Hikvision Announces Weakened Profits

By: John Honovich, Published on Jan 19, 2016

Hikvision released a special announcement in Chinese, disclosing weakened profits for 2015 amid fierce competition.

In this note, we examine what happened with Hikvision, the underlying economic conditions and what this means for the Chinese government owned giant.

********* ******** * ******* announcement ** *******, ********** weakened ******* *** **** amid ****** ***********.

** **** ****, ** examine **** ******** **** Hikvision, *** ********** ******** conditions *** **** **** means *** *** ******* government ***** *****.

[***************]

************

** *** ************ [**** no ****** *********], ********* downwardly ******* ***** *** income ******* *** ****. For *** ***** * quarters ** **** [**** no ****** *********], ********* net ****** ********** ********* ~39%, **** ** ********* full **** ***** ** 30-50%. ***, ********* **** for *** **** ****, net ****** ******** **** **** be ** *** **-**% range. ***** **** ****** an ************ **** *** this, ** *********** **** this **** ** * (negative) ******** *** ****.

*********'* ** *** **** 2015 ******* **** *** yet **** ********. **** announcement *** ********* * warning, ********* ***************** ****** ********* ***** ** *****.

******

********* ***** *** *******.

***** ******** / ***********:

"*ue ** *** *****-******** *********** and other factors, the domestic industry market project has been delayed, an increase of l**** **** ********;the ****** *********** ** *** ******** ******, ***** ******* ********" (emphasis added)

********, * ******** ***** tax ****, **** **** are *** **** ******* they **** ** ***** at * **% ** 10% ****. ****:*****'* ****** ********* *** rate** **%, **** **** companies ****** **% *** evidently **** ********* **** Hikvision ******* * ******* tax *** **** ****** **%. ********* *** *** explain *** ***** *** rate ***** ****.

**** ******* *************

*** *** ***** * quarters, ********* ******* **** 56.3%, ***** ** ********** amazing, **** ** ***** of *********** *** ******** dollars, ***** ***** ******* huge ****. *******, ** growth *** **% ******* to ** ****** ** 47%. ********* *** *** comment ** ** ******. 

******* ******* *************

***** ******* ** ** 55%+, ********* *** **** profits *** **** ***** to **** ***** **** that **** *** ****. Despite *** ****** *** already ************ ***** *****, Hikvision ** ******** ************* less **********. ** ***** announcement, **** ********** ****** challenges ** ***** *** domestic ******, ***** **** are **** ******. ** suspect **** *** *** mention ******** ***** ******** still **** ********** * quarter ** ***** ********; however, ***** *** **** higher ***** ** ******* overseas ********** *** ***** reduced ***** ********, ******* are ****** ***** *****.

***** ***** ****** ****** for ****, ******* **** downtrend, **** ***** ****** astronomically **** *** *** video ************ ******** *******. Instead ** ***** ******** 25%+ *** *******, ********* will ****** ***** ******* into *** **-**% *****.

China '*****-******** ***********'

*****'* ******** ******** ** a ***** *****. **** the ******* **********'* ** agency, ******, ************ ***** [link ** ****** *********]:

"******* ********** ******* ******, shrinking ********** *******, ****** fiscal ******* *** ****** financial *****...******* ****** ** *********** in *** *****"

**********:

"** ****** ***** **** be ** ********** *-***** economic ********, *** ***** painstaking ********** *******, *** world *** ****** * more *********** *** ******* Chinese *******."

*** ******* *********, ********** ***** ** not, *** ****** ** in ****. ** **** end, *********'* ******* ***** the '*****-******** ***********' *** 'fierce competition' *** **************. ******, with *** ******* ** it **, *** *** smaller ************* (*.*., ********) struggling ** **** ******, Hikvision *** *** *** domestic ****** ** ******.

*******

****** ***** ***** ******* problems (********, *********** **********, ********* ****** ****, ***.), ***** *** Hikvision ***** **** ******* reserves / ********* ** *** (e.g., *********'* $*.* *******).

*** *** ******** **** be *** **** **** stimulus / ************** ********** will ***** ********. ********* has **** * ***** beneficiary ** ******* **** 2008 ******** ********. **** argue **** *** ******** has **** *********** / wasteful *** ** *** certainly ******* *** ****** and *** **** ** Chinese ******** *********. **** China ******** **** **** levels ** ******** ** will **** ***** **** to * ******** *** economy?

********* *** **** ********* *** ambitions *** *** ******* Chinese ******* *** *** challenges ** ******** * sustainable ******** ******** ***** be *** **** *** them. 2016 ** ******* ** to ** ** *********** year *** **** *** the ********.

Comments (5)

Avatar

Scot MacTaggart

01/19/16 12:53pm

Worst. Surprise. Ever.

This is the game, isn't it? They get into a war of attrition with manufacturers that they believe can't survive it?

John Honovich

IPVM | In reply to Scot MacTaggart | 01/19/16 01:02pm

That they did a special announcement would seem to indicate that it came as a surprise even to them, unless they are just that good that that too is part of the plan :)

Avatar

Scot MacTaggart

In reply to John Honovich | 01/19/16 01:09pm

I understand what you mean, but seriously, part of their attraction to this plan is that they have so much money that it will work despite the fact that they can't forecast exactly how it will unfold.

John Martinez

In reply to John Honovich | 01/22/16 04:03pm

John this is more a political posture than anything else. Think more longterm

John Honovich

IPVM | In reply to John Martinez | 01/22/16 04:08pm

What's a political posture?

Read this IPVM report for free.

This article is part of IPVM's 6,307 reports, 842 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Dahua CEO Is Out on Feb 28, 2020
Dahua CEO Li Ke has resigned less than 3 years after he was brought in from Huawei to professionalize management. Inside this note, we examine...
NetPosa Revenue Plunges 90% on Nov 04, 2019
Revenue for China's long-time largest VMS provider NetPosa plunged 90% in the latest quarter, adding to the firm's serious financial...
Resideo Stock Plunges 37%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today. Not even a year...
Crisis At China's Largest VMS Provider, Netposa, Now State-Controlled on Oct 07, 2019
NetPosa, which bills itself as the PRC's largest VMS provider, is in a crisis. The firm is pursuing huge unpaid bills from clients, and its...
Knightscope Sells Just 1 Net New Robot In 6 Months on Oct 04, 2019
For the first half of 2019, US government records show that Knightscope has sold just 1 net new robots ('machines-in-network'), inching up from 52...
Megvii Financials and Growth Examined on Aug 30, 2019
Megvii has already received more than a billion dollars in investment. Now, the company, a top China facial recognition provider, has filed for an...
In China, Foreign AI Companies Banned or Disadvantaged, Says Top China AI Company on Aug 28, 2019
Non-China (PRC) companies are prejudiced and unfairly targeted inside of the PRC's booming AI market, which not only denies them revenue inside of...
Stanley Makes "Multi-Million Dollar Investment" Into Banned Hikvision Products on Aug 09, 2019
Just days from the US government ban going into effect, US mega-corporation Stanley has dramatically increased its imports of banned Hikvision...
RaySharp Revealed - Major China OEM For Western Consumer Video Surveillance on Jul 02, 2019
RaySharp is mostly unknown, even among people in the video surveillance industry, though it is a major supplier of OEM surveillance equipment such...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...

Most Recent Industry Reports

JCI / Tyco Security Products Layoffs on Jun 05, 2020
Johnson Controls / Tyco Security Products has confirmed COVID-19 related layoffs, expanding upon the April coronavirus cuts the company previously...
EyePark Presents Mobile Driver Authentication on Jun 05, 2020
EyePark presented its long-range QR code parking verification platform at the May 2020 IPVM Startups show. A 30-minute video from EyePark...
Bleenco "Under The Tongue" Temperature Detection Examined on Jun 05, 2020
"Say aah", says Bleenco, a PPE detection video analytics company, offering a different method for measuring body temperature with a thermal...
Hikvision and Uniview Entry Level Thermal Handheld Cameras Tested on Jun 05, 2020
While most screening systems cost $10,000 or more, manufacturers such as Hikvision and Uniview have now released handheld models for $1,000 or...
Sequr Presents HID based Cloud Access Control on Jun 04, 2020
Sequr presented HID based Cloud Access Control at the May 2020 IPVM Startups show. Inside this report: A 30-minute video from Sequr...
VergeSense Presents People Tracking Sensor on Jun 04, 2020
VergeSense presented its people tracking sensor and social distancing insights at the May 2020 IPVM Startups show. A 30-minute video from...
FLIR A Series Temperature Screening Cameras Tested on Jun 04, 2020
FLIR is one of the biggest names in thermal and one of the most conservative. While rivals have marketed fever detection, FLIR has stuck to EST...
"Fever Camera" Show On-Demand Watch Now on Jun 03, 2020
IPVM has successfully completed the world's first "Fever Camera" show. Recordings from both days are posted at the end of this report for on-demand...
Cobalt Robotics Presents Indoor Security and Access Robots on Jun 03, 2020
Cobalt Robotics presented indoor security robots at the May 2020 IPVM Startups show. Inside this report: A 30-minute video from Cobalt...
Dahua Sues Ex-North American President, Says Legal Typo on Jun 03, 2020
Dahua's former North American President Frank Zhang claims he is owed almost $11 million but Dahua counter claims it is just a "scrivener's error",...