China News Service, July 22. On July 22, on the first anniversary of the opening of the Science and Technology Innovation Board, Qi'anxin Technology Group Co., Ltd. (hereinafter referred to as "Qianxin"), a leader in the domestic cybersecurity industry, was officially listed for trading. Qi Anxin originally planned to raise 4.5 billion yuan, but the actual fundraising reached 5.719 billion yuan, setting a new high in the A-share fundraising of similar companies.
According to analysis by industry insiders, as leading companies in the industry such as Qi'anxin land on A-shares, there are 24 cybersecurity companies listed in China. The new network security track has been opened and the industry will accelerate the reshuffle.
Qi Anxin, founded in 2014, aims to innovate and develop a new generation of enterprise-level network security products, technologies and services. Although it is regarded as a "new army" in the history of China's network security industry development, its development speed is second to none.
The company's prospectus shows that in 2017, 2018 and 2019, the compound growth rate of Qi Anxin's operating income reached 95.98%, making it one of the fastest growing companies in the industry in recent years. In the 2018 market research report released by CCID Consulting, IDC and other institutions, Qi Anxin ranked first in the market share of terminal security, security management platform, security services, cloud security, terminal security software and other fields.
Qi Anxin's customers have covered most of the central government departments, enterprises and banks directly under the central government. In major national and international events, Qi Anxin, as a major technical unit, has participated in cyber security assurance work. In December 2019, Qi Anxin became the official sponsor of Olympic cyber security services and anti-virus software.
With a series of reforms such as the removal of the profit threshold on the Science and Technology Innovation Board, a new IPO approach with growth and sustainability as the core reference indicators has stepped onto the forefront. Qi Anxin has not made a profit so far. In the past three years, its research and development expenses have been 540 million yuan, 818 million yuan, and 1.047 billion yuan respectively, in exchange for 368 patents of the company, and more than 850 patent applications are under review. Leading in large-scale enterprises.
"The 5.7 billion yuan of funds raised this time will be invested in the construction of a security attack and defense system based on the future network form, covering multiple key and frontier areas of the network security industry." Qi Xiangdong said, "It is the science and technology innovation board that changes the standard of listing from Sustained profitability has been changed to sustainable operation ability, so that outstanding companies with core technologies and a long technology transformation cycle can successfully go public, and use the power of the capital market to further expand and become stronger. The company is in terminal security and big data situation Perception, Internet of Things security and other emerging areas and the "new track" have carried out key layouts, seized market opportunities and enhanced profitability. This listing on the Science and Technology Innovation Board is a new starting point for Qi Anxin’s development."
According to the prospectus, Qi'anxin plans to invest in six major projects this time, including the construction of a cloud and big data security protection and management operation center, and an industrial Internet security service center. Among them, the cyberspace surveying and mapping and security situational awareness platform project intends to establish a trinity security system from prevention to early perception, anticipation and response.
As production and life are fully connected to the Internet, and new infrastructure such as 5G is accelerating, network security risks are increasing. According to a report issued by the National Internet Emergency Response Center, my country's government agencies suffered more than 500,000 phishing email attacks in 2019; the FBI received 460,000 reports of cyber attacks from companies and individuals in 2019. However, compared with developed countries such as the United States, China's network security industry is relatively small. IDC data shows that China's cyber security accounted for only 1.84% of IT investment in 2019, while the United States has reached 4.78%.
Qi'anxin's landing on the Science and Technology Innovation Board may accelerate the reshuffle of the network security industry structure. With the blessing of capital market forces, the development model of the domestic network security market with small and uniform (small-scale, fragmented, and homogeneous) development models is expected to be further rewrite.