'Huaqiang North has merchants claiming that once there were peers smashing 8,000 Avalon 741s at high levels, and each one has to lose 10,000 yuan each now - Avalon 741 has been discontinued. At present, there are only two mobile phones, and the market price is around 1600 yuan. - Less than one tenth of the peak period. '
Mine machine is obviously a profit-making industry.
The main product of Kennan Minzhi is the Avalon mining machine that digs Bitcoin. The latter delivers the second largest number of bitcoin miners in the world. A few days ago this company submitted a prospectus on the Hong Kong Stock Exchange. Business deal.
In just three years, Jianan Zhizhi’s revenue soared from RMB 47.69 million in 2015 to RMB 1.308 billion in 2017, with a compound annual growth rate of 423.7%. Gross profit margin also increased from 29.1% to 46.2%.
Market share second
Jinan Minzhi positioned himself as a chip design company, and founder Zhang Nanxin invented the first cryptocurrency mining machine with built-in ASIC chip technology.
The more computationally-powerful ASIC miner gradually replaced computer and graphics miners, becoming the mainstream choice for miner mining. However, Kennan Minzhi’s market share is far less than that of Bitland. Its prospectus shows 2017 Jinan Minzhi It delivered 295,500 miners with a market share of 20.9% in terms of delivered volume, ranking second in the world; the first ant miner delivered 945,100 units, with a market share of 66.6%.
In the SEG Digital Plaza in Huaqiang North, the world's largest distribution centre for digital currency mining machines, almost all of the mining machine sales counters sell ant mining machines, and Avalon mining machines are relatively rare.
A retailer told the CBN reporter that the ant miner operated more stably and the after-sales service was also very good. There were problems within six months after the sale of the miner can ask the manufacturer to renew the new one. This is for the stalls, the sale of ant mining opportunities A lot less trouble; In addition, the ant mining machine reputation, the buyer far more than other brand mining machine, Avalon 741 series of mining machine once fired for a while, and then there is no market.
A miner just started selling Avalon in the market, saying that the ant mining machine is very fast, the price is relatively cheaper than Avalon, and the Avalon mining machine is very slow.
Cost less than 3,000 yuan
When the mining machine is circulated in the market, the investment attributes are obvious. Higher coin prices mean higher mining yields, and the price of mining machines will rise accordingly, and vice versa.
The high bitcoin currency price is also the time when the Avalon mining machine is the hottest. At the peak, the Avalon 741 was fired to 20,000 yuan and one Taiwan. On December 17, 2017, Bitcoin currency reached 19,666 US dollars. Forced the $ 20,000 mark. For the miners, high-priced mining machine can return to this month or so, it is difficult to find a machine.
In Huaqiang North, mining machine sellers experienced a 'mining disaster' for up to 3 months. Bitcoin currency prices began to decline in February, and it was only around US$8,000 by May 20. Third-party website data showed that on May 19th. The Avalon 841 has a single day return of $3.11. The current price of this miner is around 6,600 yuan - if it can guarantee a daily income of 3.11 US dollars, the miner will return it after 200 days.
In Huaqiang North, miner sellers will show the mining machine profitability website to customers who come to purchase miners. However, bitcoin currency prices fluctuate drastically. No one can predict the next day's yield, and discounting becomes difficult. The lower price of the currency also means the diving of the miner's price. The reselling of the miner is more like a gamble.
Huaqiang North has merchants claiming that there were colleagues who had 8,000 Avalon 741s in high positions. Since then, each one had to lose 10,000 yuan - Avalon 741 has been discontinued. At present, there are only two mobile phones, and the market price is around 1600 yuan - - Less than one-tenth of the peak period.
Although the peak period was fired to two or three million, but Jianan Zhizhi prospectus shows that the Avalon mining machine ex-factory price is between 3122 yuan and 4402 yuan, and the unit cost is only between 2354 yuan and 2600 yuan.
Huge prepayments
Among the Huaqiangbei merchant accounts, Avalon mining machine is the only 'listed' mining machine manufacturer, which seems to have formed an endorsement effect.
In Huaqiangbei, there are more buyers of hot miner futures than spot buyers. According to the Jinan Zhizhi prospectus, the proportion of customer advances has reached 30%~50%. 'General requirements are intentionally included for up to three months. The list of buyers prepaid 30% to 50% of the purchase price, and the balance is settled before shipping the product. Order time determines the priority within the waiting list. '
On the other hand, miner manufacturers are weak in front of suppliers. According to the Jinan Minzhi prospectus, TSMC is the only foundry partner of Jinan Minzhi. From 2015 to 2017, TSMC orders accounted for company procurement. The proportions were 75.7%, 66.2% and 63.5%, respectively.
This obviously can't be compared with the orders of traditional mobile phone chip makers. In the prospectus, Jianan Zhizhi stated that there is no TSMC capacity guarantee. The company and TSMC did not sign a long-term contract. Instead, they acquired the supplies in the form of purchase orders and paid for the purchases in advance. Amount.
Jianbang Consulting analyst Lin Jianhong told the First Financial reporter that TSMC and many customers use pre-paid orders to process chips, that is, customers pre-paid expenses to reserve production capacity, and finally deduct this expense from actual production. The purpose is only to hope that customers will not Single, and cannot guarantee production capacity.
From 2015 to 2017, the prepayments paid by Ka-nan Nan to TSMC were 28.4 million yuan, 36.6 million yuan and 606 million yuan respectively.
In spite of the huge profits, the large amount of prepaid payments to suppliers caused Jia Nan to generate huge cash outflows. The cash flow from Jia Nanzhi's operating activities was negative until 2017.
From 2015 to 2017, the cash obtained from the business activities of Kennan Minzhi was -188.21 million yuan, -69.894 million yuan and 8.222 million yuan, which was far from the net profit of 1.511 million yuan, 52.544 million yuan and 361 million yuan.
Into the AI chip
Jianan Minzhi did not disclose the specific amount of IPO. According to the Hong Kong Stock Exchange announcement, Jinan Xinzhi IPO Net is proposed to be invested in four projects, namely, the development of artificial intelligence algorithms and applied ASIC chips; blockchain algorithm and application ASIC Chip; Expanding global AI and blockchain business by investing in overseas strategies and establishing new offices around the world; Optimizing the supply chain and repaying debt arising from restructuring.
It can be seen that AI chip is the focus of the layout of Kenan Minzhi.
Coincidentally, Bitcoin, a leading miner of the mining machine manufacturer, also regards AI chips as the focus of future development efforts. At the end of 2017, Bit Continental, known for its low-profile and muffled fortune, held a press conference to introduce its AI chip products.
Jinan Zhizhi prospectus shows that the proportion of R&D personnel and R&D investment shows that this is indeed a technology-driven technology company.
But whether the advantages of the miner's chip on the chip can be extended to the AI chip? The person in charge of chip business at an AI company in Shenzhen once told First Financial that mining requires a lot of repeated logical operations. The mining chip repeats a lot of simple logic operations. The unit can be, and the design is relatively simple. The AI chip not only requires massive operations, but also requires a high degree of flexibility, efficient data interaction efficiency, to cater to the evolution of fast and ever-changing deep learning algorithms, and continuously adapt to the fantastic ideas of the industry's neural network. Think, there is a big gap between this and the specific design purpose of mining chips.