UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
Canaan Inc.
(Name of Issuer)
Class A Ordinary Shares, par value US$0.00000005 per share
(Title of Class of Securities)
134748 102(1)
(CUSIP Number)
December 31, 2019
(Date of Event which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
☐ Rule 13d-1(b)
☐ Rule 13d-1(c)
☒ Rule 13d-1(d)
| * | The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. |
The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
| (1) | This CUSIP number applies to the Issuer’s American Depositary Shares, each representing 15 Class A ordinary shares. |
SCHEDULE 13G
CUSIP No. 134748 102
| 1 | Names of Reporting Persons
Nangeng Zhang | |||||
| 2 | Check the appropriate box if a member of a Group (see instructions) (a) ☐ (b) ☐
| |||||
| 3 | SEC Use Only
| |||||
| 4 | Citizenship or Place of Organization
People’s Republic of China | |||||
| Number of Shares
Each |
5 | Sole Voting Power
356,624,444(1) | ||||
| 6 | Shared Voting Power
0 | |||||
| 7 | Sole Dispositive Power
356,624,444(1) | |||||
| 8 | Shared Dispositive Power
0 | |||||
| 9 |
Aggregate Amount Beneficially Owned by Each Reporting Person
356,624,444(1) | |||||
| 10 | Check if the aggregate amount in row (9) excludes certain shares (See Instructions) ☐
| |||||
| 11 | Percent of class represented by amount in row (9)
100.0% of Class B ordinary shares. 15.0% of total ordinary shares, assuming conversion of all Class B ordinary shares into Class A ordinary shares.(2) The voting power of the shares beneficially owned represent 72.6% of the total outstanding voting power.(3) | |||||
| 12 | Type of Reporting Person (See Instructions)
IN | |||||
| (1) | Represents 356,624,444 Class B ordinary shares held by Flueqel Ltd. |
| (2) | The percentage of the class of securities beneficially owned by each reporting person is calculated based on 2,372,222,222 issued and outstanding ordinary shares as a single class, being the sum of 2,015,597,778 Class A ordinary shares and 356,624,444 Class B ordinary shares of the Issuer issued and outstanding as of December 31, 2019, assuming conversion of all Class B ordinary shares into Class A ordinary shares. |
| (3) | The percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of Class A ordinary shares and Class B ordinary shares of the Issuer issued and outstanding as of December 31, 2019. In respect of all matters subject to a shareholders’ vote, each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to 15 votes, voting together as one class. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. |
Page 2 of 7
| 1 | Names of Reporting Persons
Flueqel Ltd. | |||||
| 2 | Check the appropriate box if a member of a Group (see instructions) (a) ☐ (b) ☐
| |||||
| 3 | SEC Use Only
| |||||
| 4 | Citizenship or Place of Organization
British Virgin Islands | |||||
|
Number of Shares Each |
5 | Sole Voting Power
356,624,444(1) | ||||
| 6 | Shared Voting Power
0 | |||||
| 7 | Sole Dispositive Power
356,624,444(1) | |||||
| 8 | Shared Dispositive Power
0 | |||||
| 9 | Aggregate Amount Beneficially Owned by Each Reporting Person
356,624,444(1) | |||||
| 10 | Check if the aggregate amount in row (9) excludes certain shares (See Instructions) ☐
| |||||
| 11 | Percent of class represented by amount in row (9)
100.0% of Class B ordinary shares. 15.0% of total ordinary shares, assuming conversion of all Class B ordinary shares into Class A ordinary shares.(2) The voting power of the shares beneficially owned represent 72.6% of the total outstanding voting power.(3) | |||||
| 12 | Type of Reporting Person (See Instructions)
CO | |||||
| (1) | Represents 356,624,444 Class B ordinary shares held by Flueqel Ltd. |
| (2) | The percentage of the class of securities beneficially owned by each reporting person is calculated based on 2,372,222,222 issued and outstanding ordinary shares as a single class, being the sum of 2,015,597,778 Class A ordinary shares and 356,624,444 Class B ordinary shares of the Issuer issued and outstanding as of December 31, 2019, assuming conversion of all Class B ordinary shares into Class A ordinary shares. |
| (3) | The percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of Class A ordinary shares and Class B ordinary shares of the Issuer issued and outstanding as of December 31, 2019. In respect of all matters subject to a shareholders’ vote, each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to 15 votes, voting together as one class. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. |
Page 3 of 7
| Item 1. | |
| (a) | Name of Issuer: |
Canaan Inc.
| (b) | Address of Issuer’s Principal Executive Offices: |
30/F, Dicara Silver Tower
29 Jiefang East Road
Jianggan District, Hangzhou 310016
People’s Republic of China
| Item 2. | |
| (a) | Name of Person Filing: |
| (i) | Nangeng Zhang, a citizen of the People’s Republic of China; and |
| (ii) | Flueqel Inc. (“Flueqel”), a company organized under the law of the British Virgin Islands and is wholly-owned by Nangeng Zhang. |
| (b) | Address of Principal Business Office or, if None, Residence: |
| (i) | The address of Nangeng Zhang is 30/F, Dicara Silver Tower, 29 Jiefang East Road, Jianggan District, Hangzhou 310016, People’s Republic of China. |
| (ii) | The registered address of Flueqel is Sertus Chambers, P.O. Box 905, Quastisky Building, Road Town, Tortola, British Virgin Islands. |
| (c) | Citizenship: |
Nangeng Zhang is a citizen of the People’s Republic of China. Flueqel is organized under the law of the British Virgin Islands.
| (d) | Title and Class of Securities: |
Class A ordinary shares, par value US$0.00000005 per share. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances.
| (e) | CUSIP No.: |
134748 102
| Item 3. | If this statement is filed pursuant to §§ 240.13d-1(b), or 240.13d-2(b) or (c), check whether the person filing is a: |
Not applicable.
Page 4 of 7
| Item 4. | Ownership |
| Reporting Person(1) |
Amount beneficially owned |
Percent of class(2) |
Sole power to vote or direct to vote(2) |
Shared power to vote or to direct the vote |
Sole power to dispose or to direct the disposition of(1) |
Shared power to dispose or to direct the disposition of |
Percentage of aggregate voting power(3) |
|||||||||||||||||||||
| Nangeng Zhang |
356,624,444 | 15.0 | % | 356,624,444 | 0 | 356,624,444 | 0 | 72.6 | % | |||||||||||||||||||
| Flueqel |
356,624,444 | 15.0 | % | 356,624,444 | 0 | 356,624,444 | 0 | 72.6 | % | |||||||||||||||||||
| (1) | As of December 31, 2019, Flueqel directly owned 356,624,444 of the Issuer’s Class B ordinary shares. Flueqel is indirectly wholly owned by a trust of which Nangeng Zhang and his family members are the beneficiaries. Accordingly, Nangeng Zhang may thereby be deemed to beneficially own the 356,624,444 Class B ordinary shares owned by Flueqel. |
| (2) | The percentage of the class of securities beneficially owned by each reporting person is calculated based on 2,372,222,222 issued and outstanding ordinary shares as a single class, being the sum of 2,015,597,778 Class A ordinary shares and 356,624,444 Class B ordinary shares of the Issuer issued and outstanding as of December 31, 2019, assuming conversion of all Class B ordinary shares into Class A ordinary shares. |
| (3) | The percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of Class A ordinary shares and Class B ordinary shares of the Issuer issued and outstanding as of December 31, 2019. In respect of all matters subject to a shareholders’ vote, each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to 15 votes, voting together as one class. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. |
| Item 5. | Ownership of Five Percent or Less of a Class. |
Not applicable.
| Item 6. | Ownership of more than Five Percent on Behalf of Another Person. |
Not applicable.
| Item 7. | Identification and classification of the subsidiary which acquired the security being reported on by the parent holding company or control person. |
Not applicable.
| Item 8. | Identification and classification of members of the group. |
Not applicable.
| Item 9. | Notice of Dissolution of Group. |
Not applicable.
| Item 10. | Certifications. |
Not applicable.
Page 5 of 7
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct.
Dated: February 14, 2020
| Nangeng Zhang | ||
| By: | /s/ Nangeng Zhang | |
| Name: | Nangeng Zhang |
| Flueqel Ltd. | ||
| By: | /s/ Nangeng Zhang | |
| Name: | Nangeng Zhang | |
| Title: | Authorized Signatory |
Page 6 of 7
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Joint Filing Agreement | |
Page 7 of 7
Exhibit 99.1
Joint Filing Agreement
In accordance with Rule 13d-1(k) promulgated under the Securities Exchange Act of 1934, as amended, the undersigned hereby agree to the joint filing on behalf of each of them of a statement on Schedule 13G (including amendments thereto) with respect to the Class A ordinary shares, US$0.00000005 par value per share, of Canaan Inc., a Cayman Islands company, and that this Agreement may be included as an Exhibit to such joint filing. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument.
[Signature Page Follows]
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement as of February 14, 2020.
| Nangeng Zhang | ||
| By: | /s/ Nangeng Zhang | |
| Name: | Nangeng Zhang |
| Flueqel Ltd. | ||
| By: | /s/ Nangeng Zhang | |
| Name: | Nangeng Zhang | |
| Title: | Authorized Signatory |