Internal strife in Canaan Technology? Kong Jianping: I did not quit the management

Reporter Zhang Xiaoqing, Editor Liang Xiao

Qixinbao shows that recently, Hangzhou Canaan Creative Information Technology Co., Ltd. has undergone industrial and commercial changes. The former directors Kong Jianping, Sun Qifeng, Li Jiaxuan, and the supervisor Tu Songhua have withdrawn from the main personnel, and Meng Lu has been added as a supervisor. At the same time, Zhang Nangeng was changed from "Chairman and General Manager" to "Executive Director and General Manager", and the corporate liaison was changed from Finance Zhang Jing to Zhang Ning.

Regarding the above personnel changes, this evening (July 9), a reporter from the Daily Economic News contacted Kong Jianping. He said: "I am not too sure. I am on leave recently because of a foot injury. I have not resigned from the management."

Kong Jianping further stated: "Our entire listed company (i.e. Canaan Technology) is structured in Cayman, not in China. Hangzhou Canaan Creative Information Technology Co., Ltd. is also operating normally now."

However, this evening, Canaan Technology posted a message on its official WeChat public account stating that the company "focuses on engineering culture and the management team completes professional iteration."

Image source: Screenshot of Canaan Technology’s WeChat official account

"Canaan's current production and business activities are all normal. After the above-mentioned industrial and commercial changes are completed, Canaan, as a Nasdaq-listed company in the United States, will have Zhang Nangeng serve as the company's executive director, general manager, and legal representative for all its subsidiaries in China, and the corporate governance structure will be clearer and more unified. The company will continue to use ASIC technology as its main channel and promote the 'blockchain + AI' strategy." Canaan Technology stated in the article.

According to the Science and Technology Innovation Board Daily, the change was actually due to infighting within Canaan’s management. People familiar with the matter said that Zhang Nangeng in Beijing was fighting for control with the “Hangzhou Gang”, and that the “Hangzhou Gang” had been marginalized, and the official seal was also controlled by Zhang Nangeng.

In response to this, Kong Jianping told reporters: "I don't know what contradiction they (the media) are talking about."

In April 2015, Kong Jianping and Sun Qifeng joined the company as investors. Beijing Canaan Creative Information Technology Co., Ltd. was subsequently renamed Hangzhou Canaan Creative Information Technology Co., Ltd. and settled in Hangzhou. In February 2016, Kong Jianping further increased his holdings in Hangzhou Canaan Creative Information Technology Co., Ltd.

According to Canaan Technology's 2019 annual report, Kong Jianping and Sun Qifeng have served as directors of the company since May 2018. In addition, Kong Jianping also serves as the company's co-chairman. Li Jiaxuan has served as a director of the company since December 2015. As of the end of 2019, Li Jiaxuan, Zhang Nangeng, Kong Jianping, and Sun Qifeng held 15.2%, 15%, 11.3%, and 5.5% of the shares, respectively, and held 72.6%, 4.9%, 3.6%, and 1.8% of the voting rights, respectively.