Shengbang Security stated that the reason for considering the acquisition of Tianyu Cloud Security's equity is based on a bullish view of the low-orbit satellite internet security market behind it. Due to the nature of the satellite internet industry, the product realization cycle of the related industrial chain is relatively long, and many enterprises are still in the stage of shouting slogans and conceptualizing, and there are not many substantive products entering the market.
On June 27th evening, Shengbang Security announced that it plans to acquire and increase capital subscription to part of the equity of Tengyu Cloud Security for 30 million yuan. After this transaction is completed, Shengbang Security will hold 62.5% of the equity of Tengyu Cloud Security, making it a subsidiary of the former company.
Shengbang Security stated that the business, products, and technology of Tengyu Cloud Security form synergies with the company's satellite internet-related technologies. Tengyu Cloud Security can use its accumulated years of network space map technology, combined with satellite cryptography technology, to achieve complementarity and ultimately form the effectiveness of the industrial system.
"After the completion of this acquisition, the target company will be included in the company's consolidated financial statements, and its operating development status will affect the company's performance." The secretary of the board of directors of Shengbang Security told 21st Century Economic Report that the reason for considering the acquisition of Tengyu Cloud Security equity is that it is optimistic about the market for low-orbit satellite internet security behind it.
According to the secretary of the board of directors mentioned above, "On the one hand, compared with the current traditional network security of Shengbang Security, the satellite internet security field is still in the initial development stage, and the two are completely different races. The market space is large enough, and it is expected to reach the same scale as traditional network security in the future; on the other hand, there is no absolute head enterprise in the domestic market at present. At this time, the layout is conducive to seizing the industry's first-mover advantage."
According to IDC data, the global network security market is predicted to increase from $151.95 billion in 2021 to $223.34 billion in 2025, with a compound annual growth rate of 10.4%.
Jiang Pengfei, chief engineer of Zhongke Guangqi Space Information Technology Co., Ltd., stated in an interview with 21st Century Economic Report that in terms of the pain points of the satellite internet security market, at this stage, the satellite internet faces multiple security threats, including signal interference and obstruction, side channel attacks and physical attacks, supply chain attacks, and cryptography security attacks. These threats need to be prevented and dealt with using a comprehensive set of techniques, which are very different from traditional internet security and are a comprehensive interdisciplinary system.
It is reported that Tengyu Cloud Security has been committed to research in the field of communication security and confidentiality. It has particularly focused on the field of satellite cryptography-related technologies and currently has major products that include satellite communication encryption machines, high-speed link cipher machines, high-density large computing power cipher resource pools, crypto-accelerated transmission systems, commercial cipher series products, and innovative cipher products.
In 2022 and 2023, Tengyu Cloud Security achieved operating revenues of RMB 8.478 million and RMB 14.5836 million, respectively, and a net loss of RMB -1.6964 million and a profit of RMB 2.1261 million; for non-deductible net profit was RMB -4.2044 million and RMB 2.5226 million.
After income evaluation, the net book value of Tengyu Cloud Security's net assets is RMB 2.3747 million, and the assessed value of all shareholders' equity is RMB 30.185 million, with an appreciation of RMB 27.8103 million.
The secretary of the board of directors mentioned above added, "The company is relatively confident about the acquisition prospects of Tengyu Cloud Security and does not rule out the possibility of the company continuing to acquire the remaining equity of Tengyu Cloud Security to further improve the business synergy between the two parties."
According to the secretary of the board of directors of Shengbang Security, the reason for adopting the cash installment payment method for the acquisition instead of the form of "equity + cash" is that, on the one hand, the overall size of the target company is not large; on the other hand, cash payment It also meets the self-development requirements of Tengyu Cloud Security at this stage.
Some practitioners in the industry told 21st Century Economic Report that for companies in the satellite internet security market, it is a special industry with high technology, high risk, and high investment. Early product development and application require a lot of money support. At present, the most obvious difficulty in this field is the lack of funds, which cannot meet the needs of business development, especially for some small and medium-sized startups, which may face a shortage of liquidity funds.
Regarding the increase in performance, the market generally believes that it will not bring significant investment returns to Shengbang Security in the short term.
"This is just like the problem of which came first, the chicken or the egg. In the short term, it will not directly affect the performance of downstream industry chain companies." The aforementioned industry insiders stated that from the development nodes of China's satellite internet system, it is still in the stage of system technology demonstration and test verification. The previously released China Satellite Network Group's "GW Plan" plans to launch 12,992 satellites. Although some of them have launched successfully, they have not formally entered service. In addition, Shanghai Yuxin Satellite, another commercial satellite company, plans to launch about 12,000 low-orbit satellites and is expected to launch in August of this year. In addition, due to the nature of the satellite internet industry, related industrial chain products have a longer realization period. Many companies are still in the stage of calling slogans and creating concepts, with not many substantial products entering the market yet.
It should be noted that this trade has not set up any performance commitment or gambling arrangements. If the performance of the underlying assets declines or fails to meet expectations, there are no mechanisms for adjusting the transaction price or redeeming shares, so there is a risk of investment loss in this transaction.