Hikvision Global Revenue Falls, Hit By Coronavirus

By Charles Rollet, Published Apr 27, 2020, 08:41am EDT

Hikvision's global revenue fell in the first quarter of 2020 due to the coronavirus, with Hikvision stating uncertainty for 2020 "is greater than in any previous year" and dropping sales projections. However, Hikvision said better years were still ahead and touted its "conservative" financial strategy.

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The firm also announced ~$8.1 billion in sales for 2019 (prior to any coronavirus impact). While this number is an all-time high, sales and profit growth hit decade lows, with Hikvision partly blaming the impact of US human rights sanctions.

In this post, we examine the coronavirus' impact on Hikvision and its latest financial disclosures, including:

  • Coronavirus Impact: Sales Drop 5%
  • "Uncertainty Greater Than In Any Previous Year"
  • Hikvision Claims Better Years Ahead
  • Will "Control Growth of Staff Size", Could Reduce Outsourcing
  • Retail Customers Hit Hardest
  • No New Sales Data on Fever Cameras Yet
  • 2019 Sales Hit $8.1 Billion, Growth Hits Decade Low
  • Results "Can't Be Separated" From US Sanctions
  • China Sales Slightly Higher, North America Sales Negative
  • Final Analysis: Tough Times Ahead

Coronavirus ******: ***** **** *%

******* ** **** **** **** *.**% to ***** $*.** ******* year-on-year, ***** ******* **** 2.59% ** $*** ******* (figures ***** *** ** Chinese ****):

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** ****'* ***** ******* followed * **** ** 2019, **** ********** ** growth ***** *****:

Hikvision ** *****: "*********** ******* **** ** *** ******** ****"

********* **** * ** earnings ******** *** ** ********* and **** ********* ***** Fanghong (**'* *** ***** exactly *** *** ********). In *** ****, ********* said *** ******** *** "disrupted" *** "****** ******** rythm" ******* ************* ***********:

** ****, *** ******** of [*****-**] *** **********, the ****** ******** ****** was *********, *** *** real ******* *** ******* affected [...] *** *********** of *** ******** *********** in **** ** ******* than ** *** ******** year

*** ** ***** "************* uncertainties", ********* ******* *** guidance, ******* ****** ***** ****** ************:

********* *** ******** *** the ***** **** ** 2020, *********** *** *** coronavirus ******** ********* *** macroeconomic *************, *** ******* maintains ********** ********* *** a ******** ********, *** does *** ******* *********** guidance *** *** *********** of *** ***** **** of *** ****.

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

********* **** ** *** "confident" ** ***** ******* the *****, ******* ~$*.* billion ** **** ******** and ************ **** ******:

*********’* ********* ***** *** always **** ******,its ********* ******** ** ********** ************, and its books have maintained a **** ********** ** ****. Cash and equivalents at the end of 2019 are 26.516 billion yuan [$3.7 billion], asset-liability ratio is 39.66%. The ******* ** ********* to deal with challenges in all aspects smoothly. The company's overall strategy in 2020 is summarized in 9 words: "control risks, ensure growth, and seek development." [emphasis added]

***** ********* **** ******* from *** *** ** 2019, *** ** ****** shows **** *** **** equivalents *** *** ** $3.2 ******* ****, ***** half * ******* ******* lower. *******, ********* ******* pessimistic ***** **** (***************** speaking) **** ** *** worst **** ** *** 2010s *** **** ** the **** ** *** 2020s:

** ******* **** **** will *** ** *** best **** ** *** next ******.

Impact ** ******: **** "******* ****** ** ***** ****"

***** ********* ****** *** world *** ****** *** staff, ** *** **** Hikvision **** ** ***** only "******* *** ****** of ***** ****". ********* had **,*** ********* ** the *** ** ****, a *,*** ******** **** the *** ** ****. Hikvision ******* ** ***** not ******* ********** ****** it **** **** **** to ******** ********** **** summer:

**** **** ** ****control *** ****** ** *** ***** ****, but not without growth. We still have a lot of job fairs, including last year ’s offer to fresh graduates. This **** ** **** ****** ***** ********* ** ****. The company has needs, but also has responsibilities and obligations to fulfill agreements, and will *** ***** *** ******** ******* ** ************. [emphasis added]

**** ** *** ******** growth **** **** **** said ** ** ** R&D.********* ********** ************ * ***** ****** increasing ***** *** ****** R&D ******** ** ** prepared *** ********* ******.

Possibly ******* ***********

********* **** **** ** would ****** *********** ** revenues ******** ** ****:

******* ********* *** * large ********** ** ************* outsourcing, ***** ** * certain ****** ** ***********.

**** ** *** ***** Hikvision ********** ********* **** has **** ***** *********** outsourcing *** ** **** unable ** **** ***** products ** ********** *** who ***** ****.

Smaller ********* *** *******

********* **** **** ************, coronavirus ***** ******* **** opportunities ** *** ********** business *** **** *** small *** ****** *******:

********** ********, ** **** bring **** **** ******* on *** [********** ******** group] *** **** ******** impacts ** **** [***** and ****** ******** *****], especially *** ******* ********, retail ******** *** ***** industries, ***** *** ********** hard ***.

********* **** *** ******** 2019 *** ******** ******* was ***** $*.** ******* compared ** $*.** ******* for **** *** $*.* billion *** *** [****** business ***** *.*. ********** spending.] *********'* ***** ******** revenues **** *** ********** and ********** ******* *** a **** ***** *** disproportionate ****** ** *** virus ** ******* *****.

No *** ***** **** ** ***** ******* ***

********* **** ** **** sold ***** *,*** ***** cameras * **** ***** to *** ********, *** declined ** **** **** details ***** ******* ***** at *** ******, ******* stating *** ******* ** the ******* *** "******" (amid ******* ******** ** price *******):

*** ******** ** *********** measurement ******** ** *** Chinese ****** ****** *** epidemic ** **** *****.Human ******** *********** *********** ******** **** **** * ***** ** ***** *,*** * ****. After the outbreak, Hikvision quickly launched a variety of infrared temperature measurement products, and the market is in short supply. We haven't disclosed the sales data at present, so we **** ******** ** ** ** *********** ****. Our pricing for infrared temperature measurement products is very stable, and there ** ** ******** ** ******* ******* *** ** ***** ****** *** ******.In the face of disaster, I feel that companies have their own missions and should do more for society. [emphasis added]

2019 ***** *** $*.* *******, ****** **** ****** ***

********* **** ******** ******* ****** ******, ********** ***** ** $8.1 *******, ** **.**% from ****, ******* **** a ******* ** ********* sales ******:

****** ****** *** *.**%, also * ***. ** the ******** ****, ********* admitted ** *** "*** worst ****" ** *** past ****** ** ***** of ******:

**** ***indeed *** ***** **** ** *** **** ****** in terms of revenue and profit growth. For all of the company's staff, it was certainly the toughest year too. Although the management can't say it is satisfied with this performance, we still want to extend our gratitude to all the internal and external friends who have made efforts and support us. [emphasis added]

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Results "***'* ** *********" **** ** *********

***************** ************* ***** ****** ********* as "*****", "*******," *** "not ** ***** ** everyone ******", ********* ****** their *** **** ****** in **** ** *** sanctions, ***** ****** *** sale ** ** ****** tech ** ********* *** forced *** **** ** stock ** ** **********:

*** ****** **** *********can't ** ********* from the U.S. export sanction. Since the first half, in order to meet the increasing risks, the company has increased its stock material related to the U.S. Until the end of the year, our inventory had doubled compared to the previous year. Our raw material inventory had increased by more than 2 times compared to the previous year. [emphasis added]

China ***** ******** ******, ***** ******* ***** ********

** *** ****, ********* stated *** *** ***** for **** **** ** 16.2%, ******** ****** **** the ******** ******** ** 14.43%, **** ***** ******* sales ***** ********:

*** ******** ****** ** 2019 ** ******* ******** by *** ******** ********** and ********* *********** ** various ********* *** ******* overseas, **** * ****-**-**** increase ** **.**%, ** which ***** ******* *** a ******** ******.

*** **** ** ***** America ***** ** *** new, ************* ********* **** * year ***,****** *** ********* *** after*** **** ***.*******, *********'* *** ***** remain *** **** ** its ********, ****** ** the ****'* ***** ** revenue (**%) *** ****.

Final ********: ***** ***** *****

********* ** ******* *** by *** *********** ***** as ** ****** ****** lows *** ******, **** sanctions ************* ********** *** cost ** ***** ********. Like **** ****** *********, it **** ** *** by *** ******** *** it ***** ****** **** its **** ** ********* growth *** ******** ********* are ****.

************, ********* ******* ** far *** *****'* ******* video ************ ************ *** is ******** ** *** status ** * *** state-controlled ******* **** ****** enterprise *** ********** *****, along **** ****** ****** to ********** ********, ******, etc.

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