海康威视:2021年第三季度报告（英文版）

Hikvision 2021 Q3 Report
Stock Exchange Code：002415 Abbreviation of Securities：Hikvision
No：2021-063
Hangzhou Hikvision Digital Technology Co. Ltd.
2021 3rd Quarter Report
The Company and all members of the Board of Directors guarantee that the information
disclosed is true accurate and complete without false records misleading statements
or material omissions.Important Content Notes:
1. The Board of Directors Board of Supervisors directors supervisors and senior
management of Hangzhou Hikvision Digital Technology Co. Ltd. (hereinafter
referred to as the “Company”) hereby guarantee that the information presented in
this report shall be together be wholly liable for the truthfulness accuracy and
completeness of its contents and free of any false records misleading statements or
material omissions and will undertake individual and joint legal liabilities.
2. Chen Zongnian the Company's legal representative Jin Yan the person in charge
of the accounting work and Zhan Junhua the person in charge of accounting
institution (accounting supervisor) hereby declare and warrant that the financial
information in this report is authentic accurate and complete.
3. Whether the 3rd quarter report has been audited
□Yes√ NoHikvision 2021 Q3 Report
I. Key Financial Data
1. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of the previous accounting data
□Yes√ No
YoY Change(%) between 2021 Q3 and YoY Change(%) between 2021
2021 Q3 2021 Q1~Q3
2020 Q3 Q1~Q3 and 2020 Q1~Q3
Operating income (RMB) 21727169122.78 22.41% 55629267490.88 32.38%
Net profits attributable to shareholders of
4484216504.7217.54%10965641158.1129.94%
the Company (RMB)
Net profits attributable to shareholders of
the Company excluding non-recurring gains 4472421937.46 25.06% 10693898565.44 33.01%
and losses (RMB)
Net cash flows from operating activities
————3931930902.23-28.96%
(RMB)
Basic earnings per share (RMB/share) 0.479 18.27% 1.179 29.70%
Diluted earnings per share (RMB/share) 0.479 18.27% 1.178 29.59%
Weighted average Return on Equity (ROE) 8.11% -0.23% 20.16% 2.04%
Change(%) between December 31st 2020 and September 30th
On September 30th 2021 On December 31st 2020
2021
Total assets (RMB) 96268052568.60 88701682384.20 8.53%
Owner’s equity attributable to shareholders
57531112764.1053794311162.056.95%
of the Company (RMB)Hikvision 2021 Q3 Report
The total share capital of the Company as of the previous trading day of the financial report disclosure:
The total share capital of the Company as of the previous trading day of the financial report disclosure
9335806114
(share)
Fully diluted earnings per share calculated using the latest share capital:
Fully diluted earnings per share (RMB/share) calculated with the latest share capital 1.1746
2. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
Item Amount occurred in the
January 1st 2021–
current reporting period
September 30th 2021
(2021 Q3)
Profit or loss from disposal of non-current assets (including the
4846203.813041161.64
write-off for the impairment provision of assets)
Government subsidies included in the current profit and loss
(except for government subsidies that are closely related to the
Company's regular business operations comply with national 84531711.49 308873090.93
policies and those that are continuously enjoyed in accordance
with a certain standard fixed or quantitative basis)
Profits and losses attributed to change in fair value for held-for-
trading financial assets and held-for-trading financial liabilities;
and investment income from disposal of held-for-trading financial
3972241.8249910473.28
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.Other non-operating income and expenditures except the items
-34812593.47-6266399.83
mentioned above
Less: Impact of income tax 15675808.43 28165315.45
Impact of the minority interests (after tax) 31067187.96 55650417.90
Total 11794567.26 271742592.67
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ Inapplicable
The Company does not have other specific conditions of profit and loss items that meet the definition of non-
recurring profit and loss.Explanations on classifying any non-recurring gain/loss item mentioned in the
as recurring gain/loss item.Hikvision 2021 Q3 Report
□ Applicable √ Inapplicable
The Company does not classify any non-recurring gain/loss item mentioned in the  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
Balance on Balance on YoY
Item September 30th 2021 December 31st 2020 change Note of Changes
(RMB) (RMB) (%)
Receivables for
1290351491.78 1959601195.25 -34.15% Decrease in note settlement
financing
Prepayments 643627193.21 296334689.86 117.20% Expansion of production and sales scale
leading to increase in procurement and
Inventories 19053058705.00 11477906040.70 66.00%
stocking-up
Other current assets 1146354009.21 497914506.64 130.23% Increase in deductible VAT input
Increase in construction investments on
Construction in
2146413104.92 1425235193.72 50.60% Science and Technology Parks in various
progress
locations
Impact of the implementation of the new
Right-of-use assets 443444783.37 - 100.00%
lease standard in 2021
Changes in the scope of consolidated
Goodwill 380499743.04 274203665.20 38.77%
statements
Other non-current Increase in prepayment for land purchase
980502480.84721511156.0835.90%
assets for production base construction
Notes payable 640159568.25 1036920229.85 -38.26% Decrease in note settlement
Increase in staff compensation and
Payroll payable 3815796800.58 2877786430.71 32.59%
benefits
Increase in endorsed unexpired notes and
Other payables 2589988357.74 1525053355.95 69.83%
unpaid dividends payable
Long-term payables 9260090.93 39595459.35 -76.61% Impact of the implementation of the new
Lease liabilities 208347700.38 - 100.00% lease standard in 2021
Increase in government subsidies related
Deferred income 273891749.60 190878987.69 43.49%
to assets
Minority equity 1515431627.92 685432238.49 121.09% Increase in profits of holding subsidiariesHikvision 2021 Q3 Report
3.2 Explanation for variations in income statement items
YoY
2021 Q1 ~ 2021 Q3 2020 Q1 ~ 2020 Q3
Items Change Note of changes
(RMB) (RMB)
(%)
Increase in market demand and
Total operating income 55629267490.88 42021194889.62 32.38%
expansion of sales
Total operating costs 29854226905.32 21970833611.78 35.88% Increase with sales revenue growth
Business taxes and
429088237.90 284043463.58 51.06% Sales growth impact
surcharges
Increase in foreign exchange gains and
Financial expenses -218286014.68 154708009.70 -241.10%
interest income
Increase in investment income from
Investment Income 219922536.36 124741116.75 76.30%
foreign exchange hedging business
Decrease in gains from changes in fair
Gains/losses from
-46332817.33 40458673.51 -214.52% value of other non-current financial
changes in fair value
assets
Credit impairment
-440543687.06 -209108587.37 -110.68% Increase in provision for bad debts
losses
Non-operating 50 million RMB donation to Henan
72515784.2812888908.91462.62%
expenses disaster
Profit or loss
attributable to minority 531243785.60 138246240.73 284.27% Increase in profits of holding subsidiaries
shareholders
3.3 Explanation for variations in cash flow statement items
2021 Q1 ~ 2021 Q3 2020 Q1 ~ 2020 Q3 YoY Change
Item Note of changes
(RMB) (RMB) (%)
Net cash flows from Net borrowing inflow decreased
-8033456844.34-3556440059.57-125.88%
financing activities during the current reporting periodHikvision 2021 Q3 Report
II. Shareholder Information
1. Number of common shareholders and preferred shareholders with resumed voting rights and information about top 10 shareholders
Unit: Share
Total number of common shareholders at the end of the reporting Total number of preferred shareholders (if any) whose voting rights have been
2654030
period recovered at the end of the reporting period (if any)
Particulars about top 10 shareholders
The number of Pledged marked or frozen
Share- common
Total shares held at
Name of shareholder Nature of shareholder holding percentage shares held
the period-end
(%) with trading Status Amount
restrictions
Domestic State-
China Electronics Technology HIK Group Co. Ltd. 3632897256 38.91% - Pledged 50000000
owned corporation
Gong Hongjia Overseas individual 962504814 10.31% - Pledged 108100000
General domestic
Xinjiang Weixun Investment Management Limited Partnership 450795176 4.83% - Pledged 17810000
corporation
Funds wealth
Shanghai Gaoyi Asset Management Partnership (Limited Partnership) -
management products 215000000 2.30% - - -
Gaoyi Adjacent Mountain 1 Yuanwang Fund
etc.General domestic
Xinjiang Pukang Investment Limited Partnership 182510174 1.95% - Pledged 75880000
corporation
The 52nd Research Institute at China Electronics Technology Group Domestic State-
1807750441.94%---
Corporation owned corporation
Hu Yangzhong Domestic Individual 155246477 1.66% 136639858 - -
Funds wealth
Bank of China Co. Ltd. - Efunds Blue Chip Select Hybrid Securities
management products 124000000 1.33% - - -
Investment Fund
etc.Domestic State-
Shenwan Hongyuan Securities Company Limited 90640562 0.97% - - -
owned corporation
Hong Kong Securities Clearing Company Ltd.(HKSCC) Overseas corporation 76827419 0.82% - - -Hikvision 2021 Q3 Report
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
Type of shares
Number of common shares without trading
Name of shareholder
restrictions held at the period-end Type Number
China Electronics Technology HIK Group Co. Ltd. 3632897256 RMB ordinary shares 3632897256
Gong Hongjia 962504814 RMB ordinary shares 962504814
Xinjiang Weixun Investment Management Limited Partnership 450795176 RMB ordinary shares 450795176
Shanghai Gaoyi Asset Management Partnership (Limited Partnership) -
215000000 RMB ordinary shares 215000000
Gaoyi Adjacent Mountain 1 Yuanwang Fund
Xinjiang Pukang Investment Limited Partnership 182510174 RMB ordinary shares 182510174
The 52nd Research Institute at China Electronics Technology Group
180775044 RMB ordinary shares 180775044
Co. Ltd.Bank of China Co. Ltd. - Efunds Blue Chip Select Hybrid Securities
124000000 RMB ordinary shares 124000000
Investment Fund
Shenwan Hongyuan Securities Company Limited 90640562 RMB ordinary shares 90640562
Hong Kong Securities Clearing Company Ltd.(HKSCC) 76827419 RMB ordinary shares 76827419
Central Huijin Investment Ltd. 65818800 RMB ordinary shares 65818800
China Electronics Technology HIK Group Co. Ltd. and The 52nd Research Institute at China Electronics Technology
Group are all subject to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei limited
partner of Xinjiang Pukang Investment Limited Partnership is the spouse of Mr. Gong Hongjia overseas individual
Explanation on associated relationship and concerted actions among shareholder of the Company. Hu Yangzhong domestic individual is holding shares in both Xinjiang Weixun
above shareholders Investment Management Limited Partnership and Xinjiang Pukang Investment Limited Partnership.Except for these the Company does not know whether the other shareholders are related parties or whether they are
acting-in-concert parties in accordance with the Measures for Management of the Disclosure of the Shareholding
Changes of Shareholders of the Listed Company.Hikvision 2021 Q3 Report
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable √ InapplicableHikvision 2021 Q3 Report
III. Significant Events
√Applicable □Inapplicable
On January 8th 2021 the Proposal on the Spin-off of the Subsidiary Hangzhou EZVIZ Network Co. Ltd. to be
Listed on the Science and Technology Innovation Board (SSE STAR) and other related proposals were deliberated
and adopted by the 21st Meeting of the fourth session of the Board of Directors and the 18th Meeting of the fourth
session of the Board of Supervisors of the Company. On June 23rd 2021 the Proposal on the Overall Restructuring
of the Company’s Holding Subsidiary Hangzhou EZVIZ Network Co. Ltd. as Limited Liability Company by Shares
was deliberated and adopted by the 3rd Meeting of the Strategy Committee in 2021 of the fifth session of the Board
of Directors of the Company. On June 24th 2021 EZVIZ Network as a whole was restructured and changed to a
limited liability company by shares. On July 2nd 2021 Zhejiang Securities Regulatory Bureau of China Securities
Regulatory Commission accepted the application filed by EZVIZ Network for initial public offering of A-shares
and pre-listing counseling for listing on the Science and Technology Innovation Board. On August 10th 2021 the
fourth meeting of the fifth board of directors of the Company and the fourth meeting of the fifth board of supervisors
reviewed and approved the Proposal (Revised Draft) on the Spin-off of the Subsidiary Hangzhou EZVIZ Network
Co. Ltd. to be listed on the Science and Technology Innovation Board (SSE STAR) and other related proposals. On
September 27th 2021 the Company's 2021 second extraordinary general meeting of shareholders reviewed and
approved the Proposal (Revised Draft) on the Spin-off of the Subsidiary Hangzhou EZVIZ Network Co. Ltd. to be
listed on the Science and Technology Innovation Board (SSE STAR) and other related proposals.On July 16th 2021 the Company received a notice from the Hangzhou Haikang Intelligent Industrial Equity
Investment Fund Partnership (L.P.) (hereinafter referred to as "Haikang Intelligent Fund") that the Company
participated in the establishment. After the unanimous decision of all partners the limited partners CETHIK Group
Co. Ltd. (hereinafter referred to as "CETHIK") transferred its RMB one million equity share of Haikang Intelligent
Fund to CETHIK (Hangzhou) Equity Investment Management Co. Ltd. (hereinafter referred to as "CETHIK Equity
Investment"). After the completion of the transfer CETHIK Equity Investment will become the general partner of
Haikang Intelligent Fund holding 0.10% of the equity of Haikang Intelligent Fund; the original general partner
CETC Fund Management Co. Ltd. will withdraw from Haikang Intelligent Fund; the total capital contribution
subscribed by Haikang Intelligent Fund has become RMB one billion. All partners re-signed the Hangzhou Haikang
Intelligent Industry Equity Investment Fund Partnership (Limited Partnership) Partnership Agreement and theHikvision 2021 Q3 Report
Supplementary Agreement on July 16th 2021. Haikang Intelligent Fund completed the industrial and commercial
change registration on July 16th 2021 completed the private equity investment fund change filing procedures on
August 10th 2021 and obtained the Private Investment Fund Filing Certificate.On July 23rd 2021 the third meeting of the fifth board of directors of the Company deliberated and approved
the Proposal on External Donations to Support Emergency Rescue and Disaster Relief agreeing to donate RMB 50
million to the Zhengzhou Red Cross and authorizing the Company’s management team to organize the
implementation of donations according to the actual situation. The above donation was completed on July 23rd 2021.On August 10th 2021 the fourth meeting of the Company's fifth board of directors reviewed and approved the
Proposal on the Investment and Construction of the EZVIZ Intelligent Manufacturing (Chongqing) Base Project by
the Holding Subsidiary and agreed that Hangzhou EZVIZ Network Co. Ltd. (hereinafter referred to as "EZVIZ
Network") an innovative business and holding subsidiary of the Company will invest RMB 1.85 billion with self-
raised funds to build the EZVIZ Intelligent Manufacturing (Chongqing) Base Project (hereinafter referred to as the
"EZVIZ Chongqing Project" ). Chongqing EZVIZ Electronics Co. Ltd. (hereinafter referred to as "Chongqing
EZVIZ Electronics") a wholly-owned subsidiary of EZVIZ Networks is the undertaking company of the above
project. On August 23rd 2021 the fourth meeting of the strategy committee of the fifth board of directors of the
Company in 2021 deliberated and approved the Proposal on New Investment in the EZVIZ Intelligent Manufacturing
(Chongqing) Base Project by the Company’s Holding Subsidiary and agreed EZVIZ Network to invest RMB 194
million on new process equipment for EZVIZ Chongqing Base Project. On September 17th 2021 Chongqing EZVIZ
Electronics won the right to use the state-owned construction land of the project site for RMB 193.98 million. On
September 24th 2021 Chongqing EZVIZ Electronics and Chongqing Dadukou District Planning and Natural
Resources Bureau signed the Grant Contract of the State-owned Construction Land Use Right.Related inquiries on important information disclosure website:
Disclosure website of the temporary public
Title of the temporary public announcement Disclosure Date
announcement
Proposal on the Spin-off of the Subsidiary Hangzhou EZVIZ
Network Co. Ltd. to Be Listed on the SSE STAR (Sci-Tech January 9th 2021 www.cninfo.com.cn
Innovation Board) Market
Announcement on the Change of Partners of Industrial
Investment Funds that the Company Participated in the July 19th 2021 www.cninfo.com.cn
Establishment (Announcement No. 2021-043)
Announcement on External Donations to Support Emergency July 24th 2021 www.cninfo.com.cnHikvision 2021 Q3 Report
Disclosure website of the temporary public
Title of the temporary public announcement Disclosure Date
announcement
Rescue and Disaster Relief (Announcement No. 2021-047)
Proposal on the Spin-off of the Subsidiary Hangzhou EZVIZ
Network Co. Ltd. to Be Listed on the SSE STAR (Sci-Tech August 11th 2021 www.cninfo.com.cn
Innovation Board) Market (Revised Draft)
Announcement on the Completion of the Filing of Changes to
the Industrial Investment Funds that the Company Involved August 11th 2021 www.cninfo.com.cn
in the Establishment (Announcement No. 2021-054)
Announcement on the Investment and Construction of EZVIZ
Intelligent Manufacturing (Chongqing) Base Project by the
August 11th 2021 www.cninfo.com.cn
Company’s Holding Subsidiary (Announcement No. 2021-
052)
Progress Announcement Regarding to the Investment and
Construction of the EZVIZ Intelligent Manufacturing
September 25th 2021 www.cninfo.com.cn
(Chongqing) Base Project by the Company’s Holding
Subsidiary (Announcement No.: 2021-057)
Announcement on Resolutions of the Second Extraordinary
General Meeting of Shareholders in 2021 (Announcement September 28th 2021 www.cninfo.com.cn
No. 2021-058)Hikvision 2021 Q3 Report
IV. Quarterly Financial Reports
1. Financial Statements
1.1 Consolidated Balance Sheet
Unit: RMB
Item September 30th 2021 December 31st 2020
Current Assets:
Cash and bank balances 28617217549.23 35459729108.27
Held-for-trading financial assets 6944488.57 22679846.77
Notes receivable 1215757560.41 1303252705.19
Accounts receivable 26163648777.96 21979380716.86
Receivables for financing 1290351491.78 1959601195.25
Prepayments 643627193.21 296334689.86
Other receivables 466541993.02 519143350.82
Inventories 19053058705.00 11477906040.70
Contract assets 282869179.03 245754510.98
Non-current assets due within one year 1288034666.89 1001208813.83
Other current assets 1146354009.21 497914506.64
Total Current Assets 80174405614.31 74762905485.17
Non-current Assets:
Long-term receivables 2249306702.58 2105570004.53
Long-term equity investment 856162709.05 864026710.23
Other non-current financial assets 456728888.16 491939067.27
Fixed assets 6374406179.41 5876007536.60
Construction in progress 2146413104.92 1425235193.72
Right-of-use assets 443444783.37
Intangible assets 1217889923.50 1251317923.69
Goodwill 380499743.04 274203665.20
Long-term deferred expenses 98316714.21 108584686.85
Deferred tax assets 889975725.21 820380954.86
Other non-current assets 980502480.84 721511156.08
Total Non-current Assets 16093646954.29 13938776899.03
Total Assets 96268052568.60 88701682384.20
Current Liabilities:
Short-term borrowings 3351562436.69 3999246634.59
Held-for-trading financial liabilities 2809255.34 7405771.15
Notes payable 640159568.25 1036920229.85
Accounts payable 14239686714.74 13593884790.19Hikvision 2021 Q3 Report
Item September 30th 2021 December 31st 2020
Contract Liabilities 2611871266.68 2161166671.26
Payroll payable 3815796800.58 2877786430.71
Taxes payable 2216512568.99 1770057908.62
Other payables 2589988357.74 1525053355.95
Non-current liabilities due within one year 3619948261.12 3507680339.78
Other current liabilities 761735804.63 745711579.57
Total Current Liabilities 33850071034.76 31224913711.67
Non-current Liabilities:
Long-term borrowings 2128684836.74 1961167761.30
Lease liabilities 208347700.38
Long-term payables 9260090.93 39595459.35
Provisions 156164932.93 151443871.02
Deferred income 273891749.60 190878987.69
Deferred tax liabilities 83493469.72 92979823.89
Other non-current liabilities 511594361.52 560959368.74
Total non-current liabilities 3371437141.82 2997025271.99
Total liabilities 37221508176.58 34221938983.66
Owners’ Equity
Share capital 9335806114.00 9343417190.00
Capital reserves 5336556456.26 5178777462.09
Less: Treasury shares 1023188723.04 1121918737.47
Other comprehensive income (104674008.70) (84993926.94)
Surplus reserves 4672505348.00 4672505348.00
Retained earnings 39314107577.58 35806523826.37
Total owners' equity attributable to owner of the
57531112764.1053794311162.05
Company
Minority equity 1515431627.92 685432238.49
Total owners' equity 59046544392.02 54479743400.54
Total liabilities and owners' equity 96268052568.60 88701682384.20
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan JunhuaHikvision 2021 Q3 Report
1.2 Consolidated Income Statement from the beginning of the year to the end of the reporting
period
Unit: RMB
Item 2021 Q1~Q3 2020 Q1~Q3
I. Total operating income 55629267490.88 42021194889.62
II．Total operating costs 44117391608.90 33719184646.63
Including：operating costs 29854226905.32 21970833611.78
Business taxes and surcharges 429088237.90 284043463.58
Selling expenses 6457804368.11 5233839568.35
Administrative expenses 1531518894.32 1335010979.18
Research and Development (R&D) expenses 6063039217.93 4740749014.04
Financial expenses (218286014.68) 154708009.70
Including：Interest expenses 161277514.63 148373068.03
Interest income 636331864.30 464390827.93
Add: Other Income 1766628497.10 1689901236.39Investment income (loss“-“) 219922536.36 124741116.75Including: Investment gains (losses) in
associated enterprise and joint-venture 8034443.78 (22332967.09)
enterpriseGains (loss “-“) from changes in fair values (46332817.33) 40458673.51Credit impairment losses (“-“) (440543687.06) (209108587.37)Impairment losses (“-“) of assets (296003739.00) (260366239.98)Asset disposal income (loss“-“) 11281396.84 304642.17III. Operating profit (loss“-“) 12726828068.89 9687941084.46Add: Non-operating income 58333999.53 51501876.64
Less: Non-operating expenses 72515784.28 12888908.91IV. Total profit (loss“-“) 12712646284.14 9726554052.19Less: Income tax expenses 1215761340.43 1149356334.82V. Net profit (loss“-“) 11496884943.71 8577197717.37
5.1 Classification by operation continuity
(a) Net profit (loss) on continuous operation 11496884943.71 8577197717.37
(b) Net profit (loss) on terminated operation - -
5.2 Classification by attribution of ownership
(a) Net profit attributable to owners of parent
10965641158.118438951476.64
company
(b) Profit or loss attributable to minority
531243785.60138246240.73
shareholdersHikvision 2021 Q3 Report
Item 2021 Q1~Q3 2020 Q1~Q3
VI. Other comprehensive income net of income tax (20947319.59) (36391343.45)
Other comprehensive income attributable to owners of
(19680081.77)(34507678.30)
the Company net of tax
(I) Items that will not be reclassified subsequently to
--
profit or loss
(II) Other comprehensive income to be reclassified to
(19680081.77)(34507678.30)
profit or loss in subsequent periods
1.Exchange differences arising on conversion of
financial statements denominated in foreign (19680081.77) (34507678.30)
currencies
Other comprehensive income attributable to minority
(1267237.82)(1883665.15)
interests net of tax
VII. Total comprehensive income 11475937624.12 8540806373.92
Total comprehensive income attributable to owners of
10945961076.348404443798.34
the parent company
Total comprehensive income attributable to minority
529976547.78136362575.58
shareholders
VIII. Earnings per share
(I) Basic earnings per share 1.179 0.909
(II) Diluted earnings per share 1.178 0.909
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
1.3 Consolidated Cash Flow Statement from the beginning of the year to the end of the
reporting period
Unit: RMB
Item 2021 Q1~Q3 2020 Q1~Q3
I. Cash flows from operating activities:
Cash received from sale of goods or rendering of
57804183013.3344732201357.96
services
Receipts of tax refunds 3223557982.86 2519486353.29
Other cash receipts relating to operating activities 1506042792.76 1120966888.55
Sub-total of cash inflows from operating
62533783788.9548372654599.80
activities
Cash payments for goods purchased and services
40981820273.0028365300528.80
received
Cash paid to and on behalf of employees 9760464456.89 7786708739.25
Payments of various types of taxes 3798000076.89 3516698560.06
Other cash payments relating to operating
4061568079.943169328778.86
activities
Sub-total of cash outflows from operating
58601852886.7242838036606.97
activities
Net Cash flows from Operating Activities 3931930902.23 5534617992.83
II. Cash flows from Investing Activities:
Cash receipts from recovery of investments 5586296231.17 1436901231.06Hikvision 2021 Q3 Report
Item 2021 Q1~Q3 2020 Q1~Q3
Cash receipts from investment income 116643801.97 151548143.79
Net cash receipts from disposals of fixed assets
15477468.8721360710.88
intangible assets and other long-term assets
Other cash receipts relating to investing
16436232.1924102324.29
activities
Sub-total of cash inflows from investing
5734853734.201633912410.02
activities
Cash payments to acquire or construct fixed
assets intangible assets and other long-term 2125979715.74 1605697549.12
assets
Cash paid to acquire investments 5610904398.89 1831979614.38
Net cash paid to acquire subsidiaries and other
293105351.50-
business units
Net cash paid for disposal of subsidiaries and
7355969.42-
other business units
Sub-total of cash outflows from investing
8037345435.553437677163.50
activities
Net cash flows from Investing Activities (2302491701.35) (1803764753.48)
III. Cash flows from financing activities:
Cash receipts from capital contributions 6839900.00 159764987.03
Including: cash receipts from capital
contributions from minority owners of 6839900.00 159764987.03
subsidiaries
Cash receipts from borrowings 3856596155.84 3681920917.95
Cash receipts from bonds - 999500000.00
Sub-total of cash inflows from financing
3863436055.844841185904.98
activities
Cash repayments of borrowings 4518670167.89 1734060296.82
Cash payments for distribution of dividends or
7118986368.126599275667.73
profits or settlement of interest expenses
Other cash payments relating to financing
259236364.1764290000.00
activities
Sub-total of cash outflows from financing
11896892900.188397625964.55
activities
Net cash flows from Financing Activities (8033456844.34) (3556440059.57)
IV. Effect of foreign exchange rate changes on Cash
(95920442.11)(418677132.16)
and Cash Equivalents
V. Net increase in Cash and Cash Equivalents (6499938085.57) (244263952.38)
Add: Opening balance of Cash and Cash
35024837878.3126515668008.40
Equivalents
VI. Closing Balance of Cash and Cash Equivalents 28524899792.74 26271404056.02
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan JunhuaHikvision 2021 Q3 Report
2. Notes on financial statement adjustment
(1) Initial Implementation of the new lease standard since the fiscal year of 2021 corresponding adjustments
to the relevant items in the financial statements at the beginning of the year
√Applicable □Inapplicable
Whether to adjust the balance sheet account at the beginning of the year √Yes □No
(1.1) Consolidated Balance Sheet
Unit: RMB
Item December 31st 2020 January 1st 2021 Adjustments
Current Assets:
Cash and bank balances 35459729108.27 35459729108.27 0.00
Held-for-trading financial assets 22679846.77 22679846.77 0.00
Notes receivable 1303252705.19 1303252705.19 0.00
Accounts receivable 21979380716.86 21979380716.86 0.00
Receivables for financing 1959601195.25 1959601195.25 0.00
Prepayments 296334689.86 293382571.09 -2952118.77
Other receivables 519143350.82 519026062.82 -117288.00
Inventories 11477906040.70 11477906040.70 0.00
Contract assets 245754510.98 245754510.98 0.00
Non-current assets due within one
1001208813.831001208813.830.00
year
Other current assets 497914506.64 497437052.79 -477453.85
Total Current Assets 74762905485.17 74759358624.55 -3546860.62
Non-current Assets:
Long-term receivables 2105570004.53 2105570004.53 0.00
Long-term equity investment 864026710.23 864026710.23 0.00
Other non-current financial assets 491939067.27 491939067.27 0.00
Fixed assets 5876007536.60 5830677198.85 -45330337.75
Construction in progress 1425235193.72 1425235193.72 0.00
Right-of-use assets 392997553.30 392997553.30
Intangible assets 1251317923.69 1251317923.69 0.00
Goodwill 274203665.20 274203665.20 0.00
Long-term deferred expenses 108584686.85 108584686.85 0.00
Deferred tax assets 820380954.86 820380954.86 0.00
Other non-current assets 721511156.08 721511156.08 0.00
Total Non-current Assets 13938776899.03 14286444114.58 347667215.55
Total Assets 88701682384.20 89045802739.13 344120354.93
Current Liabilities:
Short-term borrowings 3999246634.59 3999246634.59 0.00
Held-for-trading financial liabilities 7405771.15 7405771.15 0.00Hikvision 2021 Q3 Report
Item December 31st 2020 January 1st 2021 Adjustments
Notes payable 1036920229.85 1036920229.85 0.00
Accounts payable 13593884790.19 13593884790.19 0.00
Contract liabilities 2161166671.26 2161166671.26 0.00
Payroll payable 2877786430.71 2877786430.71 0.00
Taxes payable 1770057908.62 1770057908.62 0.00
Other payables 1525053355.95 1525053355.95 0.00
Including : Interests payable
Dividends payable 205898523.84 205898523.84 0.00
Non-current liabilities due within one
3507680339.783644798414.28137118074.50
year
Other current liabilities 745711579.57 745711579.57 0.00
Total Current Liabilities 31224913711.67 31362031786.17 137118074.50
Non-current Liabilities:
Long-term borrowings 1961167761.30 1961167761.30 0.00
Lease liabilities 230055273.70 230055273.70
Long-term payables 39595459.35 16542466.08 -23052993.27
Provisions 151443871.02 151443871.02 0.00
Deferred income 190878987.69 190878987.69 0.00
Deferred tax liabilities 92979823.89 92979823.89 0.00
Other non-current liabilities 560959368.74 560959368.74 0.00
Total non-current liabilities 2997025271.99 3204027552.42 207002280.43
Total liabilities 34221938983.66 34566059338.59 344120354.93
Owners’ Equity
Share capital 9343417190.00 9343417190.00 0.00
Capital reserves 5178777462.09 5178777462.09 0.00
Less: Treasury shares 1121918737.47 1121918737.47 0.00
Other comprehensive income (84993926.94) (84993926.94) 0.00
Surplus reserves 4672505348.00 4672505348.00 0.00
Retained earnings 35806523826.37 35806523826.37 0.00
Total owners' equity attributable to
53794311162.0553794311162.050.00
owner of the Company
Minority equity 685432238.49 685432238.49 0.00
Total owners' equity 54479743400.54 54479743400.54 0.00
Total liabilities and owners' equity 88701682384.20 89045802739.13 344120354.93Hikvision 2021 Q3 Report
(2) Description of retrospective adjustment to prior comparative data for the initial implementation of the
new lease standard since the fiscal year of 2021.√Applicable □Inapplicable
The effects of adoption of the New Lease Standard on balance sheet items on January 1st 2021 are set out as follows:
Consolidated Balance Sheet
Unit: RMB
Under Original Lease Under New Lease
Item Reclassification (Note)
Standard Standard
Current Assets：
Prepayments 296334689.86 (2952118.77) 293382571.09
Other receivables 519143350.82 (117288.00) 519026062.82
Other current assets 497914506.64 (477453.85) 497437052.79
Non-current assets:
Fixed assets 5876007536.60 (45330337.75) 5830677198.85
Right-of-use assets 3 9 2 9 9 7 5 5 3 .3 0 392997553.30
Current Liabilities:
Non-current liabilities due within
3507680339.78137118074.503644798414.28
one year
Non-current Liabilities:
Long-term payables 39595459.35 (23052993.27) 16542466.08
Lease liabilities 2 3 0 0 5 5 2 7 3 .7 0 230055273.70
Note: For financial leases before the date of initial application the Company measures the right-of-use assets and
lease liabilities respectively in accordance with the original book value of the assets held under financial leases and
the payables for financial leases. For operating leases before the date of initial application the Company measures
the lease liabilities at the present value discounted by the incremental borrowing rate on the date of initial application
based on the remaining lease payments and the prepaid rent is adjusted to measure the right-of-use assets according
to an amount equal to the lease liabilities of each lease. The lease liabilities (including the liabilities due within one
year) and the right-of-use assets recognized by the Company on January 1st 2021 amounted to RMB 386475961.59
and RMB 392997553.30 respectively. For operating leases before the date of initial application the Company
measures the lease liabilities at the present value discounted by the incremental borrowing rate on the date of initial
application which ranges between 1.14% and 9.50%.Hikvision 2021 Q3 Report
3. Audit Report
Whether audit has been performed on this 2021 3rd Quarter Report
□ Yes √ No
The Company’s 2021 3rd Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO. LTD.Board of Directors
October 23rd 2021
Note:
This document is a translated version of the Chinese version 2021 3rd Quarter Report (“2021 年第三季度报告”)
and the published announcements in the Chinese version shall prevail. The complete published Chinese 2021 3rd
Quarter Report may be obtained at www.cninfo.com.cn.