360 Security Technology (601360) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 7.95 billion, down 12.23% year-over-year; net loss attributable to shareholders was RMB -1.09 billion.

• Company maintained high R&D investment, with R&D expenses of RMB 3.20 billion, accounting for 40.29% of revenue.

• Strategic focus on “AI + Security” with significant progress in AI model development and digital security solutions.

• Major product launches included “Nano AI Search” and “360AI Office,” driving user growth and new revenue streams.

Financial highlights

• Operating income: RMB 7.95 billion, down 12.23% year-over-year.

• Net loss attributable to shareholders: RMB -1.09 billion; basic EPS: -0.16 yuan.

• Operating cash flow: RMB 326 million, down 64.71% year-over-year.

• Gross margin improved to 65.72%, up 5.52 percentage points year-over-year.

• Net assets at year-end: RMB 30.21 billion; total assets: RMB 38.26 billion.

Outlook and guidance

• Continued focus on “AI + Security” strategy, aiming to accelerate AI application deployment and digital transformation.

• Plans to shift internet business revenue model from advertising to value-added services and subscriptions.

• Security business to enhance SaaS capabilities and expand cloud and terminal coverage.

• Intelligent hardware business to focus on AIoT and overseas market expansion.