HIKVISION(SZ:002415)2022-04-15 16:00Financial Performance - In 2021, Hikvision's cumulative R&D investment reached CNY 35.4 billion, with a net profit attributable to shareholders of CNY 89.1 billion and total dividends distributed to shareholders amounting to CNY 43.2 billion since its IPO in 2010[2]. - The company reported a total revenue of 1.5 billion RMB for the year 2021, representing a year-over-year growth of 15%[12]. - The company's operating revenue for 2021 was ¥81,420,053,539.27, representing a year-over-year increase of 28.21% compared to ¥63,503,450,891.78 in 2020[18]. - The net profit attributable to shareholders for 2021 was ¥16,800,411,032.05, up 25.51% from ¥13,385,526,714.15 in 2020[18]. - The basic earnings per share for 2021 was ¥1.810, reflecting a 25.26% increase from ¥1.445 in 2020[18]. - The total assets at the end of 2021 amounted to ¥103,864,543,195.18, a 17.09% increase from ¥88,701,682,384.20 at the end of 2020[18]. - The net cash flow from operating activities for 2021 was ¥12,708,524,686.99, down 21.01% from ¥16,088,156,566.67 in 2020[18]. Research and Development - The proportion of R&D expenses to revenue increased from 7.62% in 2017 to 10.13% in 2021, indicating a consistent commitment to innovation[2]. - The company plans to continue increasing its R&D investment over the next decade to enhance customer value and shareholder returns[2]. - Research and development expenses increased by 30% in 2021, focusing on smart home technologies and robotics[15]. - In 2021, five of the company's innovative businesses generated over CNY 1 billion in revenue, with positive net profits, showcasing successful internal innovation initiatives[2]. Market Expansion and Global Presence - As of 2021, Hikvision operates in over 155 countries and regions, with 66 sales branches, 3 manufacturing plants, and 11 logistics centers established overseas[1]. - The company is expanding its market presence in Southeast Asia, with plans to open three new offices by the end of 2022[15]. - The company has established a strong system capability that includes system design, implementation, operation management, and service support[29]. - Hikvision's international business has maintained steady growth despite challenges from geopolitical issues and the global pandemic, focusing on meeting customer needs and optimizing internal operations[145]. Product Innovation and Technology - New product launches included advanced AI surveillance systems, contributing to a 25% increase in sales in the security segment[15]. - The company has initiated a new strategy to diversify its product offerings, including entry into the healthcare technology sector[15]. - Hikvision's AI open platform served over 8,000 enterprise users, generating 50,000 models and accumulating 4,000 implemented projects by the end of 2021[36]. - The company has developed a comprehensive product system that includes 5 categories of hardware and software products, enhancing its market competitiveness[29]. - Hikvision's focus on technology innovation has led to the expansion of its business into smart homes, digital enterprises, and smart cities[28]. Risk Management and Compliance - Hikvision faces several risks, including global pandemic impacts, economic downturns, geopolitical uncertainties, and supply chain disruptions, which could adversely affect its operations[5][6]. - The company emphasizes the importance of maintaining compliance with complex legal regulations across different countries, especially regarding data security[6]. Customer Engagement and User Experience - User data showed an increase in active users by 20% year-over-year, reaching 10 million users by the end of 2021[12]. - The company aims to enhance its product offerings through continuous innovation in sensing technologies and customized solutions for diverse market needs[26]. - Hikvision's intelligent application open platforms support various application scenarios, including edge node, edge domain, cloud center, and internet operations, facilitating developer collaboration and service integration[45][46]. Social Responsibility and Community Engagement - The company is committed to social responsibility, actively participating in grassroots governance and rural revitalization efforts[97]. - Hikvision focuses on rural revitalization by providing digital infrastructure and intelligent applications for production monitoring, ecological supervision, and grassroots governance, enhancing rural digital construction[100]. Digital Transformation and Smart Solutions - Hikvision's cloud-based SaaS service, Yunmou, has been applied in over 40,000 office locations, 280,000 retail stores, and 600,000 logistics nodes, serving 4.16 million community owners and 3.5 million students' parents, with a total of 2.5 million devices connected[125]. - The company is focused on digital transformation for various sectors, including government and small to medium enterprises, through tailored solutions[89]. - Hikvision's digital solutions are designed to create a comprehensive management loop, integrating various operational aspects from inspection planning to corrective actions[123]. Environmental Responsibility - The company emphasizes environmental responsibility and green manufacturing practices in its operations[156].