HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2021 Quarter 1 Report
January to March 2021
April 17th 2021
Hikvision 2021 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.
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 2021 Q1 Financial Report (“2021 年第
一季度报告全文”), and the published 2021 Q1 report in the Chinese version shall prevail. The
complete published Chinese 2021 Q1 Financial Report may be obtained at http://www.cninfo.com.cn.
2
Hikvision 2021 Q1 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
YoY Change(%) between 2020 Q1 and
2021 Q1 2020 Q1
2021 Q1
Operating income (RMB) 13,988,385,531.58 9,428,902,974.38 48.36%
Net profits attributable to shareholders of the Company
2,169,440,312.25 1,496,269,608.01 44.99%
(RMB)
Net profits attributable to shareholders of the Company
2,022,056,316.46 1,469,074,026.95 37.64%
excluding non-recurring gains and losses (RMB)
Net cash flows from operating activities (RMB) -2,018,107,114.23 -3,982,048,164.94 49.32%
Basic earnings per share (RMB/share) 0.235 0.163 44.17%
Diluted earnings per share (RMB/share) 0.233 0.163 42.94%
Weighted average Return on Equity (ROE) 3.95% 3.28% 0.67%
Change(%) between December 31st
On March 31st 2021 On December 31st 2020
2020 and March 31st 2021
Total assets (RMB) 86,378,576,574.09 88,701,682,384.20 -2.62%
Net assets attributable to shareholders of the Company
55,954,297,409.10 53,794,311,162.05 4.02%
(RMB)
3
Hikvision 2021 Q1 Report
The total share capital of the Company as of the previous trading day of the financial report disclosure:
The total share capital of the Company as of the previous trading day of the financial report disclosure
9,343,417,190
(share)
Fully diluted earnings per share calculated using the latest share capital:
Fully diluted earnings per share (RMB/share) calculated with the latest share capital 0.232
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item January 1st 2021–March 31st 2021
Profit or loss from disposal of non-current assets (including the write-off for the
3,464,415.12
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
136,094,421.65
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,
51,180,033.58
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 9,727,970.62
Less: Impact of income tax 22,186,726.25
Impact of the minority interests (after tax) 30,896,118.93
Total 147,383,995.79
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 current reporting period, the Company did not classify an item as a non-recurring gain/loss according to the
definition in the , or classifies any non-recurring gain/loss item
mentioned in the aforementioned note as a recurrent gain/loss item.
4
Hikvision 2021 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 preferred shareholders (if any) whose voting rights have
Total number of common shareholders at the end of the reporting period 234,089 0
been 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
the period-end with trading Status Amount
percentage (%)
restrictions
Domestic State-owned
China Electronics Technology HIK Group Co., Ltd. 38.88% 3,632,897,256 0 Pledged 50,000,000
corporation
Gong Hongjia Overseas individual 10.30% 962,504,814 962,504,814 Pledged 202,100,000
Domestic non-state-
Xinjiang Weixun Investment Management Limited Partnership 4.82% 450,795,176 0
owned corporation
Shanghai Gaoyi Asset Management Partnership (Limited Partnership) -
Other 2.30% 215,000,000 0
Gaoyi Adjacent Mountain 1 Yuanwang Fund
Domestic non-state-
Xinjiang Pukang Investment Limited Partnership 1.95% 182,510,174 0
owned corporation
The 52nd Research Institute at China Electronics Technology Group Domestic State-owned
1.93% 180,775,044 0
Corporation corporation
Hu Yangzhong Domestic Individual 1.66% 155,246,477 136,639,858
Hong Kong Securities Clearing Company Ltd.(HKSCC) Overseas corporation 1.32% 123,501,524 0
Domestic State-owned
CITIC Securities Company Limited 1.15% 107,578,342 0
corporation
Bank of China Co., Ltd. - Efunds Blue Chip Select Hybrid Securities
Other 0.96% 90,000,160 0
Investment Fund
5
Hikvision 2021 Q1 Report
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
Type of shares
Number of common shares without trading restrictions held
Name of shareholder
at the period-end Type Number
China Electronics Technology HIK Group Co., Ltd. 3,632,897,256 RMB ordinary shares 3,632,897,256
Xinjiang Weixun Investment Management Limited Partnership 450,795,176 RMB ordinary shares 450,795,176
Shanghai Gaoyi Asset Management Partnership (Limited Partnership) -
215,000,000 RMB ordinary shares 215,000,000
Gaoyi Adjacent Mountain 1 Yuanwang Fund
Xinjiang Pukang Investment Limited Partnership 182,510,174 RMB ordinary shares 182,510,174
The 52nd Research Institute at China Electronics Technology Group Co.
180,775,044 RMB ordinary shares 180,775,044
Ltd.
Hong Kong Securities Clearing Company Ltd.(HKSCC) 123,501,524 RMB ordinary shares 123,501,524
CITIC Securities Company Limited 107,578,342 RMB ordinary shares 107,578,342
Bank of China Co., Ltd. - Efunds Blue Chip Select Hybrid Securities
90,000,160 RMB ordinary shares 90,000,160
Investment Fund
Central Huijin Investment Ltd. 65,818,800 RMB ordinary shares 65,818,800
Guo Minfang 57,670,726 RMB ordinary shares 57,670,726
China Electronics Technology HIK Group Co., Ltd. and The 52nd Research Institute at China Electronics Technology
Group are all subject to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei, limited
partner of Xinjiang Pukang Investment Limited Partnership, is the spouse of Mr. Gong Hongjia, overseas individual
Explanation on associated relationship and concerted actions among shareholder of the Company. Hu Yangzhong, domestic individual, is holding shares in both Xinjiang Weixun
above shareholders Investment Management Limited Partnership and Xinjiang Pukang Investment Limited Partnership.
Except for these, the Company does not know whether the other shareholders are related parties or whether they are
acting-in-concert parties in accordance with the Measures for Management of the Disclosure of the Shareholding
Changes of Shareholders of the Listed Company.
6
Hikvision 2021 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
7
Hikvision 2021 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 on YoY
Balance on March
Item December 31st 2020 change Note of Changes
31st 2021 (RMB)
(RMB) (%)
Notes receivable 1,315,201,363.11 1,303,252,705.19
-22.09% Decrease in note settlements
Receivables for financing 1,226,759,192.33 1,959,601,195.25
Other receivables 776,738,302.85 519,143,350.82 49.62% Increase in employee housing loans
According to the new lease
Right-of-use assets 378,652,592.50 0.00 100.00% standard, recognized the right-of-
use assets
2020 year-end bonus were issued
Payroll payable 1,463,896,374.55 2,877,786,430.71 -49.13%
this quarter
According to the new lease
Lease liabilities 253,242,830.34 0.00 100.00% standard, recognized the lease
liability
Minority shareholders' Increased profits from innovative
962,423,655.91 685,432,238.49 40.41%
equity business subsidiaries
1.2 Explanation for variations in income statement items
YoY
Item 2021 Q1 (RMB) 2020 Q1 (RMB) Change Note of changes
(%)
Increase in market demand and
Total operating income 13,988,385,531.58 9,428,902,974.38 48.36%
expansion of sales
Total operating costs 7,439,068,423.51 4,963,386,892.35 49.88% Increase with sales revenue growth
Business taxes and
101,336,830.02 49,517,189.63 104.65% Sales growth impact
surcharges
Research and Development R&D investment continued to
1,687,820,001.28 1,218,291,551.09 38.54%
(R&D) expenses increase
Financial expenses -102,974,119.07 -209,496,786.15 50.85% Increase in foreign exchange losses
8
Hikvision 2021 Q1 Report
YoY
Item 2021 Q1 (RMB) 2020 Q1 (RMB) Change Note of changes
(%)
Other income 464,549,234.50 301,718,659.20 53.97% Increase in government subsidies
Increase in foreign exchange
Investment Income 5,303,647.94 -2,717,395.11 295.17%
forward trading income
Increase in gains from changes in
Gains from changes in fair
34,574,820.33 -28,072,695.09 223.16% fair value of other non-current
value
financial assets
Increase in credit impairment loss
Credit impairment losses -197,732,278.00 2,621,244.53 7643.45%
reserves
Increase in profits led to increase
Income tax expenses 475,617,677.61 317,562,607.29 49.77%
in accrued income tax expense
Profit or loss attributable to Increased profitability of
265,189,109.84 57,130,939.00 364.18%
minority shareholders innovative business subsidiaries
1.3 Explanation for variations in cash flow statement items
YoY Change
Item 2021 Q1 (RMB) 2020 Q1 (RMB) Note of changes
(%)
Net cash flows from
-2,018,107,114.23 -3,982,048,164.94 49.32% Increase in sales collection
operating activities
Net cash flows from Decrease in equity investment
-559,863,626.77 -824,520,039.21 32.10%
investing activities expenditures
Net cash flows from Net borrowing inflow decreased
-458,675,244.36 1,257,055,108.43 -136.49%
financing activities during the current reporting period
2. Progress and influence of significant events, analysis and explanation of corresponding
solutions.
√ Applicable □ Inapplicable
On January 8th 2021, the 21st meeting of the fourth session of the board of directors of the Company considered
and approved the Proposal on the Spin-off of the Subsidiary, Hangzhou EZVIZ Network Co., Ltd. to be Listed on
the SSE STAR (Sci-Tech Innovation Board) Market, by Hangzhou Hikvision Digital Technology Co., Ltd. and other
proposals related to the spin-off, approving the spin-off of the Company’s subsidiary Hangzhou EZVIZ Network
Co., Ltd. to be listed on the STAR Market of the Shanghai Stock Exchange. Upon completion of the spin-off, the
Company's shareholding structure will not be changed, and the Company still has the controlling interest in EZVIZ
Network.
9
Hikvision 2021 Q1 Report
On March 4th 2021, the Company received a notice from shareholder Gong Hongjia, informing the Company
that between November 6th 2020 and March 3rd 2021, Mr. Gong Hongjia, through block transactions, reduced his
holdings of the Company’s shares by a total of 113,103,400 shares, representing 1.21% of the total share capital of
the Company. After the reduction, Mr. Gong Hongjia holds 972,504,814 shares of the Company, representing 10.41%
of the total share capital of the Company.
On April 18th 2019, the 10th meeting of the fourth session of the board of directors of the Company considered
and approved the Proposal on Entering into Entrusted Management Agreement with the Company’s Controlling
Shareholder and Related Party Transactions. On April 19th 2019, Hangzhou EZVIZ Network Co., Ltd. (“EZVIZ
Network”), a controlled subsidiary of the Company, entered into an Entrusted Management Agreement with
CETHIK Group Co., Ltd. (“CETHIK”), the controlling shareholder of the Company, and the Company’s wholly-
owned subsidiary Hangzhou EZVIZ Technology Co., Ltd. (“EZVIZ Technology”). Pursuant to the Entrusted
Management Agreement, CETHIK entrusts the actual operation and management power of EZVIZ Technology to
EZVIZ Network, which shall assume the full responsibility of the production, operation, and management of EZVIZ
Technology. EZVIZ Network shall be entitled to the distributable profits generated by EZVIZ Technology before
and after the entrusted management. At the same time, EZVIZ Network shall pay CETHIK the capital occupation
fee at a rate equal to the interest rate of the central bank for loans of over five years plus 1%, based on the paid-in
capital of EZVIZ Technology.
During the current reporting period, based on the actual production, operation and business requirements of
EZVIZ Network and to further optimize the business procedures of EZVIZ Network, upon friendly and thorough
negotiation among the three parties to the agreement, EZVIZ Network entered into the Termination Agreement of
the Entrusted Management Agreement with CETHIK and EZVIZ Technology on March 27th 2021. EZVIZ Network
would no longer exercise the actual operation and management power of EZVIZ Technology, and was no longer
responsible for the production, operation and management of EZVIZ Technology.
Temporary public disclosure website
Overview of significant events Disclosure Date
index
Announcement on Entering into Entrusted Management Agreement
with the Company’s Controlling Shareholder and Related Party April 20th 2019 www.cninfo.com.cn
Transactions (announcement No.: 2019-026)
Proposal on the Spin-off of the Subsidiary Hangzhou EZVIZ
Network Co., Ltd. to Be Listed on the SSE STAR (Sci-Tech January 9th 2021 www.cninfo.com.cn
Innovation Board) Market
Announcement on Reduction of More Than 1% of Shares by
March 5th 2021 www.cninfo.com.cn
Shareholder (announcement No.: 2021-018)
Announcement on Progress of Entering into the Termination
Agreement of the Entrusted Management Agreement and Related March 30th 2021 www.cninfo.com.cn
Party Transactions (announcement No.: 2021-025)
10
Hikvision 2021 Q1 Report
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
11
Hikvision 2021 Q1 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 Start Expiration during the impairment and loss amount
derivatives investment current investment amount to the Company’s
investment ship transaction derivatives Date 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 October June 18th
No No exchange 351,670.38 351,670.38 142,730.18 - - 333,855.82 5.87% 1,660.30
bank 21st 2020 2021
contract
Total 351,670.38 -- -- 351,670.38 142,730.18 -- - 333,855.82 5.87% 1,660.30
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 reporting For specific information on risk analysis and control measures, please refer to the Announcement on Conducting Foreign Exchange Hedging
period (including but not limited to market risk, liquidity risk, credit risk, Transactions in 2019 (Announcement No. 2019-021) disclosed by the Company on April 20th 2019 and Announcement on the Implementation of
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.
12
Hikvision 2021 Q1 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 operational result from January 1st 2021 to June 30th 2021
□Applicable √Inapplicable
7．Major contracts for daily operations
□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.
13
Hikvision 2021 Q1 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
Type of The main content of the
Time of Location of Index of basic situation of
Method of reception reception Reception object discussion and the
reception reception the research
object information provided
106 investors including CNINF, Investor Relations
December 22nd Headquarters Site Research and The Company's
Institutional China Asset Activity Record: From
2020 to January meeting room of the telephone operating conditions
investors Management-Zhang Fan, December 22rd 2020 to
11th 2021 Company communication and future prospects
etc. January 11th 2021
The Company's CNINF, Investor Relations
January 12th Headquarters Site Research and 138 investors including
Institutional operating conditions Activity Record: From
2021 to January meeting room of the telephone Huachuang Securities-
investors and future prospects January 12th 2021 to
29th 2021 Company communication Meng Can, etc.
January 29th 2021
CNINF, Investor Relations
February 1st Headquarters Site Research and 56 investors including The Company's
Institutional Activity Record: From
2021 to March meeting room of the telephone Haitong self-operated - operating conditions
investors February 1st 2021 to March
2nd 2021 Company communication Wang Jing, etc. and future prospects
2nd 2021
The Company's CNINF, Investor Relations
March 3rd 2021 Headquarters Site Research and 145 investors including
Institutional operating conditions Activity Record: From
to March 17th meeting room of the telephone Orient Securities-Kuai
investors and future prospects March 3rd 2021 to March
2021 Company communication Jian, etc.
17th 2021
14
Hikvision 2021 Q1 Report
Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
Unit: RMB
Item March 31st 2021 December 31st 2020
Current Assets:
Cash and bank balances 32,111,011,899.49 35,459,729,108.27
Held-for-trading financial assets 28,966,015.66 22,679,846.77
Notes receivable 1,315,201,363.11 1,303,252,705.19
Accounts receivable 20,973,667,434.48 21,979,380,716.86
Receivables for financing 1,226,759,192.33 1,959,601,195.25
Prepayments 358,132,475.17 296,334,689.86
Other receivables 776,738,302.85 519,143,350.82
Inventories 13,296,205,149.20 11,477,906,040.70
Contract assets 196,024,031.95 245,754,510.98
Non-current assets due within one year 1,152,521,256.39 1,001,208,813.83
Other current assets 638,134,044.36 497,914,506.64
Total Current Assets 72,073,361,164.99 74,762,905,485.17
Non-current Assets:
Long-term receivables 1,898,992,941.58 2,105,570,004.53
Long-term equity investment 852,725,144.92 864,026,710.23
Other non-current financial assets 514,899,633.97 491,939,067.27
Fixed assets 5,873,594,023.63 5,876,007,536.60
Construction in progress 1,715,245,946.60 1,425,235,193.72
Right-of-use assets 378,652,592.50
Intangible assets 1,245,928,073.34 1,251,317,923.69
Goodwill 274,461,013.86 274,203,665.20
Long-term deferred expenses 105,494,101.65 108,584,686.85
Deferred tax assets 814,553,795.53 820,380,954.86
Other non-current assets 630,668,141.52 721,511,156.08
Total Non-current Assets 14,305,215,409.10 13,938,776,899.03
Total Assets 86,378,576,574.09 88,701,682,384.20
Current Liabilities:
Short-term borrowings 3,654,845,187.46 3,999,246,634.59
Held-for-trading financial liabilities 2,068,250.71 7,405,771.15
Notes payable 1,249,039,557.65 1,036,920,229.85
Accounts payable 9,819,229,848.36 13,593,884,790.19
Contract Liabilities 2,036,442,723.36 2,161,166,671.26
15
Hikvision 2021 Q1 Report
Item March 31st 2021 December 31st 2020
Payroll payable 1,463,896,374.55 2,877,786,430.71
Taxes payable 2,102,853,694.16 1,770,057,908.62
Other payables 1,638,905,084.46 1,525,053,355.95
Including : Interests payable
Dividends payable 99,978,972.64 205,898,523.84
Non-current liabilities due within one year 3,487,487,119.31 3,507,680,339.78
Other current liabilities 815,971,604.11 745,711,579.57
Total Current Liabilities 26,270,739,444.13 31,224,913,711.67
Non-current Liabilities:
Long-term borrowings 1,938,063,534.97 1,961,167,761.30
Lease liabilities 253,242,830.34
Long-term payables 8,361,807.34 39,595,459.35
Provisions 132,330,294.91 151,443,871.02
Deferred income 170,939,305.96 190,878,987.69
Deferred tax liabilities 93,050,570.22 92,979,823.89
Other non-current liabilities 595,127,721.21 560,959,368.74
Total non-current liabilities 3,191,116,064.95 2,997,025,271.99
Total liabilities 29,461,855,509.08 34,221,938,983.66
Owners’ Equity
Share capital 9,343,417,190.00 9,343,417,190.00
Capital reserves 5,240,457,954.06 5,178,777,462.09
Less: Treasury shares 1,190,255,442.42 1,121,918,737.47
Other comprehensive income (87,791,779.16) (84,993,926.94)
Surplus reserves 4,672,505,348.00 4,672,505,348.00
Retained earnings 37,975,964,138.62 35,806,523,826.37
Total owners' equity attributable to
55,954,297,409.10 53,794,311,162.05
owner of the Company
Minority equity 962,423,655.91 685,432,238.49
Total owners' equity 56,916,721,065.01 54,479,743,400.54
Total liabilities and owners' equity 86,378,576,574.09 88,701,682,384.20
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
16
Hikvision 2021 Q1 Report
2. Balance Sheet of the Parent Company
Unit: RMB
Item March 31st 2021 December 31st 2020
Current Assets:
Cash and bank balances 25,679,145,255.63 23,476,606,330.08
Notes receivable 114,004,717.43 107,411,912.35
Accounts receivable 23,983,472,376.09 24,193,392,179.36
Receivables for financing 22,284,836.68 12,216,215.65
Prepayments 82,699,584.12 62,946,087.75
Other receivables 2,224,723,264.00 726,703,133.65
Including: Interests receivable
Dividends receivable 22,910,404.14 22,910,404.14
Inventories 285,948,942.40 204,216,250.73
Contract assets 4,167,307.23 3,311,250.08
Non-current assets due within one year 73,600,189.74 71,208,685.76
Other current assets 24,535,425.21 10,110,869.86
Total Current Assets 52,494,581,898.53 48,868,122,915.27
Non-current Assets:
Long-term receivables 35,801,090.54 47,762,348.01
Long-term equity investment 6,803,099,956.82 6,727,373,453.97
Other non-current financial assets 512,015,413.97 489,054,847.27
Fixed assets 2,763,703,825.04 2,762,700,997.83
Construction in progress 381,675,184.52 388,903,828.81
Right-of-use assets 76,018,434.74
Intangible assets 159,917,787.84 158,917,438.86
Long-term deferred expenses 40,463,535.71 43,264,691.73
Deferred tax assets 110,066,596.99 110,066,596.99
Other non-current assets 6,189,019.63 2,740,576.47
Total Non-current Assets 10,888,950,845.80 10,730,784,779.94
Total Assets 63,383,532,744.33 59,598,907,695.21
Current Liabilities:
Short-term borrowings 1,030,909,486.11 1,431,233,375.00
Accounts payable 509,194,119.62 540,664,512.60
Contract liabilities 261,904,524.56 240,629,015.92
17
Hikvision 2021 Q1 Report
Item March 31st 2021 December 31st 2020
Payroll payable 620,881,187.83 1,618,357,135.99
Taxes payable 1,828,628,827.81 1,539,095,196.97
Other payables 3,074,411,695.11 659,214,959.62
Including : Interests payable
Dividends payable 99,978,972.64 205,898,523.84
Non-current liabilities due within
3,118,653,409.82 3,219,794,958.37
one year
Other current liabilities 656,728,340.61 589,167,743.26
Total Current Liabilities 11,101,311,591.47 9,838,156,897.73
Non-current Liabilities:
Lease liabilities 42,048,898.62
Provisions 85,230,299.84 85,230,299.84
Deferred Income 95,908,461.07 122,455,935.44
Other non-current liabilities 595,127,721.21 560,959,368.74
Total non-current liabilities 818,315,380.74 768,645,604.02
Total liabilities 11,919,626,972.21 10,606,802,501.75
Owners’ Equity
Share capital 9,343,417,190.00 9,343,417,190.00
Capital reserves 4,823,976,370.94 4,770,210,334.16
Less: Treasury shares 1,190,255,442.42 1,121,918,737.47
Surplus reserves 4,672,505,348.00 4,672,505,348.00
Retained earnings 33,814,262,305.60 31,327,891,058.77
Total owners' equity 51,463,905,772.12 48,992,105,193.46
Total liabilities and owners' equity 63,383,532,744.33 59,598,907,695.21
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
18
Hikvision 2021 Q1 Report
3. Consolidated Income Statement
Unit: RMB
Item 2021 Q1 2020 Q1
I. Total operating income 13,988,385,531.58 9,428,902,974.38
Including：operating costs 13,988,385,531.58 9,428,902,974.38
II．Total operating costs 11,316,658,363.91 7,747,072,149.74
Including：operating costs 7,439,068,423.51 4,963,386,892.35
Business taxes and surcharges 101,336,830.02 49,517,189.63
Selling expenses 1,786,834,444.08 1,375,631,338.26
Administrative expenses 404,572,784.09 349,741,964.56
Research and Development (R&D) expenses 1,687,820,001.28 1,218,291,551.09
Financial expenses (102,974,119.07) (209,496,786.15)
Including：Interest expenses 52,121,944.86 48,701,459.47
Interest income 183,538,676.95 153,642,155.64
Add: Other Income 464,549,234.50 301,718,659.20
Investment income (loss“-“) 5,303,647.94 (2,717,395.11)
Including: Investment gains (losses) in associated
(11,301,565.31) (9,935,360.93)
enterprise and joint-venture enterprise
Gains (loss “-“) from changes in fair values 34,574,820.33 (28,072,695.09)
Credit impairment losses (“-“) (197,732,278.00) 2,621,244.53
Impairment losses (“-“) of assets (81,411,914.50) (103,828,115.83)
Asset disposal income (loss“-“) 3,464,415.12 1,353.60
III. Operating profit (loss“-“) 2,900,475,093.06 1,851,553,875.94
Add: Non-operating income 15,425,698.32 24,229,257.85
Less: Non-operating expenses 5,653,691.68 4,819,979.49
IV. Total profit (loss“-“) 2,910,247,099.70 1,870,963,154.30
Less: Income tax expenses 475,617,677.61 317,562,607.29
V. Net profit (loss“-“) 2,434,629,422.09 1,553,400,547.01
5.1 Classification by operation continuity
(a) Net profit (loss) on continuous operation 2,434,629,422.09 1,553,400,547.01
(b) Net profit (loss) on terminated operation
5.2 Classification by attribution of ownership
(a) Net profit attributable to owners of parent company 2,169,440,312.25 1,496,269,608.01
(b) Profit or loss attributable to minority shareholders 265,189,109.84 57,130,939.00
VI. Other comprehensive income, net of income tax (2,726,280.29) (37,242,955.93)
19
Hikvision 2021 Q1 Report
Item 2021 Q1 2020 Q1
Other comprehensive income attributable to owners of the
(2,797,852.20) (34,437,334.57)
Company, net of tax
(I) Items that will not be reclassified subsequently to profit or
loss
(II) Other comprehensive income to be reclassified to profit or
(2,797,852.20) (34,437,334.57)
loss in subsequent periods
1. Other comprehensive income that can be converted to
profit or loss under the equity method
2.Changes in the fair value of other debt investments
3.Amount of financial assets reclassified and included in
other comprehensive income
4. Other debt investment credit impairment reserves
5. Cash flow hedge reserve
6.Exchange differences arising on conversion of financial
(2,797,852.20) (34,437,334.57)
statements denominated in foreign currencies
7.others
Other comprehensive income attributable to minority interests,
71,571.91 (2,805,621.36)
net of tax
VII. Total comprehensive income 2,431,903,141.80 1,516,157,591.08
Total comprehensive income attributable to owners of the
2,166,642,460.05 1,461,832,273.44
parent company
Total comprehensive income attributable to minority
265,260,681.75 54,325,317.64
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.235 0.163
(II) Diluted earnings per share 0.233 0.163
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 2021 Q1 2020 Q1
I. Total operating income 5,525,726,049.24 3,888,284,807.12
Less: Total operating Cost 1,203,075,535.63 1,214,991,297.16
Business taxes and surcharges 56,815,962.05 36,706,687.00
Selling expenses 673,606,665.39 511,328,876.11
Administrative expenses 131,045,785.41 145,493,911.77
Research and Development (R&D) expenses 1,049,402,945.94 830,544,229.73
Financial expenses (201,426,530.85) (143,585,206.84)
Including : Interest expenses 1,151,813.31 8,098,667.88
Interest income 125,405,534.02 113,932,437.22
Add: Other income 313,529,482.40 255,891,866.72
20
Hikvision 2021 Q1 Report
Item 2021 Q1 2020 Q1
Investment income 28,349,522.34 (6,057,956.31)
Including: Investment gain (loss) in
associated enterprise and joint-venture (9,009,792.99) (6,057,956.31)
enterprise
Gains (loss “-“) from changes in fair values 22,960,566.70 (30,856,367.84)
Credit impairment losses (“-“) (58,852,300.79) 19,945,798.13
Impairment losses (“-“) of assets 607,190.96 1,062,741.98
Asset disposal income (loss“-“) 3,462,440.34 137.59
II. Operating profit (loss “-“) 2,923,262,587.62 1,532,791,232.46
Add: Non-operating income 2,274,141.76 1,636,767.26
Less: Non-operating expenses 328,615.42 812,202.21
III. Total profit (loss “-“) 2,925,208,113.96 1,533,615,797.51
Less: Income tax expenses 438,836,867.13 153,380,596.34
IV. Net profit (loss “-“) 2,486,371,246.83 1,380,235,201.17
(a) Net profit (loss “-“) on continuous operation 2,486,371,246.83 1,380,235,201.17
(b) Net profit (loss “-“) on terminated operation
V. Other comprehensive income, net of income tax
VI. Total comprehensive income 2,486,371,246.83 1,380,235,201.17
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 2021 Q1 2020 Q1
I. Cash flows from operating activities:
Cash received from sale of goods or rendering
16,428,465,685.12 12,364,575,383.68
of services
Receipts of tax refunds 991,809,469.82 701,767,590.55
Other cash receipts relating to operating
588,410,871.02 253,999,575.53
activities
Sub-total of cash inflows from operating
18,008,686,025.96 13,320,342,549.76
activities
Cash payments for goods purchased and
13,971,786,080.20 11,970,068,113.92
services received
Cash paid to and on behalf of employees 4,336,320,740.87 3,665,925,547.95
Payments of various types of taxes 938,996,033.15 1,179,545,852.70
Other cash payments relating to operating
779,690,285.97 486,851,200.13
activities
Sub-total of cash outflows from operating
20,026,793,140.19 17,302,390,714.70
activities
21
Hikvision 2021 Q1 Report
Item 2021 Q1 2020 Q1
Net Cash flows from Operating Activities (2,018,107,114.23) (3,982,048,164.94)
II. Cash flows from Investing Activities:
Cash receipts from recovery of investments 1,426,348,673.18 2,800,000.00
Cash receipts from investment income 7,216,471.65
Net cash receipts from disposals of fixed
assets, intangible assets and other long-term 5,980,574.19 3,661,297.33
assets
Other cash receipts relating to investing
18,179,686.32 19,764,416.70
activities
Sub-total of cash inflows from investing
1,450,508,933.69 33,442,185.68
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 600,635,383.06 545,872,224.89
assets
Cash paid to acquire investments 1,409,737,177.40
Net cash paid to acquire subsidiaries and
312,090,000.00
other business units
Sub-total of cash outflows from investing
2,010,372,560.46 857,962,224.89
activities
Net cash flows from Investing Activities (559,863,626.77) (824,520,039.21)
III. Cash flows from financing activities:
Cash receipts from capital contributions 5,500,000.00 4,500,000.00
Including: cash receipts from capital
contributions from minority owners of 5,500,000.00
subsidiaries
Cash receipts from borrowings 438,000,000.00 1,825,210,239.36
Sub-total of cash inflows from financing
443,500,000.00 1,829,710,239.36
activities
Cash repayments of borrowings 807,825,160.67 518,982,508.77
Cash payments for distribution of dividends
64,425,606.92 53,672,622.16
or profits or settlement of interest expenses
Other cash payments relating to financing
29,924,476.77
activities
Sub-total of cash outflows from financing
902,175,244.36 572,655,130.93
activities
Net cash flows from Financing Activities (458,675,244.36) 1,257,055,108.43
IV. Effect of foreign exchange rate changes on
(37,562,227.05) 14,803,212.07
Cash and Cash Equivalents
V. Net decrease in Cash and Cash Equivalents (3,074,208,212.41) (3,534,709,883.65)
Add: Opening balance of Cash and Cash
35,024,837,878.31 26,515,668,008.40
Equivalents
VI. Closing Balance of Cash and Cash
31,950,629,665.90 22,980,958,124.75
Equivalents
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
22
Hikvision 2021 Q1 Report
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2021 Q1 2020 Q1
I. Cash flows from Operating Activities::
Cash receipts from the sale of goods and the
6,216,217,986.06 3,440,793,769.61
rendering of services
Receipts of tax refunds 259,141,181.69 233,879,202.17
Other cash receipts relating to operating
2,714,150,577.01 196,263,149.03
activities
Sub-total of cash inflows from operating
9,189,509,744.76 3,870,936,120.81
activities
Cash payments for goods acquired and services
1,525,602,508.68 1,457,795,777.54
received
Cash payments to and on behalf of employees 2,325,677,915.54 2,125,981,304.27
Payments of various types of taxes 630,778,577.74 860,524,128.27
Other cash payments relating to operating
1,746,345,958.85 3,788,161,986.18
activities
Sub-total of cash outflows from operating
6,228,404,960.81 8,232,463,196.26
activities
Net Cash flows from Operating Activities 2,961,104,783.95 (4,361,527,075.45)
II. Cash flows from Investing Activities:
Cash receipts from recovery of investments 33,859,315.33 2,800,000.00
Cash receipts from investment income 3,500,000.00
Net cash receipts from disposals of fixed assets,
5,803,938.63 1,190,957.34
intangible assets and other long-term assets
Other cash receipts relating to investing
2,543,566,042.49
activities
Sub-total of cash inflows from investing
43,163,253.96 2,547,556,999.83
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 127,412,549.60 147,896,373.36
assets
Cash payments to acquire investments 70,000,000.00
Net cash paid to acquire subsidiaries and other
623,491,250.00
business units
Sub-total of cash outflows from investing
197,412,549.60 771,387,623.36
activities
Net Cash flows from Investing Activities (154,249,295.64) 1,776,169,376.47
III. Cash flows from Financing Activities
Cash receipts from capital contributions 4,714,600.00
Cash receipts from borrowings 1,214,164,938.24
Sub-total of cash inflows from financing
1,218,879,538.24
activities
23
Hikvision 2021 Q1 Report
Item 2021 Q1 2020 Q1
Cash repayments of borrowings 400,000,000.00 8,863,858.01
Cash payments for distribution of dividends or
7,542,458.71 13,231,510.58
profits or settlement of interest expenses
Other cash payments relating to financing
7,820,293.00
activities
Sub-total of cash outflows from financing
415,362,751.71 22,095,368.59
activities
Net Cash flows from Financing Activities (415,362,751.71) 1,196,784,169.65
IV. Effect of foreign exchange rate changes on
4,495,623.40 85,110,683.25
Cash and Cash Equivalents
V. Net increase(decrease) in cash and cash
2,395,988,360.00 (1,303,462,846.08)
equivalents
Add: Beginning balance of cash and cash
23,264,693,578.70 16,656,028,410.72
equivalents
VI. Closing Balance of Cash and Cash Equivalents 25,660,681,938.70 15,352,565,564.64
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) Initial Implementation of the new lease standard since the fiscal year of 2021, corresponding adjustments
to the relevant items in the financial statements at the beginning of the year
Whether to adjust the balance sheet account at the beginning of the year
√Applicable □Inapplicable
(1.1) Consolidated Balance Sheet
Unit: RMB
Item December 31st 2020 January 1st 2021 Adjustments
Current Assets:
Cash and bank balances 35,459,729,108.27 35,459,729,108.27 0.00
Held-for-trading financial assets 22,679,846.77 22,679,846.77 0.00
Notes receivable 1,303,252,705.19 1,303,252,705.19 0.00
Accounts receivable 21,979,380,716.86 21,979,380,716.86 0.00
Receivables for financing 1,959,601,195.25 1,959,601,195.25 0.00
Prepayments 296,334,689.86 293,382,571.11 -2,952,118.75
Other receivables 519,143,350.82 519,026,062.82 -117,288.00
Inventories 11,477,906,040.70 11,477,906,040.70 0.00
Contract assets 245,754,510.98 245,754,510.98 0.00
Non-current assets due within one year 1,001,208,813.83 1,001,208,813.83 0.00
Other current assets 497,914,506.64 497,437,052.76 -477,453.88
Total Current Assets 74,762,905,485.17 74,759,358,624.54 -3,546,860.63
Non-current Assets:
24
Hikvision 2021 Q1 Report
Item December 31st 2020 January 1st 2021 Adjustments
Long-term receivables 2,105,570,004.53 2,105,570,004.53 0.00
Long-term equity investment 864,026,710.23 864,026,710.23 0.00
Other non-current financial assets 491,939,067.27 491,939,067.27 0.00
Fixed assets 5,876,007,536.60 5,830,677,198.85 -45,330,337.75
Construction in progress 1,425,235,193.72 1,425,235,193.72 0.00
Right-of-use assets 392,720,632.07 392,720,632.07
Intangible assets 1,251,317,923.69 1,251,317,923.69 0.00
Goodwill 274,203,665.20 274,203,665.20 0.00
Long-term deferred expenses 108,584,686.85 108,584,686.85 0.00
Deferred tax assets 820,380,954.86 820,380,954.86 0.00
Other non-current assets 721,511,156.08 721,511,156.08 0.00
Total Non-current Assets 13,938,776,899.03 14,286,167,193.35 347,390,294.32
Total Assets 88,701,682,384.20 89,045,525,817.89 343,843,433.69
Current Liabilities:
Short-term borrowings 3,999,246,634.59 3,999,246,634.59 0.00
Held-for-trading financial liabilities 7,405,771.15 7,405,771.15 0.00
Notes payable 1,036,920,229.85 1,036,920,229.85 0.00
Accounts payable 13,593,884,790.19 13,593,884,790.19 0.00
Contract liabilities 2,161,166,671.26 2,161,166,671.26 0.00
Payroll payable 2,877,786,430.71 2,877,786,430.71 0.00
Taxes payable 1,770,057,908.62 1,770,057,908.62 0.00
Other payables 1,525,053,355.95 1,525,053,355.95 0.00
Including : Interests payable
Dividends payable 205,898,523.84 205,898,523.84 0.00
Non-current liabilities due within one year 3,507,680,339.78 3,644,521,493.05 136,841,153.27
Other current liabilities 745,711,579.57 745,711,579.57 0.00
Total Current Liabilities 31,224,913,711.67 31,361,754,864.94 136,841,153.27
Non-current Liabilities:
Long-term borrowings 1,961,167,761.30 1,961,167,761.30 0.00
Lease liabilities 229,593,779.26 229,593,779.26
Long-term payables 39,595,459.35 17,003,960.51 -22,591,498.84
Provisions 151,443,871.02 151,443,871.02 0.00
Deferred income 190,878,987.69 190,878,987.69 0.00
Deferred tax liabilities 92,979,823.89 92,979,823.89 0.00
Other non-current liabilities 560,959,368.74 560,959,368.74 0.00
25
Hikvision 2021 Q1 Report
Item December 31st 2020 January 1st 2021 Adjustments
Total non-current liabilities 2,997,025,271.99 3,204,027,552.41 207,002,280.42
Total liabilities 34,221,938,983.66 34,565,782,417.35 343,843,433.69
Owners’ Equity
Share capital 9,343,417,190.00 9,343,417,190.00 0.00
Capital reserves 5,178,777,462.09 5,178,777,462.09 0.00
Less: Treasury shares 1,121,918,737.47 1,121,918,737.47 0.00
Other comprehensive income -84,993,926.94 -84,993,926.94 0.00
Surplus reserves 4,672,505,348.00 4,672,505,348.00 0.00
Retained earnings 35,806,523,826.37 35,806,523,826.37 0.00
Total owners' equity attributable to
53,794,311,162.05 53,794,311,162.05 0.00
owner of the Company
Minority equity 685,432,238.49 685,432,238.49 0.00
Total owners' equity 54,479,743,400.54 54,479,743,400.54 0.00
Total liabilities and owners' equity 88,701,682,384.20 89,045,525,817.89 343,843,433.69
(1.2) Balance Sheet of the Parent Company
Unit: RMB
Item December 31st 2020 January 1st 2021 Adjustments
Current Assets:
Cash and bank balances 23,476,606,330.08 23,476,606,330.08 0.00
Notes receivable 107,411,912.35 107,411,912.35 0.00
Accounts receivable 24,193,392,179.36 24,193,392,179.36 0.00
Receivables for financing 12,216,215.65 12,216,215.65 0.00
Prepayments 62,946,087.75 62,946,087.75 0.00
Other receivables 726,703,133.65 726,703,133.65 0.00
Inventories 204,216,250.73 204,216,250.73 0.00
Contract assets 3,311,250.08 3,311,250.08 0.00
Non-current assets due within one year 71,208,685.76 71,208,685.76 0.00
Other current assets 10,110,869.86 10,110,869.86 0.00
Total Current Assets 48,868,122,915.27 48,868,122,915.27 0.00
Non-current Assets:
Long-term receivables 47,762,348.01 47,762,348.01 0.00
Long-term equity investment 6,727,373,453.97 6,727,373,453.97 0.00
Other non-current financial assets 489,054,847.27 489,054,847.27 0.00
Fixed assets 2,762,700,997.83 2,762,700,997.83 0.00
Construction in progress 388,903,828.81 388,903,828.81 0.00
Right-of-use assets 66,446,154.01 66,446,154.01
26
Hikvision 2021 Q1 Report
Item December 31st 2020 January 1st 2021 Adjustments
Intangible assets 158,917,438.86 158,917,438.86 0.00
Long-term deferred expenses 43,264,691.73 43,264,691.73 0.00
Deferred tax assets 110,066,596.99 110,066,596.99 0.00
Other non-current assets 2,740,576.47 2,740,576.47 0.00
Total Non-current Assets 10,730,784,779.94 10,797,230,933.95 66,446,154.01
Total Assets 59,598,907,695.21 59,665,353,849.22 66,446,154.01
Current Liabilities:
Short-term borrowings 1,431,233,375.00 1,431,233,375.00 0.00
Accounts payable 540,664,512.60 540,664,512.60 0.00
Contract liabilities 240,629,015.92 240,629,015.92 0.00
Payroll payable 1,618,357,135.99 1,618,357,135.99 0.00
Taxes payable 1,539,095,196.97 1,539,095,196.97 0.00
Other payables 659,214,959.62 659,214,959.62 0.00
Including : Interests payable
Dividends payable 205,898,523.84 205,898,523.84 0.00
Non-current liabilities due within one year 3,219,794,958.37 3,249,794,123.42 29,999,165.05
Other current liabilities 589,167,743.26 589,167,743.26 0.00
Total Current Liabilities 9,838,156,897.73 9,868,156,062.78 29,999,165.05
Non-current Liabilities:
Lease liabilities 36,446,988.96 36,446,988.96
Provisions 85,230,299.84 85,230,299.84 0.00
Deferred income 122,455,935.44 122,455,935.44 0.00
Other non-current liabilities 560,959,368.74 560,959,368.74 0.00
Total non-current liabilities 768,645,604.02 805,092,592.98 36,446,988.96
Total liabilities 10,606,802,501.75 10,673,248,655.76 66,446,154.01
Owners’ Equity
Share capital 9,343,417,190.00 9,343,417,190.00
Capital reserves 4,770,210,334.16 4,770,210,334.16 0.00
Less: Treasury shares 1,121,918,737.47 1,121,918,737.47 0.00
Surplus reserves 4,672,505,348.00 4,672,505,348.00 0.00
Retained earnings 31,327,891,058.77 31,327,891,058.77 0.00
Total owners' equity 48,992,105,193.46 48,992,105,193.46 0.00
Total liabilities and owners' equity 59,598,907,695.21 59,665,353,849.22 66,446,154.01
27
Hikvision 2021 Q1 Report
(2) Description of retrospective adjustment to prior comparative data for the initial implementation of the
new lease standard since the fiscal year of 2021.
√Applicable □Inapplicable
The Group has adopted the Accounting Standard for Business Enterprises No. 21 – Leases amended by the Ministry of Finance
in 2018 (the “New Lease Standard”, and the standard for leases before amendment, the “Original Lease Standard”) with effect from 1
January 2021 (“Date of Initial Application”). The New Lease Standard for Leases improves the definition of leases, adds contents
including the identification, separation and portfolio of leases; abolishes the classification of operating leases and financial leases for
lessees, and requires recognition of right-of-use assets and lease liabilities for all leases (except for short-term leases and leases of low
value assets) upon lease commencement, as well as recognition of depreciation and interest expenses respectively; improves the
subsequent measurement of leases for lessees, adds accounting treatment methods in the event of option reassessment and lease
adjustment, and adds relevant disclosure requirements. In addition, it enriches the disclosure contents for lessors. For contracts that
existed before the Date of Initial Application, the Group opted not to reassess whether a contract is, or contains, a lease at the date of
initial application. As lessee, the Group adjusted the retained earnings at the beginning of the fiscal year of first-time adoption and the
amounts of other related items in the financial statements based on the cumulative amounts affected by first-time adoption of the New
Lease Standard, and did not adjust the information for comparative periods.
The effects of adoption of the New Lease Standard on balance sheet items on January 1 st 2021 are set out as follows:
Consolidated Balance Sheet
Unit: RMB
Item Under Original Lease Standard Reclassification (Note) Under New Lease Standard
Current Assets：
Prepayments 296,334,689.86 -2,952,118.75 293,382,571.11
Other receivables 519,143,350.82 -117,288.00 519,026,062.82
Other current assets 497,914,506.64 -477,453.88 497,437,052.76
Non-current assets:
Fixed assets 5,876,007,536.60 -45,330,337.75 5,830,677,198.85
Right-of-use assets 392,720,632.07 392,720,632.07
Current Liabilities:
Non-current liabilities due
3,507,680,339.78 136,841,153.27 3,644,521,493.05
within one year
Non-current Liabilities:
Long-term payables 39,595,459.35 -22,591,498.84 17,003,960.51
Lease liabilities 229,593,779.26 229,593,779.26
Note: The Group measures the right-of-use assets and lease liabilities respectively for the financial leases before the Date of Initial
Application in accordance with the original book value of the assets held under financial leases and the payables for financial leases.
For operating leases before the Date of Initial Application, the Group measures the lease liabilities at the present value discounted by
the incremental borrowing rate on the Date of Initial Application based on the remaining lease payments, and the prepaid rent is adjusted
to measure the right-of-use assets according to an amount equal to the lease liabilities of each lease. The lease liabilities (including the
liabilities due within one year) and the right-of-use assets recognized by the Group on January 1st 2021 amounted to RMB
385,056,810.50 and RMB 392,720,632.07, respectively. For operating leases before the date of first-time adoption, the Group measures
the lease liabilities at the present value discounted by the incremental borrowing rate on the Date of Initial Application which ranges
between 1.14% and 9.50%.
28
Hikvision 2021 Q1 Report
Balance Sheet of the Parent Company
Unit: RMB
Item Under Original Lease Standard Reclassification (Note) Under New Lease Standard
Non-current assets:
Right-of-use assets 66,446,154.01 66,446,154.01
Current Liabilities:
Non-current liabilities due 3,219,794,958.37 29,999,165.05 3,249,794,123.42
within one year
Non-current Liabilities:
Lease liabilities 36,446,988.96 36,446,988.96
Note: For operating leases before the Date of Initial Application, the Company measures the lease liabilities at the present value
discounted by the incremental borrowing rate on the Date of Initial Application based on the remaining lease payments, and the right-
of-use assets are measured according to an amount equal to the lease liabilities of each lease. The lease liabilities (including the
liabilities due within one year) and the right-of-use assets recognized by the Company on January 1st 2021 amounted to RMB
66,446,154.01 and RMB 66,446,154.01, respectively. For operating leases before the Date of Initial Application, the Company
measures the lease liabilities at the present value discounted by the incremental borrowing rate on the Date of Initial Application, which
is 2.84%.
4.3 Audit Report
Whether audit has been performed on this 2021 1st Quarter Report
□ Yes √ No
The Company’s 2021 1st Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
April 17th 2021
29
