The first strand of the blockchain: Jia Nan Zhi Zhi turned gorgeous on Nasdaq
Yesterday evening, a light show video of the entire riverside of Hangzhou Riverside screened the circle of friends. In order to celebrate the listing of the world's second-largest bitcoin miner, Kanna Nan, on Nasdaq on November 21st, Hangzhou has produced a huge light show along the coast, and BTC Bitcoin was publicly unveiled for the first time.
Early in the morning, Shao Jianliang, general manager of the block chain business unit of Jianan Zhizhi District, responded on Weibo that the 30-second video witnessed the birth of a new species in the blockchain industry. The birth of a listed company represents the maturity of an industry. The efforts of Jianan Technology for more than 6 years have finally ushered in the moment of high light, and witnessed in New York tomorrow.
According to previous media reports, on November 13th, US Eastern Time, Jianan Technology submitted a supplementary document No. 2 (AMENDMENT NO. 2 TO FORM F-1) to the US Securities and Exchange Commission (SEC), confirming that 10 million shares will be issued. ADS, which is priced at $9-11 per share, raises between $90 million and $110 million.
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This is not the first time Jianan Zhizhi has hit the capital market. The product is single, the customer is unstable, the ability to continue to operate is poor, in the face of the market downturn and the high cost of electricity, the transformation is not a successful one. In the past three years, Jianan Zhizhi has repeatedly listed on major exchanges. To try to save yourself.
A shares, new three boards, Hong Kong stocks, US stocks…
In 2016, Jia Nan Zhizhi first tried to “borrow” Lu Yitong to land in the A-share market. However, many doubts caused Lu Yitong to abandon the transaction application. In August 2017, Jia Nan Zhizhi once again sought to be listed on the New Third Board. One month later, the trend of the September 4th attack struck. The pressure of supervision and the panic in the industry made Jia Nan Zhizhi announce the initiative to give up the listing. By May 2018, Jia Nan Zhizhi began to submit a prospectus to the Hong Kong Stock Exchange, but there was no accident. After six months, its listing plan was finally announced.
Three times of self-help failed, the road to listing was struggling.
On October 28, 2019, Jia Nan Zhizhi submitted the IPO prospectus to the US SEC again. This attempt finally did not disappoint Jia Nan. On the banks of Hangzhou, the lights on the banks of the river will be on the Nasdaq Stock Exchange on November 21st. The stock code is “CAN”. This company, which was established in 2013 and started to impact the capital market in 2016, finally ran. To the new starting point of dreams.
First, yes, why is Jia Nan Zhi Zhi?
Listing is a daydream for blockchain people.
Jia Nan is not the only mining machine manufacturer to try to go public. In 2018, Bitian Continental, Jianan Zhizhi, and Yibang International expressed their willingness to list in the same place. They submitted their prospectus to the Hong Kong Stock Exchange. Although the three IPOs went to Hong Kong to fail, but in terms of computing power, Bit China The market share of Jianan Zhizhi and Yibang International respectively ranks first, second and third in the world.
According to the prospectus submitted by Jia Nan to the SEC, in the first three quarters of this year, the total revenue of Jianan Zhizhi was about 960 million yuan, which was 60.5% lower than the total income of 2.43 billion yuan in the first three quarters of 2018; the net profit was about – 2.4 billion yuan, down nearly -260% from the net profit of 150 million yuan in the first three quarters of 2018.
The data showed a significant decline compared to 2018, and Jianan’s net profit was even at a loss. Compared with the 2018-bit mainland prospectus, it shows that as of June 30, 2018, Bitland's total revenue reached 2.845 billion US dollars, gross profit reached 1.03 billion US dollars, and net profit was 743 million US dollars.
From this point of view, whether it is from computing power or revenue, Jia Nan’s achievements are far less than those of Bitian. So, what is the reason for Jianan Zhizhi to eventually catch up with the mainland and become the “first share” of the blockchain that has successfully listed in the US?
US stock market entry threshold is lower
After the traversal failure, Jia Nan Zhizhi has been doing this daydream.
The US stock IPO has broken down.
After the failure of the A-share, the New Third Board and the listing in Hong Kong, Jia Nan Zhi Zhi turned his attention to the US stock market.
Since 2018, under the influence of the strict IPO review and the sharp decline in the IPO meeting rate, the number of listed companies in China has only 106 in 2018. In contrast, the number of overseas listed Chinese companies has increased in recent years. The total number is about 126, which is only lower than the number of overseas listings in 2010, and the number of domestic listings is exceeded.
As of the end of 2018, 48 Chinese companies have chosen to go public in the US, of which 38 have passed IPO and 6 have passed SPAC (special purpose company mergers, including 4 SPACIPO and 2 SPAC mergers). The pass rate is very high.
This is because, compared to the listing of A shares and Hong Kong stocks, the threshold for listing in the US is lower.
From the perspective of the system, the United States adopts a registration and filing system. As long as the information is submitted in accordance with the requirements of the SEC, the application for filing can be listed, and no one is involved in the intervention. In addition, the US capital market has the characteristics of legal transparency, flexible securities regulations, and loose listing system. Enterprises can successfully issue stocks or bond financing even if they are not profitable. This is also why Jianan Zhizhi’s revenue is still in a state of loss and can still be successfully listed.
Secondly, in 2017, in order to activate the US IPO market, under the leadership of Securities Commission Chairman Jay Clayton, the policy of secretly submitting IPO documents was relaxed to all companies preparing to go public.
Jia Nan Zhi Zhi is right!
For the listed company, the benefits of secretly submitting the first prospectus are:
1. Simply submit the audited financial statements for the last two years instead of three years;
2. The maximum number of shareholders before listing is reduced from 500 to 2,000, and the number of “unqualified” investors is relaxed to 500, making it difficult to change the stock before the listing, and relaxing the requirements for individual investors.
3. After the s-1 form is submitted, the information will only be disclosed to the US Securities Regulatory Commission and specific investors. The public will not be able to see it until three weeks before the road show, so that the listed company can make the public understand the financial situation without The main investor will make an inquiry and decide whether to go public after testing the water;
4. Exempt from SOX 404b, it is not necessary to establish internal control according to SOX before listing, and establish internal control after listing.
Previously, according to a person familiar with the matter, Jia Nan Zhi Zhi had secretly submitted the first prospectus and passed several rounds of questions and answers from the SEC before publicly opening the prospectus. At the same time that the Jianan Zhizhi prospectus was published, Bittland also secretly submitted a listing application to the SEC a week ago. However, Bitland will eventually become the first blockchain.
Jia Nan's wisdom and multi-party layout, the bite of the mainland is chaotic
According to the prospectus, as of June 30, 2019, the bitcoin mining machine sold by Jianan Zhizhi accounted for 21.9% of the world's total. In the prospectus, Jianan Zhizhi positioned itself as a “leading supercomputing solution provider” and said that the company's future growth strategy will focus on six major areas: strengthening its leadership in supercomputing solutions and continuing to invest. High power efficiency IC design, launch of new AI products, enhancement of AI platform business model (planning to create AI SaaS platform), strengthening supply chain management, and continuing to expand overseas business.
As the world's second largest mining machine manufacturer, Jianan Zhizhi has a glorious history.
In January 2013, the world's first ASIC mining machine was successfully developed under the efforts of Zhang Nanyi, the founder of Jianan Zhizhi, and the orders were subsequently delivered. Since then, Avalon and Pumpkin Zhang, these two names have also been loaded into the history of bitcoin development, marking the bitcoin mining into the new era of ASIC.
In September 2018, Jia Nan Zhizhi released the first generation AI chip K210. As of June 30, 2019, Jia Nan Zhi Zhi has delivered more than 26,000 K210 chips and supporting facilities to the market.
In addition, in the layout of the 5G market, Jia Nan Zhizhi stepped out of the blockchain field.
At present, Jianan Zhizhi is developing the second-generation 28nm AI chip "Kendryte K510", which will be developed for 5G scenes and will be used in new scenarios such as smart retail and smart driving. It is expected to start mass production in the first quarter of 2020.
In terms of team composition, the R&D team with 7 years of experience has obtained a total of 59 patents. In addition, Jia Nan has registered 70 software copyrights and 30 IC layout design rights, and has implemented a number of ASICs. A breakthrough in technology.
In contrast to Bitcoin, in 2016 Bittland developed the most successful S9 mining machine in history, monopolizing 70% of the global mining machine market, but the bottleneck also appeared. In the following two years, Bitcoland failed to develop a New mining machine. According to media reports, in the past two years, at least four miner chip failures in Bitland, including 16nm, 12nm and 10nm chips, lost more than $1 billion.
In 2018, since Bittland submitted an IPO application to the Hong Kong Stock Exchange, various questions and concerns have arisen.
At the same time, around the performance losses, power wars, mine withdrawals, personnel adjustments, layoffs … … rumors continue, despite the repeated rumors of the Bitland, but can not turn things around. Just the week before Wu Jihan launched a "coup" raid on October 28, Jia Nan Zhizhi had secretly submitted a listing application to the SEC.
The success of Jia Nan’s wisdom is not accidental.
Second, how will Jianan Zhizhi go after listing?
As far as the business structure of Jianan Zhizhi is concerned, the overall structure is relatively simple and still relies heavily on mining machine sales. Although the development of cloud computing heater A851H and blockchain smart TV has been developed, it is not ideal from the overall market feedback.
According to public information, Jianan Zhizhi has completed the delivery of a total of 11 products including Avalon A8, A9 and A10, and the A11 series Avalon 1146 and 1116 are expected to be delivered in 2020.
According to its IPO prospectus, since 2017, the sales of Jianan Zhizhi have fluctuated drastically. In the three years from 2017, 2018 and 2019, the total revenue of Jianan Zhizhi was 1,308.1 million yuan, 2,705.3 million yuan and 959.4 million yuan respectively. The net profit was 375.8 million yuan, 122.4 million yuan, and -33 million yuan, respectively. Both revenue and profit fell sharply for three consecutive years.
In order to seek longer-term development, Jianan Zhizhi began its business transformation and upgrading.
Jumping out of the blockchain, Jia Nan Zhi Zhi started the first shot of artificial intelligence.
According to the prospectus, in 2018, Jianan Zhizhi AI business revenue was only 275,000 yuan, accounting for 1% of total revenue; in the first half of 2019, its AI business revenue was only 468,000 yuan, with Bitland 2019 Compared with the annual revenue of AI business of about 100 million yuan, the difference is 213.67 times.
Such annual report data even makes investors suspect that Jia Nan is suitable for entering artificial intelligence.
At the same time, some insiders said that the related mining machine under the name of Jia Nan is seriously dependent on the technology of the chip supplier. Without the support of the TSMC chip, there is no strength and no bit of power and the Bitumen and Shenma mines.
At the beginning of the question, the world will pick up.
On October 18, 2019, in the second batch of domestic blockchain information service filing list of the network office cloth, Jianan Zhizhi was still missing. The legal status of the territory has not been confirmed.
But Jia Nan Zhi Zhi never gave up the dream of dominating the mining industry.
After the listing of Jia Nan Zhi Zhi, it can bring two big leap to it.
First, listing and taking the capital route is the first leap forward for Jianan Zhizhi to surpass the bitland. With the arrival of halving bitcoin in May 2020, the difficulty of mining has increased significantly, the competition in the mining market has increased, the market is nearing saturation, and government energy regulation. However, Jia Nan’s current main business is still unable to leave the mining machine, and revenue will be greatly frustrated in the coming year. At the end of the day, mining machinery companies will be even more difficult. If Jianan Zhizhi wants to survive in the blockchain industry and does not get rid of the car, it must consider the strategic transformation and upgrading of the business, and seek new support points and breakthroughs in the revenue industry.
Second, it is regulated and accepted through listing to compliance. The blockchain financial industry represented by mining is in the gray area for a long time in China. On April 9, 2019, the National Development and Reform Commission issued the "Guidance Catalogue for Industrial Structure Adjustment (2019, Draft for Soliciting Opinions)", which clearly states that the proposal will be " The “virtual currency” mining is included in the list of eliminated lists, and extensive opinions are sought from the public. Although on November 6, 2019, the Development and Reform Commission removed the mining industry from the “Industrial Structure Adjustment Guidance Catalogue (2019)” list. However, this does not mean that the mining industry is legal and stable at the policy level, and in recent years the government has rectified the encrypted virtual currency market. All this makes Jia Nan Zhi Zhi more aware that only by adapting to social trends will there be a chance to live longer.
This is also the endorsement of trust that Jia Nan Zhizhi wants.
Third, is it possible to link the encryption market to a peak?
Why does Jia Nan Zhi Zhi make everyone yell?
And why do blockchain companies hope to achieve a leap through listing?
For companies, listing is a fame and fortune.
The bureau diversified its business and greatly increased its market value. On the other hand, the application for listing needs to be disclosed by the IPO of the Securities and Futures Commission and other financial institutions. If it is successfully listed through the record, it will move closer to the existing orthodox financial system. On one level, it represents the successful landing of the company and represents the government's business. Recognition of the model.
Similarly, if the performance in the US stock market is good, Jianan Zhizhi is expected to increase its market value and reputation in the short term, and will also raise more chips for its later transformation of artificial intelligence.
For the industry, there are many advantages.
There are 32,000 conservative data of blockchain enterprises in mainland China, 90% of which are related to digital currency. However, due to the attitude of the regulatory layer on the blockchain financial industry, the relevant laws and regulations are still hollow. Formulate and introduce relevant industry standards, and traditional financial standards and compliance methods cannot meet the development of the blockchain industry at the current and subsequent stages.
Therefore, the cost of domestic compliance of a single blockchain enterprise is relatively high, and the compliance time is also longer than traditional finance. However, after Jianan’s listing in the US, it not only makes it easier for the US Securities and Exchange Commission (SEC) to accept the second and third… blockchain companies’ IPO applications in the US, but will further stimulate the government. Relevant government departments have accelerated the legislative progress of the blockchain and the introduction of the first-level standards, so that the blockchain industry has laws to follow and there are rules to follow. At the same time, it may also stimulate China's exchanges, such as A-shares, New Third Board, Hong Kong stocks, etc., to open the door to more blockchain enterprises, and then let the entire blockchain industry move towards a benign and healthy development.
Text / Never / Darcy / Snow Spike
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