Chinese security firm Qihoo 360, which helped expose US cyberattacks, under review in Shanghai after big third-quarter loss

Chinese cybersecurity company 360 Security Technology (Qihoo 360), which has been working with Beijing to track and expose American hackers attacking mainland targets, reported a wider net loss in the September quarter and the departure of its chief financial officer.

Shanghai-listed Qihoo 360 on Thursday posted a net loss of 1.56 billion yuan (US$216 million) in the third quarter, compared with a 431 million yuan profit in the same period last year, that it attributed to declining sales and a move to divest its stake in Norwegian browser developer Opera. Revenue totalled 2.11 billion yuan, down 27.7 per cent from a year earlier, marking its first sales decrease since going public on the mainland in 2018.

The company’s latest quarterly results come after co-founder Zhou Hongyi, who serves as its chairman and chief executive, hinted at lay-offs and divestments, as part of a consolidation plan, in a letter to employees last month.

The current struggles of the company, which was among 33 Chinese entities added to the US trade blacklist in 2020, reflects how many mainland internet firms continue to be affected by weak consumer spending and slow economic growth on the mainland.