Hikvision 2023 Q1 ReportStock Exchange Code：002415 Abbreviation of Securities：HikvisionNo：2023-013
Hangzhou Hikvision Digital Technology Co., Ltd.
2023 1
st
Quarter ReportThe Company and all members of the Board of Directors guarantee that the information disclosed istrue, accurate and complete without false records, misleading statements or material omissions.Important Content Notes:
Whether the directors, supervisors and senior management have any objection to the content of thisquarterly report or cannot guarantee the truthfulness, accuracy and completeness of this quarterlyreport
□ Yes √ No
1. The Board of Directors, Board of Supervisors, directors, supervisors and senior management
guarantee that the information presented in this report is true, accurate and complete without falserecords, misleading statements or material omissions, and will undertake individual and joint legalliabilities.
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 (accountingsupervisor) hereby declare and warrant that the financial information in this report is true, accurateand complete.
3. Whether the 1
st
quarter report has been audited
□Yes√ No
Hikvision 2023 Q1 ReportI. 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
| 2023 Q1 | 2022 Q1 | YoY Change(%) between 2022 Q1 and 2023 Q1 | ||
| Before the adjustment | After the adjustment | After the adjustment | ||
| Revenue (RMB) | 16,201,189,412.53 | 16,521,549,351.36 | 16,521,549,351.36 | -1.94% |
| Net profits attributable to shareholders of the Company (RMB) | 1,811,255,388.03 | 2,284,174,955.78 | 2,283,755,331.73 | -20.69% |
| Net profits attributable to shareholders of the Company excluding non-recurring gains and losses (RMB) | 1,554,094,332.67 | 2,210,077,663.70 | 2,209,658,039.65 | -29.67% |
| Net cash flows from operating activities (RMB) | -3,285,523,507.64 | -3,904,933,407.63 | -3,904,933,407.63 | 15.86% |
| Basic earnings per share (RMB/share) | 0.196 | 0.247 | 0.247 | -20.65% |
| Diluted earnings per share (RMB/share) | 0.196 | 0.246 | 0.246 | -20.33% |
| Weighted average Return on Equity (ROE) | 2.61% | 3.53% | 3.53% | -0.92% |
| On March 31, 2023 | On December 31, 2022 | Change(%) between December 31, 2022 and March 31, 2023 | ||
| Before the adjustment | After the adjustment | After the adjustment | ||
| Total assets (RMB) | 117,177,724,893.23 | 119,233,282,761.47 | 119,235,059,709.22 | -1.73% |
| Owner’s equity attributable to shareholders of the Company (RMB) | 70,417,978,013.39 | 68,389,154,548.76 | 68,387,715,474.08 | 2.97% |
Hikvision 2023 Q1 ReportReasons for changes in accounting policies and situations of correction of accounting errorsNote:
The Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for Business Enterprises (the"Interpretation No. 16") on November 30, 2022. It clarifies that the "exemption of initial recognition shall not applyto the deferred income tax relating to assets and liabilities arising from a single transaction" and this provision iseffective as of January 1, 2023. Where the lease liabilities and right-of-use assets recognized at the beginning of theearliest period of the financial statement presentation in which this provision was first implemented, as well as theestimated liabilities related to abandonment obligations and corresponding related assets recognized for individualtransactions to which this provision applied generate taxable and deductible temporary differences, the Group willmake a cumulative-effect adjustment to the opening retained earnings and other related financial statement items inthe earliest period presented in the financial statements in accordance with this provision and the ASBE No. 18 -Income Taxes.
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) | 9,363,932,789 |
Fully diluted earnings per share calculated using the latest share capital:
| Fully diluted earnings per share (RMB/share) calculated with the latest share capital | 0.193 |
2. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
| Item | January 1, 2023–March 31, 2023 |
| Profit or loss from disposal of non-current assets (including the write-off for the impairment provision of assets) | -2,348,351.22 |
| 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 policies, and those that are continuously enjoyed in accordance with a certain standard fixed or quantitative basis) | 153,610,863.51 |
| Gain or loss on a business combination achieved through multiple transactions and not under common control | 116,433,610.45 |
| 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 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. | 5,014,019.28 |
| Item | January 1, 2023–March 31, 2023 |
| Other non-operating income and expenditures except the items mentioned above | 29,681,868.27 |
| Less: Impact of income tax | 28,820,065.58 |
| Impact of the minority interests (after tax) | 16,410,889.35 |
| Total | 257,161,055.36 |
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 <Explanatory Announcement No. 1on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses>as recurring gain/loss item.
□ Applicable √ Inapplicable
The Company does not classify any non-recurring gain/loss item mentioned in the <Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains andLosses> as recurring gain/loss item.
3. Information and explanation about variations in key accounting data and financial indicators
√Applicable □Inapplicable
3.1 Explanation for variations in balance sheet items
| Item | Balance on March 31, 2023 (RMB) | Balance on December 31, 2022 (RMB) | YoY change (%) | Note of Changes |
| Held-for-trading financial assets | - | 12,807,438.36 | -100.00% | There were no undelivered forward foreign exchange contracts at the end of the reporting period |
| Held-for-trading financial liabilities | - | 68,299,685.57 | ||
| Goodwill | 341,424,119.74 | 217,386,531.28 | 57.06% | Goodwill and deferred tax liabilities arising from combinations not involving enterprises under common control |
| Deferred tax liabilities | 157,219,349.48 | 119,314,055.82 | 31.77% | |
| Payroll payable | 2,724,869,742.25 | 4,837,302,455.95 | -43.67% | 2022 year-end bonus were paid in this quarter |
| Long-term borrowings | 10,674,015,567.53 | 7,522,315,341.60 | 37.19% | Increase in demands for |
| Item | Balance on March 31, 2023 (RMB) | Balance on December 31, 2022 (RMB) | YoY change (%) | Note of Changes |
| Non-current liabilities due within one year | 837,214,836.18 | 868,197,272.46 | long-term working capital | |
| Share capital | 9,363,932,789.00 | 9,430,920,624.00 | -0.71% | Completion of repurchase and cancellation of outstanding shares |
| Capital reserves | 8,361,756,601.50 | 10,141,153,435.32 | -17.55% | |
| Treasury shares | 3,272,148,424.89 | 5,316,033,650.24 | -38.45% |
3.2 Explanation for variations in income statement items
| Items | 2023 Q1 (RMB) | 2022 Q1 (RMB) | YoY Change (%) | Note of changes |
| Business taxes and surcharges | 162,501,664.68 | 103,960,428.47 | 56.31% | Increase in additional taxes caused by increase in the VAT credit |
| Financial expenses | -50,535,488.90 | 5,107,219.67 | -1089.49% | Foreign exchange gains increased |
| Investment income | 53,024,459.67 | 132,282,275.71 | -59.92% | Gains from investment in joint ventures and associated enterprises decreased, as well as trading gains from foreign exchange hedging business decreased |
| Gains/losses from changes in fair value | 76,962,398.56 | -36,969,562.42 | 308.18% | Gains from changes in fair value of foreign exchange hedging business increased |
| Asset impairment losses | -141,629,819.18 | -40,075,823.89 | -253.40% | Provision for inventory depreciation increased |
3.3 Explanation for variations in cash flow statement items
| Item | 2023 Q1 (RMB) | 2022 Q1 (RMB) | YoY Change (%) | Note of changes |
| Net cash flow from operating activities | -3,285,523,507.64 | -3,904,933,407.63 | 15.86% | Increase in sales collection |
| Net cash flows from investing activities | -758,788,857.48 | -795,128,733.12 | 4.57% | No significant change |
Net cash flows fromfinancing activities
| Net cash flows from financing activities | 2,031,442,402.22 | 4,247,971,748.82 | -52.18% | 2021 incentive restricted share subscriptions were received at the same period of the previous year |
Hikvision 2023 Q1 ReportII. Shareholder Information
1. Total number of common shareholders and number of 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 | 329,519 | Total number of preferred shareholders (if any) whose voting rights have been recovered at the end of the reporting period (if any) | 0 | |||
| Particulars about Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Share- holding percentage (%) | Total shares held at the period-end | The number of common shares held with trading restrictions | Pledged, marked or frozen | |
| Status | Amount | |||||
| China Electronics Technology HIK Group Co., Ltd. | Domestic state-owned corporation | 36.35% | 3,403,879,509 | - | Pledged | 50,000,000 |
| Gong Hongjia | Overseas individual | 10.28% | 962,504,814 | - | Pledged | 71,270,000 |
| Hangzhou Weixun Equity Investment Partnership (Limited Partnership) | Domestic non-state-owned corporation | 4.81% | 450,795,176 | - | Pledged | 30,600,000 |
| Shanghai Perseverance Asset Management Partnership (Limited Partnership) - Perseverance Adjacent Mountain 1 Yuanwang Fund | Other | 4.61% | 432,000,000 | - | - | - |
| CETC Investment Holdings Co., Ltd. | Domestic state-owned corporation | 2.48% | 232,307,903 | - | - | - |
| Hangzhou Pukang Equity Investment Partnership (Limited Partnership) | Domestic non-state-owned corporation | 1.95% | 182,510,174 | - | Pledged | 120,420,000 |
| The 52nd Research Institute at China Electronics Technology Group Corporation | Domestic state-owned corporation | 1.93% | 180,775,044 | - | - | - |
| Hu Yangzhong | Domestic individual | 1.66% | 155,246,477 | 116,434,858 | - | - |
| Central Huijin Investment Co., Ltd. | Domestic state-owned corporation | 0.69% | 64,700,691 | - | - | - |
| Hong Kong Securities Clearing Company Ltd.(HKSCC) | Overseas corporation | 0.51% | 47,971,720 | - | - | - |
| Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s) | ||||||
| Name of shareholder | Number of common shares without trading restrictions held at the period-end | Type of shares | |
| Type | Number | ||
| China Electronics Technology HIK Group Co., Ltd. | 3,403,879,509 | RMB ordinary shares | 3,403,879,509 |
| Gong Hongjia | 962,504,814 | RMB ordinary shares | 962,504,814 |
| Hangzhou Weixun Equity Investment Partnership (Limited Partnership) | 450,795,176 | RMB ordinary shares | 450,795,176 |
| Shanghai Perseverance Asset Management Partnership (Limited Partnership) - Perseverance Adjacent Mountain 1 Yuanwang Fund | 432,000,000 | RMB ordinary shares | 432,000,000 |
| CETC Investment Holdings Co., Ltd. | 232,307,903 | RMB ordinary shares | 232,307,903 |
| Hangzhou Pukang Equity Investment Partnership (Limited Partnership) | 182,510,174 | RMB ordinary shares | 182,510,174 |
| The 52nd Research Institute at China Electronics Technology Group Co., Ltd. | 180,775,044 | RMB ordinary shares | 180,775,044 |
| Central Huijin Investment Co., Ltd. | 64,700,691 | RMB ordinary shares | 64,700,691 |
| Hong Kong Securities Clearing Company Ltd.(HKSCC) | 47,971,720 | RMB ordinary shares | 47,971,720 |
| Shanghai Chongyang Strategic Investment Ltd. – Chongyang Strategic Intelligence Fund | 43,418,969 | RMB ordinary shares | 43,418,969 |
| Explanation on associated relationship and concerted actions among above shareholders | 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 Corporation. Ms. Chen Chunmei, limited partner of Hangzhou Pukang Equity Investment Partnership (Limited Partnership), is the spouse of Mr. Gong Hongjia, overseas individual shareholder of the Company. Hu Yangzhong, domestic individual, is 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 Administrative Measures for Acquisitions of Listed Companies. | ||
| Information on Top 10 shareholders of participating in margin trading and short selling business | Shanghai Chongyang Strategic Investment Ltd. – Chongyang Strategic Intelligence Fund, a shareholder, held 43,418,969 shares of the Company in a margin account. | ||
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable √ Inapplicable
Hikvision 2023 Q1 ReportIII. Significant Events
√Applicable □Inapplicable
1. Repurchase of the Company's Public Shares
On September 15, 2022 and October 10,
2022, the Company held the 13
h meeting of the 5
thsession of theBoard of Directors and the second extraordinary general meeting of shareholders in 2022 respectively, deliberatedand approved the Proposal on the Plan of Repurchase Part of the Company's Public Shares, approved the Companyusing its own fund to repurchase part of its RMB common shares (A shares) that have been issued domestically bymeans of centralized bidding through the trading system of the SZSE, the aggregate amount of repurchase fundsshall not exceed RMB2.5 billion (inclusive) and not less than RMB 2 billion (inclusive), the repurchase price shallnot exceed RMB40 per share (inclusive), the implementation period of the repurchase shall not exceed 12 monthsfrom the date of the general meeting of shareholders of the Company at which the proposal on the plan of repurchasepart of the Company's public shares is reviewed and approved, and the Company will make repurchase decisionsand implement them based on market conditions during the repurchase period. The shares repurchased by theCompany will be cancelled for reducing the registered capital according to law. For details, please refer to theAnnouncement on Resolutions of 13
th Meeting of the 5
thSession of the Board of Directors (Announcement No.:
2022-049), the Announcement on the Plan of Repurchase Part of the Company's Public Shares (Announcement No.:
2022-050), the Announcement on Resolutions of the Second Extraordinary General Meeting of Shareholders in2022 (Announcement No.: 2022-056), the Report on the Plan of Repurchase Part of the Company's Public Shares(Announcement No.: 2022-057) published by the Company on cninfo website (www.cninfo.com.cn) on September16, 2022 and October 11,
2022. On October 11,
2022, the Company first repurchased 6,820,968 shares of theCompany by means of centralized bidding through a dedicated securities account for the repurchase, accounting for
0.0723% of the Company's total share capital at that time. The highest transaction price was RMB29.65 per share,the lowest transaction price was RMB28.71 per share, and the total transaction amount was RMB199,981,024.67(excluding transaction fees). For details, please refer to the Announcement on the Initial Repurchase of theCompany's Shares (Announcement No.: 2022-059) published by the Company on cninfo website(www.cninfo.com.cn) on October 12,
2022. During the repurchase period, the Company disclosed the progress ofrepurchase as of the end of last month within the first three trading days each month based on the regulation. Fordetails, please refer to the Announcement on the Progress of Repurchase (Announcement No.: 2022-063)(Announcement No.: 2022-066) published by the Company on cninfo website (www.cninfo.com.cn) on November
Hikvision 2023 Q1 Report2, 2022, December 3, 2022, respectively. As of December 30, 2022, the repurchase of shares had been completed,and the actual repurchase date was between October 11, 2022 and December 30, 2022, meet the requirement onimplementation period of repurchase in repurchase plan. As of December 30, 2022, the Company used the dedicatedsecurities account for share repurchase to cumulatively repurchase shares with the total amount of 66,987,835 sharesby means of centralized bidding, accounting for 0.7103% of the Company's total share capital at that time(9,430,920,624 shares). The highest transaction price was RMB35.13 per share, the lowest transaction price wasRMB26.83 per share, and the total transaction amount was RMB2,043,476,488.53 (excluding transaction fees). Thesource of share-repurchase funding was from the Company's own fund, and the price of repurchase did not exceedthe upper limit of the price (RMB40 per share) specified in the repurchase plan. The repurchase complies withrelevant laws, regulations and rules from the disclosed repurchase plan. For details, please refer to theAnnouncement on the Progress and Result of Repurchase of the Company's Shares and Changes in Shares(Announcement No.: 2023-001) published by the Company on cninfo website (www.cninfo.com.cn) on January 4,
2023. On January 13, 2023, the Company had completed the cancellation procedures for the above shares at theShenzhen branch of China Securities Depository and Clearing Corporation Limited, with the total amount of66,987,835 shares, accounting for 0.7103% of the Company's total share capital before the cancellation(9,430,920,624 shares), and the number of cancelled shares is equal to the number of actual repurchased shares.After the completion of the repurchase and cancellation of shares, the Company's total share capital changes from9,430,920,624 shares to 9,363,932,789 shares. For details, please refer to the Announcement on the Completion ofthe Cancellation of the Company's Repurchased Shares and Changes in Shares (Announcement No.: 2023-002)published by the Company on cninfo website (www.cninfo.com.cn) on January 17, 2023.
2. Matters Relating to Steady Promotion of the Spin-off of HikRobot to be Listed on the SZSE ChiNext MarketOn March 7
th2023, Hangzhou Hikrobot Co., Ltd. (hereinafter referred to as "HikRobot") received Notice onAccepting the Application Documents for the Initial Public Offering of Shares and Listing on the SZSE ChiNextMarket of Hangzhou Hikrobot Co., Ltd. (SZSE Listing Review [2023] No. 252) issued by Shenzhen Stock Exchange,and SZSE considered that application documents were completed and decided to accept. For details, please refer tothe Announcement on the Application for the Initial Public Offering of Shares and Listing on the SZSE ChiNextMarket of Hangzhou Hikrobot Co., Ltd., a Subsidiary of the Company, is Accepted by the SZSE (AnnouncementNo.: 2023-008) published by the Company on cninfo website (www.cninfo.com.cn) on March 8,
2023.
3. Matters Relating to Capital Increase and Introduction of Strategic Investors for Wholly-Owned Subsidiary
Hikvision 2023 Q1 ReportShijiazhuang Sensortech On February 15, 2023, the Company held the 16
th
meeting of the 5
thsession of the Board of Directors, reviewedand approved the Proposal on Capital Increase and Introduction of Strategic Investors for Wholly-OwnedSubsidiary Shijiazhuang Sensortech Intelligent Technology Co., Ltd. (hereinafter referred to as "ShijiazhuangSensortech") and agreed to increase the registered capital of Shijiazhuang Sensortech by RMB2,398,000,000.Hikvision intended to increase the registered capital of Shijiazhuang Sensortech by RMB1,345,200,000 to hold noless than 56.0969% equity in the subsidiary. Meanwhile, Shijiazhuang Sensortech planned to introduce one or morestrategic investors via public listing with a total investment of RMB1,052,800,000 to obtain no more than 43.9031%equity. The final amount of capital increase and shareholding ratios will be subject to the results of the listingsubscription. For details, please refer to the Announcement on Capital Increase and Introduction of StrategicInvestors for Wholly-Owned Subsidiary Shijiazhuang Sensortech Intelligent Technology Co., Ltd. (AnnouncementNo.: 2023-005) published by the Company on cninfo website (www.cninfo.com.cn) on February 16,
2023.On February 24, 2023, the capital increase of Shijiazhuang Sensortech was listed on the China Beijing EquityExchange. Two potential investors were identified for the Shijiazhuang Sensortech Capital Increase Project at theend of the announcement period. They were Hangzhou Qianmo Qinghe Equity Investment Partnership (LimitedPartnership) (hereinafter referred to as "Qianmo Qinghe") and a consortium of two investors: Qin Yi (a naturalperson) and Wuhu Sensi Yingwo Investment Center (Limited Partnership) (hereinafter referred to as "SensiYingwo"). The Company signed the Capital Increase Agreement (hereinafter referred to as "The Agreement") withQianmo Qinghe, Sensi yingwo and Qin Yi on March 28, 2023. Hikvision intended to use equity to subscribe acapital increase of RMB1,345,200,000 and hold 56.0969% equity in Shijiazhuang Sensortech through an agreement.The strategic investors participated in the capital increase through public delisting on the China Beijing EquityExchange. They subscribed a capital increase of RMB1,052,800,000 to hold 43.9031% equity in ShijiazhuangSensortech. Upon completion of the capital increase, the registered capital of Shijiazhuang Sensortech will increasefrom RMB10,000 to RMB2,398,010,000. Hikvision will hold 56.0969% equity, maintaining a controlling interestin Shijiazhuang Sensortech and shall consolidate the financial statements of this subsidiary. For details, please referto the Announcement on Progress of Capital Increase and Introduction of Strategic Investors for Wholly-OwnedSubsidiary Shijiazhuang Sensortech Intelligent Technology Co., Ltd. (Announcement No.: 2023-009) published bythe Company on cninfo website (www.cninfo.com.cn) on March 29,
2023.
Related inquiries on important information disclosure website:
| Title of the temporary public announcement | Disclosure Date | Disclosure website of the temporary public announcement |
| Announcement on the Plan of Repurchase Part of the Company's Public Shares (Announcement No. 2022-050) | September 16, 2022 | www.cninfo.com.cn |
| Report on the Plan of Repurchase Part of the Company's Public Shares (Announcement No. 2022-057) | October 11, 2022 | www.cninfo.com.cn |
| Announcement on the Initial Repurchase of the Company's Shares (Announcement No. 2022-059) | October 12, 2022 | www.cninfo.com.cn |
| Announcement on the Progress of Repurchase (Announcement No. 2022-063, 2022-066) | November 2, 2022 December 3, 2022 | www.cninfo.com.cn |
| Announcement on the Progress and Result of Repurchase of the Company's Shares and Changes in Shares (Announcement No. 2023-001) | January 4, 2023 | www.cninfo.com.cn |
| Announcement on the Completion of the Cancellation of the Company's Repurchased Shares and Changes in Shares (Announcement No.: 2023-002) | January 17, 2023 | www.cninfo.com.cn |
| 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) | March 8, 2023 | www.cninfo.com.cn |
| Announcement on Capital Increase and Introduction of Strategic Investors for Wholly-Owned Subsidiary Shijiazhuang Sensortech Intelligent Technology Co., Ltd. (Announcement No. 2023-005) | February 16, 2023 | www.cninfo.com.cn |
| Announcement on Progress of Capital Increase and Introduction of Strategic Investors for Wholly-Owned Subsidiary Shijiazhuang Sensortech Intelligent Technology Co., Ltd. (Announcement No. 2023-009) | March 29, 2023 | www.cninfo.com.cn |
Hikvision 2023 Q1 ReportIV. Quarterly Financial Reports
1. Financial Statements
1.1 Consolidated Balance Sheet
Unit: RMB
| Item | March 31, 2023 | January 1, 2023 |
| Current Assets: | ||
| Cash and bank balances | 37,960,195,958.77 | 40,011,863,999.94 |
| Held-for-trading financial assets | 12,807,438.36 | |
| Notes receivable | 2,479,882,694.01 | 2,519,988,159.23 |
| Accounts receivable | 29,312,106,347.19 | 29,906,294,410.40 |
| Receivables for financing | 1,488,139,531.94 | 1,484,218,258.74 |
| Prepayments | 544,917,298.59 | 534,780,120.52 |
| Other receivables | 594,255,497.08 | 516,503,485.58 |
| Inventories | 18,875,216,845.18 | 18,998,222,978.81 |
| Contract assets | 2,065,108,385.47 | 2,118,223,370.98 |
| Non-current assets due within one year | 1,047,738,568.51 | 996,902,343.27 |
| Other current assets | 839,745,695.37 | 806,832,941.58 |
| Total Current Assets | 95,207,306,822.11 | 97,906,637,507.41 |
| Non-current Assets: | ||
| Long-term receivables | 542,461,879.65 | 540,647,965.30 |
| Long-term equity investment | 1,167,426,208.70 | 1,252,033,513.41 |
| Other non-current financial assets | 447,363,391.29 | 423,893,239.94 |
| Fixed assets | 9,996,705,843.27 | 8,539,842,630.68 |
| Construction in progress | 2,798,969,423.71 | 3,770,803,300.80 |
| Right-of-use assets | 552,199,419.39 | 574,478,326.31 |
| Intangible assets | 1,685,463,741.07 | 1,544,933,502.19 |
| Goodwill | 341,424,119.74 | 217,386,531.28 |
| Long-term deferred expenses | 175,523,118.72 | 177,277,742.41 |
| Deferred tax assets | 1,536,645,480.92 | 1,471,423,436.79 |
| Other non-current assets | 2,726,235,444.66 | 2,815,702,012.70 |
| Total Non-current Assets | 21,970,418,071.12 | 21,328,422,201.81 |
| Total Assets | 117,177,724,893.23 | 119,235,059,709.22 |
| Current Liabilities: | ||
| Short-term borrowings | 2,649,065,150.61 | 3,343,071,972.89 |
| Held-for-trading financial liabilities | 68,299,685.57 | |
| Notes payable | 1,276,078,763.67 | 1,207,756,963.94 |
| Accounts payable | 11,314,173,986.16 | 16,025,563,802.99 |
| Item | March 31, 2023 | January 1, 2023 |
| Contract Liabilities | 2,686,194,705.83 | 2,644,496,508.36 |
| Payroll payable | 2,724,869,742.25 | 4,837,302,455.95 |
| Taxes payable | 1,198,821,878.10 | 1,234,032,138.37 |
| Other payables | 3,170,403,650.06 | 3,203,308,686.31 |
| Non-current liabilities due within one year | 837,214,836.18 | 868,197,272.46 |
| Other current liabilities | 867,764,239.34 | 923,721,593.78 |
| Total Current Liabilities | 26,724,586,952.20 | 34,355,751,080.62 |
| Non-current Liabilities: | ||
| Long-term borrowings | 10,674,015,567.53 | 7,522,315,341.60 |
| Lease liabilities | 288,470,278.18 | 277,255,924.83 |
| Long-term payables | 6,224,573.02 | 7,569,934.67 |
| Provisions | 217,105,543.12 | 219,365,227.62 |
| Deferred income | 916,214,633.22 | 933,260,426.12 |
| Deferred tax liabilities | 157,219,349.48 | 119,314,055.82 |
| Other non-current liabilities | 2,833,280,331.92 | 2,831,108,087.59 |
| Total Non-current Liabilities | 15,092,530,276.47 | 11,910,188,998.25 |
| Total Liabilities | 41,817,117,228.67 | 46,265,940,078.87 |
| Owners’ Equity | ||
| Share capital | 9,363,932,789.00 | 9,430,920,624.00 |
| Capital reserves | 8,361,756,601.50 | 10,141,153,435.32 |
| Less: Treasury shares | 3,272,148,424.89 | 5,316,033,650.24 |
| Other comprehensive income | (21,080,564.06) | (42,587,158.81) |
| Surplus reserves | 4,715,460,312.00 | 4,715,460,312.00 |
| Retained earnings | 51,270,057,299.84 | 49,458,801,911.81 |
| Total Owners' Equity Attributable to Owner of the Company | 70,417,978,013.39 | 68,387,715,474.08 |
| Minority equity | 4,942,629,651.17 | 4,581,404,156.27 |
| Total Owners' Equity | 75,360,607,664.56 | 72,969,119,630.35 |
| Total Liabilities and Owners' Equity | 117,177,724,893.23 | 119,235,059,709.22 |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
1.2 Consolidated Income Statement
Unit: RMB
| Item | 2023 Q1 | 2022 Q1 |
| I. Total Revenue | 16,201,189,412.53 | 16,521,549,351.36 |
| Including: Revenue | 16,201,189,412.53 | 16,521,549,351.36 |
| II. Total Operating Costs | 14,248,163,903.28 | 13,978,401,580.35 |
| Including: Cost of sales and services | 8,883,871,635.31 | 9,297,971,644.50 |
| Business taxes and surcharges | 162,501,664.68 | 103,960,428.47 |
| Selling expenses | 2,185,218,373.11 | 1,974,041,727.28 |
| Administrative expenses | 602,999,255.69 | 529,341,844.09 |
| Research and Development (R&D) expenses | 2,464,108,463.39 | 2,067,978,716.34 |
| Financial expenses | (50,535,488.90) | 5,107,219.67 |
| Including：Interest expenses | 90,784,879.24 | 60,958,191.49 |
| Interest income | 230,994,108.15 | 190,359,285.26 |
| Add: Other Income | 431,143,072.40 | 345,650,804.89 |
| Investment income (loss"-") | 53,024,459.67 | 132,282,275.71 |
| Including: Investment gains in associated enterprise and joint-venture enterprise | 8,539,228.50 | 68,225,299.63 |
| Gains (loss "-") from changes in fair values | 76,962,398.56 | (36,969,562.42) |
| Credit impairment losses ("-") | (110,068,759.04) | (90,841,201.58) |
| Impairment losses ("-") of assets | (141,629,819.18) | (40,075,823.89) |
| Asset disposal income (loss"-") | (2,263,571.88) | (5,806,721.09) |
| III. Operating Profit (loss"-") | 2,260,193,289.78 | 2,847,387,542.63 |
| Add: Non-operating income | 32,861,901.41 | 20,516,223.04 |
| Less: Non-operating expenses | 3,222,199.80 | 2,065,880.39 |
| IV. Total Profit (loss"-") | 2,289,832,991.39 | 2,865,837,885.28 |
| Less: Income tax expenses | 341,609,181.69 | 450,333,185.85 |
| V. Net Profit (loss"-") | 1,948,223,809.70 | 2,415,504,699.43 |
| 5.1 Classification by operation continuity | ||
| (a) Net profit (loss) on continuous operation | 1,948,223,809.70 | 2,415,504,699.43 |
| (b) Net profit (loss) on terminated operation | ||
| 5.2 Classification by attribution of ownership | ||
| (a) Net profit attributable to owners of parent company | 1,811,255,388.03 | 2,283,755,331.73 |
| (b) Profit or loss attributable to minority shareholders | 136,968,421.67 | 131,749,367.70 |
| VI. Other Comprehensive Income, Net of Income Tax | 54,430,037.77 | (12,563,136.93) |
| Item | 2023 Q1 | 2022 Q1 |
| Other comprehensive income attributable to owners of the Company, net of tax | 21,506,594.75 | (19,876,339.66) |
| (I) Items that will not be reclassified subsequently to profit or loss | ||
| 1. Re-measurement of changes in defined benefit plans | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Changes in fair value of other equity instrument investments | ||
| 4. Changes in the fair value of the Company's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income to be reclassified to profit or loss in subsequent periods | 21,506,594.75 | (19,876,339.66) |
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedge reserve | ||
| 6. Exchange differences arising on conversion of financial statements denominated in foreign currencies | 21,506,594.75 | (19,876,339.66) |
| 7. Others | ||
| Other comprehensive income attributable to minority interests, net of tax | 32,923,443.02 | 7,313,202.73 |
| VII. Total Comprehensive Income | 2,002,653,847.47 | 2,402,941,562.50 |
| Total comprehensive income attributable to owners of the parent company | 1,832,761,982.78 | 2,263,878,992.07 |
| Total comprehensive income attributable to minority shareholders | 169,891,864.69 | 139,062,570.43 |
| VIII. Earnings per Share | ||
| (I) Basic earnings per share | 0.196 | 0.247 |
| (II) Diluted earnings per share | 0.196 | 0.246 |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
1.3 Consolidated Cash Flow Statement
Unit: RMB
| Item | 2023 Q1 | 2022 Q1 |
| I. Cash Flows from Operating Activities: | ||
| Cash received from sale of goods or rendering of services | 18,869,426,242.58 | 17,661,390,678.54 |
| Receipts of tax refunds | 845,422,057.10 | 742,166,152.62 |
| Other cash receipts relating to operating activities | 549,990,821.05 | 328,574,664.10 |
| Sub-total of cash inflows from operating activities | 20,264,839,120.73 | 18,732,131,495.26 |
| Cash payments for goods purchased and services received | 14,493,826,723.21 | 15,519,789,720.06 |
| Cash paid to and on behalf of employees | 6,122,808,771.33 | 5,377,995,779.80 |
| Payments of various types of taxes | 1,425,619,771.90 | 795,152,157.07 |
| Other cash payments relating to operating activities | 1,508,107,361.93 | 944,127,245.96 |
| Sub-total of cash outflows from operating activities | 23,550,362,628.37 | 22,637,064,902.89 |
| Net Cash Flows from Operating Activities | (3,285,523,507.64) | (3,904,933,407.63) |
| II. Cash Flows from Investing Activities: | ||
| Cash receipts from recovery of investments | 1,758,917,961.77 | 1,518,117,095.20 |
| Cash receipts from investment income | 2,013,946.91 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 2,023,878.10 | 7,178,824.87 |
| Other cash receipts relating to investing activities | 12,429,300.57 | 16,969,668.23 |
| Sub-total of cash inflows from investing activities | 1,773,371,140.44 | 1,544,279,535.21 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 657,301,005.09 | 910,928,512.01 |
| Cash paid to acquire investments | 1,830,866,341.05 | 1,428,479,756.32 |
| Net Cash paid for obtaining subsidiaries and other business units | 43,992,651.78 | |
| Sub-total of cash outflows from investing activities | 2,532,159,997.92 | 2,339,408,268.33 |
| Net Cash Flows from Investing Activities | (758,788,857.48) | (795,128,733.12) |
| III. Cash Flows from financing Activities: | ||
| Cash receipts from capital contributions | 1,020,000.00 | 2,893,831,394.55 |
| Including: cash receipts from capital contributions from minority owners of subsidiaries | 1,020,000.00 | |
| Cash receipts from borrowings | 3,677,681,322.07 | 1,537,700,961.53 |
| Sub-total of cash inflows from financing activities | 3,678,701,322.07 | 4,431,532,356.08 |
| Cash repayments of borrowings | 1,509,838,609.44 | 70,362,288.03 |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 77,014,997.47 | 57,131,627.12 |
| Other cash payments relating to financing activities | 60,405,312.94 | 56,066,692.11 |
| Sub-total of cash outflows from financing activities | 1,647,258,919.85 | 183,560,607.26 |
| Item | 2023 Q1 | 2022 Q1 |
| Net Cash Flows from Financing Activities | 2,031,442,402.22 | 4,247,971,748.82 |
| IV. Effect of Foreign Exchange rate changes on Cash and Cash Equivalents | (27,970,602.35) | (34,758,212.24) |
| V. Net increase in Cash and Cash Equivalents | (2,040,840,565.25) | (486,848,604.17) |
| 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 | 37,774,549,949.32 | 34,117,095,825.03 |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
2. Audit Report
Whether audit has been performed on this 2023 1
stQuarter Report
□ Yes √ No
The Company’s 2023 1
st
Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.Board of DirectorsApril 15, 2023
Note:
This document is a translated version of the Chinese version 2023 1
st
Quarter Report (“2023年第一季度报告”),and the published announcements in the Chinese version shall prevail. The complete published Chinese 2023 1
st
Quarter Report may be obtained at www.cninfo.com.cn.