HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO.,LTD
2017 Interim Report
January to September 2017
October 31st 2017
Hikvision 2017 Q3 Report
Section I Important Notes, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and senior
management of Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee that the information presented in this
report shall be together be wholly liable for the truthfulness, accuracy and
completeness of its contents and free of any false records, misleading statements or
material omissions, and will undertake individual and joint legal liabilities.
All directors have attended the meeting of the board to review this report.
Chen ZongNian, the Company's legal representative, Jin Yan, the Chief
Accountant and the Person in Charge of the Accounting Department of the Company
(Chief Accounting Officer) 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 2017 Q3 Financial Report (“2017 年第
三季度报告全文”), and the published Q3 report in the Chinese version shall prevail. The complete
published Chinese 2017 Q3 Financial Report may be obtained at http://www.cninfo.com.
Hikvision 2017 Q3 Report
Section II Corporate Profile
I. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of previous accounting data
√ Yes □No
The reason for retroactive adjustment or restatement of previous accounting data:
Accounting arrangement method for business merger under the common control
Change(%) between December 31st
At December 31st 2016
2016 and September 30th 2017
At September 30th 2017
Before Adjustments After Adjustments After Adjustments
Total assets (RMB) 44,304,408,732.50 41,339,007,814.83 41,348,428,750.40 7.15%
Net assets attributable to shareholders of the Company (RMB) 26,925,124,706.97 24,288,634,890.08 24,283,755,426.31 10.88%
Change(%) between Change(%) between 2016 Q1~Q3
2016 Q3 2016 Q1~Q3
2016 Q3 and 2017 Q3 and 2017 Q1~Q3
2017 Q3 2017 Q1~Q3
Before Adjustments After Adjustments After Adjustments Before Adjustments After Adjustments After Adjustments
Operating income (RMB) 11,282,202,421.66 8,588,270,242.70 8,590,947,557.65 31.33% 27,729,742,158.18 21,136,468,968.82 21,144,424,306.23 31.14%
Hikvision 2017 Q3 Report
Net profits attributable to shareholders of
2,861,268,129.82 2,243,111,069.90 2,243,940,889.34 27.51% 6,152,814,186.52 4,849,957,525.28 4,851,762,418.77 26.82%
the Company (RMB)
Change(%) between Change(%) between 2016 Q1~Q3
2016 Q3 2016 Q1~Q3
2016 Q3 and 2017 Q3 and 2017 Q1~Q3
2017 Q3 2017 Q1~Q3
Before Adjustments After Adjustments After Adjustments Before Adjustments After Adjustments After Adjustments
Net profits attributable to shareholders of
the Company excluding non-recurring 2,819,127,478.82 2,143,368,877.17 2,144,193,431.01 31.48% 6,008,993,697.69 4,717,571,798.26 4,719,380,116.99 27.33%
gains and losses (RMB)
Net cash flows from operating activities
2,038,650,373.18 1,556,206,067.43 1,557,997,147.08 30.85% 95,849,570.76 1,954,013,323.91 1,955,771,375.36 -95.10%
(RMB)
Basic earnings per share (RMB/share) 0.315 0.249 0.249 26.51% 0.671 0.537 0.538 24.72%
Diluted earnings per share (RMB/share) 0.313 0.247 0.247 26.72% 0.673 0.535 0.535 25.79%
Weighted average ROE 11.55% 11.00% 11.01% 0.54% 22.38% 23.69% 23.70% -1.32%
Hikvision 2017 Q3 Report
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item January 1st –September 30th 2017
Profit or loss from disposal of non-current assets (including the write-off for the
2,167,026.36
impairment 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
71,160,201.47
and government subsidy based on standard quota or quantification application
according to the state industrial policy.)
Profits and losses attributed to change in fair value for held-for-trading financial
assets, held-for-trading financial liabilities, and investment income in disposal of
held-for-trading financial assets and liabilities and available-for sale financial 82,212,062.53
assets, excluding the effective hedging business related to the regular business
operation of the Company.
Other non-operating income and expenditures except the items mentioned above 26,752,311.52
Less: Impact of income tax 27,343,740.28
The impact of the minority interests (after tax) 11,127,372.77
Total 143,820,488.83
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in
the , or classifies any non-recurring gain/loss item mentioned in the
aforementioned note as a recurrent gain/loss item
□ Applicable √ Inapplicable
In the reporting period, the Company did not classify an item as a non-recurring gain/loss according to the
definition in the , or classifies any non-recurring gain/loss item
mentioned in the aforementioned note as a recurrent gain/loss item
Hikvision 2017 Q3 Report
II. Total Number of Shareholders at the end of the reporting period and Information for Top
10 Shareholders
1. Total number of common shareholders and preferred shareholders with resumed voting rights and
information about top 10 shareholders
Unit: Share
Total number of common shareholders at the end of the reporting period 127,510
Particulars about shares held by Top 10 shareholders
Share- Total shares Number of
Name of shareholder Nature of shareholder holding held at the end restricted shares
percentage (%) of the period held
China Electronics Technology HIK Group Co., Ltd. State-owned corporation 39.59% 3,653,674,956
Gong Hongjia Overseas individual 15.01% 1,385,056,700 1,118,812,500
Hong Kong Securities Clearing Company
Overseas corporation 9.34% 861,640,362
Ltd.(HKSCC)
Xinjiang Weixun Investment Management Limited Domestic non-state-owned
5.96% 549,720,876 438,232,500
Partnership corporation
Domestic non-state-owned
Xinjiang Pukang Investment Limited Partnership 2.08% 192,346,874 144,260,155
corporation
The 52nd Research Institute at China Electronics
State-owned corporation 1.96% 180,775,044
Technology group Corporation
Hu Yangzhong Domestic Individual 1.33% 122,786,477 92,129,982
Domestic non-state-owned
Citic Securities Co., Ltd. 1.22% 112,283,074
corporation
UBS AG Overseas corporation 1.20% 111,151,294
Central Huijin Investment Ltd. State-owned corporation 0.71% 65,818,800
Particulars about shares held by the Top 10 shareholders holding shares not subject to trading restriction(s)
Type of shares
Number of tradable shares
Name of shareholder
held at the end of the period Type Number
China Electronics Technology HIK Group Co., Ltd. 3,653,674,956 RMB ordinary shares 3,653,674,956
Hong Kong Securities Clearing Company
861,640,362 RMB ordinary shares 861,640,362
Ltd.(HKSCC)
Hikvision 2017 Q3 Report
Type of shares
Number of tradable shares
Name of shareholder
held at the end of the period Type Number
Gong Hongjia 266,244,200 RMB ordinary shares 266,244,200
The 52nd Research Institute at China Electronics
180,775,044 RMB ordinary shares 180,775,044
Technology Group Corporation
Citic Securities Co., Ltd. 112,283,074 RMB ordinary shares 112,283,074
Xinjiang Weixun Investment Management Limited RMB ordinary shares
111,488,376 111,488,376
Partnership
UBS AG 111,151,294 RMB ordinary shares 111,151,294
Central Huijin Investment Ltd. 65,818,800 RMB ordinary shares 65,818,800
Zhejiang Orient Holdings Co., Ltd. 50,475,000 RMB ordinary shares 50,475,000
Xinjiang Pukang Investment Limited Partnership 48,086,719 RMB ordinary shares 48,086,719
China Electronics Technology HIK Group Co., Ltd. and The 52nd Research
Institute at China Electronics Technology Group Corporation are all subject to
control of China Electronics Technology Group Corporation. Ms. Chen
Chunmei, controlling shareholder of Xinjiang Pukang Investment Limited
Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder
Explanation on associated relationship or/and persons of the Company. Hu Yangzhong, domestic individual, is holding shares in both
Xinjiang Weixun Investment Management Limited Partnership and Xinjiang
acting in concert among the above-mentioned Pukang Investment Limited Partnership.
Except for these, the Company does not know whether the other shareholders
shareholders:
are related parties and 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 (《上市公司股东持股变动信
息披露管理办法》)
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
Hikvision 2017 Q3 Report
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
September 30th 2017 January 1st 2017
Item YoY change (%) Note of Changes
（RMB） （RMB）
Account Receivable 15,171,778,607.65 11,243,843,324.90 34.93% Increase follows the increase in sales revenue
Prepayments 370,891,604.84 279,023,207.91 32.93% Increase in prepayments for material procurement
Inventories 5,440,626,715.72 3,829,947,876.75 42.05% Inventory increases as sales increase
Other Current Asset 512,032,844.26 4,153,992,276.78 -87.67% Maturity of principal-guaranteed financial products
Long-term receivables 134,283,654.33 251,588,919.15 -46.63% Collection of receivables due
Long-term equity investment 124,385,439.21 35,000,000.00 255.39% Mainly due to investments on Maxio Technology (Hangzhou)
Mainly due to increase of investments in Security Industrial Base Project
Construction in process 1,205,329,627.29 316,482,522.36 280.85%
(Tonglu) Phase 2 & Internet Security Industry Base
Short-term loans 650,412,864.82 32,291,324.85 1914.20% Increase of loans for temporary revolving capital
Financial liabilities measured by fair value and
changes in fair value would be recognized in
28,187,297.02 69,789,502.97 -59.61% Change in fair value of financial derivatives
the current period gains and losses
Implementation of 2016 annual profit distribution scheme, dividend payable
Dividends payable 92,407,139.16 20,105,831.16 359.60% for restricted incentive shares increased
Hikvision 2017 Q3 Report
September 30th 2017 January 1st 2017
Item YoY change (%) Note of Changes
（RMB） （RMB）
Other payables Prepaid capital for subscription of 2016 Restricted Incentive Shares Scheme
497,695,436.00 1,049,164,707.44 -52.56%
was transferred to share capital after capital verification
Non-current liabilities due within one year 723,925,366.11 15,340,813.03 4618.95% Increase in portion of long-term loans that are due within one year
Other current liabilities Increase of restricted shares after registration of 2016 restricted incentive
853,507,327.55 300,177,750.17 184.33%
shares granted
Deferred income 21,106,099.45 10,833,745.99 94.82% Deferred income increase due to cloud storage service
Share capital 9,228,865,114.00 6,102,706,885.00 51.23% Increase in share capital due to 2016 annual profit distribution
Capital reserves 1,770,445,386.63 1,050,240,853.66 68.58% Increase of capital reserves and treasury shares after registration of 2016
restricted incentive shares granted
Treasury stock 853,507,327.55 300,177,750.17 184.33%
1.2 Explanation for variations in income statement items
Item Q1-Q3 2017 (RMB) Q1-Q3 2016 (RMB) YoY Change (%) Note of changes
Operating Income 27,729,742,158.18 21,144,424,306.23 31.14% Operating Income increased with the steady increase of market demands.
Business Taxes and Levies 276,908,073.14 157,714,144.35 75.58% Increase with the operating income growth
Selling expenses increase with the Company’s continuous increasing
Selling expenses 2,960,426,405.60 2,007,702,021.31 47.45%
investments on domestic and overseas sales network
Administrative expenses 2,862,065,389.84 2,125,536,667.86 34.65% The Company’s increasing investments in R&D
Financial expense 218,299,111.47 -125,733,322.07 -273.62% Increase in foreign currency exchange losses during the current reporting
Hikvision 2017 Q3 Report
Item Q1-Q3 2017 (RMB) Q1-Q3 2016 (RMB) YoY Change (%) Note of changes
period affected by currency fluctuations
Impairment Losses of Assets 375,478,836.89 238,784,535.52 57.25% Increase in A/R balance resulted in increase in bed debt provisions
Gains from changes in fair values (Losses are
38,626,739.56 -7,414,642.50 -620.95% Change in fair value of financial derivatives
indicated by \"－\")
Mainly for VAT Rebates, booked in other income instead of non-operating
Other Income 1,040,078,811.54 0.00 100%
income, according the accounting regulations.
According to the latest local tax regulations, the water conservancy
Non-operating Expenses 2,787,256.22 27,013,815.80 -89.68%
construction fund will not be paid this year
Income Tax Expenses 662,436,664.14 507,470,567.59 30.54% Increase with the total profit growth
1.3 Explanation for variations in cash flow statement items
Item Q1-Q3 2017 (RMB) Q1-Q3 2016 (RMB) YoY Change (%) Note of changes
Mainly due to payments for material procurements, tax payables, and 2016
Net cash flow from operating activities 95,849,570.76 1,955,771,375.36 -95.10%
year-end bonus
Net cash flow from investment activities 2,657,270,850.26 737,733,824.15 260.19% Mainly due to collection of matured principal-guaranteed financial products
Net cash flow from financing activities -2,992,526,336.30 -864,916,664.30 -245.99% Mainly due to dividends paid
Mainly due to payments for material procurements, tax payables, and 2016
Net increase in cash and cash equivalents -577,320,410.12 2,006,581,139.27 -128.77%
year-end bonus
2. Progress and influence of significant events, analysis and explanation of corresponding solutions.
□ Applicable √ Inapplicable
Hikvision 2017 Q3 Report
3. Incomplete commitments from the related committed parties such as the Company’s Actual Controller, Shareholders, related parties,
acquirer(s), and the Company during the reporting period
√Applicable □ Inapplicable
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
1. Commitments in non-competition within the industry: In the period as controlling shareholders of the
Hikvision, CETHIK and its controlling subsidiaries (excluding Hikvision and its subsidiaries, the same
below) will not be engaged in such business that is competitive to Hikvision and its subsidiaries directly
or indirectly.
2. Commitments in decrease and regulation of transactions with related party: Zhejiang Haikang Group
Co., Ltd (hereinafter referred to as Haikang Group or actual controller) as the controlling shareholders of
Hangzhou Hikvision Digital Technology Co., Ltd (hereinafter referred to as \"Hikvision\" or \"Listed
Company\") are commited as below for the transactions with Hikvsion:
(1) Haikang Group will not make use of the controlling power to offer more favorable conditions to
Hikvision than those to any independent third party in any fair market transactions in the cooperation with
Commitments Hikvision.
in offering (2) Haikang Group will not make use of the controlling power to obtain the prior right to complete the
29 October, Strict
documents or CETHIK Group Co., Ltd. transaction with Hikvision. Long-term
2013 performance
shareholding (3) Haikang Group will not deal with Hikvsion in not fair terms comparing to the market prices to
alterations prejudice the Company’s interests.
For unavoidable related transactions, the Company will observe the principles of justice and fairness to
deterimine prices according to the market on the basis of equality, voluntarily. The Company will obey the
Articles of Association and other regulatory documents related to the avoiding of issues about related
transactions. The related transactions will go through approval procedures in accordance with related rules
and complete legal procedures, fulfilling the information disclosure obligations in respect to the related
transactions
3. Commitment to the maintenance of the independence of the listed Company
3.1 Commitment to Personnel Independence of the listed Company
(1) Commitment that our general manager, deputy general manager, chief financial officer, secretary of the
board and other members of senior management shall not assume any positions other than directors and
Hikvision 2017 Q3 Report
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
supervisors or get any remuneration in CETHIK and/or any of its controlled entities; (2) Commitment in
keeping the management of labor, human resources and issues related to remuneration of the listed
Company independent from that of CETHIK;
3.2 Commitment to the independence of the asset of the listed Company
(1) Commitment to independent and complete asset of the listed Company
(2) Commitment free of unlawful use of cash and asset of the listed Company by the controlling
shareholders
3.3 Commitment to financial independence of the listed Company
(1) Commitment to an independent finance department with a team and accounting system;
(2) Commitment to a regulated, independent accounting system and financial management system of the
branches and subsidiaries
(3) Commitment to maintaining accounts with banks independently of and not sharing any bank account
with our controlling shareholders
(4) Commitment that the financial staff shall not assume any positions in CETHIK
(5) Commitment to paying taxes independently according to the law;
(6) Commitment to implementing financial decisions independently
3.4 The Company has set up an independent organizational structure which maintains its independent
operations which is independent from that of CETHIK.
3.5 Commitment to business Independence of the listed Company
(1) The Company has the asset, personnel, aptitude and management capability for independent and
complete business operation. The Company has the ability to operate independently in the market.
(2) Commitment in independence in both business and operations
4. Regarding plans for the development and relevant commitment for the listed Company, Haikang Group
has committed as below for the subsequent development of Hikvsion according to the Securities Acts and
relevant laws and rules,
4.1 Currently the Company has no plan to change or make significant adjustments for principal business
in the next 12 months;
4.2 Currently the Company has no plan to sell, merge or operate with another Company for the assets and
business of the listed Company or its subsidiaries in the next 12 months.
Hikvision 2017 Q3 Report
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
4.3 Currently the Company has no plan to alter the Board of the Directors and senior management and no
agreement with other shareholders about the appointment and removal of the directors or senior
management. The team of Board of Directors and senior management will remain unchanged for the
foreseeable future.
4.4 Currently the Company has no plan to make significant changes to the Articles of Association for the
listed Company.
4.5 Currently the Company has no plan to make significant changes to the existing employee recruitment
for the listed Company.
4.6 Currently the Company has no plan to make significant changes for the dividend distribution plan for
the listed Company.
4.7 Currently the Company has no plan to make significant changes for business and organizational
structure for the listed Company.
Hangzhou Weixun Investment During Hu Yangzhong, Wu Weiqi, JiangHaiqing, Zhou Zhiping, Xu Lirong, Cai Dingguo, He Hongli,
Management Limited Partnership Zheng Yibo, Hu Dan,、Jiang Yufeng, Liu Xiang, Wang Ruihong, Chen Junke’s tenure of the Company’s
Strict
（later renamed as Xinjiang board of directors, supervisors and senior management personnel, the annual transfer of Hikvision’s total 17 May, 2010 Long term
performance
Weixun Investment Management shares should not exceed 25% of total number of shares held under Weixun; within 6 months after
Limited Partnership） abovementioned personnel’s dimission, should not transfer hikvision’s shares held under Weixun.
Commitments
in Initial Hangzhou Pukang Investment During Hu Yangzhong, Wu Weiqi, Gong Hongjia’s tenure of the Company’s board of directors,
Public Limited Partnership（later renamed supervisors and senior management personne, the annual transfer of Hikvision’s total shares should not Strict
Offering or 17 May, 2010 Long term
as Xinjiang Pukang Investment exceed 25% of total number of shares held under Pukang; whithin 6 months after abovementioned performance
re-financing
Limited Partnership） personnel’s dimission, should not transfer hikvision’s shares held under Pukang.
The Company's directors,
During their tenure of the Company’s board of directors, supervisors and senior management personnel,
supervisors and executive: Strict
the annual shares transfer should not exceed 25% of total number of shares held under Weixun; whthin 6 17 May, 2010 Long term
HuYangzhong,Wu Weiqi, Jiang performance
months after their dimission, they should not transfer their shares held under Weixun.
Haiqing, Zhou Zhiping，Xu Lirong,
Hikvision 2017 Q3 Report
Date of Term of
Commitments Giver of commitments Details of commitments Performance
commitments commitments
Cai Dingguo, He Hongli, Zheng
Yibo, Hu Dan, Jiang Yufeng, Liu
Xiang, Wang Ruihong, Chen Junke
Directors, executive officers of the During their tenure of the Company’s board of directors, supervisors and senior management personnel,
Strict
Company: the annual shares transfer should not exceed 25% of total number of shares held under Pukang; whthin 6 17 May, 2010 Long term
performance
Hu Yangzhong, Wu Weiqi months after their dimission, they should not transfer their shares held under Pukang.
During Gong Hongjia’s tenure of the Company’s board of directors, supervisors and senior management
The Company’s director Gong personnel, Chen’s annual shares transfer should not exceed 25% of total number of shares held under Strict
17 May, 2010 Long-term
Hongjia’s spouse, Chen Chunmei Pukang; whthin 6 months after the dimission of Gong Hongjia,Chen should not transfer her shares held performance
under Pukang.
To avoid any loss of the Company and other shareholders arising from any competing business, China
China Electronics Technology Electronics Technology Group Corporation, the actual controller of the Company, issued Commitment 18 September, Strict
Long term
Group Corporation Letter about Avoiding the Competition within the Same Industry (《避免同业竞争的承诺函》) on 18 2008 performance
September, 2008.
Gong Hongjia；
To avoid any loss of the Company and other shareholders arising from any competing business, Gong
XinJiang WeiXun Investment Hongjia, Hangzhou WeiXun Investment Management Limited Partnership, ZheJiang Orient Holdings Co.,
Management Limited Partnership； Ltd and Hangzhou KangPu Investment Management Limited Partnership, the promoters of the Company, Strict
XinJiang KangPu Investment issued Commitment Letter about Avoiding the Competition within the Same Industry (《避免同业竞争的 10 July, 2008 Long term performance
Management Limited Partnership； 承诺函》) on 10 July, 2008.
ZheJiang Orient Holdings Co., Ltd.
Whether the
undertaking is
Yes
fulfilled in
time
Hikvision 2017 Q3 Report
4. Guidance on the Company’s 2017 full year operational result.
Guidance on the Company’s 2017 full year operational performance: Net profits attributable to shareholders of the Company are positive, and situation of turning losses into
gains is not applicable.
Estimated YoY change (%) of 2017 net profits attributable to shareholders of the Company. 15% to 35%
Estimated variation interval of 2017 net profits attributable to shareholders of the Company.
853,832.67 to 1,002,325.31
(0,000 RMB)
2016 Net profits attributable to shareholders of the Company. (0,000 RMB) (Note) 742,463.19
Note of change in operational results The Company’s operating performance continues to have a steady growth.
Note: 2016 Net profits attributable to shareholders of the Company here were retroactively adjusted for business merger under the common control.
5. Financial Assets measured at fair value
√ Applicable □ Inapplicable
Unit: RMB
Profits or losses on
the changes in fair Cumulative fair value change Purchase during the Sales during the Cumulative
Category Initial investment cost Closing balance Source of funds
value in current charged to equity reporting period reporting period investment income
period
Derivative instruments 2,485,985,565.37 38,626,739.56 -- 1,587,765,939.71 -- 23,849,562.03 1,512,525,748.71 Company's own funds
Total 2,485,985,565.37 38,626,739.56 -- 1,587,765,939.71 -- 23,849,562.03 1,512,525,748.71 --
6. Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
Hikvision 2017 Q3 Report
No such case in the reporting period.
7. The Company’s funds used by the controlling shareholder or its related parties for non-operating purposes
□ Applicable √ Inapplicable
No such case in the reporting period.
8. Schedule for the reception activities including research, communication and interviews during the report period
√ Applicable □ Inapplicable
8.1 Reception of research activities during 2017 Q3.
Time of reception Method of reception Type of reception object Basic situation of the research
Performance result
July 24th 2017 Institutional and individual investors CNINF, Investor Relations Activity Record: July 24th 2017
Conference Call
Site Research and telephone
From July 25th ,2017 to August 4th,2017 Institutional investors and media CNINF, Investor Relations Activity Record: From June 25th, 2017 to August 4th, 2017
communication
Site Research and telephone
From August 7th,2017 to August 25th, 2017 Institutional investors CNINF, Investor Relations Activity Record: From August 7th, 2017 to August 25th, 2017
communication
Site Research and telephone
From August 28th,2017 to September 8th,2017 Institutional investors CNINF, Investor Relations Activity Record: From August 28th, 2017 to September 8th, 2017
communication
Site Research and telephone
From September 11th, 2017 to September 29th, 2017 Institutional and individual investors CNINF, Investor Relations Activity Record: From September 11th, 2017 to September 29th, 2017
communication
Hikvision 2017 Q3 Report
8.2 Participation of conferences for investor relationship activities during 2017 Q3
Time of conference Location Conference Name Type of reception object Method of reception
July 2017 Shenzhen Macquarie 2017 A-share Annual Investor Forum All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
July 2017 London-Edinburgh UK NDR – via BNP Paribas All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
August 2017 Singapore-Hongkong Singapore & Hong Kong NDR-via BoA Merrill Lynch All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
September 2017 Shenzhen UBS 2017 A-Share Conference All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
September 2017 Shenzhen Goldman Sachs 2017 China Conference All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
September 2017 Taibei Credit Suisse 18th Annual Asian Technology Conference All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
September 2017 Shanghai Nomura China Investor Forum 2017 All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
September 2017 London Morgan Stanley 2017 Asia Corporate Day All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
September 2017 London 2017 CICC London Forum All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
September 2017 Hongkong 24th CLSA Investors’ Forum All kinds of investors One-on-One, One-on-multi, small group Meetings, and etc.
8.3 Investor relations activity statistics during 2017 Q3
Number of daily research received (Site and telephone conference)
Number of institutional investors received (times)
Number of individual investors received (headcounts)
Number of investor relations conference participated
Hikvision 2017 Q3 Report
IV. Financial Reports
5.1 Financial Reports
1. Consolidated Balance Sheet
Prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
September 30th, 2017
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Cash and bank balances 13,167,615,852.24 13,638,078,139.56
Balances with clearing agencies
Placements with banks and other financial
institutions
Financial assets measured by fair value
and changes in fair value would be
12,820,377.42 15,547,537.34
recognized in the current period gains and
losses
Derivative financial assets
Notes receivable 3,260,687,198.15 2,843,404,415.52
Accounts receivable 15,171,778,607.65 11,243,843,324.90
Prepayments 370,891,604.84 279,023,207.91
Premiums receivable
Amounts receivable under reinsurance
contracts
Reinsurer's share of insurance contract
reserves
Interests receivable
Dividends receivable
Other receivables 554,550,891.60 528,644,227.42
Financial assets purchased under resale
agreements
Inventories 5,440,626,715.72 3,829,947,876.75
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets 512,032,844.26 4,153,992,276.78
Total Current Assets 38,491,004,091.88 36,532,481,006.18
Hikvision 2017 Q3 Report
Item Closing balance Opening balance
Non-current Assets:
Loans and advances to customers
Available-for-sale financial assets 287,466,813.00 283,836,013.00
Held-to-maturity investments
Long-term receivables 134,283,654.33 251,588,919.15
Long-term equity investment 124,385,439.21 35,000,000.00
Investment properties
Fixed assets 2,928,515,602.53 2,853,908,475.49
Construction in progress 1,205,329,627.29 316,482,522.36
Materials for construction of fixed assets
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 409,074,338.20 410,456,789.63
Development expenditures
Goodwill 248,364,401.47 248,364,401.47
Long-term prepaid expenses
Deferred tax assets 444,377,346.59 375,310,938.70
Other non-current assets 31,607,418.00 40,999,684.42
Total Non-current Assets 5,813,404,640.62 4,815,947,744.22
Total Assets 44,304,408,732.50 41,348,428,750.40
Current Liabilities:
Short-term borrowings 650,412,864.82 32,291,324.85
Loans from the central bank
Customer deposits and deposits from
banks and other financial institutions
Capitals taking from banks and other
financial institutions
Financial liabilities measured by fair value
and changes in fair value would be
28,187,297.02 69,789,502.97
recognized in the current period gains and
losses
Derivative financial liabilities
Notes payable 733,584,221.11 876,804,536.72
Accounts payable 6,711,619,644.23 7,009,322,028.13
Receipts in advance 402,471,608.02 469,804,837.45
Hikvision 2017 Q3 Report
Item Closing balance Opening balance
Financial assets sold under repurchase
agreements
Fees and commissions payable
Payroll payable 950,428,923.64 1,084,951,139.10
Taxes payable 974,927,666.86 1,205,710,722.22
Interests payable
Dividends payable 92,407,139.16 20,105,831.16
Other payables 497,695,436.00 1,049,164,707.44
Amounts payable under reinsurance
contracts
Insurance contract reserves
Funds from securities trading agency
Funds from underwriting securities agency
Liabilities classified as held for sale
Non-current liabilities due within one year 723,925,366.11 15,340,813.03
Other current liabilities 853,507,327.55 300,177,750.17
Total Current Liabilities 12,619,167,494.52 12,133,463,193.24
Non-current Liabilities:
Long-term borrowings 1,310,990,200.58 1,722,207,584.33
Bonds payable 3,129,320,000.00 2,954,449,528.77
Including: Preferred share
Perpetual bond
Long-term payables 5,613,544.53 7,000,000.00
Long-term employee benefits payable
Special payables
Provisions 47,757,207.79 41,933,212.54
Deferred income 21,106,099.45 10,833,745.99
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 4,514,787,052.35 4,736,424,071.63
Total liabilities 17,133,954,546.87 16,869,887,264.87
Owners’ Equities
Share capital 9,228,865,114.00 6,102,706,885.00
Other equity instruments
Including: Preferred share
Hikvision 2017 Q3 Report
Item Closing balance Opening balance
Perpetual debt
Capital reserves 1,770,445,386.63 1,050,240,853.66
Less: Treasury stock 853,507,327.55 300,177,750.17
Other comprehensive income -40,837,393.47 -41,230,777.21
Special reserves
Surplus reserve 2,615,437,822.15 2,615,437,822.15
General risk reserve
Retained profits 14,204,721,105.21 14,856,778,392.88
Total owners' equity attributable to owner of
26,925,124,706.97 24,283,755,426.31
the Company
Minority interests 245,329,478.66 194,786,059.22
Total owners' equity 27,170,454,185.63 24,478,541,485.53
Total liabilities and owners' equity 44,304,408,732.50 41,348,428,750.40
Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
2. Balance Sheet of the Parent Company
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Cash and bank balances 10,171,408,930.81 10,249,118,159.19
Financial assets measured by fair value
and changes in fair value would be
2,036,180.78 5,284,890.86
recognized in the current period gains and
losses
Derivative financial assets
Notes receivable 195,579,174.36 221,542,747.41
Accounts receivable 15,674,121,467.35 10,128,753,520.42
Prepayments 66,143,783.63 8,256,040.04
Interests receivable
Dividends receivable
Other receivables 1,470,443,724.81 417,963,245.46
Inventories 562,818,018.22 566,168,466.17
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets 224,884,764.62 3,889,519,711.57
Hikvision 2017 Q3 Report
Item Closing balance Opening balance
Total Current Assets 28,367,436,044.58 25,486,606,781.12
Non-current Assets:
Available-for-sale financial assets 287,456,813.00 283,221,700.00
Held-to-maturity investments
Long-term receivables 14,620,981.46 72,153,363.60
Long-term equity investment 2,819,174,690.37 1,714,688,703.42
Investment properties
Fixed assets 1,719,412,693.46 1,720,579,461.05
Construction in progress 785,813,481.15 248,447,641.34
Materials for construction of fixed assets
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 128,508,954.76 131,566,733.76
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets 194,230,198.07 177,568,964.27
Other non-current assets 31,607,418.00 10,782,858.00
Total Non-Current Assets 5,980,825,230.27 4,359,009,425.44
Total Assets 34,348,261,274.85 29,845,616,206.56
Current Liabilities:
Short-term borrowings
Financial liabilities measured by fair value
and changes in fair value would be
4,865,377.43 58,858,697.43
recognized in the current period gains and
losses
Derivative financial liabilities
Notes payable
Accounts payable 1,502,448,540.16 138,851,152.86
Receipts in advance 217,251,242.62 233,831,105.17
Payroll payable 700,970,176.81 811,701,475.85
Taxes payable 917,433,501.80 998,754,860.91
Interests payable
Dividends payable 92,407,139.16 20,105,831.16
Hikvision 2017 Q3 Report
Item Closing balance Opening balance
Other payables 960,670,883.56 787,861,780.95
Liabilities classified as held-for-sale
Non-current liabilities due within one year 23,925,366.11
Other current liabilities 853,507,327.55 300,177,750.17
Total Current Liabilities 5,273,479,555.20 3,350,142,654.50
Non-Current Liabilities:
Long-term borrowings
Bonds payable 3,129,320,000.00 2,954,449,528.77
Including: Preferred share
Perpetual bond
Long-term payables
Long-term employee benefits payable
Special payables
Provisions 34,240,710.46 28,799,848.84
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 3,163,560,710.46 2,983,249,377.61
Total liabilities 8,437,040,265.66 6,333,392,032.11
Owners' equity
Share capital 9,228,865,114.00 6,102,706,885.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 1,698,638,895.56 955,687,875.52
Less: Treasury share 853,507,327.55 300,177,750.17
Other comprehensive income
Special reserves
Surplus reserve 2,615,437,822.15 2,615,437,822.15
Retained profits 13,221,786,505.03 14,138,569,341.95
Total owners' equity 25,911,221,009.19 23,512,224,174.45
Total liabilities and owners' equity 34,348,261,274.85 29,845,616,206.56
Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2017 Q3 Report
3. Consolidated income statement during the current reporting period
Unit: RMB
Item 2017 Q3 2016 Q3
I. Total operating income 11,282,202,421.66 8,590,947,557.65
Including: Operating income 11,282,202,421.66 8,590,947,557.65
Interest income
Premiums earned
Fees and commissions income
II. Total operating costs 8,770,040,115.83 6,599,550,570.52
Including: Operating cost 6,056,968,730.55 4,838,554,730.46
Interest expense
Fees and commissions expenses
Surrender charge fee
Claims and policyholder benefits (net
of amounts recoverable from
reinsurers)
Insurance contract reserves (net of
reinsurers’ share)
Insurance policyholder dividends
Expenses for reinsurance accepted
Business taxes and levies 102,675,477.44 60,292,484.37
Selling expenses 1,233,501,449.38 795,870,477.03
Administrative expenses 1,100,355,512.71 853,584,677.55
Financial expense 152,798,483.82 -28,550,373.71
Impairment losses of assets 123,740,461.93 79,798,574.82
Add: Gains from changes in fair values (Losses
74,249.15 867,253.82
are indicated by \"－\")
Investment income (Loss is indicated by
-3,104,411.90 15,755,624.59
\"－\")
Including: Income from investments in
7,380,152.85
associates and joint ventures
Foreign exchange gains (Losses
are indicated by “－”)
Other income 362,667,519.13
III. Operating profit (Loss is indicated by
2,871,799,662.21 2,008,019,865.54
\"－\")
Add: Non-operating income 67,674,725.34 315,409,437.93
Including: Gains from disposal of non-current
21,403.96 427,503.53
assets
Hikvision 2017 Q3 Report
Item 2017 Q3 2016 Q3
Less: Non-operating expenses 506,767.80 8,965,444.99
Including: Losses from disposal of non-current
81,352.15 472,560.73
assets
IV. Total profit (total losses expressed with \"-\") 2,938,967,619.75 2,314,463,858.48
Less: Income tax expenses 93,778,273.29 74,938,591.48
V. Net profit (net loss expressed with \"-\") 2,845,189,346.46 2,239,525,267.00
Net profit attributable to owners of parent
2,861,268,129.82 2,243,940,889.34
company
Profit or loss attributable to minority interests -16,078,783.36 -4,415,622.34
VI. Other comprehensive income, net of
-34,857,287.93 108,011,435.11
income tax
Other comprehensive income attributable to
-28,196,995.97 1,154,023.40
owners of the Company, net of tax
(I) Items that will not be reclassified subsequently
to profit or loss
1. Changes in net liabilities or assets of
re-measurement of defined benefit
obligation
2. Amounts of other comprehensive income
attributes to investees that cannot be
reclassified into profit or loss under equity
method
(II) Other comprehensive income to be
reclassified to profit or loss in subsequent -28,196,995.97 1,154,023.40
periods
1. Amounts of other comprehensive income
attributes to investees that are to be
reclassified into profit or loss under equity
method
2. Gain or losses attributes to the changes in
fair value of available-for-sale financial
assets
3. Gains or losses through reclassifying
held-to-maturity financial assets to
available-for-sale financial assets
4.The effective part of gains and losses on cash
flow hedging
5. Exchange differences arising on conversion
of financial statements denominated in -28,196,995.97 1,154,023.40
foreign currencies
6. Others
Other comprehensive income attributable to
-6,660,291.96 106,857,411.71
minority interests, net of tax
VII. Total comprehensive income 2,810,332,058.53 2,347,536,702.11
Total comprehensive income attributable to
2,833,071,133.85 2,245,094,912.74
owners of the parent company
Hikvision 2017 Q3 Report
Item 2017 Q3 2016 Q3
Total comprehensive income attributable to
-22,739,075.32 102,441,789.37
minority interests
VIII. Earnings per share
(I) Basic earnings per share 0.315 0.249
(II) Diluted earnings per share 0.313 0.247
Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
4. Income statement of the Parent Company during the reporting period
Unit: RMB
Item 2017 Q3 2016 Q3
I. Total operating income 5,518,823,572.75 4,493,569,594.70
Less: Operating Cost 1,655,477,081.47 1,649,000,695.11
Business taxes and levies 77,581,355.14 55,620,993.73
Selling expenses 573,960,832.27 530,442,933.30
Administrative expenses 623,375,386.11 635,149,996.01
Financial expense -47,411,878.28 -34,985,045.43
Impairment losses of assets 143,064,436.54
Add: Gains from changes in fair values (Losses
-2,995,797.66 -2,890,468.50
are indicated by \"－\")
Investment income (Loss is indicated by \"－\") -4,051,388.64 19,989,051.27
Including: Income from investments in
4,657,858.86
associates and joint ventures
Other Income 352,400,737.85
II. Operating profit (loss is indicated by \"－\") 2,838,129,911.05 1,675,438,604.75
Add: Non-operating income 25,575,460.96 260,077,467.68
Including: Gains from disposal of
19,962.46 51,539.02
non-current assets
Less: Non-operating expenses 378,569.23 1,060,813.16
Including: Losses from disposal of
46,217.14 63,991.05
non-current assets
III. Total profit (total loss is indicated by \"－\") 2,863,326,802.78 1,934,455,259.27
Less: Income tax expenses 76,096,578.94 1,856,915.93
IV. Net profit (Net loss is indicated by \"－\") 2,787,230,223.84 1,932,598,343.34
V. Other comprehensive income, net of income
tax
(I) Items that will not be reclassified
subsequently to profit or loss not to be
reclassified to profit or loss in subsequent
periods
Hikvision 2017 Q3 Report
1. Changes in net liabilities or assets of
re-measurement of defined benefit
obligation
2. Amounts of other comprehensive
income attributes to investees that
cannot be reclassified into profit or
loss under equity method
(II) Other comprehensive income to be
reclassified to profit or loss in subsequent
periods
1. Amounts of other comprehensive
income attributes to investees that are
to be reclassified into profit or loss
under equity method
2. Gain or losses attributes to the changes
in fair value of available-for-sale
financial assets
3. Gains or losses through reclassifying
held-to-maturity financial assets to
available-for-sale financial assets
4.The effective part of gains and losses on
cash flow hedging
5. Exchange differences arising on
conversion of financial statements
denominated in foreign currencies
6. Others
VI. Total comprehensive income 2,787,230,223.84 1,932,598,343.34
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
5. Consolidated Income Statement from January 1st 2017 to September 30th 2017
Unit: RMB
Item 2017 Q1~Q3 2016 Q1~Q3
I. Total operating income 27,729,742,158.18 21,144,424,306.23
Including: Operating income 27,729,742,158.18 21,144,424,306.23
Interest income
Premiums earned
Fees and commissions income
II. Total operating costs 22,170,841,572.33 16,760,775,041.73
Including: Operating cost 15,477,663,755.39 12,356,770,994.76
Interest expense
Hikvision 2017 Q3 Report
Item 2017 Q1~Q3 2016 Q1~Q3
Fees and commissions expenses
Surrender charge fee
Claims and policyholder benefits (net
of amounts recoverable from
reinsurers)
Insurance contract reserves (net of
reinsurers’ share)
Insurance policyholder dividends
Expenses for reinsurance accepted
Business taxes and levies 276,908,073.14 157,714,144.35
Selling expenses 2,960,426,405.60 2,007,702,021.31
Administrative expenses 2,862,065,389.84 2,125,536,667.86
Financial expense 218,299,111.47 -125,733,322.07
Impairment losses of assets 375,478,836.89 238,784,535.52
Add: Gains from changes in fair values (Losses
38,626,739.56 -7,414,642.50
are indicated by \"－\")
Investment income (Loss is indicated by
46,547,777.20 42,207,125.49
\"－\")
Including: Income from investments in
3,502,450.80
associates and joint ventures
Foreign exchange gains (Losses
are indicated by “－”)
Other income 1,040,078,811.54
III. Operating profit (Loss is indicated by
6,684,153,914.15 4,418,441,747.49
\"－\")
Add: Non-operating income 102,191,004.92 967,394,959.57
Including: Gains from disposal of non-current
2,820,089.76 1,747,981.58
assets
Less: Non-operating expenses 2,787,256.22 27,013,815.80
Including: Losses from disposal of non-current
653,063.40 2,092,190.43
assets
IV. Total profit (total losses expressed with \"-\") 6,783,557,662.85 5,358,822,891.26
Less: Income tax expenses 662,436,664.14 507,470,567.59
V. Net profit (net loss expressed with \"-\") 6,121,120,998.71 4,851,352,323.67
Net profit attributable to owners of parent
6,152,814,186.52 4,851,762,418.77
company
Profit or loss attributable to minority interests -31,693,187.81 -410,095.10
VI. Other comprehensive income, net of
-5,423,522.89 96,729,834.16
income tax
Other comprehensive income attributable to
393,383.74 -16,387,539.95
owners of the Company, net of tax
Hikvision 2017 Q3 Report
Item 2017 Q1~Q3 2016 Q1~Q3
(I) Items that will not be reclassified subsequently
to profit or loss
1. Changes in net liabilities or assets of
re-measurement of defined benefit
obligation
2. Amounts of other comprehensive income
attributes to investees that cannot be
reclassified into profit or loss under equity
method
(II) Other comprehensive income to be
reclassified to profit or loss in subsequent 393,383.74 -16,387,539.95
periods
1. Amounts of other comprehensive income
attributes to investees that are to be
reclassified into profit or loss under equity
method
2. Gain or losses attributes to the changes in
fair value of available-for-sale financial
assets
3. Gains or losses through reclassifying
held-to-maturity financial assets to
available-for-sale financial assets
4.The effective part of gains and losses on cash
flow hedging
5. Exchange differences arising on conversion
of financial statements denominated in 393,383.74 -16,387,539.95
foreign currencies
6. Others
Other comprehensive income attributable to
-5,816,906.63 113,117,374.11
minority interests, net of tax
VII. Total comprehensive income 6,115,697,475.82 4,948,082,157.83
Total comprehensive income attributable to
6,153,207,570.26 4,835,374,878.82
owners of the parent company
Total comprehensive income attributable to
-37,510,094.44 112,707,279.01
minority interests
VIII. Earnings per share
(I) Basic earnings per share 0.671 0.538
(II) Diluted earnings per share 0.673 0.535
Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2017 Q3 Report
6. Income Statement of the Parent Company from January 1st 2017 to September 30th 2017
Unit: RMB
Item 2017 Q1~Q3 2016 Q1~Q3
I. Total operating income 13,028,365,700.13 11,472,963,111.24
Less: Operating Cost 4,006,666,044.52 4,078,639,749.97
Business taxes and levies 182,107,831.11 143,894,977.35
Selling expenses 1,380,249,988.98 1,367,974,513.55
Administrative expenses 1,941,372,228.12 1,639,985,338.67
Financial expense -151,720,746.96 -67,957,249.74
Impairment losses of assets 299,691,053.22 139,666,067.60
Add: Gains from changes in fair values (Losses
50,744,609.92 -2,890,468.50
are indicated by \"－\")
Investment income (Loss is indicated by \"－\") 29,045,580.78 50,125,567.24
Including: Income from investments in
3,248,710.08
associates and joint ventures
Other Income 997,732,905.65
II. Operating profit (loss is indicated by \"－\") 6,447,522,397.49 4,217,994,812.58
Add: Non-operating income 45,863,699.95 874,969,681.24
Including: Gains from disposal of
2,558,331.33 1,329,862.86
non-current assets
Less: Non-operating expenses 1,592,024.50 6,852,200.55
Including: Losses from disposal of
259,632.69 1,348,445.90
non-current assets
III. Total profit (total loss is indicated by \"－\") 6,491,794,072.94 5,086,112,293.27
Less: Income tax expenses 603,705,435.66 454,024,896.65
IV. Net profit (Net loss is indicated by \"－\") 5,888,088,637.28 4,632,087,396.62
V. Other comprehensive income, net of income
tax
(I) Items that will not be reclassified
subsequently to profit or loss not to be
reclassified to profit or loss in subsequent
periods
1. Changes in net liabilities or assets of
re-measurement of defined benefit
obligation
2. Amounts of other comprehensive
income attributes to investees that
cannot be reclassified into profit or
loss under equity method
(II) Other comprehensive income to be
reclassified to profit or loss in subsequent
periods
Hikvision 2017 Q3 Report
Item 2017 Q1~Q3 2016 Q1~Q3
1. Amounts of other comprehensive
income attributes to investees that are
to be reclassified into profit or loss
under equity method
2. Gain or losses attributes to the changes
in fair value of available-for-sale
financial assets
3. Gains or losses through reclassifying
held-to-maturity financial assets to
available-for-sale financial assets
4.The effective part of gains and losses on
cash flow hedging
5. Exchange differences arising on
conversion of financial statements
denominated in foreign currencies
6. Others
VI. Total comprehensive income 5,888,088,637.28 4,632,087,396.62
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
7. Consolidated Cash Flow Statement from January 1st 2017 to September 30th 2017
Unit: RMB
Item 2017 Q1~Q3 2016 Q1~Q3
I. Cash flows from operating activities:
Cash received from sale of goods
27,024,807,952.59 21,036,029,978.05
or rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in borrowings from central bank
Net increase in placements from other
financial institutions
Cash receipts from premiums under direct
insurance contracts
Net cash receipts from reinsurance business
Net increase in the insurance deposit and
investment fund
Net cash receipts from disposal of financial
assets measured by fair value that changes in
fair value would be recognized in the current
period gains and losses
Hikvision 2017 Q3 Report
Item 2017 Q1~Q3 2016 Q1~Q3
Cash received from interests, fees
and commissions
Net increase in capital taking from other
banks
Net increase in capital from repurchase
arrangements
Refund of tax and levies 2,115,509,024.59 1,775,399,086.25
Other cash received relating to
311,501,723.20 271,681,570.88
operating activities
Sub-total of cash inflows from operating
29,451,818,700.38 23,083,110,635.18
activities
Cash payments for goods purchased and
21,162,642,985.71 14,707,958,913.14
services received
Net increase in loans and advances
to customers
Net increase in balance with the central bank
and due to banks and other financial
institutions
Cash payments for claims and policyholders'
benefits under direct insurance contracts
Cash paid for interests, fees and commissions
Cash payment for insurance policy dividends
Cash paid to and on behalf of employees 3,498,922,254.19 2,373,218,843.51
Payments of various types of taxes 2,506,554,948.17 2,045,357,451.72
Other cash paid relating to operating activities 2,187,848,941.55 2,000,804,051.45
Sub-total of cash outflows from operating
29,355,969,129.62 21,127,339,259.82
activities
Net Cash Flow from Operating Activities 95,849,570.76 1,955,771,375.36
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
5,173,000,000.00 1,447,812,000.00
investments
Cash receipts from investment income 54,914,031.53 42,709,086.27
Net cash receipts from disposals of fixed
assets, intangible assets and other long-term 16,707,465.48 335,458.22
assets
Net cash receipts from disposals of
subsidiaries and other business units
Other cash received relating to
3,146,041.25 21,068,035.05
investing activities
Sub-total of cash inflows from investing
5,247,767,538.26 1,511,924,579.54
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 985,865,888.00 601,716,966.90
assets
Hikvision 2017 Q3 Report
Item 2017 Q1~Q3 2016 Q1~Q3
Cash paid to acquire investments 1,506,630,800.00
Net increase in pledged loans receivables
Net cash payments for acquisitions of
98,000,000.00 172,473,788.49
subsidiaries and other business units
Other cash paid relating to
investing activities
Sub-total of cash outflows from investing
2,590,496,688.00 774,190,755.39
activities
Net Cash Flow from Investment Activities 2,657,270,850.26 737,733,824.15
III. Cash flows from financing activities:
Cash receipts from capital contributions 62,024,653.20 3,092,968,537.96
Including: cash received by subsidiaries
from capital contributions from minority
owners
Cash receipts from borrowings 5,437,295,986.43 3,878,463,176.04
Cash receipts from bond issue
Other cash receipts relating to
1,492,209,115.48 1,258,376,312.14
financing activities
Sub-total of cash inflows from financing
6,991,529,755.11 8,229,808,026.14
activities
Cash repayments of amounts borrowed 4,559,910,249.53 4,676,886,269.22
Cash payments for distribution of dividends
3,793,627,103.59 2,893,051,375.91
or profits or settlement of interest expenses
Including: payments for distribution of
dividends or profits to minority owners of
subsidiaries
Other cash payments relating to financing
1,630,518,738.29 1,524,787,045.31
activities
Sub-total of cash outflows from financing
9,984,056,091.41 9,094,724,690.44
activities
Net Cash Flow from Financing Activities -2,992,526,336.30 -864,916,664.30
IV. Effect of Foreign Exchange Rate Changes
-337,914,494.84 177,992,604.06
on Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents -577,320,410.12 2,006,581,139.27
Add: Opening balance of Cash and Cash
13,522,337,697.28 10,033,468,750.19
Equivalents
VI. Closing Balance of Cash and Cash
12,945,017,287.16 12,040,049,889.46
Equivalents
Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2017 Q3 Report
8. Cash Flow Statement of the Parent Company from January 1st 2017 to September 30th 2017
Unit: RMB
Item 2017 Q1~Q3 2016 Q1~Q3
I. Cash Flows from Operating Activities::
Cash receipts from the sale of goods and the
9,384,051,521.72 10,965,114,359.22
rendering of services
Refund of tax and levies 997,732,905.65 916,006,930.31
Other cash receipts relating to operating
229,260,124.67 202,657,951.84
activities
Sub-total of cash inflows from operating
10,611,044,552.04 12,083,779,241.37
activities
Cash payments for goods acquired
3,469,498,225.96 3,933,974,389.41
and services received
Cash payments to and on behalf of
1,925,850,223.65 1,529,890,910.34
employees
Payments of all types of taxes 2,202,877,884.71 1,669,302,666.66
Other cash payments relating to operating
1,323,221,056.02 1,401,351,868.90
activities
Sub-total of cash outflows from operating
8,921,447,390.34 8,534,519,835.31
activities
Net Cash Flow from Operating Activities 1,689,597,161.70 3,549,259,406.06
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
5,170,000,000.00 1,123,000,000.00
investments
Cash receipts from investment income 41,937,763.80 50,125,567.24
Net cash receipts from disposals of fixed
assets, intangible assets and other long-term 7,676,944.32 128,125.68
assets
Net cash receipts from disposals of
70,271.21
subsidiaries and other business units
Other cash receipts relating to investing
852,552,973.35 385,788,647.39
activities
Sub-total of cash inflows from investing
6,072,237,952.68 1,559,042,340.31
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 417,737,223.06 217,425,074.41
assets
Cash payments to acquire investments 1,504,235,113.00
Net cash payments for acquisitions of
1,077,486,527.00 431,266,751.40
subsidiaries and other business units
Other cash payments relating to investing
1,038,113,091.31 556,340,084.34
activities
Sub-total of cash outflows from investing
4,037,571,954.37 1,205,031,910.15
activities
Hikvision 2017 Q3 Report
Net Cash Flow from Investment Activities 2,034,665,998.31 354,010,430.16
III. Cash Flows from Financing Activities
Cash receipts from capital contributions
Cash receipts from borrowings 300,000,000.00
Cash receipts from issue of bonds 2,995,200,000.00
Other cash receipts relating to financing
41,000.00 585,123,067.48
activities
Sub-total of cash inflows from financing
300,041,000.00 3,580,323,067.48
activities
Cash repayments of amounts
300,000,000.00 594,840,194.74
borrowed
Cash payments for distribution of dividends
3,715,492,679.55 2,872,725,623.22
or profits or settlement of interest expenses
Other cash payments relating to financing
15,151,512.29 578,874,356.00
activities
Sub-total of cash outflows from financing
4,030,644,191.84 4,046,440,173.96
activities
Net Cash Flow from Financing Activities -3,730,603,191.84 -466,117,106.48
IV. Effect of foreign exchange rate changes on
-71,328,208.84 405,392.13
cash and cash equivalents
V. Net increase in cash and cash equivalents -77,668,240.67 3,437,558,121.87
Add: Beginning balance of cash
10,245,969,003.13 6,548,073,680.91
and cash equivalents
VI. Closing Balance of Cash and Cash
10,168,300,762.46 9,985,631,802.78
Equivalents
Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2017 Q3 Report
V. Audit Report
Whether audit has been performed on this interim financial report
□ Yes √ No
The Company’s 2017 Quarter 3 report has not been audited
Note: This document is a translated version of the Chinese 2017 Quarter 3 Financial Report (“2017
年度第三季度报告”), and the published announcements in the Chinese version shall prevail. The
complete published Chinese 2017 Quarter 3 Financial Report document may be obtained at
http://www.cninfo.com.
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
October 31st, 2017
