Jia Nan submits the prospectus to the SEC: from the mining giant to the leader of the AI ​​chip

Source: IPO knows early (ID: ipozaozhidao)

Author: C t

According to the IPO, the company’s leading high-performance computing chip company, Jianan Canaan, officially submitted the F-1 prospectus to the US Securities and Exchange Commission (SEC) on October 28, which means it will It became the first “blockchain giant” to officially complete the IPO to the US, and the company will become the first successful Chinese self-developed artificial intelligence chip company in the US IPO.

According to the prospectus, Jianan’s revenue in 2018 was 2,705.3 million yuan, and the listing plan did not raise more than 400 million US dollars. Credit Suisse, Citigroup, Huaxing and CMB International acted as joint underwriters of the IPO.

According to the prospectus, Jia Nan Chairman and CEO Zhang Nanxuan and his team invented and delivered the first cryptocurrency mining machines using ASIC technology as early as January 2013, which will further develop the research and development of AI chips. Laid a solid foundation.

In 2016, Zhang Nanxuan and his team began to experiment with the development of artificial intelligence ASICs. In September 2018, the first generation of AI chips, the KIT K210, was officially launched, which made it the first commercial RISC-V-based commercial in the industry. Edge AI chip company.

It is worth noting that Jia Nan emphasized in the prospectus that the company's core R&D team worked with the founding team for more than four years. As of June 30, 2019, Jia Nan's R&D team consisted of 127 people with an average of 7 years of industry experience.

The high-tech capabilities and stability of the founding team and the R&D team also brought considerable development results. As of June 30, 2019, Jia Nan had registered 59 patents in China, including two invention patents, 46 utility model patents and 11 design patents. As of the same day, the company also registered 70 software copyrights and 30 IC layout design rights in China.

Jia Nan said that it has mastered the entire IC design process. The self-designed IC is manufactured, packaged and tested by well-known suppliers including TSMC, STATS ChipPac, ASE and SPIL. TSMC is the world's largest. Chip foundry, SPIL is one of the world's largest providers of IC packaging and test services.

Specifically, since June 2015, Jia Nan has completed seven flow-through products for 28nm, 16nm and 7nm ASICs with a success rate of 100% .

In 2017, in the six months of 2018 and June 30, 2019, Jia Nan produced more than 130 million ASICs and continued to achieve new technologies in low voltage, energy efficient operation and high computational density. Breakthrough to improve the performance of ASICs.

Based on the aforementioned large and stable mass production capacity and process parameters, Jia Nan also successfully realized the commercial realization of ASIC design in the blockchain application, thereby further promoting the subsequent strategic plan, including providing AI chips, algorithm development and optimization, A variety of AI solutions for hardware modules, end products and software services.

The prospectus quoted Frost & Sullivan's forecast that by the end of 2023, the global artificial intelligence chip market will rise from 34.4 billion yuan in 2018 to about 221.6 billion yuan, a compound annual growth rate of 45.1%. Among them, the ASIC in the processing chip market is expected to achieve the fastest growth with a compound annual growth rate of 15.8%, from $31.7 billion in 2018 to $66.1 billion in 2023. This also means that the development of AI technology, especially edge computing, will bring more and more imaginative development space to Jianan.

Of course, on the other hand, the price of Bitcoin will in fact directly affect the market demand and price of Bitcoin mining machines. The overall price of Bitcoin fell sharply in 2018. Bitcoin prices remained relatively low by the end of the first quarter of 2019, and bitcoin prices have rebounded to some extent since the second quarter of 2019.

According to Frost & Sullivan, the calculations sold in the six months ended June 30, 2019, based on the total selling power, Jianan is the second largest manufacturer of bitcoin mining machines in the world; in the same period, the bitcoin sold by Jianan The mining machine accounts for 21.9% of the total power of all bitcoin mining machines sold worldwide .

From the above data, it is not difficult to find that in the context of the industry's overall downward trend, Jianan's total sales and overall income remained at a high level.

In addition, the characteristics of the bitcoin industry, that is, the mining machine is a futures product, the second half of the year and even the end of the year is the time of explosive growth, so Jianan also expects the company's overall operational data will be based on the above factors, in Q3 and Q4 There is a clear improvement .

On the afternoon of October 24th, the state conducted the 18th collective study on the status quo and trends of blockchain technology development. The state emphasizes that the integrated application of blockchain technology plays an important role in new technological innovation and industrial transformation. It is necessary to use blockchain as an important breakthrough for independent innovation of core technologies, clarify the main direction of attack, increase investment, and strive to overcome one. Accelerate the development of blockchain technology and industrial innovation by approving key core technologies .

This means that the blockchain technology has officially become a national-level industry, and the central government attaches great importance to independent innovation in the entire scientific and technological field.

Since the Xinhua News Agency released the news, the blockchain concept stocks in the capital markets such as US stocks, Hong Kong stocks and A-shares have been hailed by capital.

As the world's second largest mining machine manufacturer, once successfully listed, Jianan Canaan will become the "global blockchain first share" in the true sense , which will lead the Chinese blockchain industry to occupy the commanding heights of the industry and gain new industrial advantages.

Jia Nan also disclosed the next growth strategy in the prospectus. The most important thing is still the research and development of IC and AI chips. It is initially planned to start mass production of the second generation of 28nm AI chips in the first quarter of 2020, and under 2020. The third-generation AI chip using 12nm process technology will be launched in half a year, and it is hoped that this will make the company's bitcoin mining business and AI chip business more balanced.

It is worth mentioning that Jianan also hopes to use the AI ​​chip as the core hardware to create an AI SaaS platform to provide end users with integrated artificial intelligence services integrating hardware, algorithms and software to create a complete and open ecosystem. The implementation of this platform will simplify the development process of the AI ​​solution, ensure a better experience for the end customer, and second, bring a stable income stream to the company.

In addition, Jianan will further expand its overseas business. It plans to set up overseas offices in Singapore, Japan, the United States and Israel, expand its R&D and sales teams, and seek overseas strategic investment opportunities.

It is undeniable that with the injection of more capital, the rapid development of 5G technology, the increase of application scenarios, and the support of government policies, the field of artificial intelligence has become the most concerned and fastest growing vertical industry in recent years. Nature also breeds huge market potential and opportunities.

According to the prospectus, Jia Nan is developing the second generation 28nm AI chip Kanji K510. Compared with the previous generation of products, the Kanji K510 is developed for 5G scenes, and greatly enhances computing power and energy efficiency, and will be used for exploration of new scenes such as smart retail and smart driving. Mass production of the second generation chips is expected to begin in the first quarter of 2020. In addition, the company plans to introduce third-generation 12nm AI chips in the second half of 2020, which is expected to be applicable to edge and cloud computing.

If Jianan can continue to make breakthroughs in the research and development and application of AI technology, it is very likely that it will lead to great progress in all aspects of the entire company, regardless of brand awareness, industry status, business data, revenue sources, etc. The overall performance of the company in the secondary market.