Xiangdong: Cit-ron's short report is riddled with errors.

Absrtact: November 24, Thanksgiving Day. Qihoo 360 (Nyse:qihu) Chairman Zhou in his microblog, in addition to thanking users, but also to those who attack our opponents, like Grindstone let us full of morale and more sharpness to express our thanks. Before, when he took out a

November 24, Thanksgiving Day.

The chairman of Qihoo 360 (Nyse:qihu), Zhou, in addition to thanking users in his microblog, also thanked "those who attacked us maliciously, like Grindstone, which made us more motivated and more sharp". Before, when he came up with a fortune that he thought was "pretty", the US shorting agency, Citron, questioned that his business model was not.

It is famous for shorting "southeast fusion" and leading to its retreat. Qihoo 360 's share price has fallen from about 18 dollars before the report to the current 16 dollars.

Xiangdong, president of Qihoo 360, said Cit-ron's short report was riddled with errors and "a lack of awareness of the Chinese Internet". But anyway, on the morning of the earnings release, Zhou the Qihoo 360 model again. Of course, he thinks, there is no problem with this business model.

Real Customers

Zhou like to take Qihoo 360 and Tencent QQ comparison, he believes that Tencent is relying on free QQ plus a variety of fee services to grow into the Chinese internet giant, and he is the same road.

At present, Qihoo 360 's income is mainly from two parts: from the part that charges to the enterprise, the company known as "online advertising revenue", three quarter revenue of 35.05 million U.S. dollars, an increase of 227%, mainly from browsers and Web site navigation, and the other part of the income from the individual users The main thing is the web game operation, three quarter revenue of about 12.12 million U.S. dollars, an increase of 198%.

Qihoo 360 through free security software to seize users, on the basis of the continuous introduction of other services--360 browser, browser-driven users to use the default home page, the home page setting is the Address bar navigation-the Internet entrance.

URL navigation is the place where Qihoo 360 is questioned. Qihoo's "hao.360.cn" offers many popular web site's chain access ports, but Yahoo, NBA, Hotmail, Amazon and other companies are considered impossible to pay a penny to Qihoo advertising fees, and Ctrip, Baidu and other companies and Qihoo competition relationship, whether it will pay advertising fees are equally questionable.

Some big-name international manufacturers do not necessarily give Qihoo 360 the first page of the link to pay, but these local internet companies are Qihoo 360 customers, such as a large number of group buying companies are in the odd Tiger 360 contribution income. Zhou said that other than Taobao and Google, other customer advertising contributions are less than 3%.

The challenges of the app

Of course, the question is not unfounded, some partners to see Qihoo 360 browser's entry status gradually rise, gradually began to stop with Qihoo 360 cooperation. For example, Baidu, Qihoo 360 through the prosecution of Baidu company to obtain 2.7 million U.S. dollars in arrears compensation, but the cooperation between the two sides has been terminated.

Qihoo 360 is constantly launching a new "portal" to bolster its position: including 360 mobile browsers, pad browsers and other products, for smartphones and tablets respectively.

The real threat to Qihoo 360 is the changing habits of people surfing the Internet: Apple products have changed the way people use browsers to surf the web, using all the icons to bypass the browser's direct target.

This behavioral change is also being challenged by the HTML5 of this new network standard--and now browser vendors are trying to use this standard to develop a next-generation browser, and then incorporate icons into the browser.

Whether Qihoo can maintain its entrance status depends on whether it can cope with the challenges of a good app.

Qihoo 360 has launched a "360 desktop", the Web site icon, this is the odd tiger constantly prevent their "entrance" is replaced. Xiangdong said the open platform of Qihoo 360 has also made fruitful progress.