HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2018 Quarter 3 Report
July to September 2018
October 20th 2018
Hikvision 2018 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
institution (accounting supervisor) hereby declare and warrant that the financial
statements in this report are authentic, accurate and complete.
Note:
This document is a translated version of the Chinese version 2018 Q3 Financial Report (“2018 年第
三季度报告全文”), and the published Q3 report in the Chinese version shall prevail. The complete
published Chinese 2018 Q3 Financial Report may be obtained at http://www.cninfo.com.cn.
2
Hikvision 2018 Q3 Report
Section II Corporate Profile
I. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of previous accounting data
□Yes √ No
Change(%) between December 31st 2017
At September 30th 2018 At December 31st 2017
and September 30th 2018
Total assets (RMB) 54,932,903,678.85 51,570,963,466.61 6.52%
Net assets attributable to shareholders of the Company
33,288,289,805.53 30,358,072,874.22 9.65%
(RMB)
YoY Change(%) between
YoY Change(%) between
2018 Q3 2018 Q1~Q3 2017 Q1~Q3 and 2018
2017 Q3 and 2018 Q3
Q1~Q3
Operating income (RMB) 12,926,932,976.48 14.58% 33,802,691,201.11 21.90%
Net profits attributable to shareholders of the Company
3,248,407,615.14 13.53% 7,395,803,151.00 20.20%
(RMB)
Net profits attributable to shareholders of the Company
3,142,725,705.56 11.48% 7,151,996,666.81 19.02%
excluding non-recurring gains and losses (RMB)
Net cash flows from operating activities (RMB) 4,267,464,655.50 109.33% 2,646,271,297.50 2,660.86%
Basic earnings per share (RMB/share) 0.357 13.33% 0.806 20.12%
Diluted earnings per share (RMB/share) 0.353 12.78% 0.804 19.47%
Weighted average Return on Equity (ROE) 10.25% -1.30% 23.06% 0.68%
3
Hikvision 2018 Q3 Report
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item January 1st –September 30th 2018
Profit or loss from disposal of non-current assets (including the write-off for the
3,972,499.20
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
162,364,517.13
and government subsidy based on standard quota or quantification application
according to the national industrial policy.)
Profits and losses attributed to change in fair value for held-for-trading financial
assets, held-for-trading financial liabilities, and investment income in disposal of
held-for-trading financial assets and liabilities and available-for sale financial 67,991,633.56
assets, 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 86,164,616.08
Less: Impact of income tax 57,283,249.95
The impact of the minority interests (after tax) 19,403,531.83
Total 243,806,484.19
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
In the reporting period, the Company did not classify 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
4
Hikvision 2018 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 the reporting Total number of preferred shareholders (if any) whose voting rights have been
182,216 0
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 common shares held
Name of shareholder Nature of shareholder
holding percentage (%) the period-end with trading Status Amount
restrictions
China Electronics Technology HIK Group Co., Ltd. State-owned corporation 39.60% 3,653,674,956 0 Pledged 50,000,000
Gong Hongjia Overseas individual 13.60% 1,255,056,700 1,038,792,525 Pledged 336,783,300
Hong Kong Securities Clearing Company Ltd.(HKSCC) Overseas corporation 10.41% 960,637,497 0 - -
Xinjiang Weixun Investment Management Limited Domestic non-state-owned
4.89% 450,795,176 0 Pledged 161,500,000
Partnership corporation
Domestic non-state-owned
Xinjiang Pukang Investment Limited Partnership 1.98% 182,510,174 0 Pledged 64,570,000
corporation
Hu Yangzhong Domestic Individual 1.97% 182,186,477 136,639,858 Pledged 84,130,000
The 52nd Research Institute at China Electronics
State-owned corporation 1.96% 180,775,044 0 - -
Technology Group Corporation
UBS AG Overseas corporation 0.84% 77,504,473 0 - -
State-owned
Central Huijin Investment Ltd. 0.71% 65,818,800 0 - -
corporation
Domestic non-state-owned
CITIC Securities Company Limited 0.62% 57,198,199 0 - -
corporation
5
Hikvision 2018 Q3 Report
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
Number of common shares without trading restrictions held at the Type of shares
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
960,637,497 960,637,497
Ltd.(HKSCC)
Xinjiang Weixun Investment Management Limited
450,795,176 450,795,176
Partnership
Gong Hongjia 216,264,175 RMB ordinary shares 216,264,175
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 Corporation
UBS AG 77,504,473 RMB ordinary shares 77,504,473
Central Huijin Investment Ltd. 65,818,800 RMB ordinary shares 65,818,800
CITIC Securities Company Limited 57,198,199 RMB ordinary shares 57,198,199
GIC PRIVATE LIMITED 50,007,208 RMB ordinary shares 50,007,208
China Electronics Technology HIK Group Co., Ltd. and The 52nd Research Institute at China Electronics Technology Group Co., Ltd. are
all subject to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei, limited partner of Xinjiang Pukang
Explanation on associated relationship and concerted
Investment Limited Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder of the Company. Hu Yangzhong,
actions among top ten common shareholders without
domestic individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang Pukang
trading restrictions, and among top ten common
Investment Limited Partnership.
shareholders and top ten common shareholders
Except for these, the Company does not know whether the other shareholders are related parties or whether they are acting-in-concert
without trading restrictions
parties in accordance with the Measures for Management of the Disclosure of the Shareholding Changes of Shareholders of the Listed
Company.
6
Hikvision 2018 Q3 Report
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducts any
agreed buy-back in the reporting period?
□ Applicable √ Inapplicable
No such cases in the reporting period.
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable √ Inapplicable
7
Hikvision 2018 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 Balance at January 1st
Item YoY change (%) Note of Changes
30th 2018 (RMB) 2018 (RMB)
Financial assets at fair value through profit
17,214,568.51 4,100,657.54 319.80% Changes in fair value for foreign exchange hedging products
and loss
Other current assets 711,908,681.58 3,720,449,532.88 -80.86% Withdraw of principal-guaranteed bank financial products which are due
Increase the investment of Maxio Technology (Hangzhou) Ltd. and other
Long-term equity investment 174,256,515.30 130,474,733.58 33.56%
associated companies
Fixed assets 4,317,008,970.21 3,024,025,496.31 42.76%
Transfer of the completed Internet Security Industry Base project from
construction in process to fixed assets
Construction in progress 848,421,778.65 1,436,319,118.30 -40.93%
Purchase of land use right for Chengdu Science and Technology Base
Intangible assets 827,671,591.59 429,160,982.63 92.86%
project during the current reporting quarter.
Mainly due to increase in equipment prepayments and long-term assets
Other non-current assets 1,436,455,510.67 858,796,668.13 67.26%
formed by completed construction contracts that have not been settled yet
Short-term borrowings 3,186,577,915.25 97,114,655.91 3181.25% Increase in bank borrowings due to temporary capital turnover
Financial liabilities at fair value through
24,379,634.94 15,946,836.46 52.88% Changes in fair value for foreign exchange hedging products
profit and loss
8
Hikvision 2018 Q3 Report
Non-current liabilities due within one year 4,033,158,623.18 1,546,407,270.89 160.81%
The Euro bond will be due within one year, and was categorized into
current asset.
Bonds payable - 3,120,920,000.00 -100.00%
Long-term borrowings 190,000,000.00 490,000,000.00 -61.22% Repayments of long-term borrowings which are due
Deferred income 175,001,027.42 88,925,771.65 96.79% Increase in special government subsidies
Differences in foreign currency statements translation caused by changes in
Other comprehensive income -53,399,341.65 -27,677,939.35 92.93%
exchange rates
1.2 Explanation for variations in income statement items
Item 2018 Q1~Q3 (RMB) 2017 Q1~Q3 (RMB) YoY Change (%) Note of changes
Selling expenses 4,175,942,610.35 2,960,426,405.60 41.06% Continue to increase investments in domestic and overseas sales network
Personnel growth and increase in new office occupancy of low value
Administrative expenses 960,293,296.63 569,994,387.84 68.47%
consumables, and etc.
R&D expenses 3,077,722,956.20 2,292,071,002.00 34.28% Continue to increase investments in R&D
Financial expense -367,680,813.03 218,299,111.47 -268.43% Increase in foreign exchange rate gains
New special government subsidies and the increase in value-added tax
Other income 1,417,431,530.21 1,040,078,811.54 36.28%
(VAT) rebates as income increases
Increase in investment incomes obtained from principal-guaranteed
Investment income 61,182,269.35 46,547,777.20 31.44%
bank financial products which are due
Gains from changes in fair values 5,191,145.93 38,626,739.56 -86.56% Changes in fair value for foreign exchange hedging products
9
Hikvision 2018 Q3 Report
1.3 Explanation for variations in cash flow statement items
Item 2018 Q1~Q3 (RMB) 2017 Q1~Q3 (RMB) YoY Change (%) Note of changes
Net cash flow from operating activities 2,646,271,297.50 95,849,570.76 2660.86% Increase in sales receipts
Net cash flow from investment activities 1,296,366,271.60 2,657,270,850.26 -51.21% Increase in cash expenditures on long-term assets
2. Progress and influence of significant events, analysis and explanation of corresponding solutions.
□ Applicable √ Inapplicable
3. Incomplete 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
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
1. Commitments in non-competition within the industry: In the period as
controlling shareholders of the Hikvision, CETHIK and its controlling
subsidiaries (excluding Hikvision and its subsidiaries, the same below) will
not be engaged in such business that is competitive to Hikvision and its
subsidiaries directly or indirectly.
Commitments in 2. Commitments in decrease and regulation of transactions with related party:
acquisition report or Zhejiang Haikang Group Co., Ltd (hereinafter referred to as Haikang Group October 29th Strict
CETHIK Group Co., Ltd. Long-term
shareholding or actual controller) as the controlling shareholders of Hangzhou Hikvision 2013 performance
alterations Digital Technology Co., Ltd (hereinafter referred to as "Hikvision" or "Listed
Company") are commited as below for the transactions with Hikvsion:
(1) Haikang Group will not make use of the controlling power to offer more
favorable conditions to Hikvision than those to any independent third party in
any fair market transactions in the cooperation with Hikvision.
(2) Haikang Group will not make use of the controlling power to obtain the
10
Hikvision 2018 Q3 Report
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
prior right to complete the transaction with Hikvision.
(3) Haikang Group will not deal with Hikvsion in not fair terms comparing to
the market prices to prejudice the Company’s interests.
For unavoidable related transactions, the Company will observe the
principles of justice and fairness to deterimine prices according to the market
on the basis of equality, voluntarily. The Company will obey the Articles of
Association and other regulatory documents related to the avoiding of issues
about related transactions. The related transactions will go through approval
procedures in accordance with related rules and complete legal procedures,
fulfilling the information disclosure obligations in respect to the related
transactions
3. Commitment to the maintenance of the independence of the listed
Company
3.1 Commitment to Personnel Independence of the listed Company
(1) Commitment that our general manager, deputy general manager, chief
financial officer, secretary of the board and other members of senior
management shall not assume any positions other than directors and
supervisors or get any remuneration in CETHIK and/or any of its controlled
entities; (2) Commitment in keeping the management of labor, human
resources and issues related to remuneration of the listed Company
independent from that of CETHIK;
3.2 Commitment to the independence of the asset of the listed Company
(1) Commitment to independent and complete asset of the listed Company
(2) Commitment free of unlawful use of cash and asset of the listed Company
by the controlling shareholders
3.3 Commitment to financial independence of the listed Company
(1) Commitment to an independent finance department with a team and
accounting system;
(2) Commitment to a regulated, independent accounting system and financial
management system of the branches and subsidiaries
(3) Commitment to maintaining accounts with banks independently of and
not sharing any bank account with our controlling shareholders
(4) Commitment that the financial staff shall not assume any positions in
11
Hikvision 2018 Q3 Report
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
CETHIK
(5) Commitment to paying taxes independently according to the law;
(6) Commitment to implementing financial decisions independently
3.4 The Company has set up an independent organizational structure which
maintains its independent operations which is independent from that of
CETHIK.
3.5 Commitment to business Independence of the listed Company
(1) The Company has the asset, personnel, aptitude and management
capability for independent and complete business operation. The Company
has the ability to operate independently in the market.
(2) Commitment in independence in both business and operations
4. Regarding plans for the development and relevant commitment for the
listed Company, Haikang Group has committed as below for the subsequent
development of Hikvsion according to the Securities Acts and relevant laws
and rules,
4.1 Currently the Company has no plan to change or make significant
adjustments for principal business in the next 12 months;
4.2 Currently the Company has no plan to sell, merge or operate with another
Company for the assets and business of the listed Company or its subsidiaries
in the next 12 months.
4.3 Currently the Company has no plan to alter the Board of the Directors
and senior management and no agreement with other shareholders about the
appointment and removal of the directors or senior management. The team of
Board of Directors and senior management will remain unchanged for the
foreseeable future.
4.4 Currently the Company has no plan to make significant changes to the
Articles of Association for the listed Company.
4.5 Currently the Company has no plan to make significant changes to the
12
Hikvision 2018 Q3 Report
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
existing employee recruitment for the listed Company.
4.6 Currently the Company has no plan to make significant changes for the
dividend distribution plan for the listed Company.
4.7 Currently the Company has no plan to make significant changes for
business and organizational structure for the listed Company.
During Hu Yangzhong, Wu Weiqi, JiangHaiqing, Zhou Zhiping, Xu Lirong,
Cai Dingguo, He Hongli, Zheng Yibo, Hu Dan,、Jiang Yufeng, Liu Xiang,
Hangzhou Weixun Investment Management Wang Ruihong, Chen Junke’s tenure of the Company’s board of directors,
May 17th Strict
Ltd.（later renamed as Xinjiang Weixun supervisors and senior management personnel, the annual transfer of Long term
2010 performance
Investment Management Limited Partnership） Hikvision’s total shares should not exceed 25% of total number of shares held
under Weixun; within 6 months after abovementioned personnel’s dimission,
should not transfer Hikvision’s shares held under Weixun.
During Hu Yangzhong, Wu Weiqi, Gong Hongjia’s tenure of the Company’s
board of directors, supervisors and senior management personne, the annual
Hangzhou Pukang Investment Ltd.（later
Commitments in transfer of Hikvision’s total shares should not exceed 25% of total number of May 17th Strict
renamed as Xinjiang Pukang Investment Long term
Initial Public shares held under Pukang; whithin 6 months after abovementioned 2010 performance
Offering or Limited Partnership）
personnel’s dimission, should not transfer Hikvision’s shares held under
re-financing
Pukang.
The Company's directors, supervisors and
executive: HuYangzhong,Wu Weiqi, Jiang During their tenure of the Company’s board of directors, supervisors and
Haiqing, Zhou Zhiping，Xu Lirong, Cai senior management personnel, the annual shares transfer should not exceed May 17th Strict
Long term
Dingguo, He Hongli, Zheng Yibo, Hu Dan, 25% of total number of shares held under Weixun; whthin 6 months after 2010 performance
Jiang Yufeng, Liu Xiang, Wang Ruihong, Chen their dimission, they should not transfer their shares held under Weixun.
Junke
Directors, executive officers of the Company: During their tenure of the Company’s board of directors, supervisors and May 17th Strict
Long term
Hu Yangzhong, Wu Weiqi senior management personnel, the annual shares transfer should not exceed 2010 performance
13
Hikvision 2018 Q3 Report
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
25% of total number of shares held under Pukang; whthin 6 months after
their dimission, they should not transfer their shares held under Pukang.
During Gong Hongjia’s tenure of the Company’s board of directors,
supervisors and senior management personnel, Chen’s annual shares transfer
The Company’s director Gong Hongjia’s May 17th Strict
should not exceed 25% of total number of shares held under Pukang; whthin Long-term
spouse, Chen Chunmei 2010 performance
6 months after the dimission of Gong Hongjia,Chen should not transfer her
shares held under Pukang.
To avoid any loss of the Company and other shareholders arising from any
China Electronics Technology Group
competing business, China Electronics Technology Group Corporation, the September Strict
Corporation（later renamed as China Electronics th
Long term
actual controller of the Company, issued Letters of non-competition on 18 18 2008 performance
Technology Group Co., Ltd.）
September, 2008.
Gong Hongjia；
Hangzhou Weixun Investment Management To avoid any loss of the Company and other shareholders arising from any
Limited Partnership（later renamed as Xinjiangcompeting business, Gong Hongjia, Hangzhou WeiXun Investment
Weixun Investment Management Limited Management Limited Partnership, ZheJiang Orient Holdings Co., Ltd and
Partnership）； Hangzhou KangPu Investment Management Limited Partnership, the
Strict
th Long term
Hangzhou Pukang Investment Limited promoters of the Company, issued Commitment Letters of non-competition in July 10 2008 performance
Partnership（later renamed as Xinjiang Pukang the same industry on 10 July, 2008.
Investment Limited Partnership）；ZheJiang
Orient Holdings Co., Ltd.
Whether the
undertaking is Yes
fulfilled on time
14
Hikvision 2018 Q3 Report
4. Guidance on the Company’s 2018 full year operational results.
Guidance on the Company’s 2018 full year operational performance: Net profits attributable to shareholders of the Company are positive, and situation of turning
losses into gains is not applicable.
Estimated YoY change (%) of 2018 net profits attributable to shareholders of the Company 10% to 30%
Estimated variation interval of 2018 net profits attributable to shareholders of the Company
1,035,194.06 to 1,223,411.16
(0,000 RMB)
2017 net profits attributable to shareholders of the Company (0,000 RMB) 941,085.51
Note of change in operational results The Company’s operating performance continues to have a steady and healthy growth.
5. Financial Assets measured at fair value
√ Applicable □ Inapplicable
Unit: RMB
Profits or losses on
Cumulative fair
the changes in fair Purchase during the Sales during the Cumulative investment
Asset Category Initial investment cost value change Closing balance Source of funds
value in current reporting period reporting period income
charged to equity
period
Financial derivative
1,400,293,692.23 5,191,145.93 0.00 7,631,386,701.31 0.00 35,043,866.01 2,239,570,541.52 Company's own funds
instruments
Total 1,400,293,692.23 5,191,145.93 0.00 7,631,386,701.31 0.00 35,043,866.01 2,239,570,541.52 --
6. Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
No such case in the reporting period.
15
Hikvision 2018 Q3 Report
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
Unit: 0’000 RMB
The source of funds for entrusted Amount of entrusted financial
Type Unexpired balance Amount not recovered in time
financial management management incurred
Bank Financial Products The Company’s own funds 449,000 10,000 0
Total 449,000 10,000 0
Notes of entrusted financial management involving single significant amount or low security, poor liquidity, principal-not-guaranteed with high risks
□ Applicable √ Inapplicable
Entrusted financial management that is expected to fail to recover the principal or other circumstances that may lead to impairment
□ Applicable √ Inapplicable
9. Schedule for the reception activities including research, communication and interviews during the report period
√ Applicable □ Inapplicable
9.1 Reception of research activities during 2018 Q3
Type of reception
Time of reception Location Method of reception Index of basic situation of the research
object
Headquarter Conference Performance Institutional and
July 23rd 2018 CNINF, Investor Relations Activity Record: July 23rd 2018
Room result-Conference Call individual investors
From July 24th 2018 to August 10th Headquarter Conference Site Research and Institutional CNINF, Investor Relations Activity Record: From July 24th 2018 to August
2018 Room telephone communication investors 10th 2018
16
Hikvision 2018 Q3 Report
Type of reception
Time of reception Location Method of reception Index of basic situation of the research
object
From August 13th 2018 to August 31st Headquarter Conference Site Research and Institutional CNINF, Investor Relations Activity Record: From August 13th 2018 to August
2018 Room telephone communication investors 31st 2018
From September 3rd 2018 to Headquarter Conference Site Research and Institutional CNINF, Investor Relations Activity Record: From September 3rd 2018 to
September 14th 2018 Room telephone communication investors September 14th 2018
9.2 Participation of conferences for investor relationship activities during 2018 Q3
Time of conference Location Conference Name Type of reception object Method of reception
September 2018 London CICC Forum (UK) 2018 All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
September 2018 Stockholm -London Europe NDR-via CICC All kinds of investors One-on-One Meetings
September 2018 Shenzhen UBS China A-Share Conference 2018 All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
Credit Suisse 19th Annual Asian Technology
September 2018 Taibei All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
Conference
September 2018 Hongkong 25th CLSA Investors' Forum All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
9.3 Investor relations activity statistics during 2018 Q3
Number of daily research received (On-site and telephone conference, times) 135
Number of institutional investors received (ppl) 981
Number of individual investors received (ppl) 9
Number of investor relations conference participated 5
17
Hikvision 2018 Q3 Report
Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
Prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
September 30th 2018
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Cash and bank balances 18,273,311,625.69 16,468,430,702.64
Balances with clearing agencies
Placements with banks and other financial
institutions
Financial assets at fair value through profit and
17,214,568.51 4,100,657.54
loss
Derivative financial assets
Notes Receivable and Accounts Receivables 20,174,353,891.92 18,342,171,688.84
Including : Notes receivable 1,993,898,058.19 3,636,961,616.03
Accounts receivable 18,180,455,833.73 14,705,210,072.81
Prepayments 454,115,714.47 527,576,857.11
Premiums receivable
Amounts receivable under reinsurance contracts
Reinsurer's share of insurance contract reserves
Other receivables 723,430,178.28 583,681,240.81
Financial assets purchased under resale agreements
Inventories 5,797,676,969.36 4,940,332,311.65
Held-for-sale assets
Non-current assets due within one year 78,666,535.33 66,566,230.12
Other current assets 711,908,681.58 3,720,449,532.88
Total Current Assets 46,230,678,165.14 44,653,309,221.59
Non-current Assets:
Loans and advances to customers
18
Hikvision 2018 Q3 Report
Item Closing balance Opening balance
Available-for-sale financial assets 287,466,813.00 287,466,813.00
Held-to-maturity investments
Long-term receivables 24,113,182.32 23,375,680.61
Long-term equity investment 174,256,515.30 130,474,733.58
Investment properties
Fixed assets 4,317,008,970.21 3,024,025,496.31
Construction in progress 848,421,778.65 1,436,319,118.30
Productive biological assets
Oil and gas assets
Intangible assets 827,671,591.59 429,160,982.63
Development expenditures
Goodwill 255,885,609.58 248,964,102.97
Long-term prepaid expenses
Deferred tax assets 530,945,542.39 479,070,649.49
Other non-current assets 1,436,455,510.67 858,796,668.13
Total Non-current Assets 8,702,225,513.71 6,917,654,245.02
Total Assets 54,932,903,678.85 51,570,963,466.61
Current Liabilities:
Short-term borrowings 3,186,577,915.25 97,114,655.91
Loans from the central bank
Customer deposits and deposits from banks and
other financial institutions
Capitals taking from banks and other financial
institutions
Financial liabilities at fair value through profit and
24,379,634.94 15,946,836.46
loss
Derivative financial liabilities
Notes payable & Accounts payable 9,117,814,070.08 10,885,340,440.18
Receipts in advance 584,648,648.48 570,573,208.60
Financial assets sold under repurchase agreements
Fees and commissions payable
Payroll payable 1,355,915,098.46 1,391,291,256.90
Taxes payable 1,289,792,684.65 1,453,515,065.77
Other payables 636,962,573.57 496,718,217.83
Amounts payable under reinsurance contracts
19
Hikvision 2018 Q3 Report
Item Closing balance Opening balance
Insurance contract reserves
Funds from securities trading agency
Funds from underwriting securities agency
Held for sale liabilities
Non-current liabilities due within one year 4,033,158,623.18 1,546,407,270.89
Other current liabilities 681,816,656.89 744,583,627.22
Total Current Liabilities 20,911,065,905.50 17,201,490,579.76
Non-current Liabilities:
Long-term borrowings 190,000,000.00 490,000,000.00
Bonds payable 3,120,920,000.00
Including: Preferred share
Perpetual bond
Long-term payables 2,437,038.62
Long-term employee benefits payable
Provisions 75,970,616.45 63,068,638.49
Deferred income 175,001,027.42 88,925,771.65
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 440,971,643.87 3,765,351,448.76
Total liabilities 21,352,037,549.37 20,966,842,028.52
Owners’ Equities
Share capital 9,227,270,473.00 9,228,865,114.00
Other equity instruments
Including: Preferred share
Perpetual debt
Capital reserves 1,931,995,805.38 1,819,397,715.63
Less: Treasury stock 681,816,656.89 744,583,627.22
Other comprehensive income -53,399,341.65 -27,677,939.35
Special reserves
Surplus reserves 3,483,742,918.53 3,483,742,918.53
General risk reserve
Retained earnings 19,380,496,607.16 16,598,328,692.63
Total owners' equity attributable to owner of the
33,288,289,805.53 30,358,072,874.22
Company
20
Hikvision 2018 Q3 Report
Item Closing balance Opening balance
Minority interests 292,576,323.95 246,048,563.87
Total owners' equity 33,580,866,129.48 30,604,121,438.09
Total liabilities and owners' equity 54,932,903,678.85 51,570,963,466.61
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
2. Balance Sheet of the Parent Company
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Cash and bank balances 14,502,188,118.90 12,304,090,713.99
Financial assets at fair value through profit and
loss
Derivative financial assets
Notes receivable & Accounts receivable 15,589,084,022.81 12,851,334,929.89
Including: Notes receivable 238,627,196.91 345,651,612.11
Accounts receivable 15,350,456,825.90 12,505,683,317.78
Prepayments 135,740,071.59 94,545,948.67
Other receivables 1,464,906,736.10 712,142,493.72
Inventories 197,372,249.47 376,776,045.69
Held-for-sale assets
Non-current assets due within one year
Other current assets 25,020,914.50 3,296,055,941.42
Total Current Assets 31,914,312,113.37 29,634,946,073.38
Non-current Assets:
Available-for-sale financial assets 287,456,813.00 287,456,813.00
Held-to-maturity investments
Long-term receivables
Long-term equity investment 4,155,325,078.57 3,367,076,734.95
Investment properties
Fixed assets 2,832,768,252.84 1,757,777,870.77
Construction in progress 15,110,658.74 914,859,063.00
Productive biological assets
Oil and gas assets
21
Hikvision 2018 Q3 Report
Item Closing balance Opening balance
Intangible assets 205,850,650.42 154,604,755.69
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets 246,528,548.37 200,147,031.89
Other non-current assets 17,899,913.17 16,925,712.83
Total Non-Current Assets 7,760,939,915.11 6,698,847,982.13
Total Assets 39,675,252,028.48 36,333,794,055.51
Current Liabilities:
Short-term borrowings
Financial liabilities at fair value through profit and
loss
Derivative financial liabilities
Notes payable & Accounts payable 336,170,093.42 286,629,255.35
Receipts in advance 231,725,897.10 216,747,866.68
Payroll payable 962,733,180.68 946,587,240.01
Taxes payable 1,132,024,963.72 1,219,102,007.88
Other payables 1,752,367,255.61 800,458,183.20
Held-for-sale liabilities
Non-current liabilities due within one year 3,228,939,699.68 33,614,018.51
Other current liabilities 681,816,656.89 744,583,627.22
Total Current Liabilities 8,325,777,747.10 4,247,722,198.85
Non-Current Liabilities:
Long-term borrowings
Bonds payable 3,120,920,000.00
Including: Preferred share
Perpetual bond
Long-term payables
Long-term employee benefits payable
Provisions 48,871,158.60 43,024,784.70
Deferred income 125,668,163.01 62,903,600.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 174,539,321.61 3,226,848,384.70
22
Hikvision 2018 Q3 Report
Item Closing balance Opening balance
Total liabilities 8,500,317,068.71 7,474,570,583.55
Owners' equity
Share capital 9,227,270,473.00 9,228,865,114.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 1,858,542,426.93 1,742,755,331.51
Less: Treasury share 681,816,656.89 744,583,627.22
Other comprehensive income
Special reserves
Surplus reserves 3,483,742,918.53 3,483,742,918.53
Retained earnings 17,287,195,798.20 15,148,443,735.14
Total owners' equity 31,174,934,959.77 28,859,223,471.96
Total liabilities and owners' equity 39,675,252,028.48 36,333,794,055.51
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
3. Consolidated Income Statement
Unit: RMB
Item 2018 Q3 2017 Q3
I. Total operating income 12,926,932,976.48 11,282,202,421.66
Including: Operating income 12,926,932,976.48 11,282,202,421.66
Interest income
Premiums earned
Fees and commissions income
II. Total operating costs 10,130,850,428.37 8,770,040,115.83
Including: Operating costs 7,036,005,384.29 6,056,968,730.55
Interest expenses
Fees and commissions expenses
Surrender charge fee
Claims and policyholder benefits (net of
amounts recoverable from reinsurers)
Insurance contract reserves (net of
reinsurers’ share)
Insurance policyholder dividends
23
Hikvision 2018 Q3 Report
Item 2018 Q3 2017 Q3
Expenses for reinsurance accepted
Business taxes and levies 104,050,722.65 102,675,477.44
Selling expenses 1,526,549,345.93 1,233,501,449.38
Administrative expenses 369,444,844.78 263,068,174.65
R&D expenses 1,165,040,356.96 837,287,338.06
Financial expenses -209,159,495.22 152,798,483.82
Including: Interest expenses 69,037,602.29 37,794,000.01
Interest income 121,478,786.49 54,429,161.81
Impairment losses of assets 138,919,268.98 123,740,461.93
Add: Other income 579,805,136.62 362,667,519.13
Investment income (Loss is indicated by "－") -17,084,846.81 -3,104,411.90
Including: Income from investments in
-4,156,308.97 7,380,152.85
associates and joint ventures
Gains from changes in fair values (Losses are
11,293,693.95 74,249.15
indicated by "－")
Foreign exchange gains (Losses are indicated
by “－”)
Gains from disposal of assets (Losses are
208,920.36 21,403.96
indicated by “－”)
III. Operating profit (Loss is indicated by
3,370,305,452.23 2,871,821,066.17
"－")
Add: Non-operating income 42,218,791.84 67,653,321.38
Less: Non-operating expenses 2,129,007.88 506,767.80
IV. Total profit (total losses expressed with "-") 3,410,395,236.19 2,938,967,619.75
Less: Income tax expenses 170,291,201.09 93,778,273.29
V. Net profit (net loss expressed with "-") 3,240,104,035.10 2,845,189,346.46
(1) Net profit on continuous operation (net losses
3,240,104,035.10 2,845,189,346.46
expressed with "-")
(2) Net profit on terminated operation (net losses
expressed with "-")
Net profit attributable to owners of parent company 3,248,407,615.14 2,861,268,129.82
Profit or loss attributable to minority interests -8,303,580.04 -16,078,783.36
VI. Other comprehensive income, net of income tax -12,993,816.04 -34,857,287.93
Other comprehensive income attributable to owners
-12,822,856.59 -28,196,995.97
of the Company, net of tax
(I) Items that are not reclassified to profit or loss
1. Changes in re-measurement of defined benefit
obligation
24
Hikvision 2018 Q3 Report
Item 2018 Q3 2017 Q3
2. Amounts of other comprehensive income that
cannot be transferred into profit or loss under
equity method
(II) Other comprehensive income to be reclassified to
-12,822,856.59 -28,196,995.97
profit or loss
1. Amounts of other comprehensive income that are
able to be transferred into profit or loss under
equity method
2. Gain or losses attributes to the changes in fair
value of available-for-sale financial assets
3. Gains or losses through reclassifying
held-to-maturity financial assets to
available-for-sale financial assets
4.The effective part of gains and losses on cash flow
hedging
5. Exchange differences arising on conversion of
financial statements denominated in foreign -12,822,856.59 -28,196,995.97
currencies
6. Others
Other comprehensive income attributable to
-170,959.45 -6,660,291.96
minority interests, net of tax
VII. Total comprehensive income 3,227,110,219.06 2,810,332,058.53
Total comprehensive income attributable to owners
3,235,584,758.55 2,833,071,133.85
of the parent company
Total comprehensive income attributable to
-8,474,539.49 -22,739,075.32
minority interests
VIII. Earnings per share
(I) Basic earnings per share 0.357 0.315
(II) Diluted earnings per share 0.353 0.313
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
4. Income Statement of the Parent Company
Unit: RMB
Item 2018 Q3 2017 Q3
I. Total operating income 6,326,855,356.62 5,518,823,572.75
Less: Operating Costs 1,806,308,761.49 1,655,477,081.47
Business taxes and levies 76,813,412.34 77,581,355.14
Selling expenses 722,750,073.68 573,960,832.27
Administrative expenses 178,443,955.39 95,293,673.52
R R&D expenses 704,150,930.84 528,081,712.59
25
Hikvision 2018 Q3 Report
Item 2018 Q3 2017 Q3
Financial expenses -85,249,908.65 -47,411,878.28
Including: Interest expenses 35,733,846.62 7,255,031.83
Interest income 101,754,084.35 40,332,431.70
Impairment losses of assets -298,410.00 143,064,436.54
Add: Other income 463,491,035.44 352,400,737.85
Investment income (Loss is indicated by "－") 18,078,624.24 -4,051,388.64
Including: Income from investments in
-2,018,558.50 4,657,858.86
associates and joint ventures
Gains from changes in fair values (Losses are
-2,995,797.66
indicated by "－")
Gains from disposal of assets (Loss is indicated
62,691.36 19,962.46
by "－")
II. Operating profit (loss is indicated by "－") 3,405,568,892.57 2,838,149,873.51
Add: Non-operating income 14,684,291.45 25,555,498.50
Less: Non-operating expenses 281,527.25 378,569.23
III. Total profit (total loss is indicated by "－") 3,419,971,656.77 2,863,326,802.78
Less: Income tax expenses 87,517,500.57 76,096,578.94
IV. Net profit (Net loss is indicated by "－") 3,332,454,156.20 2,787,230,223.84
(1) Net profit on continuous operation (net losses
3,332,454,156.20 2,787,230,223.84
expressed with "-")
(2) Net profit on terminated operation (net losses
expressed with "-")
V. Other comprehensive income, net of income tax
(I) Items that are not reclassified 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
(II) Other comprehensive income to be reclassified
to profit or loss
1. Amounts of other comprehensive income
that are able to be transferred into profit or
loss under equity method
2. Gain or losses attributes to the changes in fair
value of available-for-sale financial assets
3. Gains or losses through reclassifying
held-to-maturity financial assets to
available-for-sale financial assets
4.The effective part of gains and losses on cash
flow hedging
26
Hikvision 2018 Q3 Report
Item 2018 Q3 2017 Q3
5. Exchange differences arising on conversion
of financial statements denominated in
foreign currencies
6. Others
VI. Total comprehensive income 3,332,454,156.20 2,787,230,223.84
VII. 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 2018 to September 30th 2018
Unit: RMB
Item 2018 Q1~Q3 2017 Q1~Q3
I. Total operating income 33,802,691,201.11 27,729,742,158.18
Including: Operating income 33,802,691,201.11 27,729,742,158.18
Interest income
Premiums earned
Fees and commissions income
II. Total operating costs 27,215,340,568.93 22,170,841,572.33
Including: Operating costs 18,622,304,210.36 15,477,663,755.39
Interest expenses
Fees and commissions expenses
Surrender charge fee
Claims and policyholder benefits (net of
amounts recoverable from reinsurers)
Insurance contract reserves (net of
reinsurers’ share)
Insurance policyholder dividends
Expenses for reinsurance accepted
Business taxes and levies 281,941,341.25 276,908,073.14
Selling expenses 4,175,942,610.35 2,960,426,405.60
Administrative expenses 960,293,296.63 569,994,387.84
R&D expenses 3,077,722,956.20 2,292,071,002.00
Financial expenses -367,680,813.03 218,299,111.47
Including: Interest expenses 131,591,884.36 93,957,230.91
27
Hikvision 2018 Q3 Report
Item 2018 Q1~Q3 2017 Q1~Q3
Interest income 323,231,227.64 171,304,498.13
Impairment losses of assets 464,816,967.17 375,478,836.89
Add: Other income 1,417,431,530.21 1,040,078,811.54
Investment income (Loss is indicated by "－") 61,182,269.35 46,547,777.20
Including: Income from investments in
-1,618,218.28 3,502,450.80
associates and joint ventures
Gains from changes in fair values (Losses are
5,191,145.93 38,626,739.56
indicated by "－")
Foreign exchange gains (Losses are indicated
by “－”)
Gains from disposal of assets (Losses are
3,972,499.20 2,820,089.76
indicated by “－”)
III. Operating profit (Loss is indicated by
8,075,128,076.87 6,686,974,003.91
"－")
Add: Non-operating income 115,369,165.70 99,370,915.16
Less: Non-operating expenses 6,713,135.08 2,787,256.22
IV. Total profit (total losses expressed with "-") 8,183,784,107.49 6,783,557,662.85
Less: Income tax expenses 836,093,959.57 662,436,664.14
V. Net profit (net loss expressed with "-") 7,347,690,147.92 6,121,120,998.71
(3) Net profit on continuous operation (net losses
7,347,690,147.92 6,121,120,998.71
expressed with "-")
(4) Net profit on terminated operation (net losses
expressed with "-")
Net profit attributable to owners of parent company 7,395,803,151.00 6,152,814,186.52
Profit or loss attributable to minority interests -48,113,003.08 -31,693,187.81
VI. Other comprehensive income, net of income tax -27,278,644.78 -5,423,522.89
Other comprehensive income attributable to owners
-25,721,402.30 393,383.74
of the Company, net of tax
(I) Items that are not reclassified 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
(II) Other comprehensive income to be reclassified to
-25,721,402.30 393,383.74
profit or loss
1. Amounts of other comprehensive income that are
able to be transferred into profit or loss under
equity method
2. Gain or losses attributes to the changes in fair
value of available-for-sale financial assets
28
Hikvision 2018 Q3 Report
Item 2018 Q1~Q3 2017 Q1~Q3
3. Gains or losses through reclassifying
held-to-maturity financial assets to
available-for-sale financial assets
4.The effective part of gains and losses on cash flow
hedging
5. Exchange differences arising on conversion of
financial statements denominated in foreign -25,721,402.30 393,383.74
currencies
6. Others
Other comprehensive income attributable to
-1,557,242.48 -5,816,906.63
minority interests, net of tax
VII. Total comprehensive income 7,320,411,503.14 6,115,697,475.82
Total comprehensive income attributable to owners
7,370,081,748.70 6,153,207,570.26
of the parent company
Total comprehensive income attributable to
-49,670,245.56 -37,510,094.44
minority interests
VIII. Earnings per share
(I) Basic earnings per share 0.806 0.671
(II) Diluted earnings per share 0.804 0.673
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 2018 to September 30th 2018
Unit: RMB
Item 2018 Q1~Q3 2017 Q1~Q3
I. Total operating income 15,464,499,573.18 13,028,365,700.13
Less: Operating Costs 4,417,272,352.25 4,006,666,044.52
Business taxes and levies 199,390,389.05 182,107,831.11
Selling expenses 1,961,637,326.64 1,380,249,988.98
Administrative expenses 452,964,347.64 205,389,899.54
R R&D expenses 2,233,528,649.02 1,735,982,328.58
Financial expenses -94,069,779.21 -151,720,746.96
Including: Interest expenses 60,724,467.42 15,822,806.87
Interest income 288,800,852.06 143,980,819.43
Impairment losses of assets 280,144,626.30 299,691,053.22
Add: Other income 1,230,024,234.53 997,732,905.65
Investment income (Loss is indicated by "－") 86,657,634.81 29,045,580.78
Including: Income from investments in -387,572.76 3,248,710.08
29
Hikvision 2018 Q3 Report
Item 2018 Q1~Q3 2017 Q1~Q3
associates and joint ventures
Gains from changes in fair values (Losses are
50,744,609.92
indicated by "－")
Gains from disposal of assets (Loss is indicated
3,807,041.30 2,558,331.33
by "－")
II. Operating profit (loss is indicated by "－") 7,334,120,572.13 6,450,080,728.82
Add: Non-operating income 55,046,967.74 43,305,368.62
Less: Non-operating expenses 1,137,844.51 1,592,024.50
III. Total profit (total loss is indicated by "－") 7,388,029,695.36 6,491,794,072.94
Less: Income tax expenses 635,642,395.80 603,705,435.66
IV. Net profit (Net loss is indicated by "－") 6,752,387,299.56 5,888,088,637.28
(3) Net profit on continuous operation (net losses
6,752,387,299.56 5,888,088,637.28
expressed with "-")
(4) Net profit on terminated operation (net losses
expressed with "-")
V. Other comprehensive income, net of income tax
(I) Items that are not reclassified 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
(II) Other comprehensive income to be reclassified
to profit or loss
1. Amounts of other comprehensive income
that are able to be transferred into profit or
loss under equity method
2. Gain or losses attributes to the changes in fair
value of available-for-sale financial assets
3. Gains or losses through reclassifying
held-to-maturity financial assets to
available-for-sale financial assets
4.The effective part of gains and losses on cash
flow hedging
5. Exchange differences arising on conversion
of financial statements denominated in
foreign currencies
6. Others
VI. Total comprehensive income 6,752,387,299.56 5,888,088,637.28
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
30
Hikvision 2018 Q3 Report
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
7. Consolidated Cash Flow Statement from January 1st 2018 to September 30th 2018
Unit: RMB
Item 2018 Q1~Q3 2017 Q1~Q3
I. Cash flows from operating activities:
Cash received from sale of goods
36,015,579,775.66 27,024,807,952.59
or rendering of services
Net increase in customer deposits and deposits
from banks and other financial institutions
Net increase in borrowings from central bank
Net increase in placements from other financial
institutions
Cash receipts from premiums under direct
insurance contracts
Net cash receipts from reinsurance business
Net increase in the insurance deposit and
investment fund
Net cash receipts from disposal of financial assets
measured by fair value that changes in fair value
would be recognized in the current period gains
and losses
Cash received from interests, fees
and commissions
Net increase in capital taking from other banks
Net increase in capital from repurchase
arrangements
Refund of tax and levies 2,665,907,552.39 2,115,509,024.59
Other cash received relating to
765,226,775.70 311,501,723.20
operating activities
Sub-total of cash inflows from operating activities 39,446,714,103.75 29,451,818,700.38
Cash payments for goods purchased and services
24,879,653,623.03 21,162,642,985.71
received
Net increase in loans and advances
to customers
Net increase in balance with the central bank and
due to banks and other financial institutions
Cash payments for claims and policyholders'
benefits under direct insurance contracts
Cash paid for interests, fees and commissions
Cash payment for insurance policy dividends
31
Hikvision 2018 Q3 Report
Item 2018 Q1~Q3 2017 Q1~Q3
Cash paid to and on behalf of employees 5,182,379,464.21 3,498,922,254.19
Payments of various types of taxes 3,379,293,442.87 2,506,554,948.17
Other cash paid relating to operating activities 3,359,116,276.14 2,187,848,941.55
Sub-total of cash outflows from operating activities 36,800,442,806.25 29,355,969,129.62
Net Cash Flow from Operating Activities 2,646,271,297.50 95,849,570.76
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
4,390,000,000.00 5,173,000,000.00
investments
Cash receipts from investment income 63,310,521.07 54,914,031.53
Net cash receipts from disposals of fixed assets,
7,061,204.25 16,707,465.48
intangible assets and other long-term assets
Net cash receipts from disposals of subsidiaries
and other business units
Other cash received relating to
21,501,640.52 3,146,041.25
investing activities
Sub-total of cash inflows from investing activities 4,481,873,365.84 5,247,767,538.26
Cash payments to acquire or construct fixed assets,
2,045,279,305.07 985,865,888.00
intangible assets and other long-term assets
Cash paid to acquire investments 1,100,000,000.00 1,506,630,800.00
Net increase in pledged loans receivables
Net cash payments for acquisitions of subsidiaries
31,900,000.00 98,000,000.00
and other business units
Other cash paid relating to
8,327,789.17 0.00
investing activities
Sub-total of cash outflows from investing activities 3,185,507,094.24 2,590,496,688.00
Net Cash Flow from Investment Activities 1,296,366,271.60 2,657,270,850.26
III. Cash flows from financing activities:
Cash receipts from capital contributions 93,009,000.00 62,024,653.20
Including: cash received by subsidiaries from
93,009,000.00 62,024,653.20
capital contributions from minority owners
Cash receipts from borrowings 6,848,374,132.18 5,437,295,986.43
Cash receipts from bond issue
Other cash receipts relating to
1,492,209,115.48
financing activities
Sub-total of cash inflows from financing activities 6,941,383,132.18 6,991,529,755.11
Cash repayments of amounts borrowed 4,796,975,777.05 4,559,910,249.53
Cash payments for distribution of dividends or
4,744,090,779.74 3,793,627,103.59
profits or settlement of interest expenses
Including: payments for distribution of dividends
32
Hikvision 2018 Q3 Report
Item 2018 Q1~Q3 2017 Q1~Q3
or profits to minority owners of subsidiaries
Other cash payments relating to financing
6,555,746.33 1,630,518,738.29
activities
Sub-total of cash outflows from financing activities 9,547,622,303.12 9,984,056,091.41
Net Cash Flow from Financing Activities -2,606,239,170.94 -2,992,526,336.30
IV. Effect of Foreign Exchange Rate Changes on
190,798,684.33 -337,914,494.84
Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 1,527,197,082.49 -577,320,410.12
Add: Opening balance of Cash and Cash Equivalents 16,029,185,269.17 13,522,337,697.28
VI. Closing Balance of Cash and Cash Equivalents 17,556,382,351.66 12,945,017,287.16
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 1 st 2018 to September 30th
2018
Unit: RMB
Item 2018 Q1~Q3 2017 Q1~Q3
I. Cash Flows from Operating Activities::
Cash receipts from the sale of goods and the
14,907,717,914.68 9,384,051,521.72
rendering of services
Refund of tax and levies 1,230,024,234.53 997,732,905.65
Other cash receipts relating to operating activities 432,099,258.49 229,260,124.67
Sub-total of cash inflows from operating activities 16,569,841,407.70 10,611,044,552.04
Cash payments for goods acquired
5,186,391,543.22 3,469,498,225.96
and services received
Cash payments to and on behalf of employees 2,728,678,859.56 1,925,850,223.65
Payments of all types of taxes 2,515,330,361.54 2,202,877,884.71
Other cash payments relating to operating
1,862,352,721.51 1,323,221,056.02
activities
Sub-total of cash outflows from operating activities 12,292,753,485.83 8,921,447,390.34
Net Cash Flow from Operating Activities 4,277,087,921.87 1,689,597,161.70
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
4,350,000,000.00 5,170,000,000.00
investments
Cash receipts from investment income 97,039,236.04 41,937,763.80
Net cash receipts from disposals of fixed assets,
9,584,879.25 7,676,944.32
intangible assets and other long-term assets
Net cash receipts from disposals of subsidiaries
5,971.53 70,271.21
and other business units
33
Hikvision 2018 Q3 Report
Item 2018 Q1~Q3 2017 Q1~Q3
Other cash receipts relating to investing activities 920,896,354.89 852,552,973.35
Sub-total of cash inflows from investing activities 5,377,526,441.71 6,072,237,952.68
Cash payments to acquire or construct fixed assets,
434,905,794.49 417,737,223.06
intangible assets and other long-term assets
Cash payments to acquire investments 1,100,000,000.00 1,504,235,113.00
Net cash payments for acquisitions of subsidiaries
765,183,014.00 1,077,486,527.00
and other business units
Other cash payments relating to investing activities 775,777,777.23 1,038,113,091.31
Sub-total of cash outflows from investing activities 3,075,866,585.72 4,037,571,954.37
Net Cash Flow from Investment Activities 2,301,659,855.99 2,034,665,998.31
III. Cash Flows from Financing Activities
Cash receipts from capital contributions
Cash receipts from borrowings 900,000,000.00 300,000,000.00
Cash receipts from issue of bonds
Other cash receipts relating to financing activities 41,000.00
Sub-total of cash inflows from financing activities 900,000,000.00 300,041,000.00
Cash repayments of amounts
900,000,000.00 300,000,000.00
borrowed
Cash payments for distribution of dividends or
4,668,001,510.29 3,715,492,679.55
profits or settlement of interest expenses
Other cash payments relating to financing
6,555,746.33 15,151,512.29
activities
Sub-total of cash outflows from financing activities 5,574,557,256.62 4,030,644,191.84
Net Cash Flow from Financing Activities -4,674,557,256.62 -3,730,603,191.84
IV. Effect of foreign exchange rate changes on cash
100,499,959.08 -71,328,208.84
and cash equivalents
V. Net increase in cash and cash equivalents 2,004,690,480.32 -77,668,240.67
Add: Beginning balance of cash
12,304,082,533.11 10,245,969,003.13
and cash equivalents
VI. Closing Balance of Cash and Cash Equivalents 14,308,773,013.43 10,168,300,762.46
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
34
Hikvision 2018 Q3 Report
4.2 Audit Report
Whether audit has been performed on this 2018 3rd Quarter Report
□ Yes √ No
The Company’s 2018 3rd Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
October 20th 2018
Note: This document is a translated version of the Chinese version 2018 Q3 Financial Report
(“2018 年第三季度报告全文”), and the published Q3 report in the Chinese version shall prevail.
The complete published Chinese 2018 Q3 Financial Report may be obtained at
http://www.cninfo.com.cn.
35
