Core Viewpoint - The company Shengbang Security (688651.SH) announced a lease agreement for office space with a related party, indicating ongoing operational expansion and investment in infrastructure [1] Summary by Categories Lease Agreement Details - Shengbang Security's wholly-owned subsidiary, Beijing Shengbang Saiyun Technology Co., Ltd., plans to sign a lease contract with related party Meng Xianying for office space located at 505, Building B, No. 1, Longyu North Street, Huilongguan, Changping District, Beijing [1] - The leased area is 292.4 square meters, with a lease term of 3 years from November 12, 2025, to November 11, 2028 [1] - The monthly rent is set at 17,800 yuan (excluding tax), resulting in a total rent of 640,400 yuan (excluding tax) over the lease period [1]

Core Points - The company Shengbang Security announced that its wholly-owned subsidiary, Beijing Shengbang Saiyun Technology Co., Ltd., plans to sign a lease agreement with related party Ms. Meng Xianying for office space [1] - The leased property is located at Room 505, Building B, No. 1, Longyu North Street, Huilongguan Street, Changping District, Beijing, with a total area of 292.4 square meters [1] - The lease term is set for three years, from November 12, 2025, to November 11, 2028, with a monthly rent of 17,800 yuan (excluding tax) [1] - The total rent amount for the lease period is 640,400 yuan (excluding tax) [1]

Core Insights - Several cybersecurity companies reported revenue growth or reduced losses in Q3 2023, driven by diversification into new business scenarios and the adoption of AI technology [1] Group 1: Revenue Growth and Loss Reduction - 360 achieved revenue of 6.068 billion yuan in the first three quarters, an increase of 8.18% year-on-year, while net losses narrowed to 122 million yuan from 579 million yuan, a reduction of approximately 78.93% [1] - Green Alliance Technology reported revenue of 1.28 billion yuan, a slight increase compared to the previous year, with net losses of 196 million yuan, a year-on-year reduction of 39.85% [1] - Companies are exploring new markets such as satellite internet and industrial control to drive revenue growth [1] Group 2: AI Integration and Innovation - AI has become a key efficiency booster in the cybersecurity industry, with 97% of surveyed companies using or planning to deploy AI-enabled cybersecurity solutions [3] - Fortinet's report indicates that 87% of industry experts expect AI to enhance efficiency, while 80% of respondents noted improvements in team productivity due to AI [3] - Companies like Green Alliance Technology are focusing on AI security, data security, and practical defense, integrating intelligent capabilities into traditional security products [4] Group 3: Investment in R&D and Technology - Shengbang Security's R&D investment reached 66.65 million yuan in the first three quarters, a year-on-year increase of 22.98%, accounting for 42.90% of revenue [6] - Qi An Xin's R&D investment totaled 835 million yuan, representing 29.41% of revenue, focusing on proactive defense and privacy computing [6] - Companies are continuously investing in technology innovation to enhance competitiveness and adapt to industry trends [6]

Core Insights - Several publicly listed cybersecurity companies reported third-quarter earnings, with some achieving revenue growth or reduced losses in the first three quarters of the year. Embracing AI technology and exploring diverse business scenarios are key strategies for these companies to enhance quality and drive transformation [1][2]. Exploring Diverse Scenarios - Companies like 360 achieved revenue of 6.068 billion yuan, an 8.18% year-on-year increase, while net losses narrowed to 122 million yuan from 579 million yuan, a reduction of approximately 78.93% [2]. - Green Alliance Technology reported revenue of 1.28 billion yuan, a slight increase year-on-year, with net losses of 196 million yuan, a reduction of 39.85% [2]. - Companies are expanding into new markets such as satellite internet and industrial control to explore incremental growth opportunities [2]. - Shengbang Security is focusing on low-altitude economy and satellite internet, winning contracts in these new sectors [2]. - The number of vessels using satellite internet in the marine sector surged from 500 in 2022 to 75,000 recently, while the number of aircraft adapted for satellite use is expected to grow from 160 in 2024 to 2,000 in 2025 [2]. AI-Driven Industry Transformation - AI has become a mainstream tool for efficiency in the cybersecurity industry, with 97% of surveyed companies using or planning to deploy AI-enabled solutions [4]. - 87% of industry experts expect AI to enhance efficiency, and 80% report that AI has improved their team's productivity [4]. - Companies like Qi An Xin are leveraging AI to enhance detection accuracy and reduce costs, with over 90% usage of AI code assistants [4]. - The AISOC intelligent operation model has been shown to reduce average threat detection and assessment times while improving alert recognition rates [4]. Continuous Investment in Innovation - Companies are investing in technology innovation to enhance competitiveness, with Shengbang Security's R&D expenditure reaching 66.65 million yuan, a 22.98% increase year-on-year, accounting for 42.90% of revenue [8]. - Qi An Xin's R&D investment totaled 835 million yuan, representing 29.41% of revenue, focusing on proactive defense and privacy computing [8]. - The rapid development of large models is reshaping the cybersecurity landscape, accelerating the implementation of proactive defense systems [7].

Core Viewpoint - Shengbang Security, a leading network security solution provider in China, was established on December 7, 2010, and went public on July 26, 2023, on the Shanghai Stock Exchange. The company specializes in information security products and services, showcasing strong R&D capabilities and extensive industry experience [1]. Financial Performance - In Q3 2025, Shengbang Security reported a revenue of 155 million yuan, ranking 28th among 35 companies in the industry. The top company, iFlytek, had a revenue of 16.989 billion yuan, while the industry average was 1.838 billion yuan [2]. - The company's main business segments include network security products and services, contributing 228 million yuan (77.56%), followed by cyberspace mapping at 47.65 million yuan (16.23%), and satellite internet security at 17.94 million yuan (6.11%) [2]. - The net profit for the same period was -57.90 million yuan, placing it 18th in the industry. The industry average net profit was -98.15 million yuan [2]. Financial Ratios - As of Q3 2025, Shengbang Security's debt-to-asset ratio was 13.68%, lower than the previous year's 14.39% and significantly below the industry average of 29.42% [3]. - The gross profit margin for Q3 2025 was 72.45%, which, although lower than the previous year's 75.32%, remained above the industry average of 63.59% [3]. Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 25.70% to 5,160, while the average number of circulating A-shares held per shareholder decreased by 18.06% to 6,289.62 [5]. - The largest circulating shareholder was Changcheng Jiujia Innovation Growth Mixed Fund A, holding 1.7 million shares, an increase of 200,000 shares from the previous period [5]. Future Outlook - In the first half of 2025, the company achieved a revenue of 106 million yuan, reflecting a year-on-year growth of 10.98%, although profits were impacted by increased expenses [5]. - The company is involved in the national network identity authentication public service platform's security construction, which is expected to open up new opportunities as related management measures are implemented [5]. - Shengbang Security is also expanding its satellite internet security offerings, launching multiple products and developing comprehensive solutions [5]. - Future revenue projections for 2025-2027 are estimated at 385 million yuan, 501 million yuan, and 640 million yuan, with corresponding net profits of 55 million yuan, 91 million yuan, and 131 million yuan [5].

Core Viewpoint - The company emphasizes the accuracy and completeness of its quarterly report, ensuring no false statements or omissions exist, and holds legal responsibility for the report's content [2][3]. Financial Data - The financial statements for the third quarter are unaudited, indicating that the financial data may not have undergone a formal review process [3][5]. - The report covers the financial performance for the period from January to September 2025, with specific attention to the company's accounting data and financial indicators [5][6]. Shareholder Information - The report includes details about the total number of common shareholders and the status of major shareholders, although it notes that there are no changes in the top ten shareholders due to share lending activities [4][5]. Other Important Information - The company has not identified any significant non-recurring gains or losses during the reporting period, indicating a stable operational performance [3][5]. - The company will begin implementing new accounting standards starting in 2025, which may affect the financial reporting in the future [6].

Core Viewpoint - Shengbang Security (688651.SH) reported a year-on-year revenue increase of 8.49% for the first three quarters of 2025, reaching 155 million yuan, but experienced a significant increase in net loss attributed to shareholders, amounting to 54.07 million yuan, which is an increase in loss of 19.21 million yuan compared to the same period last year [1] Financial Performance - The total operating revenue for the first three quarters of 2025 was 155 million yuan, reflecting an 8.49% year-on-year growth [1] - The net profit attributable to shareholders was -54.07 million yuan, indicating a worsening loss compared to the previous year's same period, which increased by 19.21 million yuan [1] - The basic earnings per share were reported at -0.72 yuan [1]

Core Insights - The company reported a revenue of 155 million yuan for the first three quarters of 2025, representing a year-on-year growth of 8.49% [1] - Research and development investment totaled 66.6497 million yuan, showing a year-on-year increase of 22.98% [2] Business Development - The company is focusing on satellite internet security, developing new applications for low-altitude economy and commercial aerospace [1] - It is actively engaging in personal information protection under the new regulations and strengthening its network space mapping business [1] Product Innovation - The company launched a self-developed 200G high-speed link encryption gateway, which significantly outperforms traditional solutions in key metrics [2] - The company achieved second place in a national competition for AI technology applications in network security, enhancing its AI and security integration capabilities [2] Strategic Positioning - As a leading provider of integrated air-space-ground security products, the company is committed to increasing R&D investment and optimizing its product matrix [2] - The company aims to capture opportunities in satellite internet security and network identity authentication, enhancing its market competitiveness and technological innovation [2]

Core Viewpoint - The company, Shengbang Security, reported a revenue of 155.35 million yuan for the first three quarters of 2025, marking an 8.49% year-on-year increase, while R&D investment reached 66.65 million yuan, up 22.98% year-on-year, indicating strong growth in satellite internet security and related sectors [2][3]. Group 1: Financial Performance - The company achieved a revenue of 155.35 million yuan in the first three quarters of 2025, reflecting an 8.49% increase compared to the previous year [2]. - R&D investment for the same period was 66.65 million yuan, which is a 22.98% increase year-on-year [3]. Group 2: Business Development and Innovations - Shengbang Security is focusing on satellite internet security, developing new applications for low-altitude economy and commercial aerospace, and enhancing personal information protection under new regulations [2]. - The company launched a 200G high-speed link encryption gateway product, which significantly outperforms traditional solutions in key metrics, establishing a new industry benchmark in global high-speed communication security [3]. - The company has been recognized as a key technical support unit for cybersecurity by various government bodies, and it released the first annual report on dark web monitoring in the industry [3]. Group 3: Strategic Focus - The company adheres to a development philosophy of "precision, focus, and depth," continuously increasing R&D investment and optimizing its product matrix to strengthen its advantages in network security and spatial mapping [4]. - Shengbang Security aims to seize opportunities in satellite internet security and network identity authentication, enhancing its scale, technological innovation capabilities, and market competitiveness [4].

Financial Performance - The company's revenue for the third quarter was ¥49,833,893.44, representing a year-on-year increase of 3.56%[4] - The total profit for the period was a loss of ¥21,621,474.46, with a year-to-date loss of ¥65,332,906.10[4] - The net profit attributable to shareholders was a loss of ¥17,659,391.78 for the quarter, and a loss of ¥54,067,404.25 year-to-date[4] - Total revenue for the first three quarters of 2025 reached CNY 155,350,201.60, an increase of 8.0% compared to CNY 143,199,186.00 in the same period of 2024[17] - The net loss for the first three quarters of 2025 was CNY 57,901,718.33, compared to a net loss of CNY 33,482,173.07 in the same period of 2024[18] - The total comprehensive income attributable to the parent company for the first three quarters of 2025 was -54,067,404.25 CNY, compared to -34,852,504.22 CNY in the same period of 2024, reflecting a significant decline[19] Research and Development - Research and development expenses totaled ¥24,172,877.53 for the quarter, accounting for 48.51% of revenue, an increase of 2.05 percentage points year-on-year[5] - The company has increased its investment in R&D significantly, which has impacted overall profitability due to higher operational costs[8] - Research and development expenses rose to CNY 63,873,035.45, reflecting a 21.8% increase from CNY 52,460,878.13 in the previous year[17] Assets and Liabilities - Total assets at the end of the period were ¥1,087,448,034.38, a decrease of 7.99% compared to the end of the previous year[5] - The total assets decreased to CNY 1,087,448,034.38 from CNY 1,181,922,645.66, indicating a decline of approximately 8.0%[16] - Total liabilities decreased to CNY 148,746,811.34, down from CNY 185,715,451.16, a reduction of about 20.0%[15] Shareholder Information - The total equity attributable to shareholders decreased by 5.47% to ¥927,990,975.71 compared to the previous year[5] - The total equity attributable to shareholders decreased to CNY 927,990,975.71 from CNY 981,662,633.09, a decrease of about 5.5%[15] - Total shareholders at the end of the reporting period reached 5,160[10] - The largest shareholder, Quan Xiaowen, holds 18,424,712 shares, representing 24.44% of total shares[10] Cash Flow - Cash and cash equivalents as of September 30, 2025, amounted to ¥83,172,836.28, an increase from ¥71,836,572.36 at the end of 2024[13] - The company's cash and cash equivalents decreased to CNY 564,024,125.55 from CNY 667,152,254.84, a decline of approximately 15.5%[14] - The net cash flow from operating activities for the first three quarters of 2025 was -59,639,075.64 CNY, slightly worse than -58,604,480.67 CNY in the previous year[21] - Cash inflow from operating activities totaled 234,441,854.43 CNY in 2025, up from 208,440,342.68 CNY in 2024, indicating a growth of approximately 12.5%[20] - The cash outflow from operating activities increased to 294,080,930.07 CNY in 2025 from 267,044,823.35 CNY in 2024, representing an increase of about 10.1%[21] - The net cash flow from investing activities was 81,304,826.08 CNY in 2025, a recovery from a negative cash flow of -135,089,192.94 CNY in the same period of 2024[21] Other Financial Metrics - The basic and diluted earnings per share were both -¥0.23 for the quarter, and -¥0.72 year-to-date[4] - The basic and diluted earnings per share for the first three quarters of 2025 were both -0.72 CNY, worsening from -0.46 CNY in the same period of 2024[19] - The weighted average return on net assets was -1.89% for the quarter, compared to -5.66% year-to-date[5] - The company reported non-recurring gains of ¥3,737,784.91 for the quarter, with government subsidies contributing ¥3,550,000.00[6] - The company recorded an investment income of CNY 7,967,451.20, significantly higher than CNY 2,571,159.09 from the previous year, representing a growth of 209.5%[17] Operational Changes - The company has not engaged in any securities lending or borrowing activities during the reporting period[12] - There are no significant changes in the top 10 shareholders or their participation in margin trading[12] - The company has not reported any new strategies or product developments during the conference call[12] - No audit opinion type was applicable for the quarterly financial statements[12]