Author: Cheng Qiu
On November 21st, Eastern time, crowds surged on the Nasdaq trading floor of the MarketSite building.
On this day, this place that witnessed countless business dreams ushered in the successful IPO of "the first share of the blockchain". At 9:30 am, Jia Nan Technology Chairman and CEO Zhang Nanxun, surrounded by the crowd, pressed the ringtone representing "open trading", the big screen of securities trading began to update, laughter and applause filled every inch of space on Wall Street .
In the Nasdaq hall, the handsome Zhang Nangeng clapped hard. In his speech, Zhang Nanxun said, "Behind this is the suffering we have suffered together, the blood and sweat we shed together, the joy of tackling scientific research difficulties, and the joy of harvesting customer orders together. Just like our stock code CAN Same, I believe we can do it, yes, we CAN! "
"CAN", a pun. In their own opinion, it is precisely because of the "CAN (Can)" of the first generation of Canaan people that they have the "CAN (Canaan technology stock code)" on the Nasdaq.
In China, a grand real-life light show was staged in Hangzhou Qianjiang New City, and the characters of "Jia Nan Technology" flashed rhythmically between buildings. This is the highlight of Jianan Technology, and it is also the highlight of the entire blockchain industry.
The listing of Canaan Technology has attracted the attention of global media. In the past month, the judgments and comments of Canaan Technology have been endless, with a voice saying, "Araine has realized the linkage between the currency price and stock price"; a voice said, "Araine has accumulated technology and is optimistic about its future"; There are also voices saying, "Jia Nan is the seller of mining machines and tells the story of AI chips." There are also voices saying, "It is still a broken hair, and American investors don't buy it."
In almost everyone's eyes, Jia Nan just finished a speech of inspirational story, and everyone gave applause to its past. But in the face of capital and business, most people look at each other and don't know where to start.
At the 2019 T-EDGE New Financial Summit and CHAINSIGHTS Fintech and Blockchain China Summit hosted by Titanium Media and co-sponsored by Chaintech, Chaintech “caught” Kong Jianping, co-chairman of the co-chairman of the company, who was a fan of the company He conducted a compact interview.
"Which word do you think is good to describe Jia Nan's current situation?" Faced with the question from the chain, Kong Jianping pondered for a while, and said two words, "build the bottom."
"Now is the bottom, what about the past six years?"
"This is a new foundation."
In front of the camera, Kong Jianping showed great concentration, and for all Jianan people, they seemed ready to go to the next "battlefield."
Kong Jianping, Co-Chairman of Kanan Technology, at CHAINSIGHTS Summit
Liandede (WeChat ID: ChainDD): The current overall environment is really bad, so that all new economy companies have inverted valuations in the primary and secondary markets. From the perspective of the newly listed new economic companies, the stock price of telling future stories is very ugly, such as: Weilai, Xiaomi, Qu Toutiao, etc. On the contrary, those whose main businesses are solid Pinduoduo, Meituan, etc., have become leaders. Capital seems to be more focused on the endogenous growth capabilities of companies. What do you think of the impact of this current environment on Jia Nan, as well as the decline in the amount of funds raised by Jia Nan, the break of stock prices, and the lack of buying by investors in the secondary market?
Kong Jianping: In fact, our fundraising has not decreased significantly, because our own fundraising is around 100 million US dollars, because this market is really not very good. As for why there is a report of 400 million U.S. dollars, it may be because we paid a fee in accordance with a relatively high standard in Nasdaq, so we have the media about "400 million fundraising has shrunk." Report.
From the perspective of the overall environment of the capital market, it is indeed relatively poor. Since July this year, no companies with particularly high fundraising have been listed in the United States. In fact, from our own perspective, the performance of our secondary market that day was fairly good in the US stock market throughout the second half of the year, with the opening price increasing by more than 40%, although the closing price was somewhat broken.
Liandede (WeChat ID: ChainDD): So do you think the overall performance is OK?
Kong Jianping: No, the overall performance is not good, the entire market is worse than we thought.
Liandede (WeChat ID: ChainDD): There is also a voice. Everyone compares the IPO market this year to the 2000 IPO market. At that time, as long as the company with the name ".com" rushed to go public. This year, more than 40 Chinese companies went public in the U.S. this year, and they set a record high. Nasdaq said this was the strongest year in history. And this will inevitably exist that some companies' business path in the capital market will not be smooth. Do you think Jia Nan has such concerns?
Kong Jianping: I don't think that Jia Nan will have such concerns, because we have been in this industry for so long, and we are deeply rooted, so we do not worry about what will happen in the future. But in the short term, the (mining machine) industry we are in, as well as the stock market, will definitely have relatively large fluctuations.
Liandede (WeChat ID: ChainDD): Do you like Jia Nan to be labeled as "the first block chain"? Is this label accurate?
Kong Jianping: I don't think there is accuracy or inaccuracy. In a broad sense, we can be regarded as the "first block chain", because the mining equipment we produce is used for the bottom mining of the blockchain industry; in a narrow sense, we are a semiconductor-related Public company.
Therefore, the labels you give us also reflect your expectations of us, and everyone is looking forward to the company to achieve new breakthroughs in this field. As the Nasdaq vice chairman told us that day, saying that we are the company with the largest number of people watching live broadcasts in the world, which may also reflect the attention of the blockchain.
Liandede (WeChat ID: ChainDD): So, from your submission of the IPO application to the listing of the bell, to the performance of the stock market in the secondary market, do you think the media ’s coverage of you is the most offensive?
Kong Jianping: I think most of the media are still kind. They analyze and report from a financial perspective, saying that our main business is single, that mining machine revenue accounts for a high proportion, and so on. Indeed, there will be some fluctuations in the operation of each company, but from our perspective, we think that 70-80% of the cost of the mining machine business itself is chips, so its core is the ability of the chip business. At the same time, we In the future, it is very optimistic about the entire blockchain supercomputing equipment, which is the development prospect of the so-called mining machine business.
Many media are not in this field and are not so optimistic about the development of this field, so they will think that the revenue of this main business is too single, or that the future prospects may not be very optimistic. However, we believe that there are still great opportunities in this industry.
Liandede (WeChat ID: ChainDD): Immediately following what you said, let's talk about the second point that everyone pays attention to: AI chip business. Almost all the media pointed to the same unexpected issue of Jia Nan, which is "AI chip". I actually support Jia Nan's judgment. As you said, the core of the miner is the chip. The mining ASIC chip and the chip used for edge computing are consistent in the knowledge system, and it is not difficult to achieve technology translation. What do you think of this sound?
Kong Jianping: AI has a characteristic that there may be a big difference between the current AI and the future AI. At the same time, the industry is still in its infancy, so many people have doubts about something new. However, everyone is very optimistic about the overall AI industry. Our AI chips have made certain breakthroughs in some edge computing fields, such as smart audio and video recognition, smart door locks, smart access control, smart toys and other IoT fields.
Liandede (WeChat ID: ChainDD): Which word do you think is good to describe Jia Nan's current situation? "Broken arm survival"? "Walk on two legs"?
Kong Jianping: Now belongs to a "bottom building" phase.
Liandede (WeChat ID: ChainDD): Now it's the bottom. What about Canan's past six years?
Kong Jianping: From the time of seeking the listing of Hong Kong stocks, the investors at that time gave Jia Nan a valuation of more than 10 billion US dollars. Therefore, compared with the past Canaan, we are now in a new stage of building the bottom.
Liandede (WeChat ID: ChainDD): At present, the company's plan is "to achieve 1: 1 AI chip and mining machine business in a few years". Since the edge computing chip is aimed at, why not say "7: 3" or 8: 2 ", but it is more pleasurable. What are the in-depth considerations?
Kong Jianping: In 2015, we made a strategic plan. At that time, there were two ways to choose: one is around the layout of the blockchain and the entire industrial chain of bitcoin, including mining, mines, and possibly encrypted digital currency transactions; The other is the layout of the entire industrial chain around chips, because the miner itself is composed of chips. In the end, according to the team's genes, and we believe that if the entire blockchain or digital currency industry is particularly large in the future, it is impossible to achieve the first place in the entire industry chain layout. Therefore, we focus on the first stage around a field.
At that time, we thought, in which fields can the same low-power, high-performance and advanced process nodes be used? At that time, the word AI did not exist. AI only entered the industry to innovate after Alpha Dog defeated Li Shishi in 2016. We used more words like deep learning and convolutional neural networks. Then we feel that these areas need more computing power to improve its computing performance. So this is a process.
As for 1: 1, this doesn't represent the decline of the mining machine chip business, but we think that both markets will grow. Secondly, we have also done some data analysis and analyzed the market share data of these two markets, not to say that it is simple to write 1: 1 or 7: 3.
Liandede (WeChat ID: ChainDD): You once said that you need to be the number one in the industry next year, that is, 2020. Where does this confidence come from? (Kong Jianping once said that Jia Nan's grasp of the supply chain and capital investment will be greater after the listing, and the goal is to strive for industry first in 2020 market share.)
Kong Jianping: First of all, research and development, we are doing better and better. Secondly, the layout of the supply chain, we also have more consideration than before, how to carry out the specific may not be convenient. Then there is the capital. Because of the listing, including other ways of financing, when the industry comes up again, we will have more advantages in funding than ordinary manufacturers, and we will be on the entire blockchain supercomputing ecosystem. Both have a comparatively big advantage.
Liande De (WeChat ID: ChainDD): You also have an identity of "investor", who once entered Jia Nan as an investor and participated in the management decision of the company. Could you briefly share your thoughts on this decision? Why not financial investment, not strategic investment, but directly participating in the company's operations. I believe that about President Zhang Nangeng and their technical team, I think there will be many precious memories.
Kong Jianping: As early as 2013, when Jia Nan had not yet been established, their team then crowdfunded and released a mining machine, "Avalon", which is the world's first ASIC mining machine.
At that time, the selling price of the Avalon mining machine was 8,000 to 12,000 yuan, but I bought it for nearly 300,000 yuan and bought several. Therefore, I was the first person to lose money in mining. At that time, I had two judgments. One was that the basics of Bitcoin were technical geeks at the time, and there were few people in traditional society. The second was that Bitcoin did change many traditional aspects of cross-border payments and virtual assets. Limitations, I think this is a new technology-driven thing, so I am more interested in this industry.
Later, in 2014, the entire market was lower, but we believe that investment should be done in a counter-cyclical manner, especially in industries where you think it will rise in the long run in the future.
At that time, Pumpkin Zhang (Zhang Nangeng) might be the last one to find me, because he had contacted many friends he was familiar with before, but many people were willing to buy his mining machine, but were not willing to participate in his mining machine company.
After the contact, we also introduced the Tsinghua Yangtze River Delta Research Institute (in 2015, the Tsinghua Yangtze River Delta Research Institute invested in introducing a number of blockchain technology teams such as "Jia Nan Yun Zhi", and signed an investment incubation agreement with Jia Nan Yun Zhi .), We have also participated in the LP share of his (Tsinghua Yangtze River Delta Research Institute) fund, and the parties have come together in this way. At that time, I was purely an investment. Although I was a member of the company's board of directors, I did not participate in the management of the company.
Later, when I was doing strategic planning, I participated in a lot. I mentioned a few plans, including the subsequent listing, and then participated in the company's affairs step by step. In this process, the industry is also undergoing cyclical changes. During the downturn, some shareholders also wanted to sell some shares, but I personally chose to continue to increase my holdings. This is such an overall process.
Liandede (WeChat ID: ChainDD): Jia Nan currently has capital, traffic, and technology accumulation. The next step is to open up the upstream and downstream, and continue to go up. So far, what do you think is bad for Jia Nan? What help would you like to get along this path?
Kong Jianping: The core is the judgment of the future and the layout of research and development. If, as you said, we may have advantages over most friends in terms of attention and capital, and we have also made some breakthroughs in the field of AI. But more is that the future may be a result that you can't see now, or the judgment you make may be wrong, so we need to think more about this.
Liandede (WeChat ID: ChainDD): Is it an industry risk?
Kong Jianping: I don't think the industry is risky. It's more about your future research and development positioning, product positioning, technical route research and judgment, and what kind of role you will play in the industry, which requires a lot of trial and error. For example, who do we need to work with as an edge computing chip? What innovative design needs to be done on a chip basis? Or what kind of computing network can be made to meet more future needs.
Liandede (WeChat ID: ChainDD): For the development of the international market, what plans does Jia Nan have? Because the current customer base of Jia Nan is concentrated in China.
Kong Jianping: Jia Nan did not do much publicity before. In fact, we have accounted for about 30% in the international market, and more and more major customers in the international market are purchasing Canaan's chips or equipment. Therefore, we can see that the proportion of the entire international market will continue to increase in the next few years.
Liandede (WeChat ID: ChainDD): What is their main purpose?
Kong Jianping: One is a mining machine. With the continuous expansion of foreign mine infrastructure, they need more and more mining equipment. The other is an AI chip. Many of our developers are from the international community. They have strong hands-on ability, and our chip has an offline function, which means that you can do AI calculations without an Internet connection. To privacy protection. From the perspective of the international market, their requirements for privacy protection are higher than domestic ones.
Liandede (WeChat ID: ChainDD): What is the proportion of the 30% of the international market sales for mining machines used for mining and chip business used for AI computing?
Kong Jianping: Because the sales of the AI sector are not so large, the sales of mining equipment are mainly 90%.
Liandede (WeChat ID: ChainDD): In 2020, another integer pass, if you give Jia Nanli a five-year plan, what would you say? Is it market value? Or what? Because as early as 2015, you told the company team that Jia Nan will become at least a billion-dollar company in the future.
Kong Jianping: In 2015, in fact, it was more cheering everyone. Because everyone thinks that there can be no listed companies in the blockchain industry, so if they can go public in the future, they will become 100 billion yuan, which will give the team more confidence in continuous operation. But we don't really pay much attention to the market value now, but more about what Canan's blockchain and AI chips can be used for? Can the two be effectively merged?
Like I said before, all future devices may be "computing chips." This next-generation computing network, Canan can lead the next few years, not just a single chip product.
Liandede (WeChat ID: ChainDD): This extends the last question. Now everyone is discussing "digital currency", "new finance" and "blockchain technology". As an important participant in the entire blockchain industry, is it possible for Canan to do layout, cooperation and investment like public chain or blockchain feasible application in the future?
Kong Jianping: From the current main body of Canaan , there will be no public chain and other projects in the short term, and the company's larger main business will definitely be in the chip area. However, I personally will continue to pay attention to and invest in some related projects. The Canaan blockchain also currently does some planning guidance with many institutions, including some cooperation.
Liandede (WeChat ID: ChainDD): So it is still possible to do some layout through some financial investment, right?
Kong Jianping: Yes, we are very optimistic about the blockchain , so for the public chain or blockchain feasibility application we mentioned, both individuals and companies will actively participate.
Liande De (WeChat ID: ChainDD): OK, thank you!