April 21, 2022, 360 (601360. SH, hereinafter referred to as "360") Group issued the 2021 annual report and the first quarter report of 2022, during the reporting period, 360's total revenue reached 10.886 billion yuan and profit was 902 million yuan.
Among them, the government and enterprise security business maintained rapid growth, revenue of 1.381 billion yuan, an increase of 70.91% year-on-year, gross profit margin of 67.26%, under the premise of maintaining a high gross profit margin level to continue to maintain rapid growth, the company's revenue structure can be further optimized.
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. Entering the era of digital security, the government and enterprise security business has frequently appeared, the company's accumulated core security capabilities have been fulfilled, and the company's digital security strategy transformation has achieved initial results, sitting on the first share of digital security.
At present, mankind has entered a new era of digital civilization, developed a digital economy, and built a digital China as a national strategy. Many new scenarios such as smart city, smart medical care, industrial Internet, energy Internet, and Internet of Vehicles provide new momentum for digital development. However, digital technology is a double-edged sword, the higher the degree of digitization, the greater the security challenge, the connotation of security has far exceeded the scope of traditional network security, the emergence of cloud security, big data security, Internet of Things security, supply chain security, network communication security, new terminal security, application security and other new security challenges, network security needs to be redefined. In 2022, mankind officially entered the first year of digital security, the systematic digital security capabilities provided by 360 are fundamentally different from the network protection capabilities provided by traditional network security enterprises, and with product solutions that adapt to changes in the security situation, the digital security incremental market in the embryonic state has been completely activated.
During the reporting period, through the "cloud security brain" and "core security brain" to empower related products, 360 achieved a significant increase in the overall customer coverage of the company's security business, completed the full coverage of key customers, 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. The content of the signed projects is also obviously different from the traditional network security software and hardware products, showing the characteristics of infrastructure, service, and operation.
When many traditional network security is still holding on to the shortcomings and fighting in the Red Sea market, 360 has been one step ahead, relying on the digital security system solutions that have invested more than 20 billion yuan in the past 20 years, and frequently signed digital security orders beyond the scope of traditional network security. In 2021, more than 360 projects have become industry benchmark cases, including the strategic cooperation between the government and enterprise security group and Zhengzhou High-tech Industry Investment Group Co., Ltd., which successfully won the bid of 236 million yuan for the "National Cyber Security Industry Base Major Infrastructure Group Project"; the cooperation with Shanghai Changfeng Digital Technology Co., Ltd. to successfully win the bid for the 210 million yuan Shanghai Putuo District Urban Safety Brain Project Informatization and Supporting Facilities Project, helping to improve the overall digital security capabilities of Shanghai; and winning the bid for the Suzhou Industrial Park" 5G + Industrial Internet" offline diagnosis project to create a national industrial Internet security benchmark.
Entering 2022, 360 government and enterprise affairs ushered in a good start, on February 360, it participated in the public bidding of "Zhoukou Digital Economy Security Industrial Park" and successfully won the bid, with a total investment of about 1.6 billion yuan in the industrial park project, of which 360 plans to undertake about 400 million yuan of project investment. It is understood that the "Zhoukou Digital Economy Security Industrial Park" project mainly builds four major types of infrastructure and ten major application scenarios, relying on the 360 cloud security brain to create a security brain for the Zhoukou digital city.
In January 2022, the "Chongqing Security Brain" built by 360 and Hechuan District of Chongqing Municipality was awarded the 2022 IDC Asia Pacific Smart City Award (China Region) by IDC, which empowers smart city security from three dimensions: improving capabilities, talent training, and technology research and development. 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. Obviously, the above projects have far exceeded the scope of traditional network security, and the systematic digital security capabilities created by 360 for cities can dynamically serve the overall development of urban society and economy.
In addition to the 360 City Safety Brain, the 360 Industry Security Brain is also escorting the digital transformation of all walks of life, and through the deployment of the Security Brain Project at the industry level, it strives to eventually build a distributed industry security brain system covering the whole country. By the end of the reporting period, the company's user coverage rate in central ministries and commissions reached 90%, the user coverage rate of central enterprises reached 80%, the user coverage rate of large financial institutions reached 95%, and the coverage rate of operators reached 100%. In 2022, 360 will continue to rapidly improve the customer coverage of the government side and the large enterprise side, seek breakthroughs in corresponding customer orders, and expand revenue sources. By improving local multi-industry access standards, we will break through key industry customers, build a local security ecosystem, lead the development of the digital security industry, and continue to consolidate the leading edge of "digital security first shares".
Upstream journalist Yang Ye intern Liu Jin