Blockchain revenue is 260 million or 666,000 – easy to see the stock blockchain fog

On the afternoon of April 28, Easy View (600093) released the first quarterly report for 2019. From January to March, the company achieved operating income of 2.276 billion yuan, down 48.69% year-on-year.

Yi Jian shares explained this, the decline in revenue due to the development of the blockchain business: "After the "Easy Block 2.0" went online, the core enterprise 'trusted data pool' is fully constructed, and the company will have a supply chain with online conditions. The implementation of online management of the business, using smart contracts as a risk control method, and gradually reducing the supply chain model directly involved in trade, led to a large reduction in the company's operating income during the reporting period."

The translation is that the easy-to-see block 2.0 uses the blockchain smart contract technology to reduce the cost of risk control, and this part of the cost is cost to the customer, but it is actually income for itself.

If the situation is true, then we are deeply impressed by the fact that for the sake of technology finance, we have to fight with each other's hands and even make our own life, so that the righteousness is really admired. At the same time, we are delighted that the blockchain can actually reduce costs and generate value.

But the paradox is that in 2017, Yijian shares just started to do blockchain, that is, in the era of 1.0 in the easy-to-see block, the business has won revenue of 127 million yuan. In 2018, the business revenue was 260 million yuan. Instead of both hands and blogs, and bringing new profit growth points to the company, why blame the blockchain for the decline in revenue for the quarterly report?

Things are abnormal!

Real blockchain revenue

260 million yuan – This is the blockchain-related business revenue disclosed by the company's 2018 annual report. The main business of easy-to-see shares includes supply chain management, factoring business and information service business. The information service business is mainly the income earned by the company's holding subsidiaries Shenzhen City Times Technology Co., Ltd. and Yijian Tianshu Technology (Beijing) Co., Ltd. in the promotion and application of the "Easy Block" system and the operation and maintenance services.

Easy to see the three major business of 2018 revenues

(Source: Easy View Shares 2018 Annual Report)

This is a revenue that makes BATJ enviable. Mutual chain pulse has long tracked blockchain enterprises, but it is understood that the blockchain business including Tencent, Ali, Baidu, and Huawei are in the pilot and development period, and there is no profit requirement.

The blockchain business of EasyShare has continued to triumph in 2018 after achieving 127 million yuan in 2017, which is enough to make the market peers marvel: how easy it is to see shares.

In fact, after the announcement of the 2017 annual report of the company, the Shanghai Stock Exchange also questioned the “information service business” of the easy-to-see shares, requesting the easy-to-see shares to give: “The basic information of the top five customers of the information service business, the main service product content. And the amount of sales, whether there is a relationship with the listed company, whether the information service business has commercial substance."

According to the understanding of the inter-chain pulse, most blockchain technology companies obtain revenue by providing blockchain technology to other companies or collecting service fees, but the actual situation is that these revenues are far from enough to make up for technology research and development, labor costs and other expenses. Many companies typically use other services, such as "cloud services," to compensate for the shortfall in blockchain services.

The gross profit margin of EasyShare shares is as high as 99.9%, which is unbelievable. Looking at the global blockchain industry, perhaps only those blockchain projects that do “funds”, “gambling” and “games” can do it. There is no precedent for real application of blockchain.

Another data from the easy-to-see stock annual report reveals the truth. According to the “Financial Information of Reporting Segments” in the “16. Other Important Events” of the company. The revenue from the information service segment was RMB 666,000 and the interest income was RMB 259.6 million. The sum of the two is 260 million yuan. In other words, the real service fee that Yijian shares obtained due to the blockchain is only 666,000 yuan. The rest is actually the interest income generated by operating the supply chain finance. This part of the income is not available in the blockchain.

(Source: Easy View Shares 2018 Annual Report)

In the question and answer to investors, Yijian shares clarified that the revenue of the “easy-to-see block” comes from the service fee, not the interest generated by the capital turnover.

Therefore, after the 2017 annual report came out, the media will be able to see the entire information service part of the year's information service part of the publicity into blockchain profits, which is misleading.

On the other hand, the 2018 R&D expenses of Yijian shares increased by 157.58% compared with the same period of last year, reaching 18.7 million yuan. The company explained that the company mainly increased the system R&D expenditures such as “easy-to-see block” and “trusted data pool” in the current period. It is concluded that the service fee of 666,000 in the easy-to-see block is far from enough to cover R&D expenses. This is also in line with the general situation of other companies in the current stage of the blockchain.

Easy to see shares and blockchain

However, it is undeniable that Yijian shares has an inherent advantage in entering the blockchain by virtue of its traditional resources in supply chain finance.

According to public information, Easy View is a 20-year-old veteran supply chain management company with supply chain management and commercial factoring as its main business, and entered the blockchain in 2017. In April of that year, Yijian shares and IBM jointly developed the “Easy Block” system, which was officially put into commercial use. The system mainly serves the company's supply chain management and commercial factoring business, and also provides investment and financing for some financial institutions and customers. Provide services.

On September 19, 2018, Yijian shares launched "Easy Block 2.0". 2.0 achieves cross-chain data traceability technology compared to 1.0, realizes trade, financing multi-chain collaboration and cross-chain traceability, and forms a traceable supply chain financial solution covering the entire supply chain from trade formation, financing to asset securitization. process.

Easy to see shares gained a capital premium because of the “easy-to-see block” system. At the beginning of this year, the blockchain concept stocks were once again spurred. The share price of EasyShare shares started from 7.81 yuan on February 1, and the highest price reached 19.25 yuan on April 3, an increase of 146%. Becoming a "big bull stock" this year.

On the other hand, Yijian shares itself believes that “Easy Block 2.0” is the chief culprit in the first quarter of revenue “waist”.

Judging from the data disclosed in the 2018 Annual Report, the “Easy Block 2.0” can cause such a large damage to the revenue, only the “interest income” mentioned above.

“Easy Block 2.0” allows the working capital of the supply chain to be allocated immediately, so no interest income will be generated. This undoubtedly reduces the cost of both ends of the supply chain finance, but the income of the easy-to-see shares is therefore damaged.

According to the data of the 2018 annual report, if the easy-to-see shares only receive income from the information service business, the short-term distance interest income differs by several orders of magnitude and cannot be remedied. It is not yet known whether it can be remedied for a long time, but supply chain finance is currently a battleground for the blockchain. According to the inter-chain pulse, in addition to BATJ, Huawei, Ping An, Zhong'an, Weizhong Bank and other traditional large companies, emerging blockchain companies, Bubi, Yunxiang, Fun Chain, and Taiyi Cloud are also deeply rooted in supply chain finance.

(Photo: China Xintong Institute)

For the easy-to-see shares, it seems that just out of the tiger's mouth and into the wolf. In the 2018 annual report of the company, the “blockchain” appeared 52 times. When the annual report described the company's business, the first part stated that “the company's main business is supply chain management, commercial factoring and company-based”. The information technology service provided by the block' platform. During the reporting period, the company stabilized the development of supply chain management and commercial factoring business on the one hand, and strengthened business transformation on the other hand, and deepened the supply chain by using technologies such as the Internet of Things and blockchain. The direction of financial technology transformation remains unchanged."

Easy to see the combination of shares and blockchain, there is no turning back.

Wen Hao Mutual Chain Pulse Commentator · Yuan Shang

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