Hikvision 2023 Q3 Report
Stock Exchange Code：002415 Abbreviation of Securities：Hikvision
No：2023-036
Hangzhou Hikvision Digital Technology Co., Ltd.
2023 3rd Quarter Report
The Company and all members of the Board of Directors guarantee that the information
disclosed is true, accurate and complete without false records, misleading statements
or material omissions.
Important Content Notes:
1. The Board of Directors, Board of Supervisors, directors, supervisors and senior
management of Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter
referred to as the "Company") hereby guarantee that the information presented in
this report shall be together be wholly liable for the truthfulness, accuracy and
completeness of its contents and free of any false records, misleading statements or
material omissions, and will undertake individual and joint legal liabilities.
2. Chen Zongnian, the Company's legal representative, Jin Yan, the person in charge
of the accounting work, and Zhan Junhua, the person in charge of accounting
institution (accounting supervisor) hereby declare and warrant that the financial
information in this report is authentic, accurate, and complete.
3. Whether the 3rd quarter report has been audited
□Yes√ No
Hikvision 2023 Q3 Report
I. Key Financial Data
1. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of the previous accounting data
√ Yes □ No
Reasons for retroactive adjustment or restatement of the previous accounting data
√ Changes in accounting policies
Unit：RMB
YoY Change(%)
YoY Change(%)
between 2023
2022 Q3 between 2023 Q3 2022 Q1~Q3
Q1~Q3 and 2022
2023 Q3 and 2022 Q3 2023 Q1~Q3
Q1~Q3
Before the After the After the
Before the adjustment After the adjustment After the adjustment
adjustment adjustment adjustment
Revenue (RMB) 23,704,377,795.74 22,464,020,301.15 22,464,020,301.15 5.52% 61,275,164,193.63 59,721,536,891.77 59,721,536,891.77 2.60%
Net profit attributable to
shareholders of the 3,513,299,100.33 3,081,001,112.19 3,081,936,227.11 14.00% 8,851,167,117.21 8,840,255,887.45 8,840,604,273.67 0.12%
Company (RMB)
Net profit attributable to
shareholders of the
Company excluding non- 3,425,870,315.02 2,879,656,597.51 2,880,591,712.43 18.93% 8,461,998,947.98 8,525,515,615.02 8,525,864,001.24 -0.75%
recurring gains and losses
(RMB)
Net cash flows from
— — — — 5,913,853,480.95 160,117,141.04 160,117,141.04 3593.45%
operating activities (RMB)
Basic earnings per share
0.381 0.331 0.331 15.11% 0.949 0.938 0.938 1.17%
(RMB/share)
Diluted earnings per share 0.380 0.331 0.331 14.80% 0.949 0.938 0.938 1.17%
Hikvision 2023 Q3 Report
(RMB/share)
Weighted average ROE 5.05% 4.84% 4.84% 0.21% 12.59% 13.64% 13.64% -1.05%
Change(%) between December 31, 2022
On December 31, 2022
On September 30, 2023 and September 30, 2023
Before the adjustment After the adjustment After the adjustment
Total assets (RMB) 127,457,393,562.08 119,233,282,761.47 119,234,602,968.11 6.90%
Net assets attributable to
shareholders of the 71,512,727,362.29 68,389,154,548.76 68,388,671,139.78 4.57%
Company (RMB)
Reasons for changes in accounting policies and situations of correction of accounting errors
Note:
The Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for Business Enterprises (the "Interpretation No. 16") on November 30, 2022. The
scope of the initial recognition exemption for deferred income tax in the Accounting Standards for Business Enterprises No. 18-Income Tax was revised. Making it
clear that the provisions on exemption of initial recognition of deferred income tax liabilities and deferred income tax assets in Accounting Standards for Business
Enterprises No. 18-Income Taxes do not apply to single transactions that are not business combinations and do not affect either accounting profit or taxable income (or
deductible losses) at the time of the transactions, nor do such provisions apply to single transactions whose assets and liabilities initially recognized result in equal
taxable temporary differences and deductible temporary differences. This provision is effective as of January 1, 2023 and earlier application is permitted. The Group
implemented this requirement from January 1, 2023, and accounted for individual transactions between the beginning of the earliest period in which the financial
statements are presented and December 31, 2022 using the retrospective adjustment method, and restated the financial statements for the comparative period.
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) 9,330,600,931
Fully diluted earnings per share calculated using the latest share capital:
Fully diluted earnings per share (RMB/share) calculated with the latest share capital 0.949
Hikvision 2023 Q3 Report
2. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item Amount occurred in the current January 1, 2023–
reporting period (2023 Q3) September 30, 2023
Profit or loss from disposal of non-current assets (including the
-9,430,072.63 -12,656,820.35
write-off for the impairment provision of assets)
Government subsidies included in the current profit and loss
(except for government subsidies that are closely related to the
Company's regular business operations, comply with national 136,101,654.70 381,206,012.59
policies, and those that are continuously enjoyed in accordance
with a certain standard fixed or quantitative basis)
Profits and losses attributed to change in fair value for held-for-
trading financial assets and held-for-trading financial liabilities;
and investment income from disposal of held for-trading financial
542,193.75 -16,295,272.07
assets, held-for-trading financial liabilities, and available-for-sale
financial assets, excluding the effective hedging business related to
the regular business operation of the Company.
The profit and loss of business combination under different control
- 116,433,610.45
realized in stages by multiple transactions
Other non-operating income and expenditures except the items
14,083,115.40 64,577,632.01
mentioned above
Less: Impact of income tax 27,232,345.35 56,910,041.17
Impact of the minority interests (after tax) 26,635,760.56 87,186,952.23
Total 87,428,785.31 389,168,169.23
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ Inapplicable
The Company does not have other specific conditions of profit and loss items that meet the definition of non-
recurring profit and loss.
Explanations on classifying any non-recurring gain/loss item mentioned in the
as recurring gain/loss item.
□ Applicable √ Inapplicable
The Company does not classify any non-recurring gain/loss item mentioned in the as recurring gain/loss item.
Hikvision 2023 Q3 Report
3. Information and Explanation about Variations in Key Accounting Data and Financial Indicators
√Applicable □Inapplicable
3.1 Explanation for variations in balance sheet items
Balance on Balance on
Change
Item September 30, 2023 December 31, 2022 Note of Changes
(%)
(RMB) (RMB)
Held-for-trading
23,469,021.18 12,807,438.36 83.25% Due to fluctuation in foreign exchange
financial assets
rate and decrease in the scale of foreign
Held-for-trading
4,181,387.92 68,299,685.57 -93.88% exchange hedging business
financial liabilities
Due to increase in prepayment for lock in
Prepayments 1,176,737,421.25 534,780,120.52 120.04%
part of raw material
Increase in tax refunds receivable and
Other receivables 807,450,237.15 516,503,485.58 56.33%
etc.
Part of the construction works that meet
Contract assets 1,154,739,956.62 2,118,223,370.98 -45.49% the conditions for collection are
transferred to accounts receivable
Goodwill arising from the acquisition of
Goodwill 397,053,077.36 217,386,531.28 82.65% Wuhu Sensortech Intelligent Technology
Ltd.
Notes payable 635,917,745.45 1,207,756,963.94 -47.35% Decrease in notes settlement
Increase in quarterly corporate income
Taxes payable 1,844,339,050.35 1,234,032,138.37 49.46%
tax payable
Non-current liabilities
5,033,280,741.55 868,197,272.46 479.74% Increase in demands for long-term
due within one year
working capital
Long-term borrowings 9,251,855,308.30 7,522,315,341.60 22.99%
Other current liabilities 1,451,039,846.11 923,721,593.78 57.09%
The repurchase of public outstanding
Other non-current
1,669,822,285.01 2,831,108,087.59 -41.02% shares and the completion of cancellation
liabilities
of the third batch of 2018 Restricted
Capital reserves 8,312,925,536.12 10,141,153,435.32 -18.03%
Stock Plan
Treasury shares 2,737,987,226.55 5,316,033,650.24 -48.50%
Increase in differences of foreign
Other comprehensive
12,228,192.69 -42,587,158.81 128.71% currency statement translation due to
income
fluctuations of exchange rate
Hikvision 2023 Q3 Report
3.2 Explanation for variations in income statement items
2023 Q1 ~ 2023 Q3 2022 Q1 ~ 2022 Q3 YoY Change
Items Note of changes
(RMB) (RMB) (%)
Business taxes and Increase in additional taxes caused by
526,331,975.20 404,250,604.06 30.20%
surcharges increase in the VAT credit
Financial expenses -438,125,633.70 -937,194,664.41 53.25% Decrease in foreign exchange gains
Decrease in investment income in
joint ventures and associates and
Investment income 39,763,080.90 166,250,594.06 -76.08%
decrease in trading gains from foreign
exchange hedging business
Increase in gains from changes in fair
Gains from changes
83,987,239.15 -69,558,120.87 220.74% value in foreign exchange hedging
in fair value
business
3.3 Explanation for variations in cash flow statement items
2023 Q1 ~ 2023 Q3 2022 Q1 ~ 2022 Q3 YoY Change
Item Note of changes
(RMB) (RMB) (%)
Net cash flows from
5,913,853,480.95 160,117,141.04 3593.45% Increase in inventory purchases
operating activities
Net cash flows from Increased in investment on the
-3,439,635,132.46 -2,623,081,074.94 -31.13%
investing activities construction of industrial parks
Hikvision 2023 Q3 Report
II. Shareholder Information
1. Number of Common Shareholders and Preferred Shareholders with Resumed Voting Rights and
Information about Top 10 Shareholders
Unit: Share
Total number of preferred shareholders (if any)
Total number of common shareholders at the
354,629 whose voting rights have been recovered at the end 0
end of the reporting period
of the reporting period (if any)
Particulars about top 10 shareholders
The number Pledged, marked or
Share-
Total shares of common frozen
Nature of holding
Name of shareholder held at the shares held
shareholder percentage
period-end with trading Status Amount
(%)
restrictions
Domestic State-
China Electronics Technology HIK Group Co.,
owned 36.48% 3,403,879,509 - Pledged 50,000,000
Ltd.
corporation
Overseas
Gong Hongjia 10.32% 962,504,814 - Pledged 153,026,700
individual
Domestic
Hangzhou Weixun Equity Investment non-state-
4.83% 450,795,176 - Pledged 18,900,000
Partnership (Limited Partnership) owned
corporation
Shanghai Perseverance Asset Management
Partnership (Limited Partnership) -
Other 4.66% 435,000,000 - - -
Perseverance Adjacent Mountain 1 Yuanwang
Fund
Domestic State-
CETC Investment Holdings Co., Ltd. owned 2.49% 232,307,903 - - -
corporation
Domestic
Hangzhou Pukang Equity Investment non-state-
1.96% 182,510,174 - Pledged 48,300,000
Partnership (Limited Partnership) owned
corporation
Domestic State-
The 52nd Research Institute at China Electronics
owned 1.94% 180,775,044 - - -
Technology Group Co. Ltd.
corporation
Domestic
Hu Yangzhong 1.67% 155,636,477 116,727,358 - -
Individual
Domestic State-
Central Huijin Investment Co., Ltd. owned 0.69% 64,700,691 - - -
corporation
Hong Kong Securities Clearing Company Overseas
0.50% 47,002,201 - - -
Ltd.(HKSCC) corporation
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
Number of common shares Type of shares
Name of shareholder without trading restrictions
held at the period-end Type Number
China Electronics Technology HIK Group Co.,
3,403,879,509 RMB common shares 3,403,879,509
Ltd.
Gong Hongjia 962,504,814 RMB common shares 962,504,814
Hikvision 2023 Q3 Report
Hangzhou Weixun Equity Investment
450,795,176 RMB common shares 450,795,176
Partnership (Limited Partnership)
Shanghai Perseverance Asset Management
Partnership (Limited Partnership) -
435,000,000 RMB common shares 435,000,000
Perseverance Adjacent Mountain 1 Yuanwang
Fund
CETC Investment Holdings Co., Ltd 232,307,903 RMB common shares 232,307,903
Hangzhou Pukang Equity Investment
182,510,174 RMB common shares 182,510,174
Partnership (Limited Partnership)
The 52nd Research Institute at China Electronics
180,775,044 RMB common shares 180,775,044
Technology Group Co. Ltd
Central Huijin Investment Co., Ltd. 64,700,691 RMB common shares 64,700,691
Hong Kong Securities Clearing Company
47,002,201 RMB common shares 47,002,201
Ltd.(HKSCC)
Hu Yangzhong 38,909,119 RMB common shares 38,909,119
China Electronics Technology HIK Group Co., Ltd., CETC Investment Holdings
Co., Ltd. and The 52nd Research Institute at China Electronics Technology Group
Co., Ltd. are all subject to control of China Electronics Technology Group Co. Ltd.
Ms. Chen Chunmei, limited partner of Hangzhou Pukang Equity Investment
Partnership (Limited Partnership), is the spouse of Mr. Gong Hongjia, overseas
Explanation on associated relationship and individual shareholder of the Company. Hu Yangzhong, domestic individual, is
concerted actions among above shareholders holding shares in both Hangzhou Weixun Equity Investment Partnership (Limited
Partnership) and Hangzhou Pukang Equity Investment Partnership (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 Administration of the Takeover of Listed Companies
Procedures.
2. Total Number of Preferred Shareholders and Information about Top 10 Preferred Shareholders
□ Applicable √ Inapplicable
Hikvision 2023 Q3 Report
III. Significant Events
√Applicable □Inapplicable
1. During the reporting period, the Company completed the third repurchase and cancellation of the 2018 Restricted
Stock Plan.
On April 13, 2023 and May 9, 2023, the 17th meeting of the 5th session of the Board of Directors, the 15th meeting
of the 5th session of the Board of Supervisors and 2022 Annual General Meeting reviewed and approved the
Proposal of Unlocking Conditions for the Third Unlocking Period of the 2018 Restricted Plan were not Meet and
the Proposal of the Repurchase of Restricted Shares that have been Granted but not yet Unlocked. As the Company
performance did not meet the unlocking conditions for the third unlocking period of the 2018 Restricted Stock Plan
(Revised Draft), 33,331,858 restricted shares granted but not unlocked in the current period for all grantees of the
2018 Restricted Stock Plan were repurchased and cancelled. And the Company had completed the cancellation
procedures for the above shares at the Shenzhen branch of China Securities Depository and Clearing Ltd. on July 5,
2023.
For details, please refer to The Proposal of Unlocking Conditions for the Third Unlocking Period of the 2018
Restricted Plan were not Meet and The Proposal of the Repurchase of Restricted Shares that have been Granted but
not yet Unlocked (2023-021) published by the Company on www.cninfo.com.cn on April 15, 2023 and The Proposal
of the Completed Cancellation of the Restricted Shares that have been Granted but not yet Unlocked for the Third
Uncloking Period of the 2018 Restricted Plan (2023-028) published by the Company on www.cninfo.com.cn on
July 7, 2023.
As of the end of the current reporting period, the Company has a total of 97,402,605 granted but unvested shares,
accounting for 1.04% of the Company's total share capital at the end of the reporting period.
2. Matters relating to steady promotion of the spin-off of HikRobot to be listed on the SZSE ChiNext Market
On March 7, 2023, Hangzhou Hikrobot Co., Ltd. (hereinafter referred to as "HikRobot") received Notice on
Accepting the Application Documents for the Initial Public Offering of Shares and Listing on the SZSE ChiNext
Market of Hangzhou Hikrobot Co., Ltd. (SZSE Listing Review [2023] No. 252) issued by Shenzhen Stock Exchange,
Hikvision 2023 Q3 Report
and SZSE considered that application documents were completed and decided to accept. For details, please refer to
the Announcement on the Application for the Initial Public Offering of Shares and Listing on the SZSE ChiNext
Market of Hangzhou Hikrobot Co., Ltd., a Subsidiary of the Company, is Accepted by the SZSE (Announcement
No.: 2023-008) published by the Company on cninfo website (www.cninfo.com.cn) on March 8, 2023. Shenzhen
Stock Exchange issed the Inquiry Letter on the Review of Application Documents for the Initial Public Share
Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. (Inquiry Letter (2023)
No. 010121) on March 30, 2023, and HikRobot has submitted the Reply to the Inquiry Letter on the Review of
Application Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext Market of
Hangzhou Hikrobot Co., Ltd. on May 17, 2023. Shenzhen Stock Exchange issed the Second Inquiry Letter on the
Review of Application Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext
Market of Hangzhou Hikrobot Co., Ltd. (Inquiry Letter (2023) No. 010218) on June 30, 2023, and HikRobot has
submitted the Reply to the Second Inquiry Letter on the Review of Application Documents for the Initial Public
Share Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. on July 27, 2023.
3. The Company's controlling shareholder disclosed its plan to increase its shareholding in the Company
The Company received a notice from China Electronics Technology HIK Group Co., Ltd. (hereinafter referred to
as "CETHIK"), the Company's controlling shareholder, on October 16, 2023 that CETHIK intends to increase its
shareholdings of the Company's shares through the trading system of the Shenzhen Stock Exchange through
centralized bidding, block trading or other trading methods permitted by laws and regulations within 6 months from
October 17, 2023. The total amount of the increased shareholdings will not be less than RMB200 million and not
more than RMB300 million, and the proposed price of increased shareholdings shall not be higher than RMB40 per
share (inclusive). The plan of increase shareholding will be implemented at the opportunity with the consideration
of the fluctuation of Hikvision's stock price and the overall trend of the capital market. The Company will continue
to pay attention to the relevant situation of this plan of increase shareholding in accordance with the Rules for the
Listing of Stocks on the Shenzhen Stock Exchange and other relevant regulations, and fulfill its information
disclosure obligations in a timely manner. For details, please refer to the Announcement on the Company's
Controlling Shareholders' Plan to Increase the Company's Shareholding (2023-033) published by the Company on
www.cninfo.com.cn on October 17, 2023.
Hikvision 2023 Q3 Report
IV. Quarterly Financial Reports
1. Financial Statements
1.1 Consolidated balance sheet
Unit: RMB
Item September 30, 2023 December 31, 2022
Current Assets:
Cash and bank balances 39,977,862,822.26 40,011,863,999.94
Held-for-trading financial assets 23,469,021.18 12,807,438.36
Notes receivable 2,121,463,259.43 2,519,988,159.23
Accounts receivable 35,040,102,719.68 29,906,294,410.40
Receivables for financing 1,336,187,223.27 1,484,218,258.74
Prepayments 1,176,737,421.25 534,780,120.52
Other receivables 807,450,237.15 516,503,485.58
Inventories 19,363,488,485.66 18,998,222,978.81
Contract assets 1,154,739,956.62 2,118,223,370.98
Non-current assets due within one year 1,230,559,088.32 996,902,343.27
Other current assets 931,026,501.20 806,832,941.58
Total Current Assets 103,163,086,736.02 97,906,637,507.41
Non-current Assets:
Long-term receivables 606,725,980.62 540,647,965.30
Long-term equity investment 1,126,759,863.53 1,252,033,513.41
Other non-current financial assets 476,162,910.62 423,893,239.94
Fixed assets 10,433,152,020.09 8,539,842,630.68
Construction in progress 4,377,080,137.56 3,770,803,300.80
Right-of-use assets 532,980,822.86 574,478,326.31
Intangible assets 1,586,649,264.40 1,544,933,502.19
Goodwill 397,053,077.36 217,386,531.28
Long-term deferred expenses 181,447,230.64 177,277,742.41
Deferred tax assets 1,693,530,982.33 1,470,966,695.68
Other non-current assets 2,882,764,536.05 2,815,702,012.70
Total Non-current Assets 24,294,306,826.06 21,327,965,460.70
Total Assets 127,457,393,562.08 119,234,602,968.11
Current Liabilities:
Short-term borrowings 2,921,132,464.29 3,343,071,972.89
Held-for-trading financial liabilities 4,181,387.92 68,299,685.57
Notes payable 635,917,745.45 1,207,756,963.94
Accounts payable 15,276,807,817.90 16,025,563,802.99
Hikvision 2023 Q3 Report
Item September 30, 2023 December 31, 2022
Contract liabilities 3,094,814,814.71 2,644,496,508.36
Payroll payable 4,382,570,861.70 4,837,302,455.95
Taxes payable 1,844,339,050.35 1,234,032,138.37
Other payables 3,601,311,665.99 3,203,308,686.31
Non-current liabilities due within one year 5,033,280,741.55 868,197,272.46
Other current liabilities 1,451,039,846.11 923,721,593.78
Total Current Liabilities 38,245,396,395.97 34,355,751,080.62
Non-current Liabilities:
Long-term borrowings 9,251,855,308.30 7,522,315,341.60
Lease liabilities 278,314,201.74 277,255,924.83
Long-term payables 5,967,794.23 7,569,934.67
Provisions 216,105,842.16 219,365,227.62
Deferred income 877,399,488.02 933,260,426.12
Deferred tax liabilities 121,685,829.78 117,340,377.75
Other non-current liabilities 1,669,822,285.01 2,831,108,087.59
Total Non-current liabilities 12,421,150,749.24 11,908,215,320.18
Total Liabilities 50,666,547,145.21 46,263,966,400.80
Owners’ Equity
Share capital 9,330,600,931.00 9,430,920,624.00
Capital reserves 8,312,925,536.12 10,141,153,435.32
Less: Treasury shares 2,737,987,226.55 5,316,033,650.24
Other comprehensive income 12,228,192.69 (42,587,158.81)
Surplus reserves 4,715,460,312.00 4,715,460,312.00
Retained earnings 51,879,499,617.03 49,459,757,577.51
Total owners' equity attributable to owner
71,512,727,362.29 68,388,671,139.78
of the Company
Minority equity 5,278,119,054.58 4,581,965,427.53
Total Owners' Equity 76,790,846,416.87 72,970,636,567.31
Total Liabilities and Owners' Equity 127,457,393,562.08 119,234,602,968.11
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
Hikvision 2023 Q3 Report
1.2 Consolidated income statement from the beginning of the year to the end of the reporting period
Unit: RMB
Item 2023 Q1~Q3 2022 Q1~Q3
I. Revenue 61,275,164,193.63 59,721,536,891.77
II．Total Operating Costs 51,800,457,295.98 50,291,034,361.47
Less: Cost of sales and services 33,792,365,273.38 34,428,422,516.36
Business taxes and surcharges 526,331,975.20 404,250,604.06
Selling expenses 7,702,706,183.02 7,105,121,639.99
Administrative expenses 2,044,153,100.82 1,934,338,028.12
Research and development (R&D) expenses 8,173,026,397.26 7,356,096,237.35
Financial expenses (438,125,633.70) (937,194,664.41)
Including：Interest expenses 327,860,614.56 221,677,391.74
Interest income 705,753,970.45 654,737,093.34
Add: Other income 1,695,250,235.38 1,648,453,505.94
Investment income (loss"-") 39,763,080.90 166,250,594.06
Including: Investment gains (losses) in associated
(42,311,858.66) 20,851,979.61
enterprise and joint-venture enterprise
Gains (loss"-") from changes in fair values 83,987,239.15 (69,558,120.87)
Credit impairment losses ("-") (541,104,768.19) (478,935,914.07)
Impairment losses ("-") of assets (269,035,009.89) (238,371,890.55)
Asset disposal income (loss"-") (12,073,109.46) (10,541,208.42)
III. Operating Profit (loss"-") 10,471,494,565.54 10,447,799,496.39
Add: Non-operating income 76,153,790.31 75,058,667.75
Less: Non-operating expenses 13,606,755.97 11,756,007.04
IV. Total Profit (loss"-") 10,534,041,599.88 10,511,102,157.10
Less: Income tax expenses 1,035,810,349.56 1,137,253,259.27
V. Net Profit (loss"-") 9,498,231,250.32 9,373,848,897.83
5.1 Classification by operation continuity
(a) Net profit (loss) on continuous operation 9,498,231,250.32 9,373,848,897.83
(b) Net profit (loss) on terminated operation - -
5.2 Classification by attribution of ownership
(a) Net profit attributable to owners of parent
8,851,167,117.21 8,840,604,273.67
company
(b) Profit or loss attributable to minority 647,064,133.11 533,244,624.16
shareholders
VI. Other Comprehensive Income, Net of Income Tax 132,104,468.87 93,448,547.69
Other comprehensive income attributable to owners of
54,815,351.50 40,202,998.69
the Company, net of tax
Hikvision 2023 Q3 Report
Item 2023 Q1~Q3 2022 Q1~Q3
(I) Items that will not be reclassified subsequently to
- -
profit or loss
(II) Other comprehensive income to be reclassified to
54,815,351.50 40,202,998.69
profit or loss in subsequent periods
1. Exchange differences arising on conversion of
financial statements denominated in foreign 54,815,351.50 40,202,998.69
currencies
Other comprehensive income attributable to minority
77,289,117.37 53,245,549.00
interests, net of tax
VII. Total Comprehensive Income 9,630,335,719.19 9,467,297,445.52
Total comprehensive income attributable to owners of
8,905,982,468.71 8,880,807,272.36
the parent company
Total comprehensive income attributable to minority
724,353,250.48 586,490,173.16
shareholders
VIII. Earnings Per Share
(I) Basic earnings per share 0.949 0.938
(II) Diluted earnings per share 0.949 0.938
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
1.3 Consolidated cash flow statement from the beginning of the year to the end of the reporting period
Unit: RMB
Item 2023 Q1~Q3 2022 Q1~Q3
I. Cash Flows from Operating Activities:
Cash received from sale of goods or rendering of services 64,047,725,763.17 59,535,173,216.27
Receipts of tax refunds 2,795,802,271.62 3,065,301,011.49
Other cash receipts relating to operating activities 1,467,205,190.63 1,816,017,950.14
Sub-total of cash inflows from operating activities 68,310,733,225.42 64,416,492,177.90
Cash payments for goods purchased and services received 39,429,099,767.75 42,941,542,076.67
Cash paid to and on behalf of employees 13,869,935,240.93 12,515,261,002.67
Payments of various types of taxes 4,618,424,247.88 4,385,864,114.47
Other cash payments relating to operating activities 4,479,420,487.91 4,413,707,843.05
Sub-total of cash outflows from operating activities 62,396,879,744.47 64,256,375,036.86
Net Cash Flows from Operating Activities 5,913,853,480.95 160,117,141.04
II. Cash Flows from Investing Activities:
Cash receipts from recovery of investments 3,676,551,269.16 5,325,102,722.13
Cash receipts from investment income 2,170,800.00 52,646,156.83
Net cash receipts from disposals of fixed assets, intangible
4,992,600.07 15,393,463.90
assets and other long-term assets
Other cash receipts relating to investing activities 45,490,116.17 37,408,842.43
Sub-total of cash inflows from investing activities 3,729,204,785.40 5,430,551,185.29
Hikvision 2023 Q3 Report
Item 2023 Q1~Q3 2022 Q1~Q3
Cash payments to acquire or construct fixed assets,
3,321,446,998.66 2,792,918,794.05
intangible assets and other long-term assets
Cash paid to acquire investments 3,803,400,267.38 5,260,713,466.18
Net cash paid to acquire subsidiaries and other business
43,992,651.82 -
units
Sub-total of cash outflows from investing activities 7,168,839,917.86 8,053,632,260.23
Net Cash Flows from Investing Activities (3,439,635,132.46) (2,623,081,074.94)
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 10,820,000.00 2,893,831,394.55
Including: cash receipts from capital contributions from
10,820,000.00 -
minority owners of subsidiaries
Cash receipts from borrowings 8,411,594,640.04 7,552,410,026.04
Other cash receipts relating to financing activities 5,000,000.00 -
Sub-total of cash inflows from financing activities 8,427,414,640.04 10,446,241,420.59
Cash repayments of borrowings 3,193,590,889.95 3,915,869,370.59
Cash payments for distribution of dividends or profits or
6,919,370,094.76 8,593,072,039.85
settlement of interest expenses
Other cash payments relating to financing activities 881,998,903.51 130,241,064.72
Sub-total of cash outflows from financing activities 10,994,959,888.22 12,639,182,475.16
Net Cash Flows from Financing Activities (2,567,545,248.18) (2,192,941,054.57)
IV. Effect of Foreign Exchange Rate Changes on Cash and
91,529,173.89 149,153,315.95
Cash Equivalents
V. Net Decrease in Cash and Cash Equivalents (1,797,725.80) (4,506,751,672.52)
Add: Opening balance of Cash and Cash Equivalents 39,815,390,514.57 34,603,944,429.20
VI. Closing Balance of Cash and Cash Equivalents 39,813,592,788.77 30,097,192,756.68
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
2. Adjustments to financial report at the beginning of the year relating to the initial adoption of the new
accounting standards or interpretation of standards since 2023.
√Applicable □Inapplicable
The Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for Business Enterprises (the
"Interpretation No. 16") on November 30, 2022. The scope of the initial recognition exemption for deferred income
tax in the Accounting Standards for Business Enterprises No. 18-Income Tax was revised. Making it clear that the
provisions on exemption of initial recognition of deferred income tax liabilities and deferred income tax assets in
Accounting Standards for Business Enterprises No. 18-Income Taxes shall not be applied if a single transaction is
not a business combination, that affects neither accounting profit nor taxable income (or deductible loss) when the
Hikvision 2023 Q3 Report
transaction occurs, and that initially recognized assets and liabilities result in equal taxable temporary differences
and deductible temporary differences. This provision is effective as of January 1, 2023 and may be implemented in
advance. The Group implemented this requirement from January 1, 2023, and accounted for individual transactions
between the beginning of the earliest period in which the financial statements are presented and December 31, 2022
using the retrospective adjustment method, and restated the financial statements for the comparative period. The
specific impact on the financial statement items is described below:
(1) The impact on the relevant items of the Group's consolidated balance sheet on January 1, 2022
Unit: RMB
Item Before the restatement Adjustment After the restatement
Deferred tax assets 1,210,877,575.24 758,784.91 1,211,636,360.15
Deferred tax liabilities 93,315,151.17 971,090.51 94,286,241.68
Retained earnings 45,148,877,451.52 (942,347.44) 45,147,935,104.08
Minority equity 1,933,755,610.62 730,041.84 1,934,485,652.46
(2) The impact on the relevant items of the Group's consolidated balance sheet on December 31, 2022
Unit: RMB
Item Before the restatement Adjustment After the restatement
Deferred tax assets 1,469,646,489.04 1,320,206.64 1,470,966,695.68
Deferred tax liabilities 116,502,770.84 837,606.91 117,340,377.75
Retained earnings 49,460,240,986.49 (483,408.98) 49,459,757,577.51
Minority equity 4,580,999,418.82 966,008.71 4,581,965,427.53
(3) The impact on the relevant items of the Group's 2022 consolidated income statement
Unit: RMB
Item Before the restatement Adjustment After the restatement
Income tax expenses 1,297,981,905.54 (694,905.33) 1,297,287,000.21
Net profit attributable to owners of parent company 12,837,342,061.07 458,938.46 12,837,800,999.53
Profit or loss attributable to minority shareholders 719,627,660.86 235,966.87 719,863,627.73
(4) The impact on items related to the Group's consolidated income statement for the period from January 1, 2022
to September 30, 2022
Hikvision 2023 Q3 Report
Unit: RMB
Item Before the restatement Adjustment After the restatement
Income tax expenses 1,137,676,186.81 (422,927.54) 1,137,253,259.27
Net profit attributable to owners of parent company 8,840,255,887.45 348,386.22 8,840,604,273.67
Profit or loss attributable to minority shareholders 533,170,082.84 74,541.32 533,244,624.16
3. Audit Report
Whether audit has been performed on this 2023 3rd Quarter Report
□ Yes √ No
The Company’s 2023 3rd Quarter report has not been audited.
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Board of Directors
October 21, 2023
Note:
This document is a translated version of the Chinese version 2023 3rd Quarter Report (“2023 年第三季度报告”),
and the published announcements in the Chinese version shall prevail. The complete published Chinese 2023 3rd
Quarter Report may be obtained at www.cninfo.com.cn.
