Bitcoin mining machine company Ebang International rushes to Hong Kong Stock Exchange: net profit of 378 million last year

Three months after being delisted from the New Third Board, Bitcoin mining machine company Ebang International rushed to the Hong Kong Stock Exchange and recently formally submitted its prospectus. The exclusive sponsor of Ebang International is Haitong International.

The prospectus shows that Yibang International's revenue in 2015, 2016 and 2017 was RMB 92.14 million, RMB 120 million and RMB 978 million respectively, and its gross profit was RMB 50.56 million, RMB 57.68 million and RMB 527 million respectively, with gross profit margins of 54.9%, 47.8% and 53.9% respectively.

Yibang International's revenue mainly comes from blockchain and telecommunications equipment. In 2017, the revenue from blockchain was 925 million yuan, accounting for 94.6%, and the revenue from telecommunications equipment was 53.25 million yuan, accounting for 5.4%.

Yibang International's operating profits in 2015, 2016 and 2017 were RMB 27.46 million, RMB 12.01 million and RMB 443 million respectively, with operating profit margins of 29.8%, 10% and 45.3% respectively.

Yibang International's annual profits in 2015, 2016 and 2017 were RMB 24.23 million, RMB 11.14 million and RMB 385 million, respectively, with annual profit margins of 26.3%, 9.2% and 39.3%, respectively.

In 2015, 2016 and 2017, the earnings attributable to the equity shareholders of Yibang International were RMB 24.23 million, RMB 12.44 million and RMB 378 million, respectively, accounting for 26.3%, 10.3% and 38.6% of the total earnings, respectively.

According to the introduction, Yibang International is a blockchain technology company with ASIC chip capabilities that designs, produces and sells blockchain processors or BPUs.

In May 2018, Ebang International launched two new BPU models, Ebit 9.2 and Ebit 9.3, both using 10nm ASIC chips.

In the second quarter of 2018, the trial production of the second-generation 10nm ASIC chip and 7nm ASIC chip front-end design was completed.

In June 2018, Ebang International acquired an additional 48.95% stake in its subsidiary Hong Kong Bit.

Yibang International was delisted from the New Third Board only at the end of March 2018. This means that it is rushing into the capital market again just three months later.

Top Max holds a 53.73% stake and is controlled by Hu Dong. Members of the Hu family hold a total of 13.67%, senior employees hold 5.27%, Hong Kong Li Tian holds 1%, and other shareholders hold 26.30%.

Hu Dong was born in December 1973, of Chinese nationality, with permanent residency in Australia, and a master's degree. He graduated from Zhejiang University of Technology with a bachelor's degree in industrial automation in 1998, and obtained a master's degree in business administration from Zhejiang University in 2008.

Hu Dong has been a teacher at Zhejiang University of Technology since July 1998, and has been the chairman of Zhejiang Ebang Communication Technology Co., Ltd. since January 2010.

According to the introduction, Ebang International intends to develop and provide top-notch BPU for use in Bitcoin and more cryptocurrencies.

Further investment in the research, development and commercialization of new technological innovations, including broader applications of blockchain technology and the latest communications technologies.

Continue to improve the supply chain management of chips and other raw materials and expand production capacity.

Enhance brand image and visibility and expand overseas customer base.

It is reported that another Bitcoin mining machine manufacturer, Canaan Creative, is also rushing to the Hong Kong Stock Exchange after being delisted from the New Third Board. The prospectus shows that Canaan Creative's revenue in 2015, 2016 and 2017 was 47.69 million yuan, 315.87 million yuan and 1.308 billion yuan respectively.

Canaan Creative's annual profits in 2015, 2016 and 2017 were RMB 1.511 million, RMB 52.544 million and RMB 360 million, respectively, with annual profit margins of 3.2%, 16.6% and 27.6%, respectively.

From this perspective, although Ebang International's revenue is not as good as Canaan Creative, its profits are basically at a comparable level. Currently, another company, Bitmain, is also rumored to be preparing for an IPO. Of course, for these companies, the sharp drop in virtual currencies such as Bitcoin this year will be a relatively large challenge.