China's Qulian Technology dealing in the blockchain segment and developing the Hyperchain project has reportedly announced the end of the Series B financing round, with CNY 1.5 billion ($234 million) being invested by Shanghai-based Xinhu Zhongbao.
Xinhu Zhongbao intended to invest CNY 1.23 billion ($192 million) into the mentioned company via $17 million and acquisition of new shares worth $175 million. After the agreement, the company has acquired a 49% stake in Qulian. After the contract, the company value was estimated at $234 million, meanwhile, back in April Xinhu Zhongbao estimated it at $78 million.
With some 3-fold increase over two months, the company has met the eye of Chinese authorities. According to the media, the Shanghai Stock Exchange sent a request letter to the leading investor asking for an explanation of such dramatic change of the assessment.
At the same time, the investor said that the revised value is based on the complex assessment of Qulian.
"This is a business judgement made by the company and other co-investors based on a comprehensive evaluation of Qulian. There is a risk of a mismatch in (Qulian's) income and valuation," reported Coindesk citing Xinhu Zhongbao.
Last year Xinhu Zhongbao's data showed that Qulian generated revenue of $281,000 and net debt – $2.34 million.