Qihoo says 2019 profit will double as its China listing qualifies it for state cybersecurity contracts

Anti-virus software maker Qihoo 360 Technology issued an optimistic profit forecast for fiscal 2019, noting that its renewed status as a mainland-listed entity will help it to qualify for state and military projects.

“We want to become not only the largest Chinese company dealing with internet security, but also the largest domestic company in the security field,” Qihoo founder and chief executive Zhou Hongyi told reporters in Shanghai on Monday, adding that Qihoo was approached by a group of potential mainland clients in the internet and smart car businesses.

Zhou said business growth in China will boost profit to 3.8 billion yuan (US$573 million) in fiscal 2019, more than double its net earnings of 1.87 billion yuan last year.

Qihoo completed a US$9.3 billion privatisation in New York last year and has proposed a back-door listing in Shanghai by taking over lift maker SJEC Corp. The company listed in New York in 2011.

Qihoo announced its back-door listing plan last week, a fresh sign that Beijing will ease rules on overseas-listed Chinese technology companies returning to Shanghai.

Amid the reverse merger, Qihoo also plans to inject 50.4 billion yuan of assets into the mainland-listed unit.