Caixin Media reported on October 29th (Reporter: Fu Jing) that the performance of listed cybersecurity companies for the third quarter has been successively released recently. According to the third quarter report released by nsfocus technologies group (300369.SZ) this evening, its loss situation in Q3 this year continues.

Financial data shows that the company achieved revenue of 1.274 billion yuan in the first three quarters, a slight increase of 5.57% year-on-year; net income attributable to the parent company was -0.326 billion yuan; in Q3 alone, revenue reached 0.474 billion yuan, a decrease of 4.24% year-on-year; net income attributable to the parent company was -71.3763 million yuan.

Previously, according to disclosures from nsfocus technologies group, its revenue in the first half of this year was 0.8 billion yuan, an increase of 12.39% year-on-year; net income attributable to the parent company was -0.255 billion yuan.

Caixin Media journalists noticed that in this third quarter report, nsfocus technologies group did not clearly disclose the specific factors affecting its performance change.

It is understood that nsfocus technologies group mainly provides enterprise-level cybersecurity products, security solutions, and security operation services to industries such as government, finance, telecommunications, energy, transportation, science and education, and healthcare. According to previous public disclosures, this year, nsfocus technologies group will continue to focus on the key industry demands. In the first half of the year, it saw growth in the telecommunications and financial industries; increased activity in transportation and emergency industries; however, a decrease in revenue in the energy and corporate industries. Data shows a 15.72% year-on-year decline in revenue from the energy and corporate sectors in the first half of the year.

In its semi-annual report earlier this year, nsfocus technologies group analyzed that the external environment is becoming more complex, severe uncertainties are rising, domestic structural adjustments are deepening, the national economy continues to recover positively, operations are overall stable, but domestic effective demand is insufficient. Downstream customers in the cybersecurity industry where the company operates generally have tight budgets, project implementation cycles are prolonged, and market competition is intense.

In terms of industry performance, according to statistics from Caixin Media journalists, among the top 20 cybersecurity companies with the highest revenue in the first half of this year, 3 companies were profitable, while the top 10 companies all experienced losses.

In fact, the cybersecurity industry has obvious seasonal characteristics, with equipment delivery, installation, debugging and acceptance mostly concentrated in the second half of the year, so the market pays close attention to the companies' 'peak season harvest'.

According to the financial data of cybersecurity companies whose financial reports have been disclosed, the performance of enterprises in the third quarter has been polarized, with a continued phenomenon of widespread losses and even some enterprises still expanding losses. Some companies have been operating fairly steadily, such as topsec technologies group inc. (002212.SZ), which achieved profit turning in Q3 with a year-on-year increase in net income attributable to the parent company by 200.73%.

Nsfocus technologies group incurred a net loss of 0.977 billion yuan last year, breaking the years-long situation of sustained profitability. Its business performance in the fourth quarter of this year will be particularly important.