Company Overview
Yihang Interconnection (834212), a New Third Board-listed company, made headlines by generating $700K profit from a $500K Ethereum investment while struggling with its core telecom business.
Strategic Investment Breakdown
1. Virtual Asset Investments
Ethereum Trade:
- Invested $500K in July 2016 via subsidiary Shenzhen Yikete.
- Sold positions between March-November 2017, netting $698.4K profit (139.7% return).
Bitcoin Mining:
- Partnered with Biyin Ltd. on "IP Cloud Box" mining (55% profit share).
- Recovered $500K investment by September 2016, earning $179.1K in 2017.
2. Traditional Investments
- Stable Assets: Allocated $900K to bank/money market funds (April 2017).
- Equities: Invested $653K in stocks (Aug-Dec 2017) with minor losses offset by bond回购 gains.
Financial Performance
| Year | Revenue ($) | Net Profit ($) | Core Business Status |
|---|---|---|---|
| 2015 | 3.25M | - | Operating loss |
| 2016 | 2.63M | 82.4K | -669K (ex-investments) |
| 2017 | 2.05M | 355K (+330%) | Sustained by investments |
Without investment income, the company would have reported consecutive annual losses.
Market Challenges
- Industry Pressure: Competition from Tencent/Alibaba reduced traditional telecom demand.
- Product Transition: Delayed next-gen product launches amid operator policy changes.
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FAQ Section
Q: How did Yihang identify this investment opportunity?
A: Leveraging subsidiary expertise in virtual assets during the 2016-2017 crypto bull market.
Q: What's the company's current shareholder structure?
A: 11 shareholders including Beijing Tongchuang (14.5% stake since 2013).
Q: Does the company plan further crypto investments?
A: No public announcements post-2017; focus remains on telecom R&D.
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Note: All financial data reflects historical performance; cryptocurrency investments carry high risk.
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