In-Depth Analysis of Venus Tech's (002439.SZ) Performance Decline After China Mobile's Acquisition

Based on the latest data I have collected, Venus Tech (002439.SZ) has indeed seen a significant performance decline after China Mobile took control in 2024. The following is a systematic analysis from multiple dimensions:

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:

• On January 5, 2024, Venus Tech issued 283 million A-shares (common shares) to China Mobile Capital for listing
• China Mobile Capital spent approximately
  RMB 4.1 billion
  to acquire a
  23.08% equity stake
• The company’s controlling shareholders changed from the couple Wang Jia and Yan Li to China Mobile Capital, and the actual controller changed to China Mobile Group [1][2]

:

Indicator	Before Acquisition (2023)	After Acquisition (2024)	Change Rate
Operating Revenue	RMB 4.507 billion	RMB 3.315 billion	-26.44%
Net Profit Attributable to Shareholders	RMB 706 million	-RMB 226 million	Shift from Profit to Loss
Security Product Revenue	RMB 2.578 billion	RMB 1.905 billion	-26.12%
Security Operation and Service Revenue	RMB 1.900 billion	RMB 1.383 billion	-27.20%

This marks the first annual net loss for Venus Tech since its listing in 2010, breaking its 14-year consecutive profit record [1][2].

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According to the company’s 2024 annual report, changes and uncertainties in the external market environment have brought pressure and challenges to the company’s operations:

• Decline in security budgets
  : Affected by multiple factors, security budgets in some of the company’s advantageous industries have declined, and some projects have been delayed [3]
• Impact of demand transition period
  : The cybersecurity industry is moving from a previous mature and stable phase to a demand transition and transformation phase
• Weak demand for traditional compliance
  : Although traditional compliance demand still dominates, competition is fierce and growth is sluggish [1][4]

This is one of the most critical factors. The cybersecurity industry has unique characteristics, and clients (especially large enterprises and government agencies) tend to choose

security service providers [5].

• After being acquired by China Mobile, Venus Tech became a subsidiary of a large central state-owned enterprise,
  losing its independent third-party status
• Original government and enterprise clients, concerned about data security and vendor lock-in issues,
  switched to other neutral vendors
• The rate of external order loss far outpaces the speed of incremental business supplementation from China Mobile [5]

• Although related transactions between the two parties have increased (China Mobile purchased approximately RMB 1.153 billion in goods and services from Venus Tech in 2024), the volume and quality of synergistic revenue need continuous improvement [6]
• Business integration is gradually deepening, but
  it is difficult to make up for the gap left by lost external orders in the short term
• In the first half of 2025, the purchase amount from Venus Tech was only RMB 322 million (with an annual expected ceiling of RMB 1.9 billion), representing a low completion rate [7]

To respond to industry changes, the company has increased R&D investment:

• R&D expenses in 2024 reached RMB 852 million, a year-on-year increase of 4.60%
• Focused investment in new tracks such as AI security, intelligent computing security, data security, and new industrialization security [3]
• These investments are unlikely to generate direct returns in the short term

In February 2025, the Military Procurement Network disclosed:

• Beijing Venus Tech Information Security Technology Co., Ltd. is suspected of violating regulations and engaging in dishonest conduct
• Starting from February 6, 2025,
  its qualification to participate in military-wide procurement activities for materials, engineering, and services has been suspended
  [2]
• This incident further exacerbated the company’s operational pressure

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:

• January 2, 2024 (first trading day after the acquisition): Intraday high of
  RMB 26.78 per share
• January 16, 2026: Closing price of
  RMB 15.12 per share
• Approximate 44% decline in two years
  , with total market capitalization evaporating by over RMB 6 billion [1][8]

:

• On November 28, 2025, Venus Tech was
  removed from the sample list of the CSI A500 Index
• The change took effect after the market close on December 12, 2025 [1]

:

• In November 2025, Tibet Tianchen (a concerted action party of founder Wang Jia) plans to reduce its holdings by 892,000 shares to repay loans [1]

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:
Since 2024, the cybersecurity industry as a whole has faced challenges, with peer companies DBAPPSecurity and Qi Anxin also recording losses. However, it is worth noting that:

• In the first three quarters of 2025,
  the revenue growth rates of DBAPPSecurity and Qi Anxin have turned positive
• Venus Tech’s operating revenue in the first three quarters of 2025 was RMB 1.548 billion, a year-on-year decline of 33.46%, remaining in a downward trend [2]

:

• Demand for new scenario-based projects such as AI security and data element security is being explored
• China Mobile’s exploration of vertical scenario value in individual and household markets
• The consumer-level security market may establish a new growth pole [3]

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:
The performance decline of Venus Tech after China Mobile’s acquisition is the result of , including systemic pressure from the external market environment and growing pains during the company’s strategic transformation. The core issue is . The realization of synergistic effects takes time, and the company still faces significant challenges in the short term.

:

• Risk of continued loss of external orders
• Uncertainty surrounding the military procurement ban incident
• Intensified industry competition
• Long payback period for R&D investment

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[1] Sina Finance - “Venus Tech Removed from CSI A500 Index: Did China Mobile Spend RMB 4.1 Billion on a ‘Hot Potato’?” (https://finance.sina.com.cn/jjxw/2026-01-19/doc-inhhuziz1359002.shtml)

[2] Sina Finance - “Venus Tech Removed from CSI A500 Index: Did China Mobile Spend RMB 4.1 Billion on a ‘Hot Potato’?” (https://cj.sina.cn/articles/view/6192937794/17120bb4202002n9h8)

[3] East Money - Venus Tech 2024 Annual Report (https://pdf.dfcfw.com/pdf/H2_AN202504141656471723_1.pdf)

[4] Sina Finance - “Breaking! RMB 26 Billion Lithium Battery Concept Stock Accused of Misleading Statements in Major Contract Announcement…” (https://finance.sina.com.cn/jjxw/2026-01-18/doc-inhhttqr8600249.shtml)

[5] East Money Stock Bar - “Venus Tech May Release Annual Report Preview Next Week” (https://caifuhao.eastmoney.com/news/20260117081031263083600)

[6] China Mobile - 2024 Annual Report (https://www.chinamobileltd.com/sc/ir/reports/ar2024_ashare.pdf)

[7] China Mobile - 2025 Interim Report (https://www.chinamobileltd.com/sc/ir/reports/ir2025_ashare.pdf)

[8] Jinling AI - Market Data [0]