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.

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

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

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

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

**********:

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*******

****** ***** ***** ******* problems (********, *********** **********, ********* ****** ****, ***.), ***** *** Hikvision ***** **** ******* reserves / ********* ** use (*.*., *********'* $*.* billion).

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********* *** **** ********* and ********* *** *** slowing ******* ******* *** the ********** ** ******** a *********** ******** ******** could ** *** **** for ****. **** ** shaping ** ** ** an *********** **** *** them *** *** ********.

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?

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