Hikvision PRC Government Owner CETHIKBy John Honovich, Published Nov 20, 2017, 02:46pm EST
Hikvision deceives about its PRC government ownership.
Contrary to their claims about 'independence' and simply having 'shareholders' that are 'state-owned', Hikvision is controlled by a PRC government entity (CETHIK) that exists specifically for running Hikvision. In this note, we expose this ownership, sharing proof from their own Chinese language records.
Hikvision deceives about the 'SOE' they note, which is CETHIK. As the last three letters indicate, CETHIK is a PRC government organization that controls Hikvision. CETHIK, and its government parent, CETC, do not simply 'own' shares, as 'passive' investors in companies. This information is hiding in plain sight, at least in Chinese, and can be reviewed at www.cethik.com.
Same Naming / Group Leadership
Hikvision's PRC government parent is the "CLP Hikvision Group Limited" (from the cethik.com website). The name clearly references what CETHIK does, it is a government run group centered around Hikvision, as their own graphic shows:
Hikvision Core Of That Group
CETHIK / CLP Hikvision Group reports:
achieved  revenue of 33.91 billion yuan, a total profit of 8.25 billion yuan.
This contradicts Hikvision's marketing claim of being 'independent' as CETHIK claims Hikvision's revenue as their own. Hikvision reported 2016 revenue of 31.9 billion yuan and profit of 7.4 billion yuan. Hikvision is ~90% of CETHIK's revenue and profit, showing that CETHIK is literally little more than Hikvision.
And if CETHIK was simply a 'shareholder', as Hikvision marketing alleges, than CETHIK could not claim Hikvision's revenue as their own.
CETHIK Claims Hikvision Employees
Moreover, CETHIK claims Hikvision's ~20,000 employees as its own, declaring:
I would like to thank more than 20,000 serving staff for your dedication and hard work and for today's CLP Hikvision.
Again, this contradicts Hikvision's marketing claim that they are 'independent' and that CETHIK is just a 'shareholder'.
The leader/chairman of CETHIK, Chen Zongnian, is simultaneously the chairman of Hikvision, shown on CETHIK's leader's speech webpage and in the image below:
Indeed, Hikvision's own financials (see p. 56) expose Hikvision's marketing deception, showing that CETHIK is Hikvision's controlling shareholder.
The fact that these organizations share the same chairman, claims the same revenue and employees shows that CETHIK controls Hikvision.
Do Not Blame Hikvision Overseas Employees
Hikvision overseas employees are not to be blamed here. Hikvision management is hiding this from them as well. Given local employee's general lack of knowledge of Chinese language and PRC government structure, this is not something they could easily determine for themselves. Worse, these Western employees have it even harder as they are caught in the middle and on the front lines of this.
Blame Hikvision PRC Leadership
Trust Problems For Hikvision
That Hikvision is willing to deceive people about something that can so clearly and distinctly be disproven by their own Chinese language documentation raises serious concerns. How does one trust a company that does this? And if Hikvision is going to be deceptive about this, what other things, like cybersecurity, are they willing to deceive about?
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