The CEO of KNC has given an interview in swedish:
http://digital.di.se/artikel/knc-miner-grundaren-kina-har-fordelar-som-vi-inte-kanner-tillAnd there is this choice comment in it:
"We have tried to calculate the amount of money that the Chinese have invested in mining, we estimate it to be in the hundreds of millions of dollars. Even with free electricity we cannot see how they will ever get this money back. Either they don't know what they are doing, but that is not very likely at this scale or they have some secret advantage that we don't know about"
Also, from this which talks to some investors (translated, but you get the idea)
http://digital.di.se/artikel/knc-agaren-vi-hade-inte-koll-pa-produktenYou are satisfied with the disclosure of KNC?
"We get reports shareholders. KNC build the new circuit board. When they failed to get the right processors, they can not produce the coins fast enough. Then you are not competitive. It's a hardware play this. Like when Saab cars based on an old platform. "