Breaking Down NSFOCUS Technologies Group Co., Ltd. Financial Health: Key Insights for Investors

Founded in April 2000 and listed on ChiNext in January 2014 under ticker 300369, NSFOCUS Technologies Group has evolved into a major Chinese cybersecurity firm, reporting 2.36 billion yuan in revenue for 2024 - a year-over-year rise of 40.29% - while narrowing its net loss to 365 million yuan and achieving a security-products gross margin of 67.87%; as of December 31, 2024 the company employed 3,309 people (down 16.78%), launched the Fengyunwei AI Security Capability Platform and AI-Scan in 2024, maintains subsidiaries in Silicon Valley, Tokyo, London and Singapore, and as of November 26, 2025 carried a market capitalization of 6.87 billion yuan with 810.62 million shares outstanding, a decentralized ownership structure (largest holder Shen Jiya at 9.90% as of October 23, 2025), ambitious revenue targets of 2.536/2.743/2.981 billion yuan for 2025-2027 and a diversified business model spanning anti-DDoS, cloud protection, threat intelligence, managed services and industry-focused security solutions.

NSFOCUS Technologies Group Co., Ltd. (300369.SZ): Intro

• Founded April 2000, focused on network information security solutions for enterprises and government.
• January 2014 - IPO on Shenzhen Stock Exchange ChiNext, ticker 300369.
• 2024 product push: launched the 'Fengyunwei AI Security Capability Platform' and 'AI‑Scan' risk assessment product to expand AI-driven cybersecurity offerings.

• Revenue 2024: ¥2.36 billion - a 40.29% increase vs. 2023 (implied 2023 revenue ≈ ¥1.683 billion).
• Employees as of Dec 31, 2024: 3,309 (down 16.78% vs. prior year; implied 2023 headcount ≈ 3,976) reflecting strategic restructuring.
• First nine months 2025: revenue ¥1.28 billion; net loss ¥196 million, a 39.85% reduction in losses vs. the same period in 2024 (implied 2024 nine‑month loss ≈ ¥326 million).

• Publicly listed company (ChiNext: 300369), with ownership split between institutional investors, strategic shareholders and public float per regulatory disclosures.
• Corporate governance follows PRC listed-company rules with a board of directors, supervisory board and executive management responsible for R&D and commercialization strategy.

• Mission: provide comprehensive network and AI‑enabled security solutions to protect enterprise and public sector digital assets and maintain network resilience.
• Strategy: combine core network security appliances, cloud and AI capabilities, risk assessment tools, and managed/security services to capture higher-value, recurring revenue streams.

• Product suites: network intrusion prevention/detection, DDoS mitigation, web application firewalls, threat intelligence feeds.
• AI & platform: Fengyunwei AI Security Capability Platform for threat detection/automation; AI‑Scan for automated risk assessment and vulnerability discovery.
• Service offerings: managed security services, incident response, security consulting, and customer‑specific integration/support.
• Sales channels: direct enterprise/government sales, channel partners, cloud marketplaces, and subscription-based service contracts.

• Hardware and software product sales - one‑time and license-based revenues for security appliances and software.
• Recurring revenues - subscriptions, SaaS, threat‑intelligence feeds, and maintenance contracts.
• Professional & managed services - integration, consulting, incident response and ongoing managed security services.
• R&D commercialization - monetization of AI/security platforms (Fengyunwei) and tools like AI‑Scan via licensing and service tiers.

• Exploring NSFOCUS Technologies Group Co., Ltd. Investor Profile: Who's Buying and Why?

NSFOCUS Technologies Group Co., Ltd. (300369.SZ): History

• 2000: Company origins as a network security R&D team.
• 2008-2015: Productization of DDoS mitigation and enterprise SOC solutions.
• 2016-2022: Expansion into cloud and hybrid security, international customers.
• 2023-2025: Continued product diversification and capital market presence.

• Shen Jiya - 9.90% (holding as of 2025-10-23; reduced passively due to increased share capital)
• China Electronics Technology Network Security Equity Investment Fund Partnership - 7.00% (holding as of 2025-09-10; unchanged after planned reduction)
• Lei Yan Investment Co., Ltd. - planned to reduce up to 1.63% between 2025-09-11 and 2025-12-10
• No single controlling shareholder; ownership is dispersed among institutional and individual investors

• Core activities: development and sale of network security hardware/software, cloud security platforms, threat intelligence, and managed security services (MSS/SOC).
• Revenue streams: product sales (hardware appliances, software licenses), subscription & recurring cloud services, professional services (deployment, consulting), and managed security operations.
• Business model emphasis: recurring revenue growth via subscriptions and managed services to improve revenue visibility and customer lifetime value.
• Operational model: R&D-driven product roadmap, channel & direct sales, strategic partnerships for cloud and telecom service integration.

NSFOCUS Technologies Group Co., Ltd. (300369.SZ): Ownership Structure

• Mission and values: committed to comprehensive cybersecurity-DDoS mitigation, web security, enterprise network security-and to innovation, reliability, and customer-centric solutions.
• Innovation highlights: launched the Fengyunwei AI Security Capability Platform and the AI-Scan risk assessment product in 2024 to enhance AI-driven threat detection and automated risk scoring.
• Customer and market focus: prioritizes core customers and high-value market segments to optimize resource allocation and improve operational efficiency.
• Global footprint: subsidiaries and offices established in Silicon Valley, Tokyo, London, and Singapore to support international sales, R&D collaboration, and channel partnerships.

• How it makes money: revenue mix derives from product sales (appliances and software), recurring subscription and cloud-based security services, professional services (integration, consulting), and channel/reseller agreements targeting telco, finance, government and large enterprises.
• Strategic priorities: consolidate domestic leadership in digital cybersecurity while accelerating overseas market penetration via localized subsidiaries and partner ecosystems.

NSFOCUS Technologies Group Co., Ltd. (300369.SZ): Mission and Values

• Founded as a security-focused technology provider, NSFOCUS operates more than 40 branches across China and has established overseas subsidiaries to expand global reach and provide localized support.
• Serves multiple verticals including telecommunications, finance, energy, transportation, education, healthcare and enterprise IT organizations.

• Anti-DDoS and Cloud DDoS Protection: Appliance-based scrubbing systems for on-premises deployment and cloud-based scrubbing/absorption services for volumetric attacks.
• Threat Intelligence & Monitoring: Subscription-based threat feeds, attack monitoring platforms and SOC enablement data that feed real-time protections and forensic analysis.
• Security Operation Services: Managed detection and response (MDR), 24/7 SOC operations, incident response retainer services, and remote security assessment systems.
• Web Application & API Protection (WAAP): WAF, API security, bot management and anomaly detection for web services and microservice architectures.
• Network Security Appliances: Next-generation firewalls, intrusion prevention systems (IPS), and integrated gateway solutions for perimeter and data center protection.
• Industry & Service Provider Solutions: Value-added services for ISPs/MSPs, 5G network security toolkits, "cloud-in-a-box" bundled solutions for rapid deployment, and tailored vertical use-cases.
• Professional & Support Services: Product support contracts, professional security assessments, managed security services, and training/certification offerings.

• Licensing & Hardware Sales - revenue from on-premises appliances, perpetual licenses and hardware maintenance contracts.
• Subscription & Cloud Services - recurring revenue from cloud DDoS protection, threat intelligence feeds, managed detection, and SaaS-based security modules.
• Professional Services - implementation, customization, penetration testing, and paid incident response engagements.
• Managed Services & Support - multi-year managed security contracts, support renewals, and training.

• Channel & Service Provider Partnerships - NSFOCUS sells through telecom carriers, cloud providers, MSPs and value-added resellers to reach large-scale ISP/campus/enterprise deployments.
• Regional Coverage - more than 40 domestic branches ensure local sales, engineering and after-sales support; overseas subsidiaries handle international customers and product localization.
• R&D & Productization - investment in signature-based and behavioral detection, big-data analytics for traffic baselining, and threat-hunting capabilities to keep product differentiation.

• Telecommunications: DDoS mitigation for operators, upstream scrubbing services and 5G security modules.
• Financial services: Low-latency protection, compliance-oriented security assessments and continuous monitoring.
• Critical infrastructure & energy: Hardened appliances, redundancy designs and incident response plans.
• Transportation, education, healthcare and enterprise IT: Integrated WAAP, managed SOC and on-prem/cloud hybrid deployments.

• Branch network: >40 domestic branches enabling rapid field response and deployments.
• Product mix: Hardware + software + cloud + services delivering a blend of one‑time and recurring revenue; trend toward increasing subscriptions and managed services improves ARR visibility.
• Customer concentration: Large service-provider and telco accounts often represent substantial contract value and multi-year relationships.

NSFOCUS Technologies Group Co., Ltd. (300369.SZ): How It Works

• Founded in 2000, NSFOCUS Technologies Group Co., Ltd. (300369.SZ) developed from a Chinese network security R&D team into a publicly listed cybersecurity vendor on the Shenzhen Stock Exchange.
• Major shareholders include institutional investors, corporate founders and employee shareholding plans; the company maintains strategic partnerships with telecoms, cloud providers and systems integrators across China and internationally.

• Mission: protect critical internet infrastructure and enterprise assets through integrated network security, cloud-native protection and managed detection/response services.
• Positioning: end-to-end security stack provider focused on application, network and cloud security for carriers, government, finance, and large enterprise customers.

• Product sales - hardware appliances and software licenses for DDoS protection, web application firewalls, intrusion prevention systems and threat intelligence platforms.
• Subscription and SaaS - recurring revenue from cloud-based security services, threat feeds, updates and platform access.
• Professional services - deployment, customization, security assessments and managed security services (MSS/MDR).
• Maintenance and support - multi-year support contracts tied to enterprise and carrier deployments.

• Cost reduction initiatives and operational efficiency improvements contributed to a narrower net loss in 2024.
• High gross margins on security products (67.87%) indicate strong pricing power and scalable product economics.
• Recurring revenue (subscriptions, support and managed services) stabilizes cash flows and enhances LTV/CAC dynamics.

• Carrier & ISP solutions - large-scale DDoS mitigation and detection services for backbone networks.
• Enterprise security - WAF, NGFW, cloud workload protection for finance, government and large corporates.
• Cloud & SaaS - cloud-native security offerings and threat intelligence subscriptions.
• Managed services - MSS/MDR contracts that convert one-off sales into recurring revenue streams.

• Gross margin concentration in security product line supports reinvestment into R&D and platform expansion.
• Revenue per employee (714,426 yuan) suggests relatively high labor productivity compared with peers in hardware-heavy security vendors.
• Net loss reduction to 365 million yuan reflects improved operating leverage as revenue scales and cost controls take effect.

• NSFOCUS's diversified product and service offerings allow it to address multiple verticals and stabilize revenue across economic cycles.
• Growth targets for 2025-2027 signal management's expectation of continued traction in cloud security, managed services and carrier contracts.
• Further details on investor composition and buyer interest can be explored here: Exploring NSFOCUS Technologies Group Co., Ltd. Investor Profile: Who's Buying and Why?

NSFOCUS Technologies Group Co., Ltd. (300369.SZ): How It Makes Money

• Product sales: NGFWs, DDoS mitigation appliances, threat intelligence feeds and on‑prem security platforms.
• Subscription & SaaS: cloud DDoS protection, managed detection & response (MDR), threat intel subscriptions and security updates.
• Professional services: deployment, customization, security assessments, and emergency response retainers.
• Channel & OEM: sales via partners, system integrators and OEM agreements for bundled solutions.

• Domestic leadership: Leading provider in China's network security and DDoS mitigation markets with strong incumbent relationships across telecoms, finance and government sectors.
• International expansion: Growing footprint via subsidiaries in Silicon Valley, Tokyo, London and Singapore to capture APAC, EMEA and North American demand.
• Strategic focus: Prioritizes core customers and high‑value verticals to lift average contract value and retention.
• Innovation edge: Heavy investment in AI-driven detection, threat intelligence and automated response to address evolving attack surfaces (cloud, OT, IoT).
• Operational priorities: Cost reduction and efficiency programs designed to drive margin recovery and path to profitability.

• Upselling subscriptions to existing hardware customers increases recurring revenue and gross margins.
• Cloud/SaaS offerings reduce reliance on one‑time hardware sales and improve lifetime customer value.
• International expansion increases addressable market but requires localized go‑to‑market investment; breakeven expected as scale builds.
• AI and automation lower support costs and enable higher throughput for managed services-improving unit economics.