HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
2018 Fiscal Year Financial Preview
Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as the “Company”) andall members of the Board of Directors hereby guarantee that the information presented in thisreport shall be truthful, accurate and complete of its contents and shall be free of any false records,misleading statements or material omissions.
Note: The 2018 annual financial data provided in this announcement is preliminary accountingdata, which has been reviewed by internal audit. The certified public accountants’ audit has notbeen performed yet. Differences may occur in the finalized audited financial report. Please payattention to the potential investment risk.I. Key Accounting Data and Financial Indicators for Fiscal Year 2018
| 2018 | 2017 | YoY Change (%) | |
| Total Operating income (RMB) | 49,809,885,519.34 | 41,905,476,572.07 | 18.86% |
| Total Operating Profit (RMB) | 12,356,372,039.95 | 10,443,111,610.45 | 18.32% |
| Total Profit (RMB) | 12,489,078,074.40 | 10,486,820,482.36 | 19.09% |
| Net profits attributable to shareholders of the Company (RMB) | 11,335,992,570.44 | 9,410,855,084.82 | 20.46% |
| Basic earnings per share (RMB/share) | 1.243 | 1.030 | 20.68% |
| Weighted average ROE (%) | 33.95% | 34.96% | -1.01% |
| At the end of 2018 | At the end of 2017 | YoY Change (%) | |
| Total assets (RMB) | 63,083,452,741.91 | 51,570,963,466.61 | 22.32% |
| Owners’ equity attributable to shareholders of the Company (RMB) | 37,572,181,929.70 | 30,358,072,874.22 | 23.76% |
| Share Capital (RMB) Note 3 | 9,227,270,473.00 | 9,228,865,114.00 | -0.02% |
| Net asset per share attributable to shareholders of the Company (RMB) | 4.07 | 3.29 | 23.71% |
Note 1: The above financial data is filled in with the Company’s consolidated statement data.Note 2: The amount resulted in the same period of prior year and the beginning balances wereretroactively adjusted for business merger under the common control.Note 3: During the reporting period, the total capital shares of the company altered from9,228,865,114 shares to 9,227,270,473 shares due to the implementation of the second repurchaseand cancellation of 2014 Restricted Share Incentive Scheme.II. Information about Preliminary Operational and Financial ResultsIn 2018, the company maintains high-level R&D investment, enhances overall competitiveness,continuously strengthens management level and improves operational efficiency by optimizinginternal resources, continues to develop domestic and overseas markets, and maintains a steadyand healthy growth in performance.
In 2018, the Company’s total operating income was RMB 49,809,885,519.34, representing ayear-over-year growth of 18.86%; total operating profit was RMB 12,356,372,039.95, indicating ayear-over-year growth of 18.32%; total profit was RMB 12,489,078,074.40, a year-over-yeargrowth of 19.09%; net profits attributable to shareholders of the Company amounted to RMB11,335,992,570.44, a 20.46% increase over 2017.III. Explanation for Any Deviation from Previous Operational Result GuidanceThe business performance disclosed in this 2018 financial preview aligned with the 2018operational result guidance disclosed in 2018 3
rd
quarter report.
IV. Documents Available for Reference1. The comparative balance sheet and income statement that signed and sealed by the person incharge of the Company, the responsible person in charge of accounting work, and the person incharge of accounting organization.2. Internal audit report signed by the person in charge of the internal audit department.
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
The Board of Directors
February 15
th
, 2019