Qianxin IPO Breaks The Audit Record Of Science And Technology Innovation Board

At the time when the opening of the science and technology innovation board is about to turn one year old, the audit speed of the scientific and technological innovation board was significantly accelerated in June. Only 18 companies in the world have been attracted by the speed of the Internet Audit.

According to the official website of Shanghai Stock Exchange, on June 23, Qianxin Technology Group Co., Ltd. (hereinafter referred to as Qianxin) will welcome the science and technology innovation board meeting. Looking at the project schedule, the company's audit speed can not be underestimated.

Qianxin's IPO application for the science and technology innovation board was accepted by the Shanghai Stock Exchange on May 11. After two rounds of inquiry, the examination took 43 days. If successful, this speed will break the audit record of Cambrian, second only to SMIC.

Qianxin was first known as "a company of 360 group", and the actual controller was Qi Xiangdong, the second most famous figure of 360. One year after breaking up with 360, Qi Xiangdong led the leading network security service company in China to knock on the door of the science and technology innovation board.

Whether it was the label of "360 series", Qi Xiangdong's name, or the 43 day audit speed, it is enough to attract the market's attention to Qianxin.

After the separation from 360

This "love hate entanglement" with 360 group is a history that Qi Anxin cannot avoid.

Founded in June 2014, Qianxin's main business is to provide enterprise level network security products and services to government enterprise customers. Qianxin was originally the company responsible for enterprise security business of 360 group, and has been deeply engaged in the field of network security for a long time. Qi Xiangdong, the actual controller and chairman of the company, has been working with Zhou Hongyi for many years and has been regarded as the second leader of 360.

On April 12, 2019, 360 transferred 22.59% of Qianxin's equity to China Electronic Information Industry Group Co., Ltd., with a transaction amount of 3.731 billion yuan, and withdrew the 360 brand authorization granted to Qianxin. It marks Qianxin's formal decoupling from 360 and the completion of the gorgeous turn of the "national team" of network security.

As for the so-called "separation", Zhou Hongyi once explained at the media exchange meeting that year that "helping qi'anxin go public mainly solves the problem of listing independence. Zhou Hongyi also revealed that Qi Xiangdong's wish is to bring a listed company with him.

Qi Xiangdong has publicly announced that Qi Anxin intends to be listed on the science and technology innovation board in February 2019. From this point of view, although the listing application of Qian information technology innovation board was only accepted in May this year, it has actually been prepared for a long time.

The relationship with 360 is also one of the key questions asked by the regulatory authorities. In the first round, the company inquired again whether it had the ability to carry out independent business in the process of trademark division and licensing, and whether the company had the ability to carry out independent technology business in the process of R & D and licensing.

From the market point of view, 360 clearing Qianxin equity is not as simple as Zhou Hongyi's "help listing", and the competitive relationship between the two sides is also concerned. Especially after the listing of Qianxin, this kind of competition may intensify.

Qi Xiangdong once said, "I don't think it's a competitor with 360, but running an enterprise is bound to face competition." There are also risks in the network security of Anqi.

According to public information, 360 is also adding enterprise security. The revenue of "government and enterprise" increased by RMB 36.4 billion, mainly from "security" business in 2019. In the same year, Qianxin's revenue was 3.15 billion yuan, up 75.46% year on year.

However, the company is still not profitable. From 2017 to 2019, the company realized net profits of - 630 million yuan, - 872 million yuan and - 495 million yuan respectively, with a total loss of 1.997 billion yuan in three years.

As for the profit status, Qianxin explained that the company mainly laid out a comprehensive product line and focused on emerging fields such as big data situation awareness. In short, it is because of the large amount of R & D investment.

Qianxin said that with the completion of the company's four major R & D platforms, the additional R & D demand will gradually decrease, and the R & D efficiency will be greatly improved, which is conducive to gaining the first mover advantage in emerging fields. In addition, the company has become the largest network security company with the largest revenue in China, and the scale effect is gradually emerging, and it is expected to achieve profits in the future.

Audit completed in 43 days

In addition to the loss, Qianxin accounts receivable balance is large. At the end of 2017, 2018 and 2019, the book value of accounts receivable of the company was 225 million yuan, 543 million yuan and 1297 million yuan respectively, accounting for 8.67%, 13.60% and 32.52% of the total current assets at the end of each period.

However, as most of the clients of Qianxin are large-scale government enterprises and have good credit rating, the insiders think it is not necessary to worry too much about this.

On the contrary, the issue of goodwill has aroused many doubts from the outside world.

Due to the acquisition of many enterprises in the industry and upstream and downstream of the industrial chain, the book value of goodwill of Qianxin is relatively large. As of the end of 2019, the book value of goodwill in the consolidated balance sheet of the company is 1.2 billion yuan. The balance of the company's goodwill impairment reserves is 310 million yuan, which is the provision for impairment of 5 of the 10 acquisitions forming goodwill.

Further, among the 36 companies controlled by Qianxin, 26 companies are in a loss state in terms of net profit, and 15 companies have negative net assets. Among them, wangkang technology's provision for impairment of goodwill reached 220 million yuan, and Beijing yunnao's provision for impairment was 71.59 million yuan.

"In the science and technology innovation board, the goodwill of 1.2 billion yuan is still relatively high. It shows that on the one hand, the company acquired assets at a high price, on the other hand, the performance after the acquisition did not meet the expectations. Goodwill is also concerned in the inquiry, but as long as the future development space is fully demonstrated, it is acceptable to demonstrate that the impairment risk is small. The market is more sensitive to the issue of goodwill, and it is indeed a point that needs to be paid attention to after listing. " On June 17, a senior investment banker said.

Judging from the above problems, Qianxin is not a "perfect" company, but what are the other advantages of rapid audit?

The most important thing of the science and technology innovation board is the company's scientific and technological innovation attribute, which may be one of the preconditions for Qian credit to complete the audit in 43 days.

The proportion of accumulated R & D investment in the past three years accounted for 41.54% of the total revenue. Among them, employee compensation accounts for more than 80%. The prospectus also mentioned that the main reason for the company's continuous loss was that it chose the development mode of high R & D investment and rapid expansion of personnel.

On the other hand, a computer analyst in Shanghai believes that "there is no big problem in the corporate governance structure, and the issue of independence has been solved before listing. At present, network information security has been paid more and more attention, and the company's products have a dominant position in the market, especially in the party, government and military customers, which may be the reason for rapid audit. "

However, from the perspective of the industry, some market participants believe that even with the help of the listing platform, Qianxin will still face fierce competition. At present, the pattern of network security industry is scattered, and there are many subdivided fields. Even QIMINGXING, which has the largest market share, accounts for about 5% - 6%, and the industry entry barriers are high, so it is difficult for the network security industry to appear monopoly giants.

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