Hikvision: PRC Government "Exert Significant Influence Over Our Business"By IPVM Team, Published Mar 28, 2018, 04:11pm EDT
In an investor prospectus, Hikvision disclosed that the PRC China government, as their controlling shareholder:
will continue to be in a position to exert significant influence over our business and other matters of significance to us.
has substantial control over [Hikvision] and their interests may not be aligned with the interests of our other shareholders
may improperly control the significant business, finance and personnel of [Hikvision] by way of exercising the voting rights, which will damage the interests of [Hikvision] and its other shareholders.
This is from the investor prospectus p.33, the full paragraph below:
Recall CETHIK is the PRC government division created expressly to manage Hikvision and that the PRC government has controlled Hikvision since they created it in 2001.
Not only does the PRC government have such control, Hikvision also touts strong support from the China (PRC) government as well acknowledging their 'state-owned parent' (CETC / CETHIK):
Moreover, the prospectus discloses that the Chinese government offers "substantial fiscal subsidies" to Hikvision:
Additionally, the prospectus reports the Chinese government provided Hikvision a total of 732,000 square meters of land for their headquarters and factories (p.87).
Contrary to Hikvision Marketing
To the contrary, Hikvision's overseas marketing has repeatedly portrayed Hikvision as a commercial entity simply with private and public shareholders (e.g., Security World: Hikvision responds to accusations of being a cybersecurity risk).
Being "substantially controlled" and subject to "significant influence" of the authoritarian and aggressive PRC government, by Hikvision's own acknowledgment, means that Hikvision’s customers, integrators, and OEMs are at risk to the actions of the PRC government.
21 reports cite this report:
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