Exclusive: Ebang International starts listing on the US stock market! Officially submitting the prospectus may become the second listed mining machine company

Wu Blockchain exclusively learned that Ebang International, the main body of Yibit Mining Machine, has officially submitted its prospectus, starting the road to listing on the U.S. stock market.

According to the prospectus, Yibang International's revenue in 2018 and 2019 was US$319.0 million and US$109.1 million, respectively. Its gross profit in 2018 was US$24.4 million, and its gross loss in 2019 was US$30.6 million. Its net losses in 2018 and 2019 were US$11.8 million and US$41.1 million, respectively.

In terms of revenue distribution, in 2018 and 2019, the sales of Ebang Bitcoin mining machines and related accessories accounted for 96.3% and 82.4% of revenue, respectively. The revenue from providing mining machine hosting services accounted for 2.4% and 14.4% of revenue in 2018 and 2019, respectively.

In terms of customers, in 2018 and 2019, Yibang's revenue from sales to Chinese customers accounted for 91.4% and 87.5% of total revenue, respectively, while sales to customers outside of China, such as customers in North America, Central Asia and Southeast Asia, accounted for 8.6% and 12.5%, respectively.

As of December 31, 2019, Yibang's R&D teams across China had a total of 98 employees, accounting for approximately 41% of the total number of employees. The total number of employees is over 200. In 2018 and 2019, Yibang's R&D expenses were US$43.5 million and US$13.4 million, respectively.

In 2019, Ebang's purchases of ASIC chips from Samsung and others directly from Samsung were the largest, accounting for 43.8% of the total purchases of raw materials and subcontracting services for production purposes.

Ebang International is likely to become the second listed mining machine company. The first listed mining machine company, Canaan, was listed in the United States in the fourth quarter of last year.

Ebang International believes that it has certain advantages in technology. It has completed the design of 8nm ASIC chips and 7nm ASIC chips, and is currently focusing on developing proprietary 5nm ASIC chips and mining machines for non-Bitcoin cryptocurrencies, such as Litecoin and Monero. In the future, it plans to start with cryptocurrency mining business and explore the application of blockchain technology to non-cryptocurrency industries, such as financial services and healthcare industries.

Full text of the prospectus: https://www.sec.gov/Archives/edgar/data/1799290/000121390020010071/ea121021-f1_ebanginter.htm