The big era of digital security is coming.
In February this year, the International Data Corporation (IDC) released the "2022 Global Digital Transformation Forecast - China Enlightenment", pointing out that the digital transformation of Chinese enterprises is changing from a few departments to covering all departments, from a single technology to the integration of various digital technologies, and the value of digital transformation has also expanded from improving efficiency to group control, product services, business models and other aspects.
At the same time, in the process of digital transformation, security risks are also spread across key infrastructure, industrial Internet, Internet of Vehicles, energy Internet, digital government, smart city and other major scenarios, once attacked, the consequences will be unimaginable.
This is a new problem in the era of the digital economy, but it also brings new opportunities to this era.
As a leader in the security industry, 360 (601360. SH, hereinafter referred to as "360"), its founder Zhou Hongyi announced at the beginning of this year that 360 will comprehensively transform digital security companies and devote themselves to digital industrialization.
Through the recently released annual performance report, we can also glimpse the transformation determination of this veteran Internet security company.
In 2021, 360 achieved operating income of about 10.886 billion yuan and net profit attributable to shareholders of listed companies of about 902 million yuan. Among them, the revenue of "safety and others" was 1.381 billion yuan, an increase of 70.91% year-on-year. In the first quarter of this year, 360 has completed the collection of 547 million yuan of urban safety orders, and the completion of safety-related operating income has reached 39.6% in 2021.
01
Expand the frontier
With the comprehensive upgrading of the company's development strategy, the government and enterprise security business has become the second growth curve of 360. The continuous outbreak of government and enterprise security revenue has benefited from 360 breaking through the traditional network security category and actively exploring the digital security incremental market.
According to the 360 financial report, the company has completed a total of nearly 2,000 new contracts with customers, covering more than 90% of the central ministries and commissions, 80% of central enterprises, 95% of large financial institutions, and has 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.
Since 360 officially launched government and enterprise affairs, it has successively won bids for a number of urban network security projects of hundreds of millions of yuan, and a new generation of security capability system with 360 security brain as the core has successively served the construction and operation of security infrastructure in Chongqing, Tianjin, Qingdao, Hebi, Suzhou and other cities.
Behind the strong performance is the continuous investment in research and development. In 2021, 360's R&D expenditure reached 3.1 billion yuan, accounting for 28.74% of revenue, an increase of 8.97% year-on-year. With the support of huge research investment, 360 has formed the most powerful "white hat army" in the Eastern Hemisphere, with 4081 R&D personnel, accounting for 55.20% of the company's total employees, with 16 research teams, 8 research institutions, and 4 national engineering laboratories, which is the company with the most loopholes and APTs in the world.
From 2017 to 2021, 360 Group ranked first in the world in terms of the number of people and overall rankings on the Microsoft MSRC Security Elite List for five consecutive years.
As part of the digital security product matrix, in recent years, 360 Group has also begun to get involved in the research of vehicle networking security, and is committed to promoting the progress of vehicle networking security technology.
According to the statistics of the 360 Vehicle Networking Security Laboratory, more than 1,600 vulnerabilities were found in 53 models of intelligent networked cars sold by 25 car companies in China, which can lead to attackers controlling cars remotely or closely. According to Upstream's Global Automotive Cybersecurity Report, the number of publicly reported attacks on cars increased by 225% in 2021 compared to 2018.
As the earliest entrant, 360 has always actively cooperated with the automotive industry to explore the best solution for the safe landing of the Internet of Vehicles. Up to now, 360 has established a joint laboratory for automobile safety with more than 10 car companies, accumulatively protecting more than 20 million cars, and more than 80% of mainstream automobile manufacturers have adopted the vehicle networking security technology and service system developed by 360.
In order to comprehensively improve the safety and fluency of the vehicle and machine system, 360 launched an automotive safety guard product specially developed for intelligent and connected vehicles this year. It is understood that at present, 360 Automotive Safety Guard has been deployed on the new Nezha Automobile U, which is the first time that 360 Company's Vehicle Networking Security Products have "boarded the car", and 360 has also taken the first step in the mass production of Vehicle Networking products.
02
First year of numbers safety
Following the Cybersecurity Law, a number of laws and regulations such as the Data Security Law and the Regulations on the Security Protection of Critical Information Infrastructure will be implemented this year, and 2022 will be called the "First Year of Digital Security".
With the advancement of global digitalization, cyber threats are also accelerating and increasing. According to Accenture's findings, in the first half of 2021, the number of global cyber attacks represented by ransomware attacks increased by 125% compared with the same period in 2020; netscOUT also said in its latest Threat Intelligence Report that in 2021, cybercriminals launched 9.75 million distributed denial of service (DDoS) attacks.
According to the latest 2022 cyber security report released by Check Point, the world's leading network security solution provider, the government and the military are important targets for cyber attackers in 2021, which shows that data security has become a major issue related to national security and economic development, and network security has also become a mandatory question for all enterprises and even the entire society.
With the rapid popularization of IOT equipment, the continuous development of intelligent vehicles, industrial informatization, big data and other industries, network security has extended from virtual space to real physical space, related to personal safety, infrastructure security, social security, urban security and even national security, becoming a "big security" issue at the national strategic level.
The advent of the era of digital security has also emerged on the investment and financing side. According to IDC data, the total investment in global cybersecurity-related hardware, software and services is expected to reach US$151.95 billion in 2021, of which China's cybersecurity-related expenditure will grow at a compound annual growth rate of 20.5%, ranking first in the world.
Based on core technologies such as cloud security brain, 360 has established four major missions of "national security, urban security, industry security, and enterprise and enterprise security" in the era of great security, escorting the digital economy.
In an internal letter to 360 employees at the beginning of the year, Zhou Hongyi said that as the Internet enters the second half, the digital economy has become a national strategy, governments at all levels and traditional enterprises will become the protagonists of digitalization, all industries are worth redoing with digital technology, and all enterprises will also be digital enterprises. The security industry should be redefined, and network security should be upgraded to digital security in order to help the industrial digital strategy, match the development of the national digital economy, and escort the digital civilization of mankind.
In February this year, 360 "Next City" won the bid for the 1.6 billion digital security project in Zhoukou. At the same time, the first quarter report of 2022 disclosed in the same period shows that 360 has completed the revenue recognition of 547 million yuan of urban security orders in the first quarter of this year, and the completion progress of safety-related operating income has reached 39.6% of 2021, and the reserve customers in 2021 are also signing contracts.
For 360, this is both the arrival of the era of "great security" and the arrival of 360's own new era.
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