China ** **** ** ********
******** ***** **** ***** ********* *** $~2 ******* *** (**% ** ***** revenue) ***** ******** / ************* ***** were ~$*** ******* *** (**%). *********'* non-China **** ***** **** ********** ** **** globally. ** ***** ** ***** **** outside ** *****, ********* ****** **** twice (** ****) ** ****, ***** Hikvision's ***** ***** *** ********** ******** and ******** ** **** ***** *** products ********.
Growth ***** - **** *** ****** ****** *****
*** ** **** (******* ****), *********'* sales **** ** ** ****** ************ 62.8% *** ** *** ******* **** 2014 ****.
******, **** **** **********, ******** ******* ********* sales *** ******* ****** **** ************* sales, **** ******** ****** ******* * few ****** ****** ******** ****** ** 'just' **.*%.
***** *** ******** ********* ** ****** of ***** (** **** ** **** globally), ** ** *** ********** *** they *** ******** ** **** **** fast, ****** ** **** * **** rate, ** ******* **** **** *** suffocating ***** ******** ******.
*************
**********'* *** ******* *** ~**%, ***** is *** ***** *** ******** ****** video ************ ************ (*** ****** **** than ******'* *** *****'*). * '****' net ****** *** * ***** ************ manufacturer ** ********* ** *** **-**%. In ********* *****, ********* ********* ~$*** million *** ** ******* ** ****.
*******, *********'* ***** ******* *** ** the **-**% *****, ***** ** ********** low. ********* **** **** *** ******** generally *** ** *** **-**% *****. The ********** *** ** ********** ** scale. ** ~** ****' **** *** ~8x ********'* ****, **** *** ****** their ******** **** * **** ****** base.
** *** ***** ****, ***** *** overwhelmingly ******** ** ******* ***** **** China, ** *** *** *** *******. Indeed, ***** *** ********* *** ***** expenses Hikvision ** ********* ******** *** *** low ****** ********, ** ** **** to *** *** **** *** ********** outside ** *****, *** ********* ******* near *** ****** **** **** ************.
Dahua **********
** ********, *****, ***** **** ******** rival, ** ******* ******* **** ** fast. ** *** ******** ****, ***** reached ~$* ******* *** ******* ** 2014. *******, ** **** ******* *** up **%, ***** ** ****** ******** to *** ***** *** **** * fraction ** *********'*.
Future ******
*********'* ********** ******* **** ***** ******** Chinese ********** ** ******* ********** **** to ****** ******* ****** ********* *** to ******** ****** ** ******* *******. If **** *********, ** ***** ******* the ************ ** ******* *** ****** global ******.
Update: **** ********
**** *****'* ******** ******* *******, *** overseas ****** ** *** ******* ****** than ********. ********* ** *****'* [**** no ****** *********], "******** ***** **** ** **% ****** by *** *******'* ********* ** *** small- *** ******-***** ********** ******* *** the ***-**-*** *** ******. ************* ***** grew ** **%"
******* ************* ***** *** ******* ******, domestic ***** *** ***** **.*% ** Hikvision's ***** *******. **** ***** / probably **** ****** ** **** ** domestic ***** ****** ********* ** ****.
Comments (22)
Undisclosed #1
Its amazing what a little thing like being 50% owned by the state of a totalitarian govenment can do for ones bottom line.
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Undisclosed Manufacturer #3
As we've seen a huge drop in average market prices for IP cameras/NVRS/HD Analog in the last year, and I would propose that HIK is a major/if not the major force behind that drop, does anyone believe that the domestic Chinese profits are allowing US/Global prices to be artifically low? Basically HIK is selling close to or below cost to gain market share?
My comparsion would be the semiconductor chip dumping scandal of the late 90's. Hynix/Samsung selling memory below cost to force Micron/Texas Instruments out of the market.
Thoughts John and everyone else?
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Undisclosed Manufacturer #4
John,
I'll be there for CPSE too.
"IPVM will be sending Ethan to China next week to further investigat the Chinese market and Hikvision's role."
Feel free to pass my contact info in case if he would like to grap a cup of tea with me at the show.
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Greg Thornbury
IPVMU Certified | 10/23/15 06:20pm
So when will the headlines read that HikVision cameras, all over the planet, have a chipset that lets the Chinese government take a peek at any image they want?
OK, OK, I'll put away my tinfoil hat now and go back to work now.....
:-) Greg
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John Honovich
Update: 2015 Complete
With China's domestic economy slowing, the overseas market is now growing faster than domestic. According to Moody's, "Domestic sales grew by 43% helped by the company's expansion in the small- and medium-sized enterprise segment and the mid-to-low end market. International sales grew by 57%"
Despite international sales now growing faster, domestic sales are still 73.7% of Hikvision's total revenue. This might / probably will change in 2016 if domestic sales growth continues to slow.
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