Canaan Inc. Files 20-F Annual Report for Fiscal Year 2023

TL;DR

<b>Canaan Inc. has submitted its 20-F annual report for FY2023, detailing financial information and business operations.</b>

AI Summary

Canaan Inc. (CAN) filed a Foreign Annual Report (20-F) with the SEC on April 17, 2024. Canaan Inc. filed its 20-F annual report for the fiscal year ending December 31, 2023. The filing includes information related to the company's business address in Beijing, China. The report pertains to the 'SEMICONDUCTORS & RELATED DEVICES' industry, SIC code 3674. Key dates mentioned include May 3, 2021, for common stock issuance and various dates in 2021 and 2022 related to share repurchase programs and equity incentive plans. The filing references specific accounting standards and measurement inputs for financial reporting.

Why It Matters

For investors and stakeholders tracking Canaan Inc., this filing contains several important signals. This 20-F filing provides a comprehensive overview of Canaan Inc.'s financial performance and business activities for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed disclosures within the 20-F are essential for regulatory compliance and for providing transparency to international investors regarding the company's operations, risks, and financial position.

Risk Assessment

Risk Level: medium — Canaan Inc. shows moderate risk based on this filing. The filing is a standard annual report (20-F), which typically contains a broad range of information. Specific financial performance data or significant business changes are not detailed in the provided header information, necessitating a deeper review of the full document for a precise risk assessment.

Analyst Insight

Review the full 20-F filing to understand Canaan Inc.'s financial performance, operational risks, and strategic initiatives for fiscal year 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-17 — Filing Date (Filed as of date)
• 3674 — SIC Code (Standard Industrial Classification)
• 001-39127 — SEC File Number (SEC file number for Canaan Inc.)

Key Players & Entities

• Canaan Inc. (company) — Filer of the 20-F report
• Beijing (location) — Business address city
• SEMICONDUCTORS & RELATED DEVICES (industry) — Standard Industrial Classification
• 3674 (industry_code) — Standard Industrial Classification code
• 2023-12-31 (date) — Conformed period of report
• 2024-04-17 (date) — Filed as of date

FAQ

Industry Context

Canaan Inc. operates in the semiconductors industry, specifically focusing on the design and manufacturing of semiconductor devices.

Regulatory Implications

The filing is a Form 20-F, which is an annual report required by the U.S. Securities and Exchange Commission (SEC) for foreign private issuers.

What Investors Should Do

1. Thoroughly review the full 20-F document for detailed financial statements, management discussion and analysis, and risk factors.
2. Analyze the company's performance in the semiconductor industry based on the disclosures in the 20-F.
3. Compare Canaan Inc.'s reported figures and disclosures with previous filings and industry peers.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 20-F filing
• 2024-04-17: Filing Date — Date the 20-F report was officially filed with the SEC

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.00000005 — Class A ordinary shares, par value US$0.00000005 per share* NASDAQ Global Market. *
• $ — are to the legal currency of China; "US$," "U.S. dollars," or "dollars" are to t

Filing Documents

• can-20231231x20f.htm (20-F) — 3578KB
• can-20231231xex8d1.htm (EX-8.1) — 9KB
• can-20231231xex12d1.htm (EX-12.1) — 11KB
• can-20231231xex12d2.htm (EX-12.2) — 11KB
• can-20231231xex13d1.htm (EX-13.1) — 4KB
• can-20231231xex13d2.htm (EX-13.2) — 4KB
• can-20231231xex15d1.htm (EX-15.1) — 8KB
• can-20231231xex15d2.htm (EX-15.2) — 2KB
• can-20231231xex97d1.htm (EX-97.1) — 25KB
• can-20231231xex15d1001.jpg (GRAPHIC) — 11KB
• can-20231231x20f002.jpg (GRAPHIC) — 31KB
• 0001104659-24-048300.txt (&nbsp;) — 13871KB
• can-20231231_def.xml (EX-101.DEF) — 404KB
• can-20231231_lab.xml (EX-101.LAB) — 725KB
• can-20231231_pre.xml (EX-101.PRE) — 681KB
• can-20231231.xsd (EX-101.SCH) — 96KB
• can-20231231_cal.xml (EX-101.CAL) — 91KB
• can-20231231x20f_htm.xml (XML) — 2329KB

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 109 ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 110 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 112 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 112 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 112 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 113 ITEM 16B. CODE OF ETHICS 113 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 113 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 114 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 114 ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT 115 ITEM 16G. CORPORATE GOVERNANCE 115 ITEM 16H. MINE SAFETY DISCLOSURE 115 ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 115 ITEM 16J. INSIDER TRADING POLICIES 115 ITEM 16K. CYBERSECURITY 116 PART II 117 ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 117 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 117 ITEM 19. EXHIBITS 117 i Table of Contents Conventions that Apply to this Annual Report on Form 20-F In this annual report, unless otherwise indicated: "ADRs" are to American depositary receipts, which, if issued, evidence the ADSs; "ADSs" are to the American depositary shares, each of which represents 15 of our Class A ordinary shares; "China" and the "PRC" are to the People's Republic of China, excluding, for the purposes of this annual report only, Taiwan, the Hong Kong Special Administrative Region and the Macao Special Administrative Region; "Series A Convertible Preferred Shares" are to our series A convertible preferred shares, par value $0.00000005 per share; "PRC subsidiaries" are to, for the purpose of this annual report, Hangzhou Canaan Intelligence Information Technology Co., Ltd., Canaan Creative Co., Ltd., Langfang Creative Technology Co., Ltd., Canaan Convey Co., Ltd., Zhejiang Avalon Technology Co., Ltd., Canaan Bright Sight Co., Ltd., and Canaan Creative (SH) Co., Ltd, Hangzhou Ruihong Technology Co., Ltd., Hangzhou Canaan Chuangxin Technology Co., Ltd., and Hangzhou Canaan Blockchain Technology Co., Ltd. "operating subsidiaries" are to, for the purpose of this annual report, Hangzhou Canaan Intelligence Information Technology Co., Ltd., Canaan Creative Co., Ltd., Langfang Creative Technology Co., Ltd., Canaan Convey Co., Ltd., Zhejiang Avalon Technology Co., Ltd., Canaan Bright Sight Co., Ltd., and Canaan Creative (SH) Co., Ltd., Canaan Creative (HK) Holdings Limited, Canaan Creative International PTE. Ltd., Canaan Creative Global Pte. Ltd., and Canaan U.S. Inc. "RMB" or "Renminbi" are to the legal currency of China; "US$," "U.S. dollars," or "dollars" are to the legal currency of the United States; and "we," "us," "our company," "the Company," "our" and "Canaan" are to Canaan Inc. and its subsidiaries, as the context requires. Starting from January 1, 2023, we changed our reporting currency from Renm

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not required.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not required.

KEY INFORMATION

ITEM 3. KEY INFORMATION We are a Cayman Islands holding company and conduct all of our operations through our operating subsidiaries. Investors in the ADSs are not purchasing equity securities of our operating subsidiaries but instead are purchasing equity securities of a Cayman Islands holding company. We face various legal and operational risks and uncertainties associated with having a portion of our operations in China and the complex and evolving PRC laws and regulations. For example, we face risks associated with regulatory approvals on offerings conducted overseas and foreign investment in issuers with a certain level of China-based operations, anti-monopoly regulatory actions, regulatory actions for virtual currency-related business activities and mining activities and oversight on cybersecurity and data privacy, which may negatively impact our ability to conduct certain businesses, access foreign investments, or list on foreign stock exchange. These risks could result in a material adverse change in our operations and the value of our ADSs, limit or hinder our ability to offer or continue to offer securities to investors, or cause the value of such securities to significantly decline or become worthless. For a detailed description of risks relating to doing business in China, see "—D. Risk Factors—Risks Relating to Doing Business in the PRC." Our auditor, KPMG Huazhen LLP is independent registered public accounting firms that issue the audit reports included elsewhere in this annual report. Our securities will be prohibited from trading on a national securities exchange or in the over-the-counter trading market in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if the Securities and Exchange Commission determines that Canaan has have filed audit reports issued by a registered public accounting firm that has not been subject to inspections by the PCAOB for two consecutive years. On December 16, 2021, the PCAOB issued a

View Full Filing

View this 20-F filing on SEC EDGAR