360 Security Technology (SH:601360) Xin Lang Cai Jing·2025-12-17 00:05Core Viewpoint - The recent allegations of financial misconduct against 360 by a former executive could pose a significant challenge for the company as it attempts to turn its financial performance around after years of losses [3][4][17]. Financial Performance - 360 has reported continuous losses over the years, with total losses exceeding 4 billion yuan. However, there has been a notable recovery in performance since 2025, with losses significantly narrowing [4][25]. - The company's revenue has been declining from 2021 to 2024, with figures of 10.886 billion yuan, 9.521 billion yuan, 9.055 billion yuan, and 7.948 billion yuan, reflecting year-on-year decreases of 6.28%, 12.54%, 4.89%, and 12.23% respectively. The net profit attributable to shareholders has also shown a downward trend, with figures of 900 million yuan, -2.204 billion yuan, -492 million yuan, and -1.094 billion yuan during the same period [25]. Business Operations - 360's four main business segments have shown mixed results, with only the internet value-added services segment experiencing growth, while the internet advertising, smart hardware, and security segments have all seen revenue declines [25]. - The company has been investing heavily in research and development, with expenses exceeding 3 billion yuan annually from 2021 to 2024, alongside sales expenses surpassing 2 billion yuan each year [25]. Strategic Shift - In response to stagnant traditional business growth, 360 is actively exploring new business areas, particularly in AI. The company has launched several AI-native internet products and is enhancing its self-developed large-scale AI model capabilities [26]. - The launch of DeepSeek in early 2025 has garnered significant attention, leading to a 33% increase in market capitalization over five days, although the company later clarified that it had not yet provided services to DeepSeek [26]. Allegations and Response - The allegations made by the former executive, who claims to have evidence of financial misconduct amounting to tens of billions, have been categorically denied by 360, which asserts that the claims are entirely unfounded and that it adheres to strict compliance and transparency standards [4][10][11]. - 360 has announced plans to pursue legal action against the former executive for defamation, emphasizing its commitment to protecting its reputation and legal rights [11][23].