Six Year IPO Of Qianxin: Market Value Exceeds 90 Billion, Technology VC Ushers In Harvest Period

On July 22, Qianxin, a network security enterprise, was listed on the science and technology innovation board, and its share price rose 138% in the opening session. According to the closing price of 133.55 yuan on the first day of listing, the market value of qi'anxin is 90.763 billion yuan.

The IPO of qi'anxin originally planned to raise 4.5 billion yuan, but by the time of listing, it had raised 5.719 billion yuan, a new high of A-share of the same type of enterprises. It is reported that all the funds raised by Qianxin IPO will be invested in the construction of security attack and defense system based on the future network form.

"This outlet has lasted for at least 20 years. Although there is a new epidemic this year, the global network security incidents occur frequently, the security construction is imminent, the digital application scenarios are constantly expanding, and the demand for network security is increasing sharply." Qi Xiangdong, chairman of Qi Anxin, said.

According to the prospectus, Qi Anxin's R & D expenses have increased year by year in the past three years, which are 540 million yuan, 818 million yuan and 1 047 billion yuan respectively, and the corresponding losses attributable to the owners of the parent company are narrowing to 629 million yuan, 872 million yuan and 495 million yuan respectively.

"At present, profit has not been fully reflected, which is a typical feature of high growth enterprises," said Tao Ye, a partner of Kaixuan venture capital. In the initial stage of listing, Amazon, Qualcomm and other high-tech enterprises did not achieve profits. "The company continues to invest a lot of gross profit into future R & D, just to build stronger profitability in the future."

Veteran entrepreneurs

Qianxin was founded in 2014. Qi Xiangdong is the former president of Qihoo 360. His goal of founding qi'anxin is to develop a new generation of network security product technology and system, and provide network security services for the government and enterprises.

Nowadays, Qianxin has become the head enterprise in the network security industry. According to the 2018 Market Research Report released by CCID Consulting, IDC and other institutions, Qianxin ranks first in the market share of terminal security, security management platform, security services, cloud security, terminal security software and other fields.

From the perspective of enterprise revenue, Qianxin's operating revenue in 2017, 2018 and 2019 were 821 million yuan, 1.816 billion yuan and 3.154 billion yuan respectively, with a compound growth rate of 95.98% in the three years.

Qianxin is the largest project invested by boiling point capital RMB fund, and it is also the second listed company gained by the latter in the past three years. As for Qianxin's listing, boiling point capital's founding partner Tu Hongchuan said that in the process of cooperation with government and enterprise institutions, qi'anxin has verified its leading position in safety product technology, and the company has high technical and talent barriers.

According to the data of CCID, in the global network security market, security services accounted for 63.9% in 2019, while only 12.1% in China. In 2018, the total market share of the top five network security manufacturers in the domestic industry was about 21.9%, and the market share of a single manufacturer was no more than 10%.

This means that in the face of fragmented and decentralized market, Qianxin's landing on the science and technology innovation board is of great significance. It will not only benefit the enterprise itself, but also promote the systematic development of the industry ecology.

VC group blessing

Since the first round of financing was launched at the end of 2016, Qianxin has been warmly welcomed by domestic first-line investment institutions. Among them, there are reasons for the veterans in the security field to start their own businesses, and there is also the background of the outbreak of the network security industry.

In the market environment at that time, the global network security incidents occurred frequently, the security construction was imminent, and the digital application scenarios were constantly expanding, which made the demand of network security increase sharply.

In addition to the successful investment in Amway and Hutchison, other companies, such as Amway and Hutchison, were able to invest in the fields of Amway and Hutchison in the early stage, such as Amway and Hutchison.

Judging from the listing situation, by the end of November 2019, there are 23 network security enterprises listed in China. The addition of qi'anxin will inject fresh blood into the capital market of network security and accelerate the industry reshuffle.

Niu kuiguuang, partner of IDG capital, said that as one of the long-term investment fields of IDG capital, enterprise security has become a high-speed growth track. In the past few years, the situation of insufficient attention and investment of domestic enterprises in information security construction will be changed. As the country pays more and more attention to and makes up for the historical debts and continues to invest, the market will usher in sustained high-speed growth.

21st century economic reporter learned that Qianxin is the first project of boiling point capital RMB fund, and also the first enterprise listed on the science and technology innovation board in RMB business of Kaixuan venture capital in recent years.

"In addition to a large enough market and favorable policies, what gives us a lot of confidence is that R & D personnel account for nearly 40% of the nearly 7000 employees of Qianxin, which is in a leading position in knowledge and technology intensive industries."

According to the information disclosed, Qianxin's R & D investment is equivalent to 1 / 7 of the total R & D investment of 63 science and technology innovation board enterprises in 2019; as of the end of last year, Qianxin and its subsidiaries have 368 patents, and more than 850 patent applications are under review.