File photo/Liu Guomei (NBD)

Renowned entrepreneur Zhou Hongyi's listed company, Qihoo 360, has announced the sale of its property for 133 million yuan.

The subsidiary, Tianjin Qihan Technology Co., Ltd., has transferred its holdings in a R&D building located in the Huayuan Industrial Park of Binhai High-tech Zone, Tianjin, along with 90 underground parking spaces, to Tianjin Binhai High-tech Zone Enterprise Innovation Service Co., Ltd. The transaction price is a premium of approximately 55.44 million yuan over the book value, with the company estimating a net profit impact of about 43.5 million yuan from the deal.

The buyer, Tianjin Binhai High-tech Zone Enterprise Innovation Service Co., Ltd., was established in 2013 and is wholly owned by Tianjin Binhai High-tech Zone Asset Management Co., Ltd.

The property was acquired by Tianjin Qihan on December 21, 2015, with a land use right termination date of December 20, 2065. The building has been in use as the company's Tianjin headquarters since May 2021, with 3.5 years of accumulated depreciation. Currently, floors 16~21 of the A building are leased, while the other floors are used for regular office purposes.

Qihoo 360 stated that the sale would enhance asset utilization, increase liquidity, and improve operational quality.

The preliminary estimation suggests the transaction will positively impact the net profit attributable to shareholders of the listed company by approximately 43.5 million yuan for the year 2024 (unaudited). The final financial figures will be based on the company's audited financial report.

Investors are advised to be mindful of investment risks.

Despite a noticeable increase in Qihoo 360's stock price since September, the company's performance for the first three quarters of this year has been less than stellar, with a decline in revenue and a net loss.

The revenue for the first three quarters was 5.609 billion yuan, a decrease of 16.76% year-on-year; the net loss was 579 million yuan.