(Report producer Author: Hua Chuang**, Wu Mingyuan).
(1) Actively expand emerging security fields and build a leader in data security
Founded in 1996, Venustech has entered the domestic information security market with intrusion detection products and security services as its core business, and has now become a leading comprehensive provider of network security products, trusted security management platforms, security operations and services, and security solutions in China.
1. China Mobile Capital became the owner and entered the era of leapfrog development
In 1996, Dr. Yan Wangjia, a doctor in the United States, founded Venustech; In 2000, the world's first hardware IDS product, the Khotanese Intrusion Detection System, was born; In 2003, the Tianjing distributed vulnerability scanning and security assessment system was launched to fill the gap in China. In 2010, the company was listed on the Shenzhen Stock Exchange; In 2022, it reached an investment cooperation agreement with China Mobile; In December 2023, the private placement of the issuance object of China Mobile Capital Holding Co., Ltd. has been completed, with a total amount of 406.3 billion yuan, the number of issuances is 2With 8.3 billion shares, the company and China Mobile have entered a new stage of strategic integration, and the share issuance will be completed on January 5, 2024, and China Mobile Capital will become the actual controller, and Venustech will enter a new era of leapfrog development.
2. Actively expand the emerging security field and become a leader in data security
Lay out emerging security fields. During the "14th Five-Year Plan" period, various industries have entered a stage of rapid development of digital transformation, and new technologies, new directions, and new scenarios continue to emerge. Ranked at the forefront of China's data security market for 8 consecutive years. In 2003, the company launched its first data security product, filling the gap in the domestic market at that time. In 2021, the company established the DT (Data Era) headquarters and launched a comprehensive data security technology and management framework system for data system attributes, business attributes, and economic attributes - Data Oasis. In 2023, we will release a new generation of data security - "Data Oasis", which follows the development channel of data resourceization, assetization, and capitalization, integrates security into the development of industry data governance and data element circulation, realizes the close integration of data and security, data and industry, and data and applications, and highlights and creates ten strategic capabilities of data aggregation, governance, development, analysis, circulation, and security identification, protection, detection, early warning, and response. Security and business strategy synergy". According to the official *** quote of Venustech as a consultant of Sadie, Venustech is 85% of the market ranked first in China's data security market, leading the data security market for 8 consecutive years.
(2) The company's product pedigree is perfect, and a number of products are leading in the market
The safety product pedigree is complete. The company has been deeply involved in the industry for more than 20 years, relying on its core technology advantages, rich practical experience and forward-looking development strategy, and has formed eight sectors focusing on network security protection, network security monitoring, application security, data security, security management, cloud security, industrial control security, mobile and terminal security.
A number of products are market-leading. The company is a strong network security company with completely independent intellectual property rights in China, and has maintained the first market share for many years with a variety of products, and has been in the first camp for many years in the subdivision of network security products, trusted security management platforms, and The preferred provider of security operations and services, security solutions.
(3) The actual controller is changed to China Mobile
The issuance of private placement** was completed, and the actual controller was changed to China Mobile Capital. On June 17, 2022, Venustech and China Mobile Group signed a Strategic Cooperation Agreement, agreeing on the strategic positioning and development goals, areas and methods of cooperation between the two parties. The share issuance will be completed on January 5, 2024, and China Mobile Capital will hold 2308%, Chairman Wang Jia and her husband hold a total of 2165%, the actual controller was changed to China Mobile Group.
(4) The company's financial stability and profitability are highlighted
1. Steady growth in revenue and industry-leading profitability
Since its listing in 2010, the company's operating income has maintained rapid growth in main business income, with a growth rate of more than 10% in all other years except for 2022, and a CAGR of 19 from 2015 to 20211%, and the growth rate in 2022 will be 1 due to the external environment16%。The company achieved operating income of 253.4 billion yuan, a year-on-year increase of 1684%。
From 2016 to 2021, the company demonstrated strong profitability, with a net profit attributable to the parent company of 2341%；In 2022, the company faced a very challenging external environment and increased R&D investment in new business layout, and the net profit attributable to the parent company was 62.6 billion yuan, down 2733%。In the first three quarters of 2023, the company achieved a net profit attributable to the parent company of 24.1 billion yuan, an increase of 196 over the same period of last year72%, achieving profitability to continue to recover. In terms of gross profit margin, the gross profit margin level remained at a high level. Gross margin for the first three quarters of 2023 was 6185%, of which the gross profit margin increased significantly to 70 in the second quarter12%, an increase of 1903%, mainly due to the decrease in integration business with low gross margin.
2. The product business grew steadily, and the proportion of the service business increased rapidly
The security product business is the mainstay, and the proportion of services has increased rapidly. In the first half of 2023, the company's security products, security operations and services revenue were 96.8 billion yuan, 53.9 billion yuan, accounting for the proportion of revenue. 44%。Among them, the proportion of security operations and services increased by 6 compared with the previous year88pct。
3. Actively reduce costs, increase efficiency and control costs, and focus on continuous investment in R&D
In 2022, the company actively carried out strategic planning for new businesses and significantly increased R&D investment, with R&D expenses of 93.9 billion yuan, an increase of 11% year-on-year, and R&D expenses in the first three quarters of 2023 were 76.8 billion yuan, an increase of 7% year-on-year. In the first three quarters of 2023, the company actively reduced costs and increased efficiency, refined the management of expenses, and reduced management expenses and sales expenses by 10 percent compared with the same period in 20222% and 122%。
(1) Policies and regulations have been intensively introduced to promote the continuous release of demand
The cybersecurity legislative system has been formed and is being continuously consolidated and improved. Since October 2010, the "Decision on Accelerating the Cultivation and Development of Strategic Emerging Industries" has focused on the requirements of "building broadband, ubiquitous, integrated and secure information network infrastructure in the future", and the national network security policy has been continuously increased, especially in 2016, the Standing Committee of the National People's Congress issued the "Cybersecurity Law of the People's Republic of China", which stipulates the "implementation of the classified network security protection system" and establishes the legal status of the classified protection system. Cryptography Law", "Data Security Law", "Measures for the Protection of Personal Information" and other important laws and regulations. The implementation of policies and regulations has greatly promoted the rapid growth of the network security industry.
(2) Digitalization, industrialization of information and innovation, and service-oriented transformation, and moving towards a market scale of 100 billion yuan
1. The compound growth of network security leads the world, and the industry maintains a high degree of prosperity
China's cybersecurity market leads the world in compound growth in spending, and the industry maintains a high degree of prosperity. According to IDC's 2023 V1 Worldwide Cybersecurity Spending Guide, the total global investment in cybersecurity-related hardware, software, and services in 2022 was 1,955$100 million, which is expected to increase to $2979 by 2026$100 million, with a five-year compound growth rate (CAGR) of about 119%；China's cybersecurity spending was $12.2 billion in 2021, and it is expected that by 2026, China's cybersecurity spending will reach 288US$600 million, and over the five-year period 2022-2026**, China's cybersecurity-related spending will be 18With a compound annual growth rate of 8%, the growth rate ranks first in the world.
2. The scale of the digital economy is growing rapidly, and the exposure to data security risks is increasing.
With the rapid growth of the digital economy, the exposure to data security risks has increased. According to a study by the Academy of Information and Communications Technology, China's digital economy is developing rapidly and playing a key role in the new global economic landscape. In 2022, the scale of China's digital economy will reach 502 trillion yuan, the total amount ranked second in the world, and the proportion of GDP increased to 415%, the digital economy has become an important engine for stable growth and transformation. According to the Threat Hunter Intelligence Platform, more than 3,200 valid data breaches were discovered and verified in 2022, nearly doubling compared to 2021, with carrier channel breaches accounting for the largest proportion, reaching 28%.
The construction of the data element market is accelerating, and data security is growing with it. In January 2023, the state issued the "Guiding Opinions of the Ministry of Industry and Information Technology and 16 Other Departments on Promoting the Development of the Data Security Industry", which delineates the development goals of the data security industry from 2025 to 2035, and plans to achieve a scale of more than 150 billion yuan by 2025, with a compound annual growth rate of more than 30%. With the acceleration of the construction of the data element market, the field of data security will also maintain rapid growth.
3. The information and innovation industry has become a national strategy and opened up the market scale
The information and innovation industry, that is, the information technology application innovation industry, aims to realize the safety and controllability of the entire industrial chain from the basic software and hardware at the bottom of IT to the application software at the upper level. In order to solve the problems of "stuck neck" and "being controlled by others" in core technologies, the innovative development of information technology application has become a national strategy at present, and it is also a new driving force for national economic development under the current situation.
The "2+8+N" of the information and innovation industry is steadily advancing, and the market scale will be further opened. At present, China's information and innovation system is "2 + 8 + N", 2" refers to the party and government, "8" refers to the eight major industries related to the national economy and people's livelihood: finance, electric power, telecommunications, petroleum, transportation, education, medical care, aerospace, and "N" refers to the comprehensive application of information and innovation products to the consumer market. The information innovation of n industries will be launched in 2023, and the market space is promising. According to the data of Haibi Research Institute, the scale of the information and innovation industry will reach 9220 in 2022200 million yuan, with a compound growth rate of 35 in the past five years7%, which is expected to exceed 2 trillion by 2025.
4. The concept of virtualization and cloud services is infiltrated, and the network security industry is transformed into a service
From the perspective of product structure, the proportion of network security service products has increased year by year. In the development of the network information security industry, most of them are driven by compliance needs, and the catastrophic attacks in recent years show that network risks are a major threat, and enterprises have begun to pay more attention to the continuity of network information security services. With the penetration of the concept of virtualization and cloud services, the profit model of network security is gradually changing from the form of hardware delivery of security products and manual delivery of security services to the delivery of technologies and services in the form of cloud and SaaS. In 2021, the share of China's cybersecurity services market has increased to 20%.
(3) AI-enabled security, and the cyber security industry encounters new opportunities
Empower network security and defend against malicious attacks. The development of AI enables attackers to introduce methods such as machine learning and deep learning to improve the automation, intelligence, and optimization of cyber attacks, increasing the number and complexity of attacks, and increasing the difficulty of detecting attacks. Because attackers use advanced technology to improve the efficiency and concealment of malicious attacks, network security defense breaks through the traditional network security defense stage, and gradually uses artificial intelligence technology to directly or indirectly improve the efficiency of network security defense, quickly locate threat attacks in actual attack and defense combat, and improve the automation and intelligence level of network security defense. At present, the application of AI in network security defense includes three aspects: attack detection, attack prevention, and security operation.
AI regulatory policies to help the healthy development of AI. The Basic Requirements for Security of Generative AI Services was drafted on October 11. For the first time, the draft proposes the basic security requirements to be followed by generative AI service providers, involving corpus security, model security, security measures, security assessment, etc., and gives a total of 31 main security risks in 5 categories for corpus and generated content.
(1) Create a "data oasis" in the data era
Data production is growing vigorously, and the data security market is growing rapidly. According to the research of the Academy of Information and Communications Technology, China's digital economy will continue to flourish in 2022, with a scale of 502 trillion, up 103%, and the total data output also maintained a continuous growth trend. The large-scale digital transformation of enterprises will inevitably bring massive data security exposure at the same time. According to a report by CCID Research Institute, in 2022, China's data security protection and governance market will reach 118400 million yuan, with a growth rate of 206%。It is estimated that by 2025, China's data security protection and governance market will reach 228700 million yuan.
Build a "data oasis" and systematically build data security. The company has released the data security system "Data Oasis", which provides a full range of security technologies and management systems based on the system, business and economic attributes of data, builds an overall data security framework with dual protection and three-dimensional protection, and provides a security framework for data scenarios such as data transactions, data circulation, data development and utilization, and government data security supervision.
(2) Cloud security upgrades cloud-related security to achieve secure mutual access from the end to the cloud
As an important component of information infrastructure in the "new infrastructure", cloud computing is an important support for industrial digital transformation. In 2022, the overall scale of cloud computing in China will be 455 billion yuan, an increase of 40 percent compared with 202191%, the Academy of Information and Communications Technology predicts that the cloud computing market size is expected to exceed one trillion yuan by 2025. In terms of cloud-related infrastructure security, Venustech works closely with China Mobile to integrate security capabilities into a native security foundation built based on mobile cloud IaaS and PaaS for the integration of infrastructure and cloud infrastructure, and helps users build cloud-related security capabilities with a three-layer framework of security capability pool, security capability middle platform, and assembleable security applications.
In the context of the vigorous development of cloud computing and network security industry, the market of China's cloud security industry is growing rapidly. According to CCID Research Institute, the size of China's cloud security market reached 120 in 2021600 million yuan. It is estimated that in 2022, the overall scale of the industry will reach 176900 million yuan, a year-on-year growth rate of 467%。
The cloud security layout is upgraded to cloud-related security to realize end-to-cloud security and mutual access. With the development of cloud infrastructure and the technical collaboration with China Mobile in the direction of cloud security "joint creation +", the company's cloud security layout has been upgraded to cloud-related security, and the technology has been expanded to support the comprehensive coordination of "cloud, network, edge, ground and end" on the basis of cloud IDC security protection.
(3) Actively explore the integration of AI and security
The large model in the security vertical domain has good application scenarios. For a long time, the network security industry has faced challenges such as complex business scenarios, numerous security devices, large amount of alarm data, and heavy reliance on the experience of professional security personnel for event analysis and disposal. At the same time, relying on the company's years of accumulation in the field of security detection and operation, the open source model has been supervised and fine-tuned by using multiple high-quality security knowledge bases, and a large number of optimized prompt templates have been designed, which has significantly improved the ability of the optimized model to analyze and deal with security issues. At present, the large model in the security vertical field has shown good application prospects in security services such as threat intelligence extraction, security log analysis, and alarm effectiveness evaluation.
In the company's security operation center services, an intelligent security operation solution based on artificial intelligence technology has been formed, and an integrated AI security R&D and operation platform has been developed with the goal of AI security services and operations (AIESECOPS) throughout the life cycle. Based on years of experience in intelligent computing capabilities and security operations in natural language understanding, natural language processing, big data analysis, and intelligent processing, the "Pangubot" security intelligent lifeform was released in 2022. "Pangubot" is provided by Venustech's Pangu artificial intelligence platform to provide model operation computing power and environment, with chat as a window, applying a natural language model trained based on a special corpus for security operation, which can receive information input in the form of text, voice, and video, and feedback to users in the form of text and video, and can integrate various operation tools, and automate security analysis and disposal, which has become a strong support for Venustech's intelligent security operation.
(4) Strengthen cooperation with China Mobile and deepen the subdivision of scenarios
Go deep into industrial scenarios and launch customized industrial Internet security products. The company closely tracks the construction progress of the industrial Internet, continuously improves the innovation of industrial scenario-based security technology and solutions, establishes the "Lianchuang +" industrial Internet security laboratory with China Mobile, and continues to jointly carry out basic security research with users in electric power, petroleum and petrochemical, transportation, intelligent manufacturing and other industries, and launches industry-based scenario-based in-depth customized products based on protocol security, important equipment protection, business interconnection, intelligent monitoring and other aspects according to the typical and unique needs of key industries.
Covering multiple scenarios of the Internet of Vehicles, providing information security and data security. The company, China Mobile Shanghai Research Institute and China Mobile Group Network Department have established an information security joint creation + laboratory of the intelligent vehicle networking system to study information security and data security in scenarios such as intelligent vehicle Internet of Vehicles network communication, vehicle-end applications, and high-precision positioning. Through its own technology accumulation and joint research and development with China Mobile, it helps domestic vehicle and parts manufacturers, regulatory agencies, local governments and consumers to build an integrated information and network security environment covering the security life cycle of "vehicle, road, cloud and network", and promotes the safe and healthy development of the intelligent networked automobile industry.
In terms of IoT security, we will lay out the best private network business security scenarios. The company focuses on the security scenario of private network business, based on its own technical accumulation in the field of security, and launches a variety of products and overall solutions for private networks, providing private network horizontal and vertical border security protection, Internet of Things terminal access security protection, leakage prevention, security audit system, security management platform and other private network security products, and building a private network security product based on asset identification, asset status monitoring, two-way access control, threat protection, weak password detection, Six core functions based on signaling control.
This article is for informational purposes only and does not represent any investment advice from us. To use the information, please refer to the original report. ）
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