Hikvision’s 2017 Interim Report shows solid financial results for the first half of the year, with year-over-year double-digit increases in operating income and net profit.
Released this week, the report covers financial results from January 1 to June 30, 2017. In the first half of 2017, Hikvision’s total operating income is $2.4 billion (RMB ¥16.45 billion), which represents a year-over-year increase of 31 percent compared to $1.8 billion (RMB ¥12.55 billion) achieved in the first six months of 2016.
Net profit attributed to Hikvision shareholders in the first half of 2017 is up 26 percent over last year. The 2017 total is $487 million (RMB ¥3.29 billion), compared to $386 million (RMB ¥2.6 billion) for 2016.
The profitability of the company improved continuously, resulting in an overall gross profit margin of 42.72 percent in the first half of 2017, up 1.14 percent over last year’s gross profit margin for the same time period.
EPS (earnings per share) were up 23 percent in this reporting period, at $.05 (RMB ¥0.357) in 2017 compared to $.04 (RMB ¥0.288) in 2016.
Hikvision is a publicly traded company, listed on the Shenzhen Stock Exchange.
The company’s weighted average ROE (return on equity) was 12.98 percent, consistent with last year’s average of 12.96 percent.
Fundamental to Hikvision’s growth from 2001 to present has been its investment in R&D. In the first half of 2017, R&D investment rose 50 percent compared to one year ago. So far this year, Hikvision has invested more than $215 million (RMB ¥1,454,783,663) in R&D; it invested more than $143 million (RMB ¥968,001,812) in the first six months of 2016.
“North America is one of the regions around the world that contributes to the growth of Hikvision, and we are building momentum with the establishment this year of the first Hikvision R&D Centre located outside of China, the Montreal R&D Centre,” said Jeffrey He, president of Hikvision USA Inc. and Hikvision Canada Inc. “The new R&D Centre means we’re bringing more high-skill, good-paying jobs to our communities. We’re tapping the tremendous talent pool in the Montreal area and over the next few years we expect to have more than 100 research and development engineers based in Montreal.”
Firmly established in the global video surveillance industry, Hikvision is actively exploring and commercializing AI technology, and continues to explore innovative businesses such as EZVIZ Smart Home, Hikvision Robotic, Hikvision Automotive Technology, and Hikvision Storage, with the goal of building core competitiveness in new business areas.