As a labor-intensive, low-end service industry, it is difficult for people to understand why there is a need to go public. However, Anbang Guard, a security company in Zhejiang, has become a listed company with its special business model. Anbang Security mainly provides cash deposit security services for major banking institutions in Zhejiang Province, and its main business is known as financial security services or financial security services. Although the name of the company sounds lofty, it is still essentially a security company.
1.Challenges of low growth: With the popularization of electronic payments, cash business is gradually decreasing, and the need for cash deposits by banks will also decrease accordingly. Security companies will face significant challenges in their cash deposit services. In addition, the local characteristics of cash deposit services have also made local security companies monopolize the local cash business market. Anbang Guard can only operate in Zhejiang Province, its ceiling is obvious, and its growth is relatively limited.
2.The dilemma of labor-intensive industries: Security companies are primarily assets of personnel, and they usually recruit older employees because young people are less inclined to take on such jobs. In addition, the cash deposit service is relatively safe in China, at 9999% of the time there will be no problems. As a result, security companies lack the technical content to be on par with the high-tech sector. This also reflects the significance of the listing of security companies.
3.Questions about IPO fundraising: According to the prospectus, as of the end of June 2022, Anbang Guard's cash on the books reached 8900 million, the asset-liability ratio is only 26%, and the interest-bearing debt ratio is even lower. However, such a company, which is currently well-funded, chose to raise capital by going public, raising questions about the significance of its listing. Is it just because A-shares are easily available?
The phenomenon of security companies going public may have their own specific reasons and considerations. After all, it is a common phenomenon for enterprises to pursue profit maximization in a market economy, and listing is a fast way for enterprises to obtain financing. However, as a labor-intensive industry, the characteristics of security companies determine that their growth is relatively limited, their technical content is low, and they are easily affected by market development and policy regulation.
In addition, people's doubts about the significance of the security company's listing may also hint at the moral bottom line considerations of the A** field. As an open-traded market, the A** market should have certain audit standards and moral bottom lines to ensure the healthy operation of the market and the interests of investors. If the listing review criteria are excessively relaxed and companies in labor-intensive industries are blindly accepted for listing, it will not only damage the image of the entire market, but may also cause investors to question and worry about the market.
To sum up, the listing phenomenon of security companies has sparked a discussion on the moral bottom line of the A** field. As a labor-intensive industry, security companies have limited growth and low technical content. Whether the listing of a security company meets the review standards and moral bottom line of A-shares has become a question worth pondering. At the same time, it also reminds us that we need to be more stringent in market supervision to ensure the healthy, fair and transparent operation of the market and protect the legitimate rights and interests of investors. As Professor Liu Jipeng said, now may not be a good time, we should be cautious and choose the right investment method.