On April 26, 三六零安全科技股份有限公司 (360 Security Technology Co., Ltd.) released its annual report for 2024 and the first quarter report for 2025, revealing further worsened losses. Since its first annual loss in 2022, the company has accumulated a total loss of 4 billion Chinese yuan over the past three years.
The reports indicate that the company’s total operating income for the full year of 2024 was 7.948 billion yuan, a 12.23% decrease compared to the previous year. The net loss attributable to the parent company owner reached 1.094 billion yuan, more than double the 492 million yuan loss from the same period last year, leading to an exacerbation of losses.
In the first quarter of 2025, the company recorded a net loss of 273 million yuan, compared to a 110 million yuan loss from the same period last year. The losses continued to deepen.
According to the annual report data, 三六零’s operating income in 2024 was 7.948 billion yuan, a 12.23% decline from the previous year. This decline was mainly attributed to weak growth in core business and intensified market competition.
As a leading cybersecurity enterprise in China, 三六零 has been investing continuously in areas such as internet security, government and enterprise security, and smart hardware. However, the company’s overall revenue performance has been poor due to fluctuations in the Chinese economy and changes in industry demand.
Furthermore, in 2024, the company’s net loss attributable to the parent reached 1.094 billion yuan, more than doubling from the previous year. The reasons for the increased losses include sustained high research and development expenses, insufficient profitability in certain business lines, and increased marketing costs. Additionally, the exploration in the smart hardware and new business sectors has not yet formed a stable profit model, which has dragged down the overall financial performance.
The first quarter report of 2025 reveals that 三六零 generated approximately 2 billion yuan in operating income, a slight decline compared to the previous year. The net loss amounted to 273 million yuan, further expanding from the 110 million yuan loss from the same period last year. The escalation of first-quarter losses is attributed to the continued increase in research and development investment and a slowdown in growth of traditional businesses. The high technological barriers and rapidly iterative nature of the cybersecurity industry demand companies to maintain high-intensity research and development investment, which has put certain pressure on the company’s profitability in the short term.
According to publicly available information, 三六零 was founded by Zhou Hongyi in 2005. Looking back at its financial reports, from 2017 to 2022 (excluding 2019), the company’s net profits hovered around 3 billion yuan.
On May 22, 2020, the U.S. Department of Commerce added 三六零 and 24 other entities to the Entity List under the U.S. Export Control Regulations. The U.S. believed that these technologies supported the Chinese Communist Party’s military plans and contributed to human rights abuses by the Chinese government.
By 2021, 三六零’s net profit dropped by 70%, and by 2022, it turned into a loss of 2.204 billion yuan. This marked the first annual loss since the company returned to the A-share market in 2018, and since then, it has continued to suffer losses. In 2023, the net loss was 492 million yuan, followed by the accumulated loss of 4 billion yuan over three years by the end of 2024, resulting in the evaporation of market value exceeding 400 billion yuan.