Core Viewpoint - The company experienced a significant decline in performance in 2024, with a notable drop in net profit and cash flow, attributed to increased operational costs and a challenging market environment [2][14][20]. Financial Performance - In 2024, the company achieved operating revenue of 294 million RMB, a year-on-year increase of 0.93%, but the net profit attributable to shareholders was only 1.63 million RMB, down 96.17% [2][15]. - The net cash flow from operating activities was -63.39 million RMB, a decline of 493.39% compared to the previous year [2][15]. - The company’s gross profit margin decreased from 74.19% to 72.64%, reflecting increased costs [15][20]. Business Segments - Revenue from cybersecurity products and services, as well as from the cyberspace mapping business, both saw a decline of 5-6% year-on-year [2][10]. - The newly acquired satellite internet security business generated revenue of 17.94 million RMB in 2024 [2][10]. Customer and Sales Analysis - The company provided detailed information on its top five customers, including contract amounts and sales models, indicating a focus on direct sales and channel partnerships [3][4]. - The sales model includes direct sales to end-users and channel sales through various partnerships [7][10]. Market Context - The overall cybersecurity market in China faced challenges, with 29 listed companies reporting a total revenue decline of 5% in 2024, and 17 companies reported losses, indicating a tough competitive landscape [7][18]. - The company’s performance aligns with industry trends, where many peers also experienced significant profit declines [18][20]. Strategic Initiatives - The company is investing heavily in expanding its sales and R&D teams to enhance its competitive position, with a focus on long-term growth despite short-term financial pressures [14][19]. - The satellite internet security business is seen as a strategic growth area, leveraging existing capabilities in cybersecurity and mapping technologies [12][13][20].