Enlightenment of Hikvision 20021Semi-annual Report Data.

On the afternoon of July 23rd, Hikvision released the 20021semi-annual report. In the first half of 200210, the company achieved a total operating income of 33.9438 billion yuan, up 39.68% year-on-year; The net profit attributable to shareholders of listed companies was 6.48142 billion yuan, up 40.17% year-on-year; The gross profit margin of the company in the first half of 2002/kloc-0 was 46.30%, which was 3.46 percentage points lower than the same period of last year.

The epidemic situation in COVID-19 is still severe worldwide, and the economies of some countries and regions continue to stagnate and decline in stages. In the face of various sanctions imposed by the US government on Hikvision and other enterprises, Hikvision can achieve such good results beyond the estimation of most people in the industry.

Read the company's 20021semi-annual report carefully, and the operating income has increased by nearly 40%.

The reason is that the application of video software and hardware products in non-security fields is increasing rapidly. The company vigorously promotes "digital intelligence integration", further combines AI with perceived big data and multidimensional big data, promotes the application of intelligent management methods, and helps users in various industries to carry out digital transformation.

The process of the company's transformation from a video surveillance enterprise to an Internet of Things enterprise with smart perception and big data application as the means and intelligent services for urban intelligence and enterprise manufacturing management as the purpose is relatively smooth. The revenue from video products and services, accounting for 88.42% of the company's total revenue, was 27.9.1253 million yuan, up 30.07% year-on-year. An important reason for the growth is that video products and services are increasingly used in non-security areas.

From the perspective of the company's three business groups (BG), SMBG has the largest increase in revenue, followed by PBG and EBG.

1. The company's public service group (PBG) revenue was 77.1700 million yuan, up 2.93438+0% year-on-year;

2. The income of enterprises and institutions (EBG) was 7210.9 billion yuan, an increase of 22.07%;

3. The income of small and medium-sized enterprises (SMBG) was 665,438+74 million yuan, a year-on-year increase of 105.80%.

The income gap between the three business groups is rapidly narrowing. Not only do all kinds of enterprises increasingly use smart video and big data technology in their production and operation, but enterprises are also increasingly involved in municipal projects related to people's livelihood, such as administrative services, municipal administration, water conservancy and emergency management. To help the government improve the efficiency and quality of public services.

Secondly, the revenue growth rate of innovative products far exceeds that of video products and services, and innovative products are used in the Internet of Things industry in a larger proportion.

Innovative business accounts for 65,438+06.46% of the company's total revenue. Although the proportion is still small, its amazing growth rate is becoming an increasingly important source of growth for the company.

In the first half of the year, the revenue from innovative products was 5,578.37 billion yuan, up 65.438+0.22.18% year-on-year, of which the revenue from fluorite network business was 65.438+0.87.16.5438+0 billion yuan, up 58.68% year-on-year. Robot business income12201900 million yuan, up 124.83% year-on-year, and other innovative business income was 2,487.07 billion yuan, up 2 15.27% year-on-year.

Hikvision's eight innovative business camps are fluorite network, Hikvision robot (including machine vision), Hikvision automotive electronics, Hikvision (thermal imaging), Hikvision smart storage, Hikvision video (medical treatment and education), Hikvision fire protection and Hikvision video (security inspection and industrial inspection).

Haikang robot, which accounts for a large proportion in the eight innovative businesses, does not belong to the security field. Only some products of other innovative businesses are used in the security field, and only a few fluorite network products with the largest proportion of innovative businesses belong to the security field. The two types of products with the largest proportion of innovative business should be classified as the Internet of Things industry.

Whether in the world or in China, the average annual growth rate of the security industry market has dropped below 10%, and the growth rate of the domestic security demand market has begun to be less than that of the international security market. Haikang's main business has begun to transform from the security industry to the Internet of Things industry.

We believe that this is conducive to the development of enterprises, successfully breaking through the ceiling of the security industry and entering the broader Internet of Things industry, so that enterprises are expected to re-enter the road of an average annual growth rate of more than 20% in revenue and profits.

The gross profit margin of Haikang 202 1 was 46.30% in the first half of the year, which was 3.46 percentage points lower than the same period of last year.

As a leading enterprise, Haikang has seized the commanding heights of supply and demand of raw materials such as security upstream chips. After the outbreak, the demand expanded and the prices of raw materials such as chips rose, especially in response to US sanctions, which should help Haikang's profit growth.

However, in the conference call of Hikvision's 20021semi-annual performance statement, Ms. Huang, senior deputy general manager and secretary of the board of directors, introduced the company's gross profit margin, saying that in the past 20 years, Hikvision's products have hardly increased in price, and in order to maintain good competitiveness, the price increase of products lags behind the fluctuation of raw materials.

Adjusting the sales price is a very cautious thing, and the company is still relatively restrained in this respect, hoping to properly handle the balance in all aspects. Secondly, some changes in the income structure (the proportion of products with lower gross profit margin has increased) have led to a decline in gross profit margin.

The decline in gross profit margin of overseas sales products is the main factor affecting the decline in gross profit margin of products in the first half of this year.

As can be seen from the semi-annual report, the company's overseas income was RMB 9,467.48 billion, up 25.53% year-on-year, accounting for 27.93% of the company's total income, and its gross profit margin was 47.68%, down 8.06 percentage points year-on-year. However, the gross profit margin of products sold in China only decreased by 1.28 percentage points.

The decline in gross profit margin will undoubtedly have a negative impact on the company's profit growth. However, in the first half of 20021,the company's sales expenses increased by 22.52%, management expenses only increased by 1.8 1%, and R&D investment increased by 26.58%.

The proportion of R&D expenses in Haikang's income is increasing year by year, which shows that the company insists on technological innovation as the core and increases R&D, laying a solid foundation for meeting opportunities and challenges. The growth of the three expenses is lower than the growth of operating income, especially the management expenses are well controlled, which plays a great role in the profit growth of enterprises.

Compared with the 2020 annual report, the company's financial expenses have once again become a booster for profit growth. In the first half of this year, interest income was 465.438+0.2 billion yuan, interest expense was 65.438+0.1.06/kloc-0.0 billion yuan, and exchange loss was 99.47 billion yuan. Although the exchange loss increased compared with the same period of last year, the financial expenses were still-65,438+22.52 million yuan, which contributed to the profit growth.

Hikvision has a high level of financial expense management. For example, the largest long-term credit loan at the end of this period is 400 million euros with a book value of 3,074.48 million yuan, which is mainly used for the investment and construction of the company's Hangzhou Innovation Industrial Park project and Xi 'an Science and Technology Park project.

This is a 400 million euro credit loan signed by the company in 20 19 after returning 400 million euros of three-year bonds issued on the Irish stock exchange in February 20 16. The maturity date is 202 1 14, and the annual interest rate is 0.85%.

The company has reached a cooperation with CDB Development Fund Co., Ltd., and only needs to pay an annualized return of 65,438+0.2% to CDB Development Fund through dividends and interest payments every year. By June 30, 20265438+0, CDB Development Fund had increased the capital of Hikvision Electronics Co., Ltd., a subsidiary of Hikvision, by a total of 6,543.8+0.9 billion yuan.

Another example is the pledge loan of RMB 565.438+04 billion, which was obtained by pledge with all the rights and interests enjoyed by the Group under the Project Agreement on Government and Social Capital Cooperation (PPP) in Xi 'an Public Security Video Surveillance Construction. The maturity date is 203 1, 1 1.5, and the annual interest rate of the loan is 4.345%. There are many such pledged loans, and their interest rates are lower than those of long-term loans of enterprises.

The above financing loans account for the vast majority of financing loans, and their interest rates are lower than those of other enterprises, which makes Haikang's financial expenses negative for a long time, except for the large exchange losses in 2020.

The company's net profit and net profit growth rate in the second quarter were affected by the time of income tax rebate for key software enterprises. Net profit in the second quarter includes tax refund of 570 million yuan.

According to the past practice, the company generally received and confirmed the income tax rebate for key software enterprises in the third quarter. This year, due to the adjustment of tax refund related procedures, it was changed to 570 million yuan in the second quarter, and the income tax of a single book record was negative. Excluding the impact of income tax rebate, the company's net profit in the first half of the year was 59 1 1 billion yuan, a year-on-year increase of 27.84%.

In the first half of 2002/KLOC-0, Hikvision's important projects under construction included Chengdu Science Park, Hangzhou Innovation Industrial Park, Xi 'an Science Park, Shijiazhuang Science Park, Fluorite Industrialization Base, Zhengzhou Science Park and Chongqing Science Park, with a total investment of1425.24 million yuan, an increase of160,000 yuan over the same period last year. In the past two years, the company began to increase the construction of multi-site science parks and industrial parks to accumulate strength for future development.