Recently, several leading internet security companies in China have successively released their financial reports for the full year of 2024 and the first quarter of 2025. The data indicates that the industry as a whole is facing significant operational pressures, with most companies experiencing continued losses or a notable decline in profitability. This phenomenon not only reflects the challenges within the internet security sector but also mirrors the ongoing downward pressure on the Chinese economy in the current environment.
According to the financial reports, Qi An Xing recorded a net loss of 1.363 billion yuan in 2024, and continued to incur a loss of 418 million yuan in the first quarter of 2025. Although the losses have narrowed compared to the same period last year, the leading enterprise in the Chinese enterprise network security market has yet to fundamentally reverse its loss-making trend.
Another major player in the Chinese internet security industry, Venustech, is also facing difficulties. In 2024, the company reported a net loss of 365 million yuan, and in the first quarter of 2025, the net loss reached 102 million yuan.
An Bo Tong, which provides security platforms for many Chinese ministries and state-owned enterprises, also reported worrying financial performance. In 2024, the company incurred a net loss of 119 million yuan, transitioning from profit to loss; and in the first quarter of 2025, it continued to record a loss of 48.68 million yuan, with no improvement in its situation even after adjusting for non-recurring items.
However, some companies are striving to break free from the predicament. Sangfor Technologies achieved a net profit of 83.01 million yuan in 2024, reversing the loss of 371 million yuan in the same period of the previous year; although in the first quarter of 2025, it still incurred a loss of 68.3888 million yuan. AsiaInfo Security achieved a net profit of 9.5906 million yuan in 2024, turning losses into gains compared to the previous year, but in the first quarter of 2025, it once again suffered losses, with a net loss of 227 million yuan, and the extent of the losses widened compared to the same period last year.
As a key participant in the industry, Sangfor Technologies maintained a slight profit in 2024, with a net profit of 197 million yuan, representing a marginal decrease of 0.49% year-on-year. In the first quarter of 2025, it still incurred a loss of 250 million yuan, although narrower than the loss of 489 million yuan in the same period last year, profitability has not been realized.
Analysts point out that the challenges facing the Chinese internet security industry may reflect broader changes in the economic environment. On the one hand, the slowdown in the pace of corporate digital transformation has resulted in less-than-expected growth in demand for network security products; on the other hand, factors such as intensified industry competition and rising research and development costs have also put pressure on companies’ profitability.