Hangzhou Hikvision Digital Tec

Hangzhou Hikvision Digital
Technology Co Ltd (002415)

Financial and Strategic SWOT Analysis Review
Report Code: GDTC1067090FSA

Published: February 2019
Hangzhou Hikvision Digital Technology Co Ltd (002415) - Financial and Strategic SWOT Analysis Review
Company Snapshot
No.555 Qianmo Road Phone +86 571 88075998 Revenue 41,905.48 (million CNY)
Hangzhou, ZHJ Fax +86 571 89935635 Net Profit 9,410.86 (million CNY)
310052 Website www.hikvision.com Employees 26,330
002415 [Shenzhen Stock Technology and
China Exchange Industry
Exchange] Communications
Company Overview
Hangzhou Hikvision Digital Technology Co Ltd (Hikvision), a subsidiary of China Electronics Technology Group Corp, is a manufacturer
and supplier of video surveillance products and services. The company's products include digital video recorders (DVRs), video and
audio encoding and decoding cards, network cameras, intercom, enterprise network storage, alarm, network cable, analog camera,
PTZ, LCD and LED splicing screen, and wireless bridges. It serves to banking and finance, hotel, parking, retail, mobile transport,
traffic, and industrial sectors.
Key Executives SWOT Analysis
Name Title Hangzhou Hikvision Digital Technology Co Ltd, SWOT Analysis
Chen Zongnian Chairman Strengths Weaknesses
Hu Yangzhong Director
Diversified Customer Base and Liquidity
Wu Weiqi Director Operational Network
Gong Hongjia Vice Chairman
R&D
Cheng Tianzong Director
Source: Annual Report, Company Website, Primary and Secondary
Research, GlobalData Opportunities Threats
Share Data
Focus on Industry4.0 Solutions Dependence on Limited
Hangzhou Hikvision Digital Technology Co Ltd Suppliers
Share Price (CNY) as on 19-Feb- 32.95 Global Automotive Industry
2019 Foreign Exchange Risks
EPS (CNY) 1.02

Market Cap (million CNY) 308,032 Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
Enterprise Value (million CNY) 298,136
Shares Outstanding (million) 9,348
Research, GlobalData
Financial Performance

Research, GlobalData
© GlobalData 2019. This product is licensed and is not to be photocopied. Page 2

Table of Contents
Table of Contents................................................................................................................................................................ ............... 3
List of Tables................................................................................................................................................................ .................. 4
List of Figures ................................................................................................................................................................ ................ 4
Section 1 - About the Company ................................................................................................................................ ......................... 5
Hangzhou Hikvision Digital Technology Co Ltd - Key Facts ................................................................................................ ................ 5
Hangzhou Hikvision Digital Technology Co Ltd - Key Employees................................................................................................ ....... 6
Hangzhou Hikvision Digital Technology Co Ltd - Key Employee Biographies..................................................................................... 7
Hangzhou Hikvision Digital Technology Co Ltd - Major Products and Services ................................................................................. 8
Hangzhou Hikvision Digital Technology Co Ltd - History ................................................................................................ ................... 9
Hangzhou Hikvision Digital Technology Co Ltd - Company Statement ............................................................................................ 10
Hangzhou Hikvision Digital Technology Co Ltd - Locations And Subsidiaries .................................................................................. 11
Head Office.................................................................................................................................................................................. 11
Other Locations & Subsidiaries ................................................................................................................................ ................... 11
Section 2 – Company Analysis.......................................................................................................................................................... 13
Company Overview................................................................................................................................................................ .......... 13
Hangzhou Hikvision Digital Technology Co Ltd - Business Description............................................................................................ 14
Hangzhou Hikvision Digital Technology Co Ltd - SWOT Analysis ................................................................................................ ..... 16
SWOT Analysis - Overview ................................................................................................................................ ............................... 16
Hangzhou Hikvision Digital Technology Co Ltd - Strengths................................................................................................ .............. 16
Hangzhou Hikvision Digital Technology Co Ltd - Weaknesses ................................................................................................ ......... 17
Hangzhou Hikvision Digital Technology Co Ltd - Opportunities................................................................................................ ....... 18
Hangzhou Hikvision Digital Technology Co Ltd - Threats................................................................................................ ................. 19
Hangzhou Hikvision Digital Technology Co Ltd - Key Competitors ................................................................................................ .. 20
Section 3 – Company Financial Ratios ................................................................................................................................ ............. 21
Financial Ratios - Capital Market Ratios ................................................................................................................................ .......... 21
Financial Ratios - Annual Ratios ................................................................................................................................ ....................... 22
Performance Chart................................................................................................................................................................ ........... 25
Financial Performance ................................................................................................................................................................ ..... 25
Financial Ratios - Interim Ratios ................................................................................................................................ ...................... 26
Financial Ratios - Ratio Charts.......................................................................................................................................................... 27
Section 4 – Appendix ................................................................................................................................................................ ....... 28
Methodology................................................................................................................................................................ ............... 28
Ratio Definitions................................................................................................................................................................ .......... 28
About GlobalData................................................................................................................................................................ ........ 32
Contact Us ................................................................................................................................................................ ................... 32
Disclaimer................................................................................................................................................................ .................... 32

List of Tables
Hangzhou Hikvision Digital Technology Co Ltd, Key Facts ................................................................................................ ................. 5
Hangzhou Hikvision Digital Technology Co Ltd, Key Employees................................................................................................ ........ 6
Hangzhou Hikvision Digital Technology Co Ltd, Key Employee Biographies...................................................................................... 7
Hangzhou Hikvision Digital Technology Co Ltd, Major Products and Services .................................................................................. 8
Hangzhou Hikvision Digital Technology Co Ltd, History................................................................................................ ..................... 9
Hangzhou Hikvision Digital Technology Co Ltd, Other Locations ................................................................................................ .... 11
Hangzhou Hikvision Digital Technology Co Ltd, Subsidiaries ................................................................................................ ........... 11
Hangzhou Hikvision Digital Technology Co Ltd, Key Competitors ................................................................................................ ... 20
Hangzhou Hikvision Digital Technology Co Ltd, Ratios based on current share price ..................................................................... 21
Hangzhou Hikvision Digital Technology Co Ltd, Annual Ratios................................................................................................ ........ 22
Hangzhou Hikvision Digital Technology Co Ltd, Annual Ratios (Cont...1) ........................................................................................ 23
Hangzhou Hikvision Digital Technology Co Ltd, Annual Ratios (Cont...2) ........................................................................................ 24
Hangzhou Hikvision Digital Technology Co Ltd, Interim Ratios ................................................................................................ ....... 26
Currency Codes ................................................................................................................................................................ ................ 28
Capital Market Ratios................................................................................................................................................................ ....... 28
Equity Ratios ................................................................................................................................................................ .................... 29
Profitability Ratios................................................................................................................................................................ ............ 29
Cost Ratios ................................................................................................................................................................ ....................... 30
Liquidity Ratios................................................................................................................................................................ ................. 30
Leverage Ratios................................................................................................................................................................ ................ 31
Efficiency Ratios ................................................................................................................................................................ ............... 31
List of Figures
Hangzhou Hikvision Digital Technology Co Ltd, Performance Chart (2013 - 2017) ......................................................................... 25
Hangzhou Hikvision Digital Technology Co Ltd, Ratio Charts ................................................................................................ .......... 27

Section 1 - About the Company

Hangzhou Hikvision Digital Technology Co Ltd - Key Facts
Hangzhou Hikvision Digital Technology Co Ltd, Key Facts
Corporate Address No.555 Qianmo Road, Ticker Symbol, Exchange 002415 [Shenzhen Stock
Hangzhou, ZHJ, 310052, China Exchange]
Telephone +86 571 88075998 No. of Employees 26,330
Fax +86 571 89935635 Fiscal Year End December
URL www.hikvision.com Revenue (in USD Million) 6,200.7
Industry Consumer Goods, Telecoms & IT Revenue (in CNY Million) 41,905.5
Locations Australia, Brazil, Canada, China, Colombia, Germany, Hong Kong, Hungary, India, Indonesia,
Kazakhstan, Kenya, Malaysia, Netherlands, New Zealand, Philippines, Poland, Qatar, Russia, Saudi
Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Taiwan, Thailand, Turkey, United Arab
Emirates, United Kingdom, United States, Uzbekistan, Vietnam
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

Hangzhou Hikvision Digital Technology Co Ltd - Key Employees

Hangzhou Hikvision Digital Technology Co Ltd, Key Employees
Name Job Title Board Level Since Age
Chen Zongnian Chairman Executive Board 2008 53

Hu Yangzhong Director, General Manager Executive Board 2001 53
Wu Weiqi Director, Standing Deputy General Executive Board 2003 54

Manager
Gong Hongjia Vice Chairman Non Executive Board 2008 53
Cheng Tianzong Director Non Executive Board 2015 66
Lu Jianzhong Director Non Executive Board 2015 64
Wang Zhidong Director Non Executive Board 2015 51
Hong Tianfeng Director Non Executive Board 2016 52
Cheng Huifang Supervisor Chairman Non Executive Board 2015 65
Jiang Haiqing Deputy General Manager Senior Management 2003 49
He Hongli Deputy General Manager Senior Management 2005 45
Fu Baijun Deputy General Manager Senior Management 2009 46
Jiang Yufeng Deputy General Manager Senior Management 2005 47
Jin Duo Deputy General Manager Senior Management 2015 53
Jin Yan Deputy General Manager Senior Management 2015 39
Jia Yonghua Deputy General Manager Senior Management 2015 41
Li Pan Deputy General Manager Senior Management 2015 40
Cai Changyang Deputy General Manager Senior Management 2016 47
Huang Fanghong Deputy General Manager, Senior Management 2016 36
Secretary
Xu Ximing Deputy General Manager Senior Management 2016 45
Bi Huijuan Deputy General Manager Senior Management 2016 47

Hangzhou Hikvision Digital Technology Co Ltd - Key Employee Biographies

Hangzhou Hikvision Digital Technology Co Ltd, Key Employee Biographies
Mr. Chen Zongnian has been the Chairman of the company since 2008. Prior to
Chen Zongnian
this, he served as the Deputy General Manager of Shenzhen Gao Ke Run
Job Title: Chairman
Electronics, General Manager and a Director of Zhejiang Haikang Group Co Ltd
andZhejiang Haikang Information Technology Co Ltd, and the Head, Deputy
Board Level: Executive Board
Head and Assistant of the head of 52nd Research Institute for China Electronics
Since: 2008
Technology Group Corp.
Age: 53

Hangzhou Hikvision Digital Technology Co Ltd - Major Products and Services

Hikvision is a manufacturer of video surveillance products and solutions. The company’s major products and services include the following:
Hangzhou Hikvision Digital Technology Co Ltd, Major Products and Services

Products:
Network Camera
Analog Camera
Pan–Tilt–Zoom (PTZ) Camera
Thermal Camera
Security cameras
Encoder
Access Controllers
Transmission and Display Products
Alarms
Lenses
Brackets
Cables
Detectors
Servers
Radars
Mobile Robots
Digital Video Recorder
Network Video Recorders
Video Encode & Decode Card
Network Storage
Video Intercom
Decoders
Enterprise Network Storage

Hangzhou Hikvision Digital Technology Co Ltd - History

Hangzhou Hikvision Digital Technology Co Ltd, History
2018 Contracts/Agreements In April, the company partnered with Brightsight to enhance its research on
prevention of cybersecurity issues and attacks.
2018 Contracts/Agreements In March, Hikvision partnered with Corinthians, a Sao Paulo-based
Campeonato Brasileiro Serie A football club.
2018 Contracts/Agreements In September, Hikvision entered into a technology partnership with
Videonetics to improve performance of its network cameras.
2018 New Products/Services In June, the company introduced Hikvision ColorVu Technology with
improved surveillance capabilities in dark environments.
2018 Other In August, the company received the US Government Federal Information
Processing Standard (FIPS) 140-2 certification for its encryption module
(HIKSSL).
2018 Other In October, Hikvision received Certificate of Common Criteria for Information
Technology Security Evaluation.
2018 Plans/Strategy In June, the company announced its plans to launch expansion of its
technology partner programme.
2016 Contracts/Agreements In October, the company signed an agreement with Movidius to utilize
Movidius' computer vision technology.
2010 Stock Listings/IPO The company was listed on Shenzhen Stock Exchange.
2001 Incorporation/Establishment The company was incorporated.

Hangzhou Hikvision Digital Technology Co Ltd - Company Statement
A statement from the vision and mission section of Hangzhou Hikvision Digital Technology Co Ltd is given below. The statement has been
taken from the company’s website.
Vision
Empower vision for the security and growth of the world
Mission
To explore innovative ways to better perceive and understand the world
To empower vision for decision-makers and practitioners
And work together to enhance safety and advance sustainable development of the world

Hangzhou Hikvision Digital Technology Co Ltd - Locations And Subsidiaries

Head Office
Hangzhou Hikvision Digital Technology Co Ltd
No.555 Qianmo Road
Hangzhou
ZHJ
310052
China
Tel: +86 571 88075998
Fax: +86 571 89935635
Other Locations & Subsidiaries
Hangzhou Hikvision Digital Technology Co Ltd, Other Locations
Building 2, Waverley office park, 39 Scott streetJohannesburg Suites 31 and 32

Alameda Campinas, Jardim Paulista
South Africa Brazil
Tel: +27 87 7018113 Tel: +55 11 33180050
Fax: +27 10 1108228
18639 Railroad StreetCity of Industry 52nd floor

California Almas Tower, Jumeirah Lakes Towers
91748 United Arab Emirates
United States Tel: +971 4 4432090
Tel: +1 909 8950400
4848 Levy Street, Saint-LaurentMontreal 2nd Floor

Quebec Siddhivinayak Arcade, Akurli Cross Road No.1, Near Kandivali East
H4R 2P1 Station (Fatak), Kandivali East
Canada Mumbai
Tel: +1 866 2006690 400101
Fax: +1 909 5952788 India
Tel: +91 22 28469900
Units 412-413, 4/F Unit 14a

Kwai Cheong Center, 50 Kwai Cheong Road, Kwai Chung Eden Park Dr, Macquarie Park
Hong Kong Sydney
Tel: +852 21511761 New South Wales
2113
Australia
Dirk Storklaan 32132 PX The Park, Office Building AKrakowiakow 50Warsaw

Netherlands 02 255
Tel: +31 23 5542770 Poland
Fax: +31 23 5631112 Tel: +48 22 4600150
Fax: +48 22 4643211
Hangzhou Hikvision Digital Technology Co Ltd, Subsidiaries
HDT International Ltd Hikvision FZE

Dubai
Hong Kong United Arab Emirates

Hikvision USA Inc. Hangzhou Hikvision Science and Technology Co Ltd

United States China
Hikvision Europe BV Pyronix Limited

Netherlands Secure House
Braithwell Way
Rotherham
ENG
S66 8QY
United Kingdom
Tel: +44 0 170 970 0100
Url: www.pyronix.com
Hangzhou Hikvision System Technology Co Ltd EZVIZ Inc

China United States

Section 2 – Company Analysis

Company Overview
Hangzhou Hikvision Digital Technology Co Ltd (Hikvision), a subsidiary of China Electronics Technology Group Corp, is a manufacturer and
supplier of video surveillance products and services. The company's products include digital video recorders (DVRs), video and audio encoding
and decoding cards, network cameras, intercom, enterprise network storage, alarm, network cable, analog camera, PTZ, LCD and LED splicing
screen, and wireless bridges. It serves to banking and finance, hotel, parking, retail, mobile transport, traffic, and industrial sectors. The
company supplies its products and services through sales offices, technology providers, distributors, engineering contractors and outsourced
service providers. It has operations across Asia-Pacific, Europe, Africa, the Middle-East and the Americas. Hikvision is headquartered in
Hangzhou, Zhejiang, China.

Hangzhou Hikvision Digital Technology Co Ltd - Business Description

Hangzhou Hikvision Digital Technology Co Ltd (Hikvision) is a designer, manufacturer and marketer of video surveillance products and services
in 150 countries.
The company classifies its offerings into 17 product categories: camera, video recorder, kit, video encode and decode card, encoder, mobile,
video intercom, access control, traffic product, transmission and display product, enterprise network storage, alarm, accessories, robotics,
and smart home security systems.
Under the camera product category, the company provides network, thermal, analog and pan–tilt–zoom (PTZ) cameras. Its network camera
offerings includes pro series, wireless, ultra series, 6-line, PanoVu, anti-corrosion, explosion proof and DeepinView cameras, while thermal
camera offerings comprises network stable PTZ, thermal smart linkage tracking system, thermal positioning system, network speed dome,
network bullet, handheld observational, thermal scope and handheld thermography cameras. The company offers analog cameras such as DIS
and PICADIS, and turbo HD. Its camera category also offers DF-line Network Smart, DE-line Network, Turbo HD, positioner and traffic PTZ
cameras.
Through the video recorder category, Hikvision offers network and digital video recorders. Its network video recorders include ultra series
(SmartIP), Pro Series (EasyIP), value series, workstation and DeepMind series, while digital video recorders (DVRs) comprises Turbo HD,
Analog and ATM DVRs.
The company’s Kits product category offers Wi-Fi kits such as four channel 2MP and 4MP, and 4 Channel 2MP PoE kits.
Under the video encode and decode card category, Hikvision provides 4300 encode, 4000/4100 decode and 4300 decode cards. The 4300
encode offerings include DS-4308/4316HWI-E, DS-4308/4316HCVI-E, DS-4304HFHI-E High Definition and DS-4308/4316HFVI-E compression
cards. Its 4000/4100 decode offerings comprises matrix and HD decode cards, and 4300 decode provides HD decode card.
The company’s encoder category offers DS-6701/6704/6708/6716HWI, DS-6708/16HQHI-SATA, DS-6704/6708/6716HUHI-K, and DS-
6701/6704HUHI HD encoders, and DS-6601HFHI 6600 encoder.
Under the mobile category, it offers mobile video recorders, portable series and mobile camera. The company’s mobile video recorder
offerings comprises DS-MP7608HN-M12 mobile NVR, DS-MP3504-SD mobile DVR, DS-MP5504, DS-M5504HM-T mobile DVR, DS-M5504HNI
mobile NVR, DS-MP7608HN mobile NVR, DS-M5504HNI-M12 mobile NVR, 8-ch HDTVI Mobile Video Recorder (DS-MP7508), and DS-
MP7608HN mobile NVR. It provides HD-TVI cameras such as AE-VC211T-IRS, AE-VC161T-ITS, AE-VC152T-S, AE-VC151T-IT, AE-VC123T-ITS, AE-
VC122T-ITS, AE-VC122T-IT and AE-VC112T-ITS, and portable series including DS-MH6111, dock station, DS-MH2311 body worn camera, DS-
MH2211 body worn camera and DS-MH2111 body worn camera.
In the video intercom category, the company offers door, villa door, master and indoor station cameras. It provides vandal-resistant and Wi-Fi
door bells, analog video intercom systems and 2-wire IP video intercom. It also provides accessories such as DS-KAD606, DS-KAD612, DS-
KAD606-N and DS-KAD606-P video/audio distributor.
Under the access control category, Hikvision offers network access, and distributed and master access controllers. It provides terminals such
as face recognition, video access control, IP-based fingerprint access control, fingerprint access control, access control, standalone access
control and fingerprint time attendance terminals. The company’s access control category offers card readers, EM cards, M1 non-contacting
IC cards, smart CPU cards, Mifare 1 non-contacting IC cards, card issuers, master and distributed elevator controllers, secure door control
unit, protective shields and floor stands. It also offers exit button and locks such as single and double door magnetic locks, electric bolts, LZ
and U bracket of magnetic lock, upper and lower and lower U bracket of electric bolts, exit buttons, and emergency break glasses.
Through the traffic category, the company offers scan CCD, ANPR and CMOS traffic cameras; high-precision narrow band and multiple target
high-precision radars; terminal servers; supplement and IR burst lights; signal light detectors; and traffic data analysis and incident detection
servers.
Hikvision’s transmission and display category offerings include LCD, LED, Transparent LED and DLP projection display units; indoor full color
LED module controllers; decoders; monitors; video wall controllers; PoE switches; network and USB keyboards; digital signage; OPS computer;
teaching assistance products; wireless bridges; and POE repeaters. It also provides related accessories such as UTP cable, coaxial transmission
accessory and video balun.
Under the enterprise network storage category, the company offers cloud storage systems, hybrid storage area network (SAN) systems and
just a bunch of disks (JBOD).

Through the alarm category, it provides security radars, wireless alarm kits, wireless alarm hubs, wireless detectors, hybrid alarm panels,
wired detectors, emergency alarms and photoelectric detectors. The company also provides related accessories such as LCD keypads, wireless
receivers, wireless keyfobs, output and input expanders, repeaters, wired and wireless sirens, and wireless tags.
The company’s accessories category provides network cables, lenses, coaxial cables, brackets, camera accessory selection map, camera
housing and SFP modules.
Under the robotics category, Hikvision offers machine vision solutions, mobile robots, and unmanned aerial vehicles (UAVs). Its machine
vision solutions include industrial cameras, smart cameras, vision box, lenses, and positioning, detection, sensing and traceability solutions.
Through the smart home security systems category, the company develops and offers security cameras, door viewers, door bells, alarms and
sensors, network video recorders (NVRs), routers and action cameras for smart homes through its subsidiary Ezviz Inc.
The company’s research and development (R&D) system focuses on development of new products leveraging emerging technologies such as
artificial intelligence (AI), cloud computing, big data, deep learning, video image processing and audio and video encoding. In FY2017, the
company spent CNY3,194.2 million on its R&D, which as a percentage of revenue accounted for 7.6%.

Hangzhou Hikvision Digital Technology Co Ltd - SWOT Analysis

SWOT Analysis - Overview
Hangzhou Hikvision Digital Technology Co Ltd (Hikvision) is a designer, manufacturer and supplier of video surveillance products and services.
Diversified customer base and operational network, R&D and growth performance are the major strengths of the company, whereas liquidity
remains cause for concern. Focus on industry4.0 solutions, global automotive industry, partnerships and certifications are likely to offer
growth opportunities to the company. However, dependence on limited suppliers, cyberattacks and security vulnerabilities and foreign
exchange risks could affect its business operations.
Hangzhou Hikvision Digital Technology Co Ltd - Strengths

Strength - Diversified Customer Base and Operational Network
The company has a diversified customer base and operational network to enhance its business performance and sales. Hikvision serves to
banking and financial, hotel, industrial, parking, retail, traffic and mobile transport sectors in 150 countries. Its products are used in the
markets such as the safe city project in Seoul, South Korea; Philadelphia Recreation center in the US; Bank of India; Dun Laoghaire Harbour in
Ireland; and Malpensa Airport in Milan, Italy. The company has three manufacturing facilities in Hangzhou, Tonglu and Chongqing. It markets
its solutions through domestic and overseas sales offices. As of December 2017, it had 200 liaison offices and 35 branches in China; and 37
overseas sales branches. It also has a three-tier service system, comprising the Branch Customer Service Department, Authorized Customer
Service Station and Global Customer Service Center to fulfill the service demands of customers. The company collaborates with engineering
contractors, outsourced service providers and distributors for product delivery, software deployment, project delivery, maintenance, and
system operation. As of December 2017, the company placed 800 intelligent warehouse robots in its Tonglu Production Base for warehousing
and internal logistics automation. In FY2017, the company’s top five customers reported revenue of CNY2,224.9 million, which accounted for
5.3% of the revenue.
Strength - R&D
Hikvision’s research and development (R&D) system focuses on development of new products leveraging emerging technologies such as
artificial intelligence (AI), cloud computing, big data, deep learning, video image processing and audio and video encoding. Its R&D system
performs operations such as research, design, development, technical support, testing and service. As of December 2017, the company had
769 software copyrights and 1959 patents, including 1091 product design, 471 utility model and 397 invention patents. The company’s R&D
mainly focuses on developing AI-enabled products to capitalize the growing AI industry. It built AI Cloud, a three-dimensional (3D) IoT-based
intelligent system architecture, with the concept of on-demand (data) convergence, edge perception, multi-tier application and multi-layer
cognition. It had R&D centers in Montreal, Canada; Liverpool, the UK; and Shanghai, Beijing, Wuhan and Chongqing in China. In FY2017, the
company planned to construct four R&D facilities in Xi’an Wuhan, Chengdu and Shijiazhuang, and expand the Hangzhou-based R&D center. It
obtained 684 patents for product design, utility model and invention, and 165 software copyrights during the review year. In FY2017, the
company spent CNY3,194.2 million on its R&D, which as a percentage of revenue accounted for 7.6%.
Strength - Growth Performance
The company’s financial performance strengthened in the FY2017. Strong financial performance enables the company to provide higher
returns to its shareholders, thereby attracting investments. Growth in revenue enhances the company’s ability to allocate adequate funds for
its future growth and expansion plans. In FY2017, Hikvision reported revenue of CNY41,905.5 million as compared to CNY31,934.5 million in
FY2016, an annual growth of 31.2%. The growth in the revenue was due to 32.8% increase in revenue from front-end equipment, 16.3% from
back-end equipment, 12.5% from central control equipment, 4.5% from constructions and 2.3% from smart home business. In FY2017, the
company’s operating income was CNY10,443.1 million compared to an operating income of CNY6,833.3 in FY2016. Improving operating
performance indicates the company’s focus on efficient cost management. Its operating cost as a percentage of sales declined from 78.6% in
FY2016 to 75.1% in FY2017. Similarly, the company’s net income grew from CNY7,423.7 in FY2016 to net income of CNY9,410.9 million in
FY2017. The company’s return on equity grew from 30.6% in FY2016 to 31% in FY2017.

Hangzhou Hikvision Digital Technology Co Ltd - Weaknesses

Weakness - Liquidity
The company’s liquidity declined in FY2017. Low liquidity is an indication of the decreasing ease in funding the company’s day to day
operations, which also limits its ability to capture growth opportunities in the market. The company’s current ratio was 2.6 at the end of
FY2017 when compared to a current ratio of 3.0 at the end of FY2016. The company’s current ratio was lower than that of its major
competitors, Vivotek Inc (2.6) and Ubiquiti Networks Inc (8.9). The decrease in current ratio could be due 41.8% increase in total current
liabilities, which increased from CNY12,133.5 million in FY2016 to CNY17,201.5 million in FY2017, due to increase in accounts payable and
accrued expenses.

Hangzhou Hikvision Digital Technology Co Ltd - Opportunities

Opportunity - Focus on Industry4.0 Solutions
The company focuses on leveraging industry4.0 technologies such as artificial intelligence (AI), blockchain, robotic process automation,
internet-of-Things (IoT), augmented reality (AR) and machine learning into its existing solutions to enable digital transformation. In FY2017,
Hikvision focused on the concept of aligning AI Cloud with Internet of Things (IoT) industry. In this line, it introduced a three-tier AI Cloud
architecture based on the concept on-demand (data) convergence, edge perception, multi-layered cognition and multi-tier application. The
company aims to focus on AI Cloud open platform to advance the development of IoT industry.
Opportunity - Global Automotive Industry
The company stands to benefit from the global automotive manufacturing industry. New technologies, changing consumer demands and
increase in consumer spending are creating growth for the global automotive manufacturing industry. In addition world GDP rate, increasing
disposable income and demand for luxury goods are fueling the growth. According to in-house research report, the global automotive
manufacturing industry was expected to reach US$1,343 billion by the end of 2022, whereas the volume sales are expected to increase to
25,716.5 million units in 2022. The company extended it video technology usage in automotive electronics field by offering intelligent vehicle-
mounted rearview mirror, vehicle-mounted intelligent surveillance system, advanced driver assistance systems (ADAS) and 360 degrees
panoramic view system for enabling safe driving.
Opportunity - Partnerships
The company entered into certain strategic partnerships to extend its product offerings, distributions and business presence. In September
2018, Hikvision entered into a technology partnership with Videonetics, a visual computing platform development company to improve
performance of its network cameras. Through this partnership, the company integrates its network cameras with Intelligent Video
Management Software (IVMS) of Videonetics to effectively view, capture and analyze the H.265+ compressed video streams from its network
cameras. In April 2018, the company partnered with Brightsight, a security lab to enhance its research on prevention of cybersecurity issues
and attacks. In March 2018, Hikvision partnered with Corinthians, a Sao Paulo-based Campeonato Brasileiro Serie A football club. As a part of
the partnership, the company provides security solutions enabled products, including DarkFighter cameras, AI-powered facial recognition
cameras and Automatic Number Plate Recognition cameras, access control equipment, and PanoVu cameras with 360 degrees panoramic
view to manage and maintain security of Corinthians.
Opportunity - Certifications
The company’s capability of receiving certifications provides competitive advantage over its peers. In October 2018, Hikvision received
Certificate of Common Criteria for Information Technology Security Evaluation. This certificate resembles the ability to evaluate reliability and
security of Information technology products, focusing on private information protection. The company obtained this certificate for its IP
camera products such as DS-2CD5 and DS-2CD3. In August 2018, it received the US Government Federal Information Processing Standard
(FIPS) 140-2 certification for its encryption module (HIKSSL). This certification is applicable for NVR products and IP cameras.

Hangzhou Hikvision Digital Technology Co Ltd - Threats

Threat - Dependence on Limited Suppliers
Dependence on limited suppliers for manufacturing some of their components could be of major concern for the company. Hikvision obtains
some parts and raw materials used in the products and systems majorly from five suppliers. In FY2017, the company’s purchases from top five
suppliers was CNY7,162.1 million, which accounted for 29.2% of the total purchases. Although the company takes measures to minimize the
risks by monitoring the financial conditions of the suppliers, its operations may be affected adversely in some cases due to the disruptions
within suppliers complexity of supply chains, which in turn could disrupt the scheduled deliveries to customers damaging customer
relationships.
Threat - Foreign Exchange Risks
The company operates in many parts of the world and is exposed to fluctuations in foreign exchange rates. The company reports financials in
the Chinese Yen (CNY) and therefore its revenue is exposed to volatility of the CNY against other functional currencies, as it serves customers
in over 150 countries. Major elements exposed to exchange rate risks include the company’s investments in overseas subsidiaries and
affiliates and monetary assets and liabilities arising from business transactions in foreign currencies. In FY2017, the company reported a profit
of CNY13,552.8 million from exchange differences on conversion of financial statements in foreign currency as compared to loss of
CNY13,570.8 million in FY2016. To minimize risks from currency fluctuations, the company could involve in foreign exchange hedging by
entering into foreign exchange forward contracts. However, there could be no assurance that such hedging would limit the impact of
movements in exchange rates on the company’s results of operations.
Threat - Cyberattacks and Security Vulnerabilities
The constantly evolving cyberthreats could disrupt the security of the company’s systems, products and business applications, impair ability to
provide services to its customers and protect the privacy of their data. Hackers and organizations, including state-sponsored organizations
continuously develop and deploy malicious software or exploit vulnerabilities in hardware, software, and other infrastructure to gain access to
organizations’ networks and datacenters. According to Internet Crime Complaint Center’s (IC3) Internet Crime Report 2017, IC3 received
301,580 complaints with financial losses of over US$1.4 billion. It received an average of over 284,000 complaints per year during the last five-
year. The IC3 received 10,949 complaints related to tech support fraud, which resulted in loss of around US$15 million in 2017, representing a
90% increase in losses from 2016. It received 15,690 Email Account Compromise (EAC)/Business Email Compromise (BEC) complaints with
adjusted losses of over US$675 million. The ransomware related complaints were 1,783, causing adjusted financial loss of over US$2.3 million.
Hikvision business model revolves around providing video surveillance products and services, which is vulnerable to increasing cyberattacks.
The company needs to invest in developing secure products, update software to address security vulnerabilities of its solutions that help in
protecting its internal IT systems and cloud-based services.
NOTE:
* Sector average represents top companies within the specified sector
The above strategic analysis is based on in-house research and reflects the publishers opinion only

Hangzhou Hikvision Digital Technology Co Ltd - Key Competitors

Hangzhou Hikvision Digital Technology Co Ltd, Key Competitors
Name Headquarters Revenue (US$ m)
Axis Communications AB Sweden
China Security & Surveillance Tech. Inc China
Dahua Technology Co., Ltd. China 2,788
MOBOTIX AG Germany 75
Ubiquiti Networks Inc United States 1,017
Vivotek Inc. Taiwan 193

Section 3 – Company Financial Ratios

Financial Ratios - Capital Market Ratios
Hangzhou Hikvision Digital Technology Co Ltd, Ratios based on current share price
Key Ratios 19-Feb-2019
P/E (Price/Earnings) Ratio 32.73

EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 28.18
Enterprise Value/Sales 7.11
Enterprise Value/Operating Profit 28.55
Enterprise Value/Total Assets 5.78
Dividend Yield 1.52
Note: Above ratios are based on share price as of 19-Feb-2019, the above ratios are absolute numbers

Financial Ratios - Annual Ratios

Hangzhou Hikvision Digital Technology Co Ltd, Annual Ratios
Key Ratios Unit/Currency 2013 2014 2015 2016 2017
Equity Ratios
EPS (Earnings per Share) CNY 0.34 0.52 0.65 0.82 1.02
Dividend per Share CNY 0.11 0.18 0.31 0.40 0.50
Dividend Cover Absolute 3.05 2.91 2.09 2.04 2.04
Book Value per Share CNY 1.23 1.65 2.13 2.67 3.29
Cash Value per Share CNY 0.51 0.79 1.11 1.49 1.76
Profitability Ratios
Gross Margin % 47.55 44.35 40.06 41.57 44
Operating Margin % 27.42 25.40 21.74 21.40 24.92
Net Profit Margin % 28.54 27.07 23.22 23.25 22.46
Profit Markup % 90.65 79.68 66.84 71.14 78.57
PBT Margin (Profit Before Tax) % 31.51 30.21 26.71 26.03 25.02
Return on Equity % 27.66 31.43 30.48 30.57 31
Return on Capital Employed % 26.41 28.84 27.41 23.39 30.38
Return on Assets % 24.87 26.39 22.75 20.72 20.26
Return on Fixed Assets % 318.97 331.09 252.95 229.67 260.18
Return on Working Capital % 31.10 33.68 33.48 28.01 38.04
Growth Ratios
Sales Growth % 48.96 60.37 46.64 26.37 31.22
Operating Income Growth % 48.13 48.55 25.50 24.38 52.83

Hangzhou Hikvision Digital Technology Co Ltd, Annual Ratios (Cont...1)

EBITDA Growth % 47.56 48.57 25.44 24.95 52.30
Net Income Growth % 43.51 52.13 25.80 26.49 26.77
EPS Growth % 45.35 51.04 24.84 26.22 25.88
Working Capital Growth % 36.99 37.16 26.26 48.70 12.51
Cost Ratios
Operating Costs (% of Sales) % 72.58 74.60 78.26 78.60 75.08
Administration Costs (% of Sales) % 11.79 12.20 12.32 12.74 14.32
Liquidity Ratios
Current Ratio Absolute 4.25 3.13 2.60 3.01 2.60
Quick Ratio Absolute 3.76 2.75 2.32 2.70 2.31
Cash Ratio Absolute 1.58 1.18 0.98 1.12 0.94
Leverage Ratios
Debt to Equity Ratio % 0.02 0.06 0.12 0.23 0.20
Net Debt to Equity Absolute -0.40 -0.43 -0.40 -0.33 -0.33
Debt to Capital Ratio % 0.02 0.06 0.11 0.19 0.17
Efficiency Ratios
Asset Turnover Absolute 0.87 0.97 0.98 0.89 0.90
Fixed Asset Turnover Absolute 11.63 13.03 11.64 10.73 10.44
Inventory Turnover Absolute 4.61 5.16 5.93 5.61 5.35
Current Asset Turnover Absolute 1.01 1.09 1.10 1.01 1.03

Hangzhou Hikvision Digital Technology Co Ltd, Annual Ratios (Cont...2)

Capital Employed Turnover Absolute 0.96 1.14 1.26 1.09 1.22
Working Capital Turnover Absolute 1.13 1.33 1.54 1.31 1.53
Revenue per Employee CNY 1,591,549
Net Income per Employee CNY 357,419
Capex to Sales % 3.64 3.54 5.26 2.85 4.04
R&D to Sales % 8.58 7.55 6.82 7.62 7.62

Performance Chart
Hangzhou Hikvision Digital Technology Co Ltd, Performance Chart (2013 - 2017)
Financial Performance
The company reported revenues of (Renminbi) CNY41,905.5 million for the fiscal year ended December 2017 (FY2017), an increase of 31.2%
over FY2016. In FY2017, the company’s operating margin was 24.9%, compared to an operating margin of 21.4% in FY2016. In FY2017, the
company recorded a net margin of 22.5%, compared to a net margin of 23.2% in FY2016.
The company reported revenues of CNY12,926.9 million for the third quarter ended September 2018, an increase of 12.3% over the previous
quarter.

Financial Ratios - Interim Ratios

Hangzhou Hikvision Digital Technology Co Ltd, Interim Ratios
Key Ratios Unit/Currency Sep-2017 Dec-2017 Mar-2018 Jun-2018 Sep-2018
Interim EPS (Earnings per Share) CNY 0.31 0.35 0.20 0.25 0.35
Dividend per Share CNY 0.50
Book Value per Share CNY 2.93 3.29 3.49 3.25 3.61
Gross Margin % 45.40 42.97 44.31 43.11 44.77
Operating Margin % 25.45 26.52 22.90 22.24 26.07
Net Profit Margin % 25.36 22.98 19.39 20.25 25.13
Profit Markup % 83.16 75.36 79.57 75.77 81.05
PBT Margin (Profit Before Tax) % 26.05 26.12 23.02 22.74 26.38
Operating Costs (% of Sales) % 74.55 73.48 77.10 77.76 73.93
Administration Costs (% of Sales) % 13.26 19.84 22.21 26.70 14.67
Current Ratio Absolute 3.05 2.60 2.44 2.16 2.21
Quick Ratio Absolute 2.62 2.31 2.14 1.87 1.93
Debt to Equity Ratio % 0.24 0.20 0.23 0.27 0.22
Net Debt to Equity Absolute -0.25 -0.33 -0.12 -0.18 -0.33
Debt to Capital Ratio % 0.21 0.18 0.23 0.27 0.22

Financial Ratios - Ratio Charts

Hangzhou Hikvision Digital Technology Co Ltd, Ratio Charts
EPS Operating Margin
Return on Equity Return on Assets
Debt to Equity Ratio Current Ratio

Section 4 – Appendix
The data and analysis within this report is driven by GlobalData.
GlobalData gives you key information to drive sales, investment and deal making activity in your business.
Our coverage includes 200,000 + reports on 185,000+ companies (including 150,000+ private) across 200+ countries and 29 industries. The
key industries include Alternative Energy, Oil & Gas, Clean Technology, Technology and Telecommunication, Pharmaceutical and Healthcare,
Power, Financial Services, Chemical and Metal & Mining.
Methodology
GlobalData company reports are based on a core set of research techniques which ensure the best possible level of quality and accuracy of
data. The key sources used include:
• Company Websites
• Company Annual Reports
• SEC Filings
• Press Releases
• Proprietary Databases
Currency Codes
Currency Code Currency
CNY Renminbi
GlobalData
Ratio Definitions
Capital Market Ratios
Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned
per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more
Price/Earnings Ratio
for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E
(P/E)
suggests that investors are expecting higher earnings growth in the future compared to companies with a
lower P/E. Price per share is as of previous business close, and EPS is from latest annual report.
Calculation: Market Cap / Net Income
Enterprise Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an
Value/Earnings before alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a
Interest, Tax, company's capital structure. It compares the value of a business, free of debt, to earnings before interest.
Depreciation & Price per share is as of previous business close, and shares outstanding last reported. Other items are from
Amortization latest annual report.
(EV/EBITDA) Calculation: {(Market Cap + Debt + Minority Interest + Preferred Stock (Redeemable + Non-
Redeemable) - Cash & Cash Equivalents)} / (Operating Income + Depreciation + Amortization)
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's
sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into
account the amount of debt a company has, which needs to be paid back at some point. Price per share is
Enterprise Value/Sales as of previous business close, and shares outstanding last reported. Other items are from latest annual
report.
Calculation: {(Market Cap + Debt + Minority Interest + Preferred Stock (Redeemable + Non-
Redeemable) - Cash & Cash Equivalents)} / Revenue
Enterprise Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price

Value/Operating Profit per share is as of previous business close, and shares outstanding last reported. Other items are from latest
annual report.
Redeemable) - Cash & Cash Equivalents)} / Operating Income
Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share
Enterprise Value/Total is as of previous business close, and shares outstanding last reported. Other items are from latest annual
Assets report.
Redeemable) - Cash & Cash Equivalents)} / Total Assets
Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In
Dividend Yield
the absence of any capital gains, the dividend yield is the return on investment for a stock.
Calculation: Annual Dividend per Share / Price per Share
GlobalData
Equity Ratios
These ratios are based on per share value.

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of
Earnings per Share (EPS)
common stock. EPS serves as an indicator of a company's profitability.
Calculation: Net Income / Weighted Average Shares
Dividend per Share Dividend is the distribution of a portion of a company's earnings, decided by the board of
directors, to a class of its shareholders.
Dividend Cover Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders.
Calculation: Earnings per share / Dividend per share
Book Value per Share measure used by owners of common shares in a firm to determine the level of safety
Book Value per Share associated with each individual share after all debts are paid accordingly.
Calculation: {Shareholders Equity - Preferred Stock (Redeemable + Non-Redeemable)} / Outstanding
Shares
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is
Cash Value per Share
determined by dividing cash & equivalents by the total shares outstanding.
Calculation: Cash & equivalents / Outstanding Shares
GlobalData
Profitability Ratios
Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For
most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that
the company is doing well.
Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and
Gross Margin
direct-variable unit costs.
Calculation: (Gross Profit / Revenue}*100
Operating Margin Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency.
Calculation: (Operating Income / Revenue) *100
Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows
Net Profit Margin
how much of each dollar earned by the company is translated into profits.
Calculation: (Net Profit / Revenue) *100
Profit Markup Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Calculation: Gross Income / Cost of Revenue
PBIT Margin (Profit Profit Before Interest & Tax Margin shows the profitability of the company before interest expense &

Before Interest & Tax) taxation.

Calculation: {(Net Profit+Interest+Tax) / Revenue} *100
PBT Margin (Profit
Profit Before Tax Margin measures the pre-tax income over revenues.
Before Tax)
Calculation: {Net Income Before Tax / Revenue} *100
Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the
Return on Equity common stock owners.
Calculation: (Net Income / Shareholders Equity)*100
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital
Return on Capital
investments. ROCE should always be higher than the rate at which the company borrows; otherwise any
Employed
increase in borrowing will reduce shareholders' earnings.
Calculation: Operating Income / (Total Assets – Current Liabilities) * 100
Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio
Return on Assets
measures how efficient management is at using its assets to generate earnings.
Calculation: (Net Income / [Current Year Total Assets + Last Year Total Assets)/2])*100
Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant &
Return on Fixed Assets
equipment).
Calculation: (Net Income / [Current Year Fixed Assets + Last Year Fixed Assets)/2]) * 100
Return on Working
Return on Working Capital measures the company's profitability to its working capital.
Capital
Calculation: {Operating Income / (Current Assets-Current Liabilities)} * 100
GlobalData
Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs (% of Operating costs as percentage of total revenues measures the operating costs that a company incurs
Sales) compared to the revenues.
Calculation: (Operating Expenses / Revenue) *100
Administration costs (% Administration costs as percentage of total revenue measures the selling, general and administrative
of Sales) expenses that a company incurs compared to the revenues.
Calculation: (Administrative Expenses / Revenue) *100
Interest costs (% of Interest costs as percentage of total revenues measures the interest expense that a company incurs
Sales) compared to the revenues.
Calculation: (Interest Expenses / Revenue) *100
GlobalData
Liquidity Ratios
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value
of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-
term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and
mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.
Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the
company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash,
Current Ratio inventory, receivables). The higher the current ratio, the more capable the company is of paying its
obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they
came due at that point.
Calculation: Current Assets / Current Liabilities
Quick Ratio Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.

Calculation: (Current Assets - Inventories) / Current Liabilities

Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks at the
most liquid short-term assets of the company, which are those that can be most easily used to pay off
Cash Ratio
current obligations. It also ignores inventory and receivables, as there are no assurances that these two
accounts can be converted to cash in a timely matter to meet current liabilities.
Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
GlobalData
Leverage Ratios
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to
measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity,
assets and interest expenses.
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on
Debt to Equity Ratio the industry in which the company operates. For example, capital-intensive industries tend to have a higher
debt-equity ratio.
Calculation: Total Debt / Shareholders Equity
Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations,
along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the
company has compared to its equity. This indicates to investors whether a company is more prone to using
Debt to Capital Ratio
debt financing or equity financing. A company with high debt-to-capital ratios, compared to a general or
industry average, may show weak financial strength because the cost of these debts may weigh on the
company and increase its default risk.
Calculation: {Total Debt / (Total Debt + Shareholders Equity)}
Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt,
Interest Coverage Ratio
calculated as earnings before interest & tax by interest expense.
Calculation: Operating Income / Interest Expenses
GlobalData
Efficiency Ratios
Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of
resources.
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A
higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales
Fixed Asset Turnover
revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other
fixed assets.
Calculation: Revenue / [Current Year Fixed Assets + Last Year Fixed Assets)/2]
Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to
Asset Turnover the company. A higher asset turnover ratio shows that the company has been more effective in using its
assets to generate revenues.
Calculation: Revenue / [Current Year Total Assets + Last Year Total Assets)/2]
Current Asset Turnover Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales.
Calculation: Revenue / [Current Year Current Assets + Last Year Current Assets)/2]
Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period.
Inventory Turnover A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales
or ineffective buying.
Calculation: Cost of Goods Sold /[Current Year Inventory + Last Year Inventory)/2]
Working Capital Working Capital Turnover is a measurement to compare the depletion of working capital to the generation
Turnover of sales. This provides some useful information as to how effectively a company is using its working capital
to generate sales.

Calculation: Revenue / (Current Assets – Current Liabilities)

Capital Employed Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales
Turnover revenue to the company.
Calculation: Revenue / (Total Assets – Current Liabilities)
Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets'
Capex to sales
effectiveness when compared to the sales generated.
Calculation: (Capital Expenditure / Revenue) *100
Net income per Net income per Employee looks at a company's net income in relation to the number of employees they
Employee have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity.
Calculation: Net Income / No. of Employees
Revenue per Employee measures the average revenue generated per employee of a company. This ratio is
Revenue per Employee most useful when compared against other companies in the same industry. Generally, a company seeks the
highest revenue per employee.
Calculation: Revenue / No. of Employees
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger
Efficiency Ratio percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its
shareholders.
Calculation: [Non-interest expense / (Net Interest Income + Non-Interest Income)] * 100
GlobalData
Notes
• Financial information of the company is taken from the most recently published annual reports or SEC filings
• The financial and operational data reported for the company is as per the industry defined standards
• Revenue converted to USD at average annual conversion rate as of fiscal year end
About GlobalData
GlobalData is one of the world’s leading providers of company operational data and strategic analysis, providing detailed information on tens
of thousands of companies globally. Our highly qualified team of Analysts, Researchers, and Solution Consultants use proprietary data sources
and various tools and techniques to gather, analyze and represent the latest and the most reliable information essential for businesses to
sustain a competitive edge. Data is continuously updated and revised by large teams of research experts, so that it always reflects the latest
events and information. With a large dedicated research and analysis capability, GlobalData employs rigorous primary and secondary research
techniques in developing unique data sets and research material for this series and its other reports. GlobalData offers comprehensive
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Hangzhou Hikvision Digital

Technology Co Ltd (002415)

Report Code: GDTC1067090FSA

EPS (CNY) 1.02

Source: Annual Report, Company Website, Primary and Secondary

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Section 1 - About the Company

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Hangzhou Hikvision Digital Technology Co Ltd - Key Employees

Name Job Title Board Level Since Age

Chen Zongnian Chairman Executive Board 2008 53

Wu Weiqi Director, Standing Deputy General Executive Board 2003 54

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Hangzhou Hikvision Digital Technology Co Ltd - Key Employee Biographies

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Hangzhou Hikvision Digital Technology Co Ltd - Major Products and Services

Hangzhou Hikvision Digital Technology Co Ltd, Major Products and Services

Pan–Tilt–Zoom (PTZ) Camera

Transmission and Display Products

Digital Video Recorder

Network Video Recorders

Video Encode & Decode Card

Enterprise Network Storage

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Hangzhou Hikvision Digital Technology Co Ltd - History

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Hangzhou Hikvision Digital Technology Co Ltd - Company Statement

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Hangzhou Hikvision Digital Technology Co Ltd - Locations And Subsidiaries

Other Locations & Subsidiaries

Hangzhou Hikvision Digital Technology Co Ltd, Other Locations

Building 2, Waverley office park, 39 Scott streetJohannesburg Suites 31 and 32

18639 Railroad StreetCity of Industry 52nd floor

4848 Levy Street, Saint-LaurentMontreal 2nd Floor

Units 412-413, 4/F Unit 14a

Dirk Storklaan 32132 PX The Park, Office Building AKrakowiakow 50Warsaw

Hangzhou Hikvision Digital Technology Co Ltd, Subsidiaries

HDT International Ltd Hikvision FZE

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Hikvision USA Inc. Hangzhou Hikvision Science and Technology Co Ltd

Hikvision Europe BV Pyronix Limited

Hangzhou Hikvision System Technology Co Ltd EZVIZ Inc

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Section 2 – Company Analysis

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Hangzhou Hikvision Digital Technology Co Ltd - Business Description

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Hangzhou Hikvision Digital Technology Co Ltd - SWOT Analysis

Hangzhou Hikvision Digital Technology Co Ltd - Strengths

Strength - Growth Performance

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Hangzhou Hikvision Digital Technology Co Ltd - Weaknesses

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Hangzhou Hikvision Digital Technology Co Ltd - Opportunities

Opportunity - Global Automotive Industry

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