Established in 2013 with a registered capital of RMB 100,000, Jinan Minzhi has specialized in the design and sale of high-performance integrated circuit boards. It is also a producer of the Avalon series of bitcoin mining machines. Since 2015, Jinan Minzhi Started the research and development of artificial intelligence chips. After nearly two years of hard work, in 2017, Jinan Minzhi pre-released the world's first artificial intelligence edge computing chip KPU.
The Nannan founder, Nan Zhang, was known as 'Pumpkin Zhang' in the money circle. In 2011, he designed the Avalon bitcoin mining machine to be the world’s first professional Bitcoin mining machine, ending the era of computer mining. However, Kennan Minzhi was relocated by Bit Continent and became the world’s second largest bitcoin mining company after BitContinent. According to the disclosure of Ka Na’s prospectus, the company’s total miner’s computing power accounted for the market in 2017. On the other hand, 19.5% of the combined power of all bitcoin mining products is on the order of 60%.
The strength of Bitcoin's ability to create wealth is evident from the prospectus of Kennan Minzhi. The company's 2015, 2016, and 2017 revenues were 47.7 million yuan, 316 million yuan and 1.308 billion yuan, respectively. The annual revenue has increased to 27 times more than in 2015. From the perspective of profit, 2015 was 1.51 million yuan, in 2016 it was 52.54 million yuan, and in 2017 it increased to 361 million yuan, equivalent to 230 times of 2015. Above, the net rate was only 3.2% in 2015, and it reached 36% in 2017. It is expected to exceed 10 billion sales and 5 billion profits by 2018. It can be seen that bitcoin mining has huge profits.
From 2015 to 2017, the Avalon mining machine also achieved soaring. In 2015, the A6 (28 nm) series sold 9,927 units, and the 2016 A7 (16 nm) series was market-oriented, with annual A6, A7 series mines. The machine sold a total of 93,754 units, nearly 10 times that of the previous year. In 2017, the A7 series sold 290,000 units, which was three times that of the previous year. From January to March this year, it has already sold 10.1 units. Million Taiwan.
Jianan Yuzhi mainly attributed his income to four aspects: system products (bitcoin mining machines) sales, maintenance services and parts sales, chip sales and others. Among them, system product sales revenue is in an absolute dominant position. This part of revenue is mainly From Avalon Mining Machinery, the revenue share also rose from 74.9% in 2015 to 99.1% in 2017.
From the perspective of income geographic area, before 2017, the domestic market had a strong demand for bitcoin mining machines. Therefore, domestic sales revenue has always occupied over 90% of the total. However, Kennan Minzhi also stated that the future will expand internationally strategically. Sales, and expect that the absolute amount of foreign income and the percentage of total revenue will continue to expand.
Like Bittown China, Kennan Minzhi's miner ASIC chips are designed for their own use. Its hot miner's sales also bring high income to the semiconductor industry chain. For the past three years, TSMC has obtained a total of the battalions from Kenan Minzhi. The revenue reached 380 million yuan, accounting for 60% of the total cost of the Jinan Yongzhi chip foundry for the past three years. It is reported that the two companies have not signed a long-term contract, but purchased a form of purchase order and paid a prepaid amount.
In addition to the Bitcoin ASIC chip, the company is also developing another digital cryptocurrency ASIC chip, which is expected to be mass-produced in the fourth quarter of 2018 and is now pre-sold with 52.6 million yuan. In addition to artificial intelligence ASIC chips, it is said that In research and development, it is planned to be put into production in the fourth quarter of this year. It is mainly used for smart homes, smart cities, smart monitoring, voice and image recognition in smart toys, and a variety of internet of things applications. There are already pre-sale orders of 38.20 million yuan.
However, how much revenue will it face, and how much risk it will face, especially if the Bitcoin market fluctuates constantly. In the prospectus of Kennan Minzhi, it is also revealed that the demand for ASIC in the market may not be strong, and the fluctuation of Bitcoin price It also affected the pricing and demand of mining machines. If bitcoin were replaced by other cryptocurrencies, bitcoin mining machines would not be able to sell. If the cryptocurrency market stalled, then the industry would not exist; Bitcoin prices, transaction procedures, digging Mine difficulty, electricity costs, etc. will have a significant impact. If government regulations or other reasons cause power shortages, it will affect the economic return prospects of the mining activities of Jianan Yongzhi customers; global changes in Bitcoin laws and policies are risky if operating In countries or regions where products are sold or where Bitcoin mining is prohibited or restricted, the company will record significant losses.
This is the third application for the IPO by Jinan Minzhi. The previous two attempts have not been successful.