Hikvision Admits Sanctions Harming Its Financial Performance

By Charles Rollet, Published Mar 27, 2020, 08:27am EDT (Info+)

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.

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

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

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

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** **********, * *** ****** ** what ****** ********* **** ** *********'* ability ** ******* ** *********, *** company's **** ********* ******* ****** ********** of *** **** *** *****.

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

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

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

** *** ********* ****** ** *** sanctions, ** **** ********** *** *********:

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**** ******** ******** ** ***** ******** from ******* ***********:

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

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***** **** ****, ********* *** *** publicly *******/******* *** ****** ** *** sanctions *****.

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

********* **** ********* **** ***** *** Shenzhen ***** ************ ********* * ******** ******* *** ****'* ******** ** loosen ******* ************.

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

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********* *** *** *** ********* * breakdown ** ******** ** ******** ******** for **** *** **** ****** **** in * ***** *** **** **** clarify *** ************* ******** ***** **** been ********. ** **** ****** **** released.

**********

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Comments (2)

They're big enough to pull through this. They make some excellent hardware that performs better than other manufacturers for a price that makes it a much easier sell to "non-critical" customers, and the NDAA really only affects entities in the US (thankfully, I am not). They also seem to be taking the sanctions seriously and are beginning to make changes. I think they're far less of a boogeyman than Huawei who is - without question - a national security threat.

I'm not happy about Hikvision's controversies, but I can't spec Axis or even Hanwha for a ghetto apartment block and expect to receive the work. Until such time as other big names come up with product lines that perform as good or better than Hikvision's products for at least close to the same price, I will continue to spec Hikvision. It wouldn't be quite as hard a pill to swallow if competitors' offerings weren't double the price and lower in performance.

Call me morally bankrupt if you want, I call it being realistic.

Agree: 4
Disagree: 2
Informative: 1
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I actually believe the Coronavirus pandemic and its associated global recession is likely to have a bigger impact than the US sanctions. Hikvision was growing in much of the world outside the US and that is likely to have alleviated somewhat the decline in US sales.

Take Huawei as a comparison, it has been effectively banned from the US well before Hikvision but until the pandemic was still doing reasonably well due to non-US sales.

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