Hikvision 2023 Q3 Report | |
Stock Exchange Code:002415 | Abbreviation of Securities:Hikvision |
No:2023-036 |
Hangzhou Hikvision Digital Technology Co., Ltd.
2023 3rd Quarter Report
The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or material omissions.
Important Content Notes:
- 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.
- 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 information in this report is authentic, accurate, and complete.
- Whether the 3rd quarter report has been audited
□Yes√ No
Hikvision 2023 Q3 Report
- Key Financial Data
1. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of the previous accounting data
√ Yes □ No
Reasons for retroactive adjustment or restatement of the previous accounting data √ Changes in accounting policies
Unit:RMB
YoY Change(%) | YoY Change(%) | |||||||
between 2023 | ||||||||
2022 Q3 | between 2023 Q3 | 2022 Q1~Q3 | ||||||
Q1~Q3 and 2022 | ||||||||
2023 Q3 | and 2022 Q3 | 2023 Q1~Q3 | ||||||
Q1~Q3 | ||||||||
Before the | After the | After the | Before the adjustment | After the adjustment | After the adjustment | |||
adjustment | adjustment | adjustment | ||||||
Revenue (RMB) | 23,704,377,795.74 | 22,464,020,301.15 | 22,464,020,301.15 | 5.52% | 61,275,164,193.63 | 59,721,536,891.77 | 59,721,536,891.77 | 2.60% |
Net profit attributable to | ||||||||
shareholders of the | 3,513,299,100.33 | 3,081,001,112.19 | 3,081,936,227.11 | 14.00% | 8,851,167,117.21 | 8,840,255,887.45 | 8,840,604,273.67 | 0.12% |
Company (RMB) | ||||||||
Net profit attributable to | ||||||||
shareholders of the | ||||||||
Company excluding non- | 3,425,870,315.02 | 2,879,656,597.51 | 2,880,591,712.43 | 18.93% | 8,461,998,947.98 | 8,525,515,615.02 | 8,525,864,001.24 | -0.75% |
recurring gains and losses | ||||||||
(RMB) | ||||||||
Net cash flows from | - | - | - | - | 5,913,853,480.95 | 160,117,141.04 | 160,117,141.04 | 3593.45% |
operating activities (RMB) | ||||||||
Basic earnings per share | 0.381 | 0.331 | 0.331 | 15.11% | 0.949 | 0.938 | 0.938 | 1.17% |
(RMB/share) | ||||||||
Diluted earnings per share | 0.380 | 0.331 | 0.331 | 14.80% | 0.949 | 0.938 | 0.938 | 1.17% |
Hikvision 2023 Q3 Report
(RMB/share) | ||||||||||||
Weighted average ROE | 5.05% | 4.84% | 4.84% | 0.21% | 12.59% | 13.64% | 13.64% | -1.05% | ||||
On December 31, 2022 | Change(%) between December 31, 2022 | |||||||||||
On September 30, 2023 | and September 30, 2023 | |||||||||||
Before the adjustment | After the adjustment | After the adjustment | ||||||||||
Total assets (RMB) | 127,457,393,562.08 | 119,233,282,761.47 | 119,234,602,968.11 | 6.90% | ||||||||
Net assets attributable to | ||||||||||||
shareholders of the | 71,512,727,362.29 | 68,389,154,548.76 | 68,388,671,139.78 | 4.57% | ||||||||
Company (RMB) | ||||||||||||
Reasons for changes in accounting policies and situations of correction of accounting errors Note:
The Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for Business Enterprises (the "Interpretation No. 16") on November 30, 2022. The scope of the initial recognition exemption for deferred income tax in the Accounting Standards for Business Enterprises No. 18-Income Tax was revised. Making it clear that the provisions on exemption of initial recognition of deferred income tax liabilities and deferred income tax assets in Accounting Standards for Business Enterprises No. 18-Income Taxes do not apply to single transactions that are not business combinations and do not affect either accounting profit or taxable income (or deductible losses) at the time of the transactions, nor do such provisions apply to single transactions whose assets and liabilities initially recognized result in equal taxable temporary differences and deductible temporary differences. This provision is effective as of January 1, 2023 and earlier application is permitted. The Group implemented this requirement from January 1, 2023, and accounted for individual transactions between the beginning of the earliest period in which the financial statements are presented and December 31, 2022 using the retrospective adjustment method, and restated the financial statements for the comparative period.
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)
Fully diluted earnings per share calculated using the latest share capital:
Fully diluted earnings per share (RMB/share) calculated with the latest share capital
9,330,600,931
0.949
Hikvision 2023 Q3 Report | |||
2. Items and Amounts of Non-recurring Gains and Losses | |||
√ Applicable □ Inapplicable | |||
Unit:RMB | |||
Item | Amount occurred in the current | January 1, 2023- | |
reporting period (2023 Q3) | September 30, 2023 | ||
Profit or loss from disposal of non-current assets (including the | -9,430,072.63 | -12,656,820.35 | |
write-off for the impairment provision of assets) | |||
Government subsidies included in the current profit and loss | |||
(except for government subsidies that are closely related to the | |||
Company's regular business operations, comply with national | 136,101,654.70 | 381,206,012.59 | |
policies, and those that are continuously enjoyed in accordance | |||
with a certain standard fixed or quantitative basis) | |||
Profits and losses attributed to change in fair value for held-for- | |||
trading financial assets and held-for-trading financial liabilities; | |||
and investment income from disposal of held for-trading financial | 542,193.75 | -16,295,272.07 | |
assets, held-for-trading financial liabilities, and available-for-sale | |||
financial assets, excluding the effective hedging business related to | |||
the regular business operation of the Company. | |||
The profit and loss of business combination under different control | - | 116,433,610.45 | |
realized in stages by multiple transactions | |||
Other non-operating income and expenditures except the items | 14,083,115.40 | 64,577,632.01 | |
mentioned above | |||
Less: Impact of income tax | 27,232,345.35 | 56,910,041.17 | |
Impact of the minority interests (after tax) | 26,635,760.56 | 87,186,952.23 | |
Total | 87,428,785.31 | 389,168,169.23 | |
Details of other profit and loss items that meet the definition of non-recurring profit and loss: □ Applicable √ Inapplicable
The Company does not have other specific conditions of profit and loss items that meet the definition of non- recurring profit and loss.
Explanations on classifying any non-recurring gain/loss item mentioned in the Public-Non-recurring Gains and Losses> as recurring gain/loss item.
□ Applicable √ Inapplicable
The Company does not classify any non-recurring gain/loss item mentioned in the
1 on Information Disclosure for Companies Offering Their Securities to the Public-Non-recurring Gains and Losses> as recurring gain/loss item.
Hikvision 2023 Q3 Report
3. Information and Explanation about Variations in Key Accounting Data and Financial Indicators
√Applicable □Inapplicable
3.1 Explanation for variations in balance sheet items
Balance on | Balance on | Change | ||||||||||||
Item | September 30, 2023 | December 31, 2022 | Note of Changes | |||||||||||
(%) | ||||||||||||||
(RMB) | (RMB) | |||||||||||||
Held-for-trading | 23,469,021.18 | 12,807,438.36 | 83.25% | Due to fluctuation in foreign exchange | ||||||||||
financial assets | ||||||||||||||
rate and decrease in the scale of foreign | ||||||||||||||
Held-for-trading | ||||||||||||||
4,181,387.92 | 68,299,685.57 | -93.88% | exchange hedging business | |||||||||||
financial liabilities | ||||||||||||||
Prepayments | 1,176,737,421.25 | 534,780,120.52 | 120.04% | Due to increase in prepayment for lock in | ||||||||||
part of raw material | ||||||||||||||
Other receivables | 807,450,237.15 | 516,503,485.58 | 56.33% | Increase in tax refunds receivable and | ||||||||||
etc. | ||||||||||||||
Part of the construction works that meet | ||||||||||||||
Contract assets | 1,154,739,956.62 | 2,118,223,370.98 | -45.49% | the conditions for collection are | ||||||||||
transferred to accounts receivable | ||||||||||||||
Goodwill arising from the acquisition of | ||||||||||||||
Goodwill | 397,053,077.36 | 217,386,531.28 | 82.65% | Wuhu Sensortech Intelligent Technology | ||||||||||
Ltd. | ||||||||||||||
Notes payable | 635,917,745.45 | 1,207,756,963.94 | -47.35% | Decrease in notes settlement | ||||||||||
Taxes payable | 1,844,339,050.35 | 1,234,032,138.37 | 49.46% | Increase in quarterly corporate income | ||||||||||
tax payable | ||||||||||||||
Non-current liabilities | 5,033,280,741.55 | 868,197,272.46 | 479.74% | Increase in demands for long-term | ||||||||||
due within one year | ||||||||||||||
working capital | ||||||||||||||
Long-term borrowings | 9,251,855,308.30 | 7,522,315,341.60 | 22.99% | |||||||||||
Other current liabilities | 1,451,039,846.11 | 923,721,593.78 | 57.09% | The repurchase of public outstanding | ||||||||||
Other non-current | 1,669,822,285.01 | 2,831,108,087.59 | -41.02% | |||||||||||
shares and the completion of cancellation | ||||||||||||||
liabilities | ||||||||||||||
of the third batch of 2018 Restricted | ||||||||||||||
Capital reserves | 8,312,925,536.12 | 10,141,153,435.32 | -18.03% | |||||||||||
Stock Plan | ||||||||||||||
Treasury shares | 2,737,987,226.55 | 5,316,033,650.24 | -48.50% | |||||||||||
Other comprehensive | Increase in differences of foreign | |||||||||||||
12,228,192.69 | -42,587,158.81 | 128.71% | currency statement translation due to | |||||||||||
income | ||||||||||||||
fluctuations of exchange rate | ||||||||||||||
Hikvision 2023 Q3 Report
3.2 Explanation for variations in income statement items
Items | 2023 Q1 ~ 2023 Q3 | 2022 Q1 ~ 2022 Q3 | YoY Change | Note of changes | ||||||||||
(RMB) | (RMB) | (%) | ||||||||||||
Business taxes and | 526,331,975.20 | 404,250,604.06 | 30.20% | Increase in additional taxes caused by | ||||||||||
surcharges | increase in the VAT credit | |||||||||||||
Financial expenses | -438,125,633.70 | -937,194,664.41 | 53.25% | Decrease in foreign exchange gains | ||||||||||
Decrease in investment income in | ||||||||||||||
Investment income | 39,763,080.90 | 166,250,594.06 | -76.08% | joint ventures and associates and | ||||||||||
decrease in trading gains from foreign | ||||||||||||||
exchange hedging business | ||||||||||||||
Gains from changes | 83,987,239.15 | -69,558,120.87 | 220.74% | Increase in gains from changes in fair | ||||||||||
value in foreign exchange hedging | ||||||||||||||
in fair value | ||||||||||||||
business | ||||||||||||||
3.3 Explanation for variations in cash flow statement items
Item | 2023 Q1 ~ 2023 Q3 | 2022 Q1 ~ 2022 Q3 | YoY Change | Note of changes |
(RMB) | (RMB) | (%) | ||
Net cash flows from | 5,913,853,480.95 | 160,117,141.04 | 3593.45% | Increase in inventory purchases |
operating activities | ||||
Net cash flows from | -3,439,635,132.46 | -2,623,081,074.94 | -31.13% | Increased in investment on the |
investing activities | construction of industrial parks | |||
Hikvision 2023 Q3 Report
II. Shareholder Information
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 | Total number of preferred shareholders (if any) | |||||||
354,629 | whose voting rights have been recovered at the end | 0 | ||||||
end of the reporting period | ||||||||
of the reporting period (if any) | ||||||||
Particulars about top 10 shareholders | ||||||||
Share- | The number | Pledged, marked or | ||||||
Total shares | of common | frozen | ||||||
Nature of | holding | |||||||
Name of shareholder | held at the | shares held | ||||||
shareholder | percentage | |||||||
period-end | with trading | Status | Amount | |||||
(%) | ||||||||
restrictions | ||||||||
China Electronics Technology HIK Group Co., | Domestic State- | |||||||
owned | 36.48% | 3,403,879,509 | - | Pledged | 50,000,000 | |||
Ltd. | ||||||||
corporation | ||||||||
Gong Hongjia | Overseas | 10.32% | 962,504,814 | - | Pledged | 153,026,700 | ||
individual | ||||||||
Domestic | ||||||||
Hangzhou Weixun Equity Investment | non-state- | 4.83% | 450,795,176 | - | Pledged | 18,900,000 | ||
Partnership (Limited Partnership) | owned | |||||||
corporation | ||||||||
Shanghai Perseverance Asset Management | ||||||||
Partnership (Limited Partnership) - | Other | 4.66% | 435,000,000 | - | - | - | ||
Perseverance Adjacent Mountain 1 Yuanwang | ||||||||
Fund | ||||||||
Domestic State- | ||||||||
CETC Investment Holdings Co., Ltd. | owned | 2.49% | 232,307,903 | - | - | - | ||
corporation | ||||||||
Domestic | ||||||||
Hangzhou Pukang Equity Investment | non-state- | 1.96% | 182,510,174 | - | Pledged | 48,300,000 | ||
Partnership (Limited Partnership) | owned | |||||||
corporation | ||||||||
The 52nd Research Institute at China Electronics | Domestic State- | 1.94% | 180,775,044 | - | - | - | ||
Technology Group Co. Ltd. | owned | |||||||
corporation | ||||||||
Hu Yangzhong | Domestic | 1.67% | 155,636,477 | 116,727,358 | - | - | ||
Individual | ||||||||
Domestic State- | ||||||||
Central Huijin Investment Co., Ltd. | owned | 0.69% | 64,700,691 | - | - | - | ||
corporation | ||||||||
Hong Kong Securities Clearing Company | Overseas | 0.50% | 47,002,201 | - | - | - | ||
Ltd.(HKSCC) | corporation | |||||||
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s) | ||||||||
Number of common shares | Type of shares | |||||||
Name of shareholder | without trading restrictions | |||||||
Type | Number | |||||||
held at the period-end | ||||||||
China Electronics Technology HIK Group Co., | 3,403,879,509 | RMB common shares | 3,403,879,509 | |||||
Ltd. | ||||||||
Gong Hongjia | 962,504,814 | RMB common shares | 962,504,814 | |||||
Hikvision 2023 Q3 Report
Hangzhou Weixun Equity Investment | 450,795,176 | RMB common shares | 450,795,176 |
Partnership (Limited Partnership) | |||
Shanghai Perseverance Asset Management | |||
Partnership (Limited Partnership) - | 435,000,000 | RMB common shares | 435,000,000 |
Perseverance Adjacent Mountain 1 Yuanwang | |||
Fund | |||
CETC Investment Holdings Co., Ltd | 232,307,903 | RMB common shares | 232,307,903 |
Hangzhou Pukang Equity Investment | 182,510,174 | RMB common shares | 182,510,174 |
Partnership (Limited Partnership) | |||
The 52nd Research Institute at China Electronics | 180,775,044 | RMB common shares | 180,775,044 |
Technology Group Co. Ltd | |||
Central Huijin Investment Co., Ltd. | 64,700,691 | RMB common shares | 64,700,691 |
Hong Kong Securities Clearing Company | 47,002,201 | RMB common shares | 47,002,201 |
Ltd.(HKSCC) | |||
Hu Yangzhong | 38,909,119 | RMB common shares | 38,909,119 |
China Electronics Technology HIK Group Co., Ltd., CETC Investment Holdings | |||
Co., Ltd. and The 52nd Research Institute at China Electronics Technology Group | |||
Co., Ltd. are all subject to control of China Electronics Technology Group Co. Ltd. | |||
Ms. Chen Chunmei, limited partner of Hangzhou Pukang Equity Investment | |||
Partnership (Limited Partnership), is the spouse of Mr. Gong Hongjia, overseas | |||
Explanation on associated relationship and | individual shareholder of the Company. Hu Yangzhong, domestic individual, is | ||
concerted actions among above shareholders | holding shares in both Hangzhou Weixun Equity Investment Partnership (Limited | ||
Partnership) and Hangzhou Pukang Equity Investment Partnership (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 Administration of the Takeover of Listed Companies | |||
Procedures. | |||
2. Total Number of Preferred Shareholders and Information about Top 10 Preferred Shareholders
□ Applicable √ Inapplicable
Hikvision 2023 Q3 Report
III. Significant Events
√Applicable □Inapplicable
1. During the reporting period, the Company completed the third repurchase and cancellation of the 2018 Restricted Stock Plan.
On April 13, 2023 and May 9, 2023, the 17th meeting of the 5th session of the Board of Directors, the 15th meeting of the 5th session of the Board of Supervisors and 2022 Annual General Meeting reviewed and approved the Proposal of Unlocking Conditions for the Third Unlocking Period of the 2018 Restricted Plan were not Meet and the Proposal of the Repurchase of Restricted Shares that have been Granted but not yet Unlocked. As the Company performance did not meet the unlocking conditions for the third unlocking period of the 2018 Restricted Stock Plan (Revised Draft), 33,331,858 restricted shares granted but not unlocked in the current period for all grantees of the 2018 Restricted Stock Plan were repurchased and cancelled. And the Company had completed the cancellation procedures for the above shares at the Shenzhen branch of China Securities Depository and Clearing Ltd. on July 5, 2023.
For details, please refer to The Proposal of Unlocking Conditions for the Third Unlocking Period of the 2018 Restricted Plan were not Meet and The Proposal of the Repurchase of Restricted Shares that have been Granted but not yet Unlocked (2023-021)published by the Company on www.cninfo.com.cn on April 15, 2023 and The Proposal of the Completed Cancellation of the Restricted Shares that have been Granted but not yet Unlocked for the Third Uncloking Period of the 2018 Restricted Plan (2023-028)published by the Company on www.cninfo.com.cn on July 7, 2023.
As of the end of the current reporting period, the Company has a total of 97,402,605 granted but unvested shares, accounting for 1.04% of the Company's total share capital at the end of the reporting period.
2. Matters relating to steady promotion of the spin-off of HikRobot to be listed on the SZSE ChiNext Market
On March 7, 2023, Hangzhou Hikrobot Co., Ltd. (hereinafter referred to as "HikRobot") received Notice on Accepting the Application Documents for the Initial Public Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. (SZSE Listing Review [2023] No. 252) issued by Shenzhen Stock Exchange,
Hikvision 2023 Q3 Report
and SZSE considered that application documents were completed and decided to accept. For details, please refer to the Announcement on the Application for the Initial Public Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd., a Subsidiary of the Company, is Accepted by the SZSE (Announcement No.: 2023-008) published by the Company on cninfo website (www.cninfo.com.cn) on March 8, 2023. Shenzhen Stock Exchange issed the Inquiry Letter on the Review of Application Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. (Inquiry Letter (2023) No. 010121) on March 30, 2023, and HikRobot has submitted the Reply to the Inquiry Letter on the Review of Application Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. on May 17, 2023. Shenzhen Stock Exchange issed the Second Inquiry Letter on the Review of Application Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. (Inquiry Letter (2023) No. 010218) on June 30, 2023, and HikRobot has submitted the Reply to the Second Inquiry Letter on the Review of Application Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. on July 27, 2023.
3. The Company's controlling shareholder disclosed its plan to increase its shareholding in the Company
The Company received a notice from China Electronics Technology HIK Group Co., Ltd. (hereinafter referred to as "CETHIK"), the Company's controlling shareholder, on October 16, 2023 that CETHIK intends to increase its shareholdings of the Company's shares through the trading system of the Shenzhen Stock Exchange through centralized bidding, block trading or other trading methods permitted by laws and regulations within 6 months from October 17, 2023. The total amount of the increased shareholdings will not be less than RMB200 million and not more than RMB300 million, and the proposed price of increased shareholdings shall not be higher than RMB40 per share (inclusive). The plan of increase shareholding will be implemented at the opportunity with the consideration of the fluctuation of Hikvision's stock price and the overall trend of the capital market. The Company will continue to pay attention to the relevant situation of this plan of increase shareholding in accordance with the Rules for the Listing of Stocks on the Shenzhen Stock Exchange and other relevant regulations, and fulfill its information disclosure obligations in a timely manner. For details, please refer to the Announcement on the Company's Controlling Shareholders' Plan to Increase the Company's Shareholding (2023-033) published by the Company on www.cninfo.com.cn on October 17, 2023.
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Hangzhou Hikvision Digital Technology Co. Ltd. published this content on 20 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 05:18:34 UTC.