Canaan Inc., a Cayman Islands-based foreign private issuer, has submitted a letter to the U.S. Securities and Exchange Commission (SEC) on October 16, 2024, addressing comments from the SEC's Division of Corporation Finance regarding its Form 20-F for the fiscal year ended December 31, 2023. The SEC's comments focused on Canaan's disclosures about the risks of doing business in China, specifically the potential for government intervention in operations and the evolving regulatory environment. Canaan has proposed revisions to its risk disclosures, which include acknowledging the legal and operational risks of its China-based operations, the potential for material adverse changes due to regulatory actions, and the uncertainties of the PRC legal system. The company's response includes proposed changes...Show More

Canaan Inc., a Cayman Islands-based foreign private issuer, has submitted a letter to the U.S. Securities and Exchange Commission (SEC) on October 16, 2024, addressing comments from the SEC's Division of Corporation Finance regarding its Form 20-F for the fiscal year ended December 31, 2023. The SEC's comments focused on Canaan's disclosures about the risks of doing business in China, specifically the potential for government intervention in operations and the evolving regulatory environment. Canaan has proposed revisions to its risk disclosures, which include acknowledging the legal and operational risks of its China-based operations, the potential for material adverse changes due to regulatory actions, and the uncertainties of the PRC legal system. The company's response includes proposed changes to its future Form 20-F filings, with detailed descriptions of the risks related to doing business in China. Canaan's operations in China are subject to PRC laws and regulations, and the company has indicated that PRC governmental authorities have significant oversight and discretion over its business, which could materially affect operations and the value of its American Depositary Shares (ADSs).