Every reporter Yuan Dong edited by Xiao Hongyue
At the end of 2017, Bitcoin prices have been in a downward trend following a record high, but this did not reduce the enthusiasm of 'miners'. Recently, the famous mining machine manufacturer Canaan Inc. disclosed Will be listed on the Hong Kong stock, its rising profits year by year also received market attention.
"Daily Economic News" reporter noted that as one of the major manufacturers of mining machinery, its customer area is more representative, in 2017 customers Chinese customers accounted for more than 90% of sales.
It should be noted that even in the previous three years, Jia Nan has experienced a large-scale growth, but the company still faces many risks that cannot be ignored.
Net profit reached 361 million yuan last year
It is understood that Jia Nan is a fabless IC design company that provides advanced semiconductor solutions for complex computing problems, and currently supplies and sells system products designed for bitcoin mining with the AvalonMiner brand.
From 2015 to 2017, Kennan Minzhi’s sales of mining machinery increased by leaps and bounds, with sales of 9,727 units, 9,380 units and 295,000 units respectively; the company’s revenue for the same period was also rising, reaching 47.7 million yuan and 316 million respectively. Yuan and 1.308 billion yuan; net profits were 15.11 million yuan, 52.54 million yuan and 361 million yuan.
It should be noted that although bitcoin prices have started to show a downward trend since December 2017, in the first quarter of this year, the sales of miner's machines continued to increase substantially. In the first quarter of 2018, Jinan Minzhi sold 10.11 million miners, compared with only 36,700 sold in the same period last year.
According to the statistics, Kennan Minzhi started business in Beijing in 2013, set up his headquarters in Hangzhou in 2015, and began mass production of chips. Before 2017, the company's strategy focused on domestic and then started international sales. In 2017, its international sales. Only 8.5% of total sales. In addition to domestic sales, its international sales are mainly sold to the United States, Sweden and other places.
"Daily Economic News" reporter noted that in the production process, Kennan Minzhi cooperated with TSMC, Riyueguang, Changjiang Electronics (20.390, 0.57, 2.88%) and other companies.
This time, Jinan Xinzhi intends to list on the Hong Kong stock market. Its financing plan will be used in the following areas: First, chips for research and development of artificial intelligence algorithms and applications; Second, chips for research and development of blockchain algorithms and applications. The third is for the expansion of related businesses through overseas strategic investments and the establishment of offices worldwide; the fourth is to optimize the company's supply chain.
Still face multiple risks
Judging from the situation in the past three years and the first quarter of this year, the sales of Kennan Minzhi have indeed been growing rapidly. However, the large fluctuations in Bitcoin prices and changes in market acceptance are still existing risks for the company.
Gannan Minzhi also pointed out that the development of blockchain technology is still in its early stages, and it may not be widely accepted by the market in the future. The development of Bitcoin is still at an early stage and any unfavorable development in the Bitcoin market, including the development of Bitcoin. Differences in the nature of the centralization will also have a negative impact on the company's operating performance. In addition, changes in Bitcoin's position in cryptocurrency, mining methods, etc., will also affect the business of Kennan Minzhi.
In addition, the reporter of “Daily Economic News” also noticed that most of Jia Nan’s income came from mining machine sales, and mining machine sales declined for various reasons, which had a greater impact on the company’s overall income.
In fact, the negative comments on Bitcoin in the community are endless. Ma Yun also said, 'I think the blockchain is not a bubble, Bitcoin is.'
There are also research institutions that look at the Bitcoin and look at many other cryptocurrencies. Dongchi Futures pointed out that it is bearish on Bitcoin, and stated, 'We believe that there is a callback pressure on the cryptocurrency as a whole. It is possible that Bitcoin prices will fall to $1,000. In the long run, optimistic about the blockchain technology, you can choose start-up companies. The cryptocurrency and blockchain technologies are interdependent, and the future is more optimistic about the cryptocurrencies that have platforms and practical application scenarios, such as Ethereum based on Ethereum, Resolve cross-border payment of Ripples. '