360 Security Technology (601360) H2 2025 earnings summary

Executive summary

• Achieved revenue of RMB 8.69 billion in 2025, up 9.37% year-over-year; net profit attributable to shareholders was RMB 263 million, a turnaround from a loss of RMB 1.09 billion in 2024.

• Internet, digital security, and smart hardware are the three core business segments, with strong growth in internet and security, but a decline in smart hardware revenue.

• Maintained high R&D investment at RMB 3.23 billion, accounting for 37.11% of revenue.

• Board proposes a cash dividend of RMB 1 per 10 shares, pending shareholder approval.

Financial highlights

• Operating income: RMB 8.69 billion, up 9.37% year-over-year.

• Net profit attributable to shareholders: RMB 263 million, compared to a loss of RMB 1.09 billion last year.

• Gross margin: 66.23%, up 0.51 percentage points year-over-year.

• Cash flow from operations: RMB 154 million, down 52.72% year-over-year.

• Total assets: RMB 37.52 billion, down 1.93% year-over-year.

• Net assets attributable to shareholders: RMB 29.39 billion, down 2.69% year-over-year.

• Basic and diluted EPS: RMB 0.04, compared to -0.16 last year.

Outlook and guidance

• Continues to pursue “AI + Security” dual-core strategy, focusing on AI-driven upgrades and digital security solutions.

• Plans to accelerate AI application deployment, expand B2B and B2G AI security solutions, and strengthen global smart hardware presence.

• Aims to further optimize revenue structure, shifting from advertising to user-paid services and AI-powered value-added offerings.