Technology

Canaan Inc. Reports Unaudited Third Quarter 2024 Financial Results

Published

2 months ago

November 20, 2024

– Total Revenue Increased to US$73.6 Million, up 120.9% YoY –
– Total Computing Power Sold Achieved 7.3 Million Thash/s, up 93.8% YoY –

SINGAPORE, Nov. 20, 2024 /PRNewswire/ — Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a leading high-performance computing solutions provider, today announced its unaudited financial results for the three months ended September 30, 2024.

Third Quarter 2024 Operating and Financial Highlights

Revenues were US$73.6 million, which beat the previous guidance of US$73 million and increased 120.9% year-over-year.

Total computing power sold was 7.3 million Thash/s, representing a year-over-year increase of 93.8%.

Mining revenue was US$9.0 million, with 147 Bitcoins mined with an average revenue per Bitcoin mined of US$61,034.

Loss from operations was US$56.8 million, narrowing 49.6% year-over-year.

Nangeng Zhang, chairman, and chief executive officer of Canaan, commented, “Despite a challenging third quarter for the industry, we delivered a solid US$73.6 million in total revenue, exceeding our expectations. While Bitcoin prices remained soft in the quarter, the global network hash rate surged over 10%. Through strategic planning and effective execution, we made further strides in our operations. Primarily driven by the A14’s continued large-scale deliveries proceeding as scheduled, we recorded 7.3 million Thash/s of computing power sold, marking our highest sales volume in the past 11 quarters. Our mining operation matrix also continued to be optimized. Despite unfavorable Bitcoin prices, we mined 147 Bitcoins this quarter, a 5% sequential increase.”

“Building on the success of the A14, our new A15 series, which features outstanding performance parameters, began small-scale deliveries this quarter. We are working to optimize the A15’s yield rate and power efficiency, and anticipate ramping up to large-scale deliveries in the fourth quarter. Meanwhile, we remained diligent in strengthening our presence in the North American market. We recently made good progress with our Avalon A15 series, both air-cooled and liquid-cooled versions, including orders from public companies such as CleanSpark and HIVE, which we announced in November. We are also moving steadily towards our 2025 mid-year 10EH/s self-mining target. By delivering high-quality products and efficient alternative solutions, we are committed to empowering our global mining clients to navigate both challenges and opportunities ahead.”

Jin “James” Cheng, chief financial officer of Canaan, stated, “Although the Bitcoin prices remained under pressure in Q3, we overcame significant challenges to beat our expected targets this quarter. Our mining machine sales reached their highest level in nearly two years, driven by our dedicated efforts in delivering both the A14 and A15 models. This accomplishment is a testament to our strengthened production and delivery capabilities. Mining revenue reached US$9 million in the quarter, holding steady compared to the second quarter, despite a 7.5% decrease in the average prices of Bitcoins mined during the same periods. We also increased our balance sheet Bitcoin holdings to a record high of 1,231 Bitcoins, reinforcing our confidence in the long-term value of our cryptocurrency assets.”

“Benefiting from the successful bulk delivery of the A14 products, continued presales of the A15 series, and the completion of the third tranche of Series A preferred shares as we expected, our cash reserves increased to US$72 million by the end of the quarter. The bolstered cash level has enabled us to accelerate the mass production ramp-up of the A15 model. As we approach a critical period of opportunity with the market poised for improvement, we are dedicated to leveraging our high-quality products and enhanced delivery capabilities to meet the diverse needs of our global mining customers. We believe our strategic investments in R&D, supply chain, and mining deployment position us well to capitalize on the anticipated market upturn.”

Third Quarter 2024 Financial Results

Revenues in the third quarter of 2024 were US$73.6 million, as compared to US$71.9 million in the second quarter of 2024 and US$33.3 million in the same period of 2023. Total revenues consisted of US$64.6 million in products revenue, US$9.0 million in mining revenue and US$65,000 in other revenues.

Products revenue in the third quarter of 2024 was US$64.6 million, compared to US$61.8 million in the second quarter of 2024 and US$29.9 million in the same period of 2023. The sequential increase was driven by the increased computing power sold. The year-over-year increase was driven by the increased computing power sold and increased average selling price.

Mining revenue in the third quarter of 2024 was US$9.0 million, compared to US$9.3 million in the second quarter of 2024 and US$3.3 million in the same period of 2023. The year-over-year increase was mainly attributable to the increased computing power energized for mining.

Cost of revenues in the third quarter of 2024 was US$95.1 million, compared to US$91.0 million in the second quarter of 2024 and US$102.4 million in the same period of 2023.

Product cost in the third quarter of 2024 was US$81.6 million, compared to US$79.7 million in the second quarter of 2024 and US$83.7 million in the same period of 2023. The sequential increase was in line with revenue growth. The inventory write-down and prepayment write-down recorded for this quarter was US$22.9 million, compared to US$17.3 million for the second quarter of 2024 and US$53.9 million for the same period of 2023. Product cost consists of direct production costs of mining machines and AI products and indirect costs related to production, as well as inventory write-down and prepayment write-down.

Mining cost in the third quarter of 2024 was US$13.5 million, compared to US$11.0 million in the second quarter of 2024 and US$18.7 million in the same period of 2023. Mining costs herein consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed mining machines. The sequential increase was mainly due to the increased depreciation driven by the increased deployed mining machines. The year-over-year decreases were mainly due to the decreased depreciation which was driven by the end of the depreciation period of early deployed mining machines and the impairment of the currently deployed mining machines. The depreciation in this quarter for deployed mining machines was US$6.5 million, compared to US$4.8 million in the second quarter of 2024 and US$15.0 million in the same period of 2023.

Gross loss in the third quarter of 2024 was US$21.5 million, compared to US$19.1 million in the second quarter of 2024 and US$69.1 million in the same period of 2023.

Total operating expenses in the third quarter of 2024 were US$35.3 million, compared to US$27.5 million in the second quarter of 2024 and US$43.8 million in the same period of 2023.

Research and development expenses in the third quarter of 2024 were US$14.8 million, compared to US$14.6 million in the second quarter of 2024 and US$17.2 million in the same period of 2023. The year-over-year decrease was mainly due to a decrease of US$1.7 million in staff costs and a decrease of US$0.5 million in share-based compensation expenses. Research and development expenses in the third quarter of 2024 also included share-based compensation expenses of US$1.9 million.

Sales and marketing expenses in the third quarter of 2024 were US$1.7 million, compared to US$1.6 million in the second quarter of 2024 and US$2.5 million in the same period of 2023. The year-over-year decrease was mainly due to a decrease of US$0.8 million in the advertising expenses. Sales and marketing expenses in the third quarter of 2024 also included share-based compensation expenses of US$54 thousand.

General and administrative expenses in the third quarter of 2024 were US$12.4 million, compared to US$10.4 million in the second quarter of 2024 and US$16.2 million in the same period of 2023. The sequential increase was mainly due to a decrease in the realized gain on asset disposals. The year-over-year decrease was mainly due to a decrease of US$2.5 million in share-based compensation expenses and an increase of US$0.5 million in the realized gain on asset disposals. General and administrative expenses in the third quarter of 2024 also included share-based compensation expenses of US$4.7 million.

Impairment on property, equipment and software in the third quarter of 2024 was US$6.5 million, compared to US$0.8 million in the second quarter of 2024 and US$5.7 million in the same period of 2023. The sequential and year-over-year increases were mainly due to the increased impairment for some A13 series of mining rigs deployed as a result of increased Bitcoin mining difficulty post-halving.

Loss from operations in the third quarter of 2024 was US$56.8 million, compared to US$46.6 million in the second quarter of 2024 and US$112.8 million in the same period of 2023.

Excess of fair value of Series A Convertible Preferred Shares in the third quarter of 2024 was US$28.3 million, compared to nil in the second quarter of 2024 and nil in the same period of 2023. For further information, please refer to “Preferred Shares Financing” in this press release.

Foreign exchange losses, net in the third quarter of 2024 were US$1.0 million, compared with a gain of US$11.4 million in the second quarter of 2024 and a gain of US$10.9 million in the same period of 2023, respectively. The foreign exchange losses were due to the U.S. dollar depreciation against the Renminbi during the third quarter of 2024.

Net loss in the third quarter of 2024 was US$75.6 million, compared to US$41.9 million in the second quarter of 2024 and US$80.1 million in the same period of 2023.

Non-GAAP adjusted EBITDA in the third quarter of 2024 was a loss of US$34.1 million, as compared to a loss of US$30.6 million in the second quarter of 2024 and a loss of US$68.0 million in the same period of 2023. For further information, please refer to “Use of Non-GAAP Financial Measures” in this press release.

Foreign currency translation adjustment, net of nil tax, in the third quarter of 2024 was a gain of US$5.1 million, compared with a loss of US$4.0 million in the second quarter of 2024 and a gain of US$7.7 million in the same period of 2023, respectively.

Basic and diluted net loss per American depositary share (“ADS”) in the third quarter of 2024 were US$0.27. In comparison, basic and diluted net loss per ADS in the second quarter of 2024 were US$0.15, while basic and diluted net loss per ADS in the same period of 2023 were US$0.47. Each ADS represents 15 of the Company’s Class A ordinary shares.

As of September 30, 2024, the Company held Cryptocurrency assets with a fair value of US$32.6 million and Cryptocurrency receivable with a fair value of US$46.4 million. Cryptocurrency assets primarily consist of 482 bitcoins owned by the Company and 19.3 bitcoins received as customer deposits. Cryptocurrency receivable consists of 600 bitcoins pledged for secured term loans, 100 bitcoins transferred to fixed term product, and 30 bitcoins prepaid for professional services. As of September 30, 2024, the Company held a total of 1,231.3 bitcoins.

Total change in fair value of cryptocurrency assets and cryptocurrency receivable in the third quarter of 2024 was an unrealized gain of US$2.5 million, compared to an unrealized loss of US$9.8 million in the second quarter of 2024. The change in fair value of cryptocurrency assets was recorded in Change in fair value of cryptocurrency as a loss of US$1.7 million, and the change in fair value of cryptocurrency receivable was recorded in Other income (net) as a gain of US$4.2 million.

As of September 30, 2024, the Company had cash of US$71.8 million, compared to US$96.2 million as of December 31, 2023.

Accounts receivable, net as of September 30, 2024, was US$1.4 million, compared to US$3.0 million as of December 31, 2023. Accounts receivable was mainly due to an installment policy implemented for some major customers who meet certain conditions.

Contract liabilities as of September 30, 2024, were US$16.2 million, compared to US$19.6 million as of December 31, 2023.

Shares Outstanding

As of September 30, 2024, the Company had a total of 273,741,843 ADSs outstanding, each representing 15 of the Company’s Class A ordinary shares.

Recent Developments

Expanded Mining Operation Footprint in Texas and Pennsylvania

On November 15, 2024, the Company’s wholly-owned subsidiary, Beet Digital LLC., entered into a strategic joint mining agreement with Luna Squares Texas LLC (“LS Texas”), a West Texas Bitcoin mining firm, to collaborate on mining activities at LS Texas’ mining site. Based on current estimated configurations, Canaan will install approximately 3,480 Avalon A14 series mining machines with an average hash rate of 150 Thash/s and 5,664 Avalon A15 series mining machines with an average hash rate of 194 Thash/s at LS Texas’ 30 MW site located in Willow Wells, Texas. The site is expected to be energized by the first quarter of 2025. After the site is fully energized, this project will provide approximately 1.62 EH/s of computing power.

Additionally, Cantaloupe Digital LLC (“Cantaloupe”), a wholly owned subsidiary of Canaan, recently amended its hosting agreement with Stronghold Digital Mining Hosting, LLC, an affiliate of Stronghold Digital Mining, Inc. (“Stronghold”) and will deliver 4,000 Avalon A14 series mining machines, each with an average hash rate of 150 Thash/s, to replace older Avalon models at Stronghold’s Panther Creek facility. In October, Cantaloupe completed the replacement of 2,000 older-generation units with A14 series machines. The Company anticipates that these 4,000 A14 units will be fully operational by December 31, 2024, resulting in a total of 6,000 A14 series machines at Panther Creek, Pennsylvania, with a combined computing power of 0.9 Exahash/s.

Secured Order from New Customer CleanSpark for 3,800 Avalon A1566I Miners

On November 1, 2024, Canaan U.S. Inc., a wholly owned subsidiary of the Company, entered into a purchase agreement with a new customer, CleanSpark Inc., for its Avalon A1566I miners.

According to the purchase agreement, Canaan U.S. Inc. will provide CleanSpark with 3,800 Avalon A1566I Immersion Cooling Miners. The miners, with an average computing power of 249 Thash/s without overclocking, are scheduled to be delivered in the fourth quarter of 2024.

Secured Large Orders from HIVE for 11,500 units of Avalon A1566 Miners

On November 11, 2024, Canaan Creative Global Pte. Ltd. (“CCG”), a wholly owned Singapore subsidiary of the Company, entered into a purchase agreement with HIVE Digital Technologies Ltd (“HIVE”).

According to the purchase agreement, CCG will provide HIVE with 6,500 Avalon A1566 miners, with an average computing power of 185 Thash/s. Of the 6,500 A1566 miners, 500 miners have been immediately delivered and are scheduled for installation. The remaining 6,000 machines will be delivered in four monthly shipments of 1,500 units, from December 2024 through March 2025.

On November 20, 2024, CCG entered into a follow-on order purchase agreement with HIVE.

According to the follow-on purchase agreement, CCG will provide HIVE with 5,000 Avalon A15 series miners, with an average computing power of 194 Thash/s, expected to be delivered in the first quarter of 2025.

Preferred Shares Financing

On November 27, 2023, the Company entered into a Securities Purchase Agreement with an institutional investor (the “Buyer”), pursuant to which the Company agreed to issue and sell to the Buyer up to 125,000 Series A Convertible Preferred Shares (the “Series A Preferred Shares”) at the price of US$1,000.00 for each Series A Preferred Share.

On December 11, 2023, the Company closed the first tranche of the preferred shares financing (the “First Tranche Preferred Shares Financing”) and was obligated to issue the second tranche of the preferred shares financing (the “Forward Purchase Liabilities”), raising total net proceeds of US$25.4 million. Pursuant to the First Tranches Preferred Shares Financing, the Company issued 25,000 Preferred Shares in total at the price of US$1,000.00 per Preferred Share.

In connection with the issuance of the Preferred Shares, the Company caused The Bank of New York Mellon to deliver 8,000,000 ADSs collectively as pre-delivery shares (the “Pre-delivery Shares”), each representing fifteen Class A ordinary shares of the Company, at the price of US$0.00000075 for each ADS. The Pre-delivery Shares shall be returned to the Company at the end of the arrangement and the Company shall pay such Buyer US$0.00000075 for each such Pre-delivery Share. The Pre-delivery Shares are considered a form of stock borrowing facility and were accounted as a share lending arrangement.

On January 22, 2024, the Company closed the second tranche of the preferred shares financing (the “Second Tranche Preferred Shares Financing”), raising total net proceeds of US$49.9 million. Pursuant to the Second Tranche Preferred Shares Financing, the Company issued 50,000 Preferred Shares in total at the price of US$1,000.00 per Preferred Share and caused The Bank of New York Mellon to deliver an additional 2,800,000 ADSs collectively as pre-delivery shares (the “Pre-delivery Shares”), each representing fifteen Class A ordinary shares of the Company, at the price of US$0.00000075 for each ADS.

The Company intends to use the net proceeds from the First Tranche and Second Tranche Preferred Shares for the expansion of wafer procurement, R&D activities, and other general corporate purposes.

On September 27, 2024, the Company closed the third and final tranche of Series A preferred shares financing (the “Third Tranche Closing”), raising total net proceeds of US$50.0 million. Pursuant to the Third Tranche Closing, the Company issued 50,000 Series A Preferred Shares in total at the price of US$1,000.00 per Series A Preferred Share.

The Company will use the proceeds from the Third Tranche Closing to manufacture or invest in digital mining sites and equipment to be deployed or sold in North America, including any acquisition or disposition of assets from or between subsidiaries.

Pursuant to the Global Amendment in connection with the Third Tranche Closing, the Buyer agreed to return to the Company 2,800,000 ADSs of the Pre-Delivery Shares delivered to the Buyer in the first tranche and the second tranche Series A preferred shares financing. The Company acknowledged that 1,345,203 ADSs of 2,800,000 ADSs of the Pre-Delivery Shares being returned to the Company would be returned in the form of 20,178,045 restricted class A ordinary shares. The Company will have no obligation to issue any Pre-Delivery Shares to the Buyer in connection with the Third Tranche Closing. As of the date of the Company’s third quarter 2024 earnings release, the Company has paid to the Buyer repurchase price of US$2.10 and cancelled 20,178,045 restricted class A ordinary shares repurchased.

As of the date of the Company’s earnings release for the third quarter of 2024, the Company has 4,223,697,753 Class A ordinary shares, 311,624,444 Class B ordinary shares, and 50,000 Series A Preferred Shares issued and outstanding. The increase in the outstanding Class A ordinary shares compared to the end of 2023 was due to the conversion from part of the Series A Preferred Shares to Class A ordinary shares by the Buyer and the issuance of the Pre-delivery Shares.

Execution of a Securities Purchase Agreement for Series A-1 Convertible Preferred Shares

On November 19, 2024, the Company entered into a securities purchase agreement (the “Series A-1 Securities Purchase Agreement”) with an institutional investor (the “Buyer”), pursuant to which the Company shall issue and sell to the Buyer up to 30,000 Convertible Series A-1 Preferred Shares (the “Series A-1 Preferred Shares”) at the price of US$1,000.00 for each Series A-1 Preferred Share. The closing of the sale of the Series A-1 Preferred Shares under the Series A-1 Securities Purchase Agreement is conditioned upon general customary closing conditions.

The Company agreed that the proceeds from the sale of the Series A-1 Preferred Shares will be used by the Company and/or its subsidiaries to manufacture or invest in digital mining sites and equipment to be deployed or sold in North America, including any acquisition or disposition of assets from or between subsidiaries.

Bitcoin Fixed Term Product

During the third quarter of 2024, the Company transferred 100 Bitcoins for fixed term product with an annual percentage rate of return (the “APR”) of 1.5% for 30 calendar days. As of the date of this earnings release, the fixed term product has matured, and total principal and interest of 100.12 Bitcoins have been transferred for open term product with an APR of 1% per annum.

Secured Term Loans

During the third quarter of 2024, the Company pledged 70 Bitcoins for secured term loans with an aggregate carrying value of US$2.0 million for 18 months. The secured term loans enable additional liquidity for the production expansion and operations of the Company.

Business Outlook

For the fourth quarter of 2024, the Company expects total revenues to be approximately US$80 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Conference Call Information

The Company’s management team will hold a conference call at 8:00 A.M. U.S. Eastern Time on November 20, 2024 (or 9:00 P.M. Singapore Time on the same day) to discuss the financial results. Details for the conference call are as follows:

Event Title: Canaan Inc. Third Quarter 2024 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BI93fff71a1b6d462d915c62d639a733cf

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.

A live and archived webcast of the conference call will be available at the Company’s investor relations website at investor.canaan-creative.com.

About Canaan Inc.

Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan’s founding team shipped to its customers the world’s first batch of mining machines incorporating ASIC technology in bitcoin‘s history under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan, please visit https://www.canaan.io/.

Safe Harbor Statement

This announcement contains forward−looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan Inc.’s strategic and operational plans, contain forward−looking statements. Canaan Inc. may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.’s beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition and results of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company’s expectations regarding demand for and market acceptance of its products, especially its bitcoin mining machines; the Company’s expectations regarding maintaining and strengthening its relationships with production partners and customers; the Company’s investment plans and strategies, fluctuations in the Company’s quarterly operating results; competition in its industry; and relevant government policies and regulations relating to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan Inc. does not undertake any obligation to update any forward−looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

In evaluating Canaan’s business, the Company uses non-GAAP measures, such as adjusted EBITDA, as supplemental measures to review and assess its operating performance. The Company defines adjusted EBITDA as net loss excluding income tax expenses (benefit), interest income, depreciation and amortization expenses, share-based compensation expenses, impairment on property, equipment and software, change in fair value of financial instruments and excess of fair value of Series A Convertible Preferred Shares. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools and investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. One of the key limitations of using adjusted EBITDA is that it does not reflect all of the items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

Investor Relations Contact

Canaan Inc.
Xi Zhang
Email: IR@canaan-creative.com

ICR, LLC.
Robin Yang
Tel: +1 (347) 396-3281
Email: canaan.ir@icrinc.com

CANAAN INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands, except share and per share data, or as otherwise noted)

As of December 31,

As of September 30,

2023

2024

USD

ASSETS

Current assets:

Cash

96,154

71,782

Accounts receivable, net

2,997

1,375

Cryptocurrency receivable, current

–

8,261

Inventories

142,287

87,802

Prepayments and other current assets

122,242

138,273

Total current assets

363,680

307,493

Non-current assets:

Cryptocurrency

28,342

32,632

Cryptocurrency receivable, non-current

–

38,127

Property, equipment and software, net

29,466

40,153

Intangible asset

–

954

Operating lease right-of-use assets

1,690

3,363

Deferred tax assets

66,809

76,088

Other non-current assets

486

472

Non-current financial investment

2,824

2,854

Total non-current assets

129,617

194,643

Total assets

493,297

502,136

LIABILITIES, AND
SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

6,245

16,735

Contract liabilities

19,614

16,238

Income tax payable

3,534

3,535

Accrued liabilities and other current

liabilities

64,240

36,178

Operating lease liabilities, current

1,216

1,407

Preferred Shares forward contract
liability

40,344

–

Series A Convertible Preferred Shares

–

77,104

Total current liabilities

135,193

151,197

Non-current liabilities:

Long-term loans

–

23,963

Lease liabilities, non-current

210

1,636

Deferred tax liability

–

162

Other non-current liabilities

9,707

9,372

Total liabilities

145,110

186,330

Shareholders’ equity:

Ordinary shares (US$0.00000005 par
value; 999,999,875,000 shares
authorized, 3,772,078,667 and
4,555,500,242 shares issued,
3,514,973,327 and 4,324,281,437 shares
outstanding as of December 31, 2023
and September 30, 2024, respectively)

–

Treasury stocks (US$0.00000005 par
value; 257,105,340 shares as of
December 31, 2023 and 231,218,805
shares as of September 30, 2024,
respectively)

(57,055)

Additional paid-in capital

653,860

763,293

Statutory reserves

14,892

Accumulated other comprehensive loss

(43,879)

(47,736)

Accumulated deficit

(219,631)

(357,588)

Total shareholders’ equity

348,187

315,806

Total liabilities and shareholders’ equity

493,297

502,136

CANAAN INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS

(all amounts in thousands of USD, except share and per share data, or as otherwise noted)

For the Three Months Ended

September 30,

2023

June 30,

2024

September 30,

2024

USD

Revenues

Products revenue

29,937

61,751

64,584

Mining revenue

3,264

9,308

8,959

Other revenues

118

799

Total revenues

33,319

71,858

73,608

Cost of revenues

Product cost

(83,668)

(79,661)

(81,625)

Mining cost

(17,908)

(11,037)

(13,476)

Other cost

(833)

(290)

(18)

Total cost of revenues

(102,409)

(90,988)

(95,119)

Gross loss

(69,090)

(19,130)

(21,511)

Operating expenses:

Research and development expenses

(17,152)

(14,648)

(14,761)

Sales and marketing expenses

(2,491)

(1,578)

(1,719)

General and administrative expenses

(16,223)

(10,445)

(12,392)

Impairment on property, equipment
and software

(5,691)

(798)

(6,462)

Impairment on cryptocurrency

(2,199)

–

Total operating expenses

(43,756)

(27,469)

(35,334)

Loss from operations

(112,846)

(46,599)

(56,845)

Interest income

158

Interest expense

–

(14)

(247)

Change in fair value of
cryptocurrency

–

(5,125)

(1,672)

Change in fair value of financial
instrument

–

(225)

1,243

Excess of fair value of Series A
Convertible Preferred Shares

–

(28,297)

Foreign exchange gains (losses), net

10,890

11,364

(1,036)

Other income (expense), net

1,349

(3,257)

4,408

Loss before income tax expenses

(100,546)

(43,790)

(82,288)

Income tax benefit

20,443

1,910

6,710

Net loss

(80,103)

(41,880)

(75,578)

Foreign currency translation

adjustment, net of nil tax

7,662

(3,999)

5,129

Total comprehensive loss

(72,441)

(45,879)

(70,449)

Weighted average number of
shares used in per class A and Class
B ordinary share calculation:

— Basic

2,562,542,847

4,117,791,601

4,163,053,834

— Diluted

2,562,542,847

4,117,791,601

4,163,053,834

Net loss per class A and Class B
ordinary share (cent per share)

— Basic

(3.13)

(1.02)

(1.82)

— Diluted

(3.13)

(1.02)

(1.82)

Share-based compensation expenses

were included in:

Cost of revenues

Research and development expenses

2,411

1,702

1,882

Sales and marketing expenses

General and administrative expenses

7,176

4,750

4,694

The table below sets forth a reconciliation of net loss to Non-GAAP adjusted EBITDA for the period indicated:

For the Three Months Ended

September 30,

2023

June 30,
2024

September 30,

2024

USD

Net loss

(80,103)

(41,880)

(75,578)

Income tax benefit

(20,443)

(1,910)

(6,710)

Interest income

(61)

(66)

(158)

Interest expense

247

EBIT

(100,607)

(43,842)

(82,199)

Depreciation and amortization expenses

17,166

5,650

7,855

EBITDA

(83,441)

(38,192)

(74,344)

Share-based compensation expenses

9,740

6,524

6,684

Impairment on property, equipment and
software

5,691

798

6,462

Change in fair value of financial
instruments

–

225

(1,243)

Excess of fair value of Series A
Convertible Preferred Shares

–

28,297

Non-GAAP adjusted EBITDA

(68,010)

(30,645)

(34,144)

View original content:https://www.prnewswire.com/news-releases/canaan-inc-reports-unaudited-third-quarter-2024-financial-results-302311234.html

SOURCE Canaan Inc.

Technology

AI Wellness Launches SoCal Fire Relief Initiative to Support Families and First Responders in Southern California

Published

46 minutes ago

January 12, 2025

LOS ANGELES, Jan. 11, 2025 /PRNewswire/ — Demonstrating a commitment to both innovation and compassion, AI Wellness has officially launched the SoCal Fire Relief Initiative to provide aid to families and first responders affected by the devastating fires in Southern California. Unveiled during CES 2025, this initiative aims to deliver critical resources and long-term recovery solutions to the communities hardest hit by this tragedy.

“Southern California is more than just where we operate—it’s our home,” said Dr. Gideon Kwok, Co-Founder of AI Wellness. “The fires have left countless families without homes, belongings, and hope. This initiative is our way of giving back and rebuilding the lives of our neighbors and the first responders who have worked tirelessly to protect them.”

Let’s Take Action Together

The SoCal Fire Relief Initiative brings together individuals, brands, and organizations to address the urgent and long-term needs of affected communities. In partnership with the Mission Community Hospital Foundation and the Santo Niño Health Center, AI Wellness is leading efforts to:

Provide essential supplies such as food, water, clothing, and medical care to displaced families.Deliver hydration and wellness resources to first responders working on the frontlines.Support long-term community recovery through wellness programs and innovative solutions.

“It is during a crisis that the best of humanity comes out,” said Bernard Hiller. “It’s important for those affected to know they are not alone. This is a huge undertaking that we cannot do without you. These are our friends, neighbors, and family. Please help us.”

How You Can Help

The initiative provides several ways to make a difference:

Donate to Relief Efforts:
Contributions directly fund essential resources for families and first responders.Send Water to Evacuation Centers:
Every purchase of AI Wellness Water helps ensure first responders and displaced families stay hydrated, while also funding continued production and donation efforts.Spread Awareness:
Share the SoCal Fire Relief Initiative with your networks to amplify its reach and inspire collective action.Wellness Bundles:
Wellness bundle purchases such as the Powersuit, Smart Ring, and Mindbody Matrix Water, help support relief efforts with proceeds contributing to recovery initiatives.

DONATE HERE

Real Impact in Action

Since the fires began, AI Wellness and its partners have made a significant impact:

Delivered over 10,000 water packs to evacuation centers and first responders.Distributed 500 wellness bundles to displaced families.Donated proceeds from the first 1,000 AI Wellness Powersuits and 5,000 Smart Rings to relief efforts.Raised $250,000 to support critical aid and recovery.

“This initiative is about more than providing relief,” said Abby Aboitiz Founder of AI Wellness. “It’s about restoring hope and rebuilding our community, together.”

Uniting Brands and Innovators

During CES 2025, AI Wellness called on brands and innovators to collaborate on this critical mission. Companies can contribute by donating resources, partnering on curated wellness bundles, or amplifying awareness for the initiative.

“We’re inspired by the innovation and generosity of the brands we’ve met here at CES,” said Dr. TK Huynh, Medical Innovator at AI Wellness. “Together, we can transform this tragedy into an opportunity to rebuild lives and strengthen our community.”

Join the SoCal Fire Relief Initiative

Support the SoCal Fire Relief Initiative by visiting aiwellness.ai or contacting AI Wellness directly:

Email: info@aiwellness.aiInstagram: @aiwellnesstv

About AI Wellness

AI Wellness is a pioneer in health, wellness, and philanthropy, combining cutting-edge AI technology with innovative solutions to address the most pressing challenges facing communities today. From digital avatars to precision education and curated wellness bundles, AI Wellness empowers individuals and brands to make a meaningful impact.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ai-wellness-launches-socal-fire-relief-initiative-to-support-families-and-first-responders-in-southern-california-302348576.html

SOURCE Assisted Intelligence Wellness, Inc.

Technology

2024-2025 Global Top Brands Award Ceremony Launched

Published

3 hours ago

January 12, 2025

LAS VEGAS, Jan. 11, 2025 /PRNewswire/ — The highly anticipated 2024-2025 Global Top Brands Award Ceremony and International Consumer Electronics Industry Leaders’ Summit were held on January 8, 2025 local time, at the Wynn & Encore Hotel in Las Vegas, USA. This ceremony gathered leading manufacturers, traders, and elites in the global consumer electronics industry to celebrate the triumphs of the world’s top consumer electronics brands.

With the theme of “AI Empowerment: Ushering in a New Era of Brand Upgrading”, the Global Top Brands Award Ceremony focuses on how AI is deeply integrating with the consumer electronics industry and continuously driving innovation, vitality, and competitiveness in industrial development. A number of distinguished guests were present at the event, including Stavros Anthony, Lieutenant Governor of Nevada; Kim Tae Heum, Governor of Chungcheongnam-do, South Korea; Adam Goldstein, Vice President of TWICE; Zhu Dongfang, President of Asia Digital Group; Zhang Li, Co-President of Asia Digital Group; and Jan Lorbach, Senior Director of Strategic Insights at GfK. Senior executives from influential companies such as Huawei, TCL, Haier, Changhong, TECNO, ECOVACS, VOLTME, XPENG Motors, and Segway-Ninebot were also in attendance. In addition, key representatives from Samsung joined the ceremony. Nearly one hundred media outlets, including CCTV, Phoenix TV, and Dragon TV, as well as senior journalists, were also present to cover the event.

Ceremony and Summit Open with a Focus on Pioneering Industry Development

The award ceremony was filled with excitement and star power, bringing together representatives of executives from leading global consumer electronics brands and industry experts, who witnessed the unveiling of multiple top awards. These accolades celebrated the outstanding achievements in the consumer electronics sector over the past year, and pointed the way toward industry trends. Furthermore, participants engaged in in-depth exchanges on cutting-edge issues, exploring new trends, opportunities, and challenges facing the industry. The ceremony was not only a moment of honor but also an important platform for driving the high-quality development of the global consumer electronics industry.

Founded by International Data Group in 2006, the Global Top Brands Awards (GTB for short) is a world-class selection event organized by Asia Digital Group and Europe Digital Group, and supported by TWICE and International Data Corporation(IDC for short), an authoritative market research and analysis firm. The GTB has evolved into a platform where the world’s top consumer electronics brands compete to highlight their innovations, aiming to present the charm of global consumer electronics to audiences worldwide, enhancing the popularity of major consumer electronics enterprises in the international market, and further promoting the development of the global consumer electronics industry. This GTB brought together top consumer electronics brands from around the world to show their latest products and cutting-edge technologies. It serves as a forward-thinking platform for exchanging ideas, offering industry professionals an in-depth look at the most innovative products and emerging trends shaping the future of the global consumer electronics landscape.

The event began with an address by Lieutenant Governor Stavros Anthony of Nevada. He highlighted that Nevada, often referred to as the “Silver State”, has long been a fertile land for the fusion of innovative technologies and industries, thanks to its open and inclusive spirit, leading technological atmosphere, and unparalleled business environment. He emphasized that the award ceremony recognizes Nevada’s strength in scientific and technological innovation, and serves as a powerful boost to their ongoing efforts to advance industry upgrades and promote international cooperation. Furthermore, he expressed strong optimism about the future of AI in the consumer electronics sector and reaffirmed that Nevada would continue to embrace an open and collaborative approach, offering top-tier services and support to all companies and brands participating in the GTB selection.

As one of the hosts, Asia Digital Group’s President Zhu Dongfang welcomed the guests attending the ceremony. He noted that, despite the complexities of the global economic environment, emerging technologies like AI are driving the steady development of the global consumer electronics industry, with the market expected to experience a new phase of robust growth. As a key player, China is transitioning from a “major manufacturer” to an “innovation powerhouse”. In 2024, the market turnover is projected to surpass 2.2 trillion yuan, with an accelerated shift toward smart, high-end, and environmentally friendly products. The international influence of Chinese consumer electronics brands has grown significantly, penetrating the mid-to-high-end markets. Against this backdrop, this GTB honors the exceptional achievements of the global consumer electronics industry and looks ahead to emerging trends, bringing together industry leaders to explore new opportunities for growth.

Adam Goldstein, Vice President of TWICE, also highlighted in his address that, as the leading consumer electronics publication in the U.S., TWICE has long been dedicated to providing valuable insights and guidance to consumer electronics suppliers and channel partners. It has established a robust information bridge between Chinese product suppliers and international buyers and retailers. He emphasized that the annual GTB selection holds tremendous significance, as it not only reflects the industry’s achievements over the past year but also offers a glimpse into the future direction of the industry. This year, especially, the rapid advancement of AI has undoubtedly injected fresh vitality into the sector, positioning itself as a pivotal force in reshaping industry development. The theme of this year’s GTB is “AI Empowerment: Ushering in a New Era of Brand Upgrading”, which perfectly encapsulates the current trends in the consumer electronics industry. It provides the industry with valuable insights into emerging opportunities to drive continuous innovation and sound development throughout the industry.

Governor Kim Tae Heum of Chungcheongnam-do, South Korea, noted that Chungcheongnam-do, one of South Korea’s major economic engines, is home to a population of 2.2 million and over 300,000 businesses, spanning industries from semiconductor manufacturing to agriculture. The government is vigorously promoting scientific and technological innovation and plans to invest nearly 8 billion US dollars in factory and facility development by 2026 to attract more domestic and international investment, particularly in high-tech sectors. He also shared that Chungcheongnam-do has signed memorandums of understanding with many companies to deepen cooperation in key areas such as semiconductor production to transform the region into a global sci-tech and industrial hub, positioning it as South Korea’s “Silicon Valley”.

The Industry’s Prestigious Awards Unveiled, Brand Excellence Recognized with Top Honors

During the event, highly recognized awards were presented, including the “CE Brands from China Top 10″ and the “Global CE Brands Top 50”, as well as a range of specialized accolades across various categories, such as the “Global TV Brands Top 10” and the “Global Smart Phone Brands Top 10”. These awards recognize the winners for their achievements in technological innovation and market expansion and affirm their leading positions within the global consumer electronics industry.

CE Brands from China Top 10

The list brings together the leading players in today’s rapidly evolving scientific and technological landscape, including TCL, Huawei, Haier, Midea, Lenovo, Xiaomi, Gree, and others. These companies are at the forefront of adopting cutting-edge technologies like AI and 5G, driving the smart and connected evolution of their products. With exceptional technical expertise, frontier innovative designs, and a deep understanding of consumer needs, they have built strong market competitiveness across a wide range of consumer electronics, including smartphones, wearables, headphones, laptops, and small home appliances. Not only do they hold a significant share in the domestic market, but they are also gaining recognition on the global stage, earning widespread acclaim from consumers worldwide, and playing a key role in the ongoing evolution of the industry.

TCL
TCL is a globally competitive intelligent technology industry group driven by the mission of “Leading Technology, Harmonious Coexistence”. It is committed to delivering forward-looking scientific and technological experience and promoting smart and healthy living. TCL has once again been recognized as one of the Global Top 50 CE Brands, reaffirming its exceptional strength as a top global consumer electronics brand. As an outstanding representative of Chinese brands, TCL also continues to hold a spot among the list of CE Brands from China Top 10. Its flagship product, the TCL Premium QD-Mini LED TV X11K, was awarded the Mini LED Display Technology Innovation Award, the TCL FreshIN Series Air Conditioner won the Smart Fresh Air Technology Innovation Award, and the TCL Super Drum Series Front Load Washing Machine received the Clean Technology Innovation Gold Award.

Founded in 1981, TCL operates 46 R&D centers and 38 manufacturing bases across the globe. With a presence in over 160 countries and regions, it serves more than 1.3 billion users worldwide. Over the course of more than 40 years of transformation, innovation, and strategic upgrades, TCL has restructured its business into two main entities, TCL Industries and TCL Technology. It is now focused on three core industries, smart terminals, semiconductor displays, and new energy photovoltaics. Its smart display terminals, LCD displays, and photovoltaic monocrystals and silicon wafers have all achieved global leadership in their respective fields.

TCL invested more than 60 billion yuan in R&D from 2018 to 2023. As of 2024, it has filed a total of 112,469 patents, including 18,567 PCT patents, placing it among the top companies in Chinese mainland. In the field of electroluminescent quantum dot displays, TCL holds 2,913 patents, ranking second globally.

Global CE Brands Top 50

Recognized as leaders in consumer electronics, Apple, Samsung, Microsoft, Qualcomm, Sony, Huawei, TCL, Lenovo, Changhong, and others on the list are showing the significant role of scientific and technological innovation in driving industry growth. These companies are staying ahead of the wave, continuously innovating to meet the increasingly diverse demands of consumers. Among them, Chinese companies have excelled in areas such as smart wearables. With the widespread adoption of emerging technologies like AI and 5G, these companies are actively exploring new applications to enhance product competitiveness. The global consumer electronics industry is poised for even greater growth and opportunity.

Global Smart Phone Brands Top 10

At the forefront of smartphone brands are Samsung, Apple, Xiaomi, Vivo, OPPO, Huawei, Honor, TECNO, Motorola, and realme on the list. Notably, Chinese brands occupy a prominent position and have gained global recognition through their sharp market insights and continuous innovation. Meanwhile, internationally renowned brands continue to perform strongly, strengthening their leadership through new product launches and channel reforms. This list reflects the current market landscape and hints at future trends, that is, only those brands that relentlessly innovate and meet consumer demands will rise to the top.

TECNO
In this GTB, the innovative tech brand TECNO was recognized as one of the Global Smart Phone Brands Top 10. The brand also won the Product Innovation Awards for two of its groundbreaking flagship products: the PHANTOM V Fold2 5G, the second-generation foldable smartphone featuring the full suite of TECNO’s AI capabilities, and the Pocket Go, the world’s first Windows handheld console paired with AR glasses, heralding a new era of AR gaming.

Global TV Brands Top 10

The list includes the industry’s leading brands, including TCL, Changhong, Samsung, Xiaomi, LG, Sony, Haier, and more. These brands are leading trends such as large-screen, ultra-high-definition, and smart TVs. They push the boundaries of picture quality and technology, and prioritize exceptional design and user experience. With superior product quality and relentless innovation, these brands have secured a prominent position in global market, offering consumers immersive viewing experience and new smart home possibilities. This shows the future direction of the television industry.

Global Intelligent Vehicles Brands Top 10

The automotive industry’s innovators, including Tesla, BYD, Volkswagen, Mercedes-Benz, Hengxing, BMW, Toyota, Geely, NIO, and XPENG Motors, are driving the transformation of smart mobility. With a focus on breakthrough technologies like autonomous driving and intelligent cockpits, these brands offer consumers greater convenience, comfort, and safety and are shaping the future of the industry through strategic partnerships to drive industrial upgrading. Their expertise and innovation make them key influencers in the global smart automotive market.

Global Smart Home Brands Top 10

Top industry brands gather in the list, including Amazon, Apple, Samsung, Haier, TOMEFON, CHiQ, Midea, Huawei, Mi Home, and ECOVACS. These companies are industry leaders, renowned for their robust R&D capabilities, exceptional product performance, and precise market positioning. Chinese brands have made a notable impact, with several ranking among the top. They have made significant contributions in areas such as safety, convenience, and smart technology, while consistently driving innovation and technological progress. These brands are widely recognized in the global market and provide consumers with diverse and personalized smart home solutions, shaping the industry’s future towards greater possibilities.

ECOVACS ROBOTICS
As a leader in the global service robotics industry, ECOVACS ROBOTICS has been recognized as one of the Global Smart Home Brands Top 10 for 2024-2025. Its robotic lawn mower, GOAT A2500 RTK, received the Robotic Lawn Mower Technology Innovation Award for its exceptional performance and innovative technology. Designed for diverse backyards with various sizes and layouts, the robot is equipped with a 32V energetic platform and two staggered blade-discs, delivering efficient and precise lawn care. Featuring LELS™ positioning technology, the robot enhances its accuracy in positioning and intelligent navigation, autonomously creating high-precision 3D maps. This allows for centimeter-level precision in both navigation and positioning, even in complex layouts or at night. Additionally, the GOAT A2500 RTK is equipped with a LiDAR-enhanced localization system, enabling it to precisely avoid obstacles and ensure smooth operation.

CHiQ
CHiQ’s smart home products provide users with a more convenient, efficient, intelligent, and personalized experience. The brand has earned a place in the Global Smart Home Brands Top 10 for 2024-2025. Since its founding in 2014, CHiQ has consistently innovated in response to consumer needs, earning widespread international recognition. It offers a broad range of products, including smart home appliances such as televisions, refrigerators, air conditioners, and washing machines. Its global footprint continues to expand, covering over 40 countries, including the EU, ASEAN, Australia, Latin America, the Middle East, Africa, and South Korea. It has formed partnerships with numerous international companies, secured key offline distribution channels, and established a presence on more than 30 major e-commerce platforms, including Amazon, Lazada, and Shopee.

International Innovation Award

International innovative brands are showcasing exceptional competitiveness in today’s consumer electronics and technology industry. Brands like YEEDI, Ampace, and TECNO are at the forefront across various sectors, including smartphones, home appliances, and IT office solutions, thanks to their strong R&D capabilities and deep market insights. These brands are driving the robust growth of the industry and meeting the diverse needs of consumers through technological innovation and high-quality services, positioning themselves as industry benchmarks. They will continue to embrace innovation, leading the consumer electronics sector towards a brighter and more promising future.

YEEDI
Amid the wave of smart technology, YEEDI stands out for its exceptional innovation and deep understanding of consumer needs. The YEEDI S14 Plus was awarded the Indoor Cleaning Technology Innovation Gold Award. As a pioneer in smart cleaning solutions, YEEDI remains at the forefront of science and technology, consistently launching groundbreaking products that deliver a more convenient and efficient cleaning experience for households worldwide. In the year of 2024, YEEDI has launched multiple innovative products, including the M12 PRO+ and C12 COMBO. The highly anticipated YEEDI S14 PLUS, set for release in 2025, has already generated considerable attention. It has earned widespread praise from consumers worldwide, with exclusive innovations such as the OZMO Roller Mopping Technology, TruEdge 2.0 Adaptive Edge Mopping Technology, ZeroTangle 2.0 Technology, and AIVI 3D 3.0 Technology.

Ampace
As a globally recognized leader and trusted choice in the field of new energy innovation, Ampace has earned the trust and praise of users worldwide through its exceptional innovation, strong technical expertise, keen market insights, and relentless commitment to quality. With a market share exceeding 30% in the global residential energy storage sector, it has proven its formidable competitive strength and set a benchmark for innovation, reliability, and outstanding performance, honored with the International Innovation Award. The Ampace Andes 1500 Portable Power Station was awarded the Portable Energy Storage Technology Innovation Award. Ampace places technological innovation at the heart of its mission, continually pushing the boundaries and driving industry progress. The Ampace Andes Portable Power Station showcases this trusted energy technology, offering reliable, stable, safe, and high-capacity power support to outdoor adventurers, professionals, and families alike. Looking to the future, we look forward to Ampace continuing its legacy of innovation and making even greater contributions to the sustainable development of society.

Global Emerging Brands

The global emerging brand VOLTME has quickly made a name for itself in the consumer electronics and technology industry, driven by its innovation and competitiveness. Focused on technological innovation and keenly attuned to consumer needs, it has continuously improved its value for money. With exceptional offerings in areas such as smartphones, smart wearables, IT office solutions, and home appliances, VOLTME has gained significant market recognition. The rise of such dynamic brands is revitalizing the industry, guiding the consumer electronics sector towards greater heights and a promising future.

VOLTME
VOLTME, the flagship brand of Voltnex Innovations and a global leader in power solutions, has been awarded the Global Emerging Brands. Its latest offering, the VOLTME Revo 240 PD3.1 GaN Charger is the perfect solution for fast and safe charging of laptops, tablets, and smartphones. The Hako Series portable power stations combine high-capacity battery performance with intelligent power management, meeting a wide range of power needs. These stations provide reliable portable power support for consumers, underscoring VOLTME’s excellence in innovation, design, and technology.

Representatives of award-winning brands took the stage to deliver their acceptance speeches, and share insights into their success and future growth strategies. They expressed a commitment to further enhancing technological innovation and market expansion so as to deliver even more high-quality products and services to global consumers.

International Consumer Electronics Industry Leaders’ Summit Explores AI’s Role in Shaping Industry’s Future

The International Consumer Electronics Industry Leaders’ Summit was held concurrently. Industry experts and company representatives from around the world gathered to engage in in-depth discussions on the theme of “AI Reshaping Industrial Development”. Key topics included how the consumer electronics industry can integrate with smart technologies, how companies can build core competencies, and ways to strengthen competitive advantages. Participants shared the latest advancements and technological trends, offering valuable guidance for the development of the global consumer electronics sector.

Ines Haaga, Director of Global Strategic Insights at GfK, delivered a keynote speech titled “Navigating Tech and Durables Markets: How Consumer Preferences and Innovation Shape Tomorrow’s Success”. She emphasized that the consumer electronics industry is undergoing a transformation driven by consumers, with the modest growth of the fast-moving consumer goods market and the fragmentation of the tech and durable goods markets highlighting the critical role of consumer preferences. Besides, innovation has emerged as the new engine for market growth, with the integration of AI technologies fueling significant momentum. Looking ahead, the deep convergence of consumer preferences and innovation will shape a broader and more prosperous future for the tech and durable goods sectors.

In the following International Consumer Electronics Industry Leaders’ Summit, Zhang Li, Co-President of Asia Digital Group, moderated a panel discussion on “AI Reshaping Industrial Development”. Together with domestic and international guests, she led an in-depth discussion on the impact of AI on the consumer electronics industry, drawing on insights from their respective fields.

Wang Tan, Co-founder and Vice President of XPENG AEROHT, and General Manager of XPENG Motors’ Design Center, shared XPENG’s innovative applications of AI, particularly the launch of cutting-edge products such as the Land Aircraft Carrier (LAC). These products showcase the vast potential of AI in driving transformation within the automotive industry. He emphasized that AI will play a crucial role in enabling a more intelligent and personalized future for the automotive sector.

Calvin Chen, CTO and President of Segway Navimow at Segway-Ninebot, elaborated on the profound impact of AI on the consumer electronics industry from a technological R&D perspective. He noted that the application of AI elevates the intelligence of products and drives comprehensive upgrades in areas such as R&D, design, and manufacturing, injecting powerful momentum into the innovative development of the industry.

Grant Morgan, Senior Editor at TWICE, shared his analysis of the consumer electronics industry. He pointed out that while consumers’ acceptance of AI has not yet reached full saturation, AI has already demonstrated its powerful enabling potential across various sectors. Guiding consumers to recognize the value and potential of AI through innovative technologies and products will be crucial in driving the industry’s growth.

Jan Lorbach, Senior Director of Strategic Insights at GfK, provided unique perspectives on the consumer electronics industry, focusing on global market trends and consumer research. He noted that, in light of consumers’ shrinking budgets for electronic products and their increasing demand for value, companies need to become more agile in identifying market pain points. By harnessing AI technology, they can fuel product innovation and functional upgrades to meet the diverse needs of consumers. He emphasized that AI will not only profoundly reshape the form and functionality of consumer electronics but also steer the entire industry toward higher quality and greater efficiency.

The summit also provided attendees with a unique opportunity to engage in direct exchange with executives from the world’s leading brands. This allowed participants to gain valuable insights into the success stories and strategic thinking of these top international brands, while promoting mutual learning and resource sharing among companies.

Setting New Trends in Industry Development, Ushering in a New Era for Consumer Electronics

Beyond being a magnificent award ceremony and leaders’ exchange, the 2024-2025 Global Top Brands Award Ceremony and International Consumer Electronics Industry Leaders’ Summit play a vital role in setting new directions for the global consumer electronics industry. It not only highlights the latest achievements and emerging trends but also injects vitality into the industry’s future growth and provides clear direction for its development.

We are delighted to witness an increasing number of consumer electronics brands placing a stronger emphasis on technological innovation and brand development, continually introducing new products to meet the growing demand for personalized experiences. Today, the consumer electronics industry is driving global economic growth and transformation at an unprecedented pace. Brands with innovative vision and exceptional capabilities are poised to emerge as leaders, guiding the industry toward an even more brilliant future. As it celebrates its 20th anniversary in 2026, the GTB, as a flagship event for the consumer electronics sector, will remain a key force in guiding and accelerating the industry’s progress, fostering collaboration and exchange in scientific and technological innovation, and accelerating the transformation of these advancements into tangible productivity.

View original content:https://www.prnewswire.com/news-releases/2024-2025-global-top-brands-award-ceremony-launched-302348572.html

SOURCE Asia Digital Group

Technology

Digital Transformation Market in Oil & Gas to Grow by USD 56.4 Billion from 2025-2029, Driven by Investments, Partnerships, and AI-Powered Market Evolution – Technavio

Published

5 hours ago

January 11, 2025

NEW YORK, Jan. 11, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global digital transformation market in oil and gas industry size is estimated to grow by USD 56.4 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 14.5% during the forecast period. Rise in investments and partnerships is driving market growth, with a trend towards use of digital twin technology. However, lack of skilled labor poses a challenge. Key market players include Accenture PLC, Amazon.com Inc., AVEVA Group Plc, Emerson Electric Co., General Electric Co., Halliburton Co., Informatica Inc., Intel Corp., International Business Machines Corp., Microsoft Corp, NVIDIA Corp., Oracle Corp, Rockwell Automation Inc., SAP SE, Siemens AG, Sierra Wireless Inc., Tata Consultancy Services Ltd., Teradata Corp., and TIBCO Software Inc..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Digital Transformation Market In Oil And Gas Industry Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 14.5%

Market growth 2025-2029

USD 56.4 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

12.7

Regional analysis

APAC, North America, Middle East and Africa, Europe, and South America

Performing market contribution

APAC at 31%

Key countries

US, China, Saudi Arabia, Russia, India, Japan, Canada, UK, Germany, and UAE

Key companies profiled

Accenture PLC, Amazon.com Inc., AVEVA Group Plc, Emerson Electric Co., General Electric Co., Halliburton Co., Informatica Inc., Intel Corp., International Business Machines Corp., Microsoft Corp, NVIDIA Corp., Oracle Corp, Rockwell Automation Inc., SAP SE, Siemens AG, Sierra Wireless Inc., Tata Consultancy Services Ltd., Teradata Corp., and TIBCO Software Inc.

Market Driver

In the Oil and Gas industry, Digital Transformation is a game-changer. Upstream, Midstream, and Downstream sectors are embracing trends like Big Data, Cloud Computing, IoT, AI, and Digital Twins to monitor critical assets and facilities. Big Data helps analyze Exploration prospects using Geoscience platforms. Cloud Computing and AI-based simulation optimize Refining processes, improving manufacturing efficiency and asset utilization. IoT sensors monitor equipment in real-time, enabling Predictive Maintenance and reducing downtime. AI and Computer Vision detect anomalies, preventing Fires and enhancing Safety. Extended Reality solutions train workers, improving Risk management and enhancing Safety. Crude oil demand and Refinery throughput are optimized using AI-based tools. Midstream and Downstream operations, including Gas Stations and Petrochemicals, benefit from Automation solutions and Turnaround planning tools. Application Performance Management ensures smooth Digitalization, while Prescriptive Maintenance minimizes downtime. Sensor systems and AI-driven solutions automate Industrial Control Systems, enhancing Automation and Optimization across Energy industries. Preventive Maintenance and Predictive analytics minimize downtime, ensuring high-performing Refineries and Petrochemical plants.

The oil and gas industry is embracing digital transformation by integrating technologies like the digital twin to optimize energy production. A digital twin is a virtual representation of physical assets, allowing companies to compare actual and ideal conditions for enhanced safety and innovation. This technology provides disparate views of sub-surface and surface systems, enabling more efficient and cost-effective oil and gas production. By adopting digital twin technology, oil and gas companies can improve operational efficiency and foster continuous learning and innovation.

Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!

Market Challenges

• In the Oil and Gas Industry, Digital Transformation brings new opportunities for Upstream, Midstream, and Downstream sectors. Challenges like Big Data, Cloud Computing, IoT, AI, and Industrial Control Systems require modern solutions. Extended Reality (XR) solutions help monitor critical assets and facilities, enhancing safety and risk management. Field devices and exploration prospects benefit from Data Science and Geoscience platforms. Downstream operations, including Petrochemicals, Refining, and Gas Stations, can optimize asset utilization and manufacturing efficiency with Automation, AI-based simulation, and Prescriptive Maintenance. Preventive maintenance is crucial for equipment, reducing fires and improving turnaround planning. Computer Vision and Sensor Systems ensure refinery process efficiency and predictive analytics help manage crude oil demand, High Speed Diesel, and Refinery throughput. Digitalization drives innovation, improving safety, risk management, and operational excellence in Energy Industries.

• Oil and gas producers are adopting advanced technologies, such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT) solutions, and big data analytics, to enhance their investment returns. Big data is gaining popularity due to the growing awareness of data-driven solutions. However, converting vast datasets into valuable insights necessitates both technology and analytics expertise. Identifying relevant data for storage and processing is a significant challenge for professionals. Analyzing unstructured data requires additional effort. Real-time big data analytics and cloud-based software solutions offer oil and gas companies innovative opportunities to optimize oil production processes, minimize costs and risks, ensure regulatory compliance, enhance safety, and make informed decisions.

Discover how AI is revolutionizing market trends- Get your access now!

Segment Overview

This digital transformation market in oil and gas industry report extensively covers market segmentation by

Technology 1.1 IoT1.2 E and P software1.3 Big data1.4 Cloud computing1.5 OthersSector 2.1 Downstream2.2 Upstream2.3 MidstreamGeography 3.1 APAC3.2 North America3.3 Middle East and Africa3.4 Europe3.5 South America

1.1 IoT- The oil and gas industry faces economic pressure due to disparities in demand and supply, as well as volatile global energy prices. To address these challenges, companies are focusing on enhancing and extending the value of their existing assets while seeking new reserves. The implementation of Internet of Things (IoT) technology is a key strategy for transformation. In the upstream segment, IoT reduces non-productive time by enabling predictive maintenance for crucial equipment. In the midstream segment, IoT monitors pipelines for leaks and emissions, enhancing safety and reducing penalties. In the downstream segment, real-time data analysis enables distributors to predict consumer consumption, optimizing distribution. IoT is projected to increase crude output by 10-12% and profits by USD1 billion for large companies, while contributing USD816 billion to global GDP. By deploying IoT across the value chain, oil and gas organizations can make better decisions, create a safer working environment, and enhance operations.

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Research Analysis

The Oil and Gas industry is undergoing a digital transformation, leveraging technologies such as Big Data, Cloud Computing, Internet of Things (IoT), Artificial Intelligence (AI), and Industrial Control Systems to optimize operations and enhance productivity. Upstream, midstream, and downstream sectors are adopting digital twins to monitor critical assets and improve exploration prospects through geoscience platforms. Extended reality solutions enable remote collaboration and training in hazardous environments. Field devices are being connected to collect real-time data for predictive maintenance and preventive measures against fires. Computer Vision is used to monitor equipment performance and automation is being driven by AI-based simulation. Digitalization is revolutionizing energy industries, from gas stations to petrochemicals, by providing real-time insights and improving operational efficiency.

Market Research Overview

The Oil and Gas Industry is undergoing a digital transformation, leveraging technologies such as Big Data, Cloud Computing, Internet of Things (IoT), Artificial Intelligence (AI), Industrial Control Systems, Extended Reality (XR), and Field Devices to optimize operations and enhance productivity. Upstream, Midstream, and Downstream sectors are embracing digitalization, with a focus on monitoring critical assets, workers, and facilities in real-time. XR solutions provide training for workers, while data science and geoscience platforms help explore new prospects and enhance exploration and production. In the Midstream and Downstream sectors, digitalization leads to improved asset utilization, manufacturing efficiency, and automation. AI-based simulation and predictive analytics optimize refining processes, while sensor systems and prescriptive maintenance minimize risks and ensure safety. Crude oil demand, High Speed Diesel, refinery throughput, and petrochemical and refining industries also benefit from digital transformation, with turnaround planning tools, application performance management, and AI-based solutions streamlining operations.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TechnologyIoTE And P SoftwareBig DataCloud ComputingOthersSectorDownstreamUpstreamMidstreamGeographyAPACNorth AmericaMiddle East And AfricaEuropeSouth America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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