Ebang International's IPO application failed, and the three major mining machine manufacturers all failed in their IPO journey

Financial News on June 21, 2019: According to the official website of the Hong Kong Stock Exchange, Ebang International, one of the three largest Bitcoin mining machine manufacturers in China, has no subsequent progress after submitting its prospectus to the Hong Kong Stock Exchange for the second time on December 20, 2018, and it is currently displayed as invalid.

Hong Kong Stock Exchange official website information

The Hong Kong Stock Exchange filing database shows that the draft application submitted by Ebang International on December 20 disclosed financial information as of June 30, 2018. Data shows that as of June 30, 2018, the company's revenue exceeded RMB 2.1 billion and its profit was RMB 932 million, eight times that of the same period in 2017. The prospectus disclosed that the substantial increase in revenue was mainly due to the rising market demand for BPUs dedicated to Bitcoin mining, which led to the rapid growth of blockchain business. However, in the third quarter of 2018, the average monthly sales orders of its Bitcoin mining machines dropped significantly.

It is reported that Hangzhou Yibang Jusheng Technology Co., Ltd. is the corporate entity of Yibang Group that operates mining machine business in mainland China. Through equity penetration, it can be found that its suspected actual controller is Hu Dong, who is 100% controlled by Hong Kong Yibang Technology Co., Ltd. with a capital investment of RMB 111.771 million.

Tianyancha Data

Yibang International's first listing was suspended due to suspected involvement in a 520 million illegal fundraising case. On June 24, 2018, Yibang International formally submitted its listing application to the Hong Kong Stock Exchange. On July 18, 2018, the P2P platform "Yindou.com" issued an announcement stating that the actual controller Li Yonggang had lost contact, funds could not be redeemed, and it would cease operations. Yindou.com was investigated for suspected illegal fundraising. According to the investigation of the Yindou.com case, there was a large amount of capital transactions between Yibang International and Yindou.com. At the same time, it was revealed that Zhu Moumou, a person involved in the Yindou.com case, was a shareholder of Yibang International's parent company.

According to media reports, this 520 million yuan fund transaction was suspected to be used to inflate Ebang International's profits to help it go public smoothly; or Yindou.com invested in cryptocurrencies and purchased mining machines from Ebang International, but did not expect the investment to fail.

In this regard, Ebang International flatly denied it. Wang Hongyong, deputy general manager of Ebang International, once publicly stated that Cui Hongwei's payment of 144.9 million yuan was used to purchase cloud computing servers from Ebang International. In March 2018, Cui Hongwei again deposited 389 million yuan, but the total amount of the order and the specific matters were unknown. At the same time, Wang Hongyong admitted that Zhu Xiaolin was a shareholder of Ebang. According to the official report of the Haidian Public Security Bureau, Zhu Xiaolin is currently a fugitive suspect in the case of Yindou.com's suspected fundraising crimes.

On May 24 this year, Ebang released the Ebit E12 series of Bitcoin mining machines, which use 10nm chips and lag behind Bitmain's new model S17 (7nm) and BitMicro's new model M20S (8nm) in terms of chip manufacturing process. The estimated delivery time is August 20, which is only two months away from the end of the 2019 flood season.

Author: Tan Yao