360 released 2022 semi-annual performance forecast, will lose 500 million

IT House July 15 news, yesterday, 360 released the “2022 Semi-annual Performance Pre-Loss Announcement”, the announcement stated that 360 expects to have a negative semi-annual net profit in 2022.

According to the announcement, after preliminary calculation by the company’s financial department,Net profit attributable to owners of the parent company is expected to be approximately -518 million to -348 million in the first half of 2022, will show a loss compared to the same period of the previous year (statutory disclosure data). After deducting non-recurring gains and losses, the estimated net profit is about -629 million to -454 million.

For comparison, 360’s operating performance and financial status in the same period last year were: net profit attributable to owners of the parent company of 572 million yuan. Net profit attributable to owners of the parent company after deducting non-recurring gains and losses was RMB 497 million. Earnings per share were 0.08 yuan.

As for the reasons for the loss, 360 said it was mainly due to the decline in advertising revenue and investment losses.. Since 2022, the production and operation of Internet advertising entities in many regions in China have been affected by the new crown epidemic, and their advertising budgets have fallen short of expectations. As a result, 360 Internet commercialization and value-added service business achieved operating income of only about 2.740 billion yuan to 2.940 billion yuan, a year-on-year decrease of about 711 million yuan to 911 million yuan.

In terms of investment benefits, 360 confirmed that the investment income in the first half of 2022 will be about -450 million yuan to -350 million yuan, a year-on-year decrease of about 485 million yuan to -585 million yuan. 360 said the main reason was the decline in investment income from associates and joint ventures, resulting in a significant year-on-year drop in net profit attributable to shareholders of listed companies in the first half of 2022.

In addition, the operating income of 360’s intelligent hardware business decreased slightly compared with the same period of the previous year. The operating income of security and other businesses increased slightly compared with the same period of the previous year.

IT House learned that 360 had previously sold Nezha Auto’s 1 billion yuan capital increase right. Zhou Hongyi, founder, chairman and CEO of 360, said that 360 had nearly 20 billion yuan in cash on its account. If Nezha Auto ran out of money, 360 would Do not hesitate to make additional investments.