Hangzhou Hikvision Digital Technology : 1Q2024 Financial Report

	Hikvision 2024 Q1 Report
Stock Exchange Code：002415	Abbreviation of Securities：Hikvision
No：2024-012

Hangzhou Hikvision Digital Technology Co., Ltd.

2024 1st Quarter Report

The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or material omissions.

Important Content Notes:

1. The Board of Directors, Board of Supervisors, directors, supervisors and senior management guarantee that the information presented in this report is true, accurate and complete without false records, misleading statements or material omissions, and will undertake individual and joint legal liabilities.
2. Chen Zongnian, the Company's legal representative, Jin Yan, the person in charge of the accounting work, and Zhan Junhua, the person in charge of accounting institution (accounting supervisor) hereby declare and warrant that the financial information in this report is true, accurate and complete.
3. Whether the 1st quarter report has been audited
   □Yes√ No

Hikvision 2024 Q1 Report

1. Key Financial Data

1. Key Accounting Data and Financial Indicators

Whether the Company performed a retroactive adjustment or restatement of the previous accounting data □Yes √ No

	2024 Q1	2023 Q1	YoY Change(%) between 2023 Q1 and
	2024 Q1
Revenue (RMB)	17,817,550,424.43	16,201,189,412.53	9.98%
Net profits attributable to shareholders of the Company	1,915,903,199.88	1,811,255,388.03	5.78%
(RMB)
Net profits attributable to shareholders of the Company	1,760,276,683.16	1,554,094,332.67	13.27%
excluding non-recurring gains and losses (RMB)
Net cash flows from operating activities (RMB)	-3,966,935,241.66	-3,285,523,507.64	-20.74%
Basic earnings per share (RMB/share)	0.208	0.196	6.12%
Diluted earnings per share (RMB/share)	0.208	0.196	6.12%
Weighted average Return on Equity (ROE)	2.47%	2.61%	-0.14%
	On March 31, 2024	On December 31, 2023	Change(%) between December 31, 2023
	and March 31, 2024
Total assets (RMB)	132,259,649,297.62	138,848,007,548.55	-4.75%
Owner's equity attributable to shareholders of the Company	78,484,066,664.96	76,354,265,540.14	2.79%
(RMB)

Hikvision 2024 Q1 Report

The total share capital of the Company as of the previous trading day of the financial report disclosure:

The total share capital of the Company as of the previous trading day of the financial report disclosure (share)

9,330,600,931

Fully diluted earnings per share calculated using the latest share capital:

Fully diluted earnings per share (RMB/share) calculated with the latest share capital

0.205

2. Items and Amounts of Non-recurring Gains and Losses

√ Applicable □ Inapplicable

	Unit：RMB
Item	January 1, 2024-March 31, 2024
Gains or losses from the disposal of non-current assets (including the write-off for the	-7,339,105.75
impairment provision of assets)
Government subsidies included in the current gain and loss (except for government
subsidies that are closely related to the Company's regular business operations, comply	151,531,740.78
with national policies, are enjoyed in accordance with determined standards, and have a
continuous impact on the Company's profit and loss)
Gains and losses attributed to change in fair value for the holding of financial assets and
financial liabilities by non-financial enterprises, and gains and losses arising from the	44,298,430.11
disposal of financial assets and financial liabilities, excluding the effective hedging
business related to the regular business operation of the Company.
Other non-operating income and expenditures except the items mentioned above	11,887,291.72
Less: Impact of income tax	22,470,316.40
Impact of the minority interests (after tax)	22,281,523.74
Total	155,626,516.72

Details of other profit and loss items that meet the definition of non-recurring profit and loss: □ Applicable √ Inapplicable

The Company does not have other specific conditions of profit and loss items that meet the definition of non- recurring profit and loss.

Explanations on classifying any non-recurring gain/loss item mentioned in the Public-Non-recurring Gains and Losses> as recurring gain/loss item.

□ Applicable √ Inapplicable

The Company does not classify any non-recurring gain/loss item mentioned in the

1 on Information Disclosure for Companies Offering Their Securities to the Public-Non-recurring Gains and Losses> as recurring gain/loss item.

Hikvision 2024 Q1 Report

3. Information and explanation about variations in key accounting data and financial indicators

√Applicable □Inapplicable

3.1 Explanation for variations in balance sheet items

	Item			Balance on March 31,			Balance on December			Change (%)			Note of Changes
			2024 (RMB)			31, 2023 (RMB)
	Held-for-trading		-	37,380.00
	financial assets		-85.03%		Due to exchange rate
	Held-for-trading		5,705,696.80	38,079,755.04		fluctuations
	financial liabilities
	Other receivables		940,598,188.79	571,905,648.93	64.47%		Increase in tax receivables
	Notes payable		1,631,631,344.50		1,163,687,279.58	-29.20%		Increase in supplier
										settlement payments
	Accounts payable		12,760,934,417.50		19,163,485,888.09
	Payroll payable		3,630,914,215.18		6,120,254,492.28	-40.67%		2023 year-end bonus were
				paid in this quarter
	Long-term borrowings		5,968,656,279.30		8,940,122,961.01
									1.45%		No significant changes
	Non-current liabilities		8,999,923,030.70		5,814,660,214.96
	due within one year
													Increase in the translation
	Other comprehensive		59,655,440.54		44,667,516.16	33.55%		difference of foreign
	income				currency statements due to
													exchange rate fluctuations

3.2 Explanation for variations in income statement items

Items

2024 Q1

2023 Q1

YoY Change

Note of changes

(RMB)

(RMB)

(%)

In the same period of last year, the

Investment income

income from the business combination

not under the same control was

(losses are listed with a "-

-90,237,693.78

53,024,459.67

-270.18%

realized step by step through multiple

" symbol)

transactions, and there was no similar

event in the current period

Asset impairment losses

Decrease in provision for inventory

(losses are listed with a "-

-69,525,214.28

-141,629,819.18

50.91%

depreciation

" symbol)

Minority Shareholders'

306,169,982.25

136,968,421.67

123.53%

Increase in the profit of the holding

Hikvision 2024 Q1 Report

Gains and Losses

subdisidaries

3.3 Explanation for variations in cash flow statement items

Item	2024 Q1	2023 Q1	YoY Change	Note of changes
(RMB)	(RMB)	(%)
Net cash flows from	-1,004,036,851.08	-758,788,857.48	-32.32%	Increase in the investment in the
investing activities	construction of industrial parks
Net cash flows from	-482,442,232.44	2,031,442,402.22	-123.75%	Decrease in net borrowing inflows
financing activities

Hikvision 2024 Q1 Report

1. Shareholder Information

1. Total number of common shareholders and number of preferred shareholders with resumed voting rights and information about top 10 shareholders

						Unit: Share
Total number of common shareholders at the end of the reporting period	356,222	Total number of preferred shareholders (if any) whose voting rights	0
have been recovered at the end of the reporting period (if any)
Particulars about Top 10 shareholders (excludes shares lent through refinancing)
		Share-		The number of	Pledged, marked or frozen
Name of shareholder	Nature of shareholder	Total shares held	common
holding percentage	shares held
at the period-end	Status	Amount
		(%)	with trading
				restrictions
China Electronics Technology HIK Group Co., Ltd.	Domestic state-owned	36.55%	3,410,150,909	-	Pledged	50,000,000
corporation
Gong Hongjia	Overseas individual	10.32%	962,504,814	-	Pledged	196,598,700
Hangzhou Weixun Equity Investment Partnership (Limited Partnership)	Domestic non-state-	4.83%	450,795,176	-	Pledged	17,700,000
owned corporation
Shanghai Perseverance Asset Management Partnership (Limited Partnership) -	Other	4.40%	411,000,000	-	-	-
Perseverance Adjacent Mountain 1 Yuanwang Fund
CETC Investment Holdings Co., Ltd.	Domestic state-owned	2.63%	245,161,568	-	-	-
corporation
Hangzhou Pukang Equity Investment Partnership (Limited Partnership)	Domestic non-state-	1.96%	182,510,174	-	Pledged	50,000,000
owned corporation
The 52nd Research Institute at China Electronics Technology Group	Domestic state-owned	1.94%	180,775,044	-	-	-
Corporation	corporation
Hu Yangzhong	Domestic individual	1.67%	155,636,477	116,727,358	-	-
Hong Kong Securities Clearing Company Ltd.(HKSCC)	Overseas corporation	0.78%	73,196,717	-	-	-
Central Huijin Investment Co., Ltd.	Domestic state-owned	0.69%	64,700,691	-	-	-
corporation

					Hikvision 2024 Q1 Report
	Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
	Name of shareholder	Number of common shares		Type of shares
	without trading restrictions held
		Type		Amount
		at the period-end
	China Electronics Technology HIK Group Co., Ltd.	3,410,150,909		RMB ordinary shares		3,410,150,909
	Gong Hongjia	962,504,814		RMB ordinary shares		962,504,814
	Hangzhou Weixun Equity Investment Partnership (Limited Partnership)	450,795,176		RMB ordinary shares		450,795,176
	Shanghai Perseverance Asset Management Partnership (Limited Partnership) -	411,000,000		RMB ordinary shares		411,000,000
	Perseverance Adjacent Mountain 1 Yuanwang Fund
	CETC Investment Holdings Co., Ltd.	245,161,568		RMB ordinary shares		245,161,568
	Hangzhou Pukang Equity Investment Partnership (Limited Partnership)	182,510,174		RMB ordinary shares		182,510,174
	The 52nd Research Institute at China Electronics Technology Group Co., Ltd.	180,775,044		RMB ordinary shares		180,775,044
	Hong Kong Securities Clearing Company Ltd.(HKSCC)	73,196,717		RMB ordinary shares		73,196,717
	Central Huijin Investment Co., Ltd.	64,700,691		RMB ordinary shares		64,700,691
	Industrial and Commercial Bank of China Co., Ltd. - Huatai Pinebridge CSI	40,378,956		RMB ordinary shares		40,378,956
	300 ETF Securities Investment Fund
		China Electronics Technology HIK Group Co., Ltd., CETC Investment Holdings Co., Ltd., and the 52nd
		Research Institute at China Electronics Technology Group Co., Ltd.are all subject to control of China
		Electronics Technology Group Corporation. Ms. Chen Chunmei, limited partner of Hangzhou Pukang Equity
	Explanation on associated relationship and concerted actions among above	Investment Partnership (Limited Partnership), is the spouse of Mr. Gong Hongjia, overseas individual
	shareholder of the Company. Hu Yangzhong, domestic individual, is holding shares in both Hangzhou Weixun
	shareholders
	Equity Investment Partnership (Limited Partnership) and Hangzhou Pukang Equity Investment Partnership
		(Limited Partnership). Except for these, the Company does not know whether the other shareholders are related
		parties or whether they are acting-in-concert parties in accordance with the Administrative Measures for
		Acquisitions of Listed Companies.

Shareholders holding more than 5% of the shares, the top 10 shareholders, and the top 10 shareholders of unrestricted tradable shares participate in the lending of shares in the refinancing

Hikvision 2024 Q1 Report

business

√ Applicable □ Inapplicable

Unit: Share

Particulars about Shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participate in the lending of shares in

the refinancing business

Share holdings of ordinary account

The shares lent by the refinancing

Share holdings of ordinary account

The shares lent by the refinancing

and credit account at the beginning of

have not yet been returned at the

and credit account at the end of the

have not yet been returned at the

Name of shareholder (Full name)

the period

beginning of the period

period

end of the period

Total amount

Proportion of total

Total

Proportion of total

Total amount

Proportion of total

Total

Proportion of total

share capital

amount

share capital

share capital

amount

share capital

Industrial and Commercial Bank

of China Co., Ltd. - Huatai

27,920,756

0.30%

15,900

0.00%

40,378,956

0.43%

0

0.00%

Pinebridge CSI 300 ETF

Securities Investment Fund

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared with the previous period due to the refinancing, lending/repayment

□ Applicable √ Inapplicable

Hikvision 2024 Q1 Report

2. Total number of preferred shareholders and information about Top 10 preferred shareholders

□ Applicable √ Inapplicable

Hikvision 2024 Q1 Report

III. Significant Events

√Applicable □Inapplicable

1. The Company's controlling shareholder disclosed and implemented the plan to increase the Company's

shares

The Company received a notice from China Electronics Technology HIK Group Co., Ltd. (hereinafter referred to as "CETHIK"), the Company's controlling shareholder, on October 16, 2023 that CETHIK intended to increase its shareholdings of the Company's shares through the trading system of the Shenzhen Stock Exchange through centralized bidding, block trading or other trading methods permitted by laws and regulations within 6 months from October 17, 2023. The total amount of the increased shareholdings would not be less than RMB200 million and not more than RMB300 million, and the proposed price of increased shareholdings should not be higher than RMB40 per share (inclusive). The plan of increase shareholding would be implemented at the opportunity with the consideration of the fluctuation of Hikvision's stock price and the overall trend of the capital market. From January 4, 2024 to January 9, 2024, CETHIK increased its holdings of 6,271,400 shares of the Company through the trading system of the Shenzhen Stock Exchange through centralized bidding, accounting for 0.0672% of the Company's current total share capital, and the amount of additional shares is 200,160,059.77 yuan (excluding transaction fees). The shareholding increase plan of CETHIK has been implemented. For details, please refer to the Announcement on the Plan for the Company's Controlling Shareholders to Increase Their Shareholdings in the Company (Announcement No.: 2023-033) and Announcement on the Completion of the Implementation of the Company's Controlling Shareholders' Plan to Increase Their Shareholdings in the Company (Announcement No.: 2024-001) published by the Company on cninfo website (www.cninfo.com.cn) on October 17, 2023 and January 10, 2024

2. The person acting in concert of the controlling shareholder of the Company disclosed and implemented the plan to increase the Company's shares

After the close of trading on January 16, 2024, the Company received a notice from CETC Investment Holdings Co., Ltd. (hereinafter referred to as "CETC Investment"), a person acting in concert of the CETHIK, the controlling shareholder of the Company, that on January 16, 2024, CETC Investment increased its holdings of 1,319,906 shares of the Company through centralized bidding through the trading system of the Shenzhen Stock Exchange, with the amount of RMB40,363,848.49. CETC Investment intends to continue to increase its holdings of the Company's shares within 6 months from January 16, 2024, with an increase of not less than RMB300 million and no more than RMB600 million (including the amount of increase on January 16, 2024). There is no fixed price range for this