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 ***** *****.

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

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

***** ************, ********* ********** ******* their *** ****** ******* for ****. ****** ***** * ******** of ****, ********* *** ****** percentage ********* ~**%, **** an ********* **** **** range ** **-**%. ***, Hikvision **** *** *** full ****, *** ****** increase will **** ** ** the **-**% *****. ***** they ****** ** ************ just *** ****, ** underscores **** **** **** as * (********) ******** for ****.

*********'* ** *** **** 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 ******* **********'*** ******, ******, ************ today:

"******* ********** ******* ******, 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)

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?

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 :)

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

What's a political posture?

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Uniview Beats Intel In Trademark Lawsuit on Aug 19, 2019
Uniview has won a long-running trademark lawsuit brought by Intel, with Beijing's highest court reversing an earlier Intel win, centered on...
Biometrics Usage Statistics 2019 on Aug 13, 2019
Biometrics are commonly used in phones, but how frequently are they used for access? 150+ integrators told us how often they use biometrics,...
US Government Ban of Dahua, Hikvision, Huawei Takes Effect Now on Aug 13, 2019
The 'prohibition on use or procurement' of Dahua, Hikvision and Huawei products and 'essential components' take effect today, August 13, 2019, one...
Hikvision Global News Reports Directory on Aug 11, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
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...
Indonesia Security Association Chairman Interview on Aug 01, 2019
Indonesia is a huge country with a population close to the US and a fast-growing economy. Its security industry is also growing rapidly but faces...
Hikvision Cameras Covering Concentration Camps on Jul 29, 2019
Hikvision cameras monitoring a concentration camp were shown in a recent BBC investigation: The video excerpt shows the Hikvision cameras and...
Australia Security Full Show Report on Jul 25, 2019
IPVM went to Australia attending the 3 days of the Australia Security Exhibition: This was held at the ICC Sydney, as shown below: In this...
History of Video Surveillance on Jul 19, 2019
The video surveillance market has changed significantly since 2000, going from VCRs to ab emerging AI cloud era.  The goal of this history is to...
Hikvision's Government Owner Website Blocked To World on Jul 11, 2019
Hikvision's PRC government owner, CETHIK, has had its website blocked outside of China, hiding a major information source proving Hikvision's...

Most Recent Industry Reports

Dahua 4K Camera Shootout on Aug 20, 2019
Dahua's new Pro Series 4K N85CL5Z claims to "deliver superior images in all lighting and environmental conditions", but how does this compare to...
ZK Teco Atlas Access Control Tested on Aug 20, 2019
Who needs access specialists? China-based ZKTeco claims its newest access panel 'makes it very easy for anyone to learn and install access control...
Uniview Beats Intel In Trademark Lawsuit on Aug 19, 2019
Uniview has won a long-running trademark lawsuit brought by Intel, with Beijing's highest court reversing an earlier Intel win, centered on...
Verkada People And Face Analytics Tested on Aug 16, 2019
This week, Verkada released "People Analytics", including face analytics that they describe is a "game-changing feature" that "pushes the...
Dahua OEM Directory 2019 on Aug 16, 2019
US Government banned Dahua OEMs for dozens of companies. The following directory includes 40+ of those companies with a graphic and links to...
Installation Course - Register Now on Aug 15, 2019
Register Now for the September 2019 Video Surveillance Install Course. This is a unique installation course in a market where little practical...
Axis Suffers Outage, Provides Postmortem on Aug 15, 2019
This week, Axis suffered an outage impacting their website and cloud services. Inside this note, we examined what happened, what was impacted...
Hikvision Scrutinized In The Netherlands on Aug 15, 2019
Hikvision is facing unprecedented scrutiny in the Netherlands, at the same time the US government ban has taken effect. This week, a Dutch...
Axis 4K Camera Shootout 2019 on Aug 14, 2019
Axis' 4K Q3518-LVE claims the "best video quality possible", with Lightfinder super low light performance, Axis' high end Forensic WDR, and...

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