Yibang International is about to go public, is it hi? Is it worry?

Rossa

2020-06-23 11:55 (UTC+8)

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Whether this step is really as listed companies wish, attracting a large amount of traditional funds and providing continuous financial support for the company depends on whether they have real hard power and can give investors better returns.

Editor's Note: This article comes fromRossa Private Thoughts Exchange (ID: rossa_1581), Author: Rossa, reproduced by Odaily with authorization.

Editor's Note: This article comes from

Rossa Private Thoughts Exchange (ID: rossa_1581)

, Author: Rossa, reproduced by Odaily with authorization.

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1. Mining giant Ebang International is about to land on NASDAQ

In the past two days, in addition to the sharp rise of COMP that has attracted a lot of attention, another event that has attracted much attention in the currency circle is Ebang International. Because Yibang International is expected to land on Nasdaq on June 26, issue 19.3 million shares at 4.5-6.5 US dollars, and plan to raise 125 million US dollars. This is the second company in the currency circle to go to the US stock market for listing.

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2. The road to listing of mining machine companies has twists and turns

It is not the first time for Ebang International to go public in the United States. Its development history can be traced back to Zhejiang Ebang in 2010. It is mainly engaged in communication network access equipment and related equipment. After the rise of the blockchain in 2014, it began to develop, produce, and sell blockchain processors BPU, also known as mining machines. On August 19, 2015, Zhejiang Yibang was listed on the New Third Board. Two and a half years later, on March 23, 2018, it was delisted from the New Third Board, preparing for restructuring and preparing to be listed in Hong Kong. The explanation for the delisting incident is: the directors of Zhejiang Yibang believe that the trading of shares listed on the NEEQ has not been active, so it is decided that the group will delist from the NEEQ and apply in Hong Kong to conform to the best interests of the group.” However, the company tried twice to land on the Hong Kong Stock Exchange, but both failed, and then turned to the US stock market.

Similar to Ebang International, Bitmain, the No. 1 mining machine company, moved to the U.S. stock market last year after submitting to the Hong Kong stock market for listing and was sentenced to death. In October 2019, Bitmain secretly submitted a listing application to the SEC, but it has been 9 months since the IPO submission and has not yet been listed. And with Bitmain's recent civil strife, Bitmain's dominance of mining machines is in jeopardy.

Canaan, the first mining machine company to be successfully listed on the US stock market, has also failed the capital market three times. On November 21, 2019, Canaan was officially listed on NASDAQ in the United States. But after the listing, the stock price has been falling steadily. From the highest price of $13 on the day of listing, it recently fell to $1.9, a drop of up to 85%, which is comparable to the decline of Bitcoin during the bear market. Although it is a stock price, it is out of the fluctuation range of the currency price.

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3. Ebang International’s listing speculation

If there is no accident, Ebang International will ring the bell on Nasdaq this Thursday. Although Bitcoin is now in a transitional stage between bulls and bears, Ebang International still has to face several hurdles when it goes public at this point in time, and it will definitely not There are several reasons for having a good price:

1. In terms of performance, according to the IPO documents, in 2018 and 2019, its revenue from bitcoin mining machines and related accessories accounted for 96.3% and 82.4% of its total revenue, respectively. The data shows that Yibang International has continued to decline in recent years. In 2018, the company had revenue of US$319 million and a net loss of US$11.8 million; in 2019, the company had revenue of US$109.1 million, a year-on-year decrease of 66%, and a net loss of US$41.1 million. In the first quarter of 2020, Ebang International's net loss continued to expand, with a loss of US$2.5 million.

In the second half of 2019, Ebang International was caught in a lawsuit over the quality of mining machines. A number of mining machine consumers took Ebang International to court and demanded huge compensation. According to the prospectus, in December 2017, Ebang International sold 13 million yuan of mining machines to a customer, but was sued by the customer due to discrepancies in delivery time, product performance and product specifications, and the lawsuit amounted to 53.9 million yuan.

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These debt collection rights protection and litigation disputes will seriously affect the image and reputation of Yibang International, and greatly reduce the intangible assets of the company.