Hikvision Gets $3 Billion From Chinese Government Bank

Author: John Honovich, Published on Dec 09, 2015

Hikvision has secured the biggest financing ever in the video surveillance industry.

Despite the groundbreaking news, Hikvision has been strangely quiet about it, with no English language announcements nor celebrations.

However, Hikvision and their largest shareholder, a Chinese government owned entity, did announce and explain it in Chinese.

In this note, we examine the financing and how the Chinese government bank is empowering Hikvision's international 2.0 strategy.

Financing Overview

The China Development Bank, one of the 3 government owned policy banks, is providing 20 billion yuan (~$3.1 billion USD) financing to Hikvision from 2015 - 2019. This looks to be credit / debt financing, not equity (though Hikvision is already largely owned by a different Chinese government entity).

Financing of ~$3.1 billion USD is quite tremendous, even for Hikvision's size (with nearly ~$2.8 billion USD revenue last year). The company has grown ~60% so far in 2015 and is clearly focused on continued top line growth.

International Expansion

Hikvision's President explained the strategy in the release on Hikvision's government owner's website:

"The implementation of international Hikvision 2.0 strategies to strengthen Overseas localization services for capacity-building, providing a comprehensive, multi-channel capital protection.... strategy to jointly carry out an important measure of global strategic layout, to further enhance our security products international competitiveness and global brand influence has an important role in promoting." (Google Translate)

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

Hikvision would not comment nor clarify to IPVM about the financing.

Abandoned Hong Kong IPO

At the beginning of 2015, Hikvision planned to do a Hong Kong IPO (in addition to their Shenzhen listing) of $1+ billion USD for international expansion. However, that was put 'on hold' after the market turmoil of the first half of the year. This new Chinese government financing makes that not critical.

Impact

For a global market (including China) that is ~$15 billion, ~$3 billion is an immense amount of funds to support global expansion and minimize needs for even mid-term profitability or cash constraints.

This financing is a critical component to power Hikvision to continue the pace of their rapid global expansion.

Hidden

On the other hand, the way Hikvision has handled this has shown their approach in (not) communicating with the rest of the world about critical news. As a Hikvision defender recently declared:

"So is Hikvision hiding something? Not if you can read Chinese."

Given this financing and Hikvision's approach, you may need to learn Chinese.

Comments (34) : PRO Members only. Login. or Join.

Related Reports on China

Hikvision Wins Chinese Government Forced Facial Recognition Project Across 967 Mosques on Jul 16, 2018
Hikvision has won a Chinese government tender which requires that facial recognition cameras be set up at the entrance of every single mosque...
US Tariffs Hit China Video Surveillance on Jul 13, 2018
Chinese video surveillance products avoided tariffs for the first two rounds. Now, in the third round, many video surveillance products will be...
Hikvision Fights Ban - Claims 'Red Scare', Hires 14 Term Ex-Congressman on Jul 11, 2018
Hikvision is fighting back against the House Bill Ban of their products. Hikvision has hired one of the biggest lobbying firms, led by a 14 term...
Arlo IPO Filing Reveals Key Financial and Competitive Details on Jul 09, 2018
Arlo is going to IPO at a projected valuation greater than Axis. Now, Arlo has released their 175-page Form S1 Registration Statement for its...
2018 Mid-Year Surveillance Industry Guide on Jun 28, 2018
2018 has been an explosive year for the video surveillance industry, with the industry becoming a global political issue, with the expansion of...
China Public Video Surveillance Guide: From Skynet to Sharp Eyes on Jun 14, 2018
China is expanding its video surveillance network to achieve “100%” nationwide coverage by 2020, including facial recognition capabilities and a...
Debating Relevance of China Hacking US Navy Plans on Jun 11, 2018
"Chinese government hackers have compromised the computers of a Navy contractor, stealing massive amounts of highly sensitive data related to...
Remove Dahua and Hikvision Gov Installs Required By US House Bill Ban on Jun 06, 2018
The final released US House Bill HR 5515 verifies that it not only prohibits the purchasing of Dahua and Hikvision products, it requires removing...
Hikvision Chairman Affirms China Communist Party Leadership, Celebrates Marx's Birthday on Jun 06, 2018
At a recent event commemorating Karl Marx’s 200th birthday, Hikvision Chairman Chen Zongnian stressed the importance of strictly adhering to the...
Dahua Products Are Not GDPR Compliant, No Products Can Be on May 29, 2018
Dahua products are neither GDPR-compliant nor certified, contrary to their marketing. The reason is that no products can be, as the EU does not...

Most Recent Industry Reports

Directory of Video Surveillance Startups on Jul 18, 2018
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known entity...
Ladder Lockdown and Ladder Levelizer Tested on Jul 18, 2018
Ladders are a daily necessity for surveillance and security installers, but working on an unstable surface can be extremely dangerous. In addition...
FST Fails on Jul 17, 2018
FST was one of the hottest startups of the decade, selected as the best new product at ISC West 2011 and backed with tens of millions in...
Axis ~$100 Camera Tested on Jul 17, 2018
Axis has released their lowest cost camera ever, the Companion Eye Mini L, setting their sights on a market dominated by Hikvision and Dahua. Can...
Amazon Ring Alarm System Tested on Jul 16, 2018
Amazon Ring is going to hurt traditional dealers, and especially ADT, new IPVM test results of Ring's Alarm system underscore. IPVM found that...
Hikvision Wins Chinese Government Forced Facial Recognition Project Across 967 Mosques on Jul 16, 2018
Hikvision has won a Chinese government tender which requires that facial recognition cameras be set up at the entrance of every single mosque...
Installing Dome Cameras Indoors Guide on Jul 16, 2018
IPVM is producing the definitive series on installing surveillance cameras. This entry covers one of the most common scenarios - installing dome...
Security Sales Course Summer 2018 on Jul 13, 2018
Based on member's interest, IPVM is offering a security sales course this summer. Register Now - IPVM Security Sales Course Summer 2018 This...
US Tariffs Hit China Video Surveillance on Jul 13, 2018
Chinese video surveillance products avoided tariffs for the first two rounds. Now, in the third round, many video surveillance products will be...
Last Chance - July 2018 IP Networking Course on Jul 12, 2018
Registration ends today, Thursday. Register now. This is the only networking course designed specifically for video surveillance...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact