Hikvision CEO And Vice-Chair Under PRC Government Investigation

By: John Honovich and Charles Rollet, Published on Nov 14, 2019

In a surprising and globally covered move, Hikvision CEO Hu Yangzhong and Vice-Chairman Gong Hongjia are being investigated by China's securities regulator for "suspected information disclosure violations", Hikvision disclosed in a brief letter to investors.

This move was quickly reported around the world, with few details, ranging from:

Indeed, even PRC state-media Global Times covered it:

No one has publicly made clear how serious this 'suspicion of illegal information disclosure' is.

However, one thing not being reported by global media is the importance of Hu Yangzhong or "Mr. Hu" as he is reverentially referred to by Hikvision employees who have spoken to us over the years.

The move is surprising given that state-controlled Hikvision has extensive PRC government connections and is currently a high-profile target of US government human rights sanctions.

While Hikvision (the company) is distancing itself, Hu Yangzhong has long played a central role leading the firm, meaning this could have a significant impact regardless. In this note, we examine this investigation, including:

  • Few Official Details/Undisclosed Bonus Allegations
  • Hikvision Response: Individuals, Not Company, Under Investigation
  • Impact is Clear
  • Terrible Timing for Hikvision
  • Political Factors at Play?
  • Legal Consequences
  • Investigation Widely Reported in West and PRC
  • Hikvision Stock Impact
  • Unwelcome Development in Home Market

** * ********** *** globally ******* ****, ********* CEO ** ********* *** Vice-Chairman **** ******* *** being ************ ** *****'* securities ********* *** "********* information ********** **********", ****************** ** * ***** letter ** *********.

**** **** *** ******* reported ****** *** *****, with *** *******, ******* from:

******, ******* *****-***** ****** ***** covered **:

** *** *** ******** made ***** *** ******* this '********* ** ******* information **********' **.

*******, *** ***** *** being ******** ** ****** media ** *** ********** of ** ********* ** "Mr. **" ** ** is ************* ******** ** by ********* ********* *** have ****** ** ** over *** *****.

*** **** ** ********** given *********-******************* *** ********* *** government *********** *** ** currently * ****-******* ****** of ** ********** ***** rights*********.

***** ********* (*** *******) is ********** ******, ** Yangzhong *** **** ****** a ******* **** ******* the ****, ******* **** could **** * *********** impact **********. ** **** note, ** ******* **** investigation, *********:

  • *** ******** *******/*********** ***** Allegations
  • ********* ********: ***********, *** Company, ***** *************
  • ****** ** *****
  • ******** ****** *** *********
  • ********* ******* ** ****?
  • ***** ************
  • ************* ****** ******** ** West *** ***
  • ********* ***** ******
  • ********* *********** ** **** Market

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

Few ******** *******, ******** ******* ** *********** *******

*********'* **************** *** ************* ******** no ******* ******* ***** the *************'* ******, ****** the **** **** **'* related ** ********** ** mandatory ********** ************.

*******,******* ************* ** ********* ******* that *** ************* "********* to *** **** ******* of ** ******** ***** plan [***] *** **** declared". ******* *********** **** reported ***** ******** **** ****** Securities *****:

**. **** **** **** because *** *******'* *********** is ******, ** **** some ********** ** *** employees, *** *** *** disclose ** ** *** stock ********.

********** ***** *** *** mention *** ** ********* was ***** ************ ** well. **** ***** ********* about ***** ****** *** we *** *** ******* a ******** ** ****.

UPDATE: ****'* ****** ********* **** ****** ** *************

********** ***** **** ********** ********* ********* ***** stated *** ************* ** directed ** ****'* ***** incentive ****:

*** ************* ** **** case ** ******** **Mr. **** *******'* ******** *************, which will not affect his normal performance in the company, and the company's production and operation activities will not be affected. The ******** ************ *** ******* ** *** ****** ********* **** ******** *** *********** ** *** ******* *** *** **** ********** ***** ** *********, and has nothing to do with the company and other directors, supervisors and senior managers of the company. Mr. Gong Hongjia will actively cooperate with the investigation work of the China Securities Regulatory Commission and fulfill the information disclosure obligations in strict accordance with the regulatory requirements. Special announcement. [emphasis added]

********** ***** ** ********** an ************* ****** ** it ** ************* ***** ********** *****'* ******** *********, the ***** ********** ********** Commission.

Bonuses **********

********* ******* ********* ******** ****** ********* plan ** * *********** advantage. *******, **** *********'* stock ***** **** ****** 25% ***** *** **** peak *** ******* ****** more ********** **** **** before, **** ** ****** pressure, ********** **** **** complaints ** ***** ******* conditions:

********, ********** ** ** *** company *** ********* ****** 9:00, *** ******* *** off **** ***** *:** in *** *******

** ******,*** ******* ****** ********* is ***** **** *** old *********.

*******, *********'********** ** *** **** BAT ****** *** **** Internet *********.

**** **** ** **** seen **** ******* *******, Hikvision **** ********* '***' ********** ******* trend- **** ********* **** 6 **** * ****, 12 ***** * *** so **** ** ********* not ****** ** *********. However, **** *****'* ************ overall *******, **** *** created *** ********** ** encourage ********* ** **** such ********* ********* ** the *******, ***** ** stock *****, ** *** sufficient.

Hikvision ********: ***********, *** *******, *** ***** *************

********* **** **** **** this ***** *** **** targeting *** *** *********** - ** ********* *** Gong ******* - ****** than ********* ******:

*** ******** ** ************* from **** [***** ********** ********** **********] **** ******** *** mentioned ***** ****** ***********, instead ** ** *** company. ********* ******** *********** disclosure *********** ********** **** regulatory *********** ********.

**** ** *********** **** but ********* ****** ***** the ********** ** **. Hu ** *********.

Hu ****** ** *****

*** ************* ** ** Yanghzong ***** * ****** to *** **** ***** his ******* **** ** managing *** ******* *** the **** ** *** clear ********** ** ***.

*** ********* ** ********* employees ** **** ****** with **** *** **** decade ** **** **. Hu ** *** ****** of *********'* ********** *** decisions.

********, **. **, ********* to ***** *********'* *********, is *** ********** ****** of *********'* ************* ******** growth ***, ******, ********* employees **** ********* ********* respect *** **** ***** and *****.

Gong **** *********

** ********, *** ************* of **** ******* ** far **** ******** ** Hikvision's **********. ***** **** has * ****** "**** chairman" *****, **** ***** Hikvision ******** ***** ****** role ** ******** ******** the *******. ** *** media, ** ** ******* known ** "*** **** ****" *** ************ ******* out *** *****.

Major ************

**** *** *** ***** Hikvision ************. ** ********* directly **** *.**% ** Hikvision, ***** ** ********* worth ***** $*** *******, according ** *********'*** **** ******. **** ******* ******** owns **.**% ** *********, currently ***** ***** $* billion. ***** **** ** far ****** **** **, Hu ** *** **** vital ** *********'* **********.

Poor ****** *** *********

** ** ********** *** the *** ********** ** publicly ****** **** ************* at **** * ******** juncture *** *********. *** company ************* ** *** ** government **** ***** ********** * ***** *** and *** ** ****** access ** ****** *****/**. It ** *** ****** a******* ** ********** ************ ******** ***********.

Strange ***** *********'* *** *** ***********, ********* ******* ********

********* *** ****** ****** extremely ****-********* *********** ** China, **** *********** * *** ********** delegate*** ******* ***** ** support **** *** *** officials (********** ********** ******* ********* For ********* ** *******,********* ********** ** ******* Visit).

*** ********** ***** ** that ********* *** ****** political ***** ************* **** ***** ***** such * ****** **** of **** ** *****.

Chairman **** - ***** ** **?

***** ***** *** ***** members *** ********** ** the *************, *******, *********** ** *** *****, Chen ********, *** **** ** Mr. **, *** *******'* Communist ***** ********* *** NPC ********, ** ***.

**** ** ******** *** Hikvision ** **** ** is **** **** **** but ** ** ******* to ** *** **** relates ** **** ********* 'illegal *********** **********'. *** Chen *** **** ***** it? ***** **** *** help ** ** ******** from **** ****** *************?

Potential ***** ************

********* ** ************* *** ** *** PRC, *** ********** ********* can ****** ************** ********* (such ** *****), *** if *** ********** ****** to ******** ****, "** shall ******** *** ****" to * ******** ******** court.

Stock ******

*********'* ***** **** ****** 5% ** *** **** but **** ****** **** part ** *** ****, ending *** ******* *** down *.*%:

Outlook *******

****** *** **** ********* about *** ***** ****** of **** ************* ** the ******** ***** ****** is ********* ** *******.

*** ****-**** ******** *** Hikvision ** **** **** is * ***** **** nuisance *** **. **, no ***** ****** ** taken ******* **. **, and *** **** **** is ***** ** *** investigation. ** **, ****** will **** ****** ***** this.

*******, ** *** ************* undermines *** ******* ** Mr. ** ** ******* Hikvision, ** ***** ******** the ********** ** * company ******* ***** *********** overseas ******.

Vote / ****

Comments (5)

Anthony Jones

11/14/19 02:05pm

**** ** ******** **** a **** ** **** face. ***** **** **** be **** ** **** guys, **** *** *****. Hikvision **** ******* **** removed *** *** *****. Yadda, *****, *****.

John Honovich

IPVM | In reply to Anthony Jones | 11/14/19 03:14pm

***** **** **** ** used ** **** ****

**'* ******** *** * don't *** **. **. Hu, ** *** ********, seems ** ** * strong ******** *** *********. How *** ********* ** better *** **** * weakened ** ******* **. Hu? ******* ********, ****** with *****?

Avatar

Ross Vander Klok

IPVMU Certified | In reply to Anthony Jones | 11/14/19 06:36pm

* *****. * ***** the **** **** ********** this ** *** ***** those *** *** *******. Probably *** ** ****** all ***** ***** "*** the ******" *** ******* them ****.

Undisclosed Integrator #1

11/14/19 02:33pm

***** *****... **** ************ disclosed ** *** **** that **** **** ******** analytics ** ******** *******?

Avatar

Charles Rollet

12/06/19 09:19am

******: ***** ***** *** no *** ******** ************* about **** *************, ** continues ** ** *********/********** about ** *** *****.

*** ******** ******** *****, a ******** *********, ********* an******* *************** *** **** **** Hongjia *** ** ********* have *** ******** ***** transactions ******* **** ***** in *** ****, **** Gong *********** ********* *** Hu ********** ***. *** NBD ********** **** ***** have *** ** ** obtaining ***** ***** *** table, *********** ** *****-****-****** prices.

*** *********** **** ** that *** ** *** stock ****** ************ (************ for *****-****** ***** **** Hikvision,) ****** ********* ******** were ****** ** *** their **** ***** *******, so **** *** ** out ** *** *** pocket ******* ******** ********* this.

****** ****** ******* ********** ******* *****, ****** **** **** if **** **** **** stock ** **** *****, the ******** ** ******* it *** **** ** a ***** ********* ***:

** ** ***** *** the **** ** *** the ******** * *** envelope [****]? ** ****,it ** ******** ** ** *** ****** **** **** ********** ** *** ** *** ****** *** *****.

*******, * ******** **** outlet ****** ****** **************** ** ************** *** ******* ************* between ** *********'* ******** salary ** ****-**** *** his ***** ***** ********* around **** *** ****.

*** **** **** **** case ** ***** *********/********** about ** *** ***** is ******* - **** is * ******* **** some ** *** *****'********************. ***** ***** ** no ****** ***** ** this *********, ** ***** be ******** ** *************** with ******* ********* ****** from *** *** **********'* higher ********.

Read this IPVM report for free.

This article is part of IPVM's 6,298 reports, 840 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

Hikvision CEO And Vice-Chair Receive Warning, Government Investigation Concluded on Mar 16, 2020
The China Securities Regulatory Commission (CSRC) has concluded their investigation into Hikvision's CEO and Vice-Chair, issuing a warning but no...
White House Proposes Blacklist of Dahua, Hikvision Users on Feb 04, 2020
The White House is proposing to blacklist Hikvision and Dahua users from federally-funded contracts, even if their use of this equipment is...
Hikvision CEO Alleged Illegal Activities Investigated on Dec 13, 2019
Hikvision's CEO Hu Yangzhong is under investigation for suspected illegal activities, according to the PRC's securities regulator. This has become...
Senator Vitter Becomes "Proud Member Of The Hikvision Team", Calls Out "Anti-China" Rubio on Oct 29, 2019
Senator turned China lobbyist David Vitter has become a self-proclaimed 'proud member of the Hikvision team', a China (PRC) government-owned...
Hikvision Dissolves North American Business Unit, Splits Canada and USA on Oct 15, 2019
Hikvision has dissolved its North American Business Unit, splitting up US and Canada operations as the PRC-government owned manufacturer faces...
Hikvision And Dahua Sanctioned For Human Rights Abuses on Oct 07, 2019
In a groundbreaking move that will have drastic consequences across the video surveillance market, Dahua and Hikvision have been sanctioned by the...
US State Department: "Chinese Tech Giants" "Tools of the Chinese Communist Party" on Sep 12, 2019
The US State Department has called out "Chinese tech giants" for being "tools of the Chinese Communist Party" in a blunt new speech that makes...
Hikvision Lobbying Against And Preparing For Potential US Sanctions on Sep 09, 2019
Hikvision has been lobbying against and preparing for potential US sanctions, according to US government records, financial filings and partner...
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...
Ban Proceeds But White House Requests Delay of Hikvision / Dahua Partner Blacklist on Jun 10, 2019
While the August 2019 start of the US government ban on buying Dahua, Hikvision, Huawei, etc. proceeds, the White House's budget director is...

Most Recent Industry Reports

LIVE NOW "Fever Camera" Show on Jun 02, 2020
IPVM is excited for the world's first "Fever Camera" show, to be held today Tuesday, June 2nd and Wednesday the 3rd from 11am to 4pm EDT, giving...
Smart Entry Systems Presents Cloud Multi-Tenant Access Control on Jun 02, 2020
Smart Entry Systems presented Cloud Multi-Tenant Access Control at the May 2020 IPVM Startups show. Inside this report: A 30-minute video...
Genetec Drops Support for Dahua and Hikvision on Jun 01, 2020
Genetec has dropped support for Dahua and Hikvision, citing US blacklisting and ONVIF conformance blockage, the company informed partners in an...
Dotty "Hot Or Not" Elevated Body Temperature App Tested on Jun 01, 2020
What if you could take an existing phone or tablet and transform it into "fever camera"? That is what DottyAR is doing with their strangely named...
Optris "Fever Screening Systems" Examined on Jun 01, 2020
German manufacturer Optris has been building temperature measuring instruments for industrial manufacturing for over 15 years, and thermal cameras...
Fever Camera Sales From Integrators Surveyed on Jun 01, 2020
Fever cameras are the hottest trend in video surveillance currently but how much are integrators selling them? 220 integrators answered the...
Proxy Presents Mobile Credentials For BLE Devices and Access on May 29, 2020
Proxy presented Mobile Credentials For BLE Devices and Access at the May 2020 IPVM Startups show. Inside this report: A 30-minute video...
ISC West 2020 Moves To The Basement on May 29, 2020
The twice cancelled/postponed show will now not only be held in a different month (October) but on a different floor, moving down to the...
Integrators Avoiding Coronavirus Air Travel on May 29, 2020
IPVM asked integrators if air travel is part of their 2020 plans to see how significantly Coronavirus will impact future...
Viakoo Presents Cyber Hygiene for Cameras on May 28, 2020
Viakoo presented its 'Cyber Hygiene' and 'Service Assurance' products at the April 2020 IPVM New Products show. Inside this report: A...