360 has lost money for two consecutive years, and the income of employees has generally declined, but Zhou Hongyi has raised his salary

This article is the 780th original work of Deep Dive ATOM

In the era when traffic is king, 54-year-old Zhou Hongyi once again came out of the limelight.

First of all, when he used his shareholder status to inspect Nezha, a new energy vehicle, he directly opened a live broadcast, and in the compliments of Nezha CEO Daniel Zhang, Lao Zhou did not give face at all, and it was difficult for the other party to step down.

It didn't take long for a high-profile order to sell cars on April 18.

said that he wanted to sell the Maybach 600, which had been with him for 9 years, and even shouted for the new energy vehicle bosses to give him a experience car.

Perhaps it was a concern about the strength of his own brand, this time Daniel Zhang did not respond immediately, but let Li Bin of NIO take the lead and take the lead in talking.

Subsequently, many brands including AVATAR, Deep Blue, and Yangwang responded one after another, and Xiaopeng and ZEEKR drove their flagship models to the 360 office building to win the favor of the "red-clothed leader".

For a time, Zhou Hongyi has become a favorite of many new energy vehicle brands, and the scenery is unique.

It's just that, compared with his own strong IP halo, as the chairman and CEO, his achievements in the base camp of 360 acres and three points of land seem to be small.

On the second day of its high-profile car sale (April 19), 360 also released its 2023 annual report.

Lao Zhou did not lead 360 and handed over a satisfactory report card to the outside world. In the past year, this veteran Internet company is still mired in losses.

Consecutive losses

In 2023, 360's revenue will be 9.055 billion yuan, a year-on-year decrease of 4.89%, a net profit loss of 499 million yuan, a year-on-year decrease of 77.66%, and a net loss attributable to the parent company of 492 million yuan, a year-on-year decrease of 77.68%.

Although the amount of loss has narrowed significantly year-on-year, compared with the revenue scale of 100 billion yuan and the net profit of 10 billion yuan of other major Internet manufacturers, 360's results are not only "shabby", but also seem to be sorry for the title of "big factory".

In terms of breakdown, in its revenue last year, the highest was advertising revenue, which was 4.521 billion yuan, down 4% year-on-year, while the start-up security business has further shrunk to 1.765 billion yuan, down 1.48% year-on-year, and smart hardware also performed flat, at 1.57 billion yuan, down 16.8% year-on-year.

The year-on-year increase in revenue was in value-added services and other businesses. The former was 1.099 billion yuan, a year-on-year increase of 1.62%, while other businesses grew the most, reaching 65.58%, but the foundation was too low, and the revenue was only 138 million yuan.

In terms of the layout of AI and other businesses in the future, Zhou Hongyi seems to be thundering and raining. The strongest evidence is the year-on-year decline in R&D expenses.

2023 360 Main Expenses Expenditure Table

When ChatGPT swept the world last year, he was one of the most vocal follow-up calls among domestic Internet bigwigs, and some of his remarks at that time even became the guiding light for the development of GPT in China.

However, 360's annual report last year showed that its investment in R&D was only 3.104 billion yuan, a decrease of 6.34% from 3.314 billion yuan in 2022.

Investors are relieved that 360's cash reserves have increased significantly year-on-year. But its short-term debt has also increased substantially, albeit from a modest base.

As of the end of the reporting period, 360's short-term borrowings in one year were 831 million yuan, compared with only 700,000 yuan at the beginning of the year, and the notes payable were 60.218 million yuan, an increase of 139.34% over the beginning of the year. There is also a long-term loan of 350 million yuan, which was 0 at the beginning of the year.

At the end of the period, it had cash and equivalents of 11.14 billion yuan, an increase of 84.35% year-on-year.

Only Zhou Hongyi's salary has risen

Although 360 has handed over a loss to its investment in the past year, this has not affected Zhou Hongyi's income in the slightest.

In 2023, 360 also carried out a wave of layoffs, and as a result, the total personnel expenses were reduced, but the income of existing employees was not reduced much.

As of the end of 2023, 360 has a total of 5,990 employees, a decrease of 7.58% from 6,481 in 2022. Last year's total employee expenditure was $3,773 million, a decrease of 9.48% from $4,168 million in 2022. Converted, the per capita annual income of 360's employees in 2023 will be 629,900 yuan, a decrease of 3.26% from 651,100 yuan in 2022.

On the other hand, in terms of senior executives, the total remuneration of directors, supervisors and senior executives last year was 29.6831 million yuan, a decrease of nearly 3% from 42.2507 million yuan in 2022.

But what is surprising is that as the boss, Zhou Hongyi's salary last year did not decrease with the decrease in the income of his executives and employees, but increased his salary year-on-year. His annual salary last year was 8.8245 million yuan, an increase of 58,100 yuan from 8.7664 million yuan in 2022.

A list of the salaries of 360 directors, supervisors and senior executives in 2022

2023 360 directors, supervisors and senior executives at a glance

In addition, after transferring the 446.6 million shares held by himself to his ex-wife Hu Huan last year, he also directly owns 374.7 million shares, with a shareholding ratio of 5.24%, plus the shares of Tianjin Qixin Zhicheng, the controlling shareholder of 360, Zhou Hongyi's final stake in 360 is 13.26%.

As the CEO of 360, Zhang Bei's salary last year was 4.754 million yuan, a decrease of 8.39% from 5.1895 million yuan in 2022.

In addition, Vice President Jiao Jiao's annual salary last year was 4.9441 million yuan, 3.94% less than 5.1471 million yuan in 2022.

And after 360's annual report was issued, there was no surprise that its stock price fell. As of the close of trading on April 19, it was 7.98 yuan per share, down 2.68% from the previous trading day, and the current total market value is 57.02 billion yuan.