Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
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 | No | |
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 | ROOM 2101, 21ST Floor, Building 1 | |
Entity Address, Address Line Two | Yard 1, No. 81 Beiqing Road | |
Entity Address, City or Town | Haidian District, Beijing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100094 | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Registration Statement | false | |
ICFR Auditor Attestation Flag | false | |
Auditor Name | KPMG Huazhen LLP | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1186 | 1424 |
Auditor Location | Beijing, China | Shanghai, the People’s Republic of China |
Class A Ordinary Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,492,514,048 | |
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 | ROOM 2101, 21ST Floor, Building 1 | |
Entity Address, Address Line Two | Yard 1, No. 81 Beiqing Road | |
Entity Address, City or Town | Haidian District, Beijing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100094 | |
Contact Personnel Name | James Jin Cheng, Chief Financial Ofiicer | |
City Area Code | +86-010 | |
Local Phone Number | 6097-4080 | |
Contact Personnel Email Address | IR@canaan-creative.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 2,684,342 | $ 421,232 | ¥ 391,310 |
Restricted cash | 47,362 | 7,432 | 4,494 |
Short-term investments | 62,386 | ||
Accounts receivable, net | 367 | 58 | 7,128 |
Inventories | 812,363 | 127,477 | 225,522 |
Prepayments and other current assets | 1,729,027 | 271,323 | 316,366 |
Total current assets | 5,273,461 | 827,522 | 1,007,206 |
Non-current assets: | |||
Cryptocurrency | 20,310 | 3,187 | |
Property, equipment and software | 185,566 | 29,119 | 12,193 |
Right-of-use assets, net | 30,920 | 4,852 | 14,422 |
Deferred tax assets | 99,044 | 15,542 | |
Other non-current assets | 2,956 | 464 | 2,530 |
Non-current financial investment | 20,000 | 3,138 | 25 |
Total non-current assets | 358,796 | 56,302 | 29,170 |
Total assets | 5,632,257 | 883,824 | 1,036,376 |
Current liabilities: | |||
Short-term debts | 34,754 | ||
Accounts payable | 143,441 | 22,509 | 37,407 |
Notes payable | 13,963 | ||
Contract liabilities | 1,340,731 | 210,390 | 430,388 |
Income tax payable | 148,719 | 23,337 | |
Accrued liabilities and other current liabilities | 437,394 | 68,637 | 63,343 |
Lease liabilities, current | 14,819 | 2,325 | 12,621 |
Total current liabilities | 2,085,104 | 327,198 | 592,476 |
Non-current liabilities: | |||
Lease liabilities, non-current | 16,292 | 2,557 | 3,322 |
Other non-current liabilities | 5,824 | 914 | 8,020 |
Warrant liability | 66,347 | 10,411 | |
Total liabilities | 2,173,567 | 341,080 | 603,818 |
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 and 2,328,326,132 shares outstanding as of December 31, 2020, and 2,804,138,492 shares issued and 2,577,386,552 shares outstanding as of December 31, 2021, respectively) | 1 | 1 | |
Subscriptions receivable from shareholders | (1) | (1) | |
Treasury stocks (US$0.00000005 par value; 43,896,090 and 226,751,940 shares as of December 31, 2020 and 2021, respectively) | (231,281) | (36,293) | (23,915) |
Additional paid-in capital | 2,891,134 | 453,682 | 1,634,619 |
Statutory reserves | 97,420 | 15,287 | 97,307 |
Accumulated other comprehensive loss | (101,925) | (15,994) | (79,780) |
Retained earnings (accumulated deficit) | 803,342 | 126,062 | (1,195,673) |
Total shareholders' equity | 3,458,690 | 542,744 | 432,558 |
Total liabilities and shareholders' equity | ¥ 5,632,257 | $ 883,824 | ¥ 1,036,376 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 2,804,138,492 | 2,372,222,222 |
Ordinary shares, shares outstanding | 2,577,386,552 | 2,328,326,132 |
Treasury stocks, par value | $ 0.00 | $ 0.00 |
Treasury stock, shares | 226,751,940 | 43,896,090 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net revenues | ||||
Mining revenues | ¥ 21,688 | $ 3,403 | ||
Leases revenue | 7,556 | 1,186 | ¥ 18,963 | ¥ 24,548 |
Other revenues | 347 | 54 | 901 | 2,548 |
Total net revenues | 4,986,706 | 782,522 | 447,686 | 1,422,623 |
Cost of revenues | (2,135,961) | (335,179) | (409,922) | (1,938,626) |
Gross profit (loss) | 2,850,745 | 447,343 | 37,764 | (516,003) |
Operating expenses: | ||||
Research and development expenses | (332,846) | (52,231) | (140,041) | (168,982) |
Sales and marketing expenses | (100,467) | (15,765) | (19,980) | (21,917) |
General and administrative expenses | (589,107) | (92,444) | (131,624) | (347,633) |
Total operating expenses | (1,022,420) | (160,440) | (291,645) | (538,532) |
Income (loss) from operations | 1,828,325 | 286,903 | (253,881) | (1,054,535) |
Interest income | 7,310 | 1,147 | 3,153 | 3,853 |
Change in fair value of warrant liability | 190,178 | 29,843 | 0 | 0 |
Investment income | 277 | 43 | 5,844 | 3,055 |
Interest expense and guarantee fee | ¥ | (3,587) | (20,038) | ||
Foreign exchange gains, net | 17,890 | 2,807 | 2,419 | 6,809 |
Value added tax refunds | ¥ | 1,253 | |||
Other income, net | 6,410 | 1,006 | 30,958 | 25,093 |
Income (loss) before income tax expense | 2,050,390 | 321,749 | (215,094) | (1,034,510) |
Income tax expense | (50,108) | (7,863) | 0 | 0 |
Net income (loss) | 2,000,282 | 313,886 | (215,094) | (1,034,510) |
Foreign currency translation adjustment, net of nil tax | (22,145) | (3,475) | (24,238) | 9,688 |
Total comprehensive income (loss) | ¥ 1,978,137 | $ 310,411 | ¥ (239,332) | ¥ (1,024,822) |
Weighted average number of shares used in per Class A and Class B ordinary share calculation: | ||||
— Basic | shares | 2,521,667,815 | 2,521,667,815 | 2,345,703,779 | 2,153,172,769 |
— Diluted | shares | 2,576,157,247 | 2,576,157,247 | 2,345,703,779 | 2,153,172,769 |
Net earnings (loss) per Class A and Class B ordinary share (cent per share) | ||||
— Basic | (per share) | ¥ 79.32 | $ 12.45 | ¥ (9.17) | ¥ (48.05) |
— Diluted | (per share) | ¥ 77.65 | $ 12.18 | ¥ (9.17) | ¥ (48.05) |
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | ¥ 491,461 | $ 77,120 | ¥ 2,950 | ¥ 270,242 |
Cost of revenues | ||||
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | 269 | 42 | ||
Research and development expenses | ||||
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | 99,173 | 15,562 | 652 | 22,465 |
Sales and marketing expenses | ||||
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | 8,240 | 1,293 | 41 | 358 |
General and administrative expenses | ||||
Share-based compensation expenses were included in: | ||||
Share-based compensation expenses | 383,779 | 60,223 | 2,257 | 247,419 |
Product | ||||
Net revenues | ||||
Net revenues | 4,956,891 | 777,844 | 427,522 | 1,392,859 |
Service | ||||
Net revenues | ||||
Net revenues | ¥ 224 | $ 35 | ¥ 300 | ¥ 2,668 |
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 (¥)shares | 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, 2018 | ¥ 240,978 | ¥ 1 | ¥ (1) | ¥ 154,970 | ¥ 97,307 | ¥ (65,230) | ¥ 53,931 | ||||
Beginning 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) | |||||||||
Profit appropriations to statutory reserves | 0 | ||||||||||
Net income/(loss) | (1,034,510) | (1,034,510) | |||||||||
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 | 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) | (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) | |||||||||
Profit appropriations to statutory reserves | 0 | ||||||||||
Net income/(loss) | (215,094) | (215,094) | |||||||||
Ending Balance at Dec. 31, 2020 | ¥ 432,558 | ¥ 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 | |||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance | ¥ 103,543 | ¥ 103,543 | |||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net of cost of issuance (in Shares) | shares | (34,683,225) | 34,683,225 | |||||||||
Share Repurchase (Shares) | shares | (34,683,225) | 34,683,225 | |||||||||
Share Repurchase | (103,543) | ¥ (103,543) | |||||||||
Share-based compensation expense | 491,461 | 491,461 | |||||||||
Foreign currency translation | (22,145) | $ (3,475) | (22,145) | ||||||||
Vesting of restricted share units and restricted shares | 86 | 86 | |||||||||
Vesting of restricted share units and restricted shares (in shares) | shares | 101,574,270 | (101,574,270) | |||||||||
Profit appropriations to statutory reserves | 113 | 113 | (113) | ||||||||
Repurchase of vested employee restricted share units for tax withholding | (150,705) | ¥ (150,705) | |||||||||
Repurchase of vested employee restricted share units for tax withholding(Shares) | shares | (33,255,495) | 33,255,495 | |||||||||
Resale of vested employee restricted share units for tax withholding | 45,728 | ¥ 46,882 | (1,154) | ||||||||
Resale of vested employee restricted share units for tax withholding (in Shares) | shares | 13,043,895 | (13,043,895) | |||||||||
New issuance of ordinary shares and warrants | 764,968 | 764,968 | |||||||||
New issuance of ordinary shares and warrants(Shares) | shares | 202,380,975 | 70,833,345 | |||||||||
Issuance of ordinary shares as a reserve for share-based compensation awards | shares | 158,701,950 | ||||||||||
Net income/(loss) | 2,000,282 | 313,886 | 2,000,282 | ||||||||
Ending Balance at Dec. 31, 2021 | ¥ 3,458,690 | $ 542,744 | ¥ 1 | ¥ (231,281) | ¥ 2,891,134 | ¥ 97,420 | ¥ (101,925) | ¥ 803,342 | |||
Ending Balance (in shares) at Dec. 31, 2021 | shares | 2,577,386,552 | 2,577,386,552 | 2,577,386,552 | (1) | 226,751,940 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ 2,000,282 | $ 313,886 | ¥ (215,094) | ¥ (1,034,510) |
Adjustments for: | ||||
Revenue recognized on acceptance of cryptocurrency | (21,688) | (3,403) | 0 | |
Depreciation and amortization of property, equipment and software | 11,009 | 1,728 | 11,852 | 13,704 |
Depreciation of operating lease assets | 3,118 | 489 | 19,389 | 20,458 |
Foreign exchange gain | (9,668) | (1,517) | (14,094) | (9,636) |
Provision of allowance for doubtful receivables | 911 | 143 | 4,849 | 0 |
Deferred income tax benefits | (99,044) | (15,542) | 0 | 0 |
Loss on disposal of property, equipment and software | 47 | 7 | 96 | 0 |
Share-based compensation expense | 491,461 | 77,120 | 2,950 | 270,242 |
Change in fair value of warrant liability | (190,178) | (29,843) | 0 | 0 |
Investment income | (277) | (43) | (5,844) | (3,055) |
Reduction in the carrying amount of the right-of-use assets | 17,584 | 2,759 | 13,432 | 10,928 |
Interest of lease liabilities | 1,613 | 253 | 1,938 | 1,746 |
Impairment charge to non-current financial investment | 25 | 4 | 2,475 | 0 |
Impairment loss of cryptocurrency | 1,061 | 166 | 0 | 0 |
Write-down of inventories | 50,714 | 7,958 | 44,916 | 526,473 |
Changes in assets and liabilities: | ||||
Accounts receivable | 6,761 | 1,061 | (4,499) | 20,815 |
Inventories | (787,554) | (123,584) | (93,760) | (157,326) |
Prepayments and other current assets | (1,413,497) | (221,807) | (99,127) | (20,256) |
Income tax receivable | 27,054 | |||
Amount due from a related party | 68 | |||
Other non-current assets | (426) | (67) | 2,720 | 1,090 |
Prepaid interest expense and guarantee fee | 246 | 39 | (149) | 7,873 |
Accounts payable | 106,034 | 16,639 | (61,643) | 51,810 |
Notes payable | (13,963) | (2,191) | (13,499) | 27,462 |
Contract liabilities | 910,343 | 142,853 | 422,100 | 1,384 |
Income tax payable | 148,719 | 23,337 | (609) | |
Accrued liabilities and other current liabilities | 247,940 | 38,907 | 29,591 | (24,545) |
Other non-current liabilities | (2,196) | (345) | 8,020 | |
Lease liabilities | (20,527) | (3,221) | (14,322) | (11,228) |
Net cash provided by (used in) operating activities | 1,438,850 | 225,786 | 42,297 | (280,058) |
Cash flows from investing activities: | ||||
Payment for short-term investments | 0 | 0 | (1,334,077) | (554,700) |
Proceeds from disposal of short-term investments | 62,663 | 9,833 | 1,288,540 | 546,750 |
Purchase of property, equipment and software | (37,708) | (5,917) | (2,176) | (8,380) |
Proceeds from disposal of property, equipment and software | 160 | 25 | 637 | |
Payment for non-current financial investments | (20,000) | (3,138) | (2,500) | |
Net cash provided by (used in) investing activities | 5,115 | 803 | (49,576) | (16,330) |
Cash flows from financing activities: | ||||
Proceeds from issuance of ordinary shares | 669,559 | |||
Payment for repurchase of ordinary shares | (103,543) | (16,248) | (23,915) | |
Prepayment under share repurchase agreement | (573) | (90) | (16,146) | |
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance | 544,122 | |||
Payment for cost of issuance | (5,705) | (895) | (6,879) | |
Proceeds from borrowings | 0 | 0 | 152,000 | 200,000 |
Proceeds from Sale of Treasury Stock | 45,728 | 7,176 | ||
Repurchase for tax withholdings on vesting of restricted share units | (24,508) | (3,846) | ||
Proceeds from issuance of ordinary shares and warrants | 1,029,455 | 161,544 | ||
Repayment of borrowings | (35,000) | (5,492) | (217,000) | (1,135,730) |
Net cash provided by (used in) financing activities | 905,854 | 142,149 | (111,940) | 277,951 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 2,349,819 | 368,738 | (119,219) | (18,437) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (13,919) | (2,184) | (9,823) | (1,927) |
Cash and cash equivalents, and restricted cash at the beginning of year | 395,804 | 62,110 | 524,846 | 545,210 |
Cash and cash equivalents, and restricted cash at the end of year | 2,731,704 | 428,664 | 395,804 | 524,846 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 246 | 39 | 3,736 | 11,583 |
Cash paid for guarantee fee | 7,145 | |||
Cash paid for income tax | 433 | 68 | 3,510 | |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Transfer from inventory to operating lease assets | 15,169 | 2,380 | 135,276 | 99,523 |
Transfer from operating lease assets to inventory | 12,051 | 1,891 | ¥ 115,887 | 79,065 |
Mining equipment transfer from inventory to property, equipment and software | 146,881 | 23,049 | ||
Accrued initial public offering related cost | ¥ 7,493 | |||
Accrued tax withholdings on vesting of restricted share units | 126,198 | 19,803 | ||
Revenue recognized on acceptance of cryptocurrency | ¥ 21,688 | $ 3,403 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. Organization and principal activities Canaan Inc., an exempted company with limited liability incorporated in the Cayman Islands, through wholly-owned subsidiaries (collectively referred to as the “Company”), is principally engaged in integrated circuit (the “IC”) design and sale and lease of final mining equipment 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. As of December 31, 2021, the Company’s principal 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 Special Administrative Region 100% Research and development of ICs Hangzhou Canaan Intelligence Information Technology Co., Ltd. April 9, 2013 Hangzhou, China 100% Research and development of ICs Canaan Creative Co., Ltd. April 1, 2013 Beijing, China 100% Research and development of ICs Langfang Creative Technology Co., Ltd. May 15, 2014 Langfang, China 100% Assembly of mining equipment and spare parts Canaan Convey Co., Ltd. November 2, 2017 Beijing, China 100% International distribution of mining equipment and spare parts Zhejiang Avalon Technology Co., Ltd. December 5, 2017 Hangzhou, China 100% Distribution of mining equipment and spare parts Canaan Bright Sight Co., Ltd. December 24, 2018 Beijing, China 100% International distribution of AI products Hangzhou Canaan Chuangxin Technology Co., Ltd. December 26, 2018 Hangzhou, China 100% Research and development of ICs Canaan Creative (SH) Co., Ltd. January 27, 2021 Shanghai, China 100% Research and development of ICs Canaan Creative International PTE. Ltd. March 9, 2021 Singapore 100% International distribution of mining equipment and spare parts |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant 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 Company in the preparation of the accompanying consolidated financial statements are summarized below. (b) Use of estimates The preparation of the Company’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, warrant liability, valuation of deferred tax assets, 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 Company’s consolidated financial statements include the financial statements of Canaan Inc. and its subsidiaries. All transactions and balances among Canaan Inc. and its subsidiaries have been eliminated upon consolidation. Subsidiaries are those entities in which Canaan Inc. 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 Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of Canaan Inc. and its subsidiaries incorporated outside of the PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Company is RMB as determined based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters . Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income (loss) as foreign exchange related gains or loss. The financial statements of the Company are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of Canaan Inc. and its subsidiaries incorporated outside of PRC are translated into RMB using the applicable exchange rates at the balance sheet date, income and expense items are translated at average exchange rates prevailing during the fiscal year. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a separate component of shareholders’ equity on the consolidated financial statement. (e) Convenience translation The United States dollar (“US$”) 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=RMB on December 3 0 (f) Warrant Liability The freestanding warrants to purchase American Depositary Share (“ADSs”) at a future date were determined to be freestanding instruments that were accounted for as a liability. At initial recognition, the Company recorded the warrant liability on the consolidated balance sheets at its estimated fair value. The proceeds from issuance of ordinary shares and warrants are firstly allocated to warrant liability based on its fair value. The residual method is used to allocate the proceeds to shareholders’ equity. The warrant liability is subject to remeasurement at each reporting period and the Company adjusted the carrying value of the warrant liability to fair value at the end of each reporting period utilizing the binominal option pricing model, with changes in estimated fair value included in the change in fair value of warrant liability on the consolidated statement of comprehensive income (loss). (g) 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 Company 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 measurement. 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 Company’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, non-current As of December 31, 2020 and 2021, 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 Company measures its short-term investments and warrant liability at fair value. The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 62,386 — 62,386 As of December 31, 202 1 Level 1 Level 2 Level 3 Balance at fair value Liabilities Warrant liability — — 66,347 66,347 The Company 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 Company classifies the valuation techniques that use these inputs as Level 2. The warrants are accounted for as a liability and remeasured to fair value at the end of each reporting period utilizing the binomial option pricing model, which involves significant assumptions including the risk-free interest rate, the expected volatility, expected dividend yield and expected term (Note 13 (h) 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. As of December 31, 2020 2021 RMB denominated bank deposits with financial institutions in the PRC 110,241 1,167,445 US dollar denominated bank deposits with financial institutions in the PRC 248,716 1,447,336 Others denominated bank deposits with financial institutions in the PRC - 39,746 US dollar denominated bank deposits with overseas financial institutions PRC 32,352 29,498 Others denominated bank deposits with overseas financial institutions 1 317 Total 391,310 2,684,342 The bank deposits, including term deposits and restricted cash, with financial institutions in the mainland of the PRC mainland, Hong Kong, United States and Singapore are insured by the government authorities up to RMB500, HKD500, USD250 and SGD75 per bank, respectively. The bank deposits including term deposits and restricted cash are insured by the government authorities with amounts up to RMB9,086 and RMB11,579 as of December 31, 2020 with (i) Restricted cash Restricted cash includes cash that are not readily available for the Company’s normal disbursements. Restricted cash are primarily related to cash deposits with banks and financial institutions subject to legal restrictions (note 4), or required as part of collateral for the Company’s notes payable (Note 11) arrangements. (j) 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 in the amount of RMB3,055, RMB5,844 and RMB277 in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2019, 2020 and 2021, respectively. (k) Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Company 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. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted. (l) Inventories Inventories, consisting of finished goods, work in process, raw materials and goods in transit, which are purchased from contractual 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 Company takes ownership, risks and rewards of the products purchased. In accordance with ASC 855- 10 (m) Cryptocurrency Cryptocurrency is, by its nature, identifiable non-monetary assets that lack physical substance. Future economic benefit attributable to cryptocurrency is expected to flow to the Company because cryptocurrency can be exchanged to standard currencies on public trading platforms. Furthermore, the cost of the Company’s cryptocurrency assets can be measured reliably because cryptocurrency earned from mining activities can be measured with reference to the spot price to standard currencies on the date when they are earned. The Company accounts for the cryptocurrency received from mining as intangible assets with indefinite useful life in its consolidated balance sheets because, at the time of assessment, there is no foreseeable limit to the period over which such assets are expected to generate cash flows. The Company further adopts the cost model to account for its cryptocurrency and reviews its useful life and impairment at each reporting date in accordance with ASC 350 Intangibles—Goodwill and Other. The Company accounts for cryptocurrency at cost, instead of revaluing cryptocurrency at their fair value on each accounting reference date, because the latter model is subject to inherent and substantial volatility in the value of cryptocurrency from time to time. Cost is calculated using the weighted average cost method. Gains or losses arising from the disposal of cryptocurrency are determined as the difference between the net disposal proceeds and the carrying amount of the cryptocurrency and are recognized in profit or loss on the date of disposal. 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. The recoverable amount of cryptocurrencies is based on the fair value less costs of disposal. The fair value of the cryptocurrencies is determined by using the quoted price on the cryptocurrencies platform website well recognized by the block chain users. During the year ended December 31, 2021, the Company recognized impairment loss of RMB1,061 on cryptocurrency, which is included in general and administrative expenses in the consolidated statements of comprehensive income (loss). (n) Operating lease assets Operating lease assets consist of lease contracts for mining equipment for Bitcoin mining with customers, Company . ( o 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 Mining equipment 1.5 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. ( p Non-current The Company’s non-current in-substance non-current non-current During the year ended December 31, 2020 and 2021, the Company recognized impairment charge of RMB2,475 and RMB25 recorded in other income, net. (q) Impairment of long-lived assets For other long-lived assets including property, equipment and software, the Company evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Company 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. (r) 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, 2020 and 2021 was RMB430,388 and RMB1,340,731, respectively. The revenue recognized during the years ended December 31, 2019, 2020 and 2021 for the beginning balance of contract liability was RMB6,904, RMB8,008 and RMB424,426, respectively and the significant increase was mainly due to increased down payments for the sales orders of mining equipment to be delivered in 2022. The balance as of December 31, 2021 is expected to be recognized as revenues within one year. (s) Revenue from contracts with customers (ASC 606) The Company 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 Company generates revenue primarily from the sale of mining equipment directly to a customer, such as a business or individual engaged in Bitcoin mining activities. As the Bitcoin price fluctuates, the Company may adjust the selling price of mining equipment 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 Company’s sales arrangements usually require a full prepayment before the delivery of products. The Company started to offer credit sales to certain significant, long-standing customers in the PRC from 2018 to September 2020. 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 Company 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 Company 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 Company to its credit sales customers, the Company 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. During the year ended December 31, 2021, the adjustment to the previously estimated variable considerations was nil (years ended December 31, 2019 and 2020: RMB27,719 and RMB14,685). The Company did not provide price concessions to customers in 2021. The Company recognizes products revenue at a point in time based on management’s evaluation of when the control of the products has been passed to customers. The transfer of control is considered complete when products have been picked up by or shipped to the Company’s customers. The Company offers a standard product warranty of 360 days that the product will operate under normal use. At the time revenue is recognized, 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. Mining revenue The Company performs mining activities with its own mining equipment to earn cryptocurrency reward. The Company recognizes revenue when it earns the cryptocurrency as a result of its mining activity. The amount of revenue recognized is measured with reference to the spot price of the cryptocurrency to standard currencies on the date when it is earned. (t) Revenue from lease arrangements as lessor (ASC 842, Lease) From July 2019, the Company started to generate revenue from the leases of mining equipment 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 mining equipment meet the classification of operating leases, and revenues from operating leases are recognized on a straight-line basis over the contract terms. The Company ceased leasing mining equipment in the the second quarter of 2021. ( u Value-added-tax Value added tax recoverable represent amounts paid by the Company of the value-added-tax (v) Cost of revenues Amounts recorded as cost of revenues relate to direct expenses incurred to generate revenue. Such costs are recorded as incurred. Cost of revenues primarily consists of product costs, including costs of raw material, contractual manufacturers for production, labor costs, shipping and handling costs, manufacturing and depreciation, warehousing costs and slow-moving, obsolete inventories write-downs, prepayments write-downs and tax surcharges. (w) 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 Company recognizes research and development expenses as expense when incurred. ( x 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 RMB2,377, RMB3,701 and RMB4,461 for the years ended December 31, 2019, 2020 and 2021, respectively. (y) 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. (z) 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 RMB24,926, RMB32,499 and RMB5,699 for the years ended December 31, 2019, 2020 and 2021, respectively. (aa) 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. The Company has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less and the Company recognizes lease expense for these leases on a straight-line basis over the lease terms. (ab) Employee social security and welfare benefits Employees of the Company 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 Company 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 Company’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 amounted to RMB23,026, RMB14,919 and RMB27,740 for the years ended December 31, 2019, 2020 and 2021, respectively. (ac) Income The Company 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 deferred income tax asset will not be realized in the foreseeable future. (ad) 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 Company 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 Company recognizes incremental compensation cost in the period when the modification occurs. For awards not being fully vested, the Company 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 Company’s ordinary shares at the grant date of the award. Prior to the listing, estimation of the fair value of the Company’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 Company’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 Model. The determination of the fair value of share options is affected by the share price of the Company’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 by management with the assistance from an independent valuation firm. (ae) Statutory reserves The Company’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 Company Company 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 Company 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 Canaan Inc. in terms of cash dividends, loans or advances. The Company has made nil, nil and RMB113 appropriations to statutory reserve for the years ended December 31, 2019, 2020 and 2021, respectively. (af) Repurchase of share The Company 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. (ag) 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 ord |
Risks and Concentration
Risks and Concentration | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Risks and Concentration | 3. Risks and concentration (a) Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments and accounts receivable. The Company places its cash and cash equivalents and restricted cash with financial institutions with high credit ratings and quality. The Company conducts credit evaluations of customers, and generally does not require collateral or other security from its customers. The Company 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 As of December 31, 2020 and 2021, accounts receivable were RMB7,128 and RMB367, respectively. Accounts receivable concentration of credit risk is as below: As of December 31, 2020 2021 Customer A 96 % * Customer B * 52 % * Less than 10% Customers which contributed more than 10% of total revenue are as below: For the Years Ended December 31, 2019 2020 2021 Customer C * 29 % * Customer D * * 18 % Customer E 17 % * * Customer F * 16 % * * Less than 10% (b) Supplier concentration The Company purchased integrated circuits, an important component of its products, mainly from one supplier for the years ended December 31, 2019. For the year ended December 31, 2020, the Company’s purchases of its integrated circuits mainly from two suppliers. For the year ended December 31, 2021, the Company’s purchases substantially all its integrated circuits from one supplier. 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. |
Restricted cash
Restricted cash | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Cash and Cash Equivalents [Abstract] | |
Restricted Cash | 4. Restricted cash In December 2021, cash balance of RMB47,362 was temporarily restricted by a bank from access to the bank account during the restriction period. The restriction was subsequently released in April 2022. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 5 Inventories Inventories consist of the following: As of December 31, 2020 2021 Raw materials 195,939 429,208 Finished goods 26,963 304,801 Work in process 2,620 78,354 Total 225,522 812,363 During the years ended December 31, 2019, 2020 and 2021, the Company recorded write-down of RMB526,473, RMB44,916 and RMB50,714 for the obsolete inventories in cost of revenues, respectively. For the years ended December 31, 2019, 2020 and 2021, at the beginning of lease period, the inventories reclassified to operating lease assets were RMB99,523, RMB135,276 and 15,169, respectively. At the end of lease period, the operating lease assets with net book value of RMB79,065, RMB115,887 and R MB RMB was recorded in the cost of revenues for the year ended December 31, 2019, 2020 and 2021. The Company ceased the asset lease business in 2021 as a result of the restriction of mining activities in the PRC. |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments and Other Assets | 6 Prepayments and other assets The current and non-current following As of December 31, 2020 2021 Prepayments and other current assets Prepayments to vendors (Note a) 203,063 1,427,820 VAT recoverable 87,879 260,571 Prepayment for repurchase of ordinary shares 15,825 15,901 VAT refund for export sales (Note b) 5,510 14,041 Others (Note c) 4,089 10,694 316,366 1,729,027 Other Rental and other deposits 2,530 2,956 Note a: Prepayments to vendors mainly represent prepayments made to third-party suppliers for foundry service. The Company also records a provision for the prepayment to third-party suppliers when the Company 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, 2019, 2020 and 2021, the Company recorded a write-down of Company RMB Note b: Canaan Convey Co., Ltd. is entitled to VAT refund for its export sales. Note c: During the years ended December 31, 2019, 2020 and 2021, the Company |
Cryptocurrency
Cryptocurrency | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Cryptocurrency [Abstract] | |
Cryptocurrency | 7. Cryptocurrency As of December 31, 2021 Gross carrying amount 21,371 Less: Impairment of cryptocurrency (1,061 ) Net 20,310 |
Property, Equipment and Softwar
Property, Equipment and Software | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 2021 Cost: Mining equipment — 146,881 Computers and electronic equipment 14,540 27,492 Leasehold improvements 17,130 21,412 Mechanical equipment 1,181 7,694 Software 1,955 5,438 Construction in progress 1,325 665 Motor vehicles 461 470 Total cost 36,592 210,052 Less: Accumulated depreciation and amortization (24,399 ) (24,486 ) Property, equipment and software, net 12,193 185,566 Depreciation and amortization expenses recognized for the years ended December 31, 2019, 2020 and 2021 are summarized as follows: For the Years Ended December 31, 2019 2020 2021 General and administrative expenses 8,062 7,680 6,439 Research and development expenses 3,662 3,874 2,826 Cost of revenues 1,899 217 1,715 Sales and marketing expenses 81 81 29 Total 13,704 11,852 11,009 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 Lease cost: Reduction in the carrying amount of ROU assets 10,928 13,432 17,584 Interest of lease liabilities 1,746 1,938 1,613 Expenses for short-term lease within 12 months 605 505 443 Total lease cost 13,279 15,875 19,640 (b) Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2019 2020 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 11,228 14,322 20,739 Right-of-use Operating leases — 5,516 36,672 Reductions to ROU assets resulting from reductions to lease obligations: Operating leases — 427 2,590 (c) Supplemental balance sheet information related to leases was as follows: As of December 31, 2019 2020 2021 Weighted-average remaining lease term Operating leases 1.2 year 1.3 year 2.4 year Weighted-average discount rate Operating lease 7.14% per annum 6.73% per annum 5.17% per annum Years Ending December 31, As of December 31, 2021 2022 14,917 2023 13,867 2024 and thereafter 4,222 Total undiscounted lease payments 33,006 Less: imputed interest (1,895 ) Total lease liabilities 31,111 Amounts due within 12 month s 14,819 Non-current lease liability 16,292 |
Short-Term Debts
Short-Term Debts | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term Debts | 10. Short-term debts As of December 31, 2020 2021 Short-term bank loans 34,754 — During the years ended December 31, 2020, the Company 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, 2020, the aggregated outstanding principal amounts under these agreements were per annum. The Company repaid the full balance in 2021. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2021 | |
Notes Payable [Abstract] | |
Notes Payable | 1 1 Notes payable Notes payable represent payables in the form of notes issued by the Company. The notes are endorsed by banks to ensure that noteholders will be paid upon maturity. The Company is required to maintain a certain balance of cash deposit in designated bank accounts for the notes payable outstanding as of December 31, 2020. Such required cash deposit o f RMB4,494 was classified as restricted cash on the consolidated balance sheet as of December 31, 2020. No such balance of cash deposit was restricted as of December 31, 2021. |
Accrued Liabilities and Other L
Accrued Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities and Other Liabilities | 12. Accrued liabilities and other liabilities As of December 31, 2020 2021 Accrued liabilities and other current liabilities VAT payable — 128,939 Withholding tax payables due to restricted share units (Note a) — 126,198 Salary and welfare payable 25,148 118,712 Other tax payables 874 19,128 Warranty reserve (Note b) — 18,026 Customer refund — 10,738 VAT received from customers related to contract liabilities 28,958 2,427 Rental deposits 4,011 2,120 Refund from depository bank – current 2,060 2,013 Others 2,292 9,093 Total 63,343 437,394 Other liabilities Refund from depository bank – non-current 8,020 5,824 Note a: Upon vesting of the restricted share units, the Company withholds the shares to cover the statutory withholding requirement. As of December 31 2021, RMB126,198 was withheld on behalf of the employee and was subsequently remitted to the tax authority in January 2022. Note b: For mining equipment, the Company provides its customers for 360 days warranty, subject to certain conditions, such as normal use. The Company provides for the estimated costs of warranties at the time revenue is recognized. Factors that affect the Company’s warranty obligation include product defect rates and costs of repair or replacement. Movement of provision for warranty is as follows: For the year ended Accrued warranty—beginning of year — Accrual for warranties issued during the year 28,826 Warranty claims paid (10,800 ) Accrued warranty—end of year 18,026 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | 13. Warrants In connection with the issuance of ordinary shares (Note 14) in May 2021, the Company also issued warrants to the investors, which entitle the investors to purchase up to an aggregate of 4,047,620 ADS (representing 60,714,300 Class A ordinary Shares) at $16.38 per ADS (representing $1.09 Class A ordinary share). Also, the Company issued warrants to two placement agents, which entitle them to purchase up to an aggregate of 674,603 ADSs (representing 10,119,045 Class A ordinary shares) at $15.75 per ADS (representing $1.05 Class A ordinary share). The warrants are all outstanding as of December 31, 2021. The warrants are all outstanding as of December 31, 2021 and total of 70,833,345 ordinary shares are accounted as treasury stocks. The Company classified the warrants as warrant liability. At initial recognition, the Company recorded the warrant liability on the consolidated balance sheet at its estimated fair value and subsequently remeasured to fair value at the end of each reporting period utilizing the binomial option pricing model, which involves significant assumptions as below: For the Year Ended Risk Free Rate 0.37%-0.81 % Volatility 131.47%-127.93 % Expected dividend yield 0 % Expected term 2.3 years-3 years The risk-free rate of return was estimated based on the yield of US Treasury Strip with a maturity life equal to the remaining maturity life of the Warrants as of the Valuation Date. The expected volatility was estimated based on the historical volatility of comparable peer public companies and the Company with a time horizon close to the expected term of the Company’s warrant liability. Expected dividend yield is zero as the Company has never declared or paid any cash dividends on its shares, and the Company does not anticipate any dividend payments in the foreseeable future. Expected term is the remaining life of the warrant liability. The fair value of the warrant liability was US$39,877 (equivalent to RMB258,782) at the issuance date and US$10,406 (RMB66,347 ) income (loss). |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Ordinary Shares | 14. 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 1 5 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 shares. Upon the completion of the Company’s IPO, the Company’s authorized share capital was re-designated into Class A ordinary shares and Class B ordinary shares, Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to and each Class B ordinary share is entitled to . In addition, certain matters including those related to the change of control of the Company require an additional approval by the holders of a majority of Class A ordinary shares voting as a separate class. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Class B ordinary shares will be automatically converted into the same number of Class A ordinary shares under certain circumstances, including any transfer of Class B ordinary shares by the holder thereof to any person or entity which is not an affiliate of such holder. 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. On May 3, 2021, the Company issued 13,492,065 ADSs (202,380,975 Class A ordinary shares) to certain institutional investors for RMB1,029,455, net of issuance cost. The Company also issued to the investors warrants to purchase up to an aggregate of 4,047,620 ADSs (60,714,300 Class A ordinary shares). Also, the Company issued warrants to two placement agents, which entitles them to purchase up to an aggregate of 674,603 ADSs (10,119,045 Class A ordinary shares). The Company classified the warrants as warrant liability and the fair value of the warrant liability was RMB258,782 as of the issuance date, the residual proceeds of RMB770,673 was allocated to the Company’s ordinary shares. (Note 13) As of December 31, 2021, the authorized ordinary shares are 1,000,000,000,000, of which 2,804,138,492 shares were issued and 2,577,386,552 shares were outstanding. These outstanding shares consist of (1) 2,265,762,108 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, 2021 | |
Equity [Abstract] | |
Treasury Stock | 1 5 Treasury stocks 2018 Equity Incentive Plan 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 6 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 of 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 1 6 In 2020, 4,002,052 restricted share units were transferred from treasury stock to ordinary shares. For the year ended December 31, 2021, 5,757,945 restricted share units that have been vested were transferred from treasury stock to ordinary shares under the 2018 Incentive Plan (Note 16). As of December 31, 2021, 12,338,955 issued ordinary shares are accounted as treasury stocks. Amended 2018 Plan In April 2021, the Board of Directors of the Company amended the 2018 Plan (the “Amended 2018 Plan”) (Note 16). In May and September 2021, the Company issued 94,927,065 Class A ordinary shares and 63,774,885 Class A ordinary shares, which were then reserved under the Amended 2018 Plan. For the year ended December 31, 2021, 95,816,325 restricted share units that have been vested were transferred from treasury stock to ordinary shares under the Amended 2018 Plan. Under the Amended 2018 Plan, the Company withholds the shares issued to the employees to meet the income tax withholding requirement upon the vesting of the Restricted share units. For the year ended December 31, 2021, the Company withheld 33,255,495 Class A ordinary shares for RMB150,706 and sold 13,043,895 Class A ordinary shares for RMB45,728. The Company did not retire any of the repurchased Class A ordinary shares. As of December 31, 2021, 83,097,225 issued ordinary shares are accounted as treasury stocks. Share Repurchase Program 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) 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. During the year ended 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(a f Effective September 19, 2021, the Board of Directors approved a share repurchase program to repurchase in the open market up to US$20 million worth of its outstanding (i) American Depositary Share (“ADS”) each representing 15 Class A ordinary shares, and As of December 31, 2021, a total of 60,482,415 repurchased ordinary shares are accounted as treasury stocks. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 1 6 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 and 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 date, 30,030,000 RSUs contain two or four service years of the employees and the remaining 2,000,000 RSUs shall be vested upon occurrence of IPO. As part of the reorganization to facilitate the offshore financing 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 Company 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. Also on April 25, 2018, some employees who are under the 2016 Plan entered into share award replacement agreement (the “Replacement Agreement”) with the Company under which a total of ordinary shares of the Company held by the employees became restricted and shall be vested upon IPO of the Company. If the employee voluntarily and unilaterally terminates his employment/service contract with any Company entities or his employment, the unvested restricted shares shall automatically lapse . Deferred share-based compensation was measured for the restricted shares using the estimated fair value of the Company’s ordinary shares at the date of imposition of the restriction in April 2018, and the compensation cost for the restricted shares shall be recognized upon occurrence of IPO. As of December 31, 2018, there were 17,594,000 restricted shares outstanding. 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. In April 2021, the Board of Directors of the Company amended the 2018 Plan (the “Amended 2018 Plan”). Under the Amended 2018 Plan, in April 2021 and on every January 1 thereafter during which the 2018 Plan remains in effect, the maximum aggregate number of Class A o s o s o s o s Compan y issued Class A Class A ordinary shares, which were then reserved under the Amended 2018 Plan. In 2021, the Company granted 236,768,940 RSUs and 114,000,000 options to Company’s employees under the Amended 2018 Plan. For the year ended December 31, 2021, 95,816,325 restricted share units were transferred from treasury stock to ordinary shares upon vesting under the Amended 2018 Incentive Plan. (a) Restricted share units The following table summarizes the RSUs activity for the years ended December 31, 2019, 2020 and 2021: Number of Weighted average RMB Outstanding a s of 32,030,000 1.55 Forfeited (2,368,461 ) 1.51 Vested (13,928,205 ) 1.59 Outstanding a s of 15,733,334 1.51 Forfeited (2,691,282 ) 1.51 Vested (4,002,052 ) 1.51 Outstanding a s of 9,040,000 1.51 Granted 236,768,940 3.74 Forfeited (6,991,000 ) 3.10 Vested (101,574,270 ) 2.15 Outstanding a s of 137,243,670 4.81 In 2021, the Company granted 236,768,940 RSUs to the Company’s employees under the Amended 2018 Plan. The Company used closing price of ordinary share to determine the fair value of the RSUs after completion of the Company’s IPO. As of December 31, 2021, there was RMB519,951 unrecognized compensation expense related to RSUs, which is expected to be recognized over a weighted-average period of 34.33 months. (b) Share options The following table summarizes the share options for the years ended December 31, 2019, 2020 and 2021: Number of Weighted-Average Weighted Aggregate RMB Years RMB Outstanding a s of — — — — Granted 114,000,000 4.90 — — Outstanding a s of 114,000,000 4.90 9.10 — Expected to vest a s of 94,677,000 4.90 9.10 — Exercisable a s of — — — — The aggregate intrinsic value as of December 31, 2021 in the table above represents the difference between the fair value of the Company’s ordinary share on The fair values of the share options granted by the Company to employees for the year ended December 31, 2021 are as follows: For the Year Ended December 31, 2021 Weighted average grant date fair value of option per share 6.63 Aggregate grant date fair value of options 465,553 As of December 31, 2021, there was RMB332,754 unrecognized compensation expense related to share options, which is expected to be recognized over a weighted-average period of 27.39 months. The assumptions used to estimate the fair values of the share options granted were as follows: For the Year 2021 Risk-free rate of return (1) 1.25% to 1.85% Dividend yield (2) 0% Expected volatility (3) 136.91% to 142.01% Expected term (4) 10 years Exercise multiple (5) 2.80 Fair value of ordinary share US$ 3.78 to US$17.51 1) The risk-free rate of return was estimated based on the yield of US Strip Bond with a maturity life equal to the remaining maturity life of the Company’s options as of the valuation date. 2) Dividend yield is zero as the Company has never declared or paid any cash dividends on its shares, and the Company does not anticipate any dividend payments in the foreseeable future. 3) The expected volatility was estimated based on the historical volatility of comparable peer public companies and the Company with a time horizon close to the contract life of the Company’s options. 4) Expected term is the contract life of the option. 5) The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it has considered the statistics by making reference to a widely-accepted academic research publication. (c) Restricted ordinary shares The following table summarizes the restricted ordinary shares activity under Replacement Agreement for the year ended December 31, 2019: Number of shares Weighted average grant date fair value RMB Outstanding a s of 17,594,000 2.56 Forfeited (1,594,000 ) 2.56 Vested (16,000,000 ) 2.56 Outstanding as of December 31, 2019, 2020 and 2021 — — The Company used income approach involving applying appropriate discount rates to estimated cash flows that are based on earnings forecast and discount for lack of marketability to determine the fair value of the restricted ordinary share at the date of imposition of the restriction in April 2018 with assistance from an independent valuation firm. For the year ended December 31, 2020 and 2021, there was no outstanding restricted ordinary shares. (d) Other share-based compensation In May 2019, certain shareholders of the Company sold 233,217,776 ordinary shares in aggregate to certain existing shareholders and certain third party investors. Out of the total 233,217,776 shares transferred, 111,217,778 shares were purchased by existing shareholders who were also the employees of the Company. The net excess of appraised fair value of the ordinary shares (acquired by employee shareholders) over the considerations amounted to RMB213,135, which was charged to general and administrative expenses as share-based compensation costs for the year ended December 31, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 7 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 subsidiaries incorporated in Hong Kong is subject to Hong Kong profits tax rate of 16.5% on its estimated assessable profit for the years ended December 31, 2019, 2020 and 2021. Dividends income received from subsidiaries in China are not subject to Hong Kong profits tax. (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 Co., Ltd. (“Canaan Creative”) obtained its High and New Technology Enterprises (“HNTE”) certificate with a valid period of Hangzhou Canaan Intelligence Information Technology Co., Ltd. (“Hangzhou Canaan”) obtain ears 5-year The Company’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, 2020 and 2021, the aggregated amount of undistributed earnings of the Company Compan y the A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the Years Ended December 31, 2019 2020 2021 PRC statutory income tax rates (25.0 )% (25.0 )% 25.0 % Permanent book-tax difference 3.3 % (4.5 )% 1.4 % Share-based compensation 5.8 % 0.2 % 3.4 % Super deduction of R&D expense (1.5 )% (5.7 )% (2.6 )% Others (1.0 )% 1.0 % 0.6 % Different tax rates in other jurisdictions 0.4 % 2.0 % (2.2 )% Effect of tax holiday 8.4 % 4.4 % (7.8 )% Change in valuation allowance 12.9 % 23.1 % (14.0 )% Total 0.0 % 0.0 % 2.4 % Effects of tax holidays entitled by the PRC subsidiaries (87,043 ) (9,553 ) 160,246 Effects of tax holidays entitled by the PRC subsidiaries on basic (loss) earnings per Class A and Class B ordinary share (RMB cent per share) (4.04 ) (0.41 ) 6.35 Composition of income tax expense (benefit) The current and deferred portions of income tax expense (benefit) included in the consolidated statements of comprehensive income (loss) are as follows: For the Years Ended December 31, 2019 2020 2021 Current income tax expense — — 149,152 Deferred income tax benefits — — (99,044 ) Income tax expense — — 50,108 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, 2020 and 2021 are as follows: As of December 31, 2020 2021 Deferred tax assets Tax losses carried forward 286,044 102,239 Write-down of inventories 16,840 10,771 Warranty reserve — 2,704 Allowance for doubtful accounts 1,744 1,314 Unrealized gain from intracompany sale 162 — Subtotal 304,790 117,028 Less: Valuation allowance (304,790 ) (17,984 ) Deferred tax assets — 99,044 As of December 31, 2020 and 2021, the Company had tax loss carry forwards of approximately RMB1,762,521 and RMB437,187, which mainly arose from its PRC subsidiaries and to a less extent from its HK subsidiary. Most of the As of December 31, 2021, the had net operating loss carry forwards of RMB84,255 attributable to the PRC mainland and Hong Kong subsidiaries. by the PRC mainland companies will expire in varying amounts between 2022 and 2031. Tax losses of RMB84,255 will expire, if unused, by 2025 and thereafter. Other than the expiration, there are no other limitations or restrictions upon the Company’s ability to use these operating loss carryforwards. Valuation allowance is provided against deferred tax assets when the Company 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 Company 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 Company’s estimate of its future taxable income. If events occur in the future that allow the Company to realize part or all 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, 2020 and 2021, valuation allowances of RMB304,790 and RMB17,984 were provided because it was more likely than not that the Company 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 Company 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, 2019 2020 2021 Beginning balance 119,065 254,039 304,790 Additions (decreases) during the year 134,974 50,751 (286,806 ) Ending balance 254,039 304,790 17,984 The Company 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, 2020 and 2021, the Company did not have any significant unrecognized uncertain tax positions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 8 Related party transactions For the years ended December 31, 2019, 2020 and 2021, the related party transactions are as follows: For the Years Ended December 31, 2019 2020 2021 Transaction amount with related parties Disposal of motor vehicles — 637 — — 637 — As of December 31, 2020 and 2021, there are no related party balances. |
Basic and Diluted Earnings (Los
Basic and Diluted Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Basic and diluted earnings (loss) per share | 19. Basic and diluted 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, 2019, 2020 and 2021 as follows: For the Years Ended December 31, 2019 2020 2021 Basic earnings (loss) per share calculation Numerator: Net income (loss) (1,034,510 ) (215,094 ) 2,000,282 Denominator: Weighted-average ordinary shares outstanding 2,153,172,769 2,345,703,779 2,521,667,815 Net earnings (loss) per Class A and Class B ordinary share (RMB cent per share) (48.05 ) (9.17 ) 79.32 For the Years Ended December 31, 2019 2020 2021 Diluted earnings (loss) per share calculation Numerator: Net income (loss) (1,034,510 ) (215,094 ) 2,000,282 Denominator: Weighted-average ordinary shares outstanding 2,153,172,769 2,345,703,779 2,521,667,815 Add: weighted-average RSUs — — 54,489,432 Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share 2,153,172,769 2,345,703,779 2,576,157,247 Diluted earnings (loss) per Class A and Class B ordinary share (RMB cent per share) (48.05 ) (9.17 ) 77.65 The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows: For the Year Ended December 31, 2019 2020 2021 Weighted-average RSUs 13,923,725 10,710,636 — Share options — — 114,000,000 Warrants — — 70,833,345 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 20. Contingencies On March 4, 2020, a putative class action was filed in the United States District Court of Oregon (the “Federal Action”) against the Company, certain officers and directors of the Company, among others. The complaint alleges that the Form F-1 registration statement, initially filed with the Securities and Exchange Commission on October 28, 2019, contained material misstatements and omissions in violation of federal securities laws. On March 6, 2020, another putative class action, making substantially similar allegations, was filed in New York County Supreme Court (the “State Action”) against the Company and certain officers and directors of the Company. On June 1, 2020, the Company filed a motion to stay all proceedings in the State Action pending adjudication of the Federal Action, which was granted on July 21, 2020. Subsequently, the Federal Action was transferred to the U.S. District Court for the Southern District of New York (the “Court”) on September 2, 2020. On October 7, 2020, lead plaintiffs in the Federal Action filed an amended complaint asserting claims under Section 11 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act for that the registration statement failed to disclose three alleged related party transactions. On December 7, 2020, the Company filed a motion to dismiss the amended complaint in the Federal Action. On July 8, 2021, the Court dismissed the first amended complaint but allowed plaintiffs to file a second amended complaint by August 6, 2021. On August 6, 2021, plaintiffs filed a letter motion for leave to file a second amended complaint. On August 27, 2021, the Company filed a letter response to oppose plaintiffs’ August 6, 2021 letter motion and to seek a final judgment dismissing the Federal Action to be entered. On March 31, 2022, plaintiffs’ motion for leave to file a second amended complaint has been denied as futile, and plaintiffs’ claims have been hereby dismissed with prejudice, and the Court has closed the motion. As of the date of this annual report, On April 15, 2021, a new putative class action was filed in the United States District Court for the Southern District of New York against the Company and certain officers of the Company. The complaint alleges that the Company’s press release issued in February 2021 about increased visibility into revenue and the size and quality of orders the Company was receiving were materially false and misleading. Plaintiff claims that the truth about the Company’s revenue was revealed in April 2021, when the Company announced its latest financial results. On December 14, 2021, the Court so-ordered this stipulation. On February 7, 2022, lead plaintiffs filed an amended complaint asserting the same claims under Sections 10(b) and 20(a) of the Exchange Act against the same set of defendants. The amended complaint alleges the Company’s November 30, 2020 and February 10, 2021 press releases and the April 9, 2021 interview of the Company’s chief executive officer in an article published by Decrypt contained false and misleading statements regarding the pre-sale orders the Company had received and the Company’s ability to secure sufficient chip supply to meet the increasing demand for mining machines. ,On April 8, 2022, the Company filed a motion to dismiss the amended complaint. The management of the Company believes that there are 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 December 31, 2021 in respect of these lawsuits. 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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | 22. Subsequent events Effective March 15, 2022, the Board of Directors has authorized a share repurchase program under which the Company may repurchase up to US$100 million worth of its outstanding (i) ADSs, each representing 15 Class A ordinary shares, and or (ii) Class A ordinary shares over the next 24 months starting from March 16, 2022. From late March 2022, the assembly factory in Langfang city in the PRC was temporary shut down due to the COVID-19 pandemic. As a result, the product assembly or shipment was suspended. Given the dynamic nature of these circumstances, the reduced assembly volume, the delayed shipment quantity of the mining equipment, or the related financial impact cannot be reasonably estimated at this time. The impact would be reflected in the first half year of 2022. The Company will be continuously evaluating any further potential impact on business, results of operations and financial condition. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of the Parent Company | 23. 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 income (loss) from its subsidiaries is reported as “share of income (loss) from subsidiaries” in the condensed financial statements. The Parent Company is a Cayman Islands company and, therefore, is not subject 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, 2020 and 2021, 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. For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s share of income (loss) from its subsidiaries was reported as a share of income (loss) of subsidiaries in the accompanying parent company only financial statements. Ordinarily, under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of the parent only financial information, the Company has continued to reflect its share, based on its proportionate interest, of the losses of its subsidiaries regardless of the carrying value of the investment even though the Company is not obligated to provide continuing support or fund losses. CONDENSED BALANCE SHEETS As of December 31, 2020 2021 RMB RMB US$ (Note 2(e)) ASSETS Current assets: Cash and cash equivalents 147 30,860 4,843 Receivables from subsidiaries 442,491 3,501,544 549,468 Total current assets 442,638 3,532,404 554,311 Non-current Investments in subsidiaries — 470 74 Total assets 442,638 3,532,874 554,385 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Refund from depository bank – current 2,060 2,013 316 Non-current liabilities: Refund from depository bank – non-current 8,020 5,824 914 Warrant liability — 66,347 10,411 Total liabilities 10,080 74,184 11,641 Shareholders’ equity: Ordinary shares 1 1 — Subscriptions receivable from shareholders (1 ) (1 ) — Treasury stocks (23,915 ) (231,281 ) (36,293 ) Additional paid-in 1,634,619 2,891,134 453,501 Statutory reserves 97,307 97,420 15,287 Accumulated other comprehensive loss (79,780 ) (101,925 ) (15,994 ) Retained earnings (accumulated deficit) (1,195,673 ) 803,342 126,243 Total shareholders’ equity 432,558 3,458,690 542,744 Total liabilities and shareholders’ equity 442,638 3,532,874 554,385 CONDENSED STATEMENTS OF COMPREHENSIVE LOSS For the year ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Note 2(e)) Cost of revenues and operating expenses: Cost of revenues — — (269 ) (42 ) Research and development expenses (22,465 ) (652 ) (99,173 ) (15,562 ) Sales and marketing expenses (358 ) (41 ) (8,239 ) (1,293 ) General and administrative expenses (247,426 ) (2,277 ) (390,448 ) (61,270 ) Loss from operations (270,249 ) (2,970 ) (498,129 ) (78,167 ) Interest income 5 — 1 — Other income, net — 2,425 2,037 320 Change in fair value of warrant liability — — 190,178 29,843 Share of income (losses) from subsidiaries* (764,266 ) (214,549 ) 2,306,195 361,892 Net income (loss) (1,034,510 ) (215,094 ) 2,000,282 313,888 Foreign currency translation adjustment, net of nil tax 9,688 (24,238 ) (22,145 ) (3,475 ) Total comprehensive income (loss) (1,024,822 ) (239,332 ) 1,978,137 310,413 CONDENSED STATEMENTS OF CASH FLOWS For the year ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Note 2(e)) Cash flows from operating activities Receipt of refund from depository bank — 13,285 — — Other cash used in operating activities (39 ) (1 ) (6,462 ) (1,014 ) Net cash provided by (used in) operating activities (39 ) 13,284 (6,462 ) (1,014 ) Cash flows from investing activities Decrease (increase) in receivables from subsidiaries (1,252,029 ) 28,451 (871,194 ) (136,709 ) Net cash provided by (used in) investing activities (1,252,029 ) 28,451 (871,194 ) (136,709 ) 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 ) (103,543 ) (16,248 ) Prepayment under share repurchase agreement — (16,146 ) (573 ) (90 ) Payment for cost of issuance — — (519 ) (81 ) Proceeds from issuance of ordinary shares and warrants — — 1,029,455 161,544 Net cash provided by (used in) financing activities 1,252,008 (40,061 ) 924,820 145,125 Net increase (decrease) in cash and cash equivalents (60 ) 1,674 47,164 7,402 Effect of exchange rate changes on cash 74 (1,541 ) (16,451 ) (2,582 ) Cash and cash equivalents, beginning of year — 14 147 23 Cash and cash equivalents, end of year 14 147 30,860 4,843 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
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 Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Use of estimates | (b) Use of estimates The preparation of the Company’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, warrant liability, valuation of deferred tax assets, 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 Company’s consolidated financial statements include the financial statements of Canaan Inc. and its subsidiaries. All transactions and balances among Canaan Inc. and its subsidiaries have been eliminated upon consolidation. Subsidiaries are those entities in which Canaan Inc. 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 Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of Canaan Inc. and its subsidiaries incorporated outside of the PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Company is RMB as determined based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters . Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income (loss) as foreign exchange related gains or loss. The financial statements of the Company are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of Canaan Inc. and its subsidiaries incorporated outside of PRC are translated into RMB using the applicable exchange rates at the balance sheet date, income and expense items are translated at average exchange rates prevailing during the fiscal year. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a separate component of shareholders’ equity on the consolidated financial statement. |
Convenience translation | (e) Convenience translation The United States dollar (“US$”) 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=RMB on December 3 0 |
Warrant Liability [Policy Text Block] | (f) Warrant Liability The freestanding warrants to purchase American Depositary Share (“ADSs”) at a future date were determined to be freestanding instruments that were accounted for as a liability. At initial recognition, the Company recorded the warrant liability on the consolidated balance sheets at its estimated fair value. The proceeds from issuance of ordinary shares and warrants are firstly allocated to warrant liability based on its fair value. The residual method is used to allocate the proceeds to shareholders’ equity. The warrant liability is subject to remeasurement at each reporting period and the Company adjusted the carrying value of the warrant liability to fair value at the end of each reporting period utilizing the binominal option pricing model, with changes in estimated fair value included in the change in fair value of warrant liability on the consolidated statement of comprehensive income (loss). |
Fair value of financial instruments | (g) 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 Company 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 measurement. 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 Company’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, non-current As of December 31, 2020 and 2021, 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 Company measures its short-term investments and warrant liability at fair value. The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 62,386 — 62,386 As of December 31, 202 1 Level 1 Level 2 Level 3 Balance at fair value Liabilities Warrant liability — — 66,347 66,347 The Company 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 Company classifies the valuation techniques that use these inputs as Level 2. The warrants are accounted for as a liability and remeasured to fair value at the end of each reporting period utilizing the binomial option pricing model, which involves significant assumptions including the risk-free interest rate, the expected volatility, expected dividend yield and expected term (Note 13 |
Cash and cash equivalents | (h) 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. As of December 31, 2020 2021 RMB denominated bank deposits with financial institutions in the PRC 110,241 1,167,445 US dollar denominated bank deposits with financial institutions in the PRC 248,716 1,447,336 Others denominated bank deposits with financial institutions in the PRC - 39,746 US dollar denominated bank deposits with overseas financial institutions PRC 32,352 29,498 Others denominated bank deposits with overseas financial institutions 1 317 Total 391,310 2,684,342 The bank deposits, including term deposits and restricted cash, with financial institutions in the mainland of the PRC mainland, Hong Kong, United States and Singapore are insured by the government authorities up to RMB500, HKD500, USD250 and SGD75 per bank, respectively. The bank deposits including term deposits and restricted cash are insured by the government authorities with amounts up to RMB9,086 and RMB11,579 as of December 31, 2020 with |
Restricted cash | (i) Restricted cash Restricted cash includes cash that are not readily available for the Company’s normal disbursements. Restricted cash are primarily related to cash deposits with banks and financial institutions subject to legal restrictions (note 4), or required as part of collateral for the Company’s notes payable (Note 11) arrangements. |
Short-term investments | (j) 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 in the amount of RMB3,055, RMB5,844 and RMB277 in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2019, 2020 and 2021, respectively. |
Accounts receivable | (k) Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Company 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. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted. |
Inventories | (l) Inventories Inventories, consisting of finished goods, work in process, raw materials and goods in transit, which are purchased from contractual 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 Company takes ownership, risks and rewards of the products purchased. In accordance with ASC 855- 10 |
Cryptocurrency | (m) Cryptocurrency Cryptocurrency is, by its nature, identifiable non-monetary assets that lack physical substance. Future economic benefit attributable to cryptocurrency is expected to flow to the Company because cryptocurrency can be exchanged to standard currencies on public trading platforms. Furthermore, the cost of the Company’s cryptocurrency assets can be measured reliably because cryptocurrency earned from mining activities can be measured with reference to the spot price to standard currencies on the date when they are earned. The Company accounts for the cryptocurrency received from mining as intangible assets with indefinite useful life in its consolidated balance sheets because, at the time of assessment, there is no foreseeable limit to the period over which such assets are expected to generate cash flows. The Company further adopts the cost model to account for its cryptocurrency and reviews its useful life and impairment at each reporting date in accordance with ASC 350 Intangibles—Goodwill and Other. The Company accounts for cryptocurrency at cost, instead of revaluing cryptocurrency at their fair value on each accounting reference date, because the latter model is subject to inherent and substantial volatility in the value of cryptocurrency from time to time. Cost is calculated using the weighted average cost method. Gains or losses arising from the disposal of cryptocurrency are determined as the difference between the net disposal proceeds and the carrying amount of the cryptocurrency and are recognized in profit or loss on the date of disposal. 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. The recoverable amount of cryptocurrencies is based on the fair value less costs of disposal. The fair value of the cryptocurrencies is determined by using the quoted price on the cryptocurrencies platform website well recognized by the block chain users. During the year ended December 31, 2021, the Company recognized impairment loss of RMB1,061 on cryptocurrency, which is included in general and administrative expenses in the consolidated statements of comprehensive income (loss). |
Operating lease assets | (n) Operating lease assets Operating lease assets consist of lease contracts for mining equipment for Bitcoin mining with customers, Company . |
Property, equipment and software | ( o 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 Mining equipment 1.5 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 | ( p Non-current The Company’s non-current in-substance non-current non-current During the year ended December 31, 2020 and 2021, the Company recognized impairment charge of RMB2,475 and RMB25 recorded in other income, net. |
Impairment of long-lived assets | (q) Impairment of long-lived assets For other long-lived assets including property, equipment and software, the Company evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Company 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 | (r) 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, 2020 and 2021 was RMB430,388 and RMB1,340,731, respectively. The revenue recognized during the years ended December 31, 2019, 2020 and 2021 for the beginning balance of contract liability was RMB6,904, RMB8,008 and RMB424,426, respectively and the significant increase was mainly due to increased down payments for the sales orders of mining equipment to be delivered in 2022. The balance as of December 31, 2021 is expected to be recognized as revenues within one year. |
Revenue from contracts with customers (ASC 606) | (s) Revenue from contracts with customers (ASC 606) The Company 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 Company generates revenue primarily from the sale of mining equipment directly to a customer, such as a business or individual engaged in Bitcoin mining activities. As the Bitcoin price fluctuates, the Company may adjust the selling price of mining equipment 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 Company’s sales arrangements usually require a full prepayment before the delivery of products. The Company started to offer credit sales to certain significant, long-standing customers in the PRC from 2018 to September 2020. 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 Company 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 Company 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 Company to its credit sales customers, the Company 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. During the year ended December 31, 2021, the adjustment to the previously estimated variable considerations was nil (years ended December 31, 2019 and 2020: RMB27,719 and RMB14,685). The Company did not provide price concessions to customers in 2021. The Company recognizes products revenue at a point in time based on management’s evaluation of when the control of the products has been passed to customers. The transfer of control is considered complete when products have been picked up by or shipped to the Company’s customers. The Company offers a standard product warranty of 360 days that the product will operate under normal use. At the time revenue is recognized, 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. Mining revenue The Company performs mining activities with its own mining equipment to earn cryptocurrency reward. The Company recognizes revenue when it earns the cryptocurrency as a result of its mining activity. The amount of revenue recognized is measured with reference to the spot price of the cryptocurrency to standard currencies on the date when it is earned. |
Revenue from lease arrangements as lessor (ASC 842) | (t) Revenue from lease arrangements as lessor (ASC 842, Lease) From July 2019, the Company started to generate revenue from the leases of mining equipment 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 mining equipment meet the classification of operating leases, and revenues from operating leases are recognized on a straight-line basis over the contract terms. The Company ceased leasing mining equipment in the the second quarter of 2021. |
Value-added-tax ("VAT") recoverable and surcharges | ( u Value-added-tax Value added tax recoverable represent amounts paid by the Company of the value-added-tax |
Cost of revenues | (v) Cost of revenues Amounts recorded as cost of revenues relate to direct expenses incurred to generate revenue. Such costs are recorded as incurred. Cost of revenues primarily consists of product costs, including costs of raw material, contractual manufacturers for production, labor costs, shipping and handling costs, manufacturing and depreciation, warehousing costs and slow-moving, obsolete inventories write-downs, prepayments write-downs and tax surcharges. |
Research and development expenses | (w) 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 Company recognizes research and development expenses as expense when incurred. |
Sales and marketing expenses | ( x 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 RMB2,377, RMB3,701 and RMB4,461 for the years ended December 31, 2019, 2020 and 2021, respectively. |
General and administrative expenses | (y) 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. |
Government grants | (z) 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 RMB24,926, RMB32,499 and RMB5,699 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Lease arrangement as lessee | (aa) 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. The Company has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less and the Company recognizes lease expense for these leases on a straight-line basis over the lease terms. |
Employee social security and welfare benefits | (ab) Employee social security and welfare benefits Employees of the Company 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 Company 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 Company’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 amounted to RMB23,026, RMB14,919 and RMB27,740 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Income taxes | (ac) Income The Company 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 deferred income tax asset will not be realized in the foreseeable future. The Company evaluates its uncertain tax positions using the provisions of ASC 740-10, Income Taxes |
Share-based compensation | (ad) 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 Company 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 Company recognizes incremental compensation cost in the period when the modification occurs. For awards not being fully vested, the Company 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 Company’s ordinary shares at the grant date of the award. Prior to the listing, estimation of the fair value of the Company’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 Company’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 Model. The determination of the fair value of share options is affected by the share price of the Company’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 by management with the assistance from an independent valuation firm. |
Statutory reserves | (ae) Statutory reserves The Company’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 Company Company 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 Company 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 Canaan Inc. in terms of cash dividends, loans or advances. The Company has made nil, nil and RMB113 appropriations to statutory reserve for the years ended December 31, 2019, 2020 and 2021, respectively. |
Repurchase of share | (af) Repurchase of share The Company 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. |
Earnings (loss) per share | (ag) 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 Company’s ordinary shares issuable upon the conversion of the share-based awards, using the treasury stock method. |
Comprehensive income (loss) | (ah) 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 Company include the foreign currency translation adjustments. |
Segment reporting | (ai) 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 Company’s chief operating decision makers in deciding how to allocate resources and assess performance. The Company’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 Company does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Company has only one operating segment and one reportable segment. All the long-lived assets, net as of December 31, 2021 were located in the PRC, except for RMB146,881 long-lived assets, net were located in Central Asia The geographical region of revenue generated is based on the location at which the goods delivered or the services were provided: Geographic region For the Years Ended December 31, 2019 2020 2021 Mainland China 1,063,630 379,418 1,779,923 Kazakhstan — 47,792 711,596 Cyprus — — 633,322 Canada 22,738 162 402,489 Australia 3,591 114 361,377 United States of America 46,045 3,528 312,722 Thailand 171 31 289,013 Sverige 326 8 152,127 Hong Kong Special Administrative Region 11,216 12,301 87,971 Japan 236,206 — 3 Other foreign countries 38,700 4,332 256,163 Total 1,422,623 447,686 4,986,706 |
Recently issued accounting pronouncements | (aj) Recently issued accounting pronouncements i. New and amended standards adopted by the Company: In January 2020, the FASB issued Accounting Standards Update No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarified that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments also clarified that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in paragraph 815-10-15-141 to determine the accounting for those forward contracts and purchased options. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted this guidance on January 1, 2021 and it did not have a material effect on the Company’s consolidated financial statements. ii. New and amended standards not yet adopted by the Company: In June 2016, the FASB issued ASU No. 2016-13, 2016-13”). 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 guidance is effective for public business entities for annual reporting periods, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, it is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. 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 Company adopted this guidance on January 1, 2022 and it did not have a material effect on the Company’s consolidated financial statements. In August 2020, the FASB issued Accounting Standards Update 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. The amendments in this Update are effective for public business entities, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. ASU 2020-06 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company does not plan to early adopt the new guidance and will assess the impact before adoption. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Subsidiaries | As of December 31, 2021, the Company’s principal 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 Special Administrative Region 100% Research and development of ICs Hangzhou Canaan Intelligence Information Technology Co., Ltd. April 9, 2013 Hangzhou, China 100% Research and development of ICs Canaan Creative Co., Ltd. April 1, 2013 Beijing, China 100% Research and development of ICs Langfang Creative Technology Co., Ltd. May 15, 2014 Langfang, China 100% Assembly of mining equipment and spare parts Canaan Convey Co., Ltd. November 2, 2017 Beijing, China 100% International distribution of mining equipment and spare parts Zhejiang Avalon Technology Co., Ltd. December 5, 2017 Hangzhou, China 100% Distribution of mining equipment and spare parts Canaan Bright Sight Co., Ltd. December 24, 2018 Beijing, China 100% International distribution of AI products Hangzhou Canaan Chuangxin Technology Co., Ltd. December 26, 2018 Hangzhou, China 100% Research and development of ICs Canaan Creative (SH) Co., Ltd. January 27, 2021 Shanghai, China 100% Research and development of ICs Canaan Creative International PTE. Ltd. March 9, 2021 Singapore 100% International distribution of mining equipment and spare parts |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Assets and liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — 62,386 — 62,386 As of December 31, 202 1 Level 1 Level 2 Level 3 Balance at fair value Liabilities Warrant liability — — 66,347 66,347 |
Summary of 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. As of December 31, 2020 2021 RMB denominated bank deposits with financial institutions in the PRC 110,241 1,167,445 US dollar denominated bank deposits with financial institutions in the PRC 248,716 1,447,336 Others denominated bank deposits with financial institutions in the PRC - 39,746 US dollar denominated bank deposits with overseas financial institutions PRC 32,352 29,498 Others denominated bank deposits with overseas financial institutions 1 317 Total 391,310 2,684,342 |
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 Mining equipment 1.5 years Motor vehicles 5 years Software 3 years |
Summary of Revenue Segregated by Geographic Region | he geographical region of revenue generated is based on the location at which the goods delivered or the services were provided: Geographic region For the Years Ended December 31, 2019 2020 2021 Mainland China 1,063,630 379,418 1,779,923 Kazakhstan — 47,792 711,596 Cyprus — — 633,322 Canada 22,738 162 402,489 Australia 3,591 114 361,377 United States of America 46,045 3,528 312,722 Thailand 171 31 289,013 Sverige 326 8 152,127 Hong Kong Special Administrative Region 11,216 12,301 87,971 Japan 236,206 — 3 Other foreign countries 38,700 4,332 256,163 Total 1,422,623 447,686 4,986,706 |
Risks and Concentration (Tables
Risks and Concentration (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 2021 Customer A 96 % * Customer B * 52 % * Less than 10% Customers which contributed more than 10% of total revenue are as below: For the Years Ended December 31, 2019 2020 2021 Customer C * 29 % * Customer D * * 18 % Customer E 17 % * * Customer F * 16 % * * Less than 10% |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: As of December 31, 2020 2021 Raw materials 195,939 429,208 Finished goods 26,963 304,801 Work in process 2,620 78,354 Total 225,522 812,363 |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepayments and Other Assets | The current and non-current following As of December 31, 2020 2021 Prepayments and other current assets Prepayments to vendors (Note a) 203,063 1,427,820 VAT recoverable 87,879 260,571 Prepayment for repurchase of ordinary shares 15,825 15,901 VAT refund for export sales (Note b) 5,510 14,041 Others (Note c) 4,089 10,694 316,366 1,729,027 Other Rental and other deposits 2,530 2,956 |
Cryptocurrency (Tables)
Cryptocurrency (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Cryptocurrency | As of December 31, 2021 Gross carrying amount 21,371 Less: Impairment of cryptocurrency (1,061 ) Net 20,310 |
Property, Equipment and Softw_2
Property, Equipment and Software (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Software | 8. Property, equipment and software Property, equipment and software consist of the following: As of December 31, 2020 2021 Cost: Mining equipment — 146,881 Computers and electronic equipment 14,540 27,492 Leasehold improvements 17,130 21,412 Mechanical equipment 1,181 7,694 Software 1,955 5,438 Construction in progress 1,325 665 Motor vehicles 461 470 Total cost 36,592 210,052 Less: Accumulated depreciation and amortization (24,399 ) (24,486 ) Property, equipment and software, net 12,193 185,566 |
Summary of Depreciation and Amortization Expenses | Depreciation and amortization expenses recognized for the years ended December 31, 2019, 2020 and 2021 are summarized as follows: For the Years Ended December 31, 2019 2020 2021 General and administrative expenses 8,062 7,680 6,439 Research and development expenses 3,662 3,874 2,826 Cost of revenues 1,899 217 1,715 Sales and marketing expenses 81 81 29 Total 13,704 11,852 11,009 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expenses | (a) The components of lease expenses were as follows: For the Years Ended December 31, 2019 2020 2021 Lease cost: Reduction in the carrying amount of ROU assets 10,928 13,432 17,584 Interest of lease liabilities 1,746 1,938 1,613 Expenses for short-term lease within 12 months 605 505 443 Total lease cost 13,279 15,875 19,640 |
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 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 11,228 14,322 20,739 Right-of-use Operating leases — 5,516 36,672 Reductions to ROU assets resulting from reductions to lease obligations: Operating leases — 427 2,590 |
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 2021 Weighted-average remaining lease term Operating leases 1.2 year 1.3 year 2.4 year Weighted-average discount rate Operating lease 7.14% per annum 6.73% per annum 5.17% per annum |
Schedule of Maturities of Lease Liabilities | Years Ending December 31, As of December 31, 2021 2022 14,917 2023 13,867 2024 and thereafter 4,222 Total undiscounted lease payments 33,006 Less: imputed interest (1,895 ) Total lease liabilities 31,111 Amounts due within 12 month s 14,819 Non-current lease liability 16,292 |
Short-Term Debts (Tables)
Short-Term Debts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debts | As of December 31, 2020 2021 Short-term bank loans 34,754 — |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Liabilities | As of December 31, 2020 2021 Accrued liabilities and other current liabilities VAT payable — 128,939 Withholding tax payables due to restricted share units (Note a) — 126,198 Salary and welfare payable 25,148 118,712 Other tax payables 874 19,128 Warranty reserve (Note b) — 18,026 Customer refund — 10,738 VAT received from customers related to contract liabilities 28,958 2,427 Rental deposits 4,011 2,120 Refund from depository bank – current 2,060 2,013 Others 2,292 9,093 Total 63,343 437,394 Other liabilities Refund from depository bank – non-current 8,020 5,824 |
Schedule of Product Warranty Liability | Movement of provision for warranty is as follows: For the year ended Accrued warranty—beginning of year — Accrual for warranties issued during the year 28,826 Warranty claims paid (10,800 ) Accrued warranty—end of year 18,026 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Significant Unobservable Inputs Used In Calculation Of Warrant Liability | The Company classified the warrants as warrant liability. At initial recognition, the Company recorded the warrant liability on the consolidated balance sheet at its estimated fair value and subsequently remeasured to fair value at the end of each reporting period utilizing the binomial option pricing model, which involves significant assumptions as below: For the Year Ended Risk Free Rate 0.37%-0.81 % Volatility 131.47%-127.93 % Expected dividend yield 0 % Expected term 2.3 years-3 years |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Stock Option Activity | The following table summarizes the share options for the years ended December 31, 2019, 2020 and 2021: Number of Weighted-Average Weighted Aggregate RMB Years RMB Outstanding a s of — — — — Granted 114,000,000 4.90 — — Outstanding a s of 114,000,000 4.90 9.10 — Expected to vest a s of 94,677,000 4.90 9.10 — Exercisable a s of — — — — |
summay of fair values of the share options granted | The fair values of the share options granted by the Company to employees for the year ended December 31, 2021 are as follows: For the Year Ended December 31, 2021 Weighted average grant date fair value of option per share 6.63 Aggregate grant date fair value of options 465,553 |
Summary of assumptions used to determine the fair value of stock options | The assumptions used to estimate the fair values of the share options granted were as follows: For the Year 2021 Risk-free rate of return (1) 1.25% to 1.85% Dividend yield (2) 0% Expected volatility (3) 136.91% to 142.01% Expected term (4) 10 years Exercise multiple (5) 2.80 Fair value of ordinary share US$ 3.78 to US$17.51 |
Restricted Share Units | |
Summary of Restricted Shares Activity | The following table summarizes the RSUs activity for the years ended December 31, 2019, 2020 and 2021: Number of Weighted average RMB Outstanding a s of 32,030,000 1.55 Forfeited (2,368,461 ) 1.51 Vested (13,928,205 ) 1.59 Outstanding a s of 15,733,334 1.51 Forfeited (2,691,282 ) 1.51 Vested (4,002,052 ) 1.51 Outstanding a s of 9,040,000 1.51 Granted 236,768,940 3.74 Forfeited (6,991,000 ) 3.10 Vested (101,574,270 ) 2.15 Outstanding a s of 137,243,670 4.81 |
Restricted Ordinary Shares | |
Summary of Restricted Shares Activity | The following table summarizes the restricted ordinary shares activity under Replacement Agreement for the year ended December 31, 2019: Number of shares Weighted average grant date fair value RMB Outstanding a s of 17,594,000 2.56 Forfeited (1,594,000 ) 2.56 Vested (16,000,000 ) 2.56 Outstanding as of December 31, 2019, 2020 and 2021 — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 2020 2021 PRC statutory income tax rates (25.0 )% (25.0 )% 25.0 % Permanent book-tax difference 3.3 % (4.5 )% 1.4 % Share-based compensation 5.8 % 0.2 % 3.4 % Super deduction of R&D expense (1.5 )% (5.7 )% (2.6 )% Others (1.0 )% 1.0 % 0.6 % Different tax rates in other jurisdictions 0.4 % 2.0 % (2.2 )% Effect of tax holiday 8.4 % 4.4 % (7.8 )% Change in valuation allowance 12.9 % 23.1 % (14.0 )% Total 0.0 % 0.0 % 2.4 % Effects of tax holidays entitled by the PRC subsidiaries (87,043 ) (9,553 ) 160,246 Effects of tax holidays entitled by the PRC subsidiaries on basic (loss) earnings per Class A and Class B ordinary share (RMB cent per share) (4.04 ) (0.41 ) 6.35 |
Schedule of Composition of Income Tax Expense | The current and deferred portions of income tax expense (benefit) included in the consolidated statements of comprehensive income (loss) are as follows: For the Years Ended December 31, 2019 2020 2021 Current income tax expense — — 149,152 Deferred income tax benefits — — (99,044 ) Income tax expense — — 50,108 |
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, 2020 and 2021 are as follows: As of December 31, 2020 2021 Deferred tax assets Tax losses carried forward 286,044 102,239 Write-down of inventories 16,840 10,771 Warranty reserve — 2,704 Allowance for doubtful accounts 1,744 1,314 Unrealized gain from intracompany sale 162 — Subtotal 304,790 117,028 Less: Valuation allowance (304,790 ) (17,984 ) Deferred tax assets — 99,044 |
Schedule of Movement of Valuation Allowance | Movement of valuation allowance is as follows: For the Years Ended December 31, 2019 2020 2021 Beginning balance 119,065 254,039 304,790 Additions (decreases) during the year 134,974 50,751 (286,806 ) Ending balance 254,039 304,790 17,984 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the years ended December 31, 2019, 2020 and 2021, the related party transactions are as follows: For the Years Ended December 31, 2019 2020 2021 Transaction amount with related parties Disposal of motor vehicles — 637 — — 637 — |
Basic and Diluted Earnings (L_2
Basic and Diluted Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019, 2020 and 2021 as follows: For the Years Ended December 31, 2019 2020 2021 Basic earnings (loss) per share calculation Numerator: Net income (loss) (1,034,510 ) (215,094 ) 2,000,282 Denominator: Weighted-average ordinary shares outstanding 2,153,172,769 2,345,703,779 2,521,667,815 Net earnings (loss) per Class A and Class B ordinary share (RMB cent per share) (48.05 ) (9.17 ) 79.32 For the Years Ended December 31, 2019 2020 2021 Diluted earnings (loss) per share calculation Numerator: Net income (loss) (1,034,510 ) (215,094 ) 2,000,282 Denominator: Weighted-average ordinary shares outstanding 2,153,172,769 2,345,703,779 2,521,667,815 Add: weighted-average RSUs — — 54,489,432 Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share 2,153,172,769 2,345,703,779 2,576,157,247 Diluted earnings (loss) per Class A and Class B ordinary share (RMB cent per share) (48.05 ) (9.17 ) 77.65 |
Effects of Outstanding RSUs Excluded From Computation of Diluted Loss Per Share Due to Anti-Dilutive Effect | The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows: For the Year Ended December 31, 2019 2020 2021 Weighted-average RSUs 13,923,725 10,710,636 — Share options — — 114,000,000 Warrants — — 70,833,345 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | CONDENSED BALANCE SHEETS As of December 31, 2020 2021 RMB RMB US$ (Note 2(e)) ASSETS Current assets: Cash and cash equivalents 147 30,860 4,843 Receivables from subsidiaries 442,491 3,501,544 549,468 Total current assets 442,638 3,532,404 554,311 Non-current Investments in subsidiaries — 470 74 Total assets 442,638 3,532,874 554,385 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Refund from depository bank – current 2,060 2,013 316 Non-current liabilities: Refund from depository bank – non-current 8,020 5,824 914 Warrant liability — 66,347 10,411 Total liabilities 10,080 74,184 11,641 Shareholders’ equity: Ordinary shares 1 1 — Subscriptions receivable from shareholders (1 ) (1 ) — Treasury stocks (23,915 ) (231,281 ) (36,293 ) Additional paid-in 1,634,619 2,891,134 453,501 Statutory reserves 97,307 97,420 15,287 Accumulated other comprehensive loss (79,780 ) (101,925 ) (15,994 ) Retained earnings (accumulated deficit) (1,195,673 ) 803,342 126,243 Total shareholders’ equity 432,558 3,458,690 542,744 Total liabilities and shareholders’ equity 442,638 3,532,874 554,385 |
Schedule of Condensed Statements of Comprehensive Loss | CONDENSED STATEMENTS OF COMPREHENSIVE LOSS For the year ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Note 2(e)) Cost of revenues and operating expenses: Cost of revenues — — (269 ) (42 ) Research and development expenses (22,465 ) (652 ) (99,173 ) (15,562 ) Sales and marketing expenses (358 ) (41 ) (8,239 ) (1,293 ) General and administrative expenses (247,426 ) (2,277 ) (390,448 ) (61,270 ) Loss from operations (270,249 ) (2,970 ) (498,129 ) (78,167 ) Interest income 5 — 1 — Other income, net — 2,425 2,037 320 Change in fair value of warrant liability — — 190,178 29,843 Share of income (losses) from subsidiaries* (764,266 ) (214,549 ) 2,306,195 361,892 Net income (loss) (1,034,510 ) (215,094 ) 2,000,282 313,888 Foreign currency translation adjustment, net of nil tax 9,688 (24,238 ) (22,145 ) (3,475 ) Total comprehensive income (loss) (1,024,822 ) (239,332 ) 1,978,137 310,413 |
Schedule of Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS For the year ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Note 2(e)) Cash flows from operating activities Receipt of refund from depository bank — 13,285 — — Other cash used in operating activities (39 ) (1 ) (6,462 ) (1,014 ) Net cash provided by (used in) operating activities (39 ) 13,284 (6,462 ) (1,014 ) Cash flows from investing activities Decrease (increase) in receivables from subsidiaries (1,252,029 ) 28,451 (871,194 ) (136,709 ) Net cash provided by (used in) investing activities (1,252,029 ) 28,451 (871,194 ) (136,709 ) 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 ) (103,543 ) (16,248 ) Prepayment under share repurchase agreement — (16,146 ) (573 ) (90 ) Payment for cost of issuance — — (519 ) (81 ) Proceeds from issuance of ordinary shares and warrants — — 1,029,455 161,544 Net cash provided by (used in) financing activities 1,252,008 (40,061 ) 924,820 145,125 Net increase (decrease) in cash and cash equivalents (60 ) 1,674 47,164 7,402 Effect of exchange rate changes on cash 74 (1,541 ) (16,451 ) (2,582 ) Cash and cash equivalents, beginning of year — 14 147 23 Cash and cash equivalents, end of year 14 147 30,860 4,843 |
Organization and Principal Ac_3
Organization and Principal Activities - Schedule of Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 |
Place of incorporation | Hong Kong Special Administrative Region |
Equity interest held | 100.00% |
Principal activities | Research and development 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 and development 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 mining equipment and spare parts |
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 mining equipment and spare parts |
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 of mining equipment and spare parts |
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 and development of ICs |
Canaan Creative (SH) Co., Ltd. | |
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |
Name of subsidiaries | Canaan Creative (SH) Co., Ltd. |
Date of incorporation | Jan. 27, 2021 |
Place of incorporation | Shanghai, China |
Equity interest held | 100.00% |
Principal activities | Research and development of ICs |
Canaan Creative International PTE Limited | |
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |
Name of subsidiaries | Canaan Creative International PTE. Ltd. |
Date of incorporation | Mar. 9, 2021 |
Place of incorporation | Singapore |
Equity interest held | 100.00% |
Principal activities | International distribution of mining equipment and spare parts |
Hangzhou Canaan Intelligence Information Technology Co., Ltd. | |
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |
Name of subsidiaries | Hangzhou Canaan Intelligence Information Technology Co., Ltd. |
Date of incorporation | Apr. 9, 2013 |
Place of incorporation | Hangzhou, China |
Equity interest held | 100.00% |
Principal activities | Research and development of ICs |
Canaan Bright Sight Co., Ltd. | |
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |
Name of subsidiaries | Canaan Bright Sight Co., Ltd. |
Date of incorporation | Dec. 24, 2018 |
Place of incorporation | Beijing, China |
Equity interest held | 100.00% |
Principal activities | International distribution of AI products |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021CNY (¥)¥ / SegmentSegment | Dec. 31, 2021USD ($)¥ / SegmentSegment | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021HKD ($) | Dec. 31, 2021SGD ($) | Dec. 30, 2021 | |
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Foreign currency convenience translation of amounts from RMB into US$ | 6.3726 | |||||||
Investment income | ¥ 277 | $ 43 | ¥ 5,844 | ¥ 3,055 | ||||
Non-current financial investment | 20,000 | 25 | $ 3,138 | |||||
Impairment charge to non-current financial investment | 25 | $ 4 | 2,475 | 0 | ||||
Operating lease asset | ¥ 30,920 | 14,422 | 4,852 | |||||
Operating lease assets, estimated economic useful life | 18 months | 18 months | ||||||
Prepayment received from customers | ¥ 1,340,731 | 430,388 | 210,390 | |||||
Revenue recognized from contract liability | ¥ 424,426 | 8,008 | 6,904 | |||||
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 | ¥ 0 | 11,455 | 22,392 | |||||
Adjustment to the previously estimated variable considerations | ¥ 0 | 14,685 | 27,719 | |||||
Standard product warranty | 360 days that the product will operate under normal use. | 360 days that the product will operate under normal use. | ||||||
Advertising expense | ¥ 4,461 | 3,701 | 2,377 | |||||
Employee social security and welfare benefit expenses | ¥ 27,740 | 14,919 | 23,026 | |||||
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 | ¥ 113 | 0 | 0 | |||||
Number of operating segment | Segment | 1 | 1 | ||||||
Number of reportable segment | ¥ / Segment | 1 | 1 | ||||||
Warranty costs incurred | ¥ 28,826 | 764 | 1,310 | |||||
Impairment of indefinitely lived intangible assets | (1,061) | |||||||
Bank Time Deposits [Member] | ||||||||
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Bank deposits insured by government authorities | 11,579 | 9,086 | ||||||
CHINA | Depoists With Financial Institutions [Member] | ||||||||
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Bank deposits insured by government authorities | 500 | |||||||
HONG KONG | Depoists With Financial Institutions [Member] | ||||||||
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Bank deposits insured by government authorities | $ | $ 500 | |||||||
UNITED STATES | Depoists With Financial Institutions [Member] | ||||||||
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Bank deposits insured by government authorities | $ | $ 250 | |||||||
SINGAPORE | Depoists With Financial Institutions [Member] | ||||||||
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Bank deposits insured by government authorities | $ | $ 75 | |||||||
KAZAKHSTAN | ||||||||
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Long-Lived Assets | 146,881 | |||||||
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 | ¥ 5,699 | ¥ 32,499 | ¥ 24,926 | |||||
Minimum | ||||||||
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Value added tax recoverable percentage | 6.00% | 6.00% | ||||||
Maximum | ||||||||
Disclosure Of Significant Accounting Policies [Line Items] | ||||||||
Value added tax recoverable percentage | 12.00% | 12.00% |
Summary of significant accoun_5
Summary of significant accounting policies - Summary of Assets and liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Warrant [Member] | ||
Disclosure Of Significant Accounting Policies [Line Items] | ||
Warrant liability | ¥ 66,347 | |
Short-term investments | ||
Disclosure Of Significant Accounting Policies [Line Items] | ||
Short-term investments | ¥ 62,386 | |
Level 2 | Short-term investments | ||
Disclosure Of Significant Accounting Policies [Line Items] | ||
Short-term investments | ¥ 62,386 | |
Level 3 | Warrant [Member] | ||
Disclosure Of Significant Accounting Policies [Line Items] | ||
Warrant liability | ¥ 66,347 |
Summary of significant accoun_6
Summary of significant accounting policies - Summary of Cash and Cash Equivalents (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Cash and Cash Equivalents [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | ¥ 2,684,342 | $ 421,232 | ¥ 391,310 |
CHINA | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 39,746 | 0 | |
Overseas [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 317 | 1 | |
China, Yuan Renminbi | CHINA | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 1,167,445 | 110,241 | |
United States of America, Dollars | CHINA | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 1,447,336 | 248,716 | |
United States of America, Dollars | Overseas [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | ¥ 29,498 | ¥ 32,352 |
Summary of significant accoun_7
Summary of significant accounting policies - Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 |
Mining Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 1 year 6 months |
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 |
Summary of significant accoun_8
Summary of significant accounting policies - Summary of Revenue Segregated by Geographic Region (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | ¥ 4,986,706 | $ 782,522 | ¥ 447,686 | ¥ 1,422,623 |
Mainland China | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 1,779,923 | 379,418 | 1,063,630 | |
Kazakhstan | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 711,596 | 47,792 | ||
Cyprus | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 633,322 | |||
Canada | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 402,489 | 162 | 22,738 | |
Australia | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 361,377 | 114 | 3,591 | |
United States of America | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 312,722 | 3,528 | 46,045 | |
Thailand | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 289,013 | 31 | 171 | |
Sverige | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 152,127 | 8 | 326 | |
Hong Kong Special Administrative Region | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 87,971 | 12,301 | 11,216 | |
Japan | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | 3 | 236,206 | ||
Other Foreign Countries | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenues | ¥ 256,163 | ¥ 4,332 | ¥ 38,700 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | 52.00% | ||
Customer Concentration Risk | Total Revenue | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 29.00% | ||
Customer Concentration Risk | Total Revenue | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18.00% | ||
Customer Concentration Risk | Total Revenue | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | ||
Customer Concentration Risk | Total Revenue | Customer F | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.00% |
Risks and Concentration - Addit
Risks and Concentration - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accounts receivable current | ¥ 367 | $ 58 | ¥ 7,128 |
Credit Concentration Risk [Member] | |||
Accounts receivable current | ¥ 367 | ¥ 7,128 |
Restricted cash - Additional In
Restricted cash - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Restricted Cash and Cash Equivalents [Abstract] | |||
Restricted cash | ¥ 47,362 | $ 7,432 | ¥ 4,494 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Inventory Disclosure [Abstract] | |||
Raw materials | ¥ 429,208 | ¥ 195,939 | |
Finished goods | 304,801 | 26,963 | |
Work in process | 78,354 | 2,620 | |
Total | ¥ 812,363 | $ 127,477 | ¥ 225,522 |
Inventories - Additional Inform
Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Inventory [Line Items] | ||||
Inventory write-down | ¥ 50,714 | $ 7,958 | ¥ 44,916 | ¥ 526,473 |
Reclassification of inventory to operating lease assets at the beginning of lease period | 15,169 | 135,276 | 99,523 | |
Reclassification of operating lease assets to inventory at the end of lease period | 12,051 | 115,887 | 79,065 | |
Depreciation expense of operating lease assets | 3,118 | $ 489 | 19,389 | 20,458 |
Cost of Revenues | ||||
Inventory [Line Items] | ||||
Depreciation expense of operating lease assets | ¥ 3,118 | ¥ 19,389 | ¥ 20,458 |
Prepayments and Other Assets -
Prepayments and Other Assets - Summary of Prepayments and Other Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Prepayments and other current assets | |||
Prepayments to vendors | ¥ 1,427,820 | ¥ 203,063 | |
VAT recoverable | 260,571 | 87,879 | |
Prepayment for repurchase of ordinary shares | 15,901 | 15,825 | |
VAT refund for export sales | 14,041 | 5,510 | |
Others | 10,694 | 4,089 | |
Prepayments and other current assets | 1,729,027 | $ 271,323 | 316,366 |
Other non-current assets | |||
Rental and other deposits | ¥ 2,956 | ¥ 2,530 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for credit loss, other receivables | ¥ 5,517 | ¥ 4,606 | ¥ 0 |
Write-down for prepayments to third-party suppliers | 0 | 0 | ¥ 202,522 |
Foundry Service [Member] | |||
Purchase obligation to third parties | ¥ 917,346 | ¥ 121,015 |
Cryptocurrency - Schedule of Cr
Cryptocurrency - Schedule of Cryptocurrency (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2021CNY (¥) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross carrying amount | ¥ 21,371 |
Less: Impairment of cryptocurrency | (1,061) |
Net | ¥ 20,310 |
Property, Equipment and Softw_3
Property, Equipment and Software - Schedule of Property, Equipment and Software (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property, Equipment and Software [Line Items] | |||
Total cost | ¥ 210,052 | ¥ 36,592 | |
Less: Accumulated depreciation and amortization | (24,486) | (24,399) | |
Property, equipment and software, net | 185,566 | $ 29,119 | 12,193 |
Mining Equipment [Member] | |||
Property, Equipment and Software [Line Items] | |||
Total cost | 146,881 | 0 | |
Computers and Electronic Equipment | |||
Property, Equipment and Software [Line Items] | |||
Total cost | 27,492 | 14,540 | |
Leasehold Improvements | |||
Property, Equipment and Software [Line Items] | |||
Total cost | 21,412 | 17,130 | |
Mechanical Equipment | |||
Property, Equipment and Software [Line Items] | |||
Total cost | 7,694 | 1,181 | |
Software | |||
Property, Equipment and Software [Line Items] | |||
Total cost | 5,438 | 1,955 | |
Construction in Progress | |||
Property, Equipment and Software [Line Items] | |||
Total cost | 665 | 1,325 | |
Motor Vehicles | |||
Property, Equipment and Software [Line Items] | |||
Total cost | ¥ 470 | ¥ 461 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | ¥ 11,009 | $ 1,728 | ¥ 11,852 | ¥ 13,704 |
General and administrative expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | 6,439 | 7,680 | 8,062 | |
Research and development expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | 2,826 | 3,874 | 3,662 | |
Cost of Revenues | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | 1,715 | 217 | 1,899 | |
Sales and marketing expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization of property, equipment and software | ¥ 29 | ¥ 81 | ¥ 81 |
Leases - Components of Lease Ex
Leases - Components of Lease Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Lease cost: | ||||
Reduction in the carrying amount of ROU assets | ¥ 17,584 | ¥ 13,432 | ¥ 10,928 | |
Interest of lease liabilities | 1,613 | $ 253 | 1,938 | 1,746 |
Expenses for short-term lease within 12 months | 443 | 505 | 605 | |
Total lease cost | ¥ 19,640 | ¥ 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | ¥ 20,739 | ¥ 14,322 | ¥ 11,228 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating lease liabilities | 36,672 | 5,516 | |
Reductions to ROU assets resulting from reductions to lease obligations: | |||
Operating leases | ¥ 2,590 | ¥ 427 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
Weighted-average remaining lease term Operating leases | 2 years 4 months 24 days | 1 year 3 months 18 days | 1 year 2 months 12 days |
Weighted-average discount rate Operating lease | 5.17% | 6.73% | 7.14% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Leases [Abstract] | |||
2022 | ¥ 14,917 | ||
2023 | 13,867 | ||
2024 and thereafter | 4,222 | ||
Total undiscounted lease payments | 33,006 | ||
Less: imputed interest | (1,895) | ||
Operating lease liabilities | 31,111 | ||
Amounts due within 12 months | 14,819 | $ 2,325 | ¥ 12,621 |
Non-current lease liability | ¥ 16,292 | $ 2,557 | ¥ 3,322 |
Short-Term Debts - Schedule of
Short-Term Debts - Schedule of Short-Term Debts (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short-term bank loans | ¥ 0 | ¥ 34,754 |
Short-Term Debts - Additional I
Short-Term Debts - Additional Information (Details) - Short-Term Loan Agreement ¥ in Thousands | Dec. 31, 2020CNY (¥) |
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 |
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) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Notes Payable [Abstract] | ||
Restricted Cash | ¥ 0 | ¥ 4,494 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accrued Liabilities and Other Liabilities [Abstract] | |||
VAT payable | ¥ 128,939 | ¥ 0 | |
Withholding tax payables due to restricted share units (Note a) | 126,198 | 0 | |
Salary and welfare payable | 118,712 | 25,148 | |
Other tax payables | 19,128 | 874 | |
Warranty reserve | 18,026 | 0 | |
Customer refund | 10,738 | 0 | |
VAT received from customers related to contract liabilities | 2,427 | 28,958 | |
Rental deposits | 2,120 | 4,011 | |
Refund from depository bank – current | 2,013 | 2,060 | |
Others | 9,093 | 2,292 | |
Total | 437,394 | $ 68,637 | 63,343 |
Other non-current liabilities | |||
Refund from depository bank – non-current | ¥ 5,824 | ¥ 8,020 |
Accrued Liabilities and Other_4
Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Parenthetical) (Details) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Accrued Liabilities And Other Current Liabilities [Abstract] | |
Withholding tax payable restricted share units current | ¥ 126,198 |
Accrued liabilities and other_5
Accrued liabilities and other liabilities - Schedule of Product Warranty Liability (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2021CNY (¥) | |
Product Warranties Disclosures [Abstract] | |
Accrued warranty—beginning of year | ¥ 0 |
Accrual for warranties issued during the year | 28,826 |
Warranty claims paid | (10,800) |
Accrued warranty—end of year | ¥ 18,026 |
Warrants - Summary of Significa
Warrants - Summary of Significant Unobservable Inputs Used In Calculation Of Warrant Liability (Detail) - Warrants To Purchase Common Stock [Member] | Dec. 31, 2021yr |
Risk Free Rate | Maximum | |
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items] | |
Fair value of the warrant liability | 0.81 |
Risk Free Rate | Minimum | |
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items] | |
Fair value of the warrant liability | 0.37 |
Volatility | Maximum | |
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items] | |
Fair value of the warrant liability | 127.93 |
Volatility | Minimum | |
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items] | |
Fair value of the warrant liability | 131.47 |
Expected dividend yield | |
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items] | |
Fair value of the warrant liability | 0 |
Expected term | Maximum | |
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items] | |
Fair value of the warrant liability | 3 |
Expected term | Minimum | |
Disclosure Of Significant Unobservable Inputs Used In Calculation Of Warrant Liability [Line Items] | |
Fair value of the warrant liability | 2.3 |
Warrants - Additional Informati
Warrants - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 03, 2021CNY (¥)shares | May 31, 2021CNY (¥) | May 31, 2021USD ($) | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($)shares | May 01, 2021$ / sharesshares |
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Outstanding | 70,833,345 | 70,833,345 | |||||||
Fair Value Adjustment of Warrants | ¥ (258,782) | ¥ 190,178 | $ 29,843 | ¥ 0 | ¥ 0 | ||||
Warrants To Purchase Common Stock [Member] | Warrant [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | ¥ 258,782 | $ 39,877 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | ¥ 66,347 | $ 10,406 | |||||||
ADR [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 674,603 | ||||||||
Common Class A [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10,119,045 | ||||||||
Common Class A [Member] | Warrant [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 1.05 | ||||||||
Tranche One [Member] | ADR [Member] | Warrants To Purchase Common Stock [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | 16.38 | ||||||||
Tranche One [Member] | Common Class A [Member] | Warrants To Purchase Common Stock [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | 1.09 | ||||||||
Tranche Two [Member] | ADR [Member] | Warrant [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 15.75 | ||||||||
Tranche Two [Member] | ADR [Member] | Warrants To Purchase Common Stock [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 674,603 | ||||||||
Tranche Two [Member] | Common Class A [Member] | Warrants To Purchase Common Stock [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10,119,045 | ||||||||
Investor Warrants [Member] | Tranche One [Member] | ADR [Member] | Warrants To Purchase Common Stock [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 4,047,620 | ||||||||
Investor Warrants [Member] | Tranche One [Member] | Common Class A [Member] | Warrants To Purchase Common Stock [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 60,714,300 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 03, 2021CNY (¥)shares | Nov. 25, 2020shares | Nov. 21, 2019USD ($)$ / sharesshares | May 31, 2019shares | Feb. 28, 2019$ / sharesshares | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020$ / sharesshares | Feb. 28, 2019CNY (¥) | Jun. 30, 2018$ / shares | Jun. 30, 2018CNY (¥)shares | Mar. 23, 2018$ / shares | Mar. 23, 2018CNY (¥)shares |
Class Of Stock [Line Items] | |||||||||||||||
Authorized share capital amount | ¥ | ¥ 50,000 | ¥ 50,000 | |||||||||||||
Ordinary shares, shares authorized | 1,000,000,000,000 | 1,000,000,000,000 | 1,000,000,000,000 | ||||||||||||
Ordinary shares, shares issued | 2,804,138,492 | 2,372,222,222 | 500,000,000 | 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 | ¥ | ¥ 669,559 | ||||||||||||||
Shares issued, price per share | $ / shares | $ 0.45 | ||||||||||||||
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance- | ¥ | 544,122 | ||||||||||||||
Ordinary shares, shares outstanding | 2,577,386,552 | 2,328,326,132 | |||||||||||||
Fair value of the warrant liability | ¥ 258,782 | ¥ (190,178) | $ (29,843) | ¥ 0 | ¥ 0 | ||||||||||
Proceeds from Issuance of Common Stock | ¥ | 770,673 | ||||||||||||||
cash consideration | ¥ | ¥ 100 | ||||||||||||||
American Depositary Shares | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Proceeds from issuance of ordinary shares upon IPO, net of cost of issuance- | $ | $ 90,000 | ||||||||||||||
Class A Common Shares | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Shares issued upon conversion | 45,000,000 | ||||||||||||||
Issuance of ordinary shares | ¥ | ¥ 1,029,455 | ||||||||||||||
Common stock vote per share | one vote | one vote | |||||||||||||
Ordinary shares, shares outstanding | 2,265,762,108 | ||||||||||||||
Class of warrant or right, number of securities called by warrants or rights | 10,119,045 | ||||||||||||||
Class B Common Shares | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Shares converted | 45,000,000 | ||||||||||||||
Common stock vote per share | fifteen votes | fifteen votes | |||||||||||||
Ordinary shares, shares outstanding | 311,624,444 | ||||||||||||||
ADR [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Issuance of ordinary shares (in shares) | 4,047,620 | ||||||||||||||
Class of warrant or right, number of securities called by warrants or rights | 674,603 | ||||||||||||||
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 | ||||||||||||||
Institutional Investors [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Issuance of ordinary shares (in shares) | 403,157 | ||||||||||||||
Institutional Investors [Member] | American Depositary Shares | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Shares issued, price per share | $ / shares | $ 9 | ||||||||||||||
Institutional Investors [Member] | Class A Common Shares | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Issuance of ordinary shares (in shares) | 202,380,975 | ||||||||||||||
Class of warrant or right, number of securities called by warrants or rights | 60,714,300 | ||||||||||||||
Institutional Investors [Member] | ADR [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Issuance of ordinary shares (in shares) | 13,492,065 |
Treasury Stocks - Additional In
Treasury Stocks - Additional Information (Details) ¥ in Thousands, $ in Millions | May 03, 2021CNY (¥)shares | Sep. 30, 2021shares | May 31, 2021shares | Nov. 30, 2019shares | May 31, 2019shares | Feb. 28, 2019shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Sep. 19, 2021USD ($) | Apr. 30, 2018shares |
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Common stock shares outstanding | 2,577,386,552 | 2,328,326,132 | |||||||||
Treasury stock, shares | 226,751,940 | 43,896,090 | |||||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | ¥ | ¥ 150,705 | ||||||||||
Stock Issued During Period, Shares, New Issues | 233,217,776 | 222,222,222 | |||||||||
Stock Issued During Period, Value, New Issues | ¥ | ¥ 669,559 | ||||||||||
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 | 5,757,945 | 4,002,052 | |||||||||
Restricted Share Units | Amended 2018 Plan [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Treasury stock, shares | 83,097,225 | ||||||||||
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 | 928,205 | ||||||||||
Restricted Ordinary Shares | 2018 Equity Incentive Plan | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Treasury stock, shares | 12,338,955 | ||||||||||
Restricted Ordinary Shares | Amended 2018 Plan [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Treasury stock, shares | 95,816,325 | ||||||||||
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 | 34,683,225 | 25,799,190 | |||||||||
Proceeds from repurchases | ¥ | ¥ 103,543 | ¥ 23,915 | |||||||||
Shares Repurchase [Member] | Restricted Ordinary Shares | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Treasury stock, shares | 60,482,415 | ||||||||||
Share Repurchase Program [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Stock repurchase program authorized amount | $ | $ 10 | ||||||||||
American Depository Shares [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues | 4,047,620 | ||||||||||
American Depository Shares [Member] | Shares Repurchase [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Common stock shares outstanding | 2,312,215 | 1,719,946 | |||||||||
Common Class A [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Common stock shares outstanding | 2,265,762,108 | ||||||||||
Stock Issued During Period, Value, New Issues | ¥ | ¥ 1,029,455 | ||||||||||
Common Class A [Member] | Amended 2018 Plan [Member] | |||||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||||
Ordinary shares contributed for future share awards | 63,774,885 | 63,774,885 | |||||||||
Share-based payment arrangement, shares withheld for tax withholding obligation | 33,255,495 | ||||||||||
Shares Issued in Period | 94,927,065 | 94,927,065 | |||||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | ¥ | ¥ 150,706 | ||||||||||
Stock Issued During Period, Shares, New Issues | 13,043,895 | ||||||||||
Stock Issued During Period, Value, New Issues | ¥ | ¥ 45,728 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Apr. 25, 2018 | Oct. 08, 2016 | Nov. 30, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Share options granted | 114,000,000 | |||||||||||||
Exercise price of share options granted | ¥ 4.90 | |||||||||||||
Share-based compensation expense | ¥ 44,789 | |||||||||||||
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 | |||||||||||||
2018 Equity Incentive Plan | Common Class A [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Share based compensation arrangement by share based payment award cumulative annual increase percentage | 15 | |||||||||||||
Share-based compensation arrangement by share-based payment award, percentage of outstanding stock maximum | 3.00% | |||||||||||||
Number of additional shares authorized for issuance under share-based payment arrangement | 63,774,885 | 94,927,065 | ||||||||||||
Amended 2018 Plan [Member] | Common Class A [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Issuance of ordinary shares (in shares) | 13,043,895 | |||||||||||||
Share Options | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
weighted-average period for recognization of unrecognized compensation expense related to share options | 27 months 11 days | |||||||||||||
Unrecognized compensation expense related to share options | ¥ 332,754 | ¥ 332,754 | ||||||||||||
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. | |||||||||||||
Share Options | Amended 2018 Plan [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Restricted share units granted | 114,000,000 | |||||||||||||
Restricted Share Units | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Restricted shares outstanding | 137,243,670 | 137,243,670 | 9,040,000 | 15,733,334 | 32,030,000 | |||||||||
Restricted share units granted | 236,768,940 | |||||||||||||
Restricted share units vested | 101,574,270 | 4,002,052 | 13,928,205 | |||||||||||
Unrecognized compensation expense | ¥ 519,951 | ¥ 519,951 | ||||||||||||
weighted-average period for recognization of unrecognized compensation expense related to share options | 34 months 10 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 Share Units | Amended 2018 Plan [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Restricted share units granted | 236,768,940 | |||||||||||||
Restricted Ordinary Shares | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Restricted shares outstanding | 0 | 17,594,000 | ||||||||||||
Restricted share units granted | 19,594,000 | |||||||||||||
Restricted share units vested | 16,000,000 | 16,000,000 | ||||||||||||
Restricted Ordinary Shares | 2018 Equity Incentive Plan | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Restricted share units vested | 95,816,325 | |||||||||||||
Restricted Ordinary Shares | Amended 2018 Plan [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Restricted share units granted | 236,768,940 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Restricted Shares Activity (Details) - Restricted Share Units - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, Outstanding | 9,040,000 | 15,733,334 | 32,030,000 |
Number of shares, Granted | 236,768,940 | ||
Number of shares, Forfeited | (6,991,000) | (2,691,282) | (2,368,461) |
Number of shares, Vested | (101,574,270) | (4,002,052) | (13,928,205) |
Number of shares, Outstanding | 137,243,670 | 9,040,000 | 15,733,334 |
Weighted average grant date fair value, Outstanding | ¥ 1.51 | ¥ 1.51 | ¥ 1.55 |
Weighted average grant date fair value, Granted | 3.74 | ||
Weighted average grant date fair value, Forfeited | 3.10 | 1.51 | 1.51 |
Weighted average grant date fair value, Vested | 2.15 | 1.51 | 1.59 |
Weighted average grant date fair value, Outstanding | ¥ 4.81 | ¥ 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 | 1 Months Ended | 12 Months Ended |
Nov. 30, 2019 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, Outstanding | 17,594,000 | |
Number of shares, Forfeited | (1,594,000) | |
Number of shares, Vested | (16,000,000) | (16,000,000) |
Number of shares, Outstanding | 0 | |
Weighted average grant date fair value, Outstanding | ¥ 2.56 | |
Weighted average grant date fair value, Forfeited | 2.56 | |
Weighted average grant date fair value, Vested | 2.56 | |
Weighted average grant date fair value, Outstanding | ¥ 0 |
Share-based compensation - Su_3
Share-based compensation - Summary of Assumptions Used to determine the Fair Value of Stock Optionsd (Detail) | 12 Months Ended |
Dec. 31, 2021¥ / USD$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 0.00% |
Expected term | 10 years |
Exercise multiple | ¥ / USD | 2.80 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate of return | 1.85% |
Expected volatility | 142.01% |
Fair value of ordinary share | $ 17.51 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate of return | 1.25% |
Expected volatility | 136.91% |
Fair value of ordinary share | $ 3.78 |
Share-based compensation - Su_4
Share-based compensation - Summary of Fair Values of the Share Options Granted (Detail) | 12 Months Ended |
Dec. 31, 2021¥ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant date fair value of option per share | ¥ 6.63 |
Aggregate grant date fair value of options | ¥ 465,553 |
Share-based compensation - Sche
Share-based compensation - Schedule of Stock Option Activity (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended |
Dec. 31, 2021CNY (¥)¥ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares , Begining Balance | shares | 0 |
Number of shares , Granted | shares | 114,000,000 |
Number of shares , Ending Balance | shares | 114,000,000 |
Number of shares , Expected to vest | shares | 94,677,000 |
Number of shares , Exercisable | shares | 0 |
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Exercise Price [Abstract] | |
Weighted-Average per Share Exercise Price , Begining Balance | ¥ / shares | ¥ 0 |
Weighted-Average per Share Exercise Price , Granted | ¥ / shares | 4.90 |
Weighted-Average per Share Exercise Price , Ending Balance | ¥ / shares | 4.90 |
Weighted-Average per Share Exercise Price, Expected to vest | ¥ / shares | 4.90 |
Weighted-Average per Share Exercise Price , Exercisable | ¥ / shares | ¥ 0 |
Share Based Compensation Arrangement By ShareBased Payment Award Options Weighted Average Remaining Contractual Term [Abstract] | |
Weighted Average Remaining Contractual Term, Expected to vest | 9 years 1 month 6 days |
Share Based Compensation Arrangement By ShareBased Payment Award Options Aggregate Intrinsic Value [Abstract] | |
Aggregate Intrinsic Value, Begining balance | ¥ | ¥ 0 |
Aggregate Intrinsic Value, Granted | ¥ | 0 |
Aggregate Intrinsic Value, Ending balance | ¥ | 0 |
Aggregate Intrinsic Value, Expected to vest | ¥ | 0 |
Aggregate Intrinsic Value, Exercisable | ¥ | ¥ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - CNY (¥) ¥ in Thousands | Mar. 16, 2007 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 |
Income Taxes [Line Items] | ||||||
Statutory income tax rate | 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 | ¥ 1,192,746 | ¥ 701,633 | ||||
Withholding income tax | 0 | 0 | ||||
Tax loss carry forwards | ¥ 437,187 | 1,762,521 | ||||
Tax loss carry forwards period | 10 years | 5 years | ||||
Operating loss carry forwards expiration start year | 2022 | |||||
Operating loss carry forwards expiration end year | 2031 | |||||
Deferred tax assets valuation allowance | ¥ 17,984 | ¥ 304,790 | ¥ 254,039 | ¥ 119,065 | ||
Other PRC Subsidiaries | ||||||
Income Taxes [Line Items] | ||||||
Statutory income tax rate | 25.00% | |||||
PRC mainland and Hong Kong subsidiaries [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax loss carry forwards | ¥ 84,255 | |||||
Operating Loss Carryforwards, Limitations on Use | Tax losses of RMB84,255 will expire, if unused, by 2025 and thereafter. | |||||
Operating Loss Carryforwards, Subject to Expiration | ¥ 84,255 | |||||
Operating Loss Carryforwards, Expiration year | 2025 | |||||
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% | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
PRC statutory income tax rates | 25.00% | (25.00%) | (25.00%) |
Permanent book – tax difference | 1.40% | (4.50%) | 3.30% |
Share-based compensation | 3.40% | 0.20% | 5.80% |
Super deduction of R&D expense | (2.60%) | (5.70%) | (1.50%) |
Others | 0.60% | 1.00% | (1.00%) |
Different tax rates in other jurisdictions | (2.20%) | 2.00% | 0.40% |
Effect of tax holiday | (7.80%) | 4.40% | 8.40% |
Change in valuation allowance | (14.00%) | 23.10% | 12.90% |
Total | 2.40% | 0.00% | 0.00% |
Effects of tax holidays entitled by the PRC subsidiaries | ¥ 160,246 | ¥ (9,553) | ¥ (87,043) |
Class A and ClassB [Member] | |||
Income Taxes [Line Items] | |||
Effects of tax holidays entitled by the PRC subsidiaries on basic (loss) earnings per Class A and Class B ordinary share (RMB cent per share) | ¥ 6.35 | ¥ (0.41) | ¥ (4.04) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Composition of Income Tax Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ 149,152 | ¥ 0 | ¥ 0 | |
Deferred income tax benefits | (99,044) | $ (15,542) | 0 | 0 |
Income tax expense | ¥ 50,108 | $ 7,863 | ¥ 0 | ¥ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Tax losses carried forward | ¥ 102,239 | ¥ 286,044 | ||
Write-down of inventories | 10,771 | 16,840 | ||
Warranty reserve | 2,704 | 0 | ||
Allowance for doubtful accounts | 1,314 | 1,744 | ||
Unrealized gain from intracompany sale | 0 | 162 | ||
Subtotal | 117,028 | 304,790 | ||
Less: Valuation allowance | (17,984) | (304,790) | ¥ (254,039) | ¥ (119,065) |
Deferred tax assets | ¥ 99,044 | ¥ 0 |
Income Taxes - Schedule of Move
Income Taxes - Schedule of Movement of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | ¥ 304,790 | ¥ 254,039 | ¥ 119,065 |
Additions (decreases) during the year | (286,806) | 50,751 | 134,974 |
Ending balance | ¥ 17,984 | ¥ 304,790 | ¥ 254,039 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Transaction amount with related parties | |||
Transaction amount with related parties | ¥ 0 | ¥ 637 | ¥ 0 |
Disposal of motor vehicles | |||
Transaction amount with related parties | |||
Transaction amount with related parties | ¥ 0 | ¥ 637 | ¥ 0 |
Basic and Diluted Earnings (L_3
Basic and Diluted 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, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Basic earnings (loss) per share calculation Numerator : | ||||
Net income/(loss) | ¥ 2,000,282 | $ 313,886 | ¥ (215,094) | ¥ (1,034,510) |
Basic and diluted net earnings/(loss) per share calculation: Denominator | ||||
Weighted-average ordinary shares outstanding | 2,521,667,815 | 2,521,667,815 | 2,345,703,779 | 2,153,172,769 |
Diluted earnings (loss) per share calculation Numerator : | ||||
Net income/(loss) | ¥ 2,000,282 | $ 313,886 | ¥ (215,094) | ¥ (1,034,510) |
Diluted net earnings/(loss) per share calculation: Denominator | ||||
— Basic | 2,521,667,815 | 2,521,667,815 | 2,345,703,779 | 2,153,172,769 |
Add: weighted-average RSUs | 54,489,432 | 54,489,432 | ||
Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share | 2,576,157,247 | 2,576,157,247 | 2,345,703,779 | 2,153,172,769 |
Diluted earnings (loss) per Class A and Class B ordinary share (RMB cent per share) | (per share) | ¥ 77.65 | $ 12.18 | ¥ (9.17) | ¥ (48.05) |
Class A and Class B ordinary share [Member] | ||||
Basic and diluted net earnings/(loss) per share calculation: Denominator | ||||
Net earnings (loss) per Class A and Class B ordinary share (RMB cent per share) | ¥ / shares | ¥ 79.32 | ¥ (9.17) | ¥ (48.05) | |
Diluted net earnings/(loss) per share calculation: Denominator | ||||
Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share | 2,576,157,247 | 2,576,157,247 | 2,345,703,779 | 2,153,172,769 |
Diluted earnings (loss) per Class A and Class B ordinary share (RMB cent per share) | ¥ / shares | ¥ 77.65 | ¥ (9.17) | ¥ (48.05) |
Basic and Diluted Earnings (L_4
Basic and Diluted 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted-average RSUs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted-average of shares | 0 | 10,710,636 | 13,923,725 |
Share options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted-average of shares | 114,000,000 | 0 | 0 |
Warrants | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted-average of shares | 70,833,345 | 0 | 0 |
Contingencies (Details)
Contingencies (Details) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Loss Contingencies [Line Items] | |
Contingent liabilities | ¥ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Shares Repurchase [Member] ¥ in Millions | Mar. 15, 2022CNY (¥)shares |
Subsequent Event [Line Items] | |
Stock repurchase program authorized amount | ¥ | ¥ 100 |
Number of ordinary shares representing american depositary shares | shares | 15 |
Stock Repurchase Program, Period in Force | 24 months |
Stock repurchase program starting date | Mar. 16, 2022 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 2,684,342 | $ 421,232 | ¥ 391,310 | ||
Total current assets | 5,273,461 | 827,522 | 1,007,206 | ||
Non-current assets: | |||||
Total assets | 5,632,257 | 883,824 | 1,036,376 | ||
Current liabilities: | |||||
Refund from depository bank – current | 2,013 | 2,060 | |||
Non-current liabilities: | |||||
Refund from depository bank – non-current | 5,824 | 8,020 | |||
Warrant liability | 66,347 | 10,411 | |||
Total liabilities | 2,173,567 | 341,080 | 603,818 | ||
Shareholders' equity: | |||||
Ordinary shares | 1 | 1 | |||
Subscriptions receivable from shareholders | (1) | (1) | |||
Treasury stocks | 231,281 | 36,293 | 23,915 | ||
Additional paid-in capital | 2,891,134 | 453,682 | 1,634,619 | ||
Statutory reserves | 97,420 | 15,287 | 97,307 | ||
Accumulated other comprehensive loss | (101,925) | (15,994) | (79,780) | ||
Retained earnings (accumulated deficit) | 803,342 | 126,062 | (1,195,673) | ||
Total shareholders' equity | 3,458,690 | 542,744 | 432,558 | ¥ 692,795 | ¥ 240,978 |
Total liabilities and shareholders' equity | 5,632,257 | 883,824 | 1,036,376 | ||
Parent Company | |||||
Current assets: | |||||
Cash and cash equivalents | 30,860 | 4,843 | 147 | ||
Receivables from subsidiaries | 3,501,544 | 549,468 | 442,491 | ||
Total current assets | 3,532,404 | 554,311 | 442,638 | ||
Non-current assets: | |||||
Investments in subsidiaries | 470 | 74 | |||
Total assets | 3,532,874 | 554,385 | 442,638 | ||
Current liabilities: | |||||
Refund from depository bank – current | 2,013 | 316 | 2,060 | ||
Non-current liabilities: | |||||
Refund from depository bank – non-current | 5,824 | 914 | 8,020 | ||
Warrant liability | 66,347 | 10,411 | |||
Total liabilities | 74,184 | 11,641 | 10,080 | ||
Shareholders' equity: | |||||
Ordinary shares | 1 | 1 | |||
Subscriptions receivable from shareholders | (1) | (1) | |||
Treasury stocks | (231,281) | (36,293) | (23,915) | ||
Additional paid-in capital | 2,891,134 | 453,501 | 1,634,619 | ||
Statutory reserves | 97,420 | 15,287 | 97,307 | ||
Accumulated other comprehensive loss | (101,925) | (15,994) | (79,780) | ||
Retained earnings (accumulated deficit) | 803,342 | 126,243 | (1,195,673) | ||
Total shareholders' equity | 3,458,690 | 542,744 | 432,558 | ||
Total liabilities and shareholders' equity | ¥ 3,532,874 | $ 554,385 | ¥ 442,638 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company - Schedule of Condensed Statements of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | May 03, 2021CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Cost of revenues and operating expenses: | |||||
Cost of revenues | ¥ 2,135,961 | $ 335,179 | ¥ 409,922 | ¥ 1,938,626 | |
Research and development expenses | (332,846) | (52,231) | (140,041) | (168,982) | |
Sales and marketing expenses | (100,467) | (15,765) | (19,980) | (21,917) | |
General and administrative expenses | (589,107) | (92,444) | (131,624) | (347,633) | |
Interest income | 7,310 | 1,147 | 3,153 | 3,853 | |
Other income, net | 6,410 | 1,006 | 30,958 | 25,093 | |
Change in fair value of warrant liability | ¥ 258,782 | (190,178) | (29,843) | 0 | 0 |
Net income (loss) | 2,000,282 | 313,886 | (215,094) | (1,034,510) | |
Total comprehensive income (loss) | 1,978,137 | 310,411 | (239,332) | (1,024,822) | |
Parent Company | |||||
Cost of revenues and operating expenses: | |||||
Cost of revenues | (269) | (42) | |||
Research and development expenses | (99,173) | (15,562) | (652) | (22,465) | |
Sales and marketing expenses | (8,239) | (1,293) | (41) | (358) | |
General and administrative expenses | (390,448) | (61,270) | (2,277) | (247,426) | |
Loss from operations | (498,129) | (78,167) | (2,970) | (270,249) | |
Interest income | 1 | 5 | |||
Other income, net | 2,037 | 320 | 2,425 | ||
Change in fair value of warrant liability | 190,178 | 29,843 | |||
Share of income (losses) from subsidiaries | 2,306,195 | 361,892 | (214,549) | (764,266) | |
Net income (loss) | 2,000,282 | 313,888 | (215,094) | (1,034,510) | |
Foreign currency translation adjustment, net of nil tax | (22,145) | (3,475) | (24,238) | 9,688 | |
Total comprehensive income (loss) | ¥ 1,978,137 | $ 310,413 | ¥ (239,332) | ¥ (1,024,822) |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company - Schedule of Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | May 03, 2021CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Cash flows from operating activities | |||||
Net cash provided by (used in) operating activities | ¥ 1,438,850 | $ 225,786 | ¥ 42,297 | ¥ (280,058) | |
Cash flows from investing activities | |||||
Net cash (used in)/provided by investing activities | 5,115 | 803 | (49,576) | (16,330) | |
Cash flows from financing activities | |||||
Proceeds from issuance of ordinary shares | ¥ 770,673 | ||||
Proceeds from issuance of ordinary shares upon IPO | 544,122 | ||||
Payment for repurchase of ordinary shares | 103,543 | 16,248 | 23,915 | ||
Proceeds from Issuance of Ordinary Shares and Warrants | 669,559 | ||||
Net cash provided by (used in) financing activities | 905,854 | 142,149 | (111,940) | 277,951 | |
Net increase (decrease) in cash and cash equivalents | 2,349,819 | 368,738 | (119,219) | (18,437) | |
Effect of exchange rate changes on cash | (13,919) | (2,184) | (9,823) | (1,927) | |
Cash and cash equivalents, and restricted cash at the beginning of year | 395,804 | 62,110 | 524,846 | 545,210 | |
Cash and cash equivalents, and restricted cash at the end of year | 2,731,704 | 428,664 | 395,804 | 524,846 | |
Parent Company | |||||
Cash flows from operating activities | |||||
Receipt of refund from depository bank | 0 | 0 | 13,285 | 0 | |
Other cash used in operating activities | (6,462) | (1,014) | (1) | (39) | |
Net cash provided by (used in) operating activities | (6,462) | (1,014) | 13,284 | (39) | |
Cash flows from investing activities | |||||
Decrease (increase) in receivables from subsidiaries | (871,194) | (136,709) | 28,451 | (1,252,029) | |
Net cash (used in)/provided by investing activities | (871,194) | (136,709) | 28,451 | (1,252,029) | |
Cash flows from financing activities | |||||
Proceeds from issuance of ordinary shares | 0 | 0 | 0 | 669,559 | |
Proceeds from issuance of ordinary shares upon IPO | 0 | 0 | 0 | 582,449 | |
Payment for repurchase of ordinary shares | (103,543) | (16,248) | (23,915) | 0 | |
Prepayment under share repurchase agreement | (573) | (90) | (16,146) | 0 | |
Payment for cost of issuance | (519) | (81) | 0 | 0 | |
Proceeds from Issuance of Ordinary Shares and Warrants | 1,029,455 | 161,544 | 0 | 0 | |
Net cash provided by (used in) financing activities | 924,820 | 145,125 | (40,061) | 1,252,008 | |
Net increase (decrease) in cash and cash equivalents | 47,164 | 7,402 | 1,674 | (60) | |
Effect of exchange rate changes on cash | (16,451) | (2,582) | (1,541) | 74 | |
Cash and cash equivalents, and restricted cash at the beginning of year | 147 | 23 | 14 | 0 | |
Cash and cash equivalents, and restricted cash at the end of year | ¥ 30,860 | $ 4,843 | ¥ 147 | ¥ 14 |