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MarketScreener Homepage  >  Equities  >  SHENZHEN STOCK EXCHANGE  >  Hangzhou Hikvision Digital Technology Co., Ltd.    002415   CNE100000PM8

HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.

(002415)
  Report
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Hangzhou Hikvision Digital Technology : 2020 Q3 Report

10/28/2020 | 04:20am EST

HANGZHOU HIKVISION DIGITAL

TECHNOLOGY CO., LTD.

2020 Quarter 3 Report July to September 2020

October 24th 2020

Hikvision 2020 Q3 Report

Section I Important Notes, Contents and Definitions

The Board of Directors, Board of Supervisors, directors, supervisors and senior management of Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as the "Company") hereby guarantee that the information presented in this report shall be together be wholly liable for the truthfulness, accuracy and completeness of its contents and free of any false records, misleading statements or material omissions, and will undertake individual and joint legal liabilities.

All directors of the Company have attended the board meeting to review this quarterly report.

Chen Zongnian, the Company's legal representative, Jin Yan, the person in charge of the accounting work, and Zhan Junhua, the person in charge of accounting institution (accounting supervisor) hereby declare and warrant that the financial statements in this report are authentic, accurate and complete.

Note:

This document is a translated version of the Chinese version 2020 Q3 Financial Report ("2020 年第 三季度报告全文"), and the published 2020 Q3 report in the Chinese version shall prevail. The complete published Chinese 2020 Q3 Financial Report may be obtained at http://www.cninfo.com.cn.

2

Hikvision 2020 Q3 Report

Section II Corporate Profile

  1. Key Accounting Data and Financial Indicators

Whether the Company performed a retroactive adjustment or restatement of the previous accounting data □Yes√ No

Change(%) between

At September 30th 2020

At December 31st 2019

December 31st 2019 and

September 30th 2020

Total assets (RMB)

79,216,734,278.27

75,358,000,240.29

5.12%

Net assets attributable to shareholders of the Company

47,800,785,407.20

44,904,033,876.83

6.45%

(RMB)

2020 Q3

YoY Change(%) between

2020 Q1~Q3

YoY Change(%) between

2019 Q1~Q3 and 2020

2020 Q3 and 2019 Q3

Q1~Q3

Operating income (RMB)

17,750,035,645.86

11.53%

42,021,194,889.62

5.48%

Net profits attributable to shareholders of the Company

3,814,978,645.77

0.12%

8,438,951,476.64

5.13%

(RMB)

Net profits attributable to shareholders of the Company

3,576,189,605.69

-2.48%

8,039,687,983.37

3.21%

excluding non-recurring gains and losses (RMB)

Net cash flows from operating activities (RMB)

5,464,651,652.26

883.95%

5,534,617,992.83

4352.08%

Basic earnings per share (RMB/share)

0.405

1.25%

0.909

5.70%

Diluted earnings per share (RMB/share)

0.405

1.25%

0.909

5.70%

Weighted average Return on Equity (ROE)

8.34%

-1.30%

18.12%

-2.32%

3

Hikvision 2020 Q3 Report

The total share capital of the Company as of the previous trading day of the financial report disclosure:

The total share capital of the Company as of the previous trading day of the financial report disclosure (share)

9,345,010,696

Fully diluted earnings per share calculated using the latest share capital:

Fully diluted earnings per share (RMB/share) calculated with the latest share capital

0.903

Items and Amounts of Non-recurring Gains and Losses

√ Applicable □ Inapplicable

UnitRMB

Item

January 1st 2020-September 30th 2020

Profit or loss from disposal of non-current assets (including the write-off for the

304,642.17

impairment provision of assets)

The government subsidies included in the current profits and losses (excluding the

government subsidy closely related to regular course of business of the Company and

483,576,325.24

government subsidy based on standard quota or quantitative continuous application

according to the state industrial policy.)

Profits and losses attributed to change in fair value for held-for-trading financial assets,

derivative financial assets, held-for-trading financial liabilities, and derivative financial

liabilities; and investment income from disposal of held-for-trading financial assets,

37,532,757.35

derivative financial assets, held-for-trading financial liabilities, derivative financial

liabilities and other debt investments, excluding the effective hedging business related to

the regular business operation of the Company.

Other non-operating income and expenditures except the items mentioned above

30,885,184.58

Less: Impact of income tax

123,079,331.88

Impact of the minority interests (after tax)

29,956,084.19

Total

399,263,493.27

Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in the Public-Non-recurring Gains and Losses>, or classifies any non-recurring gain/loss item mentioned in the aforementioned note as a recurrent gain/loss item

□ Applicable √ Inapplicable

4

Hikvision 2020 Q3 Report

  1. Total Number of Shareholders at the end of the reporting period and Information for Top 10 Shareholders

1. Number of common shareholders and preferred shareholders with resumed voting rights and information about top 10 shareholders

Unit: Share

Total number of common shareholders at the end of

242,350

Total number of preferred shareholders (if any) whose voting rights have been

0

the reporting period

recovered at the end of the reporting period

Particulars about top 10 shareholders

Share-

The number of

Pledged or frozen

Total shares held at the

common shares held

Name of shareholder

Nature of shareholder

holding percentage

period-end

with trading

Status

Amount

(%)

restrictions

China Electronics Technology HIK Group Co., Ltd.

Domestic State-owned corporation

38.88%

3,632,897,256

0

Pledged

50,000,000

Gong Hongjia

Overseas individual

12.43%

1,161,608,214

941,292,525

Pledged

444,540,000

Hong Kong Securities Clearing Company

Overseas corporation

5.97%

558,304,047

0

-

Ltd.(HKSCC)

Xinjiang Weixun Investment Management Limited

Domestic non-state-owned

4.82%

450,795,176

0

Pledged

93,148,998

Partnership

corporation

Perseverance Asset Management L.L.P.

Funds, financial products, etc.

2.47%

231,000,026

0

Perseverance LinShan No.1 YuanWang Fund

Xinjiang Pukang Investment Limited Partnership

Domestic non-state-owned

1.95%

182,510,174

0

Pledged

127,700,000

corporation

Hu Yangzhong

Domestic Individual

1.95%

182,186,477

136,639,858

Pledged

8,150,000

The 52nd Research Institute at China Electronics

Domestic State-owned corporation

1.93%

180,775,044

0

-

Technology Group Corporation

CITIC Securities Company Limited

Domestic State-owned corporation

1.21%

113,094,618

0

-

Central Huijin Investment Ltd.

Domestic State-owned corporation

0.70%

65,818,800

0

-

5

Hikvision 2020 Q3 Report

Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)

Name of shareholder

Number of common shares without trading restrictions held at the period-end

Type of shares

Type

Number

China Electronics Technology HIK Group Co., Ltd.

3,632,897,256

RMB ordinary shares

3,632,897,256

Hong Kong Securities Clearing Company

558,304,047

RMB ordinary shares

558,304,047

Ltd.(HKSCC)

Xinjiang Weixun Investment Management Limited

450,795,176

RMB ordinary shares

450,795,176

Partnership

Perseverance Asset Management L.L.P.

231,000,026

RMB ordinary shares

231,000,026

Perseverance LinShan No.1 YuanWang Fund

Gong Hongjia

220,315,689

RMB ordinary shares

220,315,689

Xinjiang Pukang Investment Limited Partnership

182,510,174

RMB ordinary shares

182,510,174

The 52nd Research Institute at China Electronics

180,775,044

RMB ordinary shares

180,775,044

Technology Group Co. Ltd.

CITIC Securities Company Limited

113,094,618

RMB ordinary shares

113,094,618

Central Huijin Investment Ltd.

65,818,800

RMB ordinary shares

65,818,800

Hu Yangzhong

45,546,619

RMB ordinary shares

45,546,619

China Electronics Technology HIK Group Co., Ltd. and The 52nd Research Institute at China Electronics Technology Group are all subject

to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei, limited partner of Xinjiang Pukang Investment

Limited Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder of the Company. Hu Yangzhong, domestic

Explanation on associated relationship and

individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang Pukang Investment

concerted actions among above shareholders

Limited Partnership.

Except for these, the Company does not know whether the other shareholders are related parties or whether they are acting-in-concert

parties in accordance with the Measures for Management of the Disclosure of the Shareholding Changes of Shareholders of the Listed

Company.

6

Hikvision 2020 Q3 Report

Any of the Company's top 10 common shareholders or top 10 non-restricted common shareholders conducts any agreed buy-back in the reporting period?

□ Applicable √ Inapplicable

No such cases in the reporting period.

2. Total number of preferred shareholders and information about Top 10 preferred shareholders

□ Applicable √ Inapplicable

7

Hikvision 2020 Q3 Report

Section III Significant Events

1. Information and explanation about variations in key financial statement items and financial indicators during the reporting period.

√Applicable □Inapplicable

1.1 Explanation for variations in balance sheet items

Balance at

Balance at

YoY

Item

September 30th 2020

December 31st 2019

change

Note of Changes

(RMB)

(RMB)

(%)

According to the new revenue standard,

Contract assets

126,490,278.41

0.00

100.00%

part of the completed and unsettled

assets and accounts receivable are

reclassified to contract assets.

Decrease in unsettled assets that have

Other non-current assets

542,886,697.82

865,586,676.92

-37.28%

been completed for more than one year

according to the construction progress

of the projects

Non-current assets due

1,036,003,483.96

528,469,701.75

96.04%

within one year

Increase in long-term receivables

Long-term receivables

1,975,160,938.45

1,382,536,761.22

42.86%

confirmed by installment sales of goods

Long-term equity

521,779,447.88

252,165,321.49

106.92%

Increase in external equity investments

investment

Other non-current financial

458,565,043.51

312,398,267.44

46.79%

Increase in external equity investments

assets

Mainly due to increased investment in

the second phase of the Chengdu

Construction in progress

1,248,463,158.58

631,555,479.06

97.68%

Technology Base, Hangzhou Innovation

Industrial Base and Chongqing

Technology Base

Short-term borrowings

4,339,565,033.35

2,640,082,485.15

64.37%

Increased demand for short-term

working capital

Notes payable

610,407,561.05

1,239,584,016.70

-50.76%

Increase in purchase payment due

Taxes payable

1,798,414,632.65

991,342,805.91

81.41%

Increase in unpaid corporate income tax

Other payables

2,227,367,991.23

1,568,744,599.94

41.98%

Increase in accrued expenses and unpaid

dividends payable

Non-current liabilities due

207,812,149.40

86,123,154.06

141.30%

Increase in long-term loans due within

within one year

one year

8

Hikvision 2020 Q3 Report

The Company issued 1 billion RMB of

Other current liabilities

1,817,675,879.67

913,534,538.26

98.97%

short-term commercial paper during the

current reporting period

Deferred income tax

95,017,852.70

51,088,103.96

85.99%

Increased taxable temporary differences

liabilities

such as accelerated depreciation

Other comprehensive

-88,048,825.29

-53,541,146.99

-64.45%

Exchange rate fluctuations caused a

decrease in the conversion differences

income

of foreign currency statements

1.2 Explanation for variations in income statement items

Item

2020 Q1~Q3 (RMB)

2019 Q1~Q3 (RMB)

YoY Change

Note of changes

(%)

Financial expense

154,708,009.70

-626,571,624.15

124.69%

Increase in foreign exchange losses

subject to exchange rate fluctuations.

Investment Income

124,741,116.75

29,551,998.27

322.11%

Increase in investment dividends

Gains from changes in

40,458,673.51

11,214,933.39

260.76%

Increase in gains from changes in

fair value of other non-current

fair value

financial assets

Asset impairment loss

-260,366,239.98

-149,483,833.80

74.18%

Increase in provision for impairment

of inventory

1.3 Explanation for variations in cash flow statement items

Item

2020 Q1~Q3 (RMB)

2019 Q1~Q3 (RMB)

YoY

Note of changes

Change (%)

Net cash flows from

Mainly the increase in sales

5,534,617,992.83

124,315,235.40

4352.08%

collection for the current reporting

operating activities

period

Increase in external equity

Net cash flows from

-1,803,764,753.48

-1,257,968,335.26

-43.39%

investment and long-term asset

investing activities

purchase and construction

expenditures

2. Progress and influence of significant events, analysis and explanation of corresponding solutions.

√ Applicable □ Inapplicable

On July 24th 2020, the 18th meeting of the fourth board of directors of the Company reviewed and approved the Proposal on Transfer of Part of Assets to the Company's Holding Subsidiary of Innovative Business", agreeing to the Company to transfer the

9

Hikvision 2020 Q3 Report

asset group of the thermal imaging division of Hikvision at a consideration of RMB 801.14 million (excluding tax) to Hangzhou Hikmicro Sensing Technology Co., Ltd., a holding subsidiary of innovative business. The above transfer was completed in July 2020.

On May 23th 2020, the Company disclosed the Announcement on the pre-disclosure of Shareholding Reduction (No. 2020- 034): The shareholder, Gong Hongjia, who holds 1,255,056,700 shares of the Company (accounting for 13.43% of the Company's total share capital) plans to reduce his holdings of the Company's shares, not exceeding 2% of the Company's total share capital, within six months after 15 trading days from the date of the announcement. On September 3rd 2020, the Company received the Gong Hongjia's Notification Letter on the Completion of the Implementation of the Share Reduction Plan issued by shareholder Gong Hongjia. Gong Hongjia reduced his holdings of the Company's shares by a total of 93,448,486 shares (accounting for 1.00% of the current Company's total share capital) through bidding transactions. The implementation of the reduction plan is completed, and the remaining shares of the reduction plan will no longer be reduced through bidding transactions. For details, please refer to the Announcement on Share Reduction by Shareholders (No. 2020-050)disclosed by the Company on September 4th 2020.

Overview of significant events

Disclosure Date

Temporary public disclosure website

index

Proposal on Transfer of Part of Assets to the Company's Holding

July 25th 2020

www.cninfo.com.cn

Subsidiary of Innovative Business

Announcement on Share Reduction by Shareholders

September 4th 2020

www.cninfo.com.cn

Implementation progress of share repurchase □ Applicable √ Inapplicable

Progress in the implementation of the reduction of repurchased shares by means of centralized bidding □ Applicable √ Inapplicable

3. Unfulfilled and overdue commitments from the related committed parties such as the

Company's actual controller, shareholders, related parties, acquirer(s), and the Company during the reporting period

□Applicable √Inapplicable

No such case during the reporting period.

4. Financial asset investment

1. Securities investment

□Applicable √Inapplicable

10

Hikvision 2020 Q3 Report

2. Details in derivatives investment

√Applicable □Inapplicable

Unit: 0,000 RMB

Name of

Whether

Initial investment

Purchase amount

Amount sold

Amount of

The proportion of the

Actual profit

Types of

Initial

during the

Closing

closing investment

derivative

Relation-

related

amount of

Start Date

Expiration

during the

impairment

and loss amount

derivatives

investment

current

investment

amount to the Company's

investment

ship

transaction

derivatives

date

current reporting

provision (if

during the

investment

amount

reporting

amount

net assets at the end of the

operator

exists

investment

period

any)

reporting period

period

reporting period

Commercial

Foreign

December

November

No

No

98,489.32

98,489.32

151,174.96

-

-

20,152.37

0.42%

-314.59

bank

exchange

5th 2019

3rd 2020

contract

Total

98,489.32

--

--

98,489.32

151,174.96

-

-

20,152.37

0.42%

-314.59

Source of funds for derivatives investments

Own capital

Litigation involved (if applicable)

Not applicable

Disclosure date of the board of directors announcement for the approval of

April 20th 2019 / December 25th 2019

derivatives investment (if any)

Disclosure date of the announcement of the shareholders meeting for the

May 16th 2020

approval of derivatives investment (if any)

Risk analysis and control measures for derivatives holdings during the

For specific information on risk analysis and control measures, please refer to the Announcement on Conducting Foreign Exchange Hedging

reporting period (including but not limited to market risk, liquidity risk, credit

Transactions in 2019 (Announcement No. 2019-021) disclosed by the Company on April 20th 2019 and Announcement on the Implementation of

risk, operational risk, legal risk, etc.)

Foreign Exchange Hedging Transactions in 2020 (Announcement No. 2019-065) disclosed on December 25th 2019.

Changes in market prices or product fair values of invested derivatives during

The Company's accounting for the fair value of derivatives is mainly for the unexpired contracts of forward foreign exchange settlement and sale

the reporting period. The analysis of the fair value of derivatives should

transactions signed by the Company and banks during the reporting period. Based on the difference between the quotation of the unexpired forward

disclose the specific methods used and related assumptions and parameter

foreign exchange settlement and sale contract at the end of the period and the forward foreign exchange price, the held-for-trading financial assets or

settings

held-for-trading financial liabilities are recognized.

11

Hikvision 2020 Q3 Report

Explanation of whether the Company's derivatives accounting policies and

specific accounting principles have changed significantly during the reporting Not applicable period compared with the previous reporting period

Independent directors' specific opinions on the Company's derivatives

Not applicable

investment and risk control

5. Progress of investment projects with raised funds

□Applicable √Inapplicable

6. Guidance on the Company's 2020 full year operational results.

□Applicable √Inapplicable

7Major contracts for daily operations

□Applicable √Inapplicable

Significant differences between the progress of a major contract and the contract agreement and affect more than 30% of the contract amount. □Applicable √Inapplicable

8. Entrusted financial management

Applicable Inapplicable

No such case during the current reporting period.

9. Illegal provision of guarantees for external parties

□ Applicable √ Inapplicable

No such case in the reporting period.

12

Hikvision 2020 Q3 Report

10. The Company's funds used by the controlling shareholder or its related parties for non- operating purposes

  • Applicable Inapplicable

No such case in the reporting period.

11. Schedule for the reception activities including research, communication and interviews during the reporting period

  • Applicable Inapplicable

11.1 Reception of research activities during 2020 Q3

Time of reception

Location

Method of reception

Type of reception

Index of basic situation of the research activities

object

Corporate Headquarter

Performance Result

Institutional

CNINF, Investor Relations Activity Record: July

July 25th 2020

investors;

conference room

Conference Call

25TH 2020

Individuals

From July 27th

2020 to

Corporate Headquarter

On-site Research and

Institutional

CNINF, Investor Relations Activity Record: From

August 10th

2020

conference room

telephone communication

investors

July 27th 2020 to August 10th 2020

From August 11th

2020 to

Corporate Headquarter

On-site Research and

Institutional

CNINF, Investor Relations Activity Record: From

August 21st

2020

conference room

telephone communication

investors

August 11th 2020 to August 21st 2020

From August 24th

2020 to

Corporate Headquarter

On-site Research and

Institutional

CNINF, Investor Relations Activity Record: From

September 4th

2020

conference room

telephone communication

investors

August 24th 2020 to September 4th 2020

From September 7th 2020

Corporate Headquarter

On-site Research and

Institutional

CNINF, Investor Relations Activity Record: From

to September 25th 2020

conference room

telephone communication

investors

September 7th 2020 to September 25th 2020

13

Hikvision 2020 Q3 Report

11.2 Participation of conferences for investor relationship activities during 2020 Q3

Time of

Location

Conference Name

Type of reception

Method of reception

conference

object

July 2020

Virtual

Europe Virtual NDR-via CICC

All kinds of

One-on-One,One-on-multi, small group

Conference

investors

Meetings, and etc.

August 2020

Virtual

Hongkong Virtual NDR-via Bernstein

All kinds of

One-on-One,One-on-multi, small group

Conference

investors

Meetings, and etc.

August 2020

Virtual

Hongkong Virtual NDR-via Jefferies

All kinds of

One-on-One,One-on-multi, small group

Conference

investors

Meetings, and etc.

August 2020

Virtual

U.S.A Virtual NDR- via Jefferies

All kinds of

One-on-One,One-on-multi, small group

Conference

investors

Meetings, and etc.

August 2020

Shanghai

NDR-via Guangfa Securities

All kinds of

One-on-One,One-on-multi, small group

investors

Meetings, and etc.

August 2020

Shenzhen,

NDR-via Shenwan Hongyuan

All kinds of

One-on-One,One-on-multi, small group

Guangzhou

Securities

investors

Meetings, and etc.

August 2020

Virtual

Europe and U.S.A. NDR-via

All kinds of

One-on-One,One-on-multi, small group

Conference

Bernstein

investors

Meetings, and etc.

August 2020

Beijing

NDR-via CITIC Securities

All kinds of

One-on-One,One-on-multi, small group

investors

Meetings, and etc.

August 2020

Virtual

Nomura Virtual China Investor

All kinds of

One-on-One,One-on-multi, small group

Conference

Forum 2020

investors

Meetings, and etc.

August 2020

Virtual

UBS 2020 China A-Share Virtual

All kinds of

One-on-One,One-on-multi, small group

Conference

Conference

investors

Meetings, and etc.

August 2020

Virtual

Goldman Sachs China A-Share

All kinds of

One-on-One,One-on-multi, small group

Conference

Conference

investors

Meetings, and etc.

September

Virtual

Huachuang Securities 2020 Autumn

All kinds of

One-on-One,One-on-multi, small group

2020

Conference

Conference

investors

Meetings, and etc.

September

Virtual

Morgan Stanley Virtual Asia TMT

All kinds of

One-on-One,One-on-multi, small group

2020

Conference

Conference

investors

Meetings, and etc.

September

Virtual

21st Credit Suisse

All kinds of

One-on-One,One-on-multi, small group

2020

Conference

Asian Technology Conference (virtual

Meetings, and etc.

investors

event)

September

Virtual

The 27th CITIC Securities-CLSA

All kinds of

One-on-One,One-on-multi, small group

2020

Conference

Flagship Investor Forum

investors

Meetings, and etc.

September

Virtual

Jefferies Inaugural Jefferies Asia

All kinds of

One-on-One,One-on-multi, small group

2020

Conference

Forum

investors

Meetings, and etc.

September

Virtual

Bernstein 17th Annual Pan European

All kinds of

One-on-One,One-on-multi, small group

2020

Conference

Strategic Decisions Conference

investors

Meetings, and etc.

14

Hikvision 2020 Q3 Report

11.3 Investor relations activity statistics during 2020 Q3

Number of daily research received (On-site and telephone conference, times)

89

Number of institutional investors received (ppl)

1,094

Number of individual investors received (ppl)

17

Number of investor relations conference participated

17

15

Hikvision 2020 Q3 Report

Section IV Financial Reports

4.1 Financial Reports

1. Consolidated Balance Sheet

September 30th 2020

Unit: RMB

Item

September 30th 2020

December 31st 2019

Current Assets:

Cash and bank balances

26,724,024,164.26

27,071,948,919.78

Held-for-trading financial assets

3,699,122.53

181.76

Notes receivable

1,011,138,678.03

973,236,789.02

Accounts receivable

23,081,153,716.66

21,307,927,200.28

Receivables for financing

1,401,626,436.20

1,257,385,053.02

Prepayments

353,652,040.44

309,685,733.32

Other receivables

487,082,928.46

555,246,545.48

Inventories

11,152,999,292.02

11,267,986,843.11

Contract assets

126,490,278.41

-

Non-current assets due within one year

1,036,003,483.96

528,469,701.75

Other current assets

709,905,750.73

754,456,821.72

Total Current Assets

66,087,775,891.70

64,026,343,789.24

Non-current Assets:

Long-term receivables

1,975,160,938.45

1,382,536,761.22

Long-term equity investment

521,779,447.88

252,165,321.49

Other non-current financial assets

458,565,043.51

312,398,267.44

Fixed assets

5,949,833,303.19

5,791,218,720.87

Construction in progress

1,248,463,158.58

631,555,479.06

Intangible assets

1,180,714,269.67

1,046,122,507.64

Goodwill

270,239,159.35

273,611,961.96

Long-term deferred expenses

95,363,789.29

87,611,490.75

Deferred tax assets

885,952,578.83

688,849,263.70

Other non-current assets

542,886,697.82

865,586,676.92

Total Non-current Assets

13,128,958,386.57

11,331,656,451.05

Total Assets

79,216,734,278.27

75,358,000,240.29

Current Liabilities:

Short-term borrowings

4,339,565,033.35

2,640,082,485.15

Held-for-trading financial liabilities

7,004.35

652,428.18

Notes payable

610,407,561.05

1,239,584,016.70

Accounts payable

9,818,653,069.71

12,700,075,307.70

Contract Liabilities

1,352,215,377.01

-

16

Hikvision 2020 Q3 Report

Item

September 30th 2020

December 31st 2019

Receipts in advance

1,020,989,460.61

Payroll payable

2,235,616,280.86

2,359,674,640.12

Taxes payable

1,798,414,632.65

991,342,805.91

Other payables

2,227,367,991.23

1,568,744,599.94

Including : Interests payable

Dividends payable

205,898,523.84

108,129,385.24

Non-current liabilities due within one year

207,812,149.40

86,123,154.06

Other current liabilities

1,817,675,879.67

913,534,538.26

Total Current Liabilities

24,407,734,979.28

23,520,803,436.63

Non-current Liabilities:

Long-term borrowings

4,797,581,206.34

4,604,168,571.43

Long-term payables

49,212,312.82

50,181,416.72

Provisions

85,303,772.07

90,570,669.01

Deferred income

192,809,629.77

333,589,831.30

Deferred tax liabilities

95,017,852.70

51,088,103.96

Other non-current liabilities

1,234,739,326.10

1,234,739,326.10

Total non-current liabilities

6,454,664,099.80

6,364,337,918.52

Total liabilities

30,862,399,079.08

29,885,141,355.15

Owners' Equity

Share capital

9,345,010,696.00

9,345,010,696.00

Capital reserves

5,058,308,870.67

4,126,943,698.96

Less: Treasury shares

2,046,939,271.56

2,148,273,864.36

Other comprehensive income

(88,048,825.29)

(53,541,146.99)

Surplus reserves

4,672,505,348.00

4,672,505,348.00

Retained earnings

30,859,948,589.38

28,961,389,145.22

Total owners' equity attributable to

47,800,785,407.20

44,904,033,876.83

owner of the Company

Minority equity

553,549,791.99

568,825,008.31

Total owners' equity

48,354,335,199.19

45,472,858,885.14

Total liabilities and owners' equity

79,216,734,278.27

75,358,000,240.29

Legal Representative: Chen Zongnian

Person in Charge of the Accounting work: Jin Yan

Person in Charge of Accounting Institution: Zhan Junhua

17

Hikvision 2020 Q3 Report

2. Balance Sheet of the Parent Company

Unit: RMB

Item

September 30th 2020

December 31st 2019

Current Assets:

Cash and bank balances

18,431,399,544.71

16,851,590,525.05

Notes receivable

122,418,086.27

149,703,073.98

Accounts receivable

29,999,914,461.83

25,107,965,925.08

Receivables for financing

97,128,786.70

84,839,695.67

Prepayments

177,688,053.30

160,688,588.99

Other receivables

1,525,238,871.47

921,275,388.15

Including: Interests receivable

Dividends receivable

-

2,550,000.00

Inventories

221,715,239.78

171,243,815.97

Contract assets

5,484,332.44

-

Non-current assets due within one year

94,087,854.60

4,513,795.81

Other current assets

21,460,416.80

23,117,398.50

Total Current Assets

50,696,535,647.90

43,474,938,207.20

Non-current Assets:

Long-term receivables

68,593,256.43

681,568.43

Long-term equity investment

6,044,491,821.20

5,074,018,030.44

Other non-current financial assets

455,670,823.51

309,504,047.44

Fixed assets

2,806,275,072.45

2,831,295,145.61

Construction in progress

344,069,153.59

153,416,054.28

Intangible assets

165,825,318.15

188,362,883.75

Long-term deferred expenses

44,329,900.69

34,199,446.06

Deferred tax assets

176,930,540.34

126,357,792.34

Other non-current assets

18,749,006.23

21,619,464.07

Total Non-current Assets

10,124,934,892.59

8,739,454,432.42

Total Assets

60,821,470,540.49

52,214,392,639.62

Current Liabilities:

Short-term borrowings

3,482,751,236.09

2,001,781,388.89

Accounts payable

449,065,134.95

450,983,270.08

Contract liabilities

318,991,129.74

-

Receipts in advance

227,242,328.23

18

Hikvision 2020 Q3 Report

Item

September 30th 2020

December 31st 2019

Payroll payable

1,424,975,531.91

1,564,304,003.49

Taxes payable

1,519,649,694.85

796,890,945.83

Other payables

2,258,051,626.19

533,325,191.05

Including : Interests payable

Dividends payable

205,898,523.84

105,679,385.24

Non-current liabilities due within

4,445,607.82

9,539,251.98

one year

Other current liabilities

1,817,675,879.77

913,534,538.26

Total Current Liabilities

11,275,605,841.32

6,497,600,917.81

Non-current Liabilities:

Long-term borrowings

3,197,640,000.00

3,126,200,000.00

Provisions

51,992,619.07

62,863,096.83

Deferred Income

123,060,667.94

162,018,728.45

Other non-current liabilities

1,234,739,326.10

1,234,739,326.10

Total non-current liabilities

4,607,432,613.11

4,585,821,151.38

Total liabilities

15,883,038,454.43

11,083,422,069.19

Owners' Equity

Share capital

9,345,010,696.00

9,345,010,696.00

Capital reserves

4,665,997,632.43

4,064,833,739.52

Less: Treasury shares

2,046,939,271.56

2,148,273,864.36

Surplus reserves

4,672,505,348.00

4,672,505,348.00

Retained earnings

28,301,857,681.19

25,196,894,651.27

Total owners' equity

44,938,432,086.06

41,130,970,570.43

Total liabilities and owners' equity

60,821,470,540.49

52,214,392,639.62

Legal Representative: Chen Zongnian

Person in Charge of the Accounting work: Jin Yan

Person in Charge of Accounting Institution: Zhan Junhua

19

Hikvision 2020 Q3 Report

3. Consolidated Income Statement

Unit: RMB

Item

2020 Q3

2019 Q3

I. Total operating income

17,750,035,645.86

15,915,642,804.35

IITotal operating costs

14,236,690,054.68

11,986,336,953.81

IncludingTotal operating costs

9,777,113,666.40

8,496,804,444.94

Business taxes and surcharges

115,971,298.33

96,963,076.85

Selling expenses

1,813,548,049.93

1,940,139,966.75

Administrative expenses

470,051,489.24

446,580,701.06

Research and Development (R&D) expenses

1,677,325,334.35

1,502,476,961.10

Financial expenses

382,680,216.43

(496,628,196.89)

IncludingInterest expenses

54,235,983.98

74,410,747.56

Interest income

157,417,761.75

161,426,059.65

Add: Other Income

695,122,842.24

580,970,230.04

Investment income (loss)

(25,478,592.81)

8,327,642.30

Including: Investment gains (losses) in associated

(13,390,249.40)

5,825,385.04

enterprise and joint-venture enterprise

Gains from changes in fair values

60,895,110.47

9,348,538.93

Credit impairment losses ("-")

(56,336,117.60)

(144,256,060.56)

Impairment losses ("-") of assets

(94,972,081.65)

(69,340,091.15)

Asset disposal income

283,087.18

389,512.37

III. Operating profit

4,092,859,839.01

4,314,745,622.47

Add: Non-operating income

19,780,669.56

20,153,328.90

Less: Non-operating expenses

5,510,143.35

3,644,173.04

IV. Total profit

4,107,130,365.22

4,331,254,778.33

Less: Income tax expenses

196,804,188.85

460,924,198.11

V. Net profit

3,910,326,176.37

3,870,330,580.22

5.1 Classification by operation continuity

(a) Net profit on continuous operation

3,910,326,176.37

3,870,330,580.22

5.2 Classification by attribution of ownership

(a) Profit or loss attributable to minority shareholders

95,347,530.60

59,751,625.33

(b) Net profit attributable to owners of parent company

3,814,978,645.77

3,810,578,954.89

VI. Other comprehensive income, net of income tax

(9,595,165.08)

(5,267,606.68)

Other comprehensive income attributable to owners of the

(10,024,762.83)

(5,162,206.61)

Company, net of tax

(I) Items that will not be reclassified subsequently to profit or

loss

20

Hikvision 2020 Q3 Report

Item

2020 Q3

2019 Q3

(II) Other comprehensive income to be reclassified to profit or

(10,024,762.83)

(5,162,206.61)

loss in subsequent periods

Exchange differences arising on conversion of financial

(10,024,762.83)

(6,527,620.17)

statements denominated in foreign currencies

Gains and losses from changes in fair value of other

1,365,413.56

current assets

Other comprehensive income attributable to minority interests,

429,597.75

(105,400.07)

net of tax

VII. Total comprehensive income

3,900,731,011.29

3,865,062,973.54

Total comprehensive income attributable to owners of the

3,804,953,882.94

3,805,416,748.28

parent company

Total comprehensive income attributable to minority

95,777,128.35

59,646,225.26

shareholders

VIII. Earnings per share

(I) Basic earnings per share

0.405

0.400

(II) Diluted earnings per share

0.405

0.400

Legal Representative: Chen Zongnian

Person in Charge of the Accounting work: Jin Yan

Person in Charge of Accounting Institution: Zhan Junhua

4. Income Statement of the Parent Company

Unit: RMB

Item

2020 Q3

2019 Q3

I. Total operating income

7,511,924,308.00

6,920,272,660.94

Less: Total operating Cost

1,956,223,390.19

2,180,260,453.52

Business taxes and surcharges

84,476,812.68

67,760,722.14

Selling expenses

628,836,225.71

852,081,852.19

Administrative expenses

202,054,745.57

184,623,515.65

Research and Development (R&D) expenses

1,067,748,117.12

1,095,442,523.12

Financial expenses

(37,892,562.70)

(361,435,536.59)

Including : Interest expenses

8,885,004.93

6,808,200.57

Interest income

110,979,371.45

124,514,655.05

Add: Other income

553,775,426.53

434,811,042.75

Investment income

793,888,185.71

2,102,615.50

Including: Investment gain (loss) in associated

(8,930,255.92)

2,102,615.50

enterprise and joint-venture enterprise

Gains from changes in fair values

49,112,093.33

10,635,547.81

Credit impairment losses ("-")

(11,379,036.94)

(30,515,452.66)

Impairment losses ("-") of assets

500,808.24

1,753,720.58

Asset disposal income

7,882.27

10,098.01

II. Operating profit

4,996,382,938.57

3,320,336,702.90

Add: Non-operating income

3,145,560.28

4,577,655.07

21

Hikvision 2020 Q3 Report

Item

2020 Q3

2019 Q3

Less: Non-operating expenses

2,846,523.76

1,684,190.05

III. Total profit

4,996,681,975.09

3,323,230,167.92

Less: Income tax expenses

293,424,076.90

151,477,969.94

IV. Net profit

4,703,257,898.19

3,171,752,197.98

(a) Net profit on continuous operation

4,703,257,898.19

3,171,752,197.98

V. Other comprehensive income, net of income tax

(1,937,862.58)

(I) Items that will not be reclassified subsequently to profit or

loss

(II) Other comprehensive income to be reclassified to profit or

(1,937,862.58)

loss in subsequent periods

Gains and losses from changes in fair value of other current

(1,937,862.58)

assets

VI. Total comprehensive income

4,703,257,898.19

3,169,814,335.40

Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan

Person in Charge of Accounting Institution: Zhan Junhua

5. Consolidated Income Statement from January 1st 2020 to September 30th 2020

Unit: RMB

Item

2020 Q1-Q3

2019 Q1-Q3

I. Total operating income

42,021,194,889.62

39,838,916,228.85

IITotal operating costs

33,719,184,646.63

31,313,618,168.78

IncludingTotal operating costs

21,970,833,611.78

21,337,310,778.62

Business taxes and surcharges

284,043,463.58

264,510,982.77

Selling expenses

5,233,839,568.35

5,153,400,075.91

Administrative expenses

1,335,010,979.18

1,177,690,944.82

Research and Development (R&D) expenses

4,740,749,014.04

4,007,277,010.81

Financial expenses

154,708,009.70

(626,571,624.15)

IncludingInterest expenses

148,373,068.03

167,413,125.18

Interest income

464,390,827.93

454,438,589.00

Add: Other Income

1,689,901,236.39

1,303,536,451.58

Investment income

124,741,116.75

29,551,998.27

Including: Investment gains (losses) in

associated enterprise and joint-venture

(22,332,967.09)

1,610,229.42

enterprise

Gains from changes in fair values

40,458,673.51

11,214,933.39

Credit impairment losses ("-")

(209,108,587.37)

(278,782,493.13)

Impairment losses ("-") of assets

(260,366,239.98)

(149,483,833.80)

Asset disposal income

304,642.17

1,199,556.27

22

Hikvision 2020 Q3 Report

Item

2020 Q1-Q3

2019 Q1-Q3

III. Operating profit

9,687,941,084.46

9,442,534,672.65

Add: Non-operating income

51,501,876.64

58,460,407.50

Less: Non-operating expenses

12,888,908.91

12,058,354.95

IV. Total profit

9,726,554,052.19

9,488,936,725.20

Less: Income tax expenses

1,149,356,334.82

1,394,844,854.79

V. Net profit

8,577,197,717.37

8,094,091,870.41

5.1 Classification by operation continuity

(a) Net profit on continuous operation

8,577,197,717.37

8,094,091,870.41

5.2 Classification by attribution of ownership

(a) Profit or loss attributable to minority

138,246,240.73

66,757,705.28

shareholders

(b) Net profit attributable to owners of parent

8,438,951,476.64

8,027,334,165.13

company

VI. Other comprehensive income, net of income tax

(36,391,343.45)

224,061.25

Other comprehensive income attributable to owners of

(34,507,678.30)

(239,399.77)

the parent company, net of tax

(I) Items that will not be reclassified subsequently to

profit or loss

(II) Other comprehensive income to be reclassified to

(34,507,678.30)

(239,399.77)

profit or loss in subsequent periods

1.Exchange differences arising on conversion of

(34,507,678.30)

(15,729,788.42)

financial statements denominated in foreign currencies

2.Gains and losses from changes in fair value of other

15,490,388.65

current assets

Other comprehensive income attributable to minority

(1,883,665.15)

463,461.02

interests, net of tax

VII. Total comprehensive income

8,540,806,373.92

8,094,315,931.66

Total comprehensive income attributable to owners of

8,404,443,798.34

8,027,094,765.36

the parent company

Total comprehensive income attributable to minority

136,362,575.58

67,221,166.30

shareholders

VIII. Earnings per share

(I) Basic earnings per share

0.909

0.860

(II) Diluted earnings per share

0.909

0.860

Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan

Person in Charge of Accounting Institution: Zhan Junhua

6. Income Statement of the Parent Company from January 1st 2020 to September 30th 2020

Unit: RMB

Item

2020 Q1-Q3

2019 Q1-Q3

I. Total operating income

19,096,192,393.23

17,354,516,639.53

Less: Total operating Cost

4,878,230,387.67

5,260,041,102.44

Business taxes and surcharges

212,000,163.18

179,363,153.88

23

Hikvision 2020 Q3 Report

Item

2020 Q1-Q3

2019 Q1-Q3

Selling expenses

2,007,406,390.91

2,352,469,006.14

Administrative expenses

584,100,618.17

531,467,438.33

Research and Development (R&D)

3,258,134,217.35

2,875,427,888.71

expenses

Financial expenses

(238,495,703.61)

(436,020,048.92)

Including : Interest expenses

22,674,749.11

49,350,390.76

Interest income

326,480,965.28

392,680,476.99

Add: Other income

1,351,019,789.13

1,070,578,767.20

Investment income

986,594,188.91

19,153,543.65

Including: Investment loss in

associated enterprise and joint-

(12,559,206.81)

(772,376.22)

venture enterprise

Gains from changes in fair values

36,094,761.07

12,788,786.31

Credit impairment losses ("-")

(26,484,698.83)

622,905,019.26

Impairment losses ("-") of assets

1,595,892.90

51,323,003.42

Asset disposal income

10,746.11

191,846.66

II. Operating profit

10,743,646,998.85

8,368,709,065.45

Add: Non-operating income

11,895,468.93

12,793,513.71

Less: Non-operating expenses

4,114,046.66

6,921,272.37

III. Total profit

10,751,428,421.12

8,374,581,306.79

Less: Income tax expenses

1,106,073,358.20

997,044,554.62

IV. Net profit

9,645,355,062.92

7,377,536,752.17

(a) Net profit on continuous operation

9,645,355,062.92

7,377,536,752.17

V. Other comprehensive income, net of income

(774,633.17)

tax

(I) Items that will not be reclassified

subsequently to profit or loss

(II) Other comprehensive income to be

(774,633.17)

reclassified to profit or loss in subsequent periods

1.Gains and losses from changes in fair value of

(774,633.17)

other current assets

VI. Total comprehensive income

9,645,355,062.92

7,376,762,119.00

Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan

Person in Charge of Accounting Institution: Zhan Junhua

24

Hikvision 2020 Q3 Report

7. Consolidated Cash Flow Statement from January 1st 2020 to September 30th 2020

Unit: RMB

Item

2020 Q1-Q3

2019 Q1-Q3

I. Cash flows from operating activities:

Cash received from sale of goods or rendering of

44,732,201,357.96

39,797,920,691.39

services

Receipts of tax refunds

2,519,486,353.29

2,205,856,683.57

Other cash receipts relating to operating activities

1,120,966,888.55

1,108,671,779.38

Sub-total of cash inflows from operating activities

48,372,654,599.80

43,112,449,154.34

Cash payments for goods purchased and services

28,365,300,528.80

29,259,780,105.41

received

Cash paid to and on behalf of employees

7,786,708,739.25

6,690,990,896.32

Payments of various types of taxes

3,516,698,560.06

3,748,604,004.24

Other cash payments relating to operating activities

3,169,328,778.86

3,288,758,912.97

Sub-total of cash outflows from operating activities

42,838,036,606.97

42,988,133,918.94

Net Cash flows from Operating Activities

5,534,617,992.83

124,315,235.40

II. Cash flows from Investing Activities:

Cash receipts from recovery of investments

1,436,901,231.06

Cash receipts from investment income

151,548,143.79

10,579,222.38

Net cash receipts from disposals of fixed assets,

21,360,710.88

56,062,267.50

intangible assets and other long-term assets

Other cash receipts relating to investing activities

24,102,324.29

18,166,664.71

Sub-total of cash inflows from investing activities

1,633,912,410.02

84,808,154.59

Cash payments to acquire or construct fixed assets,

1,605,697,549.12

1,274,540,687.78

intangible assets and other long-term assets

Cash paid to acquire investments

1,831,979,614.38

2,884,220.00

Net cash paid to acquire subsidiaries and other business

65,351,582.07

units

Sub-total of cash outflows from investing activities

3,437,677,163.50

1,342,776,489.85

Net cash flows from Investing Activities

(1,803,764,753.48)

(1,257,968,335.26)

III. Cash flows from financing activities:

Cash receipts from capital contributions

159,764,987.03

113,220,262.15

Including: cash receipts from capital contributions

159,764,987.03

113,220,262.15

from minority owners of subsidiaries

Cash receipts from borrowings

3,681,920,917.95

7,150,799,943.42

Cash receipts from issuance of bonds

999,500,000.00

Sub-total of cash inflows from financing activities

4,841,185,904.98

7,264,020,205.57

Cash repayments of borrowings

1,734,060,296.82

2,826,949,887.78

Cash repayments of bonds

3,079,240,000.00

25

Hikvision 2020 Q3 Report

Cash payments for distribution of dividends or profits or

6,599,275,667.73

5,808,192,337.22

settlement of interest expenses

Other cash payments relating to financing activities

64,290,000.00

26,897,116.20

Sub-total of cash outflows from financing activities

8,397,625,964.55

11,741,279,341.20

Net cash flows from Financing Activities

(3,556,440,059.57)

(4,477,259,135.63)

IV. Effect of foreign exchange rate changes on Cash and

(418,677,132.16)

314,124,262.83

Cash Equivalents

V. Net Increase in Cash and Cash Equivalents

(244,263,952.38)

(5,296,787,972.66)

Add: Opening balance of Cash and Cash Equivalents

26,515,668,008.40

26,031,011,733.89

VI. Closing Balance of Cash and Cash Equivalents

26,271,404,056.02

20,734,223,761.23

Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan

Person in Charge of Accounting Institution: Zhan Junhua

8. Cash Flow Statement of the Parent Company from January 1st 2020 to September 30th 2020

Unit: RMB

Item

2020 Q1-Q3

2019 Q1-Q3

I. Cash flows from Operating Activities::

Cash receipts from the sale of goods and the rendering of

16,415,929,623.98

12,029,215,025.03

services

Receipts of tax refunds

1,151,059,755.24

934,577,449.38

Other cash receipts relating to operating activities

601,515,335.11

596,615,907.62

Sub-total of cash inflows from operating activities

18,168,504,714.33

13,560,408,382.03

Cash payments for goods acquired and services received

5,642,609,260.24

6,141,625,941.11

Cash payments to and on behalf of employees

4,067,488,635.30

3,826,354,338.41

Payments of various types of taxes

2,309,740,849.52

2,274,516,905.16

Other cash payments relating to operating activities

1,077,193,118.06

1,374,026,139.24

Sub-total of cash outflows from operating activities

13,097,031,863.12

13,616,523,323.92

Net Cash flows from Operating Activities

5,071,472,851.21

(56,114,941.89)

II. Cash flows from Investing Activities:

Cash receipts from recovery of investments

2,800,000.00

Cash receipts from investment income

153,552,279.56

2,568,699.00

Net cash receipts from disposals of fixed assets, intangible

5,422,277.99

3,976,093.24

assets and other long-term assets

Other cash receipts relating to investing activities

1,655,981,987.34

3,066,451,513.72

Sub-total of cash inflows from investing activities

1,817,756,544.89

3,072,996,305.96

Cash payments to acquire or construct fixed assets,

360,168,318.03

264,771,882.74

intangible assets and other long-term assets

26

Hikvision 2020 Q3 Report

Cash payments to acquire investments

922,603,054.15

Net cash paid to acquire subsidiaries and other business

414,400,000.00

units

Other cash payments relating to investing activities

982,391,211.78

Sub-total of cash outflows from investing activities

1,282,771,372.18

1,661,563,094.52

Net Cash flows from Investing Activities

534,985,172.71

1,411,433,211.44

III. Cash flows from Financing Activities

Cash receipts from borrowings

2,480,000,000.00

3,679,240,000.00

Cash receipts from issuance of bonds

999,500,000.00

Sub-total of cash inflows from financing activities

3,479,500,000.00

3,679,240,000.00

Cash repayments of borrowings

1,000,000,000.00

Cash repayments of bonds

3,079,240,000.00

Cash payments for distribution of dividends or profits or

6,468,742,388.72

5,669,311,652.85

settlement of interest expenses

Other cash payments relating to financing activities

26,897,116.20

Sub-total of cash outflows from financing activities

7,468,742,388.72

8,775,448,769.05

Net Cash flows from Financing Activities

(3,989,242,388.72)

(5,096,208,769.05)

IV. Effect of foreign exchange rate changes on Cash and

(36,671,500.59)

140,012,598.62

Cash Equivalents

V. Net increase in cash and cash equivalents

1,580,544,134.61

(3,600,877,900.88)

Add: Beginning balance of cash and cash

16,656,028,410.72

18,998,934,287.59

equivalents

VI. Closing Balance of Cash and Cash Equivalents

18,236,572,545.33

15,398,056,386.71

Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan

Person in Charge of Accounting Institution: Zhan Junhua

4.2 Notes on financial statement adjustment

  1. Implementation of the new revenue standard for the first time since 2020, adjustments to the implementation of relevant items in the financial statements at the beginning of the year
    Applicable Inapplicable
    Whether to adjust the balance sheet account at the beginning of the year
    Applicable Inapplicable

Consolidated Balance Sheet

Unit: RMB

Item

December 31st 2019

January 1st 2020

Adjustments

Current Assets:

Cash and bank balances

27,071,948,919.78

27,071,948,919.78

0.00

Held-for-trading financial assets

181.76

181.76

0.00

27

Hikvision 2020 Q3 Report

Item

December 31st 2019

January 1st 2020

Adjustments

Notes receivable

973,236,789.02

973,236,789.02

0.00

Accounts receivable

21,307,927,200.28

21,272,964,582.56

-34,962,617.72

Receivables for financing

1,257,385,053.02

1,257,385,053.02

0.00

Prepayments

309,685,733.32

309,685,733.32

0.00

Other receivables

555,246,545.48

555,246,545.48

0.00

Inventories

11,267,986,843.11

10,756,027,592.41

-511,959,250.70

Contract assets

546,921,868.42

546,921,868.42

Non-current assets due within one

528,469,701.75

528,469,701.75

0.00

year

Other current assets

754,456,821.72

754,456,821.72

0.00

Total Current Assets

64,026,343,789.24

64,026,343,789.24

0.00

Non-current Assets:

Long-term receivables

1,382,536,761.22

1,382,536,761.22

0.00

Long-term equity investment

252,165,321.49

252,165,321.49

0.00

Other non-current financial assets

312,398,267.44

312,398,267.44

0.00

Fixed assets

5,791,218,720.87

5,791,218,720.87

0.00

Construction in progress

631,555,479.06

631,555,479.06

0.00

Intangible assets

1,046,122,507.64

1,046,122,507.64

0.00

Goodwill

273,611,961.96

273,611,961.96

0.00

Long-term deferred expenses

87,611,490.75

87,611,490.75

0.00

Deferred tax assets

688,849,263.70

688,849,263.70

0.00

Other non-current assets

865,586,676.92

865,586,676.92

0.00

Total Non-current Assets

11,331,656,451.05

11,331,656,451.05

0.00

Total Assets

75,358,000,240.29

75,358,000,240.29

0.00

Current Liabilities:

Short-term borrowings

2,640,082,485.15

2,640,082,485.15

0.00

Held-for-trading financial liabilities

652,428.18

652,428.18

0.00

Notes payable

1,239,584,016.70

1,239,584,016.70

0.00

Accounts payable

12,700,075,307.70

12,700,075,307.70

0.00

Receipts in advance

1,020,989,460.61

-1,020,989,460.61

Contract liabilities

1,128,239,007.61

1,128,239,007.61

Payroll payable

2,359,674,640.12

2,359,674,640.12

0.00

Taxes payable

991,342,805.91

991,342,805.91

0.00

Other payables

1,568,744,599.94

1,568,744,599.94

0.00

Including : Interests payable

Dividends payable

108,129,385.24

108,129,385.24

0.00

Non-current liabilities due within

86,123,154.06

86,123,154.06

0.00

28

Hikvision 2020 Q3 Report

Item

December 31st 2019

January 1st 2020

Adjustments

one year

Other current liabilities

913,534,538.26

913,534,538.26

0.00

Total Current Liabilities

23,520,803,436.63

23,628,052,983.63

107,249,547.00

Non-current Liabilities:

Long-term borrowings

4,604,168,571.43

4,604,168,571.43

0.00

Long-term payables

50,181,416.72

50,181,416.72

0.00

Provisions

90,570,669.01

90,570,669.01

0.00

Deferred income

333,589,831.30

226,340,284.30

-107,249,547.00

Deferred tax liabilities

51,088,103.96

51,088,103.96

0.00

Other non-current liabilities

1,234,739,326.10

1,234,739,326.10

0.00

Total non-current liabilities

6,364,337,918.52

6,257,088,371.52

-107,249,547.00

Total liabilities

29,885,141,355.15

29,885,141,355.15

0.00

Owners' Equity

Share capital

9,345,010,696.00

9,345,010,696.00

0.00

Capital reserves

4,126,943,698.96

4,126,943,698.96

0.00

Less: Treasury shares

2,148,273,864.36

2,148,273,864.36

0.00

Other comprehensive income

-53,541,146.99

-53,541,146.99

0.00

Surplus reserves

4,672,505,348.00

4,672,505,348.00

0.00

Retained earnings

28,961,389,145.22

28,961,389,145.22

0.00

Total owners' equity attributable

44,904,033,876.83

44,904,033,876.83

0.00

to owner of the Company

Minority equity

568,825,008.31

568,825,008.31

0.00

Total owners' equity

45,472,858,885.14

45,472,858,885.14

0.00

Total liabilities and owners' equity

75,358,000,240.29

75,358,000,240.29

0.00

Balance Sheet of the Parent Company

Unit: RMB

Item

December 31st 2019

January 1st 2020

Adjustments

Current Assets:

Cash and bank balances

16,851,590,525.05

16,851,590,525.05

0.00

Notes receivable

149,703,073.98

149,703,073.98

0.00

Accounts receivable

25,107,965,925.08

25,107,965,925.08

0.00

Receivables for financing

84,839,695.67

84,839,695.67

0.00

Prepayments

160,688,588.99

160,688,588.99

0.00

Other receivables

921,275,388.15

921,275,388.15

0.00

Including: Interests receivable

29

Hikvision 2020 Q3 Report

Item

December 31st 2019

January 1st 2020

Adjustments

Dividends receivable

2,550,000.00

2,550,000.00

0.00

Inventories

171,243,815.97

160,419,083.27

-10,824,732.70

Contract assets

10,824,732.70

10,824,732.70

Non-current assets due within one year

4,513,795.81

4,513,795.81

0.00

Other current assets

23,117,398.50

23,117,398.50

0.00

Total Current Assets

43,474,938,207.20

43,474,938,207.20

0.00

Non-current Assets:

Long-term receivables

681,568.43

681,568.43

0.00

Long-term equity investment

5,074,018,030.44

5,074,018,030.44

0.00

Other non-current financial assets

309,504,047.44

309,504,047.44

0.00

Fixed assets

2,831,295,145.61

2,831,295,145.61

0.00

Construction in progress

153,416,054.28

153,416,054.28

0.00

Intangible assets

188,362,883.75

188,362,883.75

0.00

Long-term deferred expenses

34,199,446.06

34,199,446.06

0.00

Deferred tax assets

126,357,792.34

126,357,792.34

0.00

Other non-current assets

21,619,464.07

21,619,464.07

0.00

Total Non-current Assets

8,739,454,432.42

8,739,454,432.42

0.00

Total Assets

52,214,392,639.62

52,214,392,639.62

0.00

Current Liabilities:

Short-term borrowings

2,001,781,388.89

2,001,781,388.89

0.00

Accounts payable

450,983,270.08

450,983,270.08

0.00

Receipts in advance

227,242,328.23

-227,242,328.23

Contract liabilities

227,242,328.23

227,242,328.23

Payroll payable

1,564,304,003.49

1,564,304,003.49

0.00

Taxes payable

796,890,945.83

796,890,945.83

0.00

Other payables

533,325,191.05

533,325,191.05

0.00

Including : Interests payable

Dividends payable

105,679,385.24

105,679,385.24

0.00

Non-current liabilities due within one year

9,539,251.98

9,539,251.98

0.00

Other current liabilities

913,534,538.26

913,534,538.26

0.00

Total Current Liabilities

6,497,600,917.81

6,497,600,917.81

0.00

Non-current Liabilities:

Long-term borrowings

3,126,200,000.00

3,126,200,000.00

0.00

Provisions

62,863,096.83

62,863,096.83

0.00

Deferred income

162,018,728.45

162,018,728.45

0.00

Other non-current liabilities

1,234,739,326.10

1,234,739,326.10

0.00

30

Hikvision 2020 Q3 Report

Item

December 31st 2019

January 1st 2020

Adjustments

Total non-current liabilities

4,585,821,151.38

4,585,821,151.38

0.00

Total liabilities

11,083,422,069.19

11,083,422,069.19

0.00

Owners' Equity

Share capital

9,345,010,696.00

9,345,010,696.00

0.00

Capital reserves

4,064,833,739.52

4,064,833,739.52

0.00

Less: Treasury shares

2,148,273,864.36

2,148,273,864.36

0.00

Surplus reserves

4,672,505,348.00

4,672,505,348.00

0.00

Retained earnings

25,196,894,651.27

25,196,894,651.27

0.00

Total owners' equity

41,130,970,570.43

41,130,970,570.43

0.00

Total liabilities and owners' equity

52,214,392,639.62

52,214,392,639.62

0.00

31

Hikvision 2020 Q3 Report

  1. Description of retrospective adjustment to prior comparative data for the implementation of the new revenue standard since 2020.
    Applicable Inapplicable

Consolidated Balance Sheet

Unit: RMB

Book value presented

Book value presented

according to former revenue

Reclassification

according to the New

standards on December 31st

Revenue Standard on

2019

January 1st 2020

Accounts receivable (Note 1)

21,307,927,200.28

-34,962,617.72

21,272,964,582.56

Inventories (Note 1)

11,267,986,843.11

-511,959,250.70

10,756,027,592.41

Contract assets (Note 1)

546,921,868.42

546,921,868.42

Other non-current assets-

Completed but unsettled assets

751,457,739.44

-751,457,739.44

formed by construction contracts

(Note 1)

Other non-currentassets-contract

751,457,739.44

751,457,739.44

assets (Note 1)

Receipts in advance (Note 2)

1,020,989,460.61

-1,020,989,460.61

Contract liabilities (Note 2)

1,128,239,007.61

1,128,239,007.61

Deferred income (Note 2)

333,589,831.30

-107,249,547.00

226,340,284.30

Note1: The construction contracts undertaken by the Group were performance obligations to be fulfilled over a period of time, and the Group recognized revenue based on the progress of fulfillment of the contract. The amount of revenue recognized by the Group based on the progress of fulfillment of the project in excess of the processed settlement amounts for contracts in progress is reclassified as contract assets. Accordingly, as at January 1st 2020, the Group's completed but unsettled assets of RMB 1,263,416,990.14 and accounts receivable of RMB 34,962,617.72 formed by construction contracts previously presented under inventory and other non-current assets were reclassified as contract assets, of which the amounts expected to be to be collected in more than one year were presented under other non-current assets.

Note 2Receipts in advance received by the Group for sales of goods and services rendered were reclassified as contract liabilities as at January 1st 2020. The Group's obligations to provide services to customers in consideration for the provision of cloud storage and other services were reclassified to contract liabilities as at January 1st 2020.

32

Hikvision 2020 Q3 Report

Balance Sheet of the Parent Company

Unit: RMB

Book value presented

Book value presented

according to former revenue

Reclassification

according to the New

standards on December 31st

Revenue Standards on

2019

January 1st 2020

Inventories (Note 1)

171,243,815.97

-10,824,732.70

160,419,083.27

Contract assets (Note 1)

10,824,732.70

10,824,732.70

Receipts in advance (Note 2)

227,242,328.23

-227,242,328.23

Contract liabilities (Note 2)

227,242,328.23

227,242,328.23

Note1: The construction contracts undertaken by the Company were performance obligations to be fulfilled over a period of time, and the Company recognized revenue based on the progress of fulfillment of the contract. The amount of revenue recognized by the Company based on the progress of fulfillment of the project in excess of the processed settlement amounts for contracts in progress is reclassified as contract assets. Accordingly, as at January 1st 2020, the Company's completed but unsettled assets of RMB 10,824,732.70 from construction contracts previously presented under inventory were reclassified as contract assets.

Note 2Receipts in advance received by the Company for the sales of goods and services rendered were reclassified to contract liabilities as at January 1st 2020.

33

Hikvision 2020 Q3 Report

4.3 Audit Report

Whether audit has been performed on this 2020 3rd Quarter Report □ Yes √ No

The Company's 2020 3rd Quarter report has not been audited

HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.

Chairman: Chen Zongnian

October 24th 2020

Note: This document is a translated version of the Chinese version 2020 Q3 Financial Report ("2020 年第三季度报告全文"), and the published 2020 Q3 report in the Chinese version shall prevail. The complete published Chinese 2020 Q3 Financial Report may be obtained at http://www.cninfo.com.cn.

34

Disclaimer

Hangzhou Hikvision Digital Technology Co. Ltd. published this content on 28 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2020 09:19:08 UTC


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Sales 2020 62 755 M 9 705 M 9 705 M
Net income 2020 13 545 M 2 095 M 2 095 M
Net cash 2020 21 015 M 3 250 M 3 250 M
P/E ratio 2020 41,8x
Yield 2020 1,19%
Capitalization 566 B 87 388 M 87 553 M
EV / Sales 2020 8,69x
EV / Sales 2021 7,17x
Nbr of Employees 40 403
Free-Float 37,2%
Chart HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
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Technical analysis trends HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 19
Average target price 44,18 CNY
Last Close Price 60,59 CNY
Spread / Highest target 13,8%
Spread / Average Target -27,1%
Spread / Lowest Target -47,2%
EPS Revisions
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Yang Zhong Hu General Manager & Executive Director
Zong Nian Chen Chairman
Hui Fang Cheng Chairman-Supervisory Board
Yan Jin Chief Financial Officer & Deputy General Manager
Hong Jia Gong Vice Chairman
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