HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2019 Quarter 3 Report
July to September 2019
October 19th 2019
Hikvision 2019 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 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
department (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 2019 Q3 Financial Report (“2019 年第
三季度报告全文”), and the published Q3 report in the Chinese version shall prevail. The complete
published Chinese 2019 Q3 Financial Report may be obtained at http://www.cninfo.com.cn.
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Hikvision 2019 Q3 Report
Section II Corporate Profile
I. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of the previous accounting data
√ Yes □No
Change(%) between December 31st 2018 and
At December 31st 2018
At September 30th 2019 September 30th 2019
Before adjustments After adjustments After adjustments
Total assets (RMB) 68,288,828,836.24 63,484,352,233.42 63,465,019,931.22 7.60%
Net assets attributable to shareholders of
40,439,398,048.74 37,590,154,638.46 37,567,728,835.78 7.64%
the Company (RMB)
YoY Change(%) between YoY Change(%) between 2018 Q1~Q3 and
2018 Q3 2018 Q1~Q3
2019 Q3 2018 Q3 and 2019 Q3 2019 Q1~Q3 2019 Q1~Q3
Before adjustments After adjustments After adjustments Before adjustments After adjustments After adjustments
Operating income (RMB) 15,915,642,804.35 12,926,932,976.48 12,926,932,976.48 23.12% 39,838,916,228.85 33,802,691,201.11 33,802,691,201.11 17.86%
Net profits attributable to shareholders of
3,248,407,615.14 3,248,407,615.14 17.31% 8,027,334,165.13 7,395,803,151.00 7,395,803,151.00 8.54%
the Company (RMB) 3,810,578,954.89
Net profits attributable to shareholders of
the Company excluding non-recurring 3,667,114,061.94 3,142,725,705.56 3,142,725,705.56 16.69% 7,789,309,590.97 7,151,996,666.81 7,151,996,666.81 8.91%
gains and losses (RMB)
Net cash flows from operating activities
555,379,028.58 4,267,464,655.50 4,267,464,655.50 -86.99% 124,315,235.40 2,646,271,297.50 2,646,271,297.50 -95.30%
(RMB)
Basic earnings per share (RMB/share) 0.400 0.357 0.357 12.04% 0.860 0.806 0.806 6.70%
Diluted earnings per share (RMB/share) 0.400 0.353 0.353 13.31% 0.860 0.804 0.804 6.97%
Weighted average Return on Equity
9.64% 10.25% 10.25% -0.61% 20.44% 23.06% 23.06% -2.62%
(ROE)
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Hikvision 2019 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) 9,345,010,696.00
Fully diluted earnings per share calculated using the latest share capital:
2019 Q3 2019 Q1~Q3
Fully diluted earnings per share (RMB/share) calculated with the latest share capital 0.408 0.859
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item January 1st –September 30th 2019
Profit or loss from disposal of non-current assets (including the write-off for the
1,199,556.27
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
284,740,071.76
government subsidy based on standard quota or quantitative continuous application
according to the state industrial policy.)
Net gains and losses from beginning of the reporting period to the merge date for the
-885,138.65
subsidiary merged involving enterprises under common control
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,
21,799,481.93
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 45,991,918.07
Less: Impact of income tax 82,768,374.18
Impact of the minority interests (after tax) 32,052,941.04
Total 238,024,574.16
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in
the , 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 2019 Q3 Report
II. Total Number of Shareholders at the end of the reporting period and Information for Top 10 Shareholders
1. Total 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 Total number of preferred shareholders (if any) whose voting rights have been
217,240 0
the reporting period recovered at the end of the reporting period
Particulars about top 10 shareholders
The number of Pledged or frozen
Share-
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 39.10% 3,653,674,956 0 Pledged 50,000,000
Gong Hongjia Overseas individual 13.43% 1,255,056,700 941,292,525 Pledged 545,030,000
Hong Kong Securities Clearing Company
Overseas corporation 6.38% 595,977,036 0 -
Ltd.(HKSCC)
Xinjiang Weixun Investment Management Limited Domestic non-state-owned
4.82% 450,795,176 0 Pledged 127,612,000
Partnership corporation
Domestic non-state-owned
Xinjiang Pukang Investment Limited Partnership 1.95% 182,510,174 0 Pledged 37,200,000
corporation
Hu Yangzhong Domestic Individual 1.95% 182,186,477 136,639,858 Pledged 109,310,468
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 1.04% 96,903,225 0 -
Central Huijin Investment Ltd. Domestic State-owned corporation 0.70% 65,818,800 0 -
Guo Minfang Domestic Individual 0.42% 39,474,700 0 -
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Hikvision 2019 Q3 Report
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
Type of shares
Number of common shares without trading restrictions held at the
Name of shareholder
period-end Type Number
China Electronics Technology HIK Group Co., Ltd. 3,653,674,956 RMB ordinary shares 3,653,674,956
Hong Kong Securities Clearing Company RMB ordinary shares
595,977,036 595,977,036
Ltd.(HKSCC)
Xinjiang Weixun Investment Management Limited
450,795,176 450,795,176
Partnership
Gong Hongjia 313,764,175 RMB ordinary shares 313,764,175
Xinjiang Pukang Investment Limited Partnership 182,510,174 RMB ordinary shares 182,510,174
The 52nd Research Institute at China Electronics RMB ordinary shares
180,775,044 180,775,044
Technology Group Co. Ltd.
CITIC Securities Company Limited 96,903,225 RMB ordinary shares 96,903,225
Central Huijin Investment Ltd. 65,818,800 RMB ordinary shares 65,818,800
Hu Yangzhong 45,546,619 RMB ordinary shares 45,546,619
Guo Minfang 39,474,700 RMB ordinary shares 39,474,700
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,
Explanation on associated relationship and concerted domestic individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang Pukang
actions among above shareholders Investment 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 2019 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 2019 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 September 30th Balance at January 1st YoY change
Item Note of Changes
2019 (RMB) 2019 (RMB) (%)
Accounts receivable 22,263,835,274.52 16,619,441,281.18 33.96%
Long-term receivalbes 938,509,869.57 705,512,368.17 33.03% Increase as sales revenue grows
Receipts in advance 845,999,565.36 641,430,490.22 31.89%
Bank acceptance bills endorsed for
Receivables for financing 1,198,257,901.65 2,247,357,583.28 -46.68%
payment
Prepayments 698,836,396.28 460,304,219.65 51.82%
Inventories 9,844,634,655.15 5,725,104,153.41 71.96% Increase in stock-ups
Notes payable 1,082,080,179.53 463,479,760.54 133.47%
Increase in construction investment
on Chengdu Science and Technology
Construction in process 658,376,204.58 416,092,413.42 58.23%
Base and Chongqing Science and
Technology Base
Increase in foreign currency loans for
Long-term borrowings 4,530,620,000.00 440,000,000.00 929.69%
long-term asset investment
Other payables 880,158,563.93 2,953,454,987.95 -70.20% The shares for 2018 Restricted
Incentive Stock Scheme were granted,
Other current liabilities 2,299,380,825.08 364,984,759.94 529.99%
and the investment funds were
Share capital 4,225,822,036.36 1,960,939,660.52 115.50% converted into share capital and
capital reserve, which led to a
decrease in other payables and an
increase in capital reserve. Other
Treasury shares 2,299,380,825.08 364,984,759.94 529.99% current liabilities and treasury shares
increased according to the increase in
the number of shares subject to sale
restrictions.
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Hikvision 2019 Q3 Report
1.2 Explanation for variations in income statement items
YoY Change
Item 2019 Q1~Q3 (RMB) 2018 Q1~Q3 (RMB) Note of changes
(%)
Continue to increase investments in
R&D expenses 4,007,277,010.81 3,077,722,956.20 30.20%
R&D
Increase in foreign exchange gains
Financial expense -626,571,624.15 -367,680,813.03 -70.41%
subject to exchange rate fluctuations.
1.3 Explanation for variations in cash flow statement items
YoY
Item 2019 Q1~Q3 (RMB) 2018 Q1~Q3 (RMB) Note of changes
Change (%)
Net cash flows from Increase in stock-ups in the current
124,315,235.40 2,646,271,297.50 -95.30%
operating activities reporting period
The previous bank's
Net cash flows from principal-guaranteed wealth
-1,257,968,335.26 1,296,366,271.60 -197.04%
investing activities management investment was
withdrawn
Due to the current EURO debt
Net cash flows from
-4,477,259,135.63 -2,606,239,170.94 -71.79% repayment and the increase in
financing activities
distribution of dividends
2. Progress and influence of significant events, analysis and explanation of corresponding
solutions.
□ Applicable √ Inapplicable
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.
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Hikvision 2019 Q3 Report
4. Guidance on the Company’s 2019 full year operational results.
The estimated year-over-year change (%) range of the net profits attributable to shareholders of the Company for
2019 is from 5% to 20%.
5. Financial Assets measured at fair value
√ Applicable □ Inapplicable
Unit: RMB
Amount
Current Accumulated
Purchase sold
profits or fair value Cumulative
Initial during the during Source of
Category losses on the changes investment Closing balance
investment cost reporting the funds
changes in included in income
period reporting
fair value equity
period
Derivative Company's
1,013,306,062.25 -1,573,852.92 318,303,388.25 8,769,414.59 369,559.03
instruments own funds
Other Company's
non-current
290,966,813.00 12,788,786.31 2,884,220.00 306,639,819.31 own funds
financial
assets
Receivables Company's
2,247,357,583.28 15,490,388.65
for financing 1,198,257,901.65 own funds
Total 3,551,630,458.53 11,214,933.39 15,490,388.65 321,187,608.25 8,769,414.59 1,505,267,279.99 --
6. Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
No such case in the reporting period.
7. 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.
8. Entrusted financial management
□Applicable √ Inapplicable
No such case in the reporting period.
9. Schedule for the reception activities including research, communication and interviews
during the report period
√ Applicable □ Inapplicable
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Hikvision 2019 Q3 Report
9.1 Reception of research activities during 2019 Q3
Type of reception
Time of reception Method of reception Index of basic situation of the research
object
Performance Institutional and CNINF, Investor Relations Activity Record: July
July 20th 2019
Result-Conference Call individual investors 20th 2019
From July 22nd 2019 to August Site Research and Institutional CNINF, Investor Relations Activity Record: From
2nd 2019 telephone communication investors July 22nd 2019 to August 2nd 2019
From August 5th 2019 to August Site Research and Institutional CNINF, Investor Relations Activity Record: From
16th 2019 telephone communication investors August 5th 2019 to August 16th 2019
From August 19th 2019 to Site Research and Institutional CNINF, Investor Relations Activity Record: From
September 9th 2019 telephone communication investors August 19th 2019 to September 9th 2019
From September 10th 2019 to Site Research and Institutional CNINF, Investor Relations Activity Record: From
September 23rd 2019 telephone communication investors September 10th 2019 to September 23rd 2019
9.2 Participation of conferences for investor relationship activities during 2019 Q3
Time of Type of reception
Location Conference Name Method of reception
conference object
July 2019 Tokyo Daiwa Hong Kong China Investment All kinds of One-on-One, One-on-multi, small group
Seminar Tokyo 2019 investors Meetings, and etc.
July 2019 Shanghai Guotai Junan Information Industry All kinds of One-on-One, One-on-multi, small group
Summit investors Meetings, and etc.
July 2019 Hongkong-Taiwan Hongkong Taiwan NDR-via HSBC All kinds of One-on-One, One-on-multi, small group
investors Meetings, and etc.
September Taipei Credit Suisse Asian Technology All kinds of One-on-One, One-on-multi, small group
2019 Conference investors Meetings, and etc.
September Paris-Stockholm Europe NDR-Via CICC All kinds of One-on-One, One-on-multi, small group
2019 investors Meetings, and etc.
September London CICC Forum (UK) 2019 All kinds of One-on-One, One-on-multi, small group
2019 investors Meetings, and etc.
September Suzhou Citic Securities Thematic Investment All kinds of One-on-One, One-on-multi, small group
2019 Forum--Looking for Core Assets investors Meetings, and etc.
9.3 Investor relations activity statistics during 2019 Q3
Number of daily research received (On-site and telephone conference,
64
times)
Number of institutional investors received (ppl) 946
Number of individual investors received (ppl) 12
Number of investor relations conference participated 7
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Hikvision 2019 Q3 Report
Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
Prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
September 30th 2019
Unit: RMB
Item September 30th 2019 January 1st 2019
Current Assets:
Cash and bank balances 21,170,573,356.45 26,559,675,452.93
Held-for-trading financial assets 525.40 1,860,050.59
Notes receivable 295,486,490.54 295,598,790.07
Accounts receivable 22,263,835,274.52 16,619,441,281.18
Receivables for financing 1,198,257,901.65 2,247,357,583.28
Prepayments 698,836,396.28 460,304,219.65
Other receivables 604,327,565.47 586,594,721.43
Including: Interests receivable
Dividends receivable 17,357,220.31
Inventories 9,844,634,655.15 5,725,104,153.41
Non-current assets due within one year 416,237,783.60 380,795,020.47
Other current assets 799,413,172.78 730,720,129.59
Total Current Assets 57,291,603,121.84 53,607,451,402.60
Non-current Assets:
Long-term receivables 938,509,869.57 705,512,368.17
Long-term equity investment 182,712,073.98 163,301,844.56
Other non-current financial assets 306,639,819.31 290,966,813.00
Fixed assets 5,574,963,274.09 5,082,415,160.10
Construction in progress 658,376,204.58 416,092,413.42
Intangible assets 935,308,665.25 869,913,050.09
Goodwill 267,284,401.74 212,269,337.23
Long-term deferred expenses 61,440,882.50
Deferred tax assets 601,705,744.04 534,346,941.25
Other non-current assets 1,470,284,779.34 1,582,750,600.80
Total Non-current Assets 10,997,225,714.40 9,857,568,528.62
Total Assets 68,288,828,836.24 63,465,019,931.22
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Hikvision 2019 Q3 Report
Item September 30th 2019 January 1st 2019
Current Liabilities:
Short-term borrowings 3,653,373,875.43 3,465,655,688.29
Held-for-trading financial liabilities 290,998.43
Notes payable 1,082,080,179.53 463,479,760.54
Accounts payable 10,117,196,410.23 10,301,665,725.20
Receipts in advance 845,999,565.36 641,430,490.22
Payroll payable 1,759,801,508.61 1,921,741,131.63
Taxes payable 1,564,532,913.98 1,418,921,664.57
Other payables 880,158,563.93 2,953,454,987.95
Including : Interests payable
Dividends payable 143,274,043.24 119,917,640.92
Non-current liabilities due within one year 81,429,583.47 3,178,171,147.16
Other current liabilities 2,299,380,825.08 364,984,759.94
Total Current Liabilities 22,283,953,425.62 24,709,796,353.93
Non-current Liabilities:
Long-term borrowings 4,530,620,000.00 440,000,000.00
Long-term payables 41,727,878.55
Provisions 83,507,109.84 77,625,238.49
Deferred income 334,186,881.02 293,179,089.13
Total non-current liabilities 4,990,041,869.41 810,804,327.62
Total liabilities 27,273,995,295.03 25,520,600,681.55
Owners’ Equity
Share capital 9,345,010,696.00 9,227,270,473.00
Capital reserves 4,225,822,036.36 1,960,939,660.52
Less: Treasury shares 2,299,380,825.08 364,984,759.94
Other comprehensive income -76,304,567.44 -76,065,167.67
Surplus reserves 4,460,712,358.45 4,460,712,358.45
Retained earnings 24,783,538,350.45 22,359,856,271.42
Total owners' equity attributable to
40,439,398,048.74 37,567,728,835.78
owner of the Company
Minority equity 575,435,492.47 376,690,413.89
Total owners' equity 41,014,833,541.21 37,944,419,249.67
Total liabilities and owners' equity 68,288,828,836.24 63,465,019,931.22
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 2019 Q3 Report
2. Balance Sheet of the Parent Company
Unit: RMB
Item September 30th 2019 January 1st 2019
Current Assets:
Cash and bank balances 15,592,582,543.73 19,192,461,228.22
Notes receivable 5,982,155.46 121,404,793.77
Accounts receivable 23,425,928,122.32 15,204,519,161.71
Receivables for financing 96,303,923.54 228,210,299.95
Prepayments 118,454,356.84 132,344,929.55
Other receivables 1,527,682,843.72 522,987,955.34
Including: Interests receivable
Dividends receivable 19,907,220.31 2,550,000.00
Inventories 138,631,630.98 168,885,723.93
Non-current liabilities due within one year 7,413,343.79
Other current assets 26,742,647.34 93,661,315.14
Total Current Assets 40,939,721,567.72 35,664,475,407.61
Non-current Assets:
Long-term receivables 1,025,843.03
Long-term equity investment 4,810,090,414.55 4,361,147,395.90
Other non-current financial assets 303,745,599.31 290,956,813.00
Fixed assets 2,867,764,981.55 2,844,176,300.34
Construction in progress 93,057,845.99 65,156,482.70
Intangible assets 196,367,070.52 197,147,608.73
Long-term deferred expenses 30,280,331.17
Deferred tax assets 134,005,079.74 221,779,547.02
Other non-current assets 10,314,513.26 14,601,579.55
Total Non-current Assets 8,446,651,679.12 7,994,965,727.24
Total Assets 49,386,373,246.84 43,659,441,134.85
Current Liabilities:
Short-term borrowings 600,000,000.00
Accounts payable 310,445,377.57 356,787,605.91
Receipts in advance 228,294,965.91 204,337,524.21
Payroll payable 1,289,630,946.65 1,272,626,004.95
Taxes payable 1,113,797,730.35 987,057,652.70
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Hikvision 2019 Q3 Report
Other payables 3,421,127,887.72 2,529,600,057.31
Including : Interests payable
Dividends payable 140,824,043.24 117,467,640.92
Non-current liabilities due within
3,172,727,888.37
one year
Other current liabilities 2,299,380,825.08 364,984,759.94
Total Current Liabilities 9,262,677,733.28 8,888,121,493.39
Non-current Liabilities:
Long-term borrowings 3,101,520,000.00
Provisions 61,415,503.32 52,956,535.09
Deferred Income 182,057,460.95 186,747,708.01
Total non-current liabilities 3,344,992,964.27 239,704,243.10
Total liabilities 12,607,670,697.55 9,127,825,736.49
Owners’ Equity
Share capital 9,345,010,696.00 9,227,270,473.00
Capital reserves 4,171,716,829.11 1,883,262,407.46
Less: Treasury shares 2,299,380,825.08 364,984,759.94
Other comprehensive income -774,633.17 -2,178,538.52
Surplus reserves 4,460,712,358.45 4,460,712,358.45
Retained earnings 21,101,418,123.98 19,327,533,457.91
Total owners' equity 36,778,702,549.29 34,531,615,398.36
Total liabilities and owners' equity 49,386,373,246.84 43,659,441,134.85
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 2019 Q3 Report
3. Consolidated Income Statement
Unit: RMB
Item 2019 Q3 2018 Q3
I. Total operating income 15,915,642,804.35 12,926,932,976.48
II．Total operating costs
Including：Total operating costs 8,496,804,444.94 7,036,005,384.29
Business taxes and surcharges 96,963,076.85 104,050,722.65
Selling expenses 1,940,139,966.75 1,526,549,345.93
Administrative expenses 446,580,701.06 369,444,844.78
Research and Development (R&D) expenses 1,502,476,961.10 1,165,040,356.96
Financial expenses -496,628,196.89 -209,159,495.22
Including：Interest expenses 74,410,747.56 69,037,602.29
Interest income 161,426,059.65 121,478,786.49
Add: Other Income 580,970,230.04 579,805,136.62
Investment income (loss) 8,327,642.30 -17,084,846.81
Including: Investment gains (losses) in associated
5,825,385.04 -4,156,308.97
enterprise and joint-venture enterprise
Gains (losses) from changes in fair values 9,348,538.93 11,293,693.95
Credit impairment losses (“-“) -144,256,060.56
Impairment losses (“-“) of assets -69,340,091.15 -138,919,268.98
Asset disposal income (loss) 389,512.37 208,920.36
III. Operating profit (loss) 4,314,745,622.47 3,370,305,452.23
Add: Non-operating income 20,153,328.90 42,218,791.84
Less: Non-operating expenses 3,644,173.04 2,129,007.88
IV. Total profit (loss) 4,331,254,778.33 3,410,395,236.19
Less: Income tax expenses 460,924,198.11 170,291,201.09
V. Net profit (loss) 3,870,330,580.22 3,240,104,035.10
4.1 Classification by operation continuity
(a) Net profit (loss) on continuous operation 3,870,330,580.22 3,240,104,035.10
(b) Net profit (loss) on terminated operation
4.2 Classification by attribution of ownership
(a) Net profit attributable to owners of parent company 3,810,578,954.89 3,248,407,615.14
(b) Profit or loss attributable to minority shareholders 59,751,625.33 -8,303,580.04
VI. Other comprehensive income, net of income tax -5,267,606.68 -12,993,816.04
Other comprehensive income attributable to owners of the
-5,162,206.61 -12,822,856.59
Company, net of tax
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Hikvision 2019 Q3 Report
Item 2019 Q3 2018 Q3
(I) Items that will not be reclassified subsequently to profit or
loss
1. Changes in re-measurement of defined benefit obligation
2. Amounts of other comprehensive income that cannot be
transferred into profit or loss under equity method
3. Changes in fair value of other equity instruments investment
4. Changes in the fair value of the Company's own credit risk
5.Others
(II) Other comprehensive income to be reclassified to profit or
-5,162,206.61 -12,822,856.59
loss in subsequent periods
1. Amounts of other comprehensive income that are able to
be transferred into profit or loss under equity method
2. Changes in fair value of other debt investments
3. Gain or losses attributes to the changes in fair value of
available-for-sale financial assets
4. The amount of financial assets reclassified into other
comprehensive income
5. Gains or losses through reclassifying held-to-maturity
financial assets to available-for-sale financial assets
6. Credit impairment provisions for other credit investment
7. Cash flow hedge reserve
8. Exchange differences arising on conversion of financial
-6,527,620.17 -12,822,856.59
statements denominated in foreign currencies
9. Gains and losses from changes in fair value of other
1,365,413.56
current assets
Other comprehensive income attributable to minority interests,
-105,400.07 -170,959.45
net of tax
VII. Total comprehensive income 3,865,062,973.54 3,227,110,219.06
Total comprehensive income attributable to owners of the parent
3,805,416,748.28 3,235,584,758.55
company
Total comprehensive income attributable to minority
59,646,225.26 -8,474,539.49
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.400 0.357
(II) Diluted earnings per share 0.400 0.353
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 2019 Q3 Report
4. Income Statement of the Parent Company
Unit: RMB
Item 2019 Q3 2018 Q3
I. Total operating income 6,920,272,660.94 6,326,855,356.62
Less: Total operating Cost 2,180,260,453.52 1,806,308,761.49
Business taxes and surcharges 67,760,722.14 76,813,412.34
Selling expenses 852,081,852.19 722,750,073.68
Administrative expenses 184,623,515.65 178,443,955.39
Research and Development (R&D) expenses 1,095,442,523.12 704,150,930.84
Financial expenses -361,435,536.59 -85,249,908.65
Including : Interest expenses 6,808,200.57 35,733,846.62
Interest income 124,514,655.05 101,754,084.35
Add: Other income 434,811,042.75 463,491,035.44
Investment income (loss) 2,102,615.50 18,078,624.24
Including: Investment gain (loss) in associated
2,102,615.50 -2,018,558.50
enterprise and joint-venture enterprise
Gains (losses) from changes in fair values 10,635,547.81
Credit impairment losses (“-“) -30,515,452.66
Impairment losses (“-“) of assets 1,753,720.58 298,410.00
Asset disposal income (loss) 10,098.01 62,691.36
II. Operating profit (loss) 3,320,336,702.90 3,405,568,892.57
Add: Non-operating income 4,577,655.07 14,684,291.45
Less: Non-operating expenses 1,684,190.05 281,527.25
III. Total profit (loss) 3,323,230,167.92 3,419,971,656.77
Less: Income tax expenses 151,477,969.94 87,517,500.57
IV. Net profit (loss) 3,171,752,197.98 3,332,454,156.20
(a) Net profit (loss) on continuous operation 3,171,752,197.98 3,332,454,156.20
(b) Net profit (loss) on terminated operation
V. Other comprehensive income, net of income tax -1,937,862.58
(I) Items that will not be reclassified subsequently to profit or
loss
1. Changes in re-measurement of defined benefit obligation
2. Amounts of other comprehensive income that cannot be
transferred into profit or loss under equity method
3. Changes in fair value of other equity instruments investment
4. Changes in the fair value of the Company's own credit risk
5.Others
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Hikvision 2019 Q3 Report
(II) Other comprehensive income to be reclassified to profit or
-1,937,862.58
loss in subsequent periods
1. Amounts of other comprehensive income that are able to be
transferred into profit or loss under equity method
2. Changes in fair value of other debt investments
3. Gain or losses attributes to the changes in fair value of
available-for-sale financial assets
4. The amount of financial assets reclassified into other
comprehensive income
5. Gains or losses through reclassifying held-to-maturity
financial assets to available-for-sale financial assets
6. Credit impairment provisions for other credit investment
7. Cash flow hedge reserve
8. Exchange differences arising on conversion of financial
statements denominated in foreign currencies
9. Gains and losses from changes in fair value of other current
-1,937,862.58
assets
VI. Total comprehensive income 3,169,814,335.40 3,332,454,156.20
VIII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
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 2019 to September 30th 2019
Unit: RMB
Item 2019 Q1-Q3 2018 Q1-Q3
I. Total operating income 39,838,916,228.85 33,802,691,201.11
II．Total operating costs
Including：Total operating costs 21,337,310,778.62 18,622,304,210.36
Business taxes and surcharges 264,510,982.77 281,941,341.25
Selling expenses 5,153,400,075.91 4,175,942,610.35
Administrative expenses 1,177,690,944.82 960,293,296.63
Research and Development (R&D) expenses 4,007,277,010.81 3,077,722,956.20
Financial expenses -626,571,624.15 -367,680,813.03
Including：Interest expenses 167,413,125.18 131,591,884.36
Interest income 454,438,589.00 323,231,227.64
Add: Other Income 1,303,536,451.58 1,417,431,530.21
Investment income (loss) 29,551,998.27 61,182,269.35
Including: Investment gains (losses) in associated
1,610,229.42 -1,618,218.28
enterprise and joint-venture enterprise
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Hikvision 2019 Q3 Report
Item 2019 Q1-Q3 2018 Q1-Q3
Gains (losses) from changes in fair values 11,214,933.39 5,191,145.93
Credit impairment losses (“-“) -278,782,493.13
Impairment losses (“-“) of assets -149,483,833.80 -464,816,967.17
Asset disposal income (loss) 1,199,556.27 3,972,499.20
III. Operating profit (loss) 9,442,534,672.65 8,075,128,076.87
Add: Non-operating income 58,460,407.50 115,369,165.70
Less: Non-operating expenses 12,058,354.95 6,713,135.08
IV. Total profit (loss) 9,488,936,725.20 8,183,784,107.49
Less: Income tax expenses 1,394,844,854.79 836,093,959.57
V. Net profit (loss) 8,094,091,870.41 7,347,690,147.92
4.1 Classification by operation continuity
(c) Net profit (loss) on continuous operation 8,094,091,870.41 7,347,690,147.92
(d) Net profit (loss) on terminated operation
4.2 Classification by attribution of ownership
(c) Net profit attributable to owners of parent company 8,027,334,165.13 7,395,803,151.00
(d) Profit or loss attributable to minority shareholders 66,757,705.28 -48,113,003.08
VI. Other comprehensive income, net of income tax 224,061.25 -27,278,644.78
Other comprehensive income attributable to owners of the
-239,399.77 -25,721,402.30
Company, net of tax
(I) Items that will not be reclassified subsequently to profit or
loss
1. Changes in re-measurement of defined benefit obligation
2. Amounts of other comprehensive income that cannot be
transferred into profit or loss under equity method
3. Changes in fair value of other equity instruments investment
4. Changes in the fair value of the Company's own credit risk
5.Others
(II) Other comprehensive income to be reclassified to profit or
-239,399.77 -25,721,402.30
loss in subsequent periods
1.Amounts of other comprehensive income that are able to be
transferred into profit or loss under equity method
2.Changes in fair value of other debt investments
3.Gain or losses attributes to the changes in fair value of
available-for-sale financial assets
4.The amount of financial assets reclassified into other
comprehensive income
5.Gains or losses through reclassifying held-to-maturity
financial assets to available-for-sale financial assets
6.Credit impairment provisions for other credit investment
7.Cash flow hedge reserve
8.Exchange differences arising on conversion of financial
-15,729,788.42 -25,721,402.30
statements denominated in foreign currencies
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Hikvision 2019 Q3 Report
Item 2019 Q1-Q3 2018 Q1-Q3
9.Gains and losses from changes in fair value of other current
15,490,388.65
assets
Other comprehensive income attributable to minority interests,
463,461.02 -1,557,242.48
net of tax
VII. Total comprehensive income 8,094,315,931.66 7,320,411,503.14
Total comprehensive income attributable to owners of the parent
8,027,094,765.36 7,370,081,748.70
company
Total comprehensive income attributable to minority
67,221,166.30 -49,670,245.56
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.860 0.806
(II) Diluted earnings per share 0.860 0.804
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 2019 to September 30th 2019
Unit: RMB
Item 2019 Q1-Q3 2018 Q1-Q3
I. Total operating income 17,354,516,639.53 15,464,499,573.18
Less: Total operating Cost 5,260,041,102.44 4,417,272,352.25
Business taxes and surcharges 179,363,153.88 199,390,389.05
Selling expenses 2,352,469,006.14 1,961,637,326.64
Administrative expenses 531,467,438.33 452,964,347.64
Research and Development (R&D) expenses 2,875,427,888.71 2,233,528,649.02
Financial expenses -436,020,048.92 -94,069,779.21
Including : Interest expenses 49,350,390.76 60,724,467.42
Interest income 392,680,476.99 288,800,852.06
Add: Other income 1,070,578,767.20 1,230,024,234.53
Investment income (loss) 19,153,543.65 86,657,634.81
Including: Investment gain (loss) in associated
-772,376.22 -387,572.76
enterprise and joint-venture enterprise
Gains (losses) from changes in fair values 12,788,786.31
Credit impairment losses (“-“) 622,905,019.26
Impairment losses (“-“) of assets 51,323,003.42 -280,144,626.30
Asset disposal income (loss) 191,846.66 3,807,041.30
II. Operating profit (loss) 8,368,709,065.45 7,334,120,572.13
Add: Non-operating income 12,793,513.71 55,046,967.74
Less: Non-operating expenses 6,921,272.37 1,137,844.51
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Hikvision 2019 Q3 Report
III. Total profit (loss) 8,374,581,306.79 7,388,029,695.36
Less: Income tax expenses 997,044,554.62 635,642,395.80
IV. Net profit (loss) 7,377,536,752.17 6,752,387,299.56
(c) Net profit (loss) on continuous operation 7,377,536,752.17 6,752,387,299.56
(d) Net profit (loss) on terminated operation
V. Other comprehensive income, net of income tax -774,633.17
(I) Items that will not be reclassified subsequently to profit or
loss
1. Changes in re-measurement of defined benefit obligation
2. Amounts of other comprehensive income that cannot be
transferred into profit or loss under equity method
3. Changes in fair value of other equity instruments investment
4. Changes in the fair value of the Company's own credit risk
5.Others
(II) Other comprehensive income to be reclassified to profit or
-774,633.17
loss in subsequent periods
1.Amounts of other comprehensive income that are able to be
transferred into profit or loss under equity method
2.Changes in fair value of other debt investments
3.Gain or losses attributes to the changes in fair value of
available-for-sale financial assets
4.The amount of financial assets reclassified into other
comprehensive income
5.Gains or losses through reclassifying held-to-maturity
financial assets to available-for-sale financial assets
6.Credit impairment provisions for other credit investment
7.Cash flow hedge reserve
8.Exchange differences arising on conversion of financial
statements denominated in foreign currencies
9.Gains and losses from changes in fair value of other current
-774,633.17
assets
VI. Total comprehensive income 7,376,762,119.00 6,752,387,299.56
VIII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
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 2019 Q3 Report
7. Consolidated Cash Flow Statement from January 1st 2019 to September 30th 2019
Unit: RMB
Item 2019 Q1-Q3 2018 Q1-Q3
I. Cash flows from operating activities:
Cash received from sale of goods or rendering of services 39,797,920,691.39 36,015,579,775.66
Receipts of tax refunds 2,205,856,683.57 2,665,907,552.39
Other cash receipts relating to operating activities 1,108,671,779.38 765,226,775.70
Sub-total of cash inflows from operating activities 43,112,449,154.34 39,446,714,103.75
Cash payments for goods purchased and services received 29,259,780,105.41 24,879,653,623.03
Cash paid to and on behalf of employees 6,690,990,896.32 5,182,379,464.21
Payments of various types of taxes 3,748,604,004.24 3,379,293,442.87
Other cash payments relating to operating activities 3,288,758,912.97 3,359,116,276.14
Sub-total of cash outflows from operating activities 42,988,133,918.94 36,800,442,806.25
Net Cash flows from Operating Activities 124,315,235.40 2,646,271,297.50
II. Cash flows from Investing Activities:
Cash receipts from recovery of investments 4,390,000,000.00
Cash receipts from investment income 10,579,222.38 63,310,521.07
Net cash receipts from disposals of fixed assets, intangible
56,062,267.50 7,061,204.25
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash receipts relating to investing activities 18,166,664.71 21,501,640.52
Sub-total of cash inflows from investing activities 84,808,154.59 4,481,873,365.84
Cash payments to acquire or construct fixed assets,
1,274,540,687.78 2,045,279,305.07
intangible assets and other long-term assets
Cash paid to acquire investments 2,884,220.00 1,100,000,000.00
Net cash paid to acquire subsidiaries and other business
65,351,582.07 31,900,000.00
units
Other cash payments relating to investing activities 8,327,789.17
Sub-total of cash outflows from investing activities 1,342,776,489.85 3,185,507,094.24
Net cash flows from Investing Activities -1,257,968,335.26 1,296,366,271.60
III. Cash flows from financing activities:
Cash receipts from capital contributions 113,220,262.15 93,009,000.00
Including: cash receipts from capital contributions
113,220,262.15 93,009,000.00
from minority owners of subsidiaries
Cash receipts from borrowings 7,150,799,943.42 6,848,374,132.18
Other cash receipts relating to financing activities
Sub-total of cash inflows from financing activities 7,264,020,205.57 6,941,383,132.18
Cash repayments of borrowings 2,826,949,887.78 4,796,975,777.05
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Hikvision 2019 Q3 Report
Cash repayments of bonds 3,079,240,000.00
Cash payments for distribution of dividends or profits or
5,808,192,337.22 4,744,090,779.74
settlement of interest expenses
Including : Dividends and profits paid by
subsidiaries to minority shareholders
Other cash payments relating to financing activities 26,897,116.20 6,555,746.33
Sub-total of cash outflows from financing activities 11,741,279,341.20 9,547,622,303.12
Net cash flows from Financing Activities -4,477,259,135.63 -2,606,239,170.94
IV. Effect of foreign exchange rate changes on Cash and
314,124,262.83 190,798,684.33
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents -5,296,787,972.66 1,527,197,082.49
Add: Opening balance of Cash and Cash Equivalents 26,031,011,733.89 16,029,185,269.17
VI. Closing Balance of Cash and Cash Equivalents 20,734,223,761.23 17,556,382,351.66
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 2019 to September 30th
2019
Unit: RMB
Item 2019 Q1-Q3 2018 Q1-Q3
I. Cash flows from Operating Activities::
Cash receipts from the sale of goods and the rendering of
12,029,215,025.03 14,907,717,914.68
services
Receipts of tax refunds 934,577,449.38 1,230,024,234.53
Other cash receipts relating to operating activities 596,615,907.62 432,099,258.49
Sub-total of cash inflows from operating activities 13,560,408,382.03 16,569,841,407.70
Cash payments for goods acquired and services received 6,141,625,941.11 5,186,391,543.22
Cash payments to and on behalf of employees 3,826,354,338.41 2,728,678,859.56
Payments of various types of taxes 2,274,516,905.16 2,515,330,361.54
Other cash payments relating to operating activities 1,374,026,139.24 1,862,352,721.51
Sub-total of cash outflows from operating activities 13,616,523,323.92 12,292,753,485.83
Net Cash flows from Operating Activities -56,114,941.89 4,277,087,921.87
II. Cash flows from Investing Activities:
Cash receipts from recovery of investments 4,350,000,000.00
Cash receipts from investment income 2,568,699.00 97,039,236.04
Net cash receipts from disposals of fixed assets, intangible
3,976,093.24 9,584,879.25
assets and other long-term assets
Net cash receipts from disposals of subsidiaries and other
5,971.53
business units
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Hikvision 2019 Q3 Report
Other cash receipts relating to investing activities 3,066,451,513.72 920,896,354.89
Sub-total of cash inflows from investing activities 3,072,996,305.96 5,377,526,441.71
Cash payments to acquire or construct fixed assets,
264,771,882.74 434,905,794.49
intangible assets and other long-term assets
Cash payments to acquire investments 1,100,000,000.00
Net cash paid to aquire subsidiaries and other business units 414,400,000.00 765,183,014.00
Other cash payments relating to investing activities 982,391,211.78 775,777,777.23
Sub-total of cash outflows from investing activities 1,661,563,094.52 3,075,866,585.72
Net Cash flows from Investing Activities 1,411,433,211.44 2,301,659,855.99
III. Cash flows from Financing Activities
Cash receipts from capital contributions
Cash receipts from borrowings 3,679,240,000.00 900,000,000.00
Other cash receipts relating to financing activities
Sub-total of cash inflows from financing activities 3,679,240,000.00 900,000,000.00
Cash repayments of borrowings 900,000,000.00
Cash repayments of bonds 3,079,240,000.00
Cash payments for distribution of dividends or profits or
5,669,311,652.85 4,668,001,510.29
settlement of interest expenses
Other cash payments relating to financing activities 26,897,116.20 6,555,746.33
Sub-total of cash outflows from financing activities 8,775,448,769.05 5,574,557,256.62
Net Cash flows from Financing Activities -5,096,208,769.05 -4,674,557,256.62
IV. Effect of foreign exchange rate changes on Cash and
140,012,598.62 100,499,959.08
Cash Equivalents
V. Net increase in cash and cash equivalents -3,600,877,900.88 2,004,690,480.32
Add: Beginning balance of cash and cash equivalents 18,998,934,287.59 12,304,082,533.11
VI. Closing Balance of Cash and Cash Equivalents 15,398,056,386.71 14,308,773,013.43
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) Adjustments to the relevant items of the financial statements at the beginning of the year due to the
implementation of the New Financial Instruments Standards, New Income Standards or New Lease
Standards since 2019.
√Applicable □Inapplicable
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Hikvision 2019 Q3 Report
Consolidated Balance Sheet
Unit: RMB
Item December 31st 2018 January 1st 2019 Adjustments
Current Assets:
Cash and bank balances 26,559,675,452.93 26,559,675,452.93 0.00
Balances with clearing agencies
Lending with banks and other financial
institutions
Held-for-trading financial assets 1,860,050.59 1,860,050.59
Financial assets at fair value through
1,860,050.59 -1,860,050.59
current profit and loss
Derivative financial assets
Notes receivable 2,569,445,189.92 295,598,790.07 -2,273,846,399.85
Accounts receivable 16,619,441,281.18 16,619,441,281.18 0.00
Receivables for financing 2,247,357,583.28 2,247,357,583.28
Prepayments 460,304,219.65 460,304,219.65 0.00
Premiums receivable
Amounts receivable under reinsurance
contracts
Reinsurer's share of insurance contract
reserves
Other receivables 586,594,721.43 586,594,721.43 0.00
Including: Interests receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 5,725,104,153.41 5,725,104,153.41 0.00
Contract assets
Held-for-sale assets
Non-current assets due within one year 380,795,020.47 380,795,020.47 0.00
Other current assets 730,720,129.59 730,720,129.59 0.00
Total Current Assets 53,633,940,219.17 53,607,451,402.60 -26,488,816.57
Non-current Assets:
Loans and advances to customers
Debt investments
Available-for-sale financial assets 290,966,813.00 -290,966,813.00
Other debt investments
Held-to-maturity investments
Long-term receivables 705,512,368.17 705,512,368.17 0.00
Long-term equity investment 163,301,844.56 163,301,844.56 0.00
Other equity investments
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Hikvision 2019 Q3 Report
Other non-current financial assets 290,966,813.00 290,966,813.00
Investment real estate
Fixed assets 5,082,415,160.10 5,082,415,160.10 0.00
Construction in progress 416,092,413.42 416,092,413.42 0.00
Productive biological assets
Oil and gas assets
Right-to-use assets
Intangible assets 869,913,050.09 869,913,050.09 0.00
Development expenditures
Goodwill 212,269,337.23 212,269,337.23 0.00
Long-term deferred expenses
Deferred tax assets 534,346,941.25 534,346,941.25 0.00
Other non-current assets 1,582,750,600.80 1,582,750,600.80 0.00
Total Non-current Assets 9,857,568,528.62 9,857,568,528.62 0.00
Total Assets 63,491,508,747.79 63,465,019,931.22 -26,488,816.57
Current Liabilities:
Short-term borrowings 3,465,655,688.29 3,465,655,688.29 0.00
Borrowings from the central bank
Capitals borrowed from banks and other
financial institutions
Held-for-trading financial liabilities 290,998.43 290,998.43
Financial liabilities at fair value through
290,998.43 -290,998.43
current profit and loss
Derivative financial liabilities
Notes payable 463,479,760.54 463,479,760.54 0.00
Accounts payable 10,301,665,725.20 10,301,665,725.20 0.00
Receipts in advance 641,430,490.22 641,430,490.22 0.00
Contract liabilities
Financial assets sold under repurchase
agreements
Customer deposits and deposits from banks
and other financial institutions
Funds from securities trading agency
Funds from underwriting securities agency
Payroll payable 1,921,741,131.63 1,921,741,131.63 0.00
Taxes payable 1,418,921,664.57 1,418,921,664.57 0.00
Other payables 2,953,454,987.95 2,953,454,987.95 0.00
Including : Interests payable
Dividends payable 119,917,640.92 119,917,640.92 0.00
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Hikvision 2019 Q3 Report
Fees and commissions payable
Amounts payable under reinsurance
contracts
Held-for-sale liabilities
Non-current liabilities due within one year 3,178,171,147.16 3,178,171,147.16 0.00
Other current liabilities 364,984,759.94 364,984,759.94 0.00
Total Current Liabilities 24,709,796,353.93 24,709,796,353.93 0.00
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings 440,000,000.00 440,000,000.00 0.00
Bonds payable
Including: Preferred share
Perpetual bond
Leasing liabilities
Long-term payables
Long-term payroll payable
Provisions 77,625,238.49 77,625,238.49 0.00
Deferred income 293,179,089.13 293,179,089.13 0.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 810,804,327.62 810,804,327.62 0.00
Total liabilities 25,520,600,681.55 25,520,600,681.55 0.00
Owners’ Equity
Share capital 9,227,270,473.00 9,227,270,473.00 0.00
Other equity instruments
Including: Preferred share
Perpetual debt
Capital reserves 1,960,939,660.52 1,960,939,660.52 0.00
Less: Treasury shares 364,984,759.94 364,984,759.94 0.00
Other comprehensive income -49,576,351.10 -76,065,167.67 -26,488,816.57
Special reserves
Surplus reserves 4,460,712,358.45 4,460,712,358.45 0.00
General risk reserve
Retained earnings 22,359,856,271.42 22,359,856,271.42 0.00
28
Hikvision 2019 Q3 Report
Total owners' equity attributable to owner
37,594,217,652.35 37,567,728,835.78 -26,488,816.57
of the Company
Minority equity 376,690,413.89 376,690,413.89 0.00
Total owners' equity 37,970,908,066.24 37,944,419,249.67 -26,488,816.57
Total liabilities and owners' equity 63,491,508,747.79 63,465,019,931.22 -26,488,816.57
Balance Sheet of the Parent Company
Unit: RMB
Item December 31st 2018 January 1st 2019 Adjustments
Current Assets:
Cash and bank balances 19,192,461,228.22 19,192,461,228.22 0.00
Balances with clearing agencies
Financial assets at fair value through
current profit and loss
Derivative financial assets
Notes receivable 351,793,632.24 121,404,793.77 -230,388,838.47
Accounts receivable 15,204,519,161.71 15,204,519,161.71 0.00
Receivables for financing 228,210,299.95 228,210,299.95
Prepayments 132,344,929.55 132,344,929.55 0.00
Other receivables 522,987,955.34 522,987,955.34 0.00
Including: Interests receivable
Dividends receivable 2,550,000.00 2,550,000.00 0.00
Inventories 168,885,723.93 168,885,723.93 0.00
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 93,661,315.14 93,661,315.14 0.00
Total Current Assets 35,666,653,946.13 35,664,475,407.61 -2,178,538.52
Non-current Assets:
Debt investments
Available-for-sale financial assets 290,956,813.00 -290,956,813.00
Other debt investments
Held-to-maturity investments
Long-term receivables
Long-term equity investment 4,361,147,395.90 4,361,147,395.90 0.00
Other equity investments
Other non-current financial assets 0.00 290,956,813.00 290,956,813.00
Investment real estate
Fixed assets 2,844,176,300.34 2,844,176,300.34 0.00
Construction in progress 65,156,482.70 65,156,482.70 0.00
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Hikvision 2019 Q3 Report
Productive biological assets
Oil and gas assets
Right-to-use assets
Intangible assets 197,147,608.73 197,147,608.73 0.00
Development expenditures
Goodwill
Long-term deferred expenses
Deferred tax assets 221,779,547.02 221,779,547.02 0.00
Other non-current assets 14,601,579.55 14,601,579.55 0.00
Total Non-current Assets 7,994,965,727.24 7,994,965,727.24 0.00
Total Assets 43,661,619,673.37 43,659,441,134.85 -2,178,538.52
Current Liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Financial liabilities at fair value through
current profit and loss
Derivative financial liabilities
Notes payable
Accounts payable 356,787,605.91 356,787,605.91 0.00
Receipts in advance 204,337,524.21 204,337,524.21 0.00
Contract liabilities
Payroll payable 1,272,626,004.95 1,272,626,004.95 0.00
Taxes payable 987,057,652.70 987,057,652.70 0.00
Other payables 2,529,600,057.31 2,529,600,057.31 0.00
Including : Interests payable
Dividends payable 117,467,640.92 117,467,640.92 0.00
Held-for-sale liabilities
Non-current liabilities due within one year 3,172,727,888.37 3,172,727,888.37 0.00
Other current liabilities 364,984,759.94 364,984,759.94 0.00
Total Current Liabilities 8,888,121,493.39 8,888,121,493.39 0.00
Non-current Liabilities:
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Leasing liabilities
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Hikvision 2019 Q3 Report
Long-term payables
Long-term payroll payable
Provisions 52,956,535.09 52,956,535.09 0.00
Deferred income 186,747,708.01 186,747,708.01 0.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 239,704,243.10 239,704,243.10 0.00
Total liabilities 9,127,825,736.49 9,127,825,736.49 0.00
Owners’ Equity
Share capital 9,227,270,473.00 9,227,270,473.00 0.00
Other equity instruments
Including: Preferred share
Perpetual debt
Capital reserves 1,883,262,407.46 1,883,262,407.46 0.00
Less: Treasury shares 364,984,759.94 364,984,759.94 0.00
Other comprehensive income -2,178,538.52 -2,178,538.52
Special reserves
Surplus reserves 4,460,712,358.45 4,460,712,358.45 0.00
Retained earnings 19,327,533,457.91 19,327,533,457.91 0.00
Total owners' equity 34,533,793,936.88 34,531,615,398.36 -2,178,538.52
Total liabilities and owners' equity 43,661,619,673.37 43,659,441,134.85 -2,178,538.52
(2) Description of retrospective adjustment to prior comparative data for the implementation of the new
financial instrument guidelines or new lease criteria from 2019
√Applicable □Inapplicable
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Hikvision 2019 Q3 Report
Consolidated Balance Sheet
Unit: RMB
Book value presented Book value presented
according to former according to the New
standard for financial Reclassification Re-measurement Standards for Financial
instruments as at Instruments as at
December 31st 2018 January 1st 2019
Financial assets held for
1,860,050.59 1,860,050.59
trading (Note 1)
Financial assets at fair value
through profit and loss of 1,860,050.59 -1,860,050.59
current period (Note 1)
Notes receivable (Note 2) 2,569,445,189.92 -2,273,846,399.85 295,598,790.07
Receivables for financing
2,273,846,399.85 -26,488,816.57 2,247,357,583.28
(Note 2)
Other comprehensive income
-49,576,351.10 -26,488,816.57 -76,065,167.67
(Note 2)
Available-for-sale financial
290,966,813.00 -290,966,813.00
assets (Note 3)
Other non-current financial
290,966,813.00 290,966,813.00
assets (Note 3)
Held-for-trading financial
290,998.43 290,998.43
liabilities (Note 4)
Financial liabilities at fair
value through profit and loss 290,998.43 -290,998.43
of current period (Note 4)
Balance Sheet of the Parent Company
Unit: RMB
Book value
Book value
presented
presented according
according to the
to former standard
Reclassification Re-measurement New Standards for
for financial
Financial
instruments as at
Instruments as at
December 31st 2018
January 1st 2019
Notes receivable (Note 2) 351,793,632.24 -230,388,838.47 121,404,793.77
Receivables for financing (Note 2) 230,388,838.47 -2,178,538.52 228,210,299.95
Other comprehensive income (Note
-2,178,538.52 -2,178,538.52
2)
Available-for-sale financial assets
290,956,813.00 -290,956,813.00
(Note 3)
Other non-current financial assets
290,956,813.00 290,956,813.00
(Note 3)
Note 1: The derivative financial assets held by the Group include forward foreign exchange contracts, foreign
exchange option contracts and interest rate swap contracts, which are not designated as hedging instruments.
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Hikvision 2019 Q3 Report
Gains or losses arising from changes in fair value of the derivative financial assets were directly recognized in
profit or loss of the current period. Financial assets measured at fair value through current profit and loss were
reclassified to held-for-trading financial assets on January 1st 2019.
Note 2: In its daily capital management, the Group endorses or discounts some of its bank acceptance notes. The
business model for managing the aforesaid notes receivable is for the purposes of obtaining contractual cash flows
and sale. Therefore, on January 1st 2019, the Group reclassified such notes receivable as financial assets at fair
value through other comprehensive income, and presented as receivables for financing.
Note 3: On January 1st 2019, some of the equity investments held by the Group were reclassified as financial
assets at fair value through profit and loss of current period and presented as other non-current financial assets.
Note 4: The derivative financial liabilities held by the Group include forward foreign exchange contracts and
foreign exchange option contracts, which are not designated as hedging instruments. Gains or losses arising from
changes in fair value of the derivative financial liabilities were directly recognized in profit or loss of the current
period. Financial liabilities measured at fair value through current profit and loss were reclassified to
held-for-trading financial liabilities on January 1st 2019.
4.3 Audit Report
Whether audit has been performed on this 2019 3rd Quarter Report
□ Yes √ No
The Company’s 2019 3rd Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
October 19th 2019
Note: This document is a translated version of the Chinese version 2019 Q3 Financial Report
(“2019 年第三季度报告全文”), and the published Q3 report in the Chinese version shall prevail.
The complete published Chinese 2019 Q3 Financial Report may be obtained at
http://www.cninfo.com.cn.
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