360 Security Technology (601360) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 1,917 million, down 16.76% year-over-year; net loss attributable to shareholders was RMB 237.7 million for the quarter and RMB 578.9 million for the first nine months.

• Decline in net profit mainly due to lower revenue and corresponding decrease in gross profit.

Financial highlights

• Q3 2024 revenue: RMB 1,917 million; first nine months: RMB 5,609 million, down from RMB 6,738 million year-over-year.

• Net loss attributable to shareholders: RMB 237.7 million in Q3; RMB 578.9 million for the first nine months.

• Basic and diluted EPS: -0.03 RMB for Q3; -0.08 RMB for the first nine months.

• Operating cash flow for the first nine months: -RMB 235.5 million, a significant decrease from the prior year.

Key financial ratios and metrics

• Gross margin declined as gross profit fell in line with revenue.

• Weighted average ROE: -0.77% for Q3, -1.86% for the first nine months, both down year-over-year.

• Total assets at Q3-end: RMB 38,723 million, down 3.6% from year-end 2023.

• Shareholders’ equity: RMB 30,554 million, down 4.24% from year-end 2023.