360 Security Technology (SH:601360) Chang Jiang Shang Bao·2025-12-18 01:31Core Viewpoint - The internet security giant 360 (601360.SH) is embroiled in a financial fraud controversy following allegations from a former executive, which has led to a significant drop in its stock price and market value [1][2][4]. Group 1: Allegations and Company Response - Former senior vice president Yu Hong accused 360 of financial fraud involving "dozens of billions" in false accounting related to game revenues, claiming that the company engaged in practices like "self-recharge" to inflate figures [4][5]. - In response, 360 issued a statement denying the allegations, asserting that Yu's claims are completely unfounded and that the company adheres to compliance and transparency in its financial operations [5][6]. Group 2: Financial Performance and Market Reaction - Following the allegations, 360's stock price fell by 5.07% on December 16 and an additional 3.22% on December 17, resulting in a total market value loss of 6.51 billion yuan [2][7]. - Since its return to the A-share market in 2017, 360's stock has declined over 80%, with cumulative losses exceeding 3.9 billion yuan over the past four years [2][10]. Group 3: Historical Financial Data - 360 reported a net profit of 33.72 billion yuan in 2017, but has faced declining profits since 2020, with net losses of 22.04 billion yuan in 2022 and a total of 39.12 billion yuan in losses from 2022 to 2024 [8][9][10]. - Despite ongoing losses, the company distributed a total of 2.1 billion yuan in cash dividends to shareholders from 2023 to 2025 [3][10]. Group 4: Business Segments and R&D Investment - 360's main business segments include internet advertising and services, smart hardware, internet value-added services, and security, with the game business being part of the internet value-added services [10]. - The company has maintained high R&D expenditures, investing over 30 billion yuan annually from 2021 to 2024, and 23.57 billion yuan in the first three quarters of 2025, representing approximately 38.84% of its revenue [10].