HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2020 Quarter 3 Report
July to September 2020
October 24th 2020
Hikvision 2020 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 of the Company 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 2020 Q3 Financial Report (“2020 年第
三季度报告全文”), and the published 2020 Q3 report in the Chinese version shall prevail. The
complete published Chinese 2020 Q3 Financial Report may be obtained at http://www.cninfo.com.cn.
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Hikvision 2020 Q3 Report
Section II Corporate Profile
I. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of the previous accounting data
□Yes√ No
Change(%) between
th st
At September 30 2020 At December 31 2019 December 31st 2019 and
September 30th 2020
Total assets (RMB) 79,216,734,278.27 75,358,000,240.29 5.12%
Net assets attributable to shareholders of the Company
47,800,785,407.20 44,904,033,876.83 6.45%
(RMB)
YoY Change(%) between
YoY Change(%) between
2020 Q3 2020 Q1~Q3 2019 Q1~Q3 and 2020
2020 Q3 and 2019 Q3
Q1~Q3
Operating income (RMB) 17,750,035,645.86 11.53% 42,021,194,889.62 5.48%
Net profits attributable to shareholders of the Company
3,814,978,645.77 0.12% 8,438,951,476.64 5.13%
(RMB)
Net profits attributable to shareholders of the Company
3,576,189,605.69 -2.48% 8,039,687,983.37 3.21%
excluding non-recurring gains and losses (RMB)
Net cash flows from operating activities (RMB) 5,464,651,652.26 883.95% 5,534,617,992.83 4352.08%
Basic earnings per share (RMB/share) 0.405 1.25% 0.909 5.70%
Diluted earnings per share (RMB/share) 0.405 1.25% 0.909 5.70%
Weighted average Return on Equity (ROE) 8.34% -1.30% 18.12% -2.32%
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Hikvision 2020 Q3 Report
The total share capital of the Company as of the previous trading day of the financial report disclosure:
The total share capital of the Company as of the previous trading day of the financial report disclosure (share) 9,345,010,696
Fully diluted earnings per share calculated using the latest share capital:
Fully diluted earnings per share (RMB/share) calculated with the latest share capital 0.903
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item January 1st 2020–September 30th 2020
Profit or loss from disposal of non-current assets (including the write-off for the
304,642.17
impairment provision of assets)
The government subsidies included in the current profits and losses (excluding the
government subsidy closely related to regular course of business of the Company and
483,576,325.24
government subsidy based on standard quota or quantitative continuous application
according to the state 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 from disposal of held-for-trading financial assets,
37,532,757.35
derivative financial assets, held-for-trading financial liabilities, derivative financial
liabilities and other debt investments, excluding the effective hedging business related to
the regular business operation of the Company.
Other non-operating income and expenditures except the items mentioned above 30,885,184.58
Less: Impact of income tax 123,079,331.88
Impact of the minority interests (after tax) 29,956,084.19
Total 399,263,493.27
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in the
, or classifies any non-recurring gain/loss item mentioned in the
aforementioned note as a recurrent gain/loss item
□ Applicable √ Inapplicable
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Hikvision 2020 Q3 Report
II. Total Number of Shareholders at the end of the reporting period and Information for Top 10 Shareholders
1. Number of common shareholders and preferred shareholders with resumed voting rights and information about top 10 shareholders
Unit: Share
Total number of common shareholders at the end of Total number of preferred shareholders (if any) whose voting rights have been
242,350 0
the reporting period recovered at the end of the reporting period
Particulars about top 10 shareholders
The number of Pledged or frozen
Share-
Total shares held at the common shares held
Name of shareholder Nature of shareholder holding percentage
period-end with trading Status Amount
(%)
restrictions
China Electronics Technology HIK Group Co., Ltd. Domestic State-owned corporation 38.88% 3,632,897,256 0 Pledged 50,000,000
Gong Hongjia Overseas individual 12.43% 1,161,608,214 941,292,525 Pledged 444,540,000
Hong Kong Securities Clearing Company
Overseas corporation 5.97% 558,304,047 0 -
Ltd.(HKSCC)
Xinjiang Weixun Investment Management Limited Domestic non-state-owned
4.82% 450,795,176 0 Pledged 93,148,998
Partnership corporation
Perseverance Asset Management L.L.P.－
Funds, financial products, etc. 2.47% 231,000,026 0
Perseverance LinShan No.1 YuanWang Fund
Domestic non-state-owned
Xinjiang Pukang Investment Limited Partnership 1.95% 182,510,174 0 Pledged 127,700,000
corporation
Hu Yangzhong Domestic Individual 1.95% 182,186,477 136,639,858 Pledged 8,150,000
The 52nd Research Institute at China Electronics
Domestic State-owned corporation 1.93% 180,775,044 0 -
Technology Group Corporation
CITIC Securities Company Limited Domestic State-owned corporation 1.21% 113,094,618 0 -
Central Huijin Investment Ltd. Domestic State-owned corporation 0.70% 65,818,800 0 -
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Hikvision 2020 Q3 Report
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
Type of shares
Name of shareholder Number of common shares without trading restrictions held at the period-end
Type Number
China Electronics Technology HIK Group Co., Ltd. 3,632,897,256 RMB ordinary shares 3,632,897,256
Hong Kong Securities Clearing Company
558,304,047 RMB ordinary shares 558,304,047
Ltd.(HKSCC)
Xinjiang Weixun Investment Management Limited
450,795,176 RMB ordinary shares 450,795,176
Partnership
Perseverance Asset Management L.L.P.－
231,000,026 RMB ordinary shares 231,000,026
Perseverance LinShan No.1 YuanWang Fund
Gong Hongjia 220,315,689 RMB ordinary shares 220,315,689
Xinjiang Pukang Investment Limited Partnership 182,510,174 RMB ordinary shares 182,510,174
The 52nd Research Institute at China Electronics
180,775,044 RMB ordinary shares 180,775,044
Technology Group Co. Ltd.
CITIC Securities Company Limited 113,094,618 RMB ordinary shares 113,094,618
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 are all subject
to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei, limited partner of Xinjiang Pukang Investment
Limited Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder of the Company. Hu Yangzhong, domestic
Explanation on associated relationship and individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang Pukang Investment
concerted actions among above shareholders Limited Partnership.
Except for these, the Company does not know whether the other shareholders are related parties or whether they are acting-in-concert
parties in accordance with the Measures for Management of the Disclosure of the Shareholding Changes of Shareholders of the Listed
Company.
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Hikvision 2020 Q3 Report
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducts any
agreed buy-back in the reporting period?
□ Applicable √ Inapplicable
No such cases in the reporting period.
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable √ Inapplicable
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Hikvision 2020 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 Balance at YoY
Item September 30th 2020 December 31st 2019 change Note of Changes
(RMB) (RMB) (%)
According to the new revenue standard,
part of the completed and unsettled
Contract assets 126,490,278.41 0.00 100.00%
assets and accounts receivable are
reclassified to contract assets.
Decrease in unsettled assets that have
been completed for more than one year
Other non-current assets 542,886,697.82 865,586,676.92 -37.28%
according to the construction progress
of the projects
Non-current assets due
1,036,003,483.96 528,469,701.75 96.04% Increase in long-term receivables
within one year
confirmed by installment sales of goods
Long-term receivables 1,975,160,938.45 1,382,536,761.22 42.86%
Long-term equity
521,779,447.88 252,165,321.49 106.92% Increase in external equity investments
investment
Other non-current financial
458,565,043.51 312,398,267.44 46.79% Increase in external equity investments
assets
Mainly due to increased investment in
the second phase of the Chengdu
Construction in progress 1,248,463,158.58 631,555,479.06 97.68% Technology Base, Hangzhou Innovation
Industrial Base and Chongqing
Technology Base
Increased demand for short-term
Short-term borrowings 4,339,565,033.35 2,640,082,485.15 64.37%
working capital
Notes payable 610,407,561.05 1,239,584,016.70 -50.76% Increase in purchase payment due
Taxes payable 1,798,414,632.65 991,342,805.91 81.41% Increase in unpaid corporate income tax
Increase in accrued expenses and unpaid
Other payables 2,227,367,991.23 1,568,744,599.94 41.98%
dividends payable
Non-current liabilities due Increase in long-term loans due within
207,812,149.40 86,123,154.06 141.30%
within one year one year
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Hikvision 2020 Q3 Report
The Company issued 1 billion RMB of
Other current liabilities 1,817,675,879.67 913,534,538.26 98.97% short-term commercial paper during the
current reporting period
Deferred income tax Increased taxable temporary differences
95,017,852.70 51,088,103.96 85.99%
liabilities such as accelerated depreciation
Exchange rate fluctuations caused a
Other comprehensive
-88,048,825.29 -53,541,146.99 -64.45% decrease in the conversion differences
income
of foreign currency statements
1.2 Explanation for variations in income statement items
YoY Change
Item 2020 Q1~Q3 (RMB) 2019 Q1~Q3 (RMB) Note of changes
(%)
Increase in foreign exchange losses
Financial expense 154,708,009.70 -626,571,624.15 124.69%
subject to exchange rate fluctuations.
Investment Income 124,741,116.75 29,551,998.27 322.11% Increase in investment dividends
Increase in gains from changes in
Gains from changes in
40,458,673.51 11,214,933.39 260.76% fair value of other non-current
fair value
financial assets
Increase in provision for impairment
Asset impairment loss -260,366,239.98 -149,483,833.80 74.18%
of inventory
1.3 Explanation for variations in cash flow statement items
YoY
Item 2020 Q1~Q3 (RMB) 2019 Q1~Q3 (RMB) Note of changes
Change (%)
Mainly the increase in sales
Net cash flows from
5,534,617,992.83 124,315,235.40 4352.08% collection for the current reporting
operating activities
period
Increase in external equity
Net cash flows from investment and long-term asset
-1,803,764,753.48 -1,257,968,335.26 -43.39%
investing activities purchase and construction
expenditures
2. Progress and influence of significant events, analysis and explanation of corresponding
solutions.
√ Applicable □ Inapplicable
On July 24th 2020, the 18th meeting of the fourth board of directors of the Company reviewed and approved the Proposal on
Transfer of Part of Assets to the Company’s Holding Subsidiary of Innovative Business", agreeing to the Company to transfer the
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Hikvision 2020 Q3 Report
asset group of the thermal imaging division of Hikvision at a consideration of RMB 801.14 million (excluding tax) to Hangzhou
Hikmicro Sensing Technology Co., Ltd., a holding subsidiary of innovative business. The above transfer was completed in July
2020.
On May 23th 2020, the Company disclosed the Announcement on the pre-disclosure of Shareholding Reduction (No. 2020-
034): The shareholder, Gong Hongjia, who holds 1,255,056,700 shares of the Company (accounting for 13.43% of the Company’s
total share capital) plans to reduce his holdings of the Company's shares, not exceeding 2% of the Company's total share capital,
within six months after 15 trading days from the date of the announcement. On September 3 rd 2020, the Company received the
Gong Hongjia’s Notification Letter on the Completion of the Implementation of the Share Reduction Plan issued by shareholder
Gong Hongjia. Gong Hongjia reduced his holdings of the Company’s shares by a total of 93,448,486 shares (accounting for 1.00%
of the current Company’s total share capital) through bidding transactions. The implementation of the reduction plan is completed,
and the remaining shares of the reduction plan will no longer be reduced through bidding transactions. For details, please refer to
the Announcement on Share Reduction by Shareholders (No. 2020-050) disclosed by the Company on September 4th 2020.
Temporary public disclosure website
Overview of significant events Disclosure Date
index
Proposal on Transfer of Part of Assets to the Company’s Holding
July 25th 2020 www.cninfo.com.cn
Subsidiary of Innovative Business
Announcement on Share Reduction by Shareholders September 4th 2020 www.cninfo.com.cn
Implementation progress of share repurchase
□ Applicable √ Inapplicable
Progress in the implementation of the reduction of repurchased shares by means of centralized bidding
□ Applicable √ Inapplicable
3. Unfulfilled and overdue commitments from the related committed parties such as the
Company’s actual controller, shareholders, related parties, acquirer(s), and the Company
during the reporting period
□Applicable √Inapplicable
No such case during the reporting period.
4. Financial asset investment
1. Securities investment
□Applicable √Inapplicable
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Hikvision 2020 Q3 Report
2. Details in derivatives investment
√Applicable □Inapplicable
Unit: 0,000 RMB
Amount sold The proportion of the
Name of Whether Initial investment Purchase amount Amount of Actual profit
Types of Initial during the Closing closing investment
derivative Relation- related amount of Expiration during the impairment and loss amount
derivatives Start Date investment current investment amount to the Company’s
investment ship transaction derivatives date current reporting provision (if during the
investment amount reporting amount net assets at the end of the
operator exists investment period any) reporting period
period reporting period
Foreign
Commercial December November
No No exchange 98,489.32 98,489.32 151,174.96 - - 20,152.37 0.42% -314.59
bank 5th 2019 3rd 2020
contract
Total 98,489.32 -- -- 98,489.32 151,174.96 - - 20,152.37 0.42% -314.59
Source of funds for derivatives investments Own capital
Litigation involved (if applicable) Not applicable
Disclosure date of the board of directors announcement for the approval of
April 20th 2019 / December 25th 2019
derivatives investment (if any)
Disclosure date of the announcement of the shareholders meeting for the
May 16th 2020
approval of derivatives investment (if any)
Risk analysis and control measures for derivatives holdings during the For specific information on risk analysis and control measures, please refer to the Announcement on Conducting Foreign Exchange Hedging
reporting period (including but not limited to market risk, liquidity risk, credit Transactions in 2019 (Announcement No. 2019-021) disclosed by the Company on April 20th 2019 and Announcement on the Implementation of
risk, operational risk, legal risk, etc.) Foreign Exchange Hedging Transactions in 2020 (Announcement No. 2019-065) disclosed on December 25th 2019.
Changes in market prices or product fair values of invested derivatives during The Company's accounting for the fair value of derivatives is mainly for the unexpired contracts of forward foreign exchange settlement and sale
the reporting period. The analysis of the fair value of derivatives should transactions signed by the Company and banks during the reporting period. Based on the difference between the quotation of the unexpired forward
disclose the specific methods used and related assumptions and parameter foreign exchange settlement and sale contract at the end of the period and the forward foreign exchange price, the held-for-trading financial assets or
settings held-for-trading financial liabilities are recognized.
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Hikvision 2020 Q3 Report
Explanation of whether the Company’s derivatives accounting policies and
specific accounting principles have changed significantly during the reporting Not applicable
period compared with the previous reporting period
Independent directors' specific opinions on the Company's derivatives
Not applicable
investment and risk control
5. Progress of investment projects with raised funds
□Applicable √Inapplicable
6. Guidance on the Company’s 2020 full year operational results.
□Applicable √Inapplicable
7．Major contracts for daily operations
□Applicable √Inapplicable
Significant differences between the progress of a major contract and the contract agreement and affect more than 30% of the contract amount.
□Applicable √Inapplicable
8. Entrusted financial management
□Applicable √ Inapplicable
No such case during the current reporting period.
9. Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
No such case in the reporting period.
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Hikvision 2020 Q3 Report
10. 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.
11. Schedule for the reception activities including research, communication and interviews
during the reporting period
√ Applicable □ Inapplicable
11.1 Reception of research activities during 2020 Q3
Type of reception
Time of reception Location Method of reception Index of basic situation of the research activities
object
Institutional
Corporate Headquarter Performance Result CNINF, Investor Relations Activity Record: July
th
July 25 2020 investors;
conference room Conference Call 25TH 2020
Individuals
Corporate Headquarter
From July 27th 2020 to On-site Research and Institutional CNINF, Investor Relations Activity Record: From
conference room
August 10th 2020 telephone communication investors July 27th 2020 to August 10th 2020
Corporate Headquarter CNINF, Investor Relations Activity Record: From
From August 11th 2020 to On-site Research and Institutional
conference room August 11th 2020 to August 21st 2020
August 21st 2020 telephone communication investors
Corporate Headquarter CNINF, Investor Relations Activity Record: From
From August 24th 2020 to On-site Research and Institutional
conference room August 24th 2020 to September 4th 2020
September 4th 2020 telephone communication investors
Corporate Headquarter CNINF, Investor Relations Activity Record: From
From September 7th 2020 On-site Research and Institutional
conference room September 7th 2020 to September 25th 2020
to September 25th 2020 telephone communication investors
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Hikvision 2020 Q3 Report
11.2 Participation of conferences for investor relationship activities during 2020 Q3
Time of Type of reception Method of reception
Location Conference Name
conference object
Virtual All kinds of One-on-One, One-on-multi, small group
July 2020 Europe Virtual NDR-via CICC
Conference investors Meetings, and etc.
Virtual All kinds of One-on-One, One-on-multi, small group
August 2020 Hongkong Virtual NDR-via Bernstein
Conference investors Meetings, and etc.
August 2020 Virtual All kinds of One-on-One, One-on-multi, small group
Hongkong Virtual NDR-via Jefferies
Conference investors Meetings, and etc.
August 2020 Virtual All kinds of One-on-One, One-on-multi, small group
U.S.A Virtual NDR- via Jefferies
Conference investors Meetings, and etc.
August 2020 All kinds of One-on-One, One-on-multi, small group
Shanghai NDR-via Guangfa Securities
investors Meetings, and etc.
August 2020 Shenzhen, NDR-via Shenwan Hongyuan All kinds of One-on-One, One-on-multi, small group
Guangzhou Securities investors Meetings, and etc.
August 2020 Virtual Europe and U.S.A. NDR-via All kinds of One-on-One, One-on-multi, small group
Conference Bernstein investors Meetings, and etc.
August 2020 All kinds of One-on-One, One-on-multi, small group
Beijing NDR-via CITIC Securities
investors Meetings, and etc.
August 2020 Virtual Nomura Virtual China Investor All kinds of One-on-One, One-on-multi, small group
Conference Forum 2020 investors Meetings, and etc.
August 2020 Virtual UBS 2020 China A-Share Virtual All kinds of One-on-One, One-on-multi, small group
Conference Conference investors Meetings, and etc.
August 2020 Virtual Goldman Sachs China A-Share All kinds of One-on-One, One-on-multi, small group
Conference Conference investors Meetings, and etc.
September Virtual Huachuang Securities 2020 Autumn All kinds of One-on-One, One-on-multi, small group
2020 Conference Conference investors Meetings, and etc.
September Virtual Morgan Stanley Virtual Asia TMT All kinds of One-on-One, One-on-multi, small group
2020 Conference Conference investors Meetings, and etc.
September Virtual 21st Credit Suisse One-on-One, One-on-multi, small group
All kinds of
2020 Conference Asian Technology Conference (virtual Meetings, and etc.
investors
event)
September Virtual The 27th CITIC Securities-CLSA All kinds of One-on-One, One-on-multi, small group
2020 Conference Flagship Investor Forum investors Meetings, and etc.
September Virtual Jefferies Inaugural Jefferies Asia All kinds of One-on-One, One-on-multi, small group
2020 Conference Forum investors Meetings, and etc.
September Virtual Bernstein 17th Annual Pan European All kinds of One-on-One, One-on-multi, small group
2020 Conference Strategic Decisions Conference investors Meetings, and etc.
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Hikvision 2020 Q3 Report
11.3 Investor relations activity statistics during 2020 Q3
Number of daily research received (On-site and telephone conference, times) 89
Number of institutional investors received (ppl) 1,094
Number of individual investors received (ppl) 17
Number of investor relations conference participated 17
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Hikvision 2020 Q3 Report
Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
September 30th 2020
Unit: RMB
Item September 30th 2020 December 31st 2019
Current Assets:
Cash and bank balances 26,724,024,164.26 27,071,948,919.78
Held-for-trading financial assets 3,699,122.53 181.76
Notes receivable 1,011,138,678.03 973,236,789.02
Accounts receivable 23,081,153,716.66 21,307,927,200.28
Receivables for financing 1,401,626,436.20 1,257,385,053.02
Prepayments 353,652,040.44 309,685,733.32
Other receivables 487,082,928.46 555,246,545.48
Inventories 11,152,999,292.02 11,267,986,843.11
Contract assets 126,490,278.41 -
Non-current assets due within one year 1,036,003,483.96 528,469,701.75
Other current assets 709,905,750.73 754,456,821.72
Total Current Assets 66,087,775,891.70 64,026,343,789.24
Non-current Assets:
Long-term receivables 1,975,160,938.45 1,382,536,761.22
Long-term equity investment 521,779,447.88 252,165,321.49
Other non-current financial assets 458,565,043.51 312,398,267.44
Fixed assets 5,949,833,303.19 5,791,218,720.87
Construction in progress 1,248,463,158.58 631,555,479.06
Intangible assets 1,180,714,269.67 1,046,122,507.64
Goodwill 270,239,159.35 273,611,961.96
Long-term deferred expenses 95,363,789.29 87,611,490.75
Deferred tax assets 885,952,578.83 688,849,263.70
Other non-current assets 542,886,697.82 865,586,676.92
Total Non-current Assets 13,128,958,386.57 11,331,656,451.05
Total Assets 79,216,734,278.27 75,358,000,240.29
Current Liabilities:
Short-term borrowings 4,339,565,033.35 2,640,082,485.15
Held-for-trading financial liabilities 7,004.35 652,428.18
Notes payable 610,407,561.05 1,239,584,016.70
Accounts payable 9,818,653,069.71 12,700,075,307.70
Contract Liabilities 1,352,215,377.01 -
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Hikvision 2020 Q3 Report
Item September 30th 2020 December 31st 2019
Receipts in advance 1,020,989,460.61
Payroll payable 2,235,616,280.86 2,359,674,640.12
Taxes payable 1,798,414,632.65 991,342,805.91
Other payables 2,227,367,991.23 1,568,744,599.94
Including : Interests payable
Dividends payable 205,898,523.84 108,129,385.24
Non-current liabilities due within one year 207,812,149.40 86,123,154.06
Other current liabilities 1,817,675,879.67 913,534,538.26
Total Current Liabilities 24,407,734,979.28 23,520,803,436.63
Non-current Liabilities:
Long-term borrowings 4,797,581,206.34 4,604,168,571.43
Long-term payables 49,212,312.82 50,181,416.72
Provisions 85,303,772.07 90,570,669.01
Deferred income 192,809,629.77 333,589,831.30
Deferred tax liabilities 95,017,852.70 51,088,103.96
Other non-current liabilities 1,234,739,326.10 1,234,739,326.10
Total non-current liabilities 6,454,664,099.80 6,364,337,918.52
Total liabilities 30,862,399,079.08 29,885,141,355.15
Owners’ Equity
Share capital 9,345,010,696.00 9,345,010,696.00
Capital reserves 5,058,308,870.67 4,126,943,698.96
Less: Treasury shares 2,046,939,271.56 2,148,273,864.36
Other comprehensive income (88,048,825.29) (53,541,146.99)
Surplus reserves 4,672,505,348.00 4,672,505,348.00
Retained earnings 30,859,948,589.38 28,961,389,145.22
Total owners' equity attributable to
47,800,785,407.20 44,904,033,876.83
owner of the Company
Minority equity 553,549,791.99 568,825,008.31
Total owners' equity 48,354,335,199.19 45,472,858,885.14
Total liabilities and owners' equity 79,216,734,278.27 75,358,000,240.29
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
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Hikvision 2020 Q3 Report
2. Balance Sheet of the Parent Company
Unit: RMB
Item September 30th 2020 December 31st 2019
Current Assets:
Cash and bank balances 18,431,399,544.71 16,851,590,525.05
Notes receivable 122,418,086.27 149,703,073.98
Accounts receivable 29,999,914,461.83 25,107,965,925.08
Receivables for financing 97,128,786.70 84,839,695.67
Prepayments 177,688,053.30 160,688,588.99
Other receivables 1,525,238,871.47 921,275,388.15
Including: Interests receivable
Dividends receivable - 2,550,000.00
Inventories 221,715,239.78 171,243,815.97
Contract assets 5,484,332.44 -
Non-current assets due within one year 94,087,854.60 4,513,795.81
Other current assets 21,460,416.80 23,117,398.50
Total Current Assets 50,696,535,647.90 43,474,938,207.20
Non-current Assets:
Long-term receivables 68,593,256.43 681,568.43
Long-term equity investment 6,044,491,821.20 5,074,018,030.44
Other non-current financial assets 455,670,823.51 309,504,047.44
Fixed assets 2,806,275,072.45 2,831,295,145.61
Construction in progress 344,069,153.59 153,416,054.28
Intangible assets 165,825,318.15 188,362,883.75
Long-term deferred expenses 44,329,900.69 34,199,446.06
Deferred tax assets 176,930,540.34 126,357,792.34
Other non-current assets 18,749,006.23 21,619,464.07
Total Non-current Assets 10,124,934,892.59 8,739,454,432.42
Total Assets 60,821,470,540.49 52,214,392,639.62
Current Liabilities:
Short-term borrowings 3,482,751,236.09 2,001,781,388.89
Accounts payable 449,065,134.95 450,983,270.08
Contract liabilities 318,991,129.74 -
Receipts in advance 227,242,328.23
18
Hikvision 2020 Q3 Report
Item September 30th 2020 December 31st 2019
Payroll payable 1,424,975,531.91 1,564,304,003.49
Taxes payable 1,519,649,694.85 796,890,945.83
Other payables 2,258,051,626.19 533,325,191.05
Including : Interests payable
Dividends payable 205,898,523.84 105,679,385.24
Non-current liabilities due within
4,445,607.82 9,539,251.98
one year
Other current liabilities 1,817,675,879.77 913,534,538.26
Total Current Liabilities 11,275,605,841.32 6,497,600,917.81
Non-current Liabilities:
Long-term borrowings 3,197,640,000.00 3,126,200,000.00
Provisions 51,992,619.07 62,863,096.83
Deferred Income 123,060,667.94 162,018,728.45
Other non-current liabilities 1,234,739,326.10 1,234,739,326.10
Total non-current liabilities 4,607,432,613.11 4,585,821,151.38
Total liabilities 15,883,038,454.43 11,083,422,069.19
Owners’ Equity
Share capital 9,345,010,696.00 9,345,010,696.00
Capital reserves 4,665,997,632.43 4,064,833,739.52
Less: Treasury shares 2,046,939,271.56 2,148,273,864.36
Surplus reserves 4,672,505,348.00 4,672,505,348.00
Retained earnings 28,301,857,681.19 25,196,894,651.27
Total owners' equity 44,938,432,086.06 41,130,970,570.43
Total liabilities and owners' equity 60,821,470,540.49 52,214,392,639.62
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
19
Hikvision 2020 Q3 Report
3. Consolidated Income Statement
Unit: RMB
Item 2020 Q3 2019 Q3
I. Total operating income 17,750,035,645.86 15,915,642,804.35
II．Total operating costs 14,236,690,054.68 11,986,336,953.81
Including：Total operating costs 9,777,113,666.40 8,496,804,444.94
Business taxes and surcharges 115,971,298.33 96,963,076.85
Selling expenses 1,813,548,049.93 1,940,139,966.75
Administrative expenses 470,051,489.24 446,580,701.06
Research and Development (R&D) expenses 1,677,325,334.35 1,502,476,961.10
Financial expenses 382,680,216.43 (496,628,196.89)
Including：Interest expenses 54,235,983.98 74,410,747.56
Interest income 157,417,761.75 161,426,059.65
Add: Other Income 695,122,842.24 580,970,230.04
Investment income (loss) (25,478,592.81) 8,327,642.30
Including: Investment gains (losses) in associated
(13,390,249.40) 5,825,385.04
enterprise and joint-venture enterprise
Gains from changes in fair values 60,895,110.47 9,348,538.93
Credit impairment losses (“-“) (56,336,117.60) (144,256,060.56)
Impairment losses (“-“) of assets (94,972,081.65) (69,340,091.15)
Asset disposal income 283,087.18 389,512.37
III. Operating profit 4,092,859,839.01 4,314,745,622.47
Add: Non-operating income 19,780,669.56 20,153,328.90
Less: Non-operating expenses 5,510,143.35 3,644,173.04
IV. Total profit 4,107,130,365.22 4,331,254,778.33
Less: Income tax expenses 196,804,188.85 460,924,198.11
V. Net profit 3,910,326,176.37 3,870,330,580.22
5.1 Classification by operation continuity
(a) Net profit on continuous operation 3,910,326,176.37 3,870,330,580.22
5.2 Classification by attribution of ownership
(a) Profit or loss attributable to minority shareholders 95,347,530.60 59,751,625.33
(b) Net profit attributable to owners of parent company 3,814,978,645.77 3,810,578,954.89
VI. Other comprehensive income, net of income tax (9,595,165.08) (5,267,606.68)
Other comprehensive income attributable to owners of the
(10,024,762.83) (5,162,206.61)
Company, net of tax
(I) Items that will not be reclassified subsequently to profit or
loss
20
Hikvision 2020 Q3 Report
Item 2020 Q3 2019 Q3
(II) Other comprehensive income to be reclassified to profit or
(10,024,762.83) (5,162,206.61)
loss in subsequent periods
Exchange differences arising on conversion of financial
(10,024,762.83) (6,527,620.17)
statements denominated in foreign currencies
Gains and losses from changes in fair value of other
1,365,413.56
current assets
Other comprehensive income attributable to minority interests,
429,597.75 (105,400.07)
net of tax
VII. Total comprehensive income 3,900,731,011.29 3,865,062,973.54
Total comprehensive income attributable to owners of the
3,804,953,882.94 3,805,416,748.28
parent company
Total comprehensive income attributable to minority
95,777,128.35 59,646,225.26
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.405 0.400
(II) Diluted earnings per share 0.405 0.400
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 2020 Q3 2019 Q3
I. Total operating income 7,511,924,308.00 6,920,272,660.94
Less: Total operating Cost 1,956,223,390.19 2,180,260,453.52
Business taxes and surcharges 84,476,812.68 67,760,722.14
Selling expenses 628,836,225.71 852,081,852.19
Administrative expenses 202,054,745.57 184,623,515.65
Research and Development (R&D) expenses 1,067,748,117.12 1,095,442,523.12
Financial expenses (37,892,562.70) (361,435,536.59)
Including : Interest expenses 8,885,004.93 6,808,200.57
Interest income 110,979,371.45 124,514,655.05
Add: Other income 553,775,426.53 434,811,042.75
Investment income 793,888,185.71 2,102,615.50
Including: Investment gain (loss) in associated
(8,930,255.92) 2,102,615.50
enterprise and joint-venture enterprise
Gains from changes in fair values 49,112,093.33 10,635,547.81
Credit impairment losses (“-“) (11,379,036.94) (30,515,452.66)
Impairment losses (“-“) of assets 500,808.24 1,753,720.58
Asset disposal income 7,882.27 10,098.01
II. Operating profit 4,996,382,938.57 3,320,336,702.90
Add: Non-operating income 3,145,560.28 4,577,655.07
21
Hikvision 2020 Q3 Report
Item 2020 Q3 2019 Q3
Less: Non-operating expenses 2,846,523.76 1,684,190.05
III. Total profit 4,996,681,975.09 3,323,230,167.92
Less: Income tax expenses 293,424,076.90 151,477,969.94
IV. Net profit 4,703,257,898.19 3,171,752,197.98
(a) Net profit on continuous operation 4,703,257,898.19 3,171,752,197.98
V. Other comprehensive income, net of income tax (1,937,862.58)
(I) Items that will not be reclassified subsequently to profit or
loss
(II) Other comprehensive income to be reclassified to profit or
(1,937,862.58)
loss in subsequent periods
Gains and losses from changes in fair value of other current
(1,937,862.58)
assets
VI. Total comprehensive income 4,703,257,898.19 3,169,814,335.40
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 2020 to September 30th 2020
Unit: RMB
Item 2020 Q1-Q3 2019 Q1-Q3
I. Total operating income 42,021,194,889.62 39,838,916,228.85
II．Total operating costs 33,719,184,646.63 31,313,618,168.78
Including：Total operating costs 21,970,833,611.78 21,337,310,778.62
Business taxes and surcharges 284,043,463.58 264,510,982.77
Selling expenses 5,233,839,568.35 5,153,400,075.91
Administrative expenses 1,335,010,979.18 1,177,690,944.82
Research and Development (R&D) expenses 4,740,749,014.04 4,007,277,010.81
Financial expenses 154,708,009.70 (626,571,624.15)
Including：Interest expenses 148,373,068.03 167,413,125.18
Interest income 464,390,827.93 454,438,589.00
Add: Other Income 1,689,901,236.39 1,303,536,451.58
Investment income 124,741,116.75 29,551,998.27
Including: Investment gains (losses) in
associated enterprise and joint-venture (22,332,967.09) 1,610,229.42
enterprise
Gains from changes in fair values 40,458,673.51 11,214,933.39
Credit impairment losses (“-“) (209,108,587.37) (278,782,493.13)
Impairment losses (“-“) of assets (260,366,239.98) (149,483,833.80)
Asset disposal income 304,642.17 1,199,556.27
22
Hikvision 2020 Q3 Report
Item 2020 Q1-Q3 2019 Q1-Q3
III. Operating profit 9,687,941,084.46 9,442,534,672.65
Add: Non-operating income 51,501,876.64 58,460,407.50
Less: Non-operating expenses 12,888,908.91 12,058,354.95
IV. Total profit 9,726,554,052.19 9,488,936,725.20
Less: Income tax expenses 1,149,356,334.82 1,394,844,854.79
V. Net profit 8,577,197,717.37 8,094,091,870.41
5.1 Classification by operation continuity
(a) Net profit on continuous operation 8,577,197,717.37 8,094,091,870.41
5.2 Classification by attribution of ownership
(a) Profit or loss attributable to minority
138,246,240.73 66,757,705.28
shareholders
(b) Net profit attributable to owners of parent
8,438,951,476.64 8,027,334,165.13
company
VI. Other comprehensive income, net of income tax (36,391,343.45) 224,061.25
Other comprehensive income attributable to owners of
(34,507,678.30) (239,399.77)
the parent company, net of tax
(I) Items that will not be reclassified subsequently to
profit or loss
(II) Other comprehensive income to be reclassified to
(34,507,678.30) (239,399.77)
profit or loss in subsequent periods
1.Exchange differences arising on conversion of
(34,507,678.30) (15,729,788.42)
financial statements denominated in foreign currencies
2.Gains and losses from changes in fair value of other
15,490,388.65
current assets
Other comprehensive income attributable to minority
(1,883,665.15) 463,461.02
interests, net of tax
VII. Total comprehensive income 8,540,806,373.92 8,094,315,931.66
Total comprehensive income attributable to owners of
8,404,443,798.34 8,027,094,765.36
the parent company
Total comprehensive income attributable to minority
136,362,575.58 67,221,166.30
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.909 0.860
(II) Diluted earnings per share 0.909 0.860
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 2020 to September 30th 2020
Unit: RMB
Item 2020 Q1-Q3 2019 Q1-Q3
I. Total operating income 19,096,192,393.23 17,354,516,639.53
Less: Total operating Cost 4,878,230,387.67 5,260,041,102.44
Business taxes and surcharges 212,000,163.18 179,363,153.88
23
Hikvision 2020 Q3 Report
Item 2020 Q1-Q3 2019 Q1-Q3
Selling expenses 2,007,406,390.91 2,352,469,006.14
Administrative expenses 584,100,618.17 531,467,438.33
Research and Development (R&D)
3,258,134,217.35 2,875,427,888.71
expenses
Financial expenses (238,495,703.61) (436,020,048.92)
Including : Interest expenses 22,674,749.11 49,350,390.76
Interest income 326,480,965.28 392,680,476.99
Add: Other income 1,351,019,789.13 1,070,578,767.20
Investment income 986,594,188.91 19,153,543.65
Including: Investment loss in
associated enterprise and joint- (12,559,206.81) (772,376.22)
venture enterprise
Gains from changes in fair values 36,094,761.07 12,788,786.31
Credit impairment losses (“-“) (26,484,698.83) 622,905,019.26
Impairment losses (“-“) of assets 1,595,892.90 51,323,003.42
Asset disposal income 10,746.11 191,846.66
II. Operating profit 10,743,646,998.85 8,368,709,065.45
Add: Non-operating income 11,895,468.93 12,793,513.71
Less: Non-operating expenses 4,114,046.66 6,921,272.37
III. Total profit 10,751,428,421.12 8,374,581,306.79
Less: Income tax expenses 1,106,073,358.20 997,044,554.62
IV. Net profit 9,645,355,062.92 7,377,536,752.17
(a) Net profit on continuous operation 9,645,355,062.92 7,377,536,752.17
V. Other comprehensive income, net of income
(774,633.17)
tax
(I) Items that will not be reclassified
subsequently to profit or loss
(II) Other comprehensive income to be
(774,633.17)
reclassified to profit or loss in subsequent periods
1.Gains and losses from changes in fair value of
(774,633.17)
other current assets
VI. Total comprehensive income 9,645,355,062.92 7,376,762,119.00
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
24
Hikvision 2020 Q3 Report
7. Consolidated Cash Flow Statement from January 1st 2020 to September 30th 2020
Unit: RMB
Item 2020 Q1-Q3 2019 Q1-Q3
I. Cash flows from operating activities:
Cash received from sale of goods or rendering of
services 44,732,201,357.96 39,797,920,691.39
Receipts of tax refunds 2,519,486,353.29 2,205,856,683.57
Other cash receipts relating to operating activities 1,120,966,888.55 1,108,671,779.38
Sub-total of cash inflows from operating activities 48,372,654,599.80 43,112,449,154.34
Cash payments for goods purchased and services
28,365,300,528.80 29,259,780,105.41
received
Cash paid to and on behalf of employees 7,786,708,739.25 6,690,990,896.32
Payments of various types of taxes 3,516,698,560.06 3,748,604,004.24
Other cash payments relating to operating activities 3,169,328,778.86 3,288,758,912.97
Sub-total of cash outflows from operating activities 42,838,036,606.97 42,988,133,918.94
Net Cash flows from Operating Activities 5,534,617,992.83 124,315,235.40
II. Cash flows from Investing Activities:
Cash receipts from recovery of investments 1,436,901,231.06
Cash receipts from investment income 151,548,143.79 10,579,222.38
Net cash receipts from disposals of fixed assets,
21,360,710.88 56,062,267.50
intangible assets and other long-term assets
Other cash receipts relating to investing activities 24,102,324.29 18,166,664.71
Sub-total of cash inflows from investing activities 1,633,912,410.02 84,808,154.59
Cash payments to acquire or construct fixed assets,
1,605,697,549.12 1,274,540,687.78
intangible assets and other long-term assets
Cash paid to acquire investments 1,831,979,614.38 2,884,220.00
Net cash paid to acquire subsidiaries and other business
65,351,582.07
units
Sub-total of cash outflows from investing activities 3,437,677,163.50 1,342,776,489.85
Net cash flows from Investing Activities (1,803,764,753.48) (1,257,968,335.26)
III. Cash flows from financing activities:
Cash receipts from capital contributions 159,764,987.03 113,220,262.15
Including: cash receipts from capital contributions
159,764,987.03 113,220,262.15
from minority owners of subsidiaries
Cash receipts from borrowings 3,681,920,917.95 7,150,799,943.42
Cash receipts from issuance of bonds 999,500,000.00
Sub-total of cash inflows from financing activities 4,841,185,904.98 7,264,020,205.57
Cash repayments of borrowings 1,734,060,296.82 2,826,949,887.78
Cash repayments of bonds 3,079,240,000.00
25
Hikvision 2020 Q3 Report
Cash payments for distribution of dividends or profits or
6,599,275,667.73 5,808,192,337.22
settlement of interest expenses
Other cash payments relating to financing activities 64,290,000.00 26,897,116.20
Sub-total of cash outflows from financing activities 8,397,625,964.55 11,741,279,341.20
Net cash flows from Financing Activities (3,556,440,059.57) (4,477,259,135.63)
IV. Effect of foreign exchange rate changes on Cash and
(418,677,132.16) 314,124,262.83
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents (244,263,952.38) (5,296,787,972.66)
Add: Opening balance of Cash and Cash Equivalents 26,515,668,008.40 26,031,011,733.89
VI. Closing Balance of Cash and Cash Equivalents 26,271,404,056.02 20,734,223,761.23
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
8. Cash Flow Statement of the Parent Company from January 1st 2020 to September 30th
2020
Unit: RMB
Item 2020 Q1-Q3 2019 Q1-Q3
I. Cash flows from Operating Activities::
Cash receipts from the sale of goods and the rendering of
16,415,929,623.98 12,029,215,025.03
services
Receipts of tax refunds 1,151,059,755.24 934,577,449.38
Other cash receipts relating to operating activities 601,515,335.11 596,615,907.62
Sub-total of cash inflows from operating activities 18,168,504,714.33 13,560,408,382.03
Cash payments for goods acquired and services received 5,642,609,260.24 6,141,625,941.11
Cash payments to and on behalf of employees 4,067,488,635.30 3,826,354,338.41
Payments of various types of taxes 2,309,740,849.52 2,274,516,905.16
Other cash payments relating to operating activities 1,077,193,118.06 1,374,026,139.24
Sub-total of cash outflows from operating activities 13,097,031,863.12 13,616,523,323.92
Net Cash flows from Operating Activities 5,071,472,851.21 (56,114,941.89)
II. Cash flows from Investing Activities:
Cash receipts from recovery of investments 2,800,000.00
Cash receipts from investment income 153,552,279.56 2,568,699.00
Net cash receipts from disposals of fixed assets, intangible
5,422,277.99 3,976,093.24
assets and other long-term assets
Other cash receipts relating to investing activities 1,655,981,987.34 3,066,451,513.72
Sub-total of cash inflows from investing activities 1,817,756,544.89 3,072,996,305.96
Cash payments to acquire or construct fixed assets,
360,168,318.03 264,771,882.74
intangible assets and other long-term assets
26
Hikvision 2020 Q3 Report
Cash payments to acquire investments 922,603,054.15
Net cash paid to acquire subsidiaries and other business
414,400,000.00
units
Other cash payments relating to investing activities 982,391,211.78
Sub-total of cash outflows from investing activities 1,282,771,372.18 1,661,563,094.52
Net Cash flows from Investing Activities 534,985,172.71 1,411,433,211.44
III. Cash flows from Financing Activities
Cash receipts from borrowings 2,480,000,000.00 3,679,240,000.00
Cash receipts from issuance of bonds 999,500,000.00
Sub-total of cash inflows from financing activities 3,479,500,000.00 3,679,240,000.00
Cash repayments of borrowings 1,000,000,000.00
Cash repayments of bonds 3,079,240,000.00
Cash payments for distribution of dividends or profits or
6,468,742,388.72 5,669,311,652.85
settlement of interest expenses
Other cash payments relating to financing activities 26,897,116.20
Sub-total of cash outflows from financing activities 7,468,742,388.72 8,775,448,769.05
Net Cash flows from Financing Activities (3,989,242,388.72) (5,096,208,769.05)
IV. Effect of foreign exchange rate changes on Cash and
(36,671,500.59) 140,012,598.62
Cash Equivalents
V. Net increase in cash and cash equivalents 1,580,544,134.61 (3,600,877,900.88)
Add: Beginning balance of cash and cash
16,656,028,410.72 18,998,934,287.59
equivalents
VI. Closing Balance of Cash and Cash Equivalents 18,236,572,545.33 15,398,056,386.71
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
4.2 Notes on financial statement adjustment
(1) Implementation of the new revenue standard for the first time since 2020, adjustments to the
implementation of relevant items in the financial statements at the beginning of the year
√Applicable □Inapplicable
Whether to adjust the balance sheet account at the beginning of the year
√Applicable □Inapplicable
Consolidated Balance Sheet
Unit: RMB
Item December 31st 2019 January 1st 2020 Adjustments
Current Assets:
Cash and bank balances 27,071,948,919.78 27,071,948,919.78 0.00
Held-for-trading financial assets 181.76 181.76 0.00
27
Hikvision 2020 Q3 Report
Item December 31st 2019 January 1st 2020 Adjustments
Notes receivable 973,236,789.02 973,236,789.02 0.00
Accounts receivable 21,307,927,200.28 21,272,964,582.56 -34,962,617.72
Receivables for financing 1,257,385,053.02 1,257,385,053.02 0.00
Prepayments 309,685,733.32 309,685,733.32 0.00
Other receivables 555,246,545.48 555,246,545.48 0.00
Inventories 11,267,986,843.11 10,756,027,592.41 -511,959,250.70
Contract assets 546,921,868.42 546,921,868.42
Non-current assets due within one
528,469,701.75 528,469,701.75 0.00
year
Other current assets 754,456,821.72 754,456,821.72 0.00
Total Current Assets 64,026,343,789.24 64,026,343,789.24 0.00
Non-current Assets:
Long-term receivables 1,382,536,761.22 1,382,536,761.22 0.00
Long-term equity investment 252,165,321.49 252,165,321.49 0.00
Other non-current financial assets 312,398,267.44 312,398,267.44 0.00
Fixed assets 5,791,218,720.87 5,791,218,720.87 0.00
Construction in progress 631,555,479.06 631,555,479.06 0.00
Intangible assets 1,046,122,507.64 1,046,122,507.64 0.00
Goodwill 273,611,961.96 273,611,961.96 0.00
Long-term deferred expenses 87,611,490.75 87,611,490.75 0.00
Deferred tax assets 688,849,263.70 688,849,263.70 0.00
Other non-current assets 865,586,676.92 865,586,676.92 0.00
Total Non-current Assets 11,331,656,451.05 11,331,656,451.05 0.00
Total Assets 75,358,000,240.29 75,358,000,240.29 0.00
Current Liabilities:
Short-term borrowings 2,640,082,485.15 2,640,082,485.15 0.00
Held-for-trading financial liabilities 652,428.18 652,428.18 0.00
Notes payable 1,239,584,016.70 1,239,584,016.70 0.00
Accounts payable 12,700,075,307.70 12,700,075,307.70 0.00
Receipts in advance 1,020,989,460.61 -1,020,989,460.61
Contract liabilities 1,128,239,007.61 1,128,239,007.61
Payroll payable 2,359,674,640.12 2,359,674,640.12 0.00
Taxes payable 991,342,805.91 991,342,805.91 0.00
Other payables 1,568,744,599.94 1,568,744,599.94 0.00
Including : Interests payable
Dividends payable 108,129,385.24 108,129,385.24 0.00
Non-current liabilities due within 86,123,154.06 86,123,154.06 0.00
28
Hikvision 2020 Q3 Report
Item December 31st 2019 January 1st 2020 Adjustments
one year
Other current liabilities 913,534,538.26 913,534,538.26 0.00
Total Current Liabilities 23,520,803,436.63 23,628,052,983.63 107,249,547.00
Non-current Liabilities:
Long-term borrowings 4,604,168,571.43 4,604,168,571.43 0.00
Long-term payables 50,181,416.72 50,181,416.72 0.00
Provisions 90,570,669.01 90,570,669.01 0.00
Deferred income 333,589,831.30 226,340,284.30 -107,249,547.00
Deferred tax liabilities 51,088,103.96 51,088,103.96 0.00
Other non-current liabilities 1,234,739,326.10 1,234,739,326.10 0.00
Total non-current liabilities 6,364,337,918.52 6,257,088,371.52 -107,249,547.00
Total liabilities 29,885,141,355.15 29,885,141,355.15 0.00
Owners’ Equity
Share capital 9,345,010,696.00 9,345,010,696.00 0.00
Capital reserves 4,126,943,698.96 4,126,943,698.96 0.00
Less: Treasury shares 2,148,273,864.36 2,148,273,864.36 0.00
Other comprehensive income -53,541,146.99 -53,541,146.99 0.00
Surplus reserves 4,672,505,348.00 4,672,505,348.00 0.00
Retained earnings 28,961,389,145.22 28,961,389,145.22 0.00
Total owners' equity attributable
44,904,033,876.83 44,904,033,876.83 0.00
to owner of the Company
Minority equity 568,825,008.31 568,825,008.31 0.00
Total owners' equity 45,472,858,885.14 45,472,858,885.14 0.00
Total liabilities and owners' equity 75,358,000,240.29 75,358,000,240.29 0.00
Balance Sheet of the Parent Company
Unit: RMB
Item December 31st 2019 January 1st 2020 Adjustments
Current Assets:
Cash and bank balances 16,851,590,525.05 16,851,590,525.05 0.00
Notes receivable 149,703,073.98 149,703,073.98 0.00
Accounts receivable 25,107,965,925.08 25,107,965,925.08 0.00
Receivables for financing 84,839,695.67 84,839,695.67 0.00
Prepayments 160,688,588.99 160,688,588.99 0.00
Other receivables 921,275,388.15 921,275,388.15 0.00
Including: Interests receivable
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Hikvision 2020 Q3 Report
Item December 31st 2019 January 1st 2020 Adjustments
Dividends receivable 2,550,000.00 2,550,000.00 0.00
Inventories 171,243,815.97 160,419,083.27 -10,824,732.70
Contract assets 10,824,732.70 10,824,732.70
Non-current assets due within one year 4,513,795.81 4,513,795.81 0.00
Other current assets 23,117,398.50 23,117,398.50 0.00
Total Current Assets 43,474,938,207.20 43,474,938,207.20 0.00
Non-current Assets:
Long-term receivables 681,568.43 681,568.43 0.00
Long-term equity investment 5,074,018,030.44 5,074,018,030.44 0.00
Other non-current financial assets 309,504,047.44 309,504,047.44 0.00
Fixed assets 2,831,295,145.61 2,831,295,145.61 0.00
Construction in progress 153,416,054.28 153,416,054.28 0.00
Intangible assets 188,362,883.75 188,362,883.75 0.00
Long-term deferred expenses 34,199,446.06 34,199,446.06 0.00
Deferred tax assets 126,357,792.34 126,357,792.34 0.00
Other non-current assets 21,619,464.07 21,619,464.07 0.00
Total Non-current Assets 8,739,454,432.42 8,739,454,432.42 0.00
Total Assets 52,214,392,639.62 52,214,392,639.62 0.00
Current Liabilities:
Short-term borrowings 2,001,781,388.89 2,001,781,388.89 0.00
Accounts payable 450,983,270.08 450,983,270.08 0.00
Receipts in advance 227,242,328.23 -227,242,328.23
Contract liabilities 227,242,328.23 227,242,328.23
Payroll payable 1,564,304,003.49 1,564,304,003.49 0.00
Taxes payable 796,890,945.83 796,890,945.83 0.00
Other payables 533,325,191.05 533,325,191.05 0.00
Including : Interests payable
Dividends payable 105,679,385.24 105,679,385.24 0.00
Non-current liabilities due within one year 9,539,251.98 9,539,251.98 0.00
Other current liabilities 913,534,538.26 913,534,538.26 0.00
Total Current Liabilities 6,497,600,917.81 6,497,600,917.81 0.00
Non-current Liabilities:
Long-term borrowings 3,126,200,000.00 3,126,200,000.00 0.00
Provisions 62,863,096.83 62,863,096.83 0.00
Deferred income 162,018,728.45 162,018,728.45 0.00
Other non-current liabilities 1,234,739,326.10 1,234,739,326.10 0.00
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Hikvision 2020 Q3 Report
Item December 31st 2019 January 1st 2020 Adjustments
Total non-current liabilities 4,585,821,151.38 4,585,821,151.38 0.00
Total liabilities 11,083,422,069.19 11,083,422,069.19 0.00
Owners’ Equity
Share capital 9,345,010,696.00 9,345,010,696.00 0.00
Capital reserves 4,064,833,739.52 4,064,833,739.52 0.00
Less: Treasury shares 2,148,273,864.36 2,148,273,864.36 0.00
Surplus reserves 4,672,505,348.00 4,672,505,348.00 0.00
Retained earnings 25,196,894,651.27 25,196,894,651.27 0.00
Total owners' equity 41,130,970,570.43 41,130,970,570.43 0.00
Total liabilities and owners' equity 52,214,392,639.62 52,214,392,639.62 0.00
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Hikvision 2020 Q3 Report
(2) Description of retrospective adjustment to prior comparative data for the implementation of the new
revenue standard since 2020.
√Applicable □Inapplicable
Consolidated Balance Sheet
Unit: RMB
Book value presented Book value presented
according to former revenue according to the New
Reclassification
standards on December 31st Revenue Standard on
2019 January 1st 2020
Accounts receivable (Note 1) 21,307,927,200.28 -34,962,617.72 21,272,964,582.56
Inventories (Note 1) 11,267,986,843.11 -511,959,250.70 10,756,027,592.41
Contract assets (Note 1) 546,921,868.42 546,921,868.42
Other non-current assets-
Completed but unsettled assets
751,457,739.44 -751,457,739.44
formed by construction contracts
(Note 1)
Other non-current assets-contract
751,457,739.44 751,457,739.44
assets (Note 1)
Receipts in advance (Note 2) 1,020,989,460.61 -1,020,989,460.61
Contract liabilities (Note 2) 1,128,239,007.61 1,128,239,007.61
Deferred income (Note 2) 333,589,831.30 -107,249,547.00 226,340,284.30
Note1: The construction contracts undertaken by the Group were performance obligations to be fulfilled over a
period of time, and the Group recognized revenue based on the progress of fulfillment of the contract. The amount
of revenue recognized by the Group based on the progress of fulfillment of the project in excess of the processed
settlement amounts for contracts in progress is reclassified as contract assets. Accordingly, as at January 1st 2020,
the Group’s completed but unsettled assets of RMB 1,263,416,990.14 and accounts receivable of RMB
34,962,617.72 formed by construction contracts previously presented under inventory and other non-current assets
were reclassified as contract assets, of which the amounts expected to be to be collected in more than one year were
presented under other non-current assets.
Note 2：Receipts in advance received by the Group for sales of goods and services rendered were reclassified as
contract liabilities as at January 1st 2020. The Group's obligations to provide services to customers in consideration
for the provision of cloud storage and other services were reclassified to contract liabilities as at January 1st 2020.
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Hikvision 2020 Q3 Report
Balance Sheet of the Parent Company
Unit: RMB
Book value presented Book value presented
according to former revenue according to the New
Reclassification
standards on December 31st Revenue Standards on
2019 January 1st 2020
Inventories (Note 1) 171,243,815.97 -10,824,732.70 160,419,083.27
Contract assets (Note 1) 10,824,732.70 10,824,732.70
Receipts in advance (Note 2) 227,242,328.23 -227,242,328.23
Contract liabilities (Note 2) 227,242,328.23 227,242,328.23
Note1: The construction contracts undertaken by the Company were performance obligations to be fulfilled over a
period of time, and the Company recognized revenue based on the progress of fulfillment of the contract. The
amount of revenue recognized by the Company based on the progress of fulfillment of the project in excess of the
processed settlement amounts for contracts in progress is reclassified as contract assets. Accordingly, as at January
1st 2020, the Company’s completed but unsettled assets of RMB 10,824,732.70 from construction contracts
previously presented under inventory were reclassified as contract assets.
Note 2：Receipts in advance received by the Company for the sales of goods and services rendered were reclassified
to contract liabilities as at January 1st 2020.
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Hikvision 2020 Q3 Report
4.3 Audit Report
Whether audit has been performed on this 2020 3rd Quarter Report
□ Yes √ No
The Company’s 2020 3rd Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
October 24th 2020
Note: This document is a translated version of the Chinese version 2020 Q3 Financial Report
(“2020 年第三季度报告全文”), and the published 2020 Q3 report in the Chinese version shall
prevail. The complete published Chinese 2020 Q3 Financial Report may be obtained at
http://www.cninfo.com.cn.
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