Core Viewpoint - The company reported stable revenue growth in Q1 2025, with a narrowing of losses compared to the previous year [1][4]. Financial Performance - Q1 2025 revenue reached 364 million yuan, a year-on-year increase of 1.84% [1]. - The net profit attributable to shareholders was -102 million yuan, a 32.14% reduction in losses compared to Q1 2024 [1]. - The non-recurring net profit was -108 million yuan, with a 30.41% reduction in losses year-on-year [1]. - Gross margin stood at 55.73%, a decrease of 4.76 percentage points compared to the previous year [1]. Cost Management - The company has implemented cost control measures starting in 2024, leading to a reduction in total operating expenses to 357 million yuan, down 4.8% year-on-year [2]. - Selling expenses were 173 million yuan, a decrease of 4.27% [2]. - R&D expenses were 133 million yuan, down 5.39% [2]. - Management expenses were 51 million yuan, a reduction of 5.95% [2]. Strategic Initiatives - The company is focusing on the "AI + Security" sector, launching the Fengyunwei AI security capability platform, which integrates various models and knowledge bases to enhance security operations and responses [2]. - The AI-Scan product was introduced for assessing risks associated with large models, covering key technologies for security throughout the AI lifecycle [2]. Market Outlook - The company is expected to benefit from the acceleration of Agent deployment driven by open-source models like DeepSeek and Qwen3 [3]. - Revenue forecasts for 2025-2027 have been adjusted to 2.583 billion, 2.792 billion, and 3.148 billion yuan respectively, with net profit forecasts revised to 7 million, 64 million, and 116 million yuan [4].

Core Viewpoint - The company reported significant revenue growth and improved operational quality in 2024, with a focus on technological innovation and AI integration in security products [1][2][4]. Group 1: Financial Performance - In 2024, the company achieved revenue of 2.358 billion yuan, a year-on-year increase of 40.29% [1][2]. - The net profit attributable to shareholders was -365 million yuan, reflecting a year-on-year improvement of 62.66% [1]. - The company reported a gross margin of 53.80%, an increase of 7.65 percentage points compared to the previous year [2]. Group 2: Revenue Breakdown - Revenue from security products reached 1.137 billion yuan, up 45.16% year-on-year [2]. - Revenue from security services was 865 million yuan, growing by 18.40% [2]. - Revenue from third-party products surged to 355 million yuan, marking a 112.82% increase [2]. - Revenue from government and public sector clients was 639 million yuan, up 46.61% [2]. - Revenue from energy and enterprise clients reached 735 million yuan, a growth of 52.74% [2]. Group 3: Cost Management and Cash Flow - The company effectively controlled costs, with total expenses for sales, management, and R&D amounting to 1.578 billion yuan, a decrease of 6.85% year-on-year [3]. - Operating cash flow increased significantly to 136 million yuan, a growth of 167.2% [3]. Group 4: Technological Advancements - The company made notable progress in APT detection, monitoring, and capture technologies, as well as breakthroughs in supply chain and cloud-native security [3]. - New products launched in the data security field include an integrated data security gateway and an API risk monitoring and auditing system [3]. - The company has adapted its products to various CPU and operating systems, enhancing its capabilities in the domestic innovation sector [3]. Group 5: AI Integration and Service Growth - The company launched the Fengyunwei AI security capability platform, integrating various AI models and tools for enhanced security management [4]. - The AI-Scan product was introduced for risk assessment in large model software supply chains [4]. - The AI+SOC Eagle Eye security operation center improved detection and response times by over 50%, with more than 70% of attacks being automatically assessed [4]. - Data security-related orders grew by over 100% in 2024, driven by the integration of AI in services [4]. Group 6: Industry Outlook - The network security industry is showing signs of recovery, with ongoing demand from downstream sectors [5]. - The company is expected to continue its quality improvement strategy and technological innovation, with projected EPS of 0.02, 0.09, and 0.14 yuan for 2025-2027 [5].

Investment Rating - The investment rating for the company is not explicitly stated in the provided documents [1]. Core Insights - The company has shown significant recovery in operational quality, with a revenue of 2.358 billion yuan in 2024, representing a year-on-year growth of 40.29% [2]. - The company reported a net profit attributable to shareholders of -365 million yuan in 2024, which is a 62.66% improvement compared to the previous year [2]. - The company has focused on expanding its "AI + Security" product line, with notable growth in orders for security services [3]. Financial Performance - In 2024, the company achieved a revenue of 2.358 billion yuan, with a breakdown showing security products generating 1.137 billion yuan (up 45.16%), security services at 865 million yuan (up 18.40%), and third-party products at 355 million yuan (up 112.82%) [2]. - The gross margin for 2024 was 53.80%, an increase of 7.65 percentage points year-on-year, indicating a significant recovery in operational quality [2]. - The company managed to reduce total expenses by 6.85% year-on-year, with sales, management, and R&D expenses amounting to 1.578 billion yuan [2]. - Operating cash flow increased by 167.2% year-on-year, reaching 136 million yuan in 2024 [2]. Product and Technology Development - The company has made significant advancements in various technology fields, including APT detection and monitoring, and has launched several innovative products in data security [2][3]. - The introduction of the "Fengyunwei AI Security Capability Platform" and the "AI-Scan" model risk assessment product highlights the company's commitment to integrating AI into its security offerings [3]. - The company has successfully adapted its products to various domestic CPU and operating systems, enhancing its competitiveness in the domestic market [2]. Future Earnings Forecast - The company is expected to continue its growth trajectory, with projected EPS of 0.02, 0.09, and 0.14 yuan for 2025, 2026, and 2027 respectively, reflecting a recovery in profitability [5].