Hikvision

Hikvision

Type	Public
Traded as	SZSE: 002415
Industry	Video surveillance
Founded	2001
Founder	HIK Information Technology Gong Hongjia
Headquarters	Hangzhou, China
Area served	Worldwide
Key people	Gong Hongjia (co-founder & vice-chairman) Chen Zongnian (chairman) Hu Yangzhong (president)
Products	CCTV and Network Surveillance Systems
Brands	Ezviz, HiWatch
Revenue	CN¥25.271 billion (2015)
Operating income	CN¥5.494 billion (2015)
Profit	CN¥5.869 billion (2015)
Total assets	CN¥30.316 billion (2015)
Total equity	CN¥19.254 billion (2015)
Owner	Chinese Central Government (via China Electronics Technology Group (41.87%)) Gong Hongjia (18.28%) other shareholders (39.85%)
Number of employees	15,222 (2015)
Parent	CET HIK Group (direct) China Electronics Technology Group (indirect)
Website	www.hikvision.com
Footnotes / references in a consolidated basis (net assets and net profit excluding minority interests); in Chinese Accounting Standards[1]

Hangzhou Hikvision Digital Technology Co., Ltd. is a supplier^[2] of video surveillance products and solutions based in Hangzhou, China whose controlling shareholder is the Chinese Government.^[3]

History

Hikvision was founded in 2001 by HIK Information Technology (Chinese: 浙江海康信息技术股份有限公司) with the company having a 51% stake and Gong Hongjia (Chinese: 龚虹嘉) a 49% stake. Hikvision made products for the video surveillance market.^[4] It devotes 8% of its annual revenue to research and development, with 18,000 employees and 7,181 engineers working for the R&D team by the end of 2015.^[5]

Hikvision has been listed on the Shenzhen Stock Exchange since 2010.^[1] The company provides surveillance products to the global market via more than "2,400 partners in 155 countries and regions",^[5] and has its presence in 18 locations around the world.^[6]

In October 2016, the company concluded a deal to use Movidius' computer vision technology.^[7]

Shareholders

Hikvision is owned by China Electronics Technology HIK Group Co., Ltd. (HIK Group, Chinese: 中电海康集团有限公司), a wholly owned subsidiary of China Electronics Technology Group, which has a 39.9% stake.^[1]:46 China Electronics Technology Group is a state-owned enterprise that is supervised by the State-owned Assets Supervision and Administration Commission of the State Council. China Electronics Technology Group holds an additional 1.97% stake of Hikvision via its 52nd research institute (Chinese: 中国电子科技集团公司第五十二研究所).^[1] The Chairman of Hikvision, Chen Zongnian (Chinese: 陈宗年), is also the chairman and Party Committee Secretary of HIK Group, and Head of the research institute.^[1]

The second largest shareholders (by consortium) are the co-founder of Hikvision, Gong Hongjia, with an 18.28% stake^[1] and a private equity fund (Chinese: 新疆普康投资有限合伙企业) which has a 2.10% stake. The fund was partly owned by Gong's wife Chen Chunmei (Chinese: 陈春梅), as one of the 3 partners and as a controlling unit holder. Gong and the private equity fund owned a combined 20.38% stake.^[1]

The third largest shareholder is a private equity fund (Chinese: 新疆威讯投资管理有限合伙企业) which has a 7.09% stake,^[1] which is associated with Liu Xiang (Chinese: 刘翔), current director and former vice-president of Hikvision, current vice-president of HIK Group, chairman of sister company Phoenix Optical (SSE: 600071).^[1] The top 3 shareholders owned a combined 69.35% stake.

Lastly, Zhejiang Orient Holdings (SSE: 600120), the fourth largest shareholder with a 1.26% stake, is a publicly held company that Zhejiang Provincial People's Government was the largest shareholder. Central Huijin Asset Management, the fifth largest shareholder with a 0.72% stake, is a wholly owned subsidiary of state-owned investment company Central Huijin Investment. The largest non-government non-employee shareholders are Morgan Stanley (0.55%), BNP Paribas (0.54%), a Hong Kong based subsidiary of E Fund Asset Management (0.51%) and New China Life Insurance (0.506%). The latter two were the managers of exchange-traded funds and insurance-linked funds respectively.

Activities

Hikvision carries out research and development, design and manufacturing of CCTV and video surveillance products. The company produces Smart IP cameras, HD analog cameras, speed domes, NVRs, DVRs, video management software, access control and alarm systems. Hikvision's products and solutions have been deployed into numerous notable facilities including the Beijing Olympic Stadium, Shanghai Expo, Philadelphia Safe Communities in the U.S., South Korea Seoul Safe City, Brazil World Cup Stadium, the Italy Linate Airport.^[8]

Market

In 2015, Hangzhou Hikvision Digital Technology Co.Ltd. overtook Dahua Technology in the domestic market as a civilian-run enterprise.

In 2016, Hikvision was ranked 1098th in the Forbes Global 2000 List: a listing of the world's top publicly traded companies.^[9] As if 16 November 2016, Hikvision was also a constituent of the SZSE 100 Index, a blue chip index of the Shenzhen Stock Exchange, as well as the pan-China indexes CSI 300 Index, FTSE China A50 Index and Hang Seng China 50 Index.

In 2016, Hikvision was ranked #1 in the ASMAG Security Top 50 rankings.^[10]

Controversy

The UK Daily Mail conducted an undercover investigation into Hikvision, finding that "Hikvision is controlled by China's ruling Communist Party."^[11]

IPVM.com has criticized Hikvision for allegedly obscuring its Chinese government ownership.^[12] Hikvision has criticized IPVM for allegedly seeking financial gain.^[13]

Alan West, in an interview published by the The Times (and re-published by The Australian), averred that Hikvision's ownership raise ethical and security concerns when it comes to usage of Hikvision's products by the British government.^[2]

Subsidiaries

References

External links

• Official website
• Official website of Ezviz