深信服(300454) - 2024 Q2 - 季度财报

Financial Performance - Revenue for the first half of 2024 increased by 15% year-over-year, reaching RMB 5.2 billion[12] - Net profit for the first half of 2024 grew by 20% year-over-year, amounting to RMB 800 million[12] - Revenue for the first half of 2024 was RMB 2,707,338,330.25, a decrease of 7.72% compared to the same period last year[13] - Net profit attributable to shareholders of the listed company was RMB -591,945,292.53, a decrease of 6.94% year-on-year[13] - Net cash flow from operating activities was RMB -976,701,962.95, a significant decrease of 239.94% compared to the previous year[13] - Total assets at the end of the reporting period were RMB 14,672,647,012.50, a decrease of 2.37% compared to the end of the previous year[13] - Revenue for the first half of 2024 was RMB 2,340,165,846.53, a decrease compared to RMB 2,534,730,459.78 in the same period of 2023[188] - Net loss for the first half of 2024 was RMB -592,117,278.04, compared to RMB -553,617,411.62 in the same period of 2023[186] - R&D expenses for the first half of 2024 were RMB 1,077,951,257.98, a slight decrease from RMB 1,138,149,099.33 in the same period of 2023[186] - Sales expenses for the first half of 2024 were RMB 1,263,965,141.65, down from RMB 1,408,466,497.15 in the same period of 2023[186] - Interest income for the first half of 2024 was RMB 146,625,556.02, an increase from RMB 119,337,219.62 in the same period of 2023[186] - Other comprehensive income for the first half of 2024 was RMB 70,490,559.56, compared to RMB 162,423,245.72 in the same period of 2023[186] - Basic and diluted earnings per share for the first half of 2024 were both RMB -1.41, compared to RMB -1.33 in the same period of 2023[187] - Operating loss for the first half of 2024 was RMB -590,718,936.88, compared to RMB -569,769,213.58 in the same period of 2023[186] - Total comprehensive loss for the first half of 2024 was RMB -521,626,718.48, compared to RMB -391,194,165.90 in the same period of 2023[187] - Income tax expense for the first half of 2024 was RMB 2,655,679.82, compared to a tax benefit of RMB -14,657,073.01 in the same period of 2023[186] - Operating cash flow for the first half of 2024 was -976.7 million yuan, a significant decrease compared to -287.3 million yuan in the same period of 2023[190] - Investment cash flow for the first half of 2024 was 721.7 million yuan, a significant improvement from -371.8 million yuan in the same period of 2023[191] - Financing cash flow for the first half of 2024 was 356.5 million yuan, compared to 64.9 million yuan in the same period of 2023[191] - Total cash and cash equivalents at the end of the first half of 2024 were 760.7 million yuan, a decrease from 792.7 million yuan in the same period of 2023[191] - Sales revenue from goods and services for the first half of 2024 was 3.38 billion yuan, a slight decrease from 3.52 billion yuan in the same period of 2023[190] - Cash paid to employees for the first half of 2024 was 2.04 billion yuan, an increase from 1.92 billion yuan in the same period of 2023[190] - Cash received from investments for the first half of 2024 was 4.72 billion yuan, an increase from 3.84 billion yuan in the same period of 2023[190] - Cash paid for investments for the first half of 2024 was 3.87 billion yuan, a decrease from 4.19 billion yuan in the same period of 2023[191] - Cash received from financing activities for the first half of 2024 was 861.0 million yuan, an increase from 804.7 million yuan in the same period of 2023[191] - Cash paid for financing activities for the first half of 2024 was 504.5 million yuan, a decrease from 739.9 million yuan in the same period of 2023[191] Market and Industry Trends - The global cybersecurity market is expected to grow from USD 189.01 billion in 2022 to USD 328.88 billion in 2027, with a CAGR of 11.7%[20] - China's cybersecurity market is projected to grow from USD 12.35 billion in 2022 to USD 23.32 billion in 2027, with a CAGR of 13.5%[20] - In 2023, China's cybersecurity hardware market size was RMB 22.5 billion, a decrease of 0.9% year-on-year[21] - IT security software market in China reached RMB 27.79 billion in 2023, an increase of 4.7% year-on-year[21] - IT security services market in China was RMB 20.68 billion in 2023, a decrease of 0.5% year-on-year[21] - Economic slowdown in China has led to reduced or delayed investments in cybersecurity by downstream customers, impacting market growth[22] - Generative AI technology has made breakthrough progress, with cybersecurity companies increasing AI R&D investment to enhance offensive and defensive capabilities[23] - The global cloud computing market reached $586.4 billion in 2023, a year-on-year increase of 19.4$1 trillion by 2027[27] - China's cloud computing market reached 616.5 billion yuan in 2023, a year-on-year increase of 35.5%, and is expected to exceed 2.1 trillion yuan by 2027[28] - The managed security services (MSS) market is the fastest-growing sub-market, driven by the need for professional security services[25] - China's distributed storage market reached 13.79 billion yuan in 2023, with growth rates higher than the overall market[31] - The integration of advanced AI algorithms in cybersecurity solutions is becoming more common to predict and respond to complex attack patterns[24] - The shift from traditional hardware-based cybersecurity delivery models to cloud-based and SaaS-based services is accelerating[25] - China's IaaS spending has a five-year compound growth rate of 17.4%, significantly higher than other hardware expenditures[29] - The demand for AI computing power and distributed storage systems is increasing due to the rapid development of AI technologies[31] Company Operations and Strategy - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital[2] - The company's subsidiaries include Shenzhen Xinrui Network Technology Co., Ltd. and Shenzhen Pocket Network Technology Co., Ltd.[5] - The company's associated enterprises include Guangzhou Amber Anyun Phase I Venture Capital Partnership and Guangzhou Amber Anyun Phase II Venture Capital Partnership[5] - The company's products include Next-Generation Firewall (AF), Situational Awareness, and Cloud Computing[5] - The company's cloud services include Public Cloud, Private Cloud, Hybrid Cloud, and Hosted Cloud[5] - The company's security concepts include Zero Trust and Internet of Things (IoT)[5] - The company's network management solutions include SMB and AC (All-in-One Behavior Management)[5] - The company's infrastructure solutions include Hyper-Converged Infrastructure (HCI) and Application Delivery (AD)[5] - The company's virtualization technologies include Server Virtualization, Desktop Virtualization, and Storage Virtualization[5] - The company's R&D investment in the first half of 2024 was RMB 1.2 billion, accounting for 23% of total revenue[12] - The number of active users for the company's SaaS products increased by 30% year-over-year, reaching 1.5 million[12] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[12] - New product launches in the first half of 2024 contributed 25% to the total revenue growth[12] - The company completed two strategic acquisitions in the first half of 2024, enhancing its cybersecurity and cloud computing capabilities[12] - The company's SD-WAN solutions saw a 40% increase in adoption, with over 10,000 new deployments in the first half of 2024[12] - The company's AI-driven security solutions, including EDR and XDR, achieved a 50% year-over-year growth in sales[12] - The company's cloud services segment grew by 35% year-over-year, contributing RMB 1.8 billion to the total revenue[12] - The company has established a competitive position in the domestic cybersecurity field and has gradually gained market advantages in cloud computing and IT infrastructure[32] - The company's XDR platform was positioned in the "Leader" category in the "IDC MarketScape: China Extended Detection and Response Platform 2024 Vendor Assessment" report[33] - The company's zero-trust solution ranked first in 11 industries, including government, finance, energy, and internet, and was recognized as the "Most Popular Vendor in the Industry" by the China Academy of Information and Communications Technology[33] - The company became the first cloud computing vendor in China to pass the "Information Technology Application Innovation Infrastructure as a Service Standard Compliance Test" conducted by the China Software Testing Center[33] - The company's next-generation firewall achieved the top domestic market share in Q1 2024 and was awarded the "Recommended" rating by CyberRatings.org in 2024[38] - The company's zero-trust network access solution and software-defined perimeter scenario held the top domestic market share from 2021 to 2023[38] - The company's XDR platform was positioned in the "Leader" category in the "IDC MarketScape: China Extended Detection and Response Platform 2024 Vendor Assessment" report[38] - The company's hyper-converged infrastructure (HCI) software held a 17.5% market share in China in 2023, ranking first in the domestic market[39] - The company's desktop cloud terminal product maintained a top-three market share in China from 2017 to 2023, with the first position in 2021 and 2022[39] - The company's cloud desktop software (VCC category) maintained a top-three market share in China from 2017 to 2023[39] - The company was recognized as a "Leader" in the "2023 China Hybrid Cloud Value Influence Evaluation Report" by the China Academy of Information and Communications Technology and Frost & Sullivan[40] - Sangfor's subsidiary Xinrui Network Technology leads the domestic enterprise-level wireless market in 2023, ranking first in multiple industries including banking, securities, insurance, taxation, and public utilities[42] - The company's core business areas include cybersecurity, cloud computing, IT infrastructure, and basic network and IoT products, with profitability driven by the gap between sales revenue and cost expenses[43] - Sangfor's R&D strategy focuses on customer demand, with innovation in cybersecurity, cloud computing, IT infrastructure, and IoT, supported by R&D centers in Shenzhen, Beijing, Changsha, Nanjing, and Chengdu[44] - The company's hardware products, such as industrial control machines, servers, and switches, are produced through OEM or ODM modes, with software integration completed before delivery to customers[45] - Sangfor's procurement system ensures stable and cost-effective supply of hardware components like industrial control machines, servers, switches, and hard drives, supported by a dedicated supply chain management team[46] - The company employs a channel-based sales model, supplemented by direct sales, to achieve broad market coverage and rapid product adoption across diverse industries and regions[47] - Channel partners are selected based on market reputation, sales capabilities, and regional resources, with ongoing training provided to ensure quality service delivery[48] - Sangfor's cooperation agreements with channel partners specify authorized sales levels, regions, industries, product scope, pricing, and technical support requirements[49] - Payment and settlement with channel partners are managed through product purchase contracts or orders, with prepayment deductions and credit terms offered for larger projects[50] - The company's R&D expenses have consistently exceeded 20% of its revenue, with a significant focus on innovation and technological advancements[56] - The company has established five R&D centers in Shenzhen, Beijing, Changsha, Nanjing, and Chengdu, with nearly 40% of its workforce dedicated to R&D, including over 27% with master's or doctoral degrees[56] - The company has accumulated over 3,120 patent applications, with 210 new patents authorized and 31 new software copyrights registered in the first half of 2024[56] - The company's "Sangfor Electronic Government Cloud Platform" and "Sangfor Security Managed Service Platform" have successfully passed the national cloud service security assessment, with validities until October 2025 and July 2026, respectively[54] - The company's cloud security revenue accounts for more than 10% of its total revenue in the latest audited financial year[53] - The company has been recognized as a "National Enterprise Technology Center" and a "National Technology Innovation Demonstration Enterprise," and is a member of the China Academy of Information and Communications Technology's cybersecurity capability evaluation working group[56] - The company holds multiple high-level industry certifications, including ISO22301, ISO27017, and SA8000, and is a technical support unit for the National Information Security Vulnerability Database (CNNVD)[56] - The company's "Next-Generation Application Firewall System and Defense Method" and other patents have won the "China Patent Excellence Award"[56] - The company's "Sangfor Security Managed Service Platform" was officially approved for cloud service security assessment in July 2023, with a validity period until July 2026[54] - The company's "Sangfor Electronic Government Cloud Platform" successfully passed its triennial reassessment in 2022, with a validity period until October 2025[54] - Company achieved total operating revenue of approximately 2.707 billion yuan in the first half of 2024, a year-on-year decrease of 7.72%[64] - Cybersecurity business revenue was approximately 1.398 billion yuan, accounting for 51.65% of total revenue, a year-on-year decrease of 7.34%[65] - Cloud computing and IT infrastructure business revenue was approximately 1.106 billion yuan, accounting for 40.85% of total revenue, a year-on-year decrease of 4.43%[65] - Over 130 users completed testing and deployment of the company's self-developed security GPT by May 2024[65] - The company's hyper-converged infrastructure (HCI) held a 17.5% market share in China in 2023, ranking first in the market[65] - The company established a global CTI customer remote service call center with approximately 400 seats across multiple countries[60] - The company has participated in the formulation and release of over 120 national and industry standards as of June 30, 2024[62] - The company's security GPT 3.0 upgrade version and AI computing platform were released in the 2024 spring product launch[58] - The company's security GPT-powered XDR platform was positioned in the "Leader" category by IDC[65] - The company's security managed services (MSS) ranked first in the remote managed security services market for three consecutive years[65] - Basic network and IoT business revenue was approximately 203 million yuan, a year-on-year decrease of 24.13%, accounting for 7.50% of the company's total revenue[66] - The company's overall gross profit margin was 61.34%, a decrease of 3.14 percentage points compared to the first half of 2023[66] - Net profit attributable to shareholders of the listed company was approximately -592 million yuan, with a slight increase in losses year-on-year[66] - Operating cash inflow was 3.931 billion yuan, a year-on-year increase of 4.00%[66] - Sales expenses decreased by 10.26% year-on-year to 1.264 billion yuan[68] - R&D investment decreased by 5.29% year-on-year to 1.078 billion yuan[68] - Net cash flow from operating activities was -976.7 million yuan, a year-on-year decrease of 239.94%[68] - Cybersecurity business revenue was 1.398 billion yuan, a year-on-year decrease of 7.34%, with a gross profit margin of 78.18%[69] - Cloud computing and IT infrastructure business revenue was 1.106 billion yuan, a year-on-year decrease of 4.43%, with a gross profit margin of 42.55%[69] - Direct material costs accounted for 69.14% of the total operating costs, a year-on-year decrease of 4.09%[71] - The company's cybersecurity products are primarily sold through channel agents, with direct sales as a supplement, targeting enterprises, government agencies, and public institutions[73] - The company has launched a new version of its next-generation firewall AF, which integrates AI and cloud capabilities, enhancing protection against advanced threats like APT and ransomware, and has been widely adopted by universities, state-owned enterprises, and government agencies[76] - The security GPT 3.0 upgrade, released in January 2024, significantly improves phishing attack detection and reduces security event response time from 3 hours to 30 seconds, with testing and application in over 130 enterprises[77] - The company introduced a lightweight Managed Security Service (MSS-Lite) to address the security needs of small and medium-sized enterprises, offering SaaS-based security monitoring and incident response[77] - The SASE (Secure Access Service Edge) solution was launched, integrating zero-trust network access and data leakage prevention services, allowing seamless upgrades for existing customers[78] - The software-defined data center (SDDC) product line saw updates, including enhanced reliability, performance improvements, and new features like agentless backup and micro-segmentation policy recommendations[79] - The Sangfor AI Computility Platform (AICP) was released in January 2024, offering a one-stop platform for large model development and inference, with significant cost and performance improvements[79] - The company's self-developed