1. Analysis of the company's operating performance.
1. 360's main business is the research and development of Internet security technology, and in 2023, the company will achieve operating income of 9.055 billion yuan, a year-on-year decrease of 4.89%, which is not the first time that the company's business has declined, since the backdoor listing in 2018, the annual operating income has shown a downward trend, which indicates that the company is facing greater industry competition pressure and weak market development capabilities. In 2018, the operating income was 13.129 billion yuan, and by the end of 2023, the operating income fell by 31.03%, and the Internet has entered the era of "artificial intelligence +", with frequent business model innovation, and competition in the industry continues to intensify, the company's future operating income is still likely to continue to decline, and the revenue in the first quarter of this year is only 1.719 billion, a year-on-year decrease of 12.53%, which is the embodiment of continued decline.
2. The company's net loss in 2023 will be 492 million yuan, ranking ninth in the net loss of the software development industry, which is in a state of net loss for two consecutive years, and since 2019, with the decline in operating income, the company's net profit has also been in a state of continuous decline, and the decline is very obvious, with a net profit of 5.98 billion yuan in 2019, and a decline of more than 50% every year after that, which indicates that the company is facing great cost pressure. Operating income and net profit are declining, which indicates that the company's market competitive position is weak, and the net loss of 110 million yuan continued in the first quarter of this year, which is a signal to continue to lose, the company is facing greater pressure to turn losses into profits, and the future profit prospects are worrying.
Second, the company's operating performance continues to decline sharply, the market competition position is weak, and the future investment value may face a large downside risk.
As of the close of May 15, the company's closing price was 8.51 yuan, compared with the highest price of 66.5 yuan in 2018, the cumulative decline has reached 87.2%, I analyze and judge that with the continuous decline in business performance and under the pressure of intensified competition in the industry, the company's continued loss of state or difficult to improve, the company's performance decline has become the norm, rather than a temporary occasional state, I believe that the company's future investment value or face a large space for downside risks, continue to fall or inevitable.
