嘉楠科技IPO招股书（英文）-2019.10-260页_5mb

Canaan Inc. IPO Summary

Core Content

Canaan Inc. is a Cayman Islands holding company that operates through its PRC subsidiaries, primarily focused on providing supercomputing solutions via proprietary high-performance computing ASICs. The company is offering an initial public offering (IPO) of American Depositary Shares (ADSs), each representing one Class A ordinary share. The proposed maximum aggregate offering price is US$400,000,000, with a registration fee of US$51,920. The ADSs will be listed on the Nasdaq Global Market under the symbol "CAN."

Main Points

Offering Overview

• Securities Offered: American Depositary Shares (ADSs), representing Class A ordinary shares.
• Maximum Offering Price: US$400,000,000.
• Registration Fee: US$51,920.
• Listing: Nasdaq Global Market under the symbol "CAN."
• Underwriters: Credit Suisse, Citigroup, China Renaissance, CMBI, Galaxy Digital Advisors LLC, Huatai Securities, Tiger Brokers.
• Initial Public Offering Price: Estimated between US$ and US$ (not fully specified).
• Underwriter Option: Underwriters have a 30-day option to purchase up to an additional number of ADSs.

Share Structure

• Class A and B Shares:
  • Class A: 1 vote per share, non-convertible.
  • Class B: 15 votes per share, convertible into Class A at any time.
• Ownership: Nangeng Zhang, Chairman and CEO, beneficially owns 100% of Class B shares.
• Share Capital:
  • Before the offering: Class A and B shares.
  • After the offering: Share capital will be re-designated into Class A and B shares.

Business Highlights

• Supercomputing Solutions: Through proprietary ASICs designed for Bitcoin mining and AI applications.
• Market Position:
  • Second largest designer and manufacturer of Bitcoin mining machines (based on computing power sold in 6 months ended June 30, 2019).
  • 21.9% of global Bitcoin mining machine computing power sold during the same period.
• Technological Advancements:
  • First to deliver commercial edge computing AI chips based on RISC-V architecture and self-developed neural-network accelerators.
  • Mastery of the full IC design process.
  • High production capacity, with over 130 million ASICs produced in 2017 and 2018.
  • 100% success rate for all seven tape-outs.
• Supply Chain: Partners with leading manufacturers like TSMC, Samsung, STATS ChipPac, ASE, and SPIL.

Financial Performance

• Total Revenues:
  • 2017: RMB1,308.1 million.
  • 2018: RMB2,705.3 million (US$394.1 million).
  • 6 months ended June 30, 2019: RMB288.8 million (US$42.1 million).
• Net Income:
  • 2017: RMB375.8 million.
  • 2018: RMB122.4 million (US$17.8 million).
  • 6 months ended June 30, 2019: Net loss of RMB330.9 million (US$48.2 million).
• Adjusted Net Income (Non-GAAP):
  • 2017: RMB471.3 million.
  • 2018: RMB141.0 million (US$20.5 million).
  • 6 months ended June 30, 2019: Adjusted net income of RMB226.2 million (US$16.0 million).

Risk Factors

• Bitcoin Price Volatility: Directly affects demand and inventory value.
• Regulatory Risks: PRC government may classify cryptocurrency mining as an eliminated industry.
• Market Acceptance: Uncertainty around the adoption of Bitcoin and blockchain.
• Technological Changes: Rapid advancements in AI and blockchain could impact competitiveness.
• Research and Development Uncertainties: Risks associated with R&D activities.
• Supplier Reliance: Limited number of suppliers could affect operations.

Competitive Strengths

• Leadership in Supercomputing: Strong presence in Bitcoin mining and AI solutions.
• Fast Time-to-Market: Efficient product development and commercialization.
• Innovation in AI: First to deliver commercial edge computing AI chips on RISC-V.
• Production Track Record: Strong supply chain and high yield rates.
• Sustainable AI Investments: Commitment to long-term AI development.
• Talented Team: Visionary management and R&D teams.

Growth Strategies

• Strengthen Leadership: Expand in supercomputing solutions.
• Invest in High Efficiency ICs: Focus on power-efficient ASICs.
• Introduce New AI Products: Continue innovation in AI offerings.
• Enhance AI Platform: Build a comprehensive AI solution model.
• Improve Supply Chain: Strengthen management and operations.
• Expand Overseas Operations: Increase international presence.

Corporate Structure

• Principal Offices:
  • In China: 30/F, Dicara Silver Tower, Hangzhou.
  • In Cayman Islands: Sertus Chambers, Grand Cayman.
• Agent for Service: Cogency Global Inc.
• Website: www.canaan-creative.com (not part of the prospectus).
• Emerging Growth Company Status: Qualifies under the JOBS Act, allowing reduced reporting requirements.

Key Information

• IPO Date: As soon as practicable after the effective date.
• Filing and Effectiveness: The prospectus will be effective upon filing with the SEC.
• Currency: Reporting in Renminbi (RMB), with USD translations based on the exchange rate of RMB6.8650 to USD1.00.
• Legal Disclaimer: The SEC has not approved or disapproved the offering; investors must rely only on the information in this prospectus.