Hikvision Admits Sanctions Harming Its Financial Performance

By: Charles Rollet, Published on Mar 27, 2020

While Hikvision initially downplayed being sanctioned for human rights abuses, the company is now admitting a significant impact in a new PRC government filing that IPVM has reviewed.

IPVM Image

Inside this note, we examine Hikvision's previous claims, what it's saying now, and what this means for the company overall.

***** ********* ********* ********** being********** *** ***** ****** abuses, *** ******* ** now ********* * *********** impact ** * *** PRC ********** ****** **** IPVM *** ********.

IPVM Image

****** **** ****, ** examine *********'* ******** ******, what **'* ****** ***, and **** **** ***** for *** ******* *******.

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

Hikvision ****** "********** ********"

** ****** *** ***** ******** disclosure, ********* ****** *** sanctions ****** "********** ********" its ***** *** ******** development [******** *****]:

** ****** ****, *** company *** ******** ** the ** ******* ************* Act **** *********** ****.The *********** ** ******** ******* *** **** **********. In October 2019, the company was affected by the US Department of Commerce's entity list sanctions, the ******** ****** *** ********, *** ******** ****** *** ********** ******** ************ **** ******** ** *** *********, *** *** *******'* ******** ****** *** ********** ********** ********. In order to deal with the problem of material restrictions in the United States, the company has adopted measures such as replacing materials, changing product designs, increasing inventory, and expanding upstream technology.

********* **** **** *** sanctions, ***** *********** ****** US ********** **** ******* Hikvision **** ** ***** tech, *** ****** *&* costs ** ******** "*************":

[*********] *** **** *** best ** ****** *** negative ****** ** *********, and *** ********** ** research *** *********** ***increased *************.

********* ********** ****:

** ******** ** *.*. material ***********, *** ******* adopted ************. ********, **** as ******** *********, ******** product *******, ********** *********, and ********* ******** **********, and **** ***** ****** to ****** *********

** **********, * *** factor ** **** ****** sanctions **** ** *********'* ability ** ******* ** solutions, *** *******'* **** important ******* ****** ********** of *** **** *** years.

Prior ********* ******: ********* "*****", "*******", *** "*****"

** ***** ********, ********* had ********** ******* *** sanctions **** "*****", "*******," and "*** ** ***** as ******** ******".********* **** * ***** *** **** ***** the *********, **** *** senior ** ***** ******* stating:

** *******, *** **** majority ** *.*. ********** can ** ******** ******** or ******** ** *** design *********.**********, ** **** *** affect ******* *********** ***the ****** ** *****.

***impact ** ********** *******, and the company can provide alternative products with the same or similar performance.

****** *** **** ********* CEO ** ********* ****** the **** *** "**** than * **** ** preparation ****", ******:

****** ******** ***not ** ***** ** ******** ******. The company had two roadshows in Europe yesterday, but the entire Europe sector only received one call asking what impact Hikvision's inclusion in the entity list would have on the company. Clients have slowly come to understand and accept this matter, they are not as scared as before.

** *** ********* ****** of *** *********, ** also ********** *** *********:

** **** **** * little **** ****** ** the *******'* *******, *** it **** *** **** a ******* ****** ** profits

**** ******** ******** ** media ******** **** ******* like*******:

IPVM Image

****** ******** ****** ******:

IPVM Image

***** **** ****, ********* did *** ******** *******/******* the ****** ** *** sanctions *****.

Hikvision ********* ***** ***** ********** *******

********* **** ********* **** after *** ******** ***** exchange**** ********* * ******** ******* *** ****'* decision ** ****** ******* requirements.

**********, ********* ********* ***** only **** ***** ** two **********: *) **** Hikvision ***** ****** *** above **% *** *) that *********'* ***** ****** was ** *** **** percentile (** *****) ******** to * **** ** peers.

*******, **** **** *****,********* ********* ******* *************** **** *** ** these ********** *** ** be *********. **** ******** in *** ******** ***** exchange ********** ********* ** explain **** **** ** it ***** ******** ******* pressure *** **** ******* shareholders.

Financial ****** ** *********

*** **** ********* ****** of *** ********* ** difficult ** ********* ***** Q4 ** **** ** the **** ******* ** financials **** ******* *** sanctions, ***** ***** *** other ******* ** **** like *** ******* *** economy *** *** ***********.

**** ****** *** *********,********* ******** ** ******** **** ******* *** have *** **** ******* for **** * ****.

********* *** *** *** published * ********* ** domestic ** ******** ******** for **** *** **** should **** ** * month *** **** **** clarify *** ************* ******** sales **** **** ********. We **** ****** **** released.

**********

*********'* ****** ********** **** that *** ****** ** the ********* ** *** as ***** ** ********* once *******, *** *** likely ** ******** ** undermine *** *******.

*******, ** **** ******* are ************** ********* ********* beyond ** ********* *** bans, ********* *********** *** a ********* ****** ********* that ** ** ***** to ** ********* ** determine ***** ******* ********** have *** ******* ******. The *******, ****** ** certainly **** ***** *** preparing ** * **** and * **** ***,*********'* ********* ****: “** **** *****, we **** ** ***** on *** ** *******, how ** **** *** bowl ** ****."

Vote / Poll

Comments (2)

****'** *** ****** ** pull ******* ****. **** make **** ********* ******** that ******** ****** **** other ************* *** * price **** ***** ** a **** ****** **** to "***-********" *********, *** the **** ****** **** affects ******** ** *** US (**********, * ** not). **** **** **** to ** ****** *** sanctions ********* *** *** beginning ** **** *******. I ***** ****'** *** less ** * ********* than ****** *** ** - ******* ******** - a ******** ******** ******.

*'* *** ***** ***** Hikvision's *************, *** * can't **** **** ** even ****** *** * ghetto ********* ***** *** expect ** ******* *** work. ***** **** **** as ***** *** ***** come ** **** ******* lines **** ******* ** good ** ****** **** Hikvision's ******** *** ** least******* *** **** *****, I **** ******** ** spec *********. ** ******'* be ***** ** **** a **** ** ******* if ***********' ********* *****'******* *** ***** *** lower ** ***********.

**** ** ******* ******** if *** ****, * call ** ***** *********.

* ******** ******* *** Coronavirus ******** *** *** associated ****** ********* ** likely ** **** * bigger ****** **** *** US *********. ********* *** growing ** **** ** the ***** ******* *** US *** **** ** likely ** **** ********** somewhat *** ******* ** US *****.

**** ****** ** * comparison, ** *** **** effectively ****** **** *** US **** ****** ********* but ***** *** ******** was ***** ***** ********** well *** ** ***-** sales.

Read this IPVM report for free.

This article is part of IPVM's 6,299 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

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...