360 Security Technology (SH:601360) Chang Jiang Shang Bao·2025-12-18 02:11Core 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's founder Zhou Hongyi of falsifying accounts, claiming that the company had engaged in financial fraud amounting to "tens of billions" [1][4]. - In response, 360 and Zhou issued statements denying the allegations, asserting that the claims are completely unfounded and that the company operates in compliance with laws and regulations [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 since faced declining revenues and profits, culminating in a total loss of 39.12 billion yuan from 2022 to 2024 [8][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 gaming business implicated in the fraud allegations categorized under 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].