360 Security Technology (SH:601360) Chang Jiang Shang Bao·2025-07-13 23:07Core Viewpoint - Company 360 (601360.SH) continues to report losses, but signs of a turning point are emerging as it anticipates reduced losses in the upcoming quarters [1][4]. Financial Performance - For the first half of 2025, the company expects a net profit attributable to shareholders of approximately -320 million to -240 million yuan, and a non-net profit of about -340 million to -250 million yuan, indicating ongoing losses [1][4]. - Compared to the same period last year, the losses are expected to decrease, with a significant possibility of turning profitable in the second quarter of 2025 [2][5]. - In the first quarter of 2025, the company reported an operating income of 1.864 billion yuan, a year-on-year increase of 8.39%, with net losses of 273 million yuan and 282 million yuan for net profit and non-net profit respectively [5]. Sales and Marketing Strategy - The increase in losses is attributed to heightened sales expenses aimed at enhancing product promotion and market influence, with sales expenses reaching 804 million yuan in the first quarter of 2025, a 72.08% increase from the previous year [5][8]. Research and Development Investment - The company has maintained a strong commitment to research and development, with cumulative R&D investments reaching 23.1 billion yuan from 2017 to 2024, and R&D expenditure accounting for 40% of operating income in 2024 [2][9]. - R&D investments have consistently exceeded 3 billion yuan annually from 2021 to 2024, supporting the company's transition and innovation efforts [8][10]. Business Segments and Performance - The company's main business segments include internet advertising and services, smart hardware, internet value-added services, and security, with varying revenue performance across these segments in 2024 [8]. - The revenue from internet value-added services grew by 25.51%, while other segments like smart hardware and security saw significant declines of 35.44% and 27.06% respectively [8]. Strategic Direction - The company is actively pursuing a dual strategy of "AI + Security" to contribute to the development of a modern digital economy, focusing on digital safety and AI-driven solutions [3][10]. - The company has launched various AI products and solutions, enhancing its capabilities in the digital security domain and aiming to support the digital transformation of various sectors [10][11].