Core Viewpoint - Cybersecurity has become an essential element for the orderly operation of modern society, directly impacting public trust, social stability, and national security [1][3] Group 1: National Security and Major Events - Qihoo 360 has completed 87 national security tasks, including major events like the 100th anniversary of the founding of the Communist Party and the 2022 Beijing Winter Olympics, achieving a "zero incident" goal for the first time in Olympic history [4][5] - During the 2024 National Two Sessions, Qihoo 360 formed the "Qihoo 360 Red Cloud Team" to ensure zero network interruptions through real-time threat monitoring [5] Group 2: Digital Transformation and Technological Innovation - The company provides security protection, monitoring, and hosting services to over 4,000 industrial internet enterprises, facilitating their digital transformation [5] - Qihoo 360 has invested heavily in AI, with key products like AISOC and Tianyan already incorporating AI capabilities, enhancing its position in cybersecurity technology [6] Group 3: Social Responsibility and Talent Development - Qihoo 360 emphasizes social responsibility through various initiatives, including partnerships with over 70 universities to develop cybersecurity courses and training programs [7] - The company donated 8 million yuan to its foundation in 2024, supporting rural revitalization and healthcare initiatives [7] Group 4: Environmental Commitment - Qihoo 360 actively responds to national "dual carbon" goals, integrating green development into its corporate strategy and disclosing verified greenhouse gas emissions data [8] Group 5: Recognition and Awards - The company has received multiple accolades for its social responsibility practices, including a "three-star" rating for data security and personal information protection [9] - Qihoo 360 was the only cybersecurity company listed in the S&P Global "Sustainability Yearbook (China Edition) 2025," highlighting its leadership in sustainable development [9]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [3][7]. Core Insights - The company has shown signs of stabilization in Q1 2025, with a 16% year-on-year increase in new orders, indicating a recovery in downstream customer demand. The focus on cash flow management and AI security has contributed to new business growth [1][7]. - Despite a significant decline in revenue and profits in 2024, the company is expected to see a recovery in performance due to improving customer demand and the development of AI technologies [7]. Financial Data and Valuation - Total revenue for 2023 is projected at 6,442 million, with a year-on-year growth of 4%. However, a sharp decline of 32% is expected in 2024, followed by a recovery with 8% growth in 2025 [2][13]. - The company reported a net profit of 72 million in 2023, but a loss of 1,379 million is anticipated for 2024, with further losses expected in 2025 [2][13]. - The company's current stock price is 30.75 yuan, with a total market capitalization of 21.1 billion [3]. Operational Performance - The company has improved its cash collection efficiency, achieving a cash collection ratio of 109.40% in 2024, a significant increase of 26.04 percentage points year-on-year [7]. - The introduction of AI technologies has enhanced product offerings, with a notable increase in the use of AI-assisted programming among R&D personnel, reaching nearly 80% by the end of Q1 2025 [7]. Future Outlook - The report anticipates a gradual recovery in the company's performance, driven by the resurgence of customer demand and the integration of AI into its product lines [7]. - The projected net profits for 2025, 2026, and 2027 are -307 million, 50 million, and 142 million respectively, indicating a path towards profitability [2][13].