HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2019 Quarter 1 Report
January to March 2019
April 20th 2019
Hikvision 2019 Q1 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.
The Company’s chairman Chen Zongnian, and director Gong Hongjia, Qu
Liyang, Hu Yangzhong, Wu Weiqi, independent director Lu Jianzhong, Wang
Zhidong attended the board meeting to review this report in person. Independent
director Cheng Tianzong and Hong Tianfeng were unable to attend the board meeting
in person due to personal reasons, and authorized independent director Wang Zhidong
and Lu Jianzhong to attend and exercise the voting right on their behalf respectively.
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 2019 Q1 Financial Report (“2019 年第
一季度报告全文”), and the published Q1 report in the Chinese version shall prevail. The complete
published Chinese 2019 Q1 Financial Report may be obtained at http://www.cninfo.com.cn.
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Hikvision 2019 Q1 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 2018
At March 31st 2019 At December 31st 2018
and March 31st 2019
Total assets (RMB) 60,547,762,104.60 63,484,352,233.42 -4.63%
Net assets attributable to shareholders of the Company
39,223,726,364.46 37,590,154,638.46 4.35%
(RMB)
YoY Change(%) between 2018 Q1 and
2019 Q1 2018 Q1
2019 Q1
Operating income (RMB) 9,942,448,619.42 9,364,828,201.00 6.17%
Net profits attributable to shareholders of the Company
1,536,118,222.96 1,815,964,569.77 -15.41%
(RMB)
Net profits attributable to shareholders of the Company
1,482,828,488.96 1,808,323,790.71 -18.00%
excluding non-recurring gains and losses (RMB)
Net cash flows from operating activities (RMB) -3,038,198,689.80 -3,856,064,680.53 21.21%
Basic earnings per share (RMB/share) 0.168 0.199 -15.58%
Diluted earnings per share (RMB/share) 0.167 0.197 -15.23%
Weighted average Return on Equity (ROE) 4.00% 5.80% -1.80%
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Hikvision 2019 Q1 Report
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item January 1st –March 31st 2019
Profit or loss from disposal of non-current assets (including the write-off for the
408,476.41
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
41,713,087.45
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, derivative financial assets, held-for-trading financial liabilities, and
derivative financial liabilities; and investment income in disposal of
held-for-trading financial assets, derivative financial assets, held-for-trading 5,255,479.38
financial liabilities, derivative financial liabilities and other debt investments,
excluding the effective hedging business related to the regular business operation of
the Company.
Other non-operating income and expenditures except the items mentioned above 18,830,643.99
Less: Impact of income tax 12,384,274.82
The impact of the minority interests (after tax) 533,678.41
Total 53,289,734.00
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
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Hikvision 2019 Q1 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
186,407 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 39.08% 3,653,674,956 0 Pledged 50,000,000
Gong Hongjia Overseas individual 13.43% 1,255,056,700 941,292,525 Pledged 418,338,300
Hong Kong Securities Clearing Company Ltd.(HKSCC) Overseas corporation 9.41% 879,458,857 0 -
Xinjiang Weixun Investment Management Limited Domestic non-state-owned
4.82% 450,795,176 0 Pledged 179,832,999
Partnership corporation
Domestic non-state-owned
Xinjiang Pukang Investment Limited Partnership 1.95% 182,510,174 0 Pledged 72,570,000
corporation
Hu Yangzhong Domestic Individual 1.95% 182,186,477 136,639,858 Pledged 63,690,782
The 52nd Research Institute at China Electronics
State-owned corporation 1.93% 180,775,044 0 - -
Technology Group Corporation
Domestic non-state-owned
CITIC Securities Company Limited 0.73% 67,868,267 0 - -
corporation
UBS AG Overseas corporation 0.72% 66,987,946 0 - -
State-owned
Central Huijin Investment Ltd. 0.70% 65,818,800 0 - -
corporation
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Hikvision 2019 Q1 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
879,458,857 879,458,857
Ltd.(HKSCC)
Xinjiang Weixun Investment Management Limited
450,795,176 450,795,176
Partnership
Gong Hongjia 313,764,175 RMB ordinary shares 313,764,175
Xinjiang Pukang Investment Limited Partnership 182,510,174 RMB ordinary shares 182,510,174
The 52nd Research Institute at China Electronics RMB ordinary shares
180,775,044 180,775,044
Technology Group Corporation
CITIC Securities Company Limited 67,868,267 RMB ordinary shares 67,868,267
UBS AG 66,987,946 RMB ordinary shares 66,987,946
Central Huijin Investment Ltd. 65,818,800 RMB ordinary shares 65,818,800
Hu Yangzhong 45,546,619 RMB ordinary shares 45,546,619
China Electronics Technology HIK Group Co., Ltd. and The 52nd Research Institute at China Electronics Technology Group 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.
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Hikvision 2019 Q1 Report
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducts any
agreed buy-back in the reporting period?
□ Applicable √ Inapplicable
No such cases in the reporting period.
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable √ Inapplicable
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Hikvision 2019 Q1 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 March 31st Balance at December 31st
Item Change (%) Note of Changes
2019 (RMB) 2018 (RMB)
Financial assets at fair value through current According to the new financial instrument standards, the financial assets,
0.00 1,860,050.59 -100.00%
profit and loss which are measured at fair value through current profit or loss at the end of
the prior year, are adjusted to be presented under held-for-trading financial
Held-for-trading financial assets 9,437,149.64 0.00 100.00%
assets at the end of the current reporting period.
According to the new financial instrument standards, some of the notes
Other current assets 2,361,188,959.22 730,682,813.14 223.15% receivable of the Company at the end of the prior year were adjusted to
other current assets at the end of the current reporting period.
Available for sale financial assets 0.00 290,966,813.00 -100.00% According to the new financial instrument standards, the available-for-sale
financial assets of the Company at the end of the prior year were adjusted
to other non-current financial assets at the end of the current reporting
Other non-current financial assets 290,966,813.00 0.00 100.00%
period.
Long-term prepaid expenses for
22,996,190.27 0.00 100.00% Newly added house renovation costs for amortization
amortization
Financial liabilities at fair value through According to the new financial instrument standards, the financial
0.00 290,998.43 -100.00%
current profit and loss liabilities, which are measured at fair value through current profit or loss at
the end of the prior year, are adjusted to be presented under
Held-for-trading financial liabilities 4,641,808.18 0.00 100.00% held-for-trading financial liabilities at the end of the current reporting
period.
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Hikvision 2019 Q1 Report
Notes payable and accounts payable 7,128,014,060.23 10,765,145,485.74 -33.79% Increase in procurement payment due
Payroll payable 630,067,901.88 1,921,608,104.04 -67.21% The 2018 year-end bonus are distributed during the current quarter
Non-current liabilities due within one year 16,071,686.29 3,178,171,147.16 -99.49% Euro bond was due and paid-off during the current quarter
Long-term borrowings 4,240,800,000.00 440,000,000.00 863.82% Newly added foreign currency loans for long-term asset investments
Long-term payables 36,612,836.89 0.00 100.00% Payables for outstanding financing lease payments
Other payables 698,402,283.29 2,953,203,190.99 -76.35%
The shares for 2018 Restricted Incentive Stock Scheme were granted, and
Capital reserves 4,012,784,365.61 1,956,139,660.52 105.14% the investment funds were converted into share capital and capital reserve,
which led to a decrease in other payables and an increase in capital reserve.
Other current liabilities 2,422,883,636.78 364,984,759.94 563.83% Other current liabilities and treasury shares increased according to the
increase in the number of shares subject to sale restrictions.
Treasury stocks 2,422,883,636.78 364,984,759.94 563.83%
1.2 Explanation for variations in income statement items
Item 2019 Q1 (RMB) 2018 Q1 (RMB) YoY Change (%) Note of changes
Administrative expenses 339,835,080.69 260,406,184.32 30.50% Personnel growth
R&D expenses 1,059,175,176.03 734,653,289.03 44.17% Investments in R&D continues to increase
Financial expense 140,437,311.57 257,430,070.75 -45.45% Decrease in foreign exchange losses
Gains from changes in fair values 3,301,205.32 -42,253,561.30 107.81% Changes in fair value for foreign exchange hedging products
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Hikvision 2019 Q1 Report
1.3 Explanation for variations in cash flow statement items
Item 2019 Q1 (RMB) 2018 Q1 (RMB) YoY Change (%) Note of changes
Net cash flow from operating activities -3,038,198,689.80 -3,856,064,680.53 21.21% Increase in sales receipts during the current reporting period
Net cash flow from investing activities -447,200,463.78 -1,744,035,918.57 74.36% Reduced investment in principal-guaranteed bank financial products
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:
offering documents Zhejiang Haikang Group Co., Ltd (hereinafter referred to as Haikang Group October 29th Strict
CETHIK Group Co., Ltd. Long-term
or 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
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Hikvision 2019 Q1 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
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Hikvision 2019 Q1 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
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Hikvision 2019 Q1 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,
Limited Partnership（later renamed as Xinjiang May 17th Strict
supervisors and senior management personnel, the annual transfer of Long term
Weixun Investment Management Limited 2010 performance
Hikvision’s total shares should not exceed 25% of total number of shares
Partnership）
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 Limited
Commitments in transfer of Hikvision’s total shares should not exceed 25% of total number of May 17th Strict
Partnership（later renamed as Xinjiang Pukang Long term
Initial Public shares held under Pukang; whithin 6 months after abovementioned 2010 performance
Offering or Investment 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
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Hikvision 2019 Q1 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.
CETC Investment Holdin Co.,Ltd (CETCIH).;
Other commitments During the effective period of the implementation of CETCIH’s plan to Within 6
The 52nd Research Institute at China
rd rd
to the company's increase the holding of Hikvision (within 6 months from October 23 2018) October 23 months from Strict
Electronics Technology
minority and the statutory period, CETCIH will not reduce its shareholdings of 2018 October 23rd performance
Group Corporation; China Electronics
shareholders Hikvision 2018
Technology Group Co., Ltd.
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Hikvision 2019 Q1 Report
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
Whether the
commitments is Yes
fulfilled in time
4. Guidance on the Company’s operational result from January 1st 2019 to June 30th 2019
Guidance on the Company’s operational performance from January 1st 2019 to June 30th 2019: Net profits attributable to shareholders of the Company are positive,
and situation of turning losses into gains is not applicable.
Estimated YoY change (%) of net profits attributable to shareholders of the Company from
-10.00% to 10.00%
January 1st 2019 to June 30th 2019
Estimated variation interval of net profits attributable to shareholders of the Company from
373,265.60 to 456,213.51
January 1st 2019 to June 30th 2019 (0,000 RMB)
Net profits attributable to shareholders of the Company from January 1 st 2018 to June 30th
414,739.55
2018 (0,000 RMB)
Note of change in operational results The Company’s operating performance continues to have a solid 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
1,013,306,062.25 3,301,205.32 0.00 239,253,700.00 1,954,274.06 571,588,870.81 Company's own funds
instruments
Notes receivable 1,793,592,867.04 -16,820,536.48 1,776,772,330.56 Company's own funds
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Hikvision 2019 Q1 Report
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
Equity investments 290,966,813.00 290,966,813.00 Company's own funds
Total 3,097,865,742.29 3,301,205.32 -16,820,536.48 239,253,700.00 0.00 1,954,274.06 2,639,328,014.37 --
6. Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
No such case in the reporting period.
7. The Company’s funds used by the controlling shareholder or its related parties for non-operating purposes
□ Applicable √ Inapplicable
No such case in the reporting period.
8. Schedule for the reception activities including research, communication and interviews during the current reporting period
√ Applicable □ Inapplicable
8.1 Reception of research activities during 2019 Q1
Time of reception Method of reception Type of reception object Index of basic situation of the research
Site Research and telephone
From January 1st 2019 to January 11th 2019 Institutional investors CNINF, Investor Relations Activity Record: From January 1st 2019 to January 11th 2019
communication
Site Research and telephone
From January 14th 2019 to January 31st 2019 Institutional investors CNINF, Investor Relations Activity Record: From January 14th 2019 to January 31st 2019
communication
Site Research and telephone Institutional investors
From February 15th 2019 to March 1st 2019 CNINF, Investor Relations Activity Record: From February 15th 2019 to March 1st 2019
communication
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Hikvision 2019 Q1 Report
Time of reception Method of reception Type of reception object Index of basic situation of the research
Site Research and telephone Institutional investors
From March 4th 2019 to March 19th 2019 CNINF, Investor Relations Activity Record: From March 4th 2019 to March 19th 2019
communication
9.2 Participation of conferences for investor relationship activities during 2019 Q1
Time of conference Location Conference Name Type of reception object Method of reception
January 2019 Shanghai UBS 19th Greater China Conference 2019 All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
January 2019 Beijing Morgan Stanley 2019 China New Economy Summit All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
January 2019 Shenzhen 17th Annual dbAccess China Conference 2019 All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
February 2019 Hongkong Macquarie A-Share Technology Stock Conference All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
March 2019 Taibei Bank of America Merrill Lynch Asia TMT Conference All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
9.3 Investor relations activity statistics during 2019 Q1
Number of daily research received (On-site and telephone conference, times) 54
Number of institutional investors received (ppl) 220
Number of individual investors received (ppl) 0
Number of investor relations conference participated 5
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Hikvision 2019 Q1 Report
Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
Prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
March 31st 2019
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Cash and bank balances 23,689,219,537.88 26,552,402,711.23
Balances with clearing agencies
Lendings with banks and other financial
institutions
Held-for-trading financial assets 9,437,149.64 1,860,050.59
Financial assets at fair value through current profit
and loss
Derivative financial assets
Notes Receivable and Accounts Receivables 17,011,890,539.07 16,915,040,071.25
Including : Notes receivable 246,914,054.43 295,598,790.07
Accounts receivable 16,764,976,484.64 16,619,441,281.18
Prepayments 594,988,091.64 460,304,219.65
Premiums receivable
Amounts receivable under reinsurance contracts
Reinsurer's share of insurance contract reserves
Other receivables 552,495,647.23 586,748,265.21
Including: Interests receivable
Dividends receivable 17,357,220.31
Financial assets purchased under resale agreements
Inventories 5,862,542,965.33 5,725,104,153.41
Contract assets
Held-for-sale assets
Non-current assets due within one year 380,479,565.93 380,795,020.47
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Hikvision 2019 Q1 Report
Item Closing balance Opening balance
Other current assets 2,361,188,959.22 2,978,040,396.42
Total Current Assets 50,462,242,455.94 53,600,294,888.23
Non-current Assets:
Loans and advances to customers
Debt investments
Available-for-sale financial assets
Other debt investments
Held-to-maturity investments
Long-term receivables 743,455,496.30 705,512,368.17
Long-term equity investments 159,729,704.73 163,301,844.56
Other equity investments
Other non-current financial assets 290,966,813.00 290,966,813.00
Investment properties
Fixed assets 5,199,336,097.11 5,082,415,160.10
Construction in progress 486,435,856.27 416,092,413.42
Productive biological assets
Oil and gas assets
Right-to-use assets
Intangible assets 993,696,774.19 869,913,050.09
Development expenditures
Goodwill 209,382,366.79 212,269,337.23
Long-term prepaid expenses 22,996,190.27
Deferred tax assets 519,044,957.03 534,346,941.25
Other non-current assets 1,460,475,392.97 1,582,750,600.80
Total Non-current Assets 10,085,519,648.66 9,857,568,528.62
Total Assets 60,547,762,104.60 63,457,863,416.85
Current Liabilities:
Short-term borrowings 3,667,674,763.23 3,465,655,688.29
Loans from the central bank
Capitals taking from banks and other financial
institutions
Held-for-trading financial liabilities 4,641,808.18 290,998.43
Financial liabilities at fair value through current
profit and loss
Derivative financial liabilities
19
Hikvision 2019 Q1 Report
Item Closing balance Opening balance
Notes payable & Accounts payable 7,128,014,060.23 10,765,145,485.74
Receipts in advance 573,263,127.09 641,430,490.22
Financial assets sold under repurchase agreements
Customer deposits and deposits from banks and
other financial institutions
Funds from securities trading agency
Funds from underwriting securities agency
Payroll payable 630,067,901.88 1,921,608,104.04
Taxes payable 1,148,883,533.88 1,418,921,664.57
Other payables 698,402,283.29 2,953,203,190.99
Including: Interests payable
Dividends payable 73,091,258.74 119,917,640.92
Fees and commissions payable
Amounts payable under reinsurance contracts
Contract liabilities
Held-for-sale liabilities
Non-current liabilities due within one year 16,071,686.29 3,178,171,147.16
Other current liabilities 2,422,883,636.78 364,984,759.94
Total Current Liabilities 16,289,902,800.85 24,709,411,529.38
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings 4,240,800,000.00 440,000,000.00
Bonds payable
Including: Preferred share
Perpetual bond
Leasing liabilities
Long-term payables 36,612,836.89
Provisions 76,800,040.78 77,625,238.49
Deferred income 317,864,873.97 293,179,089.13
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 4,672,077,751.64 810,804,327.62
Total liabilities 20,961,980,552.49 25,520,215,857.00
Owners’ Equities
20
Hikvision 2019 Q1 Report
Item Closing balance Opening balance
Share capital 9,348,465,931.00 9,227,270,473.00
Other equity instruments
Including: Preferred share
Perpetual debt
Capital reserves 4,012,784,365.61 1,956,139,660.52
Less: Treasury stock 2,422,883,636.78 364,984,759.94
Other comprehensive income -72,767,416.81 -76,065,167.67
Surplus reserves 4,460,712,358.45 4,460,712,358.45
General risk reserve
Retained earnings 23,897,414,762.99 22,360,593,257.53
Total owners' equity attributable to owner of the
39,223,726,364.46 37,563,665,821.89
Company
Minority interests 362,055,187.65 373,981,737.96
Total owners' equity 39,585,781,552.11 37,937,647,559.85
Total liabilities and owners' equity 60,547,762,104.60 63,457,863,416.85
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 18,863,944,733.97 19,192,461,228.22
Held-for-trading financial assets
Financial assets at fair value through current profit
and loss
Derivative financial assets
Notes receivable & Accounts receivable 22,132,138,034.55 15,325,923,955.48
Including: Notes receivable 72,902,964.58 121,404,793.77
Accounts receivable 22,059,235,069.97 15,204,519,161.71
Prepayments 195,780,892.75 132,344,929.55
Other receivables 831,724,252.68 522,987,955.34
Including: Interests receivable
Dividends receivable 19,907,220.31 2,550,000.00
Inventories 66,335,666.02 168,885,723.93
21
Hikvision 2019 Q1 Report
Item Closing balance Opening balance
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 179,471,590.77 321,871,615.09
Total Current Assets 42,269,395,170.74 35,664,475,407.61
Non-current Assets:
Debt investments
Available-for-sale financial assets
Other debt investments
Held-to-maturity investments
Long-term receivables
Long-term equity investments 4,382,145,555.87 4,361,147,395.90
Other equity investments
Other non-current financial assets 290,956,813.00 290,956,813.00
Investment properties
Fixed assets 2,848,146,704.92 2,844,176,300.34
Construction in progress 76,816,992.24 65,156,482.70
Productive biological assets
Oil and gas assets
Right-to-use assets
Intangible assets 205,106,707.93 197,147,608.73
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets 221,779,547.02 221,779,547.02
Other non-current assets 3,045,101.70 14,601,579.55
Total Non-Current Assets 8,027,997,422.68 7,994,965,727.24
Total Assets 50,297,392,593.42 43,659,441,134.85
Current Liabilities:
Short-term borrowings 200,000,000.00
Held-for-trading financial liabilities
Financial liabilities at fair value through current
profit and loss
Derivative financial liabilities
22
Hikvision 2019 Q1 Report
Item Closing balance Opening balance
Notes payable & Accounts payable 321,500,523.87 356,787,605.91
Receipts in advance 173,076,335.61 204,337,524.21
Contract liabilities
Payroll payables 487,392,910.14 1,272,626,004.95
Taxes payables 837,251,221.99 987,057,652.70
Other payables 6,357,906,472.47 2,529,600,057.31
Including: Interests payable
Dividends payable 70,641,258.74 117,467,640.92
Held-for-sale liabilities
Non-current liabilities due within one year 3,172,727,888.37
Other current liabilities 2,422,883,636.78 364,984,759.94
Total Current Liabilities 10,800,011,100.86 8,888,121,493.39
Non-Current Liabilities:
Long-term borrowings 3,016,800,000.00
Bonds payable
Including: Preferred share
Perpetual bond
Leasing liabilities
Long-term payables
Provisions 52,956,535.09 52,956,535.09
Deferred income 158,337,775.51 186,747,708.01
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 3,228,094,310.60 239,704,243.10
Total liabilities 14,028,105,411.46 9,127,825,736.49
Owners' equity
Share capital 9,348,465,931.00 9,227,270,473.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 3,945,030,120.97 1,883,262,407.46
Less: Treasury share 2,422,883,636.78 364,984,759.94
Other comprehensive income -2,209,479.93 -2,178,538.52
23
Hikvision 2019 Q1 Report
Item Closing balance Opening balance
Surplus reserves 4,460,712,358.45 4,460,712,358.45
Retained earnings 20,940,171,888.25 19,327,533,457.91
Total owners' equity 36,269,287,181.96 34,531,615,398.36
Total liabilities and owners' equity 50,297,392,593.42 43,659,441,134.85
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
3. Consolidated Income Statement
Unit: RMB
Item 2019 Q1 2018 Q1
I. Total operating income 9,942,448,619.42 9,364,828,201.00
Including: Operating income 9,942,448,619.42 9,364,828,201.00
Interest income
Premiums earned
Fees and commissions income
II. Total operating costs 8,459,559,903.73 7,601,579,147.44
Including: Operating costs 5,485,765,941.97 5,144,866,014.52
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 77,337,440.61 70,291,380.92
Selling expenses 1,317,557,509.65 1,084,628,143.59
Administrative expenses 339,835,080.69 260,406,184.32
R&D expenses 1,059,175,176.03 734,653,289.03
Financial expenses 140,437,311.57 257,430,070.75
Including: Interest expenses 55,224,699.96 60,245,855.52
Interest income 152,237,461.48 128,780,160.00
Impairment losses of assets 2,541,417.08 49,304,064.31
Credit impairment losses 36,910,026.13
24
Hikvision 2019 Q1 Report
Item 2019 Q1 2018 Q1
Add: Other income 339,329,038.35 398,225,011.54
Investment income (Loss is indicated by "－") 15,739,354.54 21,904,699.06
Including: Income from investments in
-3,572,139.83 342,772.48
associates and joint ventures
Foreign exchange gains (Losses are indicated
by “－”)
Gains from hedging of net exposure (Losses
are indicated by "－")
Gains from changes in fair values (Losses are
3,301,205.32 -42,253,561.30
indicated by "－")
Gains from disposal of assets (Losses are
408,476.41 3,430,565.03
indicated by “－”)
III. Operating profit (Loss is indicated by
1,841,666,790.31 2,144,555,767.89
"－")
Add: Non-operating income 20,519,688.26 13,022,792.29
Less: Non-operating expenses 2,085,124.56 1,536,336.10
IV. Total profit (total losses expressed with "-") 1,860,101,354.01 2,156,042,224.08
Less: Income tax expenses 342,176,314.58 373,754,038.72
V. Net profit (net loss expressed with "-") 1,517,925,039.43 1,782,288,185.36
1．Classified by business continuity
(1) Net profit on continuous operation (net
1,517,925,039.43 1,782,288,185.36
losses expressed with "-")
(2) Net profit on terminated operation (net
losses expressed with "-")
2. Classified by ownership
(1) Net profit attributable to owners of parent
1,536,118,222.96 1,815,964,569.77
company
(2) Profit or loss attributable to minority
-18,193,183.53 -33,676,384.41
interests
VI. Other comprehensive income, net of income tax 3,421,375.11 15,159,851.45
Other comprehensive income attributable to owners
3,297,750.86 17,152,186.03
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
3. Changes in fair value of other equity instruments
investment
4. Changes in the fair value of the Company's own
credit risk
25
Hikvision 2019 Q1 Report
Item 2019 Q1 2018 Q1
5. Others
(II) Other comprehensive income to be reclassified to
3,297,750.86 17,152,186.03
profit or loss
1. Amounts of other comprehensive income that are
able to be transferred into profit or loss under
equity method
2. Changes in fair value of other debt investments
3. Gain or losses attributes to the changes in fair
value of available-for-sale financial assets
4. The amount of financial assets reclassified into
other comprehensive income
5. Gains or losses through reclassifying
held-to-maturity financial assets into
available-for-sale financial assets
6. Credit impairment provisions for other debt
investments
7. Cash flow hedge reserve
8. Exchange differences arising on conversion of
financial statements denominated in foreign -6,370,529.23 17,152,186.03
currencies
9. Gains and losses from changes in fair value of
9,668,280.09
other current assets
10. Others
Other comprehensive income attributable to minority
123,624.25 -1,992,334.58
interests, net of tax
VII. Total comprehensive income 1,521,346,414.54 1,797,448,036.81
Total comprehensive income attributable to owners
1,539,415,973.82 1,833,116,755.80
of the parent company
Total comprehensive income attributable to
-18,069,559.28 -35,668,718.99
minority interests
VIII. Earnings per share
(I) Basic earnings per share 0.168 0.199
(II) Diluted earnings per share 0.167 0.197
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 2019 Q1 2018 Q1
I. Total operating income 4,377,811,528.72 3,928,907,152.63
Less: Operating Costs 1,280,978,910.20 1,169,938,051.45
Business taxes and levies 52,619,746.17 51,940,799.46
26
Hikvision 2019 Q1 Report
Item 2019 Q1 2018 Q1
Selling expenses 595,502,558.08 476,356,746.70
Administrative expenses 146,822,872.04 102,594,537.11
R R&D expenses 754,601,871.17 465,592,061.36
Financial expenses -32,942,250.80 146,185,915.34
Including: Interest expenses 31,341,521.92 44,495,750.95
Interest income 139,063,199.07 121,694,763.43
Impairment losses of assets
Credit impairment losses 3,691,052.90
Add: Other income 300,013,588.73 365,167,317.80
Investment income (Loss is indicated by "－") 14,758,099.27 -5,689,637.96
Including: Income from investments in
-2,599,121.60 342,772.48
associates and joint ventures
Gains from hedging of net exposure (Loss is
indicated by "－")
Gains from changes in fair values (Losses are
indicated by "－")
Gains from disposal of assets (Loss is indicated
83,734.40 3,494,397.51
by "－")
II. Operating profit (loss is indicated by "－") 1,891,392,191.36 1,879,271,118.56
Add: Non-operating income 5,055,004.45 2,193,088.96
Less: Non-operating expenses 941,317.88 346,091.67
III. Total profit (total loss is indicated by "－") 1,895,505,877.93 1,881,118,115.85
Less: Income tax expenses 283,570,730.09 281,964,253.80
IV. Net profit (Net loss is indicated by "－") 1,611,935,147.84 1,599,153,862.05
(1) Net profit on continuous operation (net losses
1,611,935,147.84 1,599,153,862.05
expressed with "-")
(2) Net profit on terminated operation (net losses
expressed with "-")
V. Other comprehensive income, net of income tax -30,941.41
(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
3. Changes in fair value of other equity instruments
investment
4. Changes in the fair value of the Company's own
credit risk
27
Hikvision 2019 Q1 Report
Item 2019 Q1 2018 Q1
5. Others
(II) Other comprehensive income to be reclassified
-30,941.41
to profit or loss
1. Amounts of other comprehensive income that are
able to be transferred into profit or loss under
equity method
2. Changes in fair value of other debt investments
3. Gain or losses attributes to the changes in fair
value of available-for-sale financial assets
4. The amount of financial assets reclassified into
other comprehensive income
5. Gains or losses through reclassifying
held-to-maturity financial assets into
available-for-sale financial assets
6. Credit impairment provisions for other debt
investments
7. Cash flow hedge reserve
8. Exchange differences arising on conversion of
financial statements denominated in foreign
currencies
9. Gains and losses from changes in fair value of
-30,941.41
other current assets
10. Others
VI. Total comprehensive income 1,611,904,206.43 1,599,153,862.05
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 Cash Flow Statement
Unit: RMB
Item 2019 Q1 2018 Q1
I. Cash flows from operating activities:
Cash received from sale of goods
11,410,249,255.26 8,750,853,665.71
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
28
Hikvision 2019 Q1 Report
Item 2019 Q1 2018 Q1
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
Net cash received from trading securities
Refund of tax and levies 830,266,831.46 900,802,467.84
Other cash received relating to
209,492,317.37 1,066,892,836.74
operating activities
Sub-total of cash inflows from operating activities 12,450,008,404.09 10,718,548,970.29
Cash payments for goods purchased and services
9,892,084,287.80 9,646,942,783.62
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
Net increase in financial assets held for trading
purposes
Net increase in lending to banks and other financial
institutions
Cash paid for interests, fees and commissions
Cash payment for insurance policy dividends
Cash paid to and on behalf of employees 2,928,612,571.38 2,157,265,649.41
Payments of various types of taxes 1,659,735,081.63 1,270,538,915.89
Other cash paid relating to operating activities 1,007,775,153.08 1,499,866,301.90
Sub-total of cash outflows from operating activities 15,488,207,093.89 14,574,613,650.82
Net Cash Flow from Operating Activities -3,038,198,689.80 -3,856,064,680.53
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
150,000,000.00
investments
29
Hikvision 2019 Q1 Report
Item 2019 Q1 2018 Q1
Cash receipts from investment income 21,561,926.58
Net cash receipts from disposals of fixed assets,
2,029,190.08 8,085,072.84
intangible assets and other long-term assets
Net cash receipts from disposals of subsidiaries
6,909,760.56
and other business units
Other cash received relating to
1,344,387.34 5,502,905.57
investing activities
Sub-total of cash inflows from investing activities 10,283,337.98 185,149,904.99
Cash payments to acquire or construct fixed assets,
382,139,108.19 822,308,036.28
intangible assets and other long-term assets
Cash paid to acquire investments 1,100,000,000.00
Net increase in pledged loans receivables
Net cash payments for acquisitions of subsidiaries
and other business units
Other cash paid relating to
75,344,693.57 6,877,787.28
investing activities
Sub-total of cash outflows from investing activities 457,483,801.76 1,929,185,823.56
Net Cash Flow from Investing Activities -447,200,463.78 -1,744,035,918.57
III. Cash flows from financing activities:
Cash receipts from capital contributions 1,020,000.00 127,400.00
Including: cash received by subsidiaries from
capital contributions from minority owners
Cash receipts from borrowings 5,211,271,526.27 1,419,781,375.02
Cash receipts from bond issue
Other cash receipts relating to
financing activities
Sub-total of cash inflows from financing activities 5,212,291,526.27 1,419,908,775.02
Cash repayments of amounts borrowed 1,149,914,953.81 304,081,731.11
Cash repayments of bonds 3,079,240,000.00
Cash payments for distribution of dividends or
85,277,545.11 91,048,231.17
profits or settlement of interest expenses
Including: payments for distribution of dividends
or profits to minority owners of subsidiaries
Other cash payments relating to financing
2,095,080.00 6,555,746.33
activities
Sub-total of cash outflows from financing activities 4,316,527,578.92 401,685,708.61
Net Cash Flow from Financing Activities 895,763,947.35 1,018,223,066.41
IV. Effect of Foreign Exchange Rate Changes on
-322,299,460.18 -332,933,205.11
Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents -2,911,934,666.41 -4,914,810,737.80
30
Hikvision 2019 Q1 Report
Item 2019 Q1 2018 Q1
Add: Opening balance of Cash and Cash Equivalents 26,023,738,992.19 16,029,010,345.59
VI. Closing Balance of Cash and Cash Equivalents 23,111,804,325.78 11,114,199,607.79
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2019 Q1 2018 Q1
I. Cash Flows from Operating Activities::
Cash receipts from the sale of goods and the
1,728,586,413.34 1,502,210,097.61
rendering of services
Refund of tax and levies 269,765,182.91 350,404,780.81
Other cash receipts relating to operating activities 167,939,793.53 207,055,033.36
Sub-total of cash inflows from operating activities 2,166,291,389.78 2,059,669,911.78
Cash payments for goods acquired
435,382,368.46 1,659,187,618.03
and services received
Cash payments to and on behalf of employees 1,706,007,499.64 1,229,827,502.82
Payments of all types of taxes 1,065,301,762.99 1,016,007,421.93
Other cash payments relating to operating
546,402,252.58 249,104,754.08
activities
Sub-total of cash outflows from operating activities 3,753,093,883.67 4,154,127,296.86
Net Cash Flow from Operating Activities -1,586,802,493.89 -2,094,457,385.08
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
150,000,000.00
investments
Cash receipts from investment income 3,961,618.03
Net cash receipts from disposals of fixed assets,
1,699,547.18 8,003,034.22
intangible assets and other long-term assets
Net cash receipts from disposals of subsidiaries
22,061,775.64 5,971.53
and other business units
Other cash receipts relating to investing activities 1,690,715,119.13 4,231,842,800.02
Sub-total of cash inflows from investing activities 1,714,476,441.95 4,393,813,423.80
Cash payments to acquire or construct fixed assets,
84,514,098.16 196,125,986.75
intangible assets and other long-term assets
Cash payments to acquire investments 1,100,000,000.00
Net cash payments for acquisitions of subsidiaries
10,000,000.00 33,000,000.00
and other business units
Other cash payments relating to investing activities 300,811,908.38 4,761,278,790.32
31
Hikvision 2019 Q1 Report
Item 2019 Q1 2018 Q1
Sub-total of cash outflows from investing activities 395,326,006.54 6,090,404,777.07
Net Cash Flow from Investing Activities 1,319,150,435.41 -1,696,591,353.27
III. Cash Flows from Financing Activities
Cash receipts from capital contributions
Cash receipts from borrowings 3,279,240,000.00 500,000,000.00
Cash receipts from issue of bonds
Other cash receipts relating to financing activities
Sub-total of cash inflows from financing activities 3,279,240,000.00 500,000,000.00
Cash repayments of amounts
3,079,240,000.00
borrowed
Cash payments for distribution of dividends or
64,608,843.51 75,745,723.19
profits or settlement of interest expenses
Other cash payments relating to financing
2,095,080.00 6,555,746.33
activities
Sub-total of cash outflows from financing activities 3,145,943,923.51 82,301,469.52
Net Cash Flow from Financing Activities 133,296,076.49 417,698,530.48
IV. Effect of foreign exchange rate changes on cash
-195,291,375.88 -148,871,705.11
and cash equivalents
V. Net increase in cash and cash equivalents -329,647,357.87 -3,522,221,912.98
Add: Beginning balance of cash
18,998,934,287.59 12,304,082,533.11
and cash equivalents
VI. Closing Balance of Cash and Cash Equivalents 18,669,286,929.72 8,781,860,620.13
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
32
Hikvision 2019 Q1 Report
4.2 Note on financial statement adjustments
1. The first implementation of the new financial instruments guidelines, new income standards, new lease standards; and the
adjustments on the financial statements at the beginning of the year for the first implementation.
√ Applicable □Not applicable
Consolidated Balance Sheet
Unit: RMB
Item December 31st 2018 January 1st 2019 Adjusted amount
Current Assets:
Cash and bank balances 26,552,402,711.23 26,552,402,711.23 0.00
Balances with clearing agencies
Lendings with banks and other financial institutions
Held-for-trading financial assets Not applicable 1,860,050.59 1,860,050.59
Financial assets at fair value through current profit and loss 1,860,050.59 Not applicable -1,860,050.59
Derivative financial assets
Notes Receivable and Accounts Receivables 19,188,886,471.10 16,915,040,071.25 -2,273,846,399.85
Including : Notes receivable 2,569,445,189.92 295,598,790.07 -2,273,846,399.85
Accounts receivable 16,619,441,281.18 16,619,441,281.18 0.00
Prepayments 460,304,219.65 460,304,219.65 0.00
Premiums receivable
Amounts receivable under reinsurance contracts
Reinsurer's share of insurance contract reserves
Other receivables 586,748,265.21 586,748,265.21 0.00
Including: Interests receivable
33
Hikvision 2019 Q1 Report
st st
Item December 31 2018 January 1 2019 Adjusted amount
Dividends receivable
Financial assets purchased under resale agreements
Inventories 5,725,104,153.41 5,725,104,153.41 0.00
Contract assets Not applicable
Held-for-sale assets
Non-current assets due within one year 380,795,020.47 380,795,020.47 0.00
Other current assets 730,682,813.14 2,978,040,396.42 2,247,357,583.28
Total Current Assets 53,626,783,704.80 53,600,294,888.23 -26,488,816.57
Non-current Assets:
Loans and advances to customers
Debt investments Not applicable
Available-for-sale financial assets 290,966,813.00 Not applicable -290,966,813.00
Other debt investments Not applicable
Held-to-maturity investments Not applicable
Long-term receivables 705,512,368.17 705,512,368.17 0.00
Long-term equity investments 163,301,844.56 163,301,844.56 0.00
Other equity investments Not applicable
Other non-current financial assets Not applicable 290,966,813.00 290,966,813.00
Investment properties
Fixed assets 5,082,415,160.10 5,082,415,160.10 0.00
Construction in progress 416,092,413.42 416,092,413.42 0.00
Productive biological assets
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Hikvision 2019 Q1 Report
st st
Item December 31 2018 January 1 2019 Adjusted amount
Oil and gas assets
Right-to-use assets Not applicable
Intangible assets 869,913,050.09 869,913,050.09 0.00
Development expenditures
Goodwill 212,269,337.23 212,269,337.23 0.00
Long-term prepaid expenses
Deferred tax assets 534,346,941.25 534,346,941.25 0.00
Other non-current assets 1,582,750,600.80 1,582,750,600.8 0.00
Total Non-current Assets 9,857,568,528.62 9,857,568,528.62 0.00
Total Assets 63,484,352,233.42 63,457,863,416.85 -26,488,816.57
Current Liabilities:
Short-term borrowings 3,465,655,688.29 3,465,655,688.29 0.00
Loans from the central bank
Capitals taking from banks and other financial institutions
Held-for-trading financial liabilities Not applicable 290,998.43 290,998.43
Financial liabilities at fair value through current profit and
290,998.43 Not applicable -290,998.43
loss
Derivative financial liabilities
Notes payable & Accounts payable 10,765,145,485.74 10,765,145,485.74 0.00
Receipts in advance 641,430,490.22 641,430,490.22 0.00
Financial assets sold under repurchase agreements
Customer deposits and deposits from banks and other
financial institutions
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Hikvision 2019 Q1 Report
st st
Item December 31 2018 January 1 2019 Adjusted amount
Funds from securities trading agency
Funds from underwriting securities agency
Payroll payable 1,921,608,104.04 1,921,608,104.04 0.00
Taxes payable 1,418,921,664.57 1,418,921,664.57 0.00
Other payables 2,953,203,190.99 2,953,203,190.99 0.00
Including: Interests payable
Dividends payable 119,917,640.92 119,917,640.92 0.00
Fees and commissions payable
Amounts payable under reinsurance contracts
Contract liabilities Not applicable
Held-for-sale liabilities
Non-current liabilities due within one year 3,178,171,147.16 3,178,171,147.16 0.00
Other current liabilities 364,984,759.94 364,984,759.94 0.00
Total Current Liabilities 24,709,411,529.38 24,709,411,529.38 0.00
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings 440,000,000.00 440,000,000.00 0.00
Bonds payable
Including: Preferred share
Perpetual bond
Leasing liabilities Not applicable
Long-term payables
36
Hikvision 2019 Q1 Report
st st
Item December 31 2018 January 1 2019 Adjusted amount
Provisions 77,625,238.49 77,625,238.49 0.00
Deferred income 293,179,089.13 293,179,089.13 0.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 810,804,327.62 810,804,327.62 0.00
Total liabilities 25,520,215,857.00 25,520,215,857.00 0.00
Owners’ Equities
Share capital 9,227,270,473.00 9,227,270,473.00 0.00
Other equity instruments
Including: Preferred share
Perpetual debt
Capital reserves 1,956,139,660.52 1,956,139,660.52 0.00
Less: Treasury stock 364,984,759.94 364,984,759.94 0.00
Other comprehensive income -49,576,351.10 -76,065,167.67 -26,488,816.57
Surplus reserves 4,460,712,358.45 4,460,712,358.45 0.00
General risk reserve
Retained earnings 22,360,593,257.53 22,360,593,257.53 0.00
Total owners' equity attributable to owner of the Company 37,590,154,638.46 37,563,665,821.89 -26,488,816.57
Minority interests 373,981,737.96 373,981,737.96 0.00
Total owners' equity 37,964,136,376.42 37,937,647,559.85 -26,488,816.57
Total liabilities and owners' equity 63,484,352,233.42 63,457,863,416.85 -26,488,816.57
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Hikvision 2019 Q1 Report
Balance Sheet of the Parent Company
Unit: RMB
st st
Item December 31 2018 January 1 2019 Adjusted amount
Current Assets:
Cash and bank balances 19,192,461,228.22 19,192,461,228.22 0.00
Held-for-trading financial assets Not applicable
Financial assets at fair value through current profit and loss Not applicable
Derivative financial assets
Notes receivable & Accounts receivable 15,556,312,793.95 15,325,923,955.48 -230,388,838.47
Including: Notes receivable 351,793,632.24 121,404,793.77 -230,388,838,47
Accounts receivable 15,204,519,161.71 15,204,519,161.71 0.00
Prepayments 132,344,929.55 132,344,929.55 0.00
Other receivables 522,987,955.34 522,987,955.34 0.00
Including: Interests receivable
Dividends receivable 2,550,000.00 2,550,000.00 0.00
Inventories 168,885,723.93 168,885,723.93 0.00
Contract assets Not applicable
Held-for-sale assets
Non-current assets due within one year
Other current assets 93,661,315.14 321,871,615.09 228,210,299.95
Total Current Assets 35,666,653,946.13 35,664,475,407.61 -2,178,538.52
Non-current Assets:
Debt investments Not applicable
38
Hikvision 2019 Q1 Report
st st
Item December 31 2018 January 1 2019 Adjusted amount
Available-for-sale financial assets 290,956,813.00 Not applicable -290,956,813.00
Other debt investments Not applicable
Held-to-maturity investments Not applicable
Long-term receivables
Long-term equity investments 4,361,147,395.90 4,361,147,395.90 0.00
Other equity investments Not applicable
Other non-current financial assets Not applicable 290,956,813.00 290,956,813.00
Investment properties
Fixed assets 2,844,176,300.34 2,844,176,300.34 0.00
Construction in progress 65,156,482.70 65,156,482.70 0.00
Productive biological assets
Oil and gas assets
Right-to-use assets Not applicable
Intangible assets 197,147,608.73 197,147,608.73 0.00
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets 221,779,547.02 221,779,547.02 0.00
Other non-current assets 14,601,579.55 14,601,579.55 0.00
Total Non-Current Assets 7,994,965,727.24 7,994,965,727.24 0.00
Total Assets 43,661,619,673.37 43,659,441,134.85 -2,178,538.52
Current Liabilities:
39
Hikvision 2019 Q1 Report
st st
Item December 31 2018 January 1 2019 Adjusted amount
Short-term borrowings
Held-for-trading financial liabilities Not applicable
Financial liabilities at fair value through current profit and
Not applicable
loss
Derivative financial liabilities
Notes payable & Accounts payable 356,787,605.91 356,787,605.91 0.00
Receipts in advance 204,337,524.21 204,337,524.21 0.00
Contract liabilities Not applicable
Payroll payables 1,272,626,004.95 1,272,626,004.95 0.00
Taxes payables 987,057,652.70 987,057,652.70 0.00
Other payables 2,529,600,057.31 2,529,600,057.31 0.00
Including: Interests payable
Dividends payable 117,467,640.92 117,467,640.92 0.00
Held-for-sale liabilities
Non-current liabilities due within one year 3,172,727,888.37 3,172,727,888.37 0.00
Other current liabilities 364,984,759.94 364,984,759.94 0.00
Total Current Liabilities 8,888,121,493.39 8,888,121,493.39 0.00
Non-Current Liabilities:
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Leasing liabilities Not applicable
40
Hikvision 2019 Q1 Report
st st
Item December 31 2018 January 1 2019 Adjusted amount
Long-term payables
Provisions 52,956,535.09 52,956,535.09 0.00
Deferred income 186,747,708.01 186,747,708.01 0.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 239,704,243.10 239,704,243.10 0.00
Total liabilities 9,127,825,736.49 9,127,825,736.49 0.00
Owners' equity
Share capital 9,227,270,473.00 9,227,270,473.00 0.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 1,883,262,407.46 1,883,262,407.46 0.00
Less: Treasury share 364,984,759.94 364,984,759.94 0.00
Other comprehensive income -2,178,538.52 -2,178,538.52
Surplus reserves 4,460,712,358.45 4,460,712,358.45 0.00
Retained earnings 19,327,533,457.91 19,327,533,457.91 0.00
Total owners' equity 34,533,793,936.88 34,531,615,398.36 -2,178,538.52
Total liabilities and owners' equity 43,661,619,673.37 43,659,441,134.85 -2,178,538.52
The adjustments are explained as below:
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Hikvision 2019 Q1 Report
2. Note on retrospective adjustments of the previous comparison data due to the first implementation of the new financial instrument
guidelines, and the new lease criteria.
√ Applicable □Not applicable
The new financial instrument standard has changed the classification and measurement of financial assets, and has identified three major measurement categories:
amortized cost; measured at fair value and its changes are included in other comprehensive income; measured at fair value through current profit and loss. Enterprises
need to consider the business model of their own, as well as the contractual cash flow characteristics of financial assets to carry out the above classification. The
equity instrument investment is measured at fair value through current profit or loss, but at the time of initial recognition, the non-tradable equity instrument
investment can be irrevocably designated as financial asset measured at fair value and whose changes are included in other comprehensive income.
According to the requirements of the new financial instrument standard, financial assets impairment measurement is changed from the “loss incurred model” to the
“expected credit loss model”, which is applicable to financial assets measured at amortized cost, financial assets measured at fair value and whose changes are
included in other comprehensive income, as well as loan commitments and financial guarantee contracts.
The Company endorses or discounts some bank acceptance bills in daily fund management. The business model for managing the above-mentioned notes receivable
is aimed at both collecting contractual cash flow and for sales. Therefore, the notes receivable are reclassified as financial assets measured at fair value and whose
changes are included in other comprehensive income by the Group and are presented under other current assets since January 1st 2019.
Summary of the impacts of the first implementation of the new financial instruments guidelines on January 1st 2019
Consolidated Balance Sheet
Book value according to the Re-classified Re-measured Book value according to the new
original financial instrument financial instrument guidelines
guidelines January 1st 2019
December 31st 2018
Held-for-trading financial assets 0.00 1,860,050.59 1,860,050.59
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Hikvision 2019 Q1 Report
Book value according to the Re-classified Re-measured Book value according to the new
original financial instrument financial instrument guidelines
guidelines January 1st 2019
December 31st 2018
Financial assets at fair value through current 1,860,050.59 -1,860,050.59 0.00
profit and loss
Notes Receivable and Accounts Receivable 19,188,886,471.10 -2,273,846,399.85 16,915,040,071.25
Other current assets 730,682,813.14 2,273,846,399.85 -26,488,816.57 2,978,040,396.42
Other comprehensive income -49,576,351.10 -26,488,816.57 -76,065,167.67
Available-for-sale financial assets 290,966,813.00 -290,966,813.00 0.00
Other non-current financial assets 0.00 290,966,813.00 290,966,813.00
Held-for-trading financial liabilities 0.00 290,998.43 290,998.43
Financial liabilities at fair value through 290,998.43 -290,998.43 0.00
current profit and loss
Balance Sheet of the Parent Company
Book value according to the Re-classified Re-measured Book value according to the new
original financial instrument financial instrument guidelines
guidelines January 1st 2019
December 31st 2018
Notes Receivable and Accounts Receivable 15,556,312,793.95 -230,388,838.47 15,325,923,955.48
Other current assets 93,661,315.14 230,388,838.47 -2,178,538.52 321,871,615.09
Other comprehensive income 0.00 -2,178,538.52 -2,178,538.52
Available-for-sale financial assets 290,956,813.00 -290,956,813.00 0.00
Other non-current financial assets 0.00 290,956,813.00 290,956,813.00
43
Hikvision 2019 Q1 Report
4.3 Audit Report
Whether audit has been performed on this 2019 1st Quarter Report
□ Yes √ No
The Company’s 2019 1st Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
April 20th 2019
Note: This document is a translated version of the Chinese version 2019 Q1 Financial Report
(“2019 年第一季度报告全文”), and the published Q1 report in the Chinese version shall prevail.
The complete published Chinese 2019 Q1 Financial Report may be obtained at
http://www.cninfo.com.cn.
44