Core Viewpoint - China Mobile's acquisition of Qihoo 360 (002439.SZ) has led to disappointing financial results, with a significant revenue decline and the company's first annual loss recorded [1][2]. Financial Performance - In 2024, the company reported total revenue of 3.315 billion yuan, a year-on-year decrease of 26.44% [2][9]. - The net profit attributable to shareholders was -226 million yuan, marking a shift from profit to loss for the first time since its listing [2][3]. - The company has experienced a cumulative cash flow deficit of 719 million yuan over three years from 2022 to 2024 [6]. Business Segments - The two core business segments, security products and operational services, both saw significant declines, with security product revenue at 1.905 billion yuan (down 26.12%) and operational services revenue at 1.383 billion yuan (down 27.2%) [9][7]. - Despite some growth in specific areas like cloud security and trusted security services, the overall revenue decline was not mitigated [7][9]. Strategic Challenges - The company faced challenges due to increased R&D investments, which rose by 14.95% to 980 million yuan, accounting for 29.56% of total revenue [3]. - Investment income and fair value changes decreased by approximately 352 million yuan (after tax), negatively impacting net profit [3]. Market Reaction - Since China Mobile's acquisition, the company's stock price has dropped nearly 40%, with a significant decline observed from the acquisition date [1][12]. - As of April 16, 2025, the stock closed at 15.18 yuan per share, below the acquisition price of 14.35 yuan [12]. Regulatory Issues - The company's subsidiary, Beijing Qihoo 360 Information Security Technology Co., Ltd., has faced procurement qualification suspensions due to alleged violations, impacting its operational capabilities [9][12].