On April 21, 360 Security Technology Co., Ltd. (hereinafter referred to as "360") released its 2021 annual performance announcement, during the reporting period, the company achieved operating income of about 10.886 billion yuan and net profit attributable to shareholders of listed companies of about 902 million yuan. During the same period, 360 released the first quarter report of 2022, and the company achieved operating income of about 2.526 billion yuan and net profit attributable to shareholders of listed companies of about 221 million yuan.
According to the data of the 360 annual report, 360 has achieved a landmark breakthrough in the transformation to digital security. During the reporting period, the company achieved "safety and other" revenue of 1.381 billion yuan, an increase of 70.91% year-on-year, and a gross profit margin of 67.26%, and continued to maintain a high-speed growth momentum under the premise of maintaining a high gross profit margin level. It is worth noting that the first quarter report of 2022 shows that the digital security business has made a smooth start, the company has completed the collection of 547 million yuan of urban security orders in the first quarter, and the completion progress of safety-related operating income has reached 39.6% in 2021.
The continuous outbreak of government and enterprise security revenue is due to 360 breaking through the traditional network security category and actively exploring the digital security incremental market. During the reporting period, through the "cloud security brain" and "core security brain" to empower related products, the overall customer coverage of the company's security business has been significantly improved, the full coverage of key customers has been completed, and the number of regional customers and the amount of new signatures have increased significantly: the company has completed new contracts with nearly 2,000 customers, and the cumulative customers have covered more than 90% of the central ministries and commissions, 80% of central enterprises, 95% of large financial institutions, and carried out network security cooperation with millions of small and medium-sized enterprises. Relying on the continuous optimization and upgrading of the urban strategy, in 2021, while completing the development of 5 important cities, we will deeply contact a number of cities, and the momentum is strong.
Among them, a number of projects in 2021 have become industry benchmark cases. Including, the government and enterprise security group and Zhengzhou high-tech industry investment group co., LTD. reached a strategic cooperation, successfully won the bid of 236 million yuan "national network security industry base major infrastructure group project". In cooperation with Shanghai Changfeng Digital Technology Co., Ltd., it successfully won the bid of 210 million yuan for the informatization and supporting facilities project of the Urban Safety Brain Project in Putuo District, Shanghai, which will help improve the digital security capabilities of Shanghai as a whole. As well as winning the bid for the "5G + Industrial Internet" offline diagnosis project in Suzhou Industrial Park, it has created a national industrial Internet security benchmark. Entering 2022, it is ushering in a good start, february 360 participated in the "Zhoukou Digital Economy Security Industrial Park" public bidding and successfully won the bid, the total investment of the industrial park project is about 1.6 billion yuan, of which 360 plans to undertake the project investment of about 400 million yuan.
At the same time, 360's scientific and technological strength and project execution have been recognized by relevant departments and widely praised by the market. During the reporting period, the company became one of the first batch of network security enterprises to obtain the national information security service qualification and security operation level. The "Chongqing Security Brain" built by the company in Hechuan District, Chongqing Was awarded the "2022 IDC Asia Pacific Smart City Award (China)" by IDC, and as a best practice model for the construction of smart city security operation centers, the "Hechuan Model" has been copied to Tianjin, Qingdao, Hebi, Suzhou, Zhengzhou and other places. In the "2021 China Government and Enterprise Digital Network Security Research Report" released by Yiou Think Tank, 360 ranked first in the "List of Digital Network Security Enterprises of China's Government and Enterprises".
Figure List of China's top 50 government and enterprise digital network security enterprises
Investment in the future, 360 although facing profit pressure, but still unswervingly adhere to science and technology to serve the country, continue to increase technology research and development, the reporting period invested 3.129 billion yuan in research and development expenses, accounting for 28.74% of revenue, an increase of 8.97% year-on-year, so far the cumulative investment in research and development of more than 23 billion, to help the country to solve the "visible" network attack "card neck" problem, brave to take on the national strategic scientific and technological strength, but also to a certain extent led to a decline in net profit. During the reporting period, 360 companies found 15 overseas APT organizations that launched attacks against China, and a total of 50 overseas APT organizations have been found. Among them, on March 6, 2022, 360 released the "Prelude to Cyber Warfare: The National Security Agency NSA (APT-C-40) Launched An Indiscriminate Attack on the World for More Than Ten Years"; on March 22, 360 issued a technical report again on the NSA incident, fully exposing the Quantum (Quantum) attack platform, the representative cyber weapon used by the NSA against targets in China, showing 360's contribution to protecting the national cyberspace security.
The scientific research strength has also been recognized by the industry, and 360 actively participates in the formulation of international and domestic standards, especially in the forward-looking participation in the standards of vehicle networking security and industrial Internet security. In recent years, 360 companies have led 12 standards and participated in more than 320 standards, of which more than 120 have been released. During the reporting period, 360 led the release of 2 standards, participated in the release of 37 standards, and participated in 66 standards under research, involving security brains, internet of vehicles /industrial Internet, intelligent hardware, mobile terminal security, personal information protection, AI, big data, xinchuang and other fields. Among them, itu-T X.1376 "Abnormal Behavior Detection Mechanism for Connected Car Safety Based on Big Data", which was developed by the company in the field of internet of vehicles, is the first international standard for automobile safety led by the mainland and released globally in the six languages of the United Nations.
At the same time, as a high-tech enterprise, 360 Company continues to increase talent investment. During the reporting period, the number of security experts reached 4,081, accounting for more than 55% of the company's employees. From 2017 to 2021, 360 ranked first in the world in terms of the number of entrants and comprehensive rankings on the world's most eye-catching Microsoft MSRC security elite list. During the reporting period, the company's think tank Future Security Research Institute achieved three national project results: the National Engineering Laboratory of Big Data Collaborative Security Technology, the National Open Innovation Platform for a New Generation of Artificial Intelligence, and the Xinchuang Security Technical Committee.
Facing the future, on January 26, 2022, Zhou Hongyi, founder of 360 Group, issued an internal letter to all employees, announcing that the first year of digital security is coming, and 360 will use digital thinking to reshape network security, comprehensively upgrade and transform into a digital security company, and open up a new digital security incremental market.
Leifeng Network