Jia Nan’s coronation moment

Text | Zhou Wenyi Editor | Bi Yi Tong Source | PANews
At 22:30 on November 21st, Beijing time, Jia Nan Technology (CAN) was listed on the NASDAQ in the United States. After three sets of frustrations, Jia Nan finally dreamed of a US dollar. Jia Nan Zhi Zhi, who once invented the world's first ASIC mining machine, is now the first sharer of the mining machine manufacturer and crowned the first block of the Chinese blockchain.
That night, Jianan Technology began trading at an issue price of $9 per share, which was between $9 and $11 in the previous subscription price range.

Next to the office building of Qiantang, Jiayu, Hangzhou, Qiantang, Hangzhou, the low-key Jia Nan Zhizhi made a large-scale light show, perhaps because it was too difficult for this day, and Zhang Zhang and his team were waiting. It has been six years.
“Thank you colleagues, thank you investors and partners. We have experienced failure and success together. We will be together in the future and strive for a beautiful vision.” Zhang Nanxuan said excitedly on Nasdaq.
O1
Consensus from 1% to 1
In 2010, Zhang Nanxuan was a Ph.D. in computer science at Beihang University. But the connection to Bitcoin has changed his life path. The first time he touched Bitcoin, he felt that this thing had the potential to change 1% of the world. As a result, he began to delve into bitcoin and showed his own FPGA mining machine, Icarus and Lancelot, to the global bitcoiner with the ID "ngzhang" ("Pumpkin Zhang"). This year, it coincided with bitcoin mining into the area of ​​regional programmable gate array (FPGA) mining. Zhang Nanyu's mining machine Icarus became the first product in the bitcoin mining FPGA stage.
However, just one year later, the mining machine began to enter the ASIC era. The American Butterfly Lab announced that it will develop an ASIC for mining machines that is far superior to the current level. In order to eat the tiger's mouth, Zhang Nanzhen quickly invested in the research and development of ASIC mining machine, and strong persistence made Zhang Nanxuan, who was on the eve of his doctoral graduation, finally choose to drop out of school. In January 2013, the ASIC mining machine codenamed "Avalon Avalon" came out and led the mining machine into the ASIC era.
"Avalon" was hailed by the market, allowing Zhang Nan to fame and fortune. In April of that year, Zhang Nanzheng and Li Jiaxuan, who worked as an IC engineer at Zhongxing Microelectronics, established “Beijing Jianan Zhizhi Information Technology Co., Ltd.”. Soon after, another shareholder Liu Xiangfu joined. It is said that Zhang Nanxuan and Li Jiaxuan are both anime fans. Jia Nan’s English name “Canaan” comes from the Japanese animated film “Canaan Canaan”, while the Avalon Avalon mining machine is the name of the weapon in the anime “Fate”.

▲Tian Nanan Canaan Chairman and CEO Zhang Nanyu
Jianan, who is on the momentum, has never expected it. The next wave is a wave of unrest. In December 2013, the central bank and other five ministries and commissions issued the "Notice on the Prevention of Bitcoin Risk". Overnight, the industry's cold winter suddenly came, and within the company, Zhang Nanyu gave up the mining machine assembly market and focused on the chip. Business. This decision-making mistake is tantamount to making Avalon's mountains and rivers hand out. What is even more difficult is that rising stars, including Bit Continental, have entered the market, and mining machine manufacturers have begun to enter the era of competition. In 2015, Bitland relied on the ant S7 mining machine to eclipse 80% of the mining machine market share, leaving Jianan Zhizhi far behind.
After a few years in the inner and outer dilemma, Zhang Nanxuan began to realize that only capital can make Jia Nan’s wisdom pass. According to 哔哔News, in 2013, Hangzhou’s individual investor Kong Jianping and Zhaibit’s founder Sun Qifeng invested 7.6 million and 1.4 million respectively to invest in Jianan Zhizhi. This is a life-saving money for the team of Pumpkin Zhang.
After that, Zhang Nanyi sought unsuccessful external financing. Until 2015, Zhejiang Tsinghua Yangtze River Delta Research Institute Hangzhou Branch and the same investment in Hangzhou invested in Jianan Zhizhi, met many nobles from Hangzhou, Jia Nan. Yu Zhi then moved the headquarters to Hangzhou. After entering 2015, Jia Nan Zhi Zhi entered a period of rapid development. The operation is developing rapidly. According to the recently announced listing prospectus, Jianan Zhizhi's revenues in 2015, 2016 and 2017 were respectively 0.48 billion yuan, 316 million yuan and 1.308 billion yuan.
However, this year, Jianan’s performance was not satisfactory. According to its prospectus, the net income for the first half of this year was 42.1 million US dollars, a loss of 45.8 million US dollars, while the net income for the first half of 2018 was 1.947 billion US dollars, and the profit was 178.9 million. Dollar.
Jianan's development constraints also come from product performance constraints. On August 8, 2018, Jia Nan Zhizhi held a press conference in Hangzhou to officially release the world's first mass-produced 7-nanometer chip before the Bitland. Nowadays, when a number of mining machine manufacturers have already commercialized 7-nanometer and 8-nanometer chips, they have not yet seen the Jianan Zhizhi 7-nanometer mining machine on the market. Its latest mining machine A11 is also not equipped with 7-nanometer chips, and is suspected of using Samsung's 8-nanometer chip.
Jianan listed, which shareholders benefit the most? According to the prospectus, the company's management holdings totaled 50.8%. Li Jiaxuan, Zhang Nanxuan, Kong Jianping and Sun Qifeng held 16.2%, 16.0%, 12.1% and 5.8% respectively.
O2
One step, three folds, and repeated listings
Going by the fun, and losing and returning. It can be used to play the fun of Jia Nan's three previous listings.
It is true that compared to other companies, Jia Nan’s road to the road is indeed not very smooth. The tug-of-war battle from June 2016 to November this year has finally turned around after 42 months. Listed in the US ringing the clock.
In June 2016, this was the first time that Jia Nan Zhizhi attempted to land on the A-share listing – “backdoor” A-share listed company Lu Yitong. In the same year, Luyitong announced that it planned to purchase the entire equity of the existing 14 shareholders of Jianan Zhizhi at a price of 3.06 billion yuan. However, due to the regulatory cold snap, the listing plan fell through.
Until August of one year, Jia Nan re-launched the listing plan and sought to list the new three boards. However, after three rounds of feedback from the national stock transfer company and the brokerage company, they could only give up.
In April 2018, Jiang Yang, vice chairman of the China Securities Regulatory Commission, investigated Jia Nan, and expressed his hope that Jia Nan Zhi Zhi would be listed in China. In May 2018, Jia Nan turned to be listed on the main board of Hong Kong in the form of red chips. However, six months later, I waited for the official website of the Hong Kong Stock Exchange to display the information that "Jia Nan Zhizhi IPO application has lapsed." At that time, there was a view that Jianan Zhizhi could not pass the examination or approval, as stated by Li Xiaojia, president of the Hong Kong Stock Exchange. "The listing application must conform to the principle of 'marketing adaptability', that is to say, the business of listing (enterprise) must be Suitable for listing, including the sustainability of operations, compliance with regulatory requirements, etc."

This time, it is the last stop of Jia Nan's listing road, and the stone in Zhang Nan's heart can finally land.
On October 28, Jia Nan officially submitted the F-1 prospectus to the SEC, so that all the previous rumors of "Jia Nan Zhizhi once again hit the IPO listing". Compared with the previous setbacks, the outside world is generally optimistic about the success of the listing, which is related to the differences in the listing specifications. Previously, some lawyers pointed out that the US IPO is a registration system, focusing on the full truth of supervision information disclosure, there can be no fraudulent information, and there are no other rules and regulations. Although Hong Kong IPO is also called registration system, it still has certain physical standards. With some approved ingredients. “The difficulty of Jianan’s listing in the US is whether they can accurately assess the benefits and risks that the business brings to investors.”
In addition, according to the prospectus, Jia Nan applies the US Federal Securities Act, which can be identified as an “emerging growth company” and is eligible to reduce the reporting requirements of listed companies. The bill aims to simplify the listing process and ease the disclosure requirements for emerging growth companies with annual revenues of less than $1 billion. To a certain extent, it can avoid the negative impact of traditional financial instruments on their business performance. flexibility. In addition, the industry consensus on the overall market recovery and domestic and international attitudes towards blockchain technology is becoming more open. This favorable environment is powerful for reducing industry risks and launching listings.
O3
An adventure dream of an AI chip
In a previous tracking report, PANews mentioned that Jia Nan submitted a listing application to the US Securities and Exchange Commission (SEC) and plans to list on the NASDAQ market through the IPO. It is not difficult to find out through the prospectus alone that the AI ​​chip business has become the heart of Jia Nan.
It is reported that Jianan AI related products realized RMB 500,000 in revenue in the first half of this year, and the income of AI products in the second half of 2018 was RMB 300,000. Prior to this, such products have been produced without income. Jia Nan Zhi Zhi announced to the outside world in 2016 that the company is developing edge computing chips based on artificial intelligence.
However, in the prospectus, instead of “bitcoin mining companies”, Jia Nan clearly identified itself as a “semiconductor company” and a “leading supercomputing solution provider” focusing on AI chip development. In order to reduce the risk of bitcoin, the company added AI chip business. The founder has publicly stated that the revenue of AI chips in 2019 is expected to be tens of millions of yuan, and it is planned to achieve a 1:1 ratio of mining machine and AI business in three years.
In addition, for the IPO fundraising, Jia Nan said that it will be used for research and development of ASICs related to AI algorithms and applications, research and development of ASICs related to blockchain algorithms and applications, AI and blocks. Global expansion of the chain business, optimization of the supply chain, and repayment of liabilities arising from corporate restructuring.
Zhang Nanzhen acknowledged that chip innovation may be risky, but in the end it can develop a good product far better than the competition. In 2016, Zhang Nanxuan and his team began to design the first generation of AI chips, which is equivalent to the use of computing technology accumulated in the blockchain field to develop AI chips. He emphasized that "the chip industry has no shortcuts to accumulate teams and technologies. It is an iterative process from generation to generation, and one wafer is piled up."
In an interview with China Entrepreneur, Zhang Nanxuan analyzed that the chip is the basis of the computing platform. The software and algorithms of the previous layer belong to sustainable services. Going up, it is the customer, the customer may have more needs. For example, the platform that needs to provide cloud services, the equipment for passenger flow analysis, the data statistics platform, etc., are actually very biased towards the Internet. If you do this, you no longer need to make money on the sales hardware, but provide Internetization around customers. Service.

Zhang Nanzhen believes that the AI ​​chip will bring huge opportunities to Jianan. On the one hand, from a technical point of view, AI chips will greatly impact the traditional computer architecture; secondly, the breakthrough of 5G technology will provide a good technical foundation for the development of the end-side AI market.
In fact, although the output of the Jianan chip sector has contributed little to the company's overall performance, Jianan's investment in the chip has not been lost. From the development of the first generation of chips in 2013 to the present; from 110 nm to 55 nm, 40 nm, 28 nm, 16 nm, 7 nm, and 28 nm AI chips. Especially in 2018, Jiananke successfully designed and mass-produced the world's first 7nm chip, mass production released the world's first commercial edge intelligent computing chip based on RISC-V architecture and self-developed neural network accelerator. The chip has a wide range of applications in smart homes, smart buildings, new retail and smart manufacturing, and is one of the pioneers of domestic AIOT chips.
Interestingly, on July 20 this year, on the day of the 60th anniversary of the first human landing on the moon, Zhang Nanxuan published an internal letter to inspire employees. The future of the digital world will be a silicon-based civilization. Jianan has become one of the pioneers of this adventure. .
"The defeat of nine defeats is the true nature of the adventure. Before arriving at the end, it usually contains day-to-day calculations, frustrations of trial failure, and excitement that others are puzzled by. The same is true of silicon and the exploration of the digital world. As the underlying architecture of the digital new world, the chip industry is entering the era of intelligent computing. We will improve human life through intelligent computing, which is an industry revolution that is happening quietly, and it is our opportunity."