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HKEX reveal Ebang IPO prospectus, 11% market share in 2017

25 June, Hongkong- Ebang, or producer of E9 miner, have submitted IPO prospectus to HKEX. According to the documents, Ebang’s main business is design of ASIC chips, telecommunications business and its design, production and sales of blockchain processors or “BPUs,” which is commonly referred to as “miners.” According to the Iresearch Consultation Report in 2017, Ebang’s market share was 11.0% on sales revenue and 10.9% on sales, making it one of the world’s top 3 bitcoin mining ASIC chips manufacturers. The company’s branding in miner sales is “Ebit”. In last December, Ebang released the Ebit E9 + + and E10. The DW1228 chips manufactured by Samsung 10nm process could boost E10 hashrate to 18TH / S. In late 2016, the 14nm E9 miner signaled the emergence of the third major producer of bitcoin mining ASIC chips in addition to Bitmain and Canaan (Avalon).

Some critical figures are revealed in the prospectus.

“We sold a total of 158,798 units of BPUS with a total computing power of 1,380,369 TH/Sin 2017.
“The average selling price of our BPUs was RMB 649 per TH/s.”
That’s close to 100 USD per TH/s at current exchange rate. As a result, the company saw a strong momentum of growth.
“Revenue grew by more than 30 times from RMB 29.2 million in 2015 to RMB 925.4 million in 2017.”

The blockchain business accounted for 31.7%, 42.8% and 94.6% of the total revenue from 2015 to 2017, and the gross profit margin was 54.9%, 47.8% and 53.9% respectively.

In the past three years, Ebang’s annual profit was 24.2 million yuan, 11.1 million yuan and 385 million yuan respectively. The decrease in profit in 2016 was mainly due to the increase in R&D expenditure by hiring more R&D personnel and increasing investment in the development of new blockchain products.

Ebang plans to complete design of 7nm ASIC chips in Q2 2018 and release chips mining other cryptocurrencies in Q4 2018.

It’s reported that Ebang and Canaan were seeking to raise 1 billion USD in the IPO. In May, Canaan Creative, the second largest bitcoin mining machine manufacturer, submitted a prospectus to the Hong Kong Stock Exchange. Sources revealed that the Canaan’s IPO was scheduled to be held in July.

In June, Bitmain, the largest mining machine maker, is seeking listing in the United States. A pre-IPO funding shows that the current valuation of Bitmain is 12 billion USD.

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