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America's hard work! China's start-up was banned: technology could not be repatriated IPO stranded

via:博客园     time:2020/3/7 9:02:00     readed:92

The U.S. government is doing more and more.

A Beijing-based Chinese technology company has opened branches in the U.S. and plans to go public in the U.S.

This Chinese company is Dachi technology.

Consideration after technology transfer ban

The whole thing will start in July 2019.

the u.s. department of commerce sent a letter in july 2019 informing the chinese technology company darwin technology (CloudMinds): it can not transfer any technology, technical information or even software Bug, from the company's u.s. branch to the china headquarters office in beijing without authorization.

In fact, this is a technology export ban.

美国再出狠手!这家中国创业公司被下禁令:技术无法转回国,IPO

According to reuters report on march 4, the above-mentioned information related to the letter was reuters in a company training video and internal communications.

In addition, according to reuters quoted an anonymous person familiar with the matter, the u.s. department of commerce has not signed any licensing (for darwinian technology).

According to Douglas Jacobson, an expert on export control and sanctions in the United States and a lawyer in Washington, under the ban, Dachi technology can't export any products to China without a license, even office furniture or the iPhone the company is using.

Actually, the restrictions imposed by the Commerce Department's Industrial and Security Agency (BIS) are very broad, and it includes not only a range of commodities, but can even prohibit Chinese citizens working for the company in the United States from acquiring US-origin technology.

Reuters reported that such restrictions were generally based on national security and foreign policy considerations.

At the same time, a former U.S. Department of Commerce official, Washington-based lawyer Kevin Wolf also said that if the U.S. Department of Commerce

In response to questions raised by Reuters in its report, Dachi technology said in a statement that it is fully committed to export control compliance and is taking appropriate measures to ensure compliance with the requirements of the US Department of Commerce.

A spokesman from the U.S. Department of Commerce said he could not deny or confirm any correspondence that had been sent.

This is quite straightforward.

Dachi technology backed by soft silver

Daiwa technology, a robotics company, is founded and CEO by Huang Xiaoqing.

Let's take a look at Huang Xiaoqing's resume:

  • He graduated from Illinois State University in 1984 with a master's degree in electronic engineering and computer science;

  • As a co-founder, UTStarcom was founded in 1995 (the company can be called the originator of PHS, which was successfully listed on NASDAQ in 2000);

  • He has worked in China Mobile for eight years and served as the president of China Mobile Communication Research Institute;

  • In March 2015, Dachi Technology Co., Ltd. was founded.

It is worth mentioning that as a global communications and innovation technology authority, Huang Xiaoqing is the first batch of the country

美国再出狠手!这家中国创业公司被下禁令:技术无法转回国,IPO

About Darren Technology, held at Lei Feng Net in 2016

On several occasions, Huang Xiaoqing also expressed the ambition of Dachi Technology: to build a housekeeper robot by 2025.

As the product landed, the company's first product was the cloud guide robot META. released in February 2017

Later, the company implemented a number of cloud intelligent products landing, including Cloud Pepper service robots, security robots, cloud AI Raman material detection terminals, security patrol robots, global control grab robot, robot controller DATA and other intelligent products

At the capital level, Softbank Corp., the biggest shareholder behind Delta Technologies, holds as much as 35%, while Huang holds only 17.4%.

In 2016, Dachi technology completed the seed financing of US $30 million, Softbank China capital led the investment with us $10 million, followed by Foxconn and Huadeng International; in the round a investment in 2017, Softbank added again, with a total investment of US $100 million in cooperation with Foxconn, Qiming star and many other investors.

However, according to Lei Feng, Softbank and Dachi technology are not only investment relations, but also actual business cooperation relations.

On May 30, 2018, Softbank group and Dachi technology announced to jointly develop the authentication solution based on blockchain, and both parties have jointly developed a new technology of authentication platform based on blockchain and mobile operator authentication platform.

According to some sources, in the early days of UT's development, Softbank Corp. invested in it, and Huang Xiaoqing and Softbank Corp.'s leader Sun Zhengyi had already known.

The tortuous and gloomy way of American IPO

In July 2019, Dachi technology officially submitted the prospectus to the US SEC.

According to the prospectus, Dachi technology's revenue in 2017 was US $19.237 million, while that in 2018 was US $121 million; the revenue in the first quarter of 2019 was US $12.4 million, lower than that in the same period last year of US $32.7 million. But at the same time, Dachi technology had a net loss of US $59.9 million in the first quarter of 2019, compared with us $28.9 million in the same period last year.

In September 2019, the company updated its prospectus, which showed that in the first half of 2019, the company had a revenue of $148 million and a loss of nearly $100 million.

During the whole listing application process, Dachi technology did not mention the letter from the U.S. Department of Commerce.

美国再出狠手!这家中国创业公司被下禁令:技术无法转回国,IPO

According to Reuters quoted people familiar with the matter, Dachi technology did not change its technology transfer mode after the letter from the US Department of Commerce in July 2019; from the internal training video of November 2019, employees were surprised and confused by the export and technology restrictions from the US government.

Of course, Dachi technology is not listed on the entity list like Huawei. In theory, it can still do business with American companies.

However, leifeng learned that if u.s. export restrictions are not complied with, dada technology will be severely punished, including a civil penalty of $300,000 for each violation of the law, and a fine of $1 million or even criminal imprisonment for flagrant violation of the ban on commerce.

According to Reuters, Dachi technology said in a statement that the U.S. Department of Commerce has no allegations that it did not comply with U.S. export restrictions.

In addition, as reported by Reuters in January 2020, earlier this year, Dachi technology started to close its main U.S. office in Silicon Valley and cut jobs sharply when cash ran out.

Now, under the U.S. government's ban, the IPO path of Dachi technology's business development in the U.S. is even more bleak.

In any case, this is not a good thing.

Reference source:

https://www.reuters.com/article/us-softbank-group-cloudminds-exclusive/exclusive-softbank-backed-cloudminds-blocked-from-exporting-us-tech-to-china-idUSKBN20R07Q

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