Hangzhou Hikvision Digital Technology : 2020 Q3 Report

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.

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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%

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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

	Unit：RMB
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

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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.

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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

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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

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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

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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.

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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

7．Major 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.

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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

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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.
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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

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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
	II．Total operating costs		14,236,690,054.68	11,986,336,953.81
	Including：Total 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)
	Including：Interest 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

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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
II．Total operating costs	33,719,184,646.63	31,313,618,168.78
Including：Total 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)
Including：Interest 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 2：Receipts 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 2：Receipts 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