Security companies need to stay awake

To understand the reasons for the intensive listing of security companies, we must first understand the current environment of the entire security market. In recent years, with China’s sustained economic growth and China’s current economic and social transformation at an important stage, frequent population movements and the complexity of security precautions have continued to increase. The security awareness of enterprises and the public has continued to increase, and the demand for security products has grown rapidly. The large cities such as Ping An City, the Olympic Games, the World Expo and the Asian Games have attached great importance to security work and have directly stimulated the demand for security products. It is this demand that has made the domestic security industry enter a golden period of rapid development.
At the same time, the domestic security market is gradually changing. On the one hand, there has been a change in the level of demand. The demand for large-scale security, represented by the construction of safe cities, and civil security needs and alarm operation services represented by personal security and community security, have become the main direction for the current development of the security market. These new requirements have the characteristics of large total investment, wide coverage, wide user involvement, and high technical requirements. To meet these requirements, enterprises must have compatible hardware and software products, a unified system integration platform, high-quality project construction, and perfect Operational services and other conditions are not available in traditional professional security companies. Therefore, the emergence of a comprehensive security enterprise integrating software and hardware products, system integration, engineering construction, and operation and service will become the trend of the times. On the other hand, as an emerging industry with great growth in the national economy, China’s security industry has attracted attention from domestic and foreign industrial capital and financial capital. They hope to use the acquisition of domestic excellent security companies to expand their market share in China and gain technological advantages. Good income and other purposes. Although there are a large number of domestic security companies, they are mainly small and medium-sized enterprises, and are generally small in scale. They are in a weak position in competition with foreign well-known security companies. This structure of the security industry has created opportunities for domestic and foreign industrial capital and financial capital to acquire local security companies. At the same time, the relevant government departments have also actively optimized the security industry investment environment, indirectly promoting the merger and reorganization of the security industry.
In recent years, driven by the external environment of the industry, many security companies are in urgent need of funds in order to be able to occupy the market scale, increase production capacity, and take initiative in the highly competitive market. Entering the capital market is a matter for companies to raise funds. A good way.
The purpose of listing must be clear. Currently in the security market, there are three companies listed on the issue, their choices are not the same.
The purpose of many security companies entering the capital market is to raise funds and use them to enlarge and strengthen their own businesses. It is understood that in the first financing, security listed companies generally use funds for R&D of core technologies and overseas market expansion. , Optimize service quality, merge and reorganize, expand production scale, etc., so that we can achieve sustained growth. The capital market is a market that requires returns. Only companies with long-term development capabilities can gain the favor of investors.
Of course, for some security companies with high profit margins, low debt ratios, and sufficient funds, they will be more relaxed in the face of listing issues. Entering the capital market, there will be many problems that need to be faced.
Prior to the listing, each security company’s financial data, core technology, personnel status, shareholder composition, and corporate strategic planning were all considered as business secrets of the company. Its competitors could not understand the details. However, in accordance with internationally accepted accounting standards, the company must complete the audit report through an auditor when it is listed. It not only needs to provide the company’s product structure, the company’s competitive position in the industry, customer status, and the situation of suppliers and distributors, but also needs to provide the company’s fixed assets and knowledge. Detailed information on property rights, environmental issues, and outstanding bills, as well as current and future strategic goals and specific measures, etc., involve a lot of company secrets. After listing, companies also have the obligation to publish their performance reports on a regular basis. It can be said that the company is completely under the concern of the public, especially its competitors, which is obviously unfavorable to the company's operations.
After public listing, the degree of freedom of corporate managers will be more restricted: all major decisions of the company must be discussed and approved by the board of directors, and decisions that are critical to the company must be decided by all shareholder votes. Missing market opportunities and reducing the flexibility of the company, a company is not the best choice when the cash flow is relatively abundant, because the reduction in the efficiency of the use of funds will result in a decrease in the return to the shareholders. Instead, it will lose faith in shareholders and not be optimistic about the capital market. Security companies only have a deep understanding of their own operations and management, and make a detailed assessment of the market environment they are in, and are fully prepared to minimize the risks and drawbacks of listing. The road to self-development.
Market Choices: Overseas or domestic In the selection of capital markets, many companies have stagnated between foreign and domestic markets. In the domestic capital market, at present, companies are audited for the purpose of reducing investment risks and taking responsibility for shareholders. Therefore, the requirements and entry thresholds for enterprises are very high. Generally, they are entered into enterprises that are relatively mature or have certain advantages in the industry.
Since foreign capital markets have had nearly a hundred years of development history, and their access audits have relatively standardized processes, companies that are preparing to enter will ensure the company’s strength while paying more attention to the long-term development prospects of the company. Enterprises raise funds for development. In addition, where to go public depends on the fundamental starting point of the company's market positioning. If the company has more foreign sales, it will also choose to list overseas to gain brand recognition. Companies committed to expanding the domestic market can be listed in the domestic market, and some will also choose different sections. For example, many companies have recently chosen IPOs to go public. In addition to relatively low thresholds, the IPO itself has high-tech and new models. It does not matter. Therefore, in the choice of capital markets, security companies must make effective choices according to their own conditions.
Making good use of financing capital as a listed company, its managers must clearly understand that the shareholders' investment is not interest-free loans, lottery bonuses, and it is more expensive than bank loans. The company must create value for the shareholders, shareholders will buy your account, investors will have confidence in the company. Security companies need to pay attention to the first round of financing. What is the location of direct financing funds after the listing will be able to guarantee the steady growth of enterprises in the next few years? Can we guarantee a stable return to shareholders?
If a company wants to develop in the long term, it can attract more and better investors. The company can continue to operate, mainly because there are products suitable for the market. Therefore, after many security companies are listed, a lot of financing capital is invested in technology, and the investment is also considerable. High, investment in R&D and technology are also the basic conditions for future survival in this industry. While investing in R&D technology, many security companies will also invest capital in the development of corporate channels, expand the construction of domestic marketing networks, and strengthen the construction of overseas marketing channels.
When companies raise certain funds through listing, they will naturally face more temptations. At this time, the ability of entrepreneurs to make the right choices in the face of temptation is crucial. After security companies are listed, whether they focus on the industry or take a diversified road, the main purpose is to create value for shareholders, and the excessive dispersion of goals and resources will only bring greater risks to the company and make it more likely that it will succeed. Lower and lower, once the shareholder value is not added, it is finally abandoned by the majority of investors.
Listing is a complicated, long-lasting, competing and paying process. At the same time, listing also indicates the beginning of a new round of competition. The process of listing is a process of corporate transformation and leapfrogging at all levels. In this process, companies need to amend many habits and practices that are inconsistent with the listing requirements, and operate in the public company's mode; at the same time, they can use the market's image after listing to be more Good attracting partners will create opportunities for the future development of the company. Especially for security companies wishing to obtain better opportunities through listing, it is more important to establish this concept and continuously improve the company's management at all levels through listing. No matter whether it can be listed or when it can be listed, security companies should have a peaceful mind.