An actual controller of Canaan Creative quits the "executive group"

Tianyancha information shows that the industrial and commercial information of mining machine giant Canaan Creative has changed. Major shareholder Liu Xiangfu has disappeared from the board of directors, and supervisor Qin Fengling has also been changed to a person named Tu Songhua.

Canaan Creative's prospectus shows that Liu Xiangfu holds 17.6103% of the shares of the listed entity and is one of the actual controllers. He and two other founders and shareholders control the company through a unanimous action agreement.

On February 12, Coindesk quoted insiders as saying that Liu Xiangfu had left his daily management position and no longer served as a member of the executive board of Canaan Inc., the holding company of Canaan Creative, because Liu Xiangfu had differences with the company's overall strategic development.

Coindesk said that Canaan's management hopes to continue to build the company into a manufacturer focused on cryptocurrency mining and artificial intelligence chips. Canaan itself does not mine or operate mining pools, and the leadership hopes to maintain this status in order to better achieve an IPO.

However, Liu Xiangfu, who has a background in computer technology, believes that in the blockchain industry, hardware and software cannot be completely separated. As a company that produces mining machines, it cannot completely separate itself from the mining farm and mining pool business.

Regarding Liu Xiangfu's movements, on February 13, Shenlian Finance verified with an insider of Canaan Creative, who responded: "The facts are basically as the media said. Liu Xiangfu is indeed slowly fading out of the company's management."

Regarding Liu Xiangfu no longer serving as an executive board member and his disagreements with the company's strategic philosophy, the insider did not explicitly deny it, but only said that Canaan Creative is currently seeking an IPO and all news must wait for official announcements.

The previous prospectus showed that in July 2006, Liu Xiangfu obtained a bachelor's degree in computer science and technology from Changchun University. In April 2013, he joined Canaan Creative and in December became a new shareholder following Zhang Nangeng and Li Jiaxuan.

In 2015, after completing a new round of capital injection, Zhang, Li and Liu held 33.4%, 33.4% and 33.2% of Canaan Creative's shares respectively.

As of the release of the prospectus in 2018, the three persons as controlling shareholders held a total of 52% of the shares, namely: Zhang Nangeng 17.6010%, Li Jiaxuan 17.2006%, and Liu Xiangfu 17.6103%.

Zhang Nangeng, Li Jiaxuan, Liu Xiangfu and others signed a joint action agreement on May 10, 2018, and the controlling shareholders jointly managed and controlled the company as a unit and voted unanimously at all board meetings and shareholders' meetings.

As to whether Liu Xiangfu's departure will have an impact on the company's control, a lawyer explained to Shenlian Finance: if one of the persons acting in concert simply resigns and does not transfer shares, there will not be much of a problem. If the shares are also lost, it will lead to a change in the actual controller.

There is currently no news indicating any changes in Liu Xiangfu’s shareholding.

In addition, it can be found from the prospectus that in terms of company management, there is a clear division among senior executives. Zhang Nangeng is mainly responsible for formulating and supervising product development, the group's overall development strategy and operations, while Li Jiaxuan is mainly responsible for the group's finances.

Liu Xiangfu, who has many years of experience in software development and projects, is responsible for overseeing the group's overseas marketing activities.

In addition, Tianyancha information shows that Liu Xiangfu is also a major shareholder of Beijing Chuangxiang Technology Co., Ltd., Beijing Aisha Technology Co., Ltd., and Hangzhou Canaan Superchip Investment Management Partnership.

Regarding the new supervisor Tu Songhua, public information shows that he is the public affairs director and party branch secretary of Canaan Creative, while Qin Fengling is the manager of Canaan Creative's software department.

Canaan Creative's road to listing has been full of twists and turns, with failed attempts at listing on the Shenzhen Stock Exchange, the New Third Board, and the Hong Kong Stock Exchange. In January, news broke that Canaan Creative was considering listing in the United States.

Currently, Canaan Creative, which is determined to go public, is facing disagreements and divisions among its senior executives. Will the road to going public, which was already bumpy, become smooth?