Hikvision 2021 Q3 Report
Stock Exchange Code：002415 Abbreviation of Securities：Hikvision
No：2021-063
Hangzhou Hikvision Digital Technology Co., Ltd.
2021 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:
1. 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.
2. 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.
3. Whether the 3rd quarter report has been audited
□Yes√ No
Hikvision 2021 Q3 Report
I. 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
YoY Change(%) between 2021 Q3 and YoY Change(%) between 2021
2021 Q3 2021 Q1~Q3
2020 Q3 Q1~Q3 and 2020 Q1~Q3
Operating income (RMB) 21,727,169,122.78 22.41% 55,629,267,490.88 32.38%
Net profits attributable to shareholders of
4,484,216,504.72 17.54% 10,965,641,158.11 29.94%
the Company (RMB)
Net profits attributable to shareholders of
the Company excluding non-recurring gains 4,472,421,937.46 25.06% 10,693,898,565.44 33.01%
and losses (RMB)
Net cash flows from operating activities
—— —— 3,931,930,902.23 -28.96%
(RMB)
Basic earnings per share (RMB/share) 0.479 18.27% 1.179 29.70%
Diluted earnings per share (RMB/share) 0.479 18.27% 1.178 29.59%
Weighted average Return on Equity (ROE) 8.11% -0.23% 20.16% 2.04%
Change(%) between December 31st 2020 and September 30th
On September 30th 2021 On December 31st 2020
2021
Total assets (RMB) 96,268,052,568.60 88,701,682,384.20 8.53%
Owner’s equity attributable to shareholders
57,531,112,764.10 53,794,311,162.05 6.95%
of the Company (RMB)
Hikvision 2021 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
9,335,806,114
(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 1.1746
2. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item Amount occurred in the
January 1st 2021–
current reporting period
September 30th 2021
(2021 Q3)
Profit or loss from disposal of non-current assets (including the
4,846,203.81 3,041,161.64
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 84,531,711.49 308,873,090.93
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
3,972,241.82 49,910,473.28
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.
Other non-operating income and expenditures except the items
-34,812,593.47 -6,266,399.83
mentioned above
Less: Impact of income tax 15,675,808.43 28,165,315.45
Impact of the minority interests (after tax) 31,067,187.96 55,650,417.90
Total 11,794,567.26 271,742,592.67
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
as recurring gain/loss item.
Hikvision 2021 Q3 Report
□ Applicable √ Inapplicable
The Company does not classify any non-recurring gain/loss item mentioned in the as recurring gain/loss item.
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 YoY
Item September 30th 2021 December 31st 2020 change Note of Changes
(RMB) (RMB) (%)
Receivables for
1,290,351,491.78 1,959,601,195.25 -34.15% Decrease in note settlement
financing
Prepayments 643,627,193.21 296,334,689.86 117.20% Expansion of production and sales scale
leading to increase in procurement and
Inventories 19,053,058,705.00 11,477,906,040.70 66.00%
stocking-up
Other current assets 1,146,354,009.21 497,914,506.64 130.23% Increase in deductible VAT input
Increase in construction investments on
Construction in
2,146,413,104.92 1,425,235,193.72 50.60% Science and Technology Parks in various
progress
locations
Impact of the implementation of the new
Right-of-use assets 443,444,783.37 - 100.00%
lease standard in 2021
Changes in the scope of consolidated
Goodwill 380,499,743.04 274,203,665.20 38.77%
statements
Other non-current Increase in prepayment for land purchase
980,502,480.84 721,511,156.08 35.90%
assets for production base construction
Notes payable 640,159,568.25 1,036,920,229.85 -38.26% Decrease in note settlement
Increase in staff, compensation and
Payroll payable 3,815,796,800.58 2,877,786,430.71 32.59%
benefits
Increase in endorsed unexpired notes and
Other payables 2,589,988,357.74 1,525,053,355.95 69.83%
unpaid dividends payable
Long-term payables 9,260,090.93 39,595,459.35 -76.61% Impact of the implementation of the new
Lease liabilities 208,347,700.38 - 100.00% lease standard in 2021
Increase in government subsidies related
Deferred income 273,891,749.60 190,878,987.69 43.49%
to assets
Minority equity 1,515,431,627.92 685,432,238.49 121.09% Increase in profits of holding subsidiaries
Hikvision 2021 Q3 Report
3.2 Explanation for variations in income statement items
YoY
2021 Q1 ~ 2021 Q3 2020 Q1 ~ 2020 Q3
Items Change Note of changes
(RMB) (RMB)
(%)
Increase in market demand and
Total operating income 55,629,267,490.88 42,021,194,889.62 32.38%
expansion of sales
Total operating costs 29,854,226,905.32 21,970,833,611.78 35.88% Increase with sales revenue growth
Business taxes and
429,088,237.90 284,043,463.58 51.06% Sales growth impact
surcharges
Increase in foreign exchange gains and
Financial expenses -218,286,014.68 154,708,009.70 -241.10%
interest income
Increase in investment income from
Investment Income 219,922,536.36 124,741,116.75 76.30%
foreign exchange hedging business
Decrease in gains from changes in fair
Gains/losses from
-46,332,817.33 40,458,673.51 -214.52% value of other non-current financial
changes in fair value
assets
Credit impairment
-440,543,687.06 -209,108,587.37 -110.68% Increase in provision for bad debts
losses
Non-operating 50 million RMB donation to Henan
72,515,784.28 12,888,908.91 462.62%
expenses disaster
Profit or loss
attributable to minority 531,243,785.60 138,246,240.73 284.27% Increase in profits of holding subsidiaries
shareholders
3.3 Explanation for variations in cash flow statement items
2021 Q1 ~ 2021 Q3 2020 Q1 ~ 2020 Q3 YoY Change
Item Note of changes
(RMB) (RMB) (%)
Net cash flows from Net borrowing inflow decreased
-8,033,456,844.34 -3,556,440,059.57 -125.88%
financing activities during the current reporting period
Hikvision 2021 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 end of the reporting Total number of preferred shareholders (if any) whose voting rights have been
265,403 0
period recovered at the end of the reporting period (if any)
Particulars about top 10 shareholders
The number of Pledged, marked or frozen
Share- common
Total shares held at
Name of shareholder Nature of shareholder holding percentage shares held
the period-end Status Amount
(%) with trading
restrictions
Domestic State-
China Electronics Technology HIK Group Co., Ltd. 3,632,897,256 38.91% - Pledged 50,000,000
owned corporation
Gong Hongjia Overseas individual 962,504,814 10.31% - Pledged 108,100,000
General domestic
Xinjiang Weixun Investment Management Limited Partnership 450,795,176 4.83% - Pledged 17,810,000
corporation
Funds, wealth
Shanghai Gaoyi Asset Management Partnership (Limited Partnership) -
management products, 215,000,000 2.30% - - -
Gaoyi Adjacent Mountain 1 Yuanwang Fund
etc.
General domestic
Xinjiang Pukang Investment Limited Partnership 182,510,174 1.95% - Pledged 75,880,000
corporation
The 52nd Research Institute at China Electronics Technology Group Domestic State-
180,775,044 1.94% - - -
Corporation owned corporation
Hu Yangzhong Domestic Individual 155,246,477 1.66% 136,639,858 - -
Funds, wealth
Bank of China Co., Ltd. - Efunds Blue Chip Select Hybrid Securities
management products, 124,000,000 1.33% - - -
Investment Fund
etc.
Domestic State-
Shenwan Hongyuan Securities Company Limited 90,640,562 0.97% - - -
owned corporation
Hong Kong Securities Clearing Company Ltd.(HKSCC) Overseas corporation 76,827,419 0.82% - - -
Hikvision 2021 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
Name of shareholder
restrictions held at the period-end Type Number
China Electronics Technology HIK Group Co., Ltd. 3,632,897,256 RMB ordinary shares 3,632,897,256
Gong Hongjia 962,504,814 RMB ordinary shares 962,504,814
Xinjiang Weixun Investment Management Limited Partnership 450,795,176 RMB ordinary shares 450,795,176
Shanghai Gaoyi Asset Management Partnership (Limited Partnership) -
215,000,000 RMB ordinary shares 215,000,000
Gaoyi Adjacent Mountain 1 Yuanwang Fund
Xinjiang Pukang Investment Limited Partnership 182,510,174 RMB ordinary shares 182,510,174
The 52nd Research Institute at China Electronics Technology Group
180,775,044 RMB ordinary shares 180,775,044
Co. Ltd.
Bank of China Co., Ltd. - Efunds Blue Chip Select Hybrid Securities
124,000,000 RMB ordinary shares 124,000,000
Investment Fund
Shenwan Hongyuan Securities Company Limited 90,640,562 RMB ordinary shares 90,640,562
Hong Kong Securities Clearing Company Ltd.(HKSCC) 76,827,419 RMB ordinary shares 76,827,419
Central Huijin Investment Ltd. 65,818,800 RMB ordinary shares 65,818,800
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, overseas individual
Explanation on associated relationship and concerted actions among shareholder of the Company. Hu Yangzhong, domestic individual, is holding shares in both Xinjiang Weixun
above shareholders Investment Management Limited Partnership and Xinjiang Pukang 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.
Hikvision 2021 Q3 Report
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable √ Inapplicable
Hikvision 2021 Q3 Report
III. Significant Events
√Applicable □Inapplicable
On January 8th 2021, the Proposal on the Spin-off of the Subsidiary Hangzhou EZVIZ Network Co., Ltd. to be
Listed on the Science and Technology Innovation Board (SSE STAR) and other related proposals were deliberated
and adopted by the 21st Meeting of the fourth session of the Board of Directors and the 18th Meeting of the fourth
session of the Board of Supervisors of the Company. On June 23rd 2021, the Proposal on the Overall Restructuring
of the Company’s Holding Subsidiary Hangzhou EZVIZ Network Co., Ltd. as Limited Liability Company by Shares
was deliberated and adopted by the 3rd Meeting of the Strategy Committee in 2021 of the fifth session of the Board
of Directors of the Company. On June 24th 2021, EZVIZ Network as a whole was restructured and changed to a
limited liability company by shares. On July 2nd 2021, Zhejiang Securities Regulatory Bureau of China Securities
Regulatory Commission accepted the application filed by EZVIZ Network for initial public offering of A-shares
and pre-listing counseling for listing on the Science and Technology Innovation Board. On August 10th 2021, the
fourth meeting of the fifth board of directors of the Company and the fourth meeting of the fifth board of supervisors
reviewed and approved the Proposal (Revised Draft) on the Spin-off of the Subsidiary Hangzhou EZVIZ Network
Co., Ltd. to be listed on the Science and Technology Innovation Board (SSE STAR) and other related proposals. On
September 27th 2021, the Company's 2021 second extraordinary general meeting of shareholders reviewed and
approved the Proposal (Revised Draft) on the Spin-off of the Subsidiary Hangzhou EZVIZ Network Co., Ltd. to be
listed on the Science and Technology Innovation Board (SSE STAR) and other related proposals.
On July 16th 2021, the Company received a notice from the Hangzhou Haikang Intelligent Industrial Equity
Investment Fund Partnership (L.P.) (hereinafter referred to as "Haikang Intelligent Fund") that the Company
participated in the establishment. After the unanimous decision of all partners, the limited partners CETHIK Group
Co., Ltd. (hereinafter referred to as "CETHIK") transferred its RMB one million equity share of Haikang Intelligent
Fund to CETHIK (Hangzhou) Equity Investment Management Co., Ltd. (hereinafter referred to as "CETHIK Equity
Investment"). After the completion of the transfer, CETHIK Equity Investment will become the general partner of
Haikang Intelligent Fund, holding 0.10% of the equity of Haikang Intelligent Fund; the original general partner
CETC Fund Management Co., Ltd. will withdraw from Haikang Intelligent Fund; the total capital contribution
subscribed by Haikang Intelligent Fund has become RMB one billion. All partners re-signed the Hangzhou Haikang
Intelligent Industry Equity Investment Fund Partnership (Limited Partnership) Partnership Agreement and the
Hikvision 2021 Q3 Report
Supplementary Agreement on July 16th 2021. Haikang Intelligent Fund completed the industrial and commercial
change registration on July 16th 2021, completed the private equity investment fund change filing procedures on
August 10th 2021, and obtained the Private Investment Fund Filing Certificate.
On July 23rd 2021, the third meeting of the fifth board of directors of the Company deliberated and approved
the Proposal on External Donations to Support Emergency Rescue and Disaster Relief, agreeing to donate RMB 50
million to the Zhengzhou Red Cross, and authorizing the Company’s management team to organize the
implementation of donations according to the actual situation. The above donation was completed on July 23rd 2021.
On August 10th 2021, the fourth meeting of the Company's fifth board of directors reviewed and approved the
Proposal on the Investment and Construction of the EZVIZ Intelligent Manufacturing (Chongqing) Base Project by
the Holding Subsidiary, and agreed that Hangzhou EZVIZ Network Co., Ltd. (hereinafter referred to as "EZVIZ
Network"), an innovative business and holding subsidiary of the Company, will invest RMB 1.85 billion with self-
raised funds to build the EZVIZ Intelligent Manufacturing (Chongqing) Base Project (hereinafter referred to as the
"EZVIZ Chongqing Project" ). Chongqing EZVIZ Electronics Co., Ltd. (hereinafter referred to as "Chongqing
EZVIZ Electronics"), a wholly-owned subsidiary of EZVIZ Networks, is the undertaking company of the above
project. On August 23rd 2021, the fourth meeting of the strategy committee of the fifth board of directors of the
Company in 2021 deliberated and approved the Proposal on New Investment in the EZVIZ Intelligent Manufacturing
(Chongqing) Base Project by the Company’s Holding Subsidiary, and agreed EZVIZ Network to invest RMB 194
million on new process equipment for EZVIZ Chongqing Base Project. On September 17th 2021, Chongqing EZVIZ
Electronics won the right to use the state-owned construction land of the project site for RMB 193.98 million. On
September 24th 2021, Chongqing EZVIZ Electronics and Chongqing Dadukou District Planning and Natural
Resources Bureau signed the Grant Contract of the State-owned Construction Land Use Right.
Related inquiries on important information disclosure website:
Disclosure website of the temporary public
Title of the temporary public announcement Disclosure Date
announcement
Proposal on the Spin-off of the Subsidiary Hangzhou EZVIZ
Network Co., Ltd. to Be Listed on the SSE STAR (Sci-Tech January 9th 2021 www.cninfo.com.cn
Innovation Board) Market
Announcement on the Change of Partners of Industrial
Investment Funds that the Company Participated in the July 19th 2021 www.cninfo.com.cn
Establishment (Announcement No. 2021-043)
Announcement on External Donations to Support Emergency July 24th 2021 www.cninfo.com.cn
Hikvision 2021 Q3 Report
Disclosure website of the temporary public
Title of the temporary public announcement Disclosure Date
announcement
Rescue and Disaster Relief (Announcement No. 2021-047)
Proposal on the Spin-off of the Subsidiary Hangzhou EZVIZ
Network Co., Ltd. to Be Listed on the SSE STAR (Sci-Tech August 11th 2021 www.cninfo.com.cn
Innovation Board) Market (Revised Draft)
Announcement on the Completion of the Filing of Changes to
the Industrial Investment Funds that the Company Involved August 11th 2021 www.cninfo.com.cn
in the Establishment (Announcement No. 2021-054)
Announcement on the Investment and Construction of EZVIZ
Intelligent Manufacturing (Chongqing) Base Project by the
August 11th 2021 www.cninfo.com.cn
Company’s Holding Subsidiary (Announcement No. 2021-
052)
Progress Announcement Regarding to the Investment and
Construction of the EZVIZ Intelligent Manufacturing
September 25th 2021 www.cninfo.com.cn
(Chongqing) Base Project by the Company’s Holding
Subsidiary (Announcement No.: 2021-057)
Announcement on Resolutions of the Second Extraordinary
General Meeting of Shareholders in 2021 (Announcement September 28th 2021 www.cninfo.com.cn
No. 2021-058)
Hikvision 2021 Q3 Report
IV. Quarterly Financial Reports
1. Financial Statements
1.1 Consolidated Balance Sheet
Unit: RMB
Item September 30th 2021 December 31st 2020
Current Assets:
Cash and bank balances 28,617,217,549.23 35,459,729,108.27
Held-for-trading financial assets 6,944,488.57 22,679,846.77
Notes receivable 1,215,757,560.41 1,303,252,705.19
Accounts receivable 26,163,648,777.96 21,979,380,716.86
Receivables for financing 1,290,351,491.78 1,959,601,195.25
Prepayments 643,627,193.21 296,334,689.86
Other receivables 466,541,993.02 519,143,350.82
Inventories 19,053,058,705.00 11,477,906,040.70
Contract assets 282,869,179.03 245,754,510.98
Non-current assets due within one year 1,288,034,666.89 1,001,208,813.83
Other current assets 1,146,354,009.21 497,914,506.64
Total Current Assets 80,174,405,614.31 74,762,905,485.17
Non-current Assets:
Long-term receivables 2,249,306,702.58 2,105,570,004.53
Long-term equity investment 856,162,709.05 864,026,710.23
Other non-current financial assets 456,728,888.16 491,939,067.27
Fixed assets 6,374,406,179.41 5,876,007,536.60
Construction in progress 2,146,413,104.92 1,425,235,193.72
Right-of-use assets 443,444,783.37
Intangible assets 1,217,889,923.50 1,251,317,923.69
Goodwill 380,499,743.04 274,203,665.20
Long-term deferred expenses 98,316,714.21 108,584,686.85
Deferred tax assets 889,975,725.21 820,380,954.86
Other non-current assets 980,502,480.84 721,511,156.08
Total Non-current Assets 16,093,646,954.29 13,938,776,899.03
Total Assets 96,268,052,568.60 88,701,682,384.20
Current Liabilities:
Short-term borrowings 3,351,562,436.69 3,999,246,634.59
Held-for-trading financial liabilities 2,809,255.34 7,405,771.15
Notes payable 640,159,568.25 1,036,920,229.85
Accounts payable 14,239,686,714.74 13,593,884,790.19
Hikvision 2021 Q3 Report
Item September 30th 2021 December 31st 2020
Contract Liabilities 2,611,871,266.68 2,161,166,671.26
Payroll payable 3,815,796,800.58 2,877,786,430.71
Taxes payable 2,216,512,568.99 1,770,057,908.62
Other payables 2,589,988,357.74 1,525,053,355.95
Non-current liabilities due within one year 3,619,948,261.12 3,507,680,339.78
Other current liabilities 761,735,804.63 745,711,579.57
Total Current Liabilities 33,850,071,034.76 31,224,913,711.67
Non-current Liabilities:
Long-term borrowings 2,128,684,836.74 1,961,167,761.30
Lease liabilities 208,347,700.38
Long-term payables 9,260,090.93 39,595,459.35
Provisions 156,164,932.93 151,443,871.02
Deferred income 273,891,749.60 190,878,987.69
Deferred tax liabilities 83,493,469.72 92,979,823.89
Other non-current liabilities 511,594,361.52 560,959,368.74
Total non-current liabilities 3,371,437,141.82 2,997,025,271.99
Total liabilities 37,221,508,176.58 34,221,938,983.66
Owners’ Equity
Share capital 9,335,806,114.00 9,343,417,190.00
Capital reserves 5,336,556,456.26 5,178,777,462.09
Less: Treasury shares 1,023,188,723.04 1,121,918,737.47
Other comprehensive income (104,674,008.70) (84,993,926.94)
Surplus reserves 4,672,505,348.00 4,672,505,348.00
Retained earnings 39,314,107,577.58 35,806,523,826.37
Total owners' equity attributable to owner of the
57,531,112,764.10 53,794,311,162.05
Company
Minority equity 1,515,431,627.92 685,432,238.49
Total owners' equity 59,046,544,392.02 54,479,743,400.54
Total liabilities and owners' equity 96,268,052,568.60 88,701,682,384.20
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
Hikvision 2021 Q3 Report
1.2 Consolidated Income Statement from the beginning of the year to the end of the reporting
period
Unit: RMB
Item 2021 Q1~Q3 2020 Q1~Q3
I. Total operating income 55,629,267,490.88 42,021,194,889.62
II．Total operating costs 44,117,391,608.90 33,719,184,646.63
Including：operating costs 29,854,226,905.32 21,970,833,611.78
Business taxes and surcharges 429,088,237.90 284,043,463.58
Selling expenses 6,457,804,368.11 5,233,839,568.35
Administrative expenses 1,531,518,894.32 1,335,010,979.18
Research and Development (R&D) expenses 6,063,039,217.93 4,740,749,014.04
Financial expenses (218,286,014.68) 154,708,009.70
Including：Interest expenses 161,277,514.63 148,373,068.03
Interest income 636,331,864.30 464,390,827.93
Add: Other Income 1,766,628,497.10 1,689,901,236.39
Investment income (loss“-“) 219,922,536.36 124,741,116.75
Including: Investment gains (losses) in
associated enterprise and joint-venture 8,034,443.78 (22,332,967.09)
enterprise
Gains (loss “-“) from changes in fair values (46,332,817.33) 40,458,673.51
Credit impairment losses (“-“) (440,543,687.06) (209,108,587.37)
Impairment losses (“-“) of assets (296,003,739.00) (260,366,239.98)
Asset disposal income (loss“-“) 11,281,396.84 304,642.17
III. Operating profit (loss“-“) 12,726,828,068.89 9,687,941,084.46
Add: Non-operating income 58,333,999.53 51,501,876.64
Less: Non-operating expenses 72,515,784.28 12,888,908.91
IV. Total profit (loss“-“) 12,712,646,284.14 9,726,554,052.19
Less: Income tax expenses 1,215,761,340.43 1,149,356,334.82
V. Net profit (loss“-“) 11,496,884,943.71 8,577,197,717.37
5.1 Classification by operation continuity
(a) Net profit (loss) on continuous operation 11,496,884,943.71 8,577,197,717.37
(b) Net profit (loss) on terminated operation - -
5.2 Classification by attribution of ownership
(a) Net profit attributable to owners of parent
10,965,641,158.11 8,438,951,476.64
company
(b) Profit or loss attributable to minority
531,243,785.60 138,246,240.73
shareholders
Hikvision 2021 Q3 Report
Item 2021 Q1~Q3 2020 Q1~Q3
VI. Other comprehensive income, net of income tax (20,947,319.59) (36,391,343.45)
Other comprehensive income attributable to owners of
(19,680,081.77) (34,507,678.30)
the Company, net of tax
(I) Items that will not be reclassified subsequently to
- -
profit or loss
(II) Other comprehensive income to be reclassified to
(19,680,081.77) (34,507,678.30)
profit or loss in subsequent periods
1.Exchange differences arising on conversion of
financial statements denominated in foreign (19,680,081.77) (34,507,678.30)
currencies
Other comprehensive income attributable to minority
(1,267,237.82) (1,883,665.15)
interests, net of tax
VII. Total comprehensive income 11,475,937,624.12 8,540,806,373.92
Total comprehensive income attributable to owners of
10,945,961,076.34 8,404,443,798.34
the parent company
Total comprehensive income attributable to minority
529,976,547.78 136,362,575.58
shareholders
VIII. Earnings per share
(I) Basic earnings per share 1.179 0.909
(II) Diluted earnings per share 1.178 0.909
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
1.3 Consolidated Cash Flow Statement from the beginning of the year to the end of the
reporting period
Unit: RMB
Item 2021 Q1~Q3 2020 Q1~Q3
I. Cash flows from operating activities:
Cash received from sale of goods or rendering of
57,804,183,013.33 44,732,201,357.96
services
Receipts of tax refunds 3,223,557,982.86 2,519,486,353.29
Other cash receipts relating to operating activities 1,506,042,792.76 1,120,966,888.55
Sub-total of cash inflows from operating
62,533,783,788.95 48,372,654,599.80
activities
Cash payments for goods purchased and services
40,981,820,273.00 28,365,300,528.80
received
Cash paid to and on behalf of employees 9,760,464,456.89 7,786,708,739.25
Payments of various types of taxes 3,798,000,076.89 3,516,698,560.06
Other cash payments relating to operating
4,061,568,079.94 3,169,328,778.86
activities
Sub-total of cash outflows from operating
58,601,852,886.72 42,838,036,606.97
activities
Net Cash flows from Operating Activities 3,931,930,902.23 5,534,617,992.83
II. Cash flows from Investing Activities:
Cash receipts from recovery of investments 5,586,296,231.17 1,436,901,231.06
Hikvision 2021 Q3 Report
Item 2021 Q1~Q3 2020 Q1~Q3
Cash receipts from investment income 116,643,801.97 151,548,143.79
Net cash receipts from disposals of fixed assets,
15,477,468.87 21,360,710.88
intangible assets and other long-term assets
Other cash receipts relating to investing
16,436,232.19 24,102,324.29
activities
Sub-total of cash inflows from investing
5,734,853,734.20 1,633,912,410.02
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 2,125,979,715.74 1,605,697,549.12
assets
Cash paid to acquire investments 5,610,904,398.89 1,831,979,614.38
Net cash paid to acquire subsidiaries and other
293,105,351.50 -
business units
Net cash paid for disposal of subsidiaries and
7,355,969.42 -
other business units
Sub-total of cash outflows from investing
8,037,345,435.55 3,437,677,163.50
activities
Net cash flows from Investing Activities (2,302,491,701.35) (1,803,764,753.48)
III. Cash flows from financing activities:
Cash receipts from capital contributions 6,839,900.00 159,764,987.03
Including: cash receipts from capital
contributions from minority owners of 6,839,900.00 159,764,987.03
subsidiaries
Cash receipts from borrowings 3,856,596,155.84 3,681,920,917.95
Cash receipts from bonds - 999,500,000.00
Sub-total of cash inflows from financing
3,863,436,055.84 4,841,185,904.98
activities
Cash repayments of borrowings 4,518,670,167.89 1,734,060,296.82
Cash payments for distribution of dividends or
7,118,986,368.12 6,599,275,667.73
profits or settlement of interest expenses
Other cash payments relating to financing
259,236,364.17 64,290,000.00
activities
Sub-total of cash outflows from financing
11,896,892,900.18 8,397,625,964.55
activities
Net cash flows from Financing Activities (8,033,456,844.34) (3,556,440,059.57)
IV. Effect of foreign exchange rate changes on Cash
(95,920,442.11) (418,677,132.16)
and Cash Equivalents
V. Net increase in Cash and Cash Equivalents (6,499,938,085.57) (244,263,952.38)
Add: Opening balance of Cash and Cash
35,024,837,878.31 26,515,668,008.40
Equivalents
VI. Closing Balance of Cash and Cash Equivalents 28,524,899,792.74 26,271,404,056.02
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
Hikvision 2021 Q3 Report
2. Notes on financial statement adjustment
(1) Initial Implementation of the new lease standard since the fiscal year of 2021, corresponding adjustments
to the 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 √Yes □No
(1.1) Consolidated Balance Sheet
Unit: RMB
Item December 31st 2020 January 1st 2021 Adjustments
Current Assets:
Cash and bank balances 35,459,729,108.27 35,459,729,108.27 0.00
Held-for-trading financial assets 22,679,846.77 22,679,846.77 0.00
Notes receivable 1,303,252,705.19 1,303,252,705.19 0.00
Accounts receivable 21,979,380,716.86 21,979,380,716.86 0.00
Receivables for financing 1,959,601,195.25 1,959,601,195.25 0.00
Prepayments 296,334,689.86 293,382,571.09 -2,952,118.77
Other receivables 519,143,350.82 519,026,062.82 -117,288.00
Inventories 11,477,906,040.70 11,477,906,040.70 0.00
Contract assets 245,754,510.98 245,754,510.98 0.00
Non-current assets due within one
1,001,208,813.83 1,001,208,813.83 0.00
year
Other current assets 497,914,506.64 497,437,052.79 -477,453.85
Total Current Assets 74,762,905,485.17 74,759,358,624.55 -3,546,860.62
Non-current Assets:
Long-term receivables 2,105,570,004.53 2,105,570,004.53 0.00
Long-term equity investment 864,026,710.23 864,026,710.23 0.00
Other non-current financial assets 491,939,067.27 491,939,067.27 0.00
Fixed assets 5,876,007,536.60 5,830,677,198.85 -45,330,337.75
Construction in progress 1,425,235,193.72 1,425,235,193.72 0.00
Right-of-use assets 392,997,553.30 392,997,553.30
Intangible assets 1,251,317,923.69 1,251,317,923.69 0.00
Goodwill 274,203,665.20 274,203,665.20 0.00
Long-term deferred expenses 108,584,686.85 108,584,686.85 0.00
Deferred tax assets 820,380,954.86 820,380,954.86 0.00
Other non-current assets 721,511,156.08 721,511,156.08 0.00
Total Non-current Assets 13,938,776,899.03 14,286,444,114.58 347,667,215.55
Total Assets 88,701,682,384.20 89,045,802,739.13 344,120,354.93
Current Liabilities:
Short-term borrowings 3,999,246,634.59 3,999,246,634.59 0.00
Held-for-trading financial liabilities 7,405,771.15 7,405,771.15 0.00
Hikvision 2021 Q3 Report
Item December 31st 2020 January 1st 2021 Adjustments
Notes payable 1,036,920,229.85 1,036,920,229.85 0.00
Accounts payable 13,593,884,790.19 13,593,884,790.19 0.00
Contract liabilities 2,161,166,671.26 2,161,166,671.26 0.00
Payroll payable 2,877,786,430.71 2,877,786,430.71 0.00
Taxes payable 1,770,057,908.62 1,770,057,908.62 0.00
Other payables 1,525,053,355.95 1,525,053,355.95 0.00
Including : Interests payable
Dividends payable 205,898,523.84 205,898,523.84 0.00
Non-current liabilities due within one
3,507,680,339.78 3,644,798,414.28 137,118,074.50
year
Other current liabilities 745,711,579.57 745,711,579.57 0.00
Total Current Liabilities 31,224,913,711.67 31,362,031,786.17 137,118,074.50
Non-current Liabilities:
Long-term borrowings 1,961,167,761.30 1,961,167,761.30 0.00
Lease liabilities 230,055,273.70 230,055,273.70
Long-term payables 39,595,459.35 16,542,466.08 -23,052,993.27
Provisions 151,443,871.02 151,443,871.02 0.00
Deferred income 190,878,987.69 190,878,987.69 0.00
Deferred tax liabilities 92,979,823.89 92,979,823.89 0.00
Other non-current liabilities 560,959,368.74 560,959,368.74 0.00
Total non-current liabilities 2,997,025,271.99 3,204,027,552.42 207,002,280.43
Total liabilities 34,221,938,983.66 34,566,059,338.59 344,120,354.93
Owners’ Equity
Share capital 9,343,417,190.00 9,343,417,190.00 0.00
Capital reserves 5,178,777,462.09 5,178,777,462.09 0.00
Less: Treasury shares 1,121,918,737.47 1,121,918,737.47 0.00
Other comprehensive income (84,993,926.94) (84,993,926.94) 0.00
Surplus reserves 4,672,505,348.00 4,672,505,348.00 0.00
Retained earnings 35,806,523,826.37 35,806,523,826.37 0.00
Total owners' equity attributable to
53,794,311,162.05 53,794,311,162.05 0.00
owner of the Company
Minority equity 685,432,238.49 685,432,238.49 0.00
Total owners' equity 54,479,743,400.54 54,479,743,400.54 0.00
Total liabilities and owners' equity 88,701,682,384.20 89,045,802,739.13 344,120,354.93
Hikvision 2021 Q3 Report
(2) Description of retrospective adjustment to prior comparative data for the initial implementation of the
new lease standard since the fiscal year of 2021.
√Applicable □Inapplicable
The effects of adoption of the New Lease Standard on balance sheet items on January 1st 2021 are set out as follows:
Consolidated Balance Sheet
Unit: RMB
Under Original Lease Under New Lease
Item Reclassification (Note)
Standard Standard
Current Assets：
Prepayments 296,334,689.86 (2,952,118.77) 293,382,571.09
Other receivables 519,143,350.82 (117,288.00) 519,026,062.82
Other current assets 497,914,506.64 (477,453.85) 497,437,052.79
Non-current assets:
Fixed assets 5,876,007,536.60 (45,330,337.75) 5,830,677,198.85
Right-of-use assets 392,997,553.30 392,997,553.30
Current Liabilities:
Non-current liabilities due within
3,507,680,339.78 137,118,074.50 3,644,798,414.28
one year
Non-current Liabilities:
Long-term payables 39,595,459.35 (23,052,993.27) 16,542,466.08
Lease liabilities 230,055,273.70 230,055,273.70
Note: For financial leases before the date of initial application, the Company measures the right-of-use assets and
lease liabilities respectively in accordance with the original book value of the assets held under financial leases and
the payables for financial leases. For operating leases before the date of initial application, the Company measures
the lease liabilities at the present value discounted by the incremental borrowing rate on the date of initial application
based on the remaining lease payments, and the prepaid rent is adjusted to measure the right-of-use assets according
to an amount equal to the lease liabilities of each lease. The lease liabilities (including the liabilities due within one
year) and the right-of-use assets recognized by the Company on January 1st 2021 amounted to RMB 386,475,961.59
and RMB 392,997,553.30, respectively. For operating leases before the date of initial application, the Company
measures the lease liabilities at the present value discounted by the incremental borrowing rate on the date of initial
application which ranges between 1.14% and 9.50%.
Hikvision 2021 Q3 Report
3. Audit Report
Whether audit has been performed on this 2021 3rd Quarter Report
□ Yes √ No
The Company’s 2021 3rd Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Board of Directors
October 23rd 2021
Note:
This document is a translated version of the Chinese version 2021 3rd Quarter Report (“2021 年第三季度报告”),
and the published announcements in the Chinese version shall prevail. The complete published Chinese 2021 3rd
Quarter Report may be obtained at www.cninfo.com.cn.
