NEEQ-listed Company in China Grab 3.31 mln Yuan From Trading Ethereum

As a listed company on NEEQ, Guangzhou Ehangcom Vianet Communications(NEEQ:834212)revealed on its semi-annual report of 2017 that the Company manage to make 3.31 million profits from trading Ethereum via CHBTC. The revenue helps the company to be profitable. It’s the first public disclosure that a listed company in China is actively engaged in cryptocurrency trading.

“Net profit for the reporting period was RMB1,514,373.08, compared with RMB1,797,878.38 for the same period last year, an increase of RMB3,312,251.46 or growth of 184.23%, mainly due to 2 million yuan awarded by the government on being listed in NEEQ and 3.31 million yuan of investment return over Ethereum trading.”

The report said. On page 64, the purchase was specified:

“Ethereum was purchased on 22 July 2016 via CHBTC”

It’s the first time that a listed company in China report gains from cryptocurrency trading.
Ehangcom was the first batch of bitcoin miners in China. Back in 2015, a post on 8btc has revealed the Ehang project, which was boasted to be the biggest Bitcoin mining farm in the world, was in operation with sponsorship from Bitbank.

The mining farm was first reported as “cloud computing” data center in 2015. Ehang was mentioned twice on the government report of Ordos City in February 2015  and July 2016.
The project was considered as a key project as the mining farm was supposed to pay 100 million a year for power. Therefore the project was rushed into operation. It’s reported that the project was in operation without environmental appraisal report, which is a major hurdle for any projects in China. Then Ehang paid 5.1 million a year to rent the 9 workshops built by the local authority so that the miners could be up and running as soon as possible.
Ordos is famous for its rich reserve of coal, which is more convenient to transfer if it is converted into electricity. Also the long, dry and cold winter reduce expenditure on cooling in data center.

It’s reported that the Ehang was paying 0.3869 yuan per kw in 2015, when the project was in operation. One year later, the price dropped to 0.26 yuan, which is less than half of normal charge for industrial business. In 2016, local government even released formal document to apply for premium power price for two enterprises, including Ehang. Later Ehang could enjoy a favourable power price due as its operation was considered as part of big data business.

It’s believed that in May 2016, Ehang sold the data center to Bitmain, the largest supplier of Bitcoin miner in the market.

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