The three elements and three meanings of Jianan Technology's successful IPO

On the occasion of the bleak market, Jianan Technology (hereinafter referred to as "Jia Nan") became a rare and good news.

On this listing, Jia Nan confirmed the stock code as “CAN” and issued 10 million ADSs, with a price of US$9 per share and a fundraising amount of US$90 million. On the first day of listing, the opening price was US$12.6, which was a 40% increase from the issue price, and then gradually fell back. It can be seen that the strong supervision order and the bitcoin plunged under the double negative pressure.

Despite this, the “release news” that has been released in the past month has been both intense and exciting. On October 28th, mining machine manufacturer Jia Nan submitted an IPO prospectus to the US SEC. Just when everyone thought that Jia Nan would once again smash the sand, it gave the blockchain practitioners a surprise. According to the news disclosed by the media, the success of Jianan IPO is basically a nail. On November 14, Jianan officials also seemed to "confirm" the authenticity of the listing news. On the same day, Jia Nan updated the US IPO prospectus again and began the final stage of the sprint. The underwriters of Jianan listed include Tiger Securities, Citigroup, Huaxing Capital, and CMB International. On the evening of November 21, Jia Nan was officially listed on the NASDAQ. At present, Tiger Securities has opened a new channel for Jia Nan to support “one button to hit new”.

Jianan Technology successfully listed on NASDAQ

In order to fulfill this ambition, Zhang Nanzhen struggled for six years, and the first throne of the global blockchain is not a compliment to the Jianan people.

Then, why can Jia Nan take the lead in breaking through? Successful listing, what is the reference for other blockchain companies? As a Chinese brand, what impact does Jianan have on the entire industry and Chinese companies?

First, blockchain + AI chip, two wings take off

"Everything is inevitable." This is the famous assertion of the founder of ancient Greek atomism, Ricky.

Jia Nan Technology (hereinafter referred to as Jia Nan) was able to go public and won the "first block of the global blockchain", which is mainly inseparable from the following factors.

1. Strong technical strength, 100% success

Jia Nan is the world's first mining machine manufacturer to produce ASIC mining machines.

As early as January 2013, Zhang Nanyi and his team invented and delivered the first cryptocurrency mining machines using ASIC (Special Chip) technology.

In the 33 months from the beginning of 2017 to September 30, 2019, Jia Nan produced more than 150 million ASICs.

According to independent research firm Frost & Sullivan, as of June 30, 2019, Jia Nan was the second largest manufacturer of bitcoin mining machines worldwide. In the same period, the bitcoin mining machine sold by Jianan accounted for 21.9% of the total computing power of all bitcoin mining machines sold worldwide.

At present, the Avalon A11 series produced by Jianan is still one of the mining machines with the highest mining revenue, and is highly favored by miners. It can be said that Jia Nan is the main player in the current mining circle.

In addition, the strength of the Jianan research team is not to be underestimated.

In 2018, Jianan’s IPO prospectus disclosed that there were 94 R&D personnel. From 2015 to 2017, the expenses were 5.1 million yuan, 41 million yuan and 105 million yuan respectively, accounting for 10.6% of their revenue. 13.0% and 8.1%.

In the past year, Jianan’s scientific research strength has continued to increase. The IPO prospectus to the US pointed out: "The core R&D team has been stable and has worked with the co-founders for more than four years. As of June 30, 2019, it has a 127-member R&D team, which has an average 7 years of industry experience."

As of September 30, 2019, Jia Nan has registered 69 patents in China, including 6 inventions, 50 utility model patents and 13 design patents. As of the date, the company has registered 81 software copyrights and 30 IC layout designs in China, and has launched 28 nm, 16 nm, 8 nm and 7 nm ASIC miners.

In January 2013, Jia Nan invented and delivered the first cryptocurrency mining machines using ASIC technology. Up to now, the company has completed 7 kinds of splicing for 28nm, 16nm and 7nm ASICs with a success rate of 100%.

2. Layout AI chips to open up new growth space

Jianan's talents, technology and capital accumulated in the development of mining machines are also ready for further research and development involving AI chips.

Since 2016, the company has been involved in the development and design of AI chips.

Of course, Jia Nan’s move is also ridiculous: Why do mining companies not do their own mining machine research and development, to toss AI chips?

In fact, the future development potential of AI chips is very huge, including Baidu, Tencent, Ali and other BAT giants have already entered the game.

According to independent and Frost & Sullivan data, ASIC edge AI chips are expected to grow at a faster compound annual growth rate and gain a larger market share, from 21.3% in 2018 to about 40.9% in 2023.

It can be said that it is precisely because of the development potential of AI chips that Jia Nan knows that he can't be partial, and finally chooses to launch AI chips, which also opens up new growth space for the development of the next enterprise, which is also the value of traditional capital. .

In September 2018, Jia Nan released the first generation of AI chip surveying K210, which also successfully dispelled the outside world's doubts.

The chip embeds the self-developed neural network accelerator KPU, which enables leading voice and image recognition functions, and can be widely used in smart homes, smart buildings and other Internet of Things applications.

According to public information, Jia Nan officially launched the commercialization of AI chips in March 2019. As of September 30 this year, Jia Nan delivered more than 53,000 K210 chips and development modules to AI product developers within half a year, and the commercial scale was first established. At the same time, Jianan has cooperated with more than 30 artificial intelligence algorithm companies to jointly develop an overall artificial intelligence solution for end consumers.

According to the prospectus, Jia Nan is developing its second-generation 28nm AI chip, an AI chip developed for 5G applications, which is expected to greatly increase computing power and energy efficiency compared to the previous generation. Mass production of the second generation chips is expected to begin in the first quarter of 2020.

In addition, the company plans to launch third-generation 12nm AI chips in the second half of 2020, which is expected to be applicable to edge and cloud computing.

3. Policy support, do not participate in speculation virtual currency

Jianan’s prospectus also disclosed the company’s operations.

In terms of income, Jianan's total revenue increased from 1,388.1 million yuan in 2017 to 2,705.3 million yuan ($394.1 million) in 2018, an increase of 106.8%. In addition, in the first nine months of this year, Jianan's total revenue reached 959.4 million yuan, of which the company's third quarter total revenue increased more than 2 times compared with the first half.

In addition, as mentioned in the prospectus, 99% of Jianan’s current income comes from mining products. From the beginning to the end, Jia Nan has never been involved in cryptocurrency speculation or any cryptocurrency mining activities, has been focused on technology development, design and research, and is committed to the long-term development of the blockchain and AI industry.

This is also an important reason why Jianan can be recognized by traditional capital and regulatory agencies. After all, in the eyes of regulators, cryptocurrencies are still not recognized.

In addition, the recent favorable domestic policies are also an important reason for the listing of Jianan.

On the one hand, from the national level, the blockchain has been upgraded to a national strategy. Various local governments have issued a series of policy support for the blockchain enterprises; on the other hand, the National Development and Reform Commission has also recently “virtual currency mining” from The deletion of “elimination of the industry” is undoubtedly a major positive for the mining industry.

In addition, Jiang Yang, former vice chairman of the China Securities Regulatory Commission, has recently accepted the attitude of mining. “Sichuan should make good use of the basis of bitcoin mining, study the relationship between blockchain, digital currency, and hydropower resources, and explore new industrial growth points.”

China is still the core market of mining industry, and China's policy trend has also greatly affected the future market space of mining machine manufacturers.

At present, the policy has already benefited the blockchain, and the listing of Jianan is naturally the meaning of the title.

Second, boost the industry and go global

After successfully completing the IPO, Jianan will become the first listed company to fully develop and grow in the blockchain industry, and is known as the “first block of the global blockchain”.

This is of great significance to the entire industry.

1. Promote the industry by identifying the blockchain.

In the previous blockchain industry, there was no original blockchain concept stock, and some of the existing ones were traditional companies to raise stock prices in order to raise their stock prices.

In the long run, the mainstream society's prejudice against the blockchain has deepened: the blockchain is just a concept, it can't produce actual profits, and it can't support the company's listing.

Is the blockchain industry really unable to rely on itself to independently develop a listed company? Jianan's listing gives a positive answer: Of course.

The listing of Jianan successfully promoted the blockchain to a more mainstream world and also became the industry's name. This is crucial for the future development of the entire industry.

2. It opened the way for other blockchain companies to go public.

In the past, there was no precedent for the listing of blockchain companies, and there were many obstacles. Nowadays, with the blessing of policies, many companies are also eager to move.

Jia Nan's case will also encourage more blockchain companies to follow suit, and their listing may be easier. We may see that the listing of blockchain companies will break out.

A large number of companies are flooding into traditional capital markets and will introduce new incremental funds for the entire industry. Traditional capital, talents, and technology enter the blockchain industry through these enterprises, and promote the development of the entire industry.

3. Promote the transformation of the entire mining industry.

Under the blessing of capital, more new low-energy, high-yield mining machines will emerge one after another, which is conducive to the structural adjustment of the mining industry, from extensive mining to a new era of fine mining.

In addition, more mining machines entering the market also means that miners have more autonomy.

In addition to having a profound impact on the industry, Jia Nan, the first share of the global blockchain, also made a Chinese voice on the world stage.

There are thousands of blockchain companies in the world. There are established companies such as Coinbase and BitMex in the exchange industry. There are also public-chain enterprises such as Ethereum, but in the end, China's mining machine manufacturers have won the first place and listed smoothly.

I have to say that China has taken the lead in this blockchain competition. As a Chinese company, Jia Nan has undoubtedly become a business card for China.

Imagine, for such a Chinese business card, what will China do? Please refer to Huawei for details.

All in all, the listing of Jia Nan is a blessing for the industry and China.