360 Security Technology (601360) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 3.83 billion, up 3.67% year-over-year; net loss attributable to shareholders narrowed to RMB -282 million, a reduction of RMB 59 million from the prior year.

• AI and security dual-core strategy advanced, with significant product upgrades in AI search and security intelligence, and continued high R&D investment (RMB 1.56 billion, 40.89% of revenue).

• Major AI product launches included the Nano AI Super Search Agent and upgrades to the proprietary large model “360智脑”, which ranked among the top domestic models.

• Security business maintained national-level threat detection, with 58 APT groups identified and new AI-powered security solutions deployed across 18 industries.

Financial highlights

• Operating revenue: RMB 3.83 billion, up 3.67% year-over-year.

• Net loss attributable to shareholders: RMB -282 million, improved from RMB -341 million year-over-year.

• Net cash flow from operating activities: RMB -83.7 million, a significant improvement from RMB -469.7 million in the prior year.

• R&D expenses: RMB 1.56 billion, 3.26% increase year-over-year, representing 40.89% of revenue.

• Basic and diluted EPS: RMB -0.04, improved from RMB -0.05 year-over-year.

• Gross margin: Not explicitly stated, but cost structure and segment margins discussed.

Outlook and guidance

• Continued focus on AI-driven product innovation and security solutions, with plans to further commercialize large model and security agent technologies.

• Management expects ongoing high R&D investment and further expansion in both domestic and overseas markets, especially in AI and security.