their respective terms and vesting schedules unchanged except for the addition of performance condition of IPO. This resulted in a probable to improbable (Type II) modification, and no incremental fair value would be recognized unless and until vesting of the award under the modified conditions becomes probable. Since this modification was not beneficial to its employees, no incremental value was resulting from the modification. The Group recognized compensation cost equal to the award’s original grant-date fair value when the original vesting conditions are satisfied, regardless of whether the modified IPO condition is satisfied. On the same da te Upon completion of the Company’s IPO in November 2019, 2,000,000 RSUs with IPO condition and 16,000,000 restricted ordinary shares were immediately vested and related share-based compensation expenses amounted to RMB44,789 were recognized. Share-based compensation expenses related to the share awards granted to the employees amounted to approximately RMB18,586, December 31, 2018, 2019 and 2020, respectively. (a) Restricted share units The following table summarizes the RSUs activity for the years ended December 31, 2018, 2019 and 2020: Number of Weighted average RMB Outstanding at December 31, 2017 and 2018 32,030,000 1.55 Forfeited (2,368,461 ) 1.51 Vested (13,928,205 ) 1.59 Outstanding at December 31, 2019 15,733,334 1.51 Forfeited (2,691,282 ) 1.51 Vested (4,002,052 ) 1.51 Outstanding at December 31, 2020 9,040,000 1.51 Based on fair value of the underlying ordinary share, the Group used income approach involving applying appropriate discount rate to estimated cash flows that are based on earnings forecast and discount for lack of marketability to determine the fair value of the RSUs as of the grant date with assistance from an independent valuation firm before consummation of the Group’s IPO. As of December 31, 2020, there was RMB 2,151 (b) Restricted ordinary shares The following table summarizes the restricted ordinary shares activity under Replacement Agreement for the years ended December 31, 2018 and 2019: Number of Weighted average RMB Outstanding at January 1, 2018 — — Granted 19,594,000 2.56 Forfeited (2,000,000 ) 2.56 Outstanding at December 31, 2018 17,594,000 2.56 Forfeited (1,594,000 ) 2.56 Vested (16,000,000 ) 2.56 Outstanding at December 31, 2019 — — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes (a) Cayman Islands Under the current tax laws of Cayman Islands, the Company is not subject to income, corporation or capital gains tax, and no withholding tax is imposed upon the payment of dividends. (b) Hong Kong Profits Tax One of the Company’s subsidiar ies 2018, . (c) PRC Enterprise Income Tax (“EIT”) On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to EIT at a uniform rate of 25%. The EIT law became effective on January 1, 2008. Canaan Creative obtained its High and New Technology Enterprises (“HNTE”) certificate with a valid period of three years in 2019. Therefore, Canaan Creative is eligible to enjoy a preferential tax rate of 15% from 2019 to 2021 to the extent it has taxable income under the EIT Law, as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. Hangzhou Canaan obtained its HNTE certificate with a valid period of three years in 2019, and therefore is eligible to enjoy a prefenrential tax rate from 2019 to 2021 to the extent it has taxable income under the EIT Law, as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. In addition, In accordance with Caishui (2012) No. 27 issued by the State Tax Bureau on April 20, 2012, Hangzho 5-year The Group’s other PRC subsidiaries are subject to the statutory income tax rate of 25%. (d) PRC Withholding Income Tax on Dividends The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident As of December 31, 2019 and 2020, the aggregated amount of undistributed earnings of the Group entities located in the PRC that are available for distribution to the Company were RMB809,134 and RMB701,633, respectively. The Group plans to indefinitely reinvested undistributed earnings earned from its PRC subsidiaries in its operations in PRC. Therefore, no withholding income tax for undistributed earnings of its subsidiaries were provided as of December 31, 2019 and 2020. A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the Years Ended December 31, 2018 2019 2020 PRC statutory income tax rates 25.0 % 25.0 % 25.0 % Permanent book (5.8 )% (3.3 )% 4.5 % Different tax rates in other jurisdictions 1.7 % (0.4 )% (2.0 )% Effect of tax holiday (41.5 )% (8.4 )% (4.4 )% Change in valuation allowance 59.5 % (12.9 )% (23.1 )% Total 38.9 % 0.0 % 0.0 % Effects of tax holidays entitled by the PRC subsidiaries 83,178 (87,043 ) (9,553 ) Effects of tax holidays entitled by the PRC subsidiaries on basic earnings/(loss) per share (RMB cent per share) 4.23 (4.04 ) (0.41 ) Composition of income tax expense The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income/(loss) are as follows: For the Years Ended December 31, 2018 2019 2020 Current income tax expense 76,748 — — Deferred tax expense 1,062 — — Income tax expense 77,810 — — Deferred tax assets and liabilities Deferred taxes were measured using the enacted tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2019 and 2020 are as follows: As of December 31, 2019 2020 Deferred tax assets Tax losses carried forward 121,948 286,044 Allowance for doubtful accounts 567 1,744 Provision for inventory 128,163 16,840 Unrealized gain from intragroup sale 3,361 162 Subtotal 254,039 304,790 Less: Valuation allowance (254,039 ) (304,790 ) Total of deferred tax assets — — As of December 31, 2019 and 2020, the Company had tax loss carry forwards of approximately RMB702,845 and RMB1,762,521, which mainly arose from its PRC subsidiaries and to a less extent from its HK subsidiary. As all PRC subsidiaries are qualified as HNTE or technology small and medium enterprise (“SMEs”), the carryforwards period for net operating losses under the EIT Law is changed from five years to ten years. The net operating loss carryforwards will expire in varying amounts between 2021 and 2030. Other than the expiration, there are no other limitations or restrictions upon the Group’s ability to use these operating loss carryforwards. Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for tax loss carry forward because it was more likely than not that such deferred tax assets will not be realized due to lack of profitable history to support the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize part or all of its deferred income tax, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. As of December 31, 2019 and 2020, valuation allowances of RMB254,039 and RMB304,790 were provided because it was more likely than not that the Group will not be able to utilize certain tax losses carry forwards and other deferred tax assets generated by its subsidiaries. If events occur in the future that allow the Group to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowances will increase income when those events occur. Movement of valuation allowance is as follows: For the Years Ended December 31, 2018 2019 2020 Beginning balance 1 119,065 254,039 Additions 119,064 134,974 50,751 Ending balance 119,065 254,039 304,790 The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related party transactions For the years ended December 31, 2018, 2019 and 2020, the related party transactions are as follows: For the Years Ended December 31, 2018 2019 2020 Transaction amount with related parties Key management’s advance 68 — — D al motor ve hicles — — 637 68 — 637 As of December 31, 2019 and 2020, there are no related party balances. |
Basic and Diluted Net Earnings_
Basic and Diluted Net Earnings/(Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Basic and Diluted Net Earnings/(Loss) Per Share | 18. Basic and diluted net earnings/(loss) per share Basic and diluted earnings/(loss) per share have been calculated in accordance with ASC 260 on computation of earnings/(loss) per share for the years ended December 31, 2018, 2019 and 2020 as follows: For the Years Ended December 31, 2018 2019 2020 Basic net earnings/(loss) per share calculation Numerator: Net income/(loss) 122,432 (1,034,510 ) (215,094 ) Denominator: Weighted-average ordinary shares outstanding 1,964,499,660 2,153,172,769 2,345,703,779 Basic and diluted net earnings/(loss) per share (RMB cent per share) 6.23 (48.05 ) (9.17 ) For the Years Ended December 31, 2018 2019 2020 Diluted net earnings/(loss) per share calculation Numerator: Net income/(loss) 122,432 (1,034,510 ) (215,094 ) Denominator: Weighted-average ordinary shares outstanding 1,964,499,660 2,153,172,769 2,345,703,779 Add: weighted-average RSUs 13,661,413 — — Weighted-average number of shares used in calculating diluted net earnings/(loss) per share 1,978,161,073 2,153,172,769 2,345,703,779 Diluted net earnings/(loss) per share (RMB cent per share) 6.19 (48.05 ) (9.17 ) For the year s For the Year Ended December 31, 2019 2020 Weighted-average RSUs 13,923,725 10,710,636 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 19. Contingencies On March 4, 2020, a putative class action was filed in the United States District Court of Oregon against the Company, certain officers and directors of the Company, and the underwriters in the Company’s IPO. The complaint alleges that the Form F-1 On March 6, 2020, a putative class action making substantially similar allegations concerning the Form F-1 The management of the Company believes that there may be defenses to one or more of the claims asserted in the lawsuits. The management of the Company has engaged counsel with the intention to vigorously defend these lawsuits. At the date of issue of the consolidated financial statements, the Company is unable to predict the outcome of these lawsuits, or reasonably estimate a range of possible losses, if any, given the early stage of these lawsuits. Therefore, no contingent liabilities have been recorded by the Company as of The Company received a letter from a counsel of one of the Company’s suppliers (“the Supplier”) in December 2020, alleging that the Company violated the Supplier’s intellectual property rights. The Supplier seeks monetary compensation and may pursue legal action, unless the parties are able to resolve the dispute. As of the date of issue of the financial statements, both parties are in the process of negotiation to resolve the dispute. The Company is unable to predict the likelihood of an unfavorable outcome of the event or the amount or the range of possible losses, if any. Therefore, no contingent liabilities have been recorded by the Company in respect of the dispute as of December 31,2020. Also, the Company is and, from time to time, may in the future become, involved in other legal proceedings in the ordinary course of business. The Company currently believes that the outcome of any of these existing legal proceedings, either individually or in the aggregate, will not have a material impact on the operating results, financial condition or cash flows of the Company. With respect to existing legal proceedings, the Company has either determined that the existence of a material loss is not reasonably possible or that it is unable to estimate a reasonably possible loss or range of loss. The Company may incur substantial legal fees, which are expensed as incurred, in defending against these legal proceedings. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 20. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Group’s subsidiary incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s subsidiary in the PRC are required to annually appropriate 10% of their net after-tax As of December 31, 2020, the total restricted net assets of the Company’s subsidiaries incorporated in PRC and subjected to restriction amounted to approximately RMB163,288. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. There is no other restriction on the use of proceeds generated by the Company’s subsidiaries to satisfy any obligations of the Company. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of the Parent Company | 2 1 Condensed financial information of the parent company Rules 12-04(a) 4-08(e)(3) S-X The following condensed financial statements of the Parent Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Parent Company used the equity method to account for its investment in its subsidiaries. Such investment is presented on the separate condensed balance sheets of the Parent Company as “Receivables from subsidiaries”. The Parent Company, its subsidiaries were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Parent Company’s share of loss from its subsidiaries is reported as “share of loss from subsidiaries” in the condensed financial statements. The Parent Company is a Cayman Islands company and, therefore, is not subjected to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted. As of December 31, 2019 and 2020, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. Condensed Financial Information of the Parent Company CONDENSED BALANCE SHEET S As of December 31, 2019 2020 RMB RMB US$ (Note 2(e)) ASSETS Current assets: Cash and cash equivalents 14 147 23 Receivables from subsidiaries 692,781 442,491 67,814 Total current assets 692,795 442,638 67,837 Total assets 692,795 442,638 67,837 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Refund from depository bank – current — 2,060 316 Non-current liabilities: Refund from depository bank – non-current — 8,020 1,229 Total liabilities — 10,080 1,545 Shareholders’ equity: Ordinary shares (US$ 0.00000005 2,350,123,270 1 1 — Subscriptions receivable from shareholders (1 ) (1 ) — Treasury stocks (US$ 0.00000005 — (23,915 ) (3,665 ) Additional paid-in 1,631,609 1,634,619 250,516 Statutory reserves 97,307 97,307 14,913 Accumulated other comprehensive loss (55,542 ) (79,780 ) (12,227 ) Accumulated deficit (980,579 ) (1,195,673 ) (183,245 ) Total shareholders’ equity 692,795 432,558 66,292 Total liabilities and shareholders’ equity 692,795 442,638 67,837 CONDENSED STATEMENTS OF COMPREHENSIVE LOSS For the year ended December 31, December 31, December 31, 2020 RMB RMB RMB US$ (Note 2(e)) Operating expenses: Research and development expenses (7,208 ) (22,465 ) (652 ) (100 ) Sales and marketing expenses (797 ) (358 ) (41 ) (6 ) General and administrative expenses (5,850 ) (247,426 ) (2,277 ) (349 ) Loss from operations (13,855 ) (270,249 ) (2,970 ) (455 ) Interest income — 5 — — Other gains — — 2,425 372 Share of loss from subsidiaries (526,370 ) (764,266 ) (214,549 ) (32,882 ) Net loss (540,225 ) (1,034,510 ) (215,094 ) (32,965 ) Foreign currency translation adjustment, net of nil tax (65,230 ) 9,688 (24,238 ) (3,694 ) Total comprehensive loss (605,455 ) (1,024,822 ) (239,332 ) (36,659 ) CONDENSED STATEMENTS OF CASH FLOWS For the year ended December 31, 2018 December 31, 2019 December 31, 2020 RMB RMB RMB US$ (Note 2(e)) Cash flows from operating activities Receipt of refund from depository bank — — 13,285 2,036 Other cash used in operating activities — (39 ) (1 ) — Net cash (used in)/provided by operating activities — (39 ) 13,284 2,036 Cash flows from investing activities Increase in receivables from subsidiaries — (1,252,029 ) 28,451 4,360 Net cash (used in)/provided by investing activities — (1,252,029 ) 28,451 4,360 Cash flows from financing activities Proceeds from issuance of ordinary shares — 669,559 — — Proceeds from issuance of ordinary shares upon IPO — 582,449 — — Payment for repurchase of ordinary shares — — (23,915 ) (3,665 ) Prepayment under share repurchase agreement — — (16,146 ) (2,474 ) Net cash provided by/(used in) financing activities — 1,252,008 (40,061 ) (6,139 ) Net (decrease)/increase in cash and cash equivalents — (60 ) 1,674 257 Effect of exchange rate changes on cash — 74 (1,541 ) (236 ) Cash and cash equivalents, beginning of year — — 14 2 Cash and cash equivalents, end of year — 14 147 23 |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principal Activities | (a) Principal activities Canaan Inc. (the “Company”), an exempted company with limited liability incorporated in the Cayman Islands and its subsidiaries are collectively referred to as the “Group”. The Group are principally engaged in integrated circuit (the “IC”) design and sale and lease of final system products by integrating its IC products for Bitcoin mining and related components in the People’s Republic of China (the “PRC”) and other countries and regions. The Group utilizes third-party suppliers to fabricate, package and test the IC products. As of December 31, 2020, the Company’s subsidiaries are as follows: Name of subsidiaries Date of incorporation Place of incorporation Equity interest held Principal activities Canaan Creative (HK) Holdings Limited February 22, 2018 Hong Kong 100 % Research and Hangzhou Canaan Creative Information Technology Co., Ltd. April 9, 2013 Hangzhou, China 100 % Research and Canaan Creative Co., Ltd. April 1, 2013 Beijing, China 100 % Research and Langfang Creative Technology Co., Ltd. May 15, 2014 Langfang, China 100 % Assembly of system Hangzhou Ruihong Technology Co., Ltd. June 30, 2015 Hangzhou, China 100 % Supply chain and Hangzhou Canaan Blockchain Technology Co., Ltd. November 11, 2016 Hangzhou, China 100 % Research and Canaan Convey Co., Ltd. November 2, 2017 Beijing, China 100 % International Zhejiang Avalon Technology Co., Ltd. December 5, 2017 Hangzhou, China 100 % Distribution of Canaan Mingxin (Beijing) Technology Co., Ltd. December 24, 2018 Beijing, China 100 % International Hangzhou Canaan Chuangxin Technology Co., Ltd. December 26, 2018 Hangzhou, China 100 % Research and |
Reorganization | (b) Reorganization Prior to the incorporation of the Company, the Group’s business was carried out by Hangzhou Canaan Creative Information Technology Co., Ltd. (“Hangzhou Canaan”) and its subsidiaries. Hangzhou Canaan was established by co-founders “Co-Founders”). 1) On February 6, 2018, the Company was incorporated in the Cayman Islands by the Co-Founders. 2) On February 22, 2018, Canaan Creative (HK) Holdings Limited (“Canaan HK”) was incorporated in Hong Kong with 100% ownership by the Company. 3) On March 12, 2018 4) On March 21, 2018, Canaan HK acquired the 1% equity interest in Hangzhou Canaan from WWXD Limited and the remaining 99% equity interest in Hangzhou Canaan from its other shareholders at an aggregate cash consideration of RMB692,051, which was recorded as deemed distribution to these shareholders. This deemed distribution reduced retained earnings with amount of RMB404,793, and in the absence of retained earnings, reduced additional paid-in As the shareholdings in the Company and Hangzhou Canaan were with a high degree of common ownership immediately before and after the Reorganization, even though no single investor controlled Hangzhou Canaan or Canaan Inc., the transaction of the Reorganization was determined as recapitalization with lack of economic substance, and was accounted for in a manner similar to a common control transaction. Consequently, the financial information of the Group is presented on a carryover basis for all periods presented. The number of outstanding shares in the consolidated balance sheets, the consolidated statements of changes in shareholders’ equity, and per share information including the net earnings/(loss) per share have been presented retrospectively as of the beginning of the earliest period presented on the consolidated financial statements to reflect the final shares issued in the Reorganization. On November 21, 2019, the Company consummated its initial public offering (the “IPO”) on the Nasdaq Global Market, where 10,000,000 American Depositary Shares (“ADSs”) were issued at the price of US$9.00 per ADS for a total gross proceeds of US$90 million. Each ADS represents 15 Class A ordinary shares. |
Basis of preparation | (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Use of estimates | (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates. The Company believes that accounting estimation of variable consideration for revenue recognition, write-down for inventories and prepayments, valuation and recognition of share-based compensation reflect significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from these estimates. |
Consolidation | (c) Consolidation The Group’s consolidated financial statements include the financial statements of the Company and its subsidiaries, for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. |
Functional currency and foreign currency translation | (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in other than the functional currencies are re-measured re-measured The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the Company and its subsidiaries incorporated outside of PRC are translated into RMB at fiscal year-end i . |
Convenience translation | (e) Convenience translation The United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the rate of US$1.00=RMB6.5250 on December 31, 2020, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2020, or at any other rate. |
Fair value of financial instruments | (f) Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value meas u The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, for the assets or liabilities either directly or indirectly. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, non-current As of December 31, 2019 and 2020, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and other liabilities approximated to their fair values reported in the consolidated balance sheets due to the short term nature of these instruments. On a recurring basis, the Group measures its short-term investments at fair value. The following table sets forth the Group’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2019 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 11,005 — 11,005 As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 62,386 — 62,386 The Group values its investments in wealth management products based on quoted prices of similar products provided by banks at the end of each period, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. |
Cash and cash equivalents | (g) Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use. |
Restricted cash | (h) Restricted cash Restricted cash includes cash and cash equivalents that are not readily available for the Company’s normal disbursements. Restricted cash are primarily related to cash deposits with banks and financial institutions required as part of collateral for the Company’s notes payable (Note 11) arrangements. |
Short-term investments | (i) Short-term investments Short-term investments include investments in wealth management products issued by certain banks which are redeemable by the Company at any time. The wealth management products are unsecured with variable interest rates. The Company measures the short-term investments at fair value and fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The change in fair value is recorded as investment income amounted to RMB3,162, RMB3,055 and RMB5,844 in the consolidated statements of comprehensive income/(loss) for the years ended December 31, 2018, 2019 and 2020, respectively. |
Accounts receivable | (j) Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and based on factors listed in the following paragraph. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability . |
Inventories | (k) Inventories Inventories, consisting of finished goods, work in process, raw materials and goods in transit, which are purchased from contract manufacturers and component suppliers. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Group takes ownership, risks and rewards of the products purchased. In accordance with ASC 855-10-55-1(b), |
Operating lease assets | (l) Operating lease assets Operating lease assets consist of lease contracts for system products for Bitcoin mining with customers, which are reclassified from inventories at the beginning of lease period. Operating lease assets are recorded at cost less accumulated depreciation and impairment losses. Depreciation is provided using a straight-line method over the estimated economic lives which is generally 18 months. Depreciation expenses are included in costs of revenues. The Group monitors accounting estimates relating to the depreciation period. Changes made to estimates are reflected in depreciation expense on a prospective basis. As of December 31, 2019 and 2020, the Company did not have any operating lease assets. |
Property, equipment and software | (m) Property, equipment and software Property, equipment and software are stated at historical cost less accumulated depreciation, amortization and impairment loss, if any. Depreciation and amortization is calculated using the straight-line method over the shorter of their estimated useful lives of these assets or the term of the related leases. The estimated useful lives are as follows: Leasehold improvements the shorter of their useful lives and the lease terms Computers and electronic equipment 3 to 5 years Mechanical equipment 5 years Motor vehicles 5 years Software 3 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income/(loss). Construction in progress represents assets under construction. Construction in progress is transferred to property, equipment and software and depreciation or amortization commences when an asset is ready for its intended use. |
Non-current financial investment | (n) Non-current The Group’s non-current in-substance non-current non-current During the year ended December 31, 2020, the Group recognized impairment charge of RMB2,475 and recorded in other income, net. |
Impairment of long-lived assets | (o) Impairment of long-lived assets For other long-lived assets including property, equipment and software, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Contract liabilities | (p) Contract liabilities Cash proceeds received from customers before product delivery is recognized as contract liabilities and is recognized as revenues when revenue recognition criteria are met. The prepayments received from customers as of December 31, 2019 and 2020 was RMB8,288 and RMB430,388, respectively. The revenue recognized during the years ended December 31, 2018, 2019 and 2020 for the beginning balance of contract liability was RMB202,477, RMB6,904 and RMB8,008, respectively. |
Revenue from contracts with customers (ASC 606) | (q) Revenue from contracts with customers (ASC 606) The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. Products revenue The Group generates revenue primarily from the sale of Bitcoin mining machines directly to a customer, such as a business or individual engaged in Bitcoin mining activities. As the Bitcoin price fluctuates, the Group may adjust the selling price of Bitcoin mining machines on a weekly basis, as customers are only willing to pay for machines based on their ability to recover their investment through mining Bitcoin over a relatively short period of time. The Group’s sales arrangements usually require a full prepayment before the delivery of products. The Group started to offer credit sales to certain significant, long-standing customers in China in 2018. The payment terms under credit sales generally consist of 50% down payment and 50% subsequent payments over a period of 90 to 180 days. With the adoption of a more dynamic pricing strategy, the Group expects to accept a lower amount of consideration (as compared to fixed and promised consideration that is set out in the sales contracts) from its credit sales customers if the price of Bitcoin decreases in the post-sale period; hence providing implicit price concession to these customers and the ultimate amount of price concessions to be provided to these credit sales customers is highly dependent on the changes of Bitcoin prices. Revenues from product sales are recorded at the net sales price (transaction price), which includes an estimation of variable consideration which primarily results from implicit price concessions on credit sales. The amount of variable consideration is included in the transaction price to the extent it is not constrained and that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the estimates. If actual results in the future vary from estimates, the Group will adjust these estimates, which would affect revenue and earnings in the period when such changes are known. With respect to the determination of variable consideration resulting from the amount of implicit price concession, since the Bitcoin market price is volatile and unpredictable and changes of Bitcoin price, will greatly affect the implicit price concessions to be provided by the Group to its credit sales customers, the Group historically has not been able to overcome the constraint on variable consideration at the time of product sale or at subsequent period-end period-end. The Group recognizes products revenue at a point in time based on management’s evaluation of when the control of the products have been passed to customers. The transfer of control is considered complete when products have been picked up by or shipped to the Group’s customers . The Group offers a standard product warranty of no longer than 6 months that the product will operate under normal use. At the time revenue is recognized, an estimate of future warranty costs is recorded as a component of cost of revenues. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. The amount of total warranty costs incurred was immaterial for the Services revenue The Company also generates a small portion of revenue from its maintenance services under separate contracts. Revenue from the maintenance service to the customer is recognized when the related services have been rendered to the customers. |
Revenue from lease arrangements as lessor (ASC 842) | (r) Revenue from lease arrangements as lessor (ASC 842) From July 2019, the Group started to generate revenue from the leases of system products for Bitcoin mining to its customers. The leases cannot generally be extended or terminated at the customer’s discretion. However, upon the mutual agreement of the parties, the leases can be early terminated after three months. Rental charges are computed based on a time rate of machine’s type and rental period. The leases of system products meet the classification of operating leases, and revenues from operating leases are recognized on a straight-line basis over the contract terms. |
Value-added-tax ("VAT") recoverable and surcharges | (s) Value-added-tax Value added tax recoverable represent amounts paid by the Group for purchases. The surcharges (i.e., Urban construction and maintenance tax, educational surtax, local educational surtax), vary from 10% to 12% of the value-added-tax |
Cost of revenues | (t) Cost of revenues Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists of product costs, including costs of raw material, contract manufacturers for production, shipping and handling costs, manufacturing and tooling equipments depreciation, warehousing costs and slow-moving, obsolete inventories write-downs, prepayments write-downs and tax surcharges. |
Research and development expenses | (u) Research and development expenses Research and development expenses consist primarily of salary and welfare for research and development personnel, consulting and contractor expenses, testing and tooling materials and other expenses in associated with research and development personnel. The Group recognizes research and development expenses as expense when incurred. |
Sales and marketing expenses | (v) Sales and marketing expenses Sales and marketing expenses consist primarily of salary and welfare for sales and marketing personnel, promotion and marketing expenses and other expenses in associated with sales and marketing personnel. Advertising expense are expensed as incurred and included in selling and marketing expenses. The advertising expenses were RMB2,124, RMB2,377 and RMB3,701 for the years ended December 31, 2018, 2019 and 2020, respectively. |
General and administrative expenses | (w) General and administrative expenses General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses and depreciation in associated with general and administrative personnel, allowance for doubtful receivables, entertainment expense, general office expense and professional service fees. |
VAT refunds | (y) VAT refunds In accordance with Caishui (2011) No. 100 issued by State Tax Bureau, Hangzhou Canaan is qualified as enterprise of selling self-developed software products and enjoying an tax refund for the excess of 3% of its actual tax burden after the VAT is levied at the 16% or 13% tax rate since April 2019.Tax refund is recognized when received. Total VAT refunds received were RMB110,231, RMB1,253 and nil for the years ended December 31, 2018, 2019 and 2020, respectively. |
Lease arrangement as lessee | (z) Lease arrangement as lessee The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use non-current ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. |
Employee social security and welfare benefits | (aa) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the consolidated statements of comprehensive income/(loss) amounted to RMB20,618, RMB23,026 and RMB14,919 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Income taxes | (ab) Income taxes The Group accounts for income taxes under the liability method. Under the liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the tax income rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded if it is more likely than not that some portion or all of a deferred income tax assets will not be realized in the foreseeable future. The Group evaluates its uncertain tax positions using the provisions of ASC 740-10, Income Taxes |
Share-based compensation | (ac) Share-based compensation The Company grants restricted shares and share options to eligible employees and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation. Employees’ share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at the grant date if no vesting conditions are required; or b) for share-based awards granted with only service conditions, using the graded vesting method, net of estimated forfeitures, over the vesting period; or c) for share-based awards granted with service conditions and the occurrence of an IPO as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service condition should be recorded upon the completion of the IPO, using the graded vesting method; or d) for share-based awards with service conditions and other performance condition, using the graded vesting method, net of estimated pre-vesting A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Group calculates incremental compensation expense of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period when the modification occurs. For awards not being fully vested, the Group recognizes the sum of the incremental compensation expense and the remaining unrecognized compensation expense for the original awards over the remaining requisite service period after modification. Share-based compensation in relation to the restricted shares is measured based on the fair market value of the Group’s ordinary shares at the grant date of the award. Prior to the listing, estimation of the fair value of the Group’s ordinary shares involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, including discount rate, and subjective judgments regarding the Group’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. Share-based compensation in relation to the share options is estimated using the Binomial Option Pricing Model. The determination of the fair value of share options is affected by the share price of the Group’s ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple and expected dividend yield. The fair value of these awards was determined with the assistance from an independent valuation firm. |
Statutory reserves | (ad) Statutory reserves The Group’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as offsetting the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group has not done so. Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances. The Group has made RMB68,501, nil and nil appropriations to statutory reserve mainly for Hangzhou Canaan for the years ended December 31, 2018, 2019 and 2020, respectively. |
Repurchase of share | (ae) Repurchase of share The Group accounts for treasury stock using the cost method. Under the cost method, when the Company’s shares are acquired for purposes other than retirement, the costs of the acquired stock will be shown separately as a deduction from the total of capital stock. |
Loss per share | (af) Earnings/ (loss) per share Basic earnings/(loss) per share is computed by dividing net income/(loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. Diluted earnings/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the period. Dilutive equivalent shares are excluded from the computation of diluted earnings/(loss) per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s ordinary shares issuable upon the conversion of the share-based awards, using the treasury stock method . |
Comprehensive loss | (ag) Comprehensive income/(loss) Comprehensive income/(loss) is defined as the change in shareholders’ equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income/(loss) is reported in the consolidated statements of comprehensive income/(loss). Accumulated other comprehensive loss of the Group include the foreign currency translation adjustments. |
Segment reporting | (ah) Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Group does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Group has only one operating segment and one reportable segment. The Group’s long-lived assets are substantially located in the PRC. The Group’s revenue segregated by geographic region is as follows: Geographic region For the Years Ended December 31, 2018 2019 2020 PRC 2,057,632 1,063,630 379,418 Kazakhstan — — 47,792 Hong Kong 91,028 11,216 12,301 United States of America 284,965 46,045 3,528 Canada 25,548 22,738 162 Japan — 236,206 — Other foreign countries 246,118 42,788 4,485 Total 2,705,291 1,422,623 447,686 |
Recently issued accounting pronouncements | (ai) Recently issued accounting pronouncements i. New and amended standards adopted by the Group: In August 2018, the FASB released ASU 2018-13, 2018-13 2018-13 ii. New and amended standards not yet adopted by the Group: In June 2016, the FASB issued ASU No. 2016-13, 2016-13”). 2018-19, 2018-19”), 2016-13. 2019-10, 2016-13 2018-19 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarify existing guidance. The standard is effective for the Company for fiscal years beginning after 15 December 2021, and interim periods within fiscal years beginning after 15 December 2022. Early adoption is permitted. The Group is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In January 2020, the FASB issued Accounting Standards Update No. 2020-01, 815-10-15-141(a) 815-10-15-141 |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Subsidiaries | As of December 31, 2020, the Company’s subsidiaries are as follows: Name of subsidiaries Date of incorporation Place of incorporation Equity interest held Principal activities Canaan Creative (HK) Holdings Limited February 22, 2018 Hong Kong 100 % Research and Hangzhou Canaan Creative Information Technology Co., Ltd. April 9, 2013 Hangzhou, China 100 % Research and Canaan Creative Co., Ltd. April 1, 2013 Beijing, China 100 % Research and Langfang Creative Technology Co., Ltd. May 15, 2014 Langfang, China 100 % Assembly of system Hangzhou Ruihong Technology Co., Ltd. June 30, 2015 Hangzhou, China 100 % Supply chain and Hangzhou Canaan Blockchain Technology Co., Ltd. November 11, 2016 Hangzhou, China 100 % Research and Canaan Convey Co., Ltd. November 2, 2017 Beijing, China 100 % International Zhejiang Avalon Technology Co., Ltd. December 5, 2017 Hangzhou, China 100 % Distribution of Canaan Mingxin (Beijing) Technology Co., Ltd. December 24, 2018 Beijing, China 100 % International Hangzhou Canaan Chuangxin Technology Co., Ltd. December 26, 2018 Hangzhou, China 100 % Research and |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table sets forth the Group’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2019 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 11,005 — 11,005 As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 62,386 — 62,386 |
Schedule of Estimated Useful Lives | The estimated useful lives are as follows: Leasehold improvements the shorter of their useful lives and the lease terms Computers and electronic equipment 3 to 5 years Mechanical equipment 5 years Motor vehicles 5 years Software 3 years |
Summary of Revenue Segregated by Geographic Region | The Group’s long-lived assets are substantially located in the PRC. The Group’s revenue segregated by geographic region is as follows: Geographic region For the Years Ended December 31, 2018 2019 2020 PRC 2,057,632 1,063,630 379,418 Kazakhstan — — 47,792 Hong Kong 91,028 11,216 12,301 United States of America 284,965 46,045 3,528 Canada 25,548 22,738 162 Japan — 236,206 — Other foreign countries 246,118 42,788 4,485 Total 2,705,291 1,422,623 447,686 |
Risks and Concentration (Tables
Risks and Concentration (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Summary of Accounts Receivable Concentration of Credit risk and Customers Contribution of Total Revenue | Accounts receivable concentration of credit risk is as below: As of December 31, 2019 2020 Customer A * 96 % Customer B 31 % * Customer C 28 % * Customer D 14 % * Customer E 10 % * * Less than 10% Customers which contributed more than 10% of total revenue are as below: For the Years Ended 2018 2019 2020 Customer F * * 29 % Customer G * 17 % * Customer H * * 16 % Customer I 14 % * * * Less than 10% |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents | The following table sets forth a breakdown of cash and cash equivalents by currency denomination and jurisdiction as of December 31, 2019 and 2020: RMB RMB equivalent (US$) RMB (HK$) Total in China Overseas China Overseas December 31, 2019 59,705 435,152 20,381 1,369 516,607 December 31, 2020 110,241 32,352 248,716 1 391,310 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of December 31, 2019 2020 Accounts receivable, gross 2,872 7,371 Less: allowance for doubtful accounts — (243 ) Accounts receivable 2,872 7,128 |
Schedule of Movement of Allowance for Doubtful Accounts | The following table presents movement of the allowance for doubtful accounts: For the Years Ended 2018 2019 2020 Balance at the beginning of the year (5,932 ) (3,780 ) — Provisions for doubtful receivables — — (243 ) Collection of amounts previously in dispute 2,152 — — Write-off — 3,780 — (3,780 ) — (243 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: As of December 31, 2019 2020 Raw materials 58,627 195,939 Finished goods 127,452 26,963 Work in process 8,728 2,620 Goods in transit 1,260 — Total 196,067 225,522 |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepayments and Other Assets | The current and non-current As of December 31, 2019 2020 Prepayments and other current assets Prepayments to vendors (Note a) 35,801 203,063 VAT recoverable 122,757 87,879 Prepayment for repurchase of ordinary shares — 15,825 VAT refund for export sales (Note b) 35,507 5,510 Others (Note c) 11,955 4,089 206,020 316,366 Non-current Rental and other deposits 5,250 2,530 Note a: Prepayments to vendors mainly represent prepayments made to third-party suppliers for foundry service. The Group also records a provision for the prepayment to third-party suppliers when the Group believes that the net realizable value (being the estimated selling price of final products, less the costs of completion and selling expenses) is less than carrying amount. For the years ended December 31, 2018, 2019 and 2020, the Group recorded a write-down of RMB358,842, RMB202,522 and nil for the prepayment to third-party suppliers in cost of revenues. Note b: Canaan Convey Co., Ltd. is entitled to VAT refund for its export sales. Note c: During the years ended December 31, 2018, 2019 and 2020, the Group recorded provision of allowance for other receivables of nil, nil and RMB4,606, respectively. |
Property, Equipment and Softw_2
Property, Equipment and Software (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Software | Property, equipment and software consist of the following: As of December 31, 2019 2020 Cost: Leasehold improvements 28,542 17,130 Computers and electronic equipment 18,721 14,540 Software 470 1,955 Construction in progress 1,325 1,325 Mechanical equipment 1,181 1,181 Motor vehicles 1,739 461 Total cost 51,978 36,592 Less: Accumulated depreciation and amortization (29,376 ) (24,399 ) Property, equipment and software, net 22,602 12,193 |
Summary of Depreciation and Amortization Expenses | Depreciation and amortization expenses recognized for the years ended December 31, 2018, 2019 and 2020 are summarized as follows: For the Years Ended December 31, 2018 2019 2020 General and administrative expenses 6,667 8,062 7,680 Research and development expenses 5,197 3,662 3,874 Cost of revenues 1,260 1,899 217 Sales and marketing expenses 21 81 81 Total 13,145 13,704 11,852 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expenses | (a) The components of lease expenses were as follows: For the Years Ended December 31, 2019 2020 Lease cost: Amortization of right-of-use 10,928 13,432 Interest of lease liabilities 1,746 1,938 Expenses for short-term lease within 12 months 605 505 Total lease cost 13,279 15,875 |
Summary of Supplemental Cash Flow Information Related to Leases | (b) Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2019 2020 Cash paid for amounts included in the measurement of lease liabilities: 11,228 14,322 Right-of-use — 5,516 Reductions to ROU assets resulting from reductions to lease obligations: — 427 |
Summary of Supplemental Balance Sheet Information Related to Leases | (c) Supplemental balance sheet information related to leases was as follows: As of December 31, 2019 2020 Weighted-average remaining lease term Operating leases 1.2 year 1.3 year Weighted-average discount rate Operating lease 7.14% per annum 6.73% per annum |
Schedule of Maturities of Lease Liabilities | (d) Maturities of lease liabilities were as follows: Years Ending December 31, As of December 31, 2020 2021 13,200 2022 3,603 Total undiscounted lease payments 16,803 Less: imputed interest (860 ) Total lease liabilities 15,943 |
Short-Term Debts (Tables)
Short-Term Debts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debts | As of December 31, 2019 2020 Short-term bank loans 99,903 34,754 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Liabilities | As of December 31, 2019 2020 Accrued liabilities and other current liabilities VAT received from customers related to contract liabilities 937 28,958 Salary and welfare payable 24,034 25,148 Rental deposits — 4,011 Refund from depository bank – current — 2,060 Other tax payables 2,225 874 Professional service fee accrual 7,493 — Other service fee payables 2,196 — Others 3,806 2,292 Total 40,691 63,343 Non-current Refund from depository bank – non-current — 8,020 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Share Units | |
Summary of Restricted Shares Activity | (a) Restricted share units The following table summarizes the RSUs activity for the years ended December 31, 2018, 2019 and 2020: Number of Weighted average RMB Outstanding at December 31, 2017 and 2018 32,030,000 1.55 Forfeited (2,368,461 ) 1.51 Vested (13,928,205 ) 1.59 Outstanding at December 31, 2019 15,733,334 1.51 Forfeited (2,691,282 ) 1.51 Vested (4,002,052 ) 1.51 Outstanding at December 31, 2020 9,040,000 1.51 |
Restricted Ordinary Shares | |
Summary of Restricted Shares Activity | The following table summarizes the restricted ordinary shares activity under Replacement Agreement for the years ended December 31, 2018 and 2019: Number of Weighted average RMB Outstanding at January 1, 2018 — — Granted 19,594,000 2.56 Forfeited (2,000,000 ) 2.56 Outstanding at December 31, 2018 17,594,000 2.56 Forfeited (1,594,000 ) 2.56 Vested (16,000,000 ) 2.56 Outstanding at December 31, 2019 — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate | A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the Years Ended December 31, 2018 2019 2020 PRC statutory income tax rates 25.0 % 25.0 % 25.0 % Permanent book (5.8 )% (3.3 )% 4.5 % Different tax rates in other jurisdictions 1.7 % (0.4 )% (2.0 )% Effect of tax holiday (41.5 )% (8.4 )% (4.4 )% Change in valuation allowance 59.5 % (12.9 )% (23.1 )% Total 38.9 % 0.0 % 0.0 % Effects of tax holidays entitled by the PRC subsidiaries 83,178 (87,043 ) (9,553 ) Effects of tax holidays entitled by the PRC subsidiaries on basic earnings/(loss) per share (RMB cent per share) 4.23 (4.04 ) (0.41 ) |
Schedule of Composition of Income Tax Expense | The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income/(loss) are as follows: For the Years Ended December 31, 2018 2019 2020 Current income tax expense 76,748 — — Deferred tax expense 1,062 — — Income tax expense 77,810 — — |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2019 and 2020 are as follows: As of December 31, 2019 2020 Deferred tax assets Tax losses carried forward 121,948 286,044 Allowance for doubtful accounts 567 1,744 Provision for inventory 128,163 16,840 Unrealized gain from intragroup sale 3,361 162 Subtotal 254,039 304,790 Less: Valuation allowance (254,039 ) (304,790 ) Total of deferred tax assets — — |
Schedule of Movement of Valuation Allowance | Movement of valuation allowance is as follows: For the Years Ended December 31, 2018 2019 2020 Beginning balance 1 119,065 254,039 Additions 119,064 134,974 50,751 Ending balance 119,065 254,039 304,790 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the years ended December 31, 2018, 2019 and 2020, the related party transactions are as follows: For the Years Ended December 31, 2018 2019 2020 Transaction amount with related parties Key management’s advance 68 — — D al motor ve hicles — — 637 68 — 637 |
Basic and Diluted Net Earning_2
Basic and Diluted Net Earnings/(Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings/(loss) per share have been calculated in accordance with ASC 260 on computation of earnings/(loss) per share for the years ended December 31, 2018, 2019 and 2020 as follows: For the Years Ended December 31, 2018 2019 2020 Basic net earnings/(loss) per share calculation Numerator: Net income/(loss) 122,432 (1,034,510 ) (215,094 ) Denominator: Weighted-average ordinary shares outstanding 1,964,499,660 2,153,172,769 2,345,703,779 Basic and diluted net earnings/(loss) per share (RMB cent per share) 6.23 (48.05 ) (9.17 ) For the Years Ended December 31, 2018 2019 2020 Diluted net earnings/(loss) per share calculation Numerator: Net income/(loss) 122,432 (1,034,510 ) (215,094 ) Denominator: Weighted-average ordinary shares outstanding 1,964,499,660 2,153,172,769 2,345,703,779 Add: weighted-average RSUs 13,661,413 — — Weighted-average number of shares used in calculating diluted net earnings/(loss) per share 1,978,161,073 2,153,172,769 2,345,703,779 Diluted net earnings/(loss) per share (RMB cent per share) 6.19 (48.05 ) (9.17 ) |
Effects of Outstanding RSUs Excluded From Computation of Diluted Loss Per Share Due to Anti-Dilutive Effect | For the year s For the Year Ended December 31, 2019 2020 Weighted-average RSUs 13,923,725 10,710,636 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | CONDENSED BALANCE SHEET S As of December 31, 2019 2020 RMB RMB US$ (Note 2(e)) ASSETS Current assets: Cash and cash equivalents 14 147 23 Receivables from subsidiaries 692,781 442,491 67,814 Total current assets 692,795 442,638 67,837 Total assets 692,795 442,638 67,837 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Refund from depository bank – current — 2,060 316 Non-current liabilities: Refund from depository bank – non-current — 8,020 1,229 Total liabilities — 10,080 1,545 Shareholders’ equity: Ordinary shares (US$ 0.00000005 2,350,123,270 1 1 — Subscriptions receivable from shareholders (1 ) (1 ) — Treasury stocks (US$ 0.00000005 — (23,915 ) (3,665 ) Additional paid-in 1,631,609 1,634,619 250,516 Statutory reserves 97,307 97,307 14,913 Accumulated other comprehensive loss (55,542 ) (79,780 ) (12,227 ) Accumulated deficit (980,579 ) (1,195,673 ) (183,245 ) Total shareholders’ equity 692,795 432,558 66,292 Total liabilities and shareholders’ equity 692,795 442,638 67,837 |
Schedule of Condensed Statements of Comprehensive Loss | CONDENSED STATEMENTS OF COMPREHENSIVE LOSS For the year ended December 31, December 31, December 31, 2020 RMB RMB RMB US$ (Note 2(e)) Operating expenses: Research and development expenses (7,208 ) (22,465 ) (652 ) (100 ) Sales and marketing expenses (797 ) (358 ) (41 ) (6 ) General and administrative expenses (5,850 ) (247,426 ) (2,277 ) (349 ) Loss from operations (13,855 ) (270,249 ) (2,970 ) (455 ) Interest income — 5 — — Other gains — — 2,425 372 Share of loss from subsidiaries (526,370 ) (764,266 ) (214,549 ) (32,882 ) Net loss (540,225 ) (1,034,510 ) (215,094 ) (32,965 ) Foreign currency translation adjustment, net of nil tax (65,230 ) 9,688 (24,238 ) (3,694 ) Total comprehensive loss (605,455 ) (1,024,822 ) (239,332 ) (36,659 ) |
Schedule of Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS For the year ended December 31, 2018 December 31, 2019 December 31, 2020 RMB RMB RMB US$ (Note 2(e)) Cash flows from operating activities Receipt of refund from depository bank — — 13,285 2,036 Other cash used in operating activities — (39 ) (1 ) — Net cash (used in)/provided by operating activities — (39 ) 13,284 2,036 Cash flows from investing activities Increase in receivables from subsidiaries — (1,252,029 ) 28,451 4,360 Net cash (used in)/provided by investing activities — (1,252,029 ) 28,451 4,360 Cash flows from financing activities Proceeds from issuance of ordinary shares — 669,559 — — Proceeds from issuance of ordinary shares upon IPO — 582,449 — — Payment for repurchase of ordinary shares — — (23,915 ) (3,665 ) Prepayment under share repurchase agreement — — (16,146 ) (2,474 ) Net cash provided by/(used in) financing activities — 1,252,008 (40,061 ) (6,139 ) Net (decrease)/increase in cash and cash equivalents — (60 ) 1,674 257 Effect of exchange rate changes on cash — 74 (1,541 ) (236 ) Cash and cash equivalents, beginning of year — — 14 2 Cash and cash equivalents, end of year — 14 147 23 |
Organization and Principal Ac_3
Organization and Principal Activities - Schedule of Subsidiaries (Details) | Feb. 22, 2018 | Feb. 06, 2018 | Dec. 31, 2020 |
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Date of incorporation | Feb. 6, 2018 | ||
Place of incorporation | Cayman Islands | ||
Canaan Creative (HK) Holdings Limited | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Canaan Creative (HK) Holdings Limited | ||
Date of incorporation | Feb. 22, 2018 | Feb. 22, 2018 | |
Place of incorporation | Hong Kong | Hong Kong | |
Equity interest held | 100.00% | 100.00% | |
Principal activities | Research anddevelopment of ICs | ||
Hangzhou Canaan Creative Information Technology Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Hangzhou Canaan Creative Information Technology Co., Ltd. | ||
Date of incorporation | Apr. 9, 2013 | ||
Place of incorporation | Hangzhou, China | ||
Equity interest held | 100.00% | ||
Principal activities | Research anddevelopment of ICs | ||
Canaan Creative Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Canaan Creative Co., Ltd. | ||
Date of incorporation | Apr. 1, 2013 | ||
Place of incorporation | Beijing, China | ||
Equity interest held | 100.00% | ||
Principal activities | Research anddevelopment of ICs | ||
Langfang Creative Technology Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Langfang Creative Technology Co., Ltd. | ||
Date of incorporation | May 15, 2014 | ||
Place of incorporation | Langfang, China | ||
Equity interest held | 100.00% | ||
Principal activities | Assembly of systemproducts | ||
Hangzhou Ruihong Technology Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Hangzhou Ruihong Technology Co., Ltd. | ||
Date of incorporation | Jun. 30, 2015 | ||
Place of incorporation | Hangzhou, China | ||
Equity interest held | 100.00% | ||
Principal activities | Supply chain and distribution of system products | ||
Hangzhou Canaan Blockchain Technology Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Hangzhou Canaan Blockchain Technology Co., Ltd. | ||
Date of incorporation | Nov. 11, 2016 | ||
Place of incorporation | Hangzhou, China | ||
Equity interest held | 100.00% | ||
Principal activities | Research anddevelopment of ICs | ||
Canaan Convey Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Canaan Convey Co., Ltd. | ||
Date of incorporation | Nov. 2, 2017 | ||
Place of incorporation | Beijing, China | ||
Equity interest held | 100.00% | ||
Principal activities | International distribution of system products | ||
Zhejiang Avalon Technology Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Zhejiang Avalon Technology Co., Ltd. | ||
Date of incorporation | Dec. 5, 2017 | ||
Place of incorporation | Hangzhou, China | ||
Equity interest held | 100.00% | ||
Principal activities | Distribution ofsystem products | ||
Canaan Mingxin (Beijing) Technology Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Canaan Mingxin (Beijing) Technology Co., Ltd. | ||
Date of incorporation | Dec. 24, 2018 | ||
Place of incorporation | Beijing, China | ||
Equity interest held | 100.00% | ||
Principal activities | International distribution of system products | ||
Hangzhou Canaan Chuangxin Technology Co., Ltd | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Name of subsidiaries | Hangzhou Canaan Chuangxin Technology Co., Ltd. | ||
Date of incorporation | Dec. 26, 2018 | ||
Place of incorporation | Hangzhou, China | ||
Equity interest held | 100.00% | ||
Principal activities | Research anddevelopment of ICs |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands, $ in Thousands | Nov. 21, 2019USD ($)$ / sharesshares | Mar. 21, 2018CNY (¥) | Mar. 12, 2018CNY (¥) | Feb. 22, 2018 | Feb. 06, 2018 | May 31, 2019shares | Feb. 28, 2019$ / sharesshares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | Mar. 21, 2018HKD ($) |
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Date of incorporation | Feb. 6, 2018 | ||||||||||
Place of incorporation | Cayman Islands | ||||||||||
Aaccumulated deficit | ¥ (1,195,673) | ¥ (980,579) | $ (183,245) | ||||||||
Issuance of ordinary shares (in shares) | shares | 233,217,776 | 222,222,222 | |||||||||
Shares issued, price per share | $ / shares | $ 0.45 | ||||||||||
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance- | ¥ 544,122 | ||||||||||
Initial Public Offering | |||||||||||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Number of ordinary shares in each american depositary share | shares | 15 | ||||||||||
American Depositary Shares | |||||||||||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance- | $ | $ 90,000 | ||||||||||
American Depositary Shares | Initial Public Offering | |||||||||||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Issuance of ordinary shares (in shares) | shares | 10,000,000 | ||||||||||
Shares issued, price per share | $ / shares | $ 9 | ||||||||||
WWXD Limited | |||||||||||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Business combination, percentage of equity interest acquired | 1.00% | 1.00% | |||||||||
Consideration transferred | ¥ 7,000 | ||||||||||
Canaan Creative (HK) Holdings Limited | |||||||||||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Date of incorporation | Feb. 22, 2018 | Feb. 22, 2018 | |||||||||
Place of incorporation | Hong Kong | Hong Kong | |||||||||
Equity interest held | 100.00% | 100.00% | |||||||||
Aaccumulated deficit | ¥ 404,793 | ||||||||||
Additional paid in capital | 287,258 | ||||||||||
Borrowing | $ | $ 885,000 | ||||||||||
Canaan Creative (HK) Holdings Limited | Hangzhou Canaan Creative Information Technology Co., Ltd | |||||||||||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Cash distribution to other shareholders | ¥ 692,051 | ||||||||||
Canaan Creative (HK) Holdings Limited | WWXD Limited | Hangzhou Canaan Creative Information Technology Co., Ltd | |||||||||||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Business combination, percentage of equity interest acquired | 1.00% | ||||||||||
Canaan Creative (HK) Holdings Limited | Other Shareholders | Hangzhou Canaan Creative Information Technology Co., Ltd | |||||||||||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||||||||||
Business combination, percentage of equity interest acquired | 99.00% | 99.00% |
Principal Accounting Policies -
Principal Accounting Policies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥)Segment | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Disclosure Of Significant Accounting Policies [Line Items] | |||||
Investment income | ¥ 5,844 | $ 896 | ¥ 3,055 | ¥ 3,162 | |
Non-current financial investment | 25 | $ 4 | |||
Impairment charge to non-current financial investment | 2,475 | $ 379 | |||
Operating lease asset | ¥ 14,422 | 22,764 | 2,210 | ||
Operating lease assets, estimated economic useful life | 18 months | 18 months | |||
Prepayment received from customers | ¥ 430,388 | 8,288 | $ 65,960 | ||
Revenue recognized from contract liability | ¥ 8,008 | 6,904 | 202,477 | ||
Payment terms under credit sales | The payment terms under credit sales generally consist of 50% down payment and 50% subsequent payments over a period of 90 to 180 days. | The payment terms under credit sales generally consist of 50% down payment and 50% subsequent payments over a period of 90 to 180 days. | |||
Price concessions | ¥ 11,455 | 22,392 | 152,755 | ||
Adjustment to the previously estimated variable considerations | ¥ 14,685 | 27,719 | 0 | ||
Standard product warranty | no longer than 6 months that the product will operate under normal use. | no longer than 6 months that the product will operate under normal use. | |||
Advertising expense | ¥ 3,701 | 2,377 | 2,124 | ||
Value added tax refund description | tax refund for the excess of 3% of its actual tax burden after the VAT is levied at the 16% or 13% tax rate since April 2019. | tax refund for the excess of 3% of its actual tax burden after the VAT is levied at the 16% or 13% tax rate since April 2019. | |||
Value added tax refund received | ¥ 0 | 1,253 | 110,231 | ||
Employee social security and welfare benefit expenses | ¥ 14,919 | 23,026 | 20,618 | ||
Appropriation to statutory general reserve percentage | 10.00% | 10.00% | |||
Statutory general reserve required maximum percentage of registered capital | 50.00% | 50.00% | |||
Profit appropriations to statutory reserves | ¥ 0 | 0 | 68,501 | ||
Number of operating segment | Segment | 1 | 1 | |||
Number of reportable segment | Segment | 1 | 1 | |||
Assets Subject To Operating Lease [Member] | |||||
Disclosure Of Significant Accounting Policies [Line Items] | |||||
Operating lease asset | ¥ 0 | 0 | |||
Government Grants | |||||
Disclosure Of Significant Accounting Policies [Line Items] | |||||
Government grants received | ¥ 32,499 | ¥ 24,926 | ¥ 8,058 | ||
Minimum | |||||
Disclosure Of Significant Accounting Policies [Line Items] | |||||
Value added tax recoverable percentage | 10.00% | 10.00% | |||
Maximum | |||||
Disclosure Of Significant Accounting Policies [Line Items] | |||||
Value added tax recoverable percentage | 12.00% | 12.00% | |||
RMB | |||||
Disclosure Of Significant Accounting Policies [Line Items] | |||||
Exchange rates used for translation per US$ | 6.5249 | 6.9762 | 6.5249 | ||
Foreign currency convenience translation of amounts from RMB into US$ | 6.5250 | 6.5250 |
Principal Accounting Policies_3
Principal Accounting Policies - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - Short-term investments - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Significant Accounting Policies [Line Items] | ||
Balance at fair value total | ¥ 62,386 | ¥ 11,005 |
Level 2 | ||
Disclosure Of Significant Accounting Policies [Line Items] | ||
Balance at fair value total | ¥ 62,386 | ¥ 11,005 |
Principal Accounting Policies_4
Principal Accounting Policies - Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | the shorter of their useful lives and the lease terms |
Computers and Electronic Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computers and Electronic Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Mechanical Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Motor Vehicles | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Software | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Principal Accounting Policies_5
Principal Accounting Policies - Summary of Revenue Segregated by Geographic Region (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | ¥ 447,686 | $ 68,612 | ¥ 1,422,623 | ¥ 2,705,291 |
PRC | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 379,418 | 1,063,630 | 2,057,632 | |
Kazakhstan | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 47,792 | |||
Hong Kong | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 12,301 | 11,216 | 91,028 | |
United States of America | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 3,528 | 46,045 | 284,965 | |
Canada | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 162 | 22,738 | 25,548 | |
Japan | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 236,206 | |||
Other Foreign Countries | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | ¥ 4,485 | ¥ 42,788 | ¥ 246,118 |
Risks and Concentration - Summa
Risks and Concentration - Summary of Accounts Receivable Concentration of Credit risk and Customers Contribution of Total Revenue (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration of Credit Risk | Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 96.00% | ||
Concentration of Credit Risk | Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 31.00% | ||
Concentration of Credit Risk | Accounts Receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 28.00% | ||
Concentration of Credit Risk | Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Concentration of Credit Risk | Accounts Receivable | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Customer Concentration Risk | Total Revenue | Customer F | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 29.00% | ||
Customer Concentration Risk | Total Revenue | Customer G | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | ||
Customer Concentration Risk | Total Revenue | Customer H | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.00% | ||
Customer Concentration Risk | Total Revenue | Customer I | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% |
Risks and Concentration - Addit
Risks and Concentration - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accounts receivable current | ¥ 7,128 | $ 1,092 | ¥ 2,872 |
Credit Concentration Risk [Member] | |||
Accounts receivable current | ¥ 7,128 | ¥ 2,872 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Details) ¥ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020HKD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019HKD ($) |
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | ¥ 391,310 | $ 59,971 | ¥ 516,607 | |||
China | ||||||
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | ¥ 110,241 | 248,716 | ¥ 59,705 | $ 20,381 | ||
Overseas | ||||||
Cash And Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 32,352 | $ 1 | $ 435,152 | $ 1,369 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Receivables [Abstract] | |||||
Accounts receivable, gross | ¥ 7,371 | ¥ 2,872 | |||
Less: allowance for doubtful accounts | (243) | ¥ (3,780) | ¥ (5,932) | ||
Accounts receivable | ¥ 7,128 | $ 1,092 | ¥ 2,872 |
Accounts Receivable - Schedul_2
Accounts Receivable - Schedule of Movement of Allowance for Doubtful Accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Balance at the beginning of the year | ¥ (3,780) | ¥ (5,932) | |
Provisions for doubtful receivables | ¥ (243) | ||
Collection of amounts previously in dispute | 2,152 | ||
Write-off provision for doubtful receivables | ¥ 3,780 | ||
Balance at the end of the year | ¥ (243) | ¥ (3,780) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Inventory Disclosure [Abstract] | |||
Raw materials | ¥ 195,939 | ¥ 58,627 | |
Finished goods | 26,963 | 127,452 | |
Work in process | 2,620 | 8,728 | |
Goods in transit | 1,260 | ||
Total | ¥ 225,522 | $ 34,563 | ¥ 196,067 |
Inventories - Additional Inform
Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Inventory [Line Items] | ||||
Inventory write-down | ¥ 44,916 | ¥ 526,473 | ¥ 427,163 | |
Reclassification of inventory to operating lease assets at the beginning of lease period | 135,276 | 99,523 | 0 | |
Reclassification of operating lease assets to inventory at the end of lease period | 115,887 | 79,065 | 0 | |
Depreciation expense of operating lease assets | 19,389 | $ 2,971 | 20,458 | |
Cost of Revenues | ||||
Inventory [Line Items] | ||||
Depreciation expense of operating lease assets | ¥ 19,389 | ¥ 20,458 | ¥ 0 |
Prepayments and Other Assets -
Prepayments and Other Assets - Summary of Prepayments and Other Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Prepayments and other current assets | |||
Prepayments to vendors | ¥ 203,063 | ¥ 35,801 | |
VAT recoverable | 87,879 | 122,757 | |
Prepayment for repurchase of ordinary shares | 15,825 | ||
VAT refund for export sales | 5,510 | 35,507 | |
Others | 4,089 | 11,955 | |
Prepayments and other current assets | 316,366 | $ 48,484 | 206,020 |
Non-current assets | |||
Rental and other deposits | ¥ 2,530 | ¥ 5,250 |
Prepayments and Other Assets _2
Prepayments and Other Assets - Summary of Prepayments and Other Assets (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit loss, other receivables | ¥ 4,606 | ¥ 0 | ¥ 0 |
Write-down for prepayments to third-party suppliers | 0 | 202,522 | ¥ 358,842 |
Foundry Service [Member] | |||
Purchase obligation to third parties | ¥ 121,015 | ¥ 0 |
Property, Equipment and Softw_3
Property, Equipment and Software - Schedule of Property, Equipment and Software (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Total cost | ¥ 36,592 | ¥ 51,978 | |
Less: Accumulated depreciation and amortization | (24,399) | (29,376) | |
Property, equipment and software, net | 12,193 | $ 1,869 | 22,602 |
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Total cost | 17,130 | 28,542 | |
Computers and Electronic Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total cost | 14,540 | 18,721 | |
Software | |||
Property Plant And Equipment [Line Items] | |||
Total cost | 1,955 | 470 | |
Construction in Progress | |||
Property Plant And Equipment [Line Items] | |||
Total cost | 1,325 | 1,325 | |
Mechanical Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total cost | 1,181 | 1,181 | |
Motor Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Total cost | ¥ 461 | ¥ 1,739 |
Property, Equipment and Softw_4
Property, Equipment and Software - Schedule of Depreciation and Amortization Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | ¥ 11,852 | $ 1,816 | ¥ 13,704 | ¥ 13,145 |
General and administrative expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | 7,680 | 8,062 | 6,667 | |
Research and development expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | 3,874 | 3,662 | 5,197 | |
Cost of Revenues | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | 217 | 1,899 | 1,260 | |
Sales and marketing expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | ¥ 81 | ¥ 81 | ¥ 21 |
Leases - Components of Lease Ex
Leases - Components of Lease Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Lease cost: | |||
Amortization of right-of-use asset | ¥ 13,432 | $ 2,059 | ¥ 10,928 |
Interest of lease liabilities | 1,938 | $ 297 | 1,746 |
Expenses for short-term lease within 12 months | 505 | 605 | |
Total lease cost | ¥ 15,875 | ¥ 13,279 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | ¥ 14,322 | ¥ 11,228 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating lease liabilities | 5,516 | |
Reductions to ROU assets resulting from reductions to lease obligations: | ||
Operating leases | ¥ 427 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term Operating leases | 1 year 3 months 18 days | 1 year 2 months 12 days |
Weighted-average discount rate Operating lease | 6.73% | 7.14% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Leases [Abstract] | |
2021 | ¥ 13,200 |
2022 | 3,603 |
Total undiscounted lease payments | 16,803 |
Less: imputed interest | (860) |
Operating lease liabilities | ¥ 15,943 |
Short-Term Debts - Schedule of
Short-Term Debts - Schedule of Short-Term Debts (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Short-term bank loans | ¥ 34,754 | ¥ 99,903 |
Short-Term Debts - Additional I
Short-Term Debts - Additional Information (Details) - Short-Term Loan Agreement - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Interest Rate 2.70% | ||
Short-term Debt [Line Items] | ||
Debt instrument, aggregated principal amount | ¥ 35,000 | |
Debt instrument, interest rates | 2.84% | |
Interest Rate Range - 2.70% to 2.85% | ||
Short-term Debt [Line Items] | ||
Debt instrument, aggregated principal amount | ¥ 152,000 | |
Interest Rate Range - 4.35% to 4.79% | ||
Short-term Debt [Line Items] | ||
Debt instrument, aggregated principal amount | ¥ 200,000 | |
Interest Rate 4.35% | ||
Short-term Debt [Line Items] | ||
Debt instrument, aggregated principal amount | ¥ 100,000 | |
Debt instrument, interest rates | 4.35% | |
Minimum | Interest Rate Range - 2.70% to 2.85% | ||
Short-term Debt [Line Items] | ||
Debt instrument, interest rates | 2.70% | |
Minimum | Interest Rate Range - 4.35% to 4.79% | ||
Short-term Debt [Line Items] | ||
Debt instrument, interest rates | 4.35% | |
Maximum | Interest Rate Range - 2.70% to 2.85% | ||
Short-term Debt [Line Items] | ||
Debt instrument, interest rates | 2.85% | |
Maximum | Interest Rate Range - 4.35% to 4.79% | ||
Short-term Debt [Line Items] | ||
Debt instrument, interest rates | 4.79% |
Notes Payable - Additional Info
Notes Payable - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Notes Payable [Abstract] | |||
Restricted cash | ¥ 4,494 | $ 689 | ¥ 8,239 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accrued Liabilities and Other Liabilities [Abstract] | |||
VAT received from customers related to contract liabilities | ¥ 28,958 | ¥ 937 | |
Salary and welfare payable | 25,148 | 24,034 | |
Rental deposits | 4,011 | ||
Refund from depository bank – current | 2,060 | ||
Other tax payables | 874 | 2,225 | |
Professional service fee accrual | 7,493 | ||
Other service fee payables | 2,196 | ||
Others | 2,292 | 3,806 | |
Total | 63,343 | $ 9,708 | ¥ 40,691 |
Non-current | |||
Refund from depository bank – non-current | ¥ 8,020 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Thousands | Nov. 25, 2020shares | Nov. 21, 2019USD ($)$ / sharesshares | May 31, 2019shares | Feb. 28, 2019USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Mar. 23, 2018USD ($)$ / sharesshares |
Class Of Stock [Line Items] | |||||||||
Authorized share capital amount | $ | $ 50,000,000 | $ 50,000,000 | |||||||
Ordinary shares, shares authorized | 1,000,000,000,000 | 1,000,000,000,000 | 1,000,000,000,000 | 500,000,000 | |||||
Ordinary shares, shares issued | 2,372,222,222 | 2,372,222,222 | 500,000,000 | ||||||
Ordinary shares, par value | $ / shares | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.0001 | |||||
Issuance of ordinary shares (in shares) | 233,217,776 | 222,222,222 | |||||||
Issuance of ordinary shares | $ 100,000,000 | ¥ 669,559 | |||||||
Shares issued, price per share | $ / shares | $ 0.45 | ||||||||
Ordinary shares contributed for future share awards | 403,157 | ||||||||
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance- | ¥ | ¥ 544,122 | ||||||||
Ordinary shares, shares outstanding | 2,328,326,132 | 2,328,326,132 | 2,350,123,270 | ||||||
American Depositary Shares | |||||||||
Class Of Stock [Line Items] | |||||||||
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance- | $ | $ 90,000,000 | ||||||||
Class A Common Shares | |||||||||
Class Of Stock [Line Items] | |||||||||
Shares issued upon conversion | 45,000,000 | ||||||||
Common stock vote per share | one vote | ||||||||
Ordinary shares, shares outstanding | 2,016,701,688 | ||||||||
Class B Common Shares | |||||||||
Class Of Stock [Line Items] | |||||||||
Shares converted | 45,000,000 | ||||||||
Common stock vote per share | fifteen votes | ||||||||
Ordinary shares, shares outstanding | 311,624,444 | ||||||||
Initial Public Offering | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of ordinary shares in each american depositary share | 15 | ||||||||
Initial Public Offering | American Depositary Shares | |||||||||
Class Of Stock [Line Items] | |||||||||
Issuance of ordinary shares (in shares) | 10,000,000 | ||||||||
Shares issued, price per share | $ / shares | $ 9 |
Treasury Stocks - Additional In
Treasury Stocks - Additional Information (Details) ¥ in Thousands, $ in Millions | Sep. 09, 2020USD ($)shares | Nov. 30, 2019shares | Dec. 31, 2020CNY (¥)shares | Nov. 25, 2020shares | Dec. 31, 2019shares | Feb. 28, 2019shares | Apr. 30, 2018shares |
Equity Class Of Treasury Stock [Line Items] | |||||||
Common stock shares outstanding | 2,328,326,132 | 2,328,326,132 | 2,350,123,270 | ||||
Ordinary shares contributed for future share awards | 403,157 | ||||||
Treasury stock, shares | 43,896,090 | 22,098,952 | |||||
2018 Equity Incentive Plan | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Ordinary shares Held in trust | 51,624,000 | ||||||
Ordinary shares contributed for future share awards | 403,157 | ||||||
Restricted Share Units | 2018 Equity Incentive Plan | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Shares transferred from treasury stock to ordinary shares | 4,002,052 | ||||||
Restricted Share Units | Initial Public Offering | 2018 Equity Incentive Plan | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Restricted share units vested transferred from treasury stocks to ordinary shares | 13,928,205 | ||||||
Restricted Ordinary Shares | 2018 Equity Incentive Plan | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Treasury stock, shares | 18,096,900 | ||||||
Restricted Ordinary Shares | Initial Public Offering | 2018 Equity Incentive Plan | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Restricted share units vested transferred from treasury stocks to ordinary shares | 16,000,000 | ||||||
Shares Repurchase [Member] | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Share repurchased | 25,799,190 | ||||||
Proceeds from repurchases | ¥ | ¥ 23,915 | ||||||
Share Repurchase Program [Member] | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ | $ 10 | ||||||
Number of ordinary shares representing american depositary shares | 15 | ||||||
American Depository Shares [Member] | Shares Repurchase [Member] | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Common stock shares outstanding | 1,719,946 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | Apr. 25, 2018 | Oct. 08, 2016 | Nov. 30, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-based compensation expense | ¥ 44,789 | ¥ 2,950 | ¥ 270,242 | ¥ 18,586 | |||||
Issuance of ordinary shares (in shares) | 233,217,776 | 222,222,222 | |||||||
Employee | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Issuance of ordinary shares (in shares) | 111,217,778 | ||||||||
Fair value of ordinary shares | ¥ 213,135 | ||||||||
Share Options | 2016 Equity Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share options granted | 39,600,000 | ||||||||
Exercise price of share options granted | ¥ 0.023 | ||||||||
Share options vesting period description | The vesting period was from October 2016 to May 2017 | ||||||||
Share options exercise period description | the exercise period was from June 2017 to July 2017. | ||||||||
Restricted Share Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Restricted share units vested | 4,002,052 | 13,928,205 | |||||||
Unrecognized compensation expense | ¥ 2,151 | ||||||||
Unrecognized compensation expense, weighted average period of recognition | 5 years 4 months 17 days | ||||||||
Restricted Share Units | Initial Public Offering | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Restricted share units vested | 2,000,000 | ||||||||
Restricted Share Units | 2017 Equity Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Restricted share units granted | 71,200,000 | ||||||||
Exercise price of restricted share units granted | ¥ 0.015 | ||||||||
Restricted Share Units | 2017 Equity Incentive Plan | Tranche One | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Restricted share units vested | 39,170,000 | ||||||||
Restricted Share Units | 2017 Equity Incentive Plan | Tranche Two | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share options vesting period description | two or four service years | ||||||||
Restricted share units vested | 30,030,000 | ||||||||
Restricted Share Units | 2017 Equity Incentive Plan | Tranche Three | Initial Public Offering | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Restricted share units vested | 2,000,000 | ||||||||
Restricted Ordinary Shares | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Restricted share units granted | 19,594,000 | 19,594,000 | |||||||
Restricted share units vested | 16,000,000 | 16,000,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Shares Activity (Details) - Restricted Share Units - ¥ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, Outstanding | 15,733,334 | 32,030,000 |
Number of shares, Forfeited | (2,691,282) | (2,368,461) |
Number of shares, Vested | (4,002,052) | (13,928,205) |
Number of shares, Outstanding | 9,040,000 | 15,733,334 |
Weighted average grant date fair value, Outstanding | ¥ 1.51 | ¥ 1.55 |
Weighted average grant date fair value, Forfeited | 1.51 | 1.51 |
Weighted average grant date fair value, Vested | 1.51 | 1.59 |
Weighted average grant date fair value, Outstanding | ¥ 1.51 | ¥ 1.51 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Restricted Ordinary Shares Activity Under Replacement Agreement (Details) - Restricted Ordinary Shares - ¥ / shares | Apr. 25, 2018 | Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, Outstanding | 17,594,000 | 0 | ||
Number of shares, Granted | 19,594,000 | 19,594,000 | ||
Number of shares, Forfeited | (1,594,000) | (2,000,000) | ||
Number of shares, Vested | (16,000,000) | (16,000,000) | ||
Number of shares, Outstanding | 0 | 17,594,000 | ||
Weighted average grant date fair value, Outstanding | ¥ 2.56 | ¥ 0 | ||
Weighted average grant date fair value, Granted | 2.56 | |||
Weighted average grant date fair value, Forfeited | 2.56 | 2.56 | ||
Weighted average grant date fair value, Vested | 2.56 | |||
Weighted average grant date fair value, Outstanding | ¥ 0 | ¥ 2.56 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - CNY (¥) ¥ in Thousands | Jan. 01, 2018 | Mar. 16, 2007 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Line Items] | ||||||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | |||
Income tax holiday, description | Canaan is qualified as an integrated circuit enterprise and enjoying a 5-year tax holiday (two year full exemption followed by three year half reduction) beginning from 2016 after utilizing all prior years’ tax losses. Therefore, Hangzhou Canaan is eligible to enjoy a preferential tax rate of 0% from 2016 to 2017 and 12.5% from 2018 to 2020. | |||||
Income tax holiday period | 5 years | |||||
Income tax full exemption holiday period | 2 years | |||||
Income tax half reduction holiday period | 3 years | |||||
Withholding income tax rate on dividends | 10.00% | |||||
Undistributed earnings available for distribution | ¥ 701,633 | ¥ 809,134 | ||||
Withholding income tax | 0 | 0 | ||||
Tax loss carry forwards | ¥ 1,762,521 | 702,845 | ||||
Tax loss carry forwards period | 10 years | 5 years | ||||
Operating loss carry forwards expiration start year | 2021 | |||||
Operating loss carry forwards expiration end year | 2030 | |||||
Deferred tax assets valuation allowance | ¥ 304,790 | ¥ 254,039 | ¥ 119,065 | ¥ 1 | ||
Other PRC Subsidiaries | ||||||
Income Taxes [Line Items] | ||||||
Statutory income tax rate | 25.00% | |||||
Tax Year 2016 to 2017 | ||||||
Income Taxes [Line Items] | ||||||
Preferential tax rate | 0.00% | |||||
Tax Year 2018 to 2020 | ||||||
Income Taxes [Line Items] | ||||||
Preferential tax rate | 12.50% | |||||
Tax Year 2019 to 2021 | ||||||
Income Taxes [Line Items] | ||||||
Preferential tax rate | 15.00% | |||||
Hong Kong | ||||||
Income Taxes [Line Items] | ||||||
Statutory income tax rate | 16.50% | 16.50% | ||||
Hong Kong | FIE | ||||||
Income Taxes [Line Items] | ||||||
Ownership percentage | 25.00% | |||||
Hong Kong | Maximum | ||||||
Income Taxes [Line Items] | ||||||
Withholding income tax rate | 5.00% | |||||
PRC | Enterprise Income Tax | ||||||
Income Taxes [Line Items] | ||||||
Statutory income tax rate | 25.00% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
PRC statutory income tax rates | 25.00% | 25.00% | 25.00% |
Permanent book – tax difference | 4.50% | (3.30%) | (5.80%) |
Different tax rates in other jurisdictions | (2.00%) | (0.40%) | 1.70% |
Effect of tax holiday | (4.40%) | (8.40%) | (41.50%) |
Change in valuation allowance | (23.10%) | (12.90%) | 59.50% |
Total | 0.00% | 0.00% | 38.90% |
Effects of tax holidays entitled by the PRC subsidiaries | ¥ (9,553) | ¥ (87,043) | ¥ 83,178 |
Effects of tax holidays entitled by the PRC subsidiaries on basic earnings/(loss) per share (RMB cent per share) | ¥ (0.41) | ¥ (4.04) | ¥ 4.23 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Composition of Income Tax Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ 0 | ¥ 0 | ¥ 76,748 | |
Deferred tax expense | 0 | 0 | 1,062 | |
Income tax expense | ¥ 0 | $ 0 | ¥ 0 | ¥ 77,810 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||||
Tax losses carried forward | ¥ 286,044 | ¥ 121,948 | ||
Allowance for doubtful accounts | 1,744 | 567 | ||
Provision for inventory | 16,840 | 128,163 | ||
Unrealized gain from intragroup sale | 162 | 3,361 | ||
Subtotal | 304,790 | 254,039 | ||
Less: Valuation allowance | ¥ (304,790) | ¥ (254,039) | ¥ (119,065) | ¥ (1) |
Income Taxes - Schedule of Move
Income Taxes - Schedule of Movement of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | ¥ 254,039 | ¥ 119,065 | ¥ 1 |
Additions | 50,751 | 134,974 | 119,064 |
Ending balance | ¥ 304,790 | ¥ 254,039 | ¥ 119,065 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transactions [Abstract] | ||
Amounts due from related parties | ¥ 0 | ¥ 0 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Transaction amount with related parties | ||
Transaction amount with related parties | ¥ 637 | ¥ 68 |
Key Management | ||
Transaction amount with related parties | ||
Transaction amount with related parties | ¥ 68 | |
Disposal of motor vehicles | ||
Transaction amount with related parties | ||
Transaction amount with related parties | ¥ 637 |
Basic and Diluted Net Earning_3
Basic and Diluted Net Earnings/(Loss) Per Share - Computation of Basic and Diluted Earnings Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Basic net earnings/(loss) per share calculation: Numerator | ||||
Net income/(loss) | ¥ (215,094) | $ (32,962) | ¥ (1,034,510) | ¥ 122,432 |
Basic and diluted net earnings/(loss) per share calculation: Denominator | ||||
Weighted-average ordinary shares outstanding | 2,345,703,779 | 2,345,703,779 | 2,153,172,769 | 1,964,499,660 |
Basic and diluted net earnings/(loss) per share (RMB cent per share) | ¥ / shares | ¥ (9.17) | ¥ (48.05) | ¥ 6.23 | |
Diluted net earnings/(loss) per share calculation: Numerator | ||||
Net income/(loss) | ¥ (215,094) | $ (32,962) | ¥ (1,034,510) | ¥ 122,432 |
Diluted net earnings/(loss) per share calculation: Denominator | ||||
— Basic | 2,345,703,779 | 2,345,703,779 | 2,153,172,769 | 1,964,499,660 |
Add: weighted-average RSUs | 13,661,413 | |||
Weighted-average number of shares used in calculating diluted net earnings (loss) per share | 2,345,703,779 | 2,345,703,779 | 2,153,172,769 | 1,978,161,073 |
Diluted net earnings/(loss) per share (RMB cent per share) | (per share) | ¥ (9.17) | $ (1.41) | ¥ (48.05) | ¥ 6.19 |
Basic and Diluted Net Earning_4
Basic and Diluted Net Earnings/(Loss) Per Share - Effects of Outstanding RSUs Excluded From Computation of Diluted Loss Per Share Due to Anti-Dilutive Effect (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Share Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted-average of shares | 10,710,636 | 13,923,725 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) | Dec. 31, 2020CNY (¥) |
Loss Contingencies [Line Items] | |
Contingent liabilities | ¥ 0 |
Restricted net assets - Additio
Restricted net assets - Additional Information (Details) - PRC ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Statutory Accounting Practices [Line Items] | |
Percentage of after tax profit as reserve | 10.00% |
Percentage of statutory surplus reserve to registered capital | 50.00% |
Restricted net assets | ¥ 163,288 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Subsidiaries | |
Condensed Financial Statements Captions [Line Items] | |
Restricted net assets as percentage of consolidated and unconsolidated subsidiaries | 25.00% |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 391,310 | $ 59,971 | ¥ 516,607 | ||
Total current assets | 1,007,206 | 154,360 | 940,810 | ||
Total assets | 1,036,376 | 158,831 | 991,426 | ||
Current liabilities: | |||||
Refund from depository bank – current | 2,060 | ||||
Non-current liabilities: | |||||
Refund from depository bank – non-current | 8,020 | ||||
Total liabilities | 603,818 | 92,539 | 298,631 | ||
Shareholders' equity: | |||||
Ordinary shares (US$0.00000005 par value; 1,000,000,000,000 shares authorized, 2,372,222,222 shares issued, 2,350,123,270 and 2,328,326,132 shares outstanding as of December 31, 2019 and 2020, respectively) | 1 | 1 | |||
Subscriptions receivable from shareholders | (1) | (1) | |||
Treasury stocks (US$0.00000005 par value; 22,098,952 and 43,896,090 shares as of December 31, 2019 and 2020, respectively) | 23,915 | 3,665 | |||
Additional paid-in capital | 1,634,619 | 250,516 | 1,631,609 | ||
Statutory reserves | 97,307 | 14,913 | 97,307 | ||
Accumulated other comprehensive loss | (79,780) | (12,227) | (55,542) | ||
Accumulated deficit | (1,195,673) | (183,245) | (980,579) | ||
Total shareholders' equity | 432,558 | 66,292 | 692,795 | ¥ 240,978 | ¥ 857,241 |
Total liabilities and shareholders' equity | 1,036,376 | 158,831 | 991,426 | ||
Parent Company | |||||
Current assets: | |||||
Cash and cash equivalents | 147 | 23 | 14 | ||
Receivables from subsidiaries | 442,491 | 67,814 | 692,781 | ||
Total current assets | 442,638 | 67,837 | 692,795 | ||
Total assets | 442,638 | 67,837 | 692,795 | ||
Current liabilities: | |||||
Refund from depository bank – current | 2,060 | 316 | |||
Non-current liabilities: | |||||
Refund from depository bank – non-current | 8,020 | 1,229 | |||
Total liabilities | 10,080 | 1,545 | |||
Shareholders' equity: | |||||
Ordinary shares (US$0.00000005 par value; 1,000,000,000,000 shares authorized, 2,372,222,222 shares issued, 2,350,123,270 and 2,328,326,132 shares outstanding as of December 31, 2019 and 2020, respectively) | 1 | 1 | |||
Subscriptions receivable from shareholders | (1) | (1) | |||
Treasury stocks (US$0.00000005 par value; 22,098,952 and 43,896,090 shares as of December 31, 2019 and 2020, respectively) | (23,915) | (3,665) | |||
Additional paid-in capital | 1,634,619 | 250,516 | 1,631,609 | ||
Statutory reserves | 97,307 | 14,913 | 97,307 | ||
Accumulated other comprehensive loss | (79,780) | (12,227) | (55,542) | ||
Accumulated deficit | (1,195,673) | (183,245) | (980,579) | ||
Total shareholders' equity | 432,558 | 66,292 | 692,795 | ||
Total liabilities and shareholders' equity | ¥ 442,638 | $ 67,837 | ¥ 692,795 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheets - Parenthetical (Details) - $ / shares | Dec. 31, 2020 | Nov. 25, 2020 | Dec. 31, 2019 | Jun. 30, 2018 | Mar. 23, 2018 |
Condensed Financial Statements Captions [Line Items] | |||||
Ordinary shares, par value | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.0001 | |
Ordinary shares, shares authorized | 1,000,000,000,000 | 1,000,000,000,000 | 1,000,000,000,000 | 500,000,000 | |
Ordinary shares, shares issued | 2,372,222,222 | 2,372,222,222 | 500,000,000 | ||
Ordinary shares, shares outstanding | 2,328,326,132 | 2,328,326,132 | 2,350,123,270 | ||
Treasury stocks, par value | $ 0.00 | $ 0.00 | |||
Treasury stock, shares | 43,896,090 | 22,098,952 | |||
Parent Company | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Ordinary shares, par value | $ 0.00 | $ 0.00 | |||
Ordinary shares, shares authorized | 1,000,000,000,000 | 1,000,000,000,000 | |||
Ordinary shares, shares issued | 2,372,222,222 | 2,372,222,222 | |||
Ordinary shares, shares outstanding | 2,328,326,132 | 2,350,123,270 | |||
Treasury stocks, par value | $ 0.00 | $ 0.00 | |||
Treasury stock, shares | 43,896,090 | 22,098,952 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company - Schedule of Condensed Statements of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating expenses: | ||||
Research and development expenses | ¥ (140,041) | $ (21,462) | ¥ (168,982) | ¥ (189,680) |
Sales and marketing expenses | (19,980) | (3,062) | (21,917) | (38,731) |
General and administrative expenses | (131,624) | (20,172) | (347,633) | (146,684) |
Interest income | 3,153 | 483 | 3,853 | 4,234 |
Other gains | 30,958 | 4,745 | 25,093 | 3,838 |
Net income/(loss) | (215,094) | (32,962) | (1,034,510) | 122,432 |
Total comprehensive loss | (239,332) | (36,677) | (1,024,822) | 57,202 |
Parent Company | ||||
Operating expenses: | ||||
Research and development expenses | (652) | (100) | (22,465) | (7,208) |
Sales and marketing expenses | (41) | (6) | (358) | (797) |
General and administrative expenses | (2,277) | (349) | (247,426) | (5,850) |
Loss from operations | (2,970) | (455) | (270,249) | (13,855) |
Interest income | 5 | |||
Other gains | 2,425 | 372 | ||
Share of loss from subsidiaries | (214,549) | (32,882) | (764,266) | (526,370) |
Net income/(loss) | (215,094) | (32,965) | (1,034,510) | (540,225) |
Foreign currency translation adjustment, net of nil tax | (24,238) | (3,694) | 9,688 | (65,230) |
Total comprehensive loss | ¥ (239,332) | $ (36,659) | ¥ (1,024,822) | ¥ (605,455) |
Condensed Financial Informati_7
Condensed Financial Information of the Parent Company - Schedule of Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities | ||||
Net cash (used in)/provided by operating activities | ¥ 42,297 | $ 6,481 | ¥ (280,058) | ¥ (12,743) |
Cash flows from investing activities | ||||
Net cash (used in)/provided by investing activities | (49,576) | (7,597) | (16,330) | 83,978 |
Cash flows from financing activities | ||||
Proceeds from issuance of ordinary shares | 669,559 | |||
Proceeds from issuance of ordinary shares upon IPO | 544,122 | |||
Payment for repurchase of ordinary shares | 23,915 | 3,665 | ||
Net cash provided by/(used in) financing activities | (111,940) | (17,155) | 277,951 | 295,200 |
Net (decrease)/increase in cash and cash equivalents | (119,219) | (18,271) | (18,437) | 366,435 |
Effect of exchange rate changes on cash | (9,823) | (1,505) | (1,927) | 2,275 |
Cash and cash equivalents, and restricted cash at the beginning of year | 524,846 | 80,436 | 545,210 | 176,500 |
Cash and cash equivalents, and restricted cash at the end of year | 395,804 | 60,660 | 524,846 | ¥ 545,210 |
Parent Company | ||||
Cash flows from operating activities | ||||
Receipt of refund from depository bank | 13,285 | 2,036 | ||
Other cash used in operating activities | (1) | (39) | ||
Net cash (used in)/provided by operating activities | 13,284 | 2,036 | (39) | |
Cash flows from investing activities | ||||
Increase in receivables from subsidiaries | 28,451 | 4,360 | (1,252,029) | |
Net cash (used in)/provided by investing activities | 28,451 | 4,360 | (1,252,029) | |
Cash flows from financing activities | ||||
Proceeds from issuance of ordinary shares | 669,559 | |||
Proceeds from issuance of ordinary shares upon IPO | 582,449 | |||
Payment for repurchase of ordinary shares | (23,915) | (3,665) | ||
Prepayment under share repurchase agreement | (16,146) | (2,474) | ||
Net cash provided by/(used in) financing activities | (40,061) | (6,139) | 1,252,008 | |
Net (decrease)/increase in cash and cash equivalents | 1,674 | 257 | (60) | |
Effect of exchange rate changes on cash | (1,541) | (236) | 74 | |
Cash and cash equivalents, and restricted cash at the beginning of year | 14 | 2 | ||
Cash and cash equivalents, and restricted cash at the end of year | ¥ 147 | $ 23 | ¥ 14 |