On April 19, 360 released its 2023 annual report and financial report for the first quarter of 2024, with a global loss of 492 million in 2023, which is a significant narrowing compared with a loss of 2.2 billion in 2022, and a loss of 100 million in the first quarter of 2024, with a loss of 330 million in non-net profit, compared with a non-net profit loss of 194 million in the first quarter of 2023, the loss continues to expand.
Judging from the first quarter of 2024 alone, it is still unknown whether 360 will be able to turn losses into profits throughout the year.
Losses for two consecutive years and continued losses in the first quarter of the third year do not seem to be enough to explain anything, and if we look at the time span, it is not difficult to find the problem.
The peak of 360's operating income was in 2018, which can be described as "the peak of return", this year's operating income of 360 was 13.129 billion, and then it deteriorated, and the operating income from 2019 to 2023 was 12.841 billion, 11.615 billion, 10.886 billion, 9.52 billion, and 9.055 billion respectively. It's amazing that the operating income is declining every year, and it hasn't "struggled".
The peak net profit of 360 is in 2019, and the net profit from 2019 to 2023 is 5.98 billion, 2.913 billion, 900 million, -2.2 billion, and -492 million respectively, basically continuing the style of "return is the peak".
It should be particularly emphasized that the net profit of 360 in 2018 was 3.535 billion, and the net profit of 360 in 2019 was 5.98 billion.
Relevant performance commitments show that from 2017 to 2019, the net profit of 360 will not be less than 2.2 billion yuan, 2.9 billion yuan and 3.8 billion yuan respectively. Otherwise, share and cash compensation will be required. It should be pointed out that in 2019, the non-net profit deducted by 360 was actually only 3.52 billion.
After the completion of the performance gambling, the operating income has declined year by year, and the net profit has suffered a continuous loss for two years.
Zhou Hongyi is one of the few entrepreneurs in China who wants to become an Internet celebrity, to be honest, if it is in the period when the pressure of performance gambling is the greatest, I am afraid that there is not so much thought at all, and it is spent on showing up.
Of course, Internet marketing is indeed a sharp weapon in today's era, bringing goods to Yu Minhong's live broadcast, which itself is far from his main business. In other words, we still don't know the necessity of Zhou Hongyi becoming an Internet celebrity for the development of enterprises, other entrepreneurs can directly monetize their corporate products through Internet marketing, and Zhou Hongyi is a bit of a pure entertainment taste.
It is a good thing in itself to continuously improve yourself through Internet learning, and it is necessary to guide the trend rather than be coerced by the trend, especially as an entrepreneur, it is very necessary to maintain a calm thinking of "staying out of the way".
You can't be an Internet celebrity for the sake of becoming an Internet celebrity, entrepreneurs must be more pragmatic than ordinary workers, and the enterprise itself is right.
Spending a lot of time thinking about how to do a business better is more important than being an influencer itself, because entrepreneurs have a different mission. We are talking more about the ideological level, because thought determines action, and action interprets thinking.
In the field of investment, Zhou Hongyi is swept up in the trend, and the traces of "slipping away" are too obvious.
Some observers pointed out that the reason why 360 suffered a large loss in two years is related to the investment in Nezha Automobile. Theoretically, the gross profit margin of 360 will be as high as 60% in 2023, although the operating income has been declining for many years, it will not fall into a loss. The fundamental problem, there is a problem with investment thinking.
In an interview with the media in 2022, Zhou Hongyi talked about the mental process of investing in Nezha Automobile: because the Internet of Vehicles is very hot, it should be involved, which of course has the suspicion of "slipping away". Since the new car-making force "Wei Xiaoli" has been listed, and it can only invest in other companies, Xianxian Finance believes that when you can't embrace the leader, it is actually not wise to embrace the little brother instead.
What is ironic is that in the end, there are two remaining companies available for Zhou Hongyi to invest, one is Leapmotor and the other is Nezha. Because he didn't like the name Leap, he invested in Nezha Automobile instead.
In March 2024, Zhou Hongyi couldn't suppress his emotions, angry at Nezha Automobile CEO Daniel Zhang "don't understand anything, can you learn from Xiaomi's Lei Jun", and bluntly said that "Nezha Auto has a strange name".
Lei Jun is indeed very difficult to learn, the vast majority of people can't learn, every entrepreneur has his own characteristics, to develop his strengths and avoid weaknesses, Zhou Hongyi, who once claimed to be a "supporting role", is obviously a bit noisy.
To be honest, Zhou Hongyi may also have a trace of regret in his heart, the once "unlikely" Leapmotor will be listed on the Hong Kong stock market in 2022, if he had invested in Leapmotor instead of Nezha, at least he could have cashed out in the secondary market, and there would not be a continuous loss. And now, I can only blame Nezha's name for not sounding good.