Qi An Xin Technology Group Inc

Qi An Xin released its 2026 interim report on August 27. Through its AI plus security strategic transformation and cost controls, the company achieved a significant narrowing of losses and a marked improvement in operating cash flow. During the reporting period, the company recorded operating revenue of 1.497 billion yuan, down 14.09 percent year-on-year. Net profit attributable to the parent company was negative 411 million yuan, a 46.58 percent narrower loss compared with the same period last year. Net profit after deducting non-recurring items was negative 755 million yuan, a 1.94 percent year-on-year reduction in losses. Net cash flow from operating activities was negative 722 million yuan, an improvement of 36.79 percent year-on-year. The overall gross margin was 51.00 percent, down 1.68 percentage points year-on-year. The revenue decline was mainly affected by the macro environment and customer budget cuts, but the company proactively gave up some low-margin, long-payment-cycle integration business and advanced marketing system reforms, improving the certainty of payment collection. Core products maintained market leadership in endpoint security, data security, and security analytics and operations. IDC data shows the company's market share ranked first for another consecutive period. Overseas revenue grew more than 275 percent year-on-year. The improvement in performance was helped by a 6.99 percent year-on-year decline in total expenses across three categories, as well as gains from changes in the fair value of financial assets of about 370 million yuan. Looking ahead, with the revision of the Cybersecurity Law and the incorporation of AI security governance into the legal framework, cybersecurity investment in the financial industry is expected to increase, but the company still faces risks including not yet being profitable, declining gross margins, and tight cash flow.

Analysis indicates that two Chinese cybersecurity firms are drawing attention from institutional investors amid cyber warfare risks and Beijing's technology self-reliance policy. QiAnXin Technology, which safeguarded the Beijing Winter Olympics and Chinese government infrastructure, benefits from the Xinchuang policy mandating government agencies to switch entirely to domestic software and hardware. It has also shifted its business model toward subscription-based cloud security services, generating recurring revenue resilient to economic cycles. Meanwhile, QuantumCTek is the first Chinese company to go public with quantum communication technology and quantum key distribution. It has built the world's longest ground-based quantum communication trunk line between Beijing and Shanghai and holds a technological monopoly that the government deems too critical to fail. The more the West pressures China on technology, the more subsidies and domestic orders will flow into this company.

Qi-AnXin and Hygon Information have officially signed a strategic cooperation agreement, embarking on deep business collaboration across three major areas: computing resources, AI security cloud applications, and AI security integrated appliances. The two companies will leverage Hygon's DCU Deep Computing series of domestic computing power to fully empower the training and inference of Qi-AnXin's QAX-GPT security large model, and introduce a Security Token delivery paradigm to achieve high-level security protection and on-demand delivery of computing resources. In addition, the two sides will jointly develop multiple versions of AI security integrated appliances, using an integrated software-hardware and computing-network convergence model to build a self-controllable dual digital foundation of computing power and security for government, enterprise, Xinchuang, and critical information infrastructure clients.

On July 8, the A-share cybersecurity sector rallied across the board, with sector leader Qi-AnXin surging 11.8%. Market analysts noted that the collective strength was driven by a confluence of factors including stricter policy compliance requirements, an explosion in AI security demand, technological breakthroughs by leading companies, and valuation benchmarking against overseas leaders. On the same day, relevant authorities issued a risk alert regarding high-risk security backdoor vulnerabilities in the AI programming tool Claude Code, signaling that AI security is shifting from optional to mandatory. Previously, the draft Administrative Measures for Cybersecurity in the Financial Industry specified that financial institutions must establish a cybersecurity management organizational structure, ensure funding and personnel investment, and strengthen classified and graded management of network data. Institutions expect sectors such as telecommunications, energy, transportation, and government services to follow suit, potentially leading to a systemic surge in cybersecurity demand. Qi-AnXin's artificial intelligence company has built a comprehensive AI security product matrix, leveraging its self-developed QAX-GPT security-focused large model, with a product line covering the full chain including AI invocation governance, agent runtime security, and code security. On the same day, the 2025 National Science and Technology Progress Awards were announced, and the project 'Key Technologies and Applications of Data Security in Complex Environments,' submitted with the participation of Qi-AnXin Group and its Chairman Qi Xiangdong, won second prize. This marks the second consecutive time Qi-AnXin has received this honor. Overseas, US cybersecurity leader Palo Alto Networks saw its stock price surge and market value double following the exposure of related security incidents. Institutions estimate that the current scale of the US cybersecurity industry is expanding, leaving huge incremental space for China's same-track sector. Domestic cybersecurity leaders are expected to see a resonance of valuation recovery and performance growth.