HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2019 Quarter 1 ReportJanuary to March 2019
April 20
th
2019
Section I Important Notes, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and seniormanagement of Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafterreferred to as the “Company”) hereby guarantee that the information presented in thisreport shall be together be wholly liable for the truthfulness, accuracy andcompleteness of its contents and free of any false records, misleading statements ormaterial omissions, and will undertake individual and joint legal liabilities.
The Company’s chairman Chen Zongnian, and director Gong Hongjia, QuLiyang, Hu Yangzhong, Wu Weiqi, independent director Lu Jianzhong, WangZhidong attended the board meeting to review this report in person. Independentdirector Cheng Tianzong and Hong Tianfeng were unable to attend the board meetingin person due to personal reasons, and authorized independent director Wang Zhidongand Lu Jianzhong to attend and exercise the voting right on their behalf respectively.
Chen Zongnian, the Company's legal representative, Jin Yan, the person incharge of the accounting work, and Zhan Junhua, the person in charge of accountinginstitution (accounting supervisor) hereby declare and warrant that the financialstatements in this report are authentic, accurate and complete.
Note:
This document is a translated version of the Chinese version 2019 Q1 Financial Report (“2019年第一季度报告全文”), and the published Q1 report in the Chinese version shall prevail. The completepublished Chinese 2019 Q1 Financial Report may be obtained at http://www.cninfo.com.cn.
Section II Corporate Profile
I. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of previous accounting data□Yes √ No
| At March 31st 2019 | At December 31st 2018 | Change(%) between December 31st 2018 and March 31st 2019 | |
| Total assets (RMB) | 60,547,762,104.60 | 63,484,352,233.42 | -4.63% |
| Net assets attributable to shareholders of the Company (RMB) | 39,223,726,364.46 | 37,590,154,638.46 | 4.35% |
| 2019 Q1 | 2018 Q1 | YoY Change(%) between 2018 Q1 and 2019 Q1 | |
| Operating income (RMB) | 9,942,448,619.42 | 9,364,828,201.00 | 6.17% |
| Net profits attributable to shareholders of the Company (RMB) | 1,536,118,222.96 | 1,815,964,569.77 | -15.41% |
| Net profits attributable to shareholders of the Company excluding non-recurring gains and losses (RMB) | 1,482,828,488.96 | 1,808,323,790.71 | -18.00% |
| Net cash flows from operating activities (RMB) | -3,038,198,689.80 | -3,856,064,680.53 | 21.21% |
| Basic earnings per share (RMB/share) | 0.168 | 0.199 | -15.58% |
| Diluted earnings per share (RMB/share) | 0.167 | 0.197 | -15.23% |
| Weighted average Return on Equity (ROE) | 4.00% | 5.80% | -1.80% |
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit：RMB
| Item | January 1st –March 31st 2019 |
| Profit or loss from disposal of non-current assets (including the write-off for the impairment provision of assets) | 408,476.41 |
| The government subsidies included in the current profits and losses (excluding the government subsidy closely related to regular course of business of the Company and government subsidy based on standard quota or quantification application according to the national industrial policy.) | 41,713,087.45 |
| Profits and losses attributed to change in fair value for held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, and derivative financial liabilities; and investment income in disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, excluding the effective hedging business related to the regular business operation of the Company. | 5,255,479.38 |
| Other non-operating income and expenditures except the items mentioned above | 18,830,643.99 |
| Less: Impact of income tax | 12,384,274.82 |
| The impact of the minority interests (after tax) | 533,678.41 |
| Total | 53,289,734.00 |
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition inthe <Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Non-recurring Gains and Losses>, or classifies any non-recurring gain/loss item mentioned in theaforementioned note as a recurrent gain/loss item□ Applicable √ InapplicableIn the reporting period, the Company did not classify an item as a non-recurring gain/loss according to thedefinition in the <Explanatory Announcement No. 1 on Information Disclosure for Companies Offering TheirSecurities to the Public—Non-recurring Gains and Losses>, or classifies any non-recurring gain/loss itemmentioned in the aforementioned note as a recurrent gain/loss item
II. Total Number of Shareholders at the end of the reporting period and Information for Top 10 Shareholders
1. Total number of common shareholders and 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 | 186,407 | Total number of preferred shareholders (if any) whose voting rights have been recovered at the end of the reporting period | 0 | ||||||
| Particulars about top 10 shareholders | |||||||||
| Name of shareholder | Nature of shareholder | Share- holding percentage (%) | Total shares held at the period-end | The number of common shares held with trading restrictions | Pledged or frozen | ||||
| Status | Amount | ||||||||
| China Electronics Technology HIK Group Co., Ltd. | State-owned corporation | 39.08% | 3,653,674,956 | 0 | Pledged | 50,000,000 | |||
| Gong Hongjia | Overseas individual | 13.43% | 1,255,056,700 | 941,292,525 | Pledged | 418,338,300 | |||
| Hong Kong Securities Clearing Company Ltd.(HKSCC) | Overseas corporation | 9.41% | 879,458,857 | 0 | - | ||||
| Xinjiang Weixun Investment Management Limited Partnership | Domestic non-state-owned corporation | 4.82% | 450,795,176 | 0 | Pledged | 179,832,999 | |||
| Xinjiang Pukang Investment Limited Partnership | Domestic non-state-owned corporation | 1.95% | 182,510,174 | 0 | Pledged | 72,570,000 | |||
| Hu Yangzhong | Domestic Individual | 1.95% | 182,186,477 | 136,639,858 | Pledged | 63,690,782 | |||
| The 52nd Research Institute at China Electronics Technology Group Corporation | State-owned corporation | 1.93% | 180,775,044 | 0 | - | - | |||
| CITIC Securities Company Limited | Domestic non-state-owned corporation | 0.73% | 67,868,267 | 0 | - | - | |||
| UBS AG | Overseas corporation | 0.72% | 66,987,946 | 0 | - | - | |||
| Central Huijin Investment Ltd. | State-owned corporation | 0.70% | 65,818,800 | 0 | - | - | |||
| 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 without trading restrictions held at the period-end | Type of shares | |
| Type | Number | ||
| China Electronics Technology HIK Group Co., Ltd. | 3,653,674,956 | RMB ordinary shares | 3,653,674,956 |
| Hong Kong Securities Clearing Company Ltd.(HKSCC) | 879,458,857 | RMB ordinary shares | 879,458,857 |
| Xinjiang Weixun Investment Management Limited Partnership | 450,795,176 | 450,795,176 | |
| Gong Hongjia | 313,764,175 | RMB ordinary shares | 313,764,175 |
| Xinjiang Pukang Investment Limited Partnership | 182,510,174 | RMB ordinary shares | 182,510,174 |
| The 52nd Research Institute at China Electronics Technology Group Corporation | 180,775,044 | RMB ordinary shares | 180,775,044 |
| CITIC Securities Company Limited | 67,868,267 | RMB ordinary shares | 67,868,267 |
| UBS AG | 66,987,946 | RMB ordinary shares | 66,987,946 |
| Central Huijin Investment Ltd. | 65,818,800 | RMB ordinary shares | 65,818,800 |
| Hu Yangzhong | 45,546,619 | RMB ordinary shares | 45,546,619 |
| Explanation on associated relationship and concerted actions among top ten common shareholders without trading restrictions, and among top ten common shareholders and top ten common shareholders without trading restrictions | China Electronics Technology HIK Group 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 Xinjiang Pukang Investment Limited Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder of the Company. Hu Yangzhong, domestic individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang Pukang Investment 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 Measures for Management of the Disclosure of the Shareholding Changes of Shareholders of the Listed Company. | ||
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducts anyagreed buy-back in the reporting period?□ Applicable √ InapplicableNo such cases in the reporting period.2. Total number of preferred shareholders and information about Top 10 preferred shareholders□ Applicable √ Inapplicable
Section III Significant Events
1. Information and explanation about variations in key financial statement items and financial indicators during the reporting period.
√Applicable □Inapplicable
1.1 Explanation for variations in balance sheet items
| Item | Balance at March 31st 2019 (RMB) | Balance at December 31st 2018 (RMB) | Change (%) | Note of Changes |
| Financial assets at fair value through current profit and loss | 0.00 | 1,860,050.59 | -100.00% | According to the new financial instrument standards, the financial assets, which are measured at fair value through current profit or loss at the end of the prior year, are adjusted to be presented under held-for-trading financial assets at the end of the current reporting period. |
| Held-for-trading financial assets | 9,437,149.64 | 0.00 | 100.00% | |
| Other current assets | 2,361,188,959.22 | 730,682,813.14 | 223.15% | According to the new financial instrument standards, some of the notes receivable of the Company at the end of the prior year were adjusted to other current assets at the end of the current reporting period. |
| Available for sale financial assets | 0.00 | 290,966,813.00 | -100.00% | According to the new financial instrument standards, the available-for-sale financial assets of the Company at the end of the prior year were adjusted to other non-current financial assets at the end of the current reporting period. |
| Other non-current financial assets | 290,966,813.00 | 0.00 | 100.00% | |
| Long-term prepaid expenses for amortization | 22,996,190.27 | 0.00 | 100.00% | Newly added house renovation costs for amortization |
| Financial liabilities at fair value through current profit and loss | 0.00 | 290,998.43 | -100.00% | According to the new financial instrument standards, the financial liabilities, which are measured at fair value through current profit or loss at the end of the prior year, are adjusted to be presented under held-for-trading financial liabilities at the end of the current reporting period. |
| Held-for-trading financial liabilities | 4,641,808.18 | 0.00 | 100.00% |
| Notes payable and accounts payable | 7,128,014,060.23 | 10,765,145,485.74 | -33.79% | Increase in procurement payment due |
| Payroll payable | 630,067,901.88 | 1,921,608,104.04 | -67.21% | The 2018 year-end bonus are distributed during the current quarter |
| Non-current liabilities due within one year | 16,071,686.29 | 3,178,171,147.16 | -99.49% | Euro bond was due and paid-off during the current quarter |
| Long-term borrowings | 4,240,800,000.00 | 440,000,000.00 | 863.82% | Newly added foreign currency loans for long-term asset investments |
| Long-term payables | 36,612,836.89 | 0.00 | 100.00% | Payables for outstanding financing lease payments |
| Other payables | 698,402,283.29 | 2,953,203,190.99 | -76.35% | The shares for 2018 Restricted Incentive Stock Scheme were granted, and the investment funds were converted into share capital and capital reserve, which led to a decrease in other payables and an increase in capital reserve. Other current liabilities and treasury shares increased according to the increase in the number of shares subject to sale restrictions. |
| Capital reserves | 4,012,784,365.61 | 1,956,139,660.52 | 105.14% | |
| Other current liabilities | 2,422,883,636.78 | 364,984,759.94 | 563.83% | |
| Treasury stocks | 2,422,883,636.78 | 364,984,759.94 | 563.83% |
1.2 Explanation for variations in income statement items
| Item | 2019 Q1 (RMB) | 2018 Q1 (RMB) | YoY Change (%) | Note of changes |
| Administrative expenses | 339,835,080.69 | 260,406,184.32 | 30.50% | Personnel growth |
| R&D expenses | 1,059,175,176.03 | 734,653,289.03 | 44.17% | Investments in R&D continues to increase |
| Financial expense | 140,437,311.57 | 257,430,070.75 | -45.45% | Decrease in foreign exchange losses |
| Gains from changes in fair values | 3,301,205.32 | -42,253,561.30 | 107.81% | Changes in fair value for foreign exchange hedging products |
1.3 Explanation for variations in cash flow statement items
| Item | 2019 Q1 (RMB) | 2018 Q1 (RMB) | YoY Change (%) | Note of changes |
| Net cash flow from operating activities | -3,038,198,689.80 | -3,856,064,680.53 | 21.21% | Increase in sales receipts during the current reporting period |
| Net cash flow from investing activities | -447,200,463.78 | -1,744,035,918.57 | 74.36% | Reduced investment in principal-guaranteed bank financial products |
2. Progress and influence of significant events, analysis and explanation of corresponding solutions.
□ Applicable √ Inapplicable
3. Incomplete commitments from the related committed parties such as the Company’s actual controller, shareholders, related parties,acquirer(s), and the Company during the reporting period
√Applicable □ Inapplicable
| Commitments | Giver of commitments | Details of commitments | Date of commitments | Term of commitments | Performance |
| Commitments in offering documents or shareholding alterations | CETHIK Group Co., Ltd. | 1. Commitments in non-competition within the industry: In the period as controlling shareholders of the Hikvision, CETHIK and its controlling subsidiaries (excluding Hikvision and its subsidiaries, the same below) will not be engaged in such business that is competitive to Hikvision and its subsidiaries directly or indirectly. 2. Commitments in decrease and regulation of transactions with related party: Zhejiang Haikang Group Co., Ltd (hereinafter referred to as Haikang Group or actual controller) as the controlling shareholders of Hangzhou Hikvision Digital Technology Co., Ltd (hereinafter referred to as "Hikvision" or "Listed Company") are commited as below for the transactions with Hikvsion: (1) Haikang Group will not make use of the controlling power to offer more favorable conditions to Hikvision than those to any independent third party in any fair market transactions in the cooperation with Hikvision. (2) Haikang Group will not make use of the controlling power to obtain the | October 29th 2013 | Long-term | Strict performance |
| Commitments | Giver of commitments | Details of commitments | Date of commitments | Term of commitments | Performance |
| prior right to complete the transaction with Hikvision. (3) Haikang Group will not deal with Hikvsion in not fair terms comparing to the market prices to prejudice the Company’s interests. For unavoidable related transactions, the Company will observe the principles of justice and fairness to deterimine prices according to the market on the basis of equality, voluntarily. The Company will obey the Articles of Association and other regulatory documents related to the avoiding of issues about related transactions. The related transactions will go through approval procedures in accordance with related rules and complete legal procedures, fulfilling the information disclosure obligations in respect to the related transactions 3. Commitment to the maintenance of the independence of the listed Company 3.1 Commitment to Personnel Independence of the listed Company (1) Commitment that our general manager, deputy general manager, chief financial officer, secretary of the board and other members of senior management shall not assume any positions other than directors and supervisors or get any remuneration in CETHIK and/or any of its controlled entities; (2) Commitment in keeping the management of labor, human resources and issues related to remuneration of the listed Company independent from that of CETHIK; 3.2 Commitment to the independence of the asset of the listed Company (1) Commitment to independent and complete asset of the listed Company (2) Commitment free of unlawful use of cash and asset of the listed Company by the controlling shareholders 3.3 Commitment to financial independence of the listed Company (1) Commitment to an independent finance department with a team and accounting system; (2) Commitment to a regulated, independent accounting system and financial management system of the branches and subsidiaries (3) Commitment to maintaining accounts with banks independently of and not sharing any bank account with our controlling shareholders (4) Commitment that the financial staff shall not assume any positions in |
| Commitments | Giver of commitments | Details of commitments | Date of commitments | Term of commitments | Performance |
| CETHIK (5) Commitment to paying taxes independently according to the law; (6) Commitment to implementing financial decisions independently 3.4 The Company has set up an independent organizational structure which maintains its independent operations which is independent from that of CETHIK. 3.5 Commitment to business Independence of the listed Company (1) The Company has the asset, personnel, aptitude and management capability for independent and complete business operation. The Company has the ability to operate independently in the market. (2) Commitment in independence in both business and operations 4. Regarding plans for the development and relevant commitment for the listed Company, Haikang Group has committed as below for the subsequent development of Hikvsion according to the Securities Acts and relevant laws and rules, 4.1 Currently the Company has no plan to change or make significant adjustments for principal business in the next 12 months; 4.2 Currently the Company has no plan to sell, merge or operate with another Company for the assets and business of the listed Company or its subsidiaries in the next 12 months. 4.3 Currently the Company has no plan to alter the Board of the Directors and senior management and no agreement with other shareholders about the appointment and removal of the directors or senior management. The team of Board of Directors and senior management will remain unchanged for the foreseeable future. 4.4 Currently the Company has no plan to make significant changes to the Articles of Association for the listed Company. 4.5 Currently the Company has no plan to make significant changes to the |
| Commitments | Giver of commitments | Details of commitments | Date of commitments | Term of commitments | Performance |
| existing employee recruitment for the listed Company. 4.6 Currently the Company has no plan to make significant changes for the dividend distribution plan for the listed Company. 4.7 Currently the Company has no plan to make significant changes for business and organizational structure for the listed Company. | |||||
| Commitments in Initial Public Offering or re-financing | Hangzhou Weixun Investment Management Limited Partnership（later renamed as Xinjiang Weixun Investment Management Limited Partnership） | During Hu Yangzhong, Wu Weiqi, JiangHaiqing, Zhou Zhiping, Xu Lirong, Cai Dingguo, He Hongli, Zheng Yibo, Hu Dan,、Jiang Yufeng, Liu Xiang, Wang Ruihong, Chen Junke’s tenure of the Company’s board of directors, supervisors and senior management personnel, the annual transfer of Hikvision’s total shares should not exceed 25% of total number of shares held under Weixun; within 6 months after abovementioned personnel’s dimission, should not transfer Hikvision’s shares held under Weixun. | May 17th 2010 | Long term | Strict performance |
| Hangzhou Pukang Investment Limited Partnership（later renamed as Xinjiang Pukang Investment Limited Partnership） | During Hu Yangzhong, Wu Weiqi, Gong Hongjia’s tenure of the Company’s board of directors, supervisors and senior management personne, the annual transfer of Hikvision’s total shares should not exceed 25% of total number of shares held under Pukang; whithin 6 months after abovementioned personnel’s dimission, should not transfer Hikvision’s shares held under Pukang. | May 17th 2010 | Long term | Strict performance | |
| The Company's directors, supervisors and executive: HuYangzhong,Wu Weiqi, Jiang Haiqing, Zhou Zhiping，Xu Lirong, Cai Dingguo, He Hongli, Zheng Yibo, Hu Dan, Jiang Yufeng, Liu Xiang, Wang Ruihong, Chen Junke | During their tenure of the Company’s board of directors, supervisors and senior management personnel, the annual shares transfer should not exceed 25% of total number of shares held under Weixun; whthin 6 months after their dimission, they should not transfer their shares held under Weixun. | May 17th 2010 | Long term | Strict performance | |
| Directors, executive officers of the Company: Hu Yangzhong, Wu Weiqi | During their tenure of the Company’s board of directors, supervisors and senior management personnel, the annual shares transfer should not exceed | May 17th 2010 | Long term | Strict performance |
| Commitments | Giver of commitments | Details of commitments | Date of commitments | Term of commitments | Performance |
| 25% of total number of shares held under Pukang; whthin 6 months after their dimission, they should not transfer their shares held under Pukang. | |||||
| The Company’s director Gong Hongjia’s spouse, Chen Chunmei | During Gong Hongjia’s tenure of the Company’s board of directors, supervisors and senior management personnel, Chen’s annual shares transfer should not exceed 25% of total number of shares held under Pukang; whthin 6 months after the dimission of Gong Hongjia,Chen should not transfer her shares held under Pukang. | May 17th 2010 | Long-term | Strict performance | |
| China Electronics Technology Group Corporation（later renamed as China Electronics Technology Group Co., Ltd.） | To avoid any loss of the Company and other shareholders arising from any competing business, China Electronics Technology Group Corporation, the actual controller of the Company, issued Letters of non-competition on 18 September, 2008. | September 18th 2008 | Long term | Strict performance | |
| Gong Hongjia； Hangzhou Weixun Investment Management Limited Partnership（later renamed as Xinjiang Weixun Investment Management Limited Partnership）； Hangzhou Pukang Investment Limited Partnership（later renamed as Xinjiang Pukang Investment Limited Partnership）；ZheJiang Orient Holdings Co., Ltd. | To avoid any loss of the Company and other shareholders arising from any competing business, Gong Hongjia, Hangzhou WeiXun Investment Management Limited Partnership, ZheJiang Orient Holdings Co., Ltd and Hangzhou KangPu Investment Management Limited Partnership, the promoters of the Company, issued Commitment Letters of non-competition in the same industry on 10 July, 2008. | July 10th 2008 | Long term | Strict performance | |
| Other commitments to the company's minority shareholders | CETC Investment Holdin Co.,Ltd (CETCIH).; The 52nd Research Institute at China Electronics Technology Group Corporation; China Electronics Technology Group Co., Ltd. | During the effective period of the implementation of CETCIH’s plan to increase the holding of Hikvision (within 6 months from October 23rd 2018) and the statutory period, CETCIH will not reduce its shareholdings of Hikvision | October 23rd 2018 | Within 6 months from October 23rd 2018 | Strict performance |
| Commitments | Giver of commitments | Details of commitments | Date of commitments | Term of commitments | Performance |
| Whether the commitments is fulfilled in time | Yes | ||||
4. Guidance on the Company’s operational result from January 1
st
2019 to June 30
th
2019
Guidance on the Company’s operational performance from January 1
st
2019 to June 30
th
2019: Net profits attributable to shareholders of the Company are positive,and situation of turning losses into gains is not applicable.
| Estimated YoY change (%) of net profits attributable to shareholders of the Company from January 1st 2019 to June 30th 2019 | -10.00% | to | 10.00% |
| Estimated variation interval of net profits attributable to shareholders of the Company from January 1st 2019 to June 30th 2019 (0,000 RMB) | 373,265.60 | to | 456,213.51 |
| Net profits attributable to shareholders of the Company from January 1st 2018 to June 30th 2018 (0,000 RMB) | 414,739.55 | ||
| Note of change in operational results | The Company’s operating performance continues to have a solid growth. | ||
5. Financial Assets measured at fair value
√ Applicable □ Inapplicable
Unit: RMB
| Asset Category | Initial investment cost | Profits or losses on the changes in fair value in current period | Cumulative fair value change charged to equity | Purchase during the reporting period | Sales during the reporting period | Cumulative investment income | Closing balance | Source of funds |
| Financial derivative instruments | 1,013,306,062.25 | 3,301,205.32 | 0.00 | 239,253,700.00 | 1,954,274.06 | 571,588,870.81 | Company's own funds | |
| Notes receivable | 1,793,592,867.04 | -16,820,536.48 | 1,776,772,330.56 | Company's own funds |
| Asset Category | Initial investment cost | Profits or losses on the changes in fair value in current period | Cumulative fair value change charged to equity | Purchase during the reporting period | Sales during the reporting period | Cumulative investment income | Closing balance | Source of funds |
| Equity investments | 290,966,813.00 | 290,966,813.00 | Company's own funds | |||||
| Total | 3,097,865,742.29 | 3,301,205.32 | -16,820,536.48 | 239,253,700.00 | 0.00 | 1,954,274.06 | 2,639,328,014.37 | -- |
6. Illegal provision of guarantees for external parties
□ Applicable √ InapplicableNo such case in the reporting period.
7. The Company’s funds used by the controlling shareholder or its related parties for non-operating purposes
□ Applicable √ Inapplicable
No such case in the reporting period.
8. Schedule for the reception activities including research, communication and interviews during the current reporting period
√ Applicable □ Inapplicable
8.1 Reception of research activities during 2019 Q1
| Time of reception | Method of reception | Type of reception object | Index of basic situation of the research |
| From January 1st 2019 to January 11th 2019 | Site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From January 1st 2019 to January 11th 2019 |
| From January 14th 2019 to January 31st 2019 | Site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From January 14th 2019 to January 31st 2019 |
| From February 15th 2019 to March 1st 2019 | Site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From February 15th 2019 to March 1st 2019 |
| Time of reception | Method of reception | Type of reception object | Index of basic situation of the research |
| From March 4th 2019 to March 19th 2019 | Site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From March 4th 2019 to March 19th 2019 |
9.2 Participation of conferences for investor relationship activities during 2019 Q1
| Time of conference | Location | Conference Name | Type of reception object | Method of reception |
| January 2019 | Shanghai | UBS 19th Greater China Conference 2019 | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| January 2019 | Beijing | Morgan Stanley 2019 China New Economy Summit | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| January 2019 | Shenzhen | 17th Annual dbAccess China Conference 2019 | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| February 2019 | Hongkong | Macquarie A-Share Technology Stock Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| March 2019 | Taibei | Bank of America Merrill Lynch Asia TMT Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
9.3 Investor relations activity statistics during 2019 Q1
| Number of daily research received (On-site and telephone conference, times) | 54 |
| Number of institutional investors received (ppl) | 220 |
| Number of individual investors received (ppl) | 0 |
| Number of investor relations conference participated | 5 |
Section IV Financial Reports
4.1 Financial Reports1. Consolidated Balance Sheet
Prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
March 31
st
2019
Unit: RMB
| Item | Closing balance | Opening balance |
| Current Assets: | ||
| Cash and bank balances | 23,689,219,537.88 | 26,552,402,711.23 |
| Balances with clearing agencies | ||
| Lendings with banks and other financial institutions | ||
| Held-for-trading financial assets | 9,437,149.64 | 1,860,050.59 |
| Financial assets at fair value through current profit and loss | ||
| Derivative financial assets | ||
| Notes Receivable and Accounts Receivables | 17,011,890,539.07 | 16,915,040,071.25 |
| Including : Notes receivable | 246,914,054.43 | 295,598,790.07 |
| Accounts receivable | 16,764,976,484.64 | 16,619,441,281.18 |
| Prepayments | 594,988,091.64 | 460,304,219.65 |
| Premiums receivable | ||
| Amounts receivable under reinsurance contracts | ||
| Reinsurer's share of insurance contract reserves | ||
| Other receivables | 552,495,647.23 | 586,748,265.21 |
| Including: Interests receivable | ||
| Dividends receivable | 17,357,220.31 | |
| Financial assets purchased under resale agreements | ||
| Inventories | 5,862,542,965.33 | 5,725,104,153.41 |
| Contract assets | ||
| Held-for-sale assets | ||
| Non-current assets due within one year | 380,479,565.93 | 380,795,020.47 |
| Item | Closing balance | Opening balance |
| Other current assets | 2,361,188,959.22 | 2,978,040,396.42 |
| Total Current Assets | 50,462,242,455.94 | 53,600,294,888.23 |
| Non-current Assets: | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Available-for-sale financial assets | ||
| Other debt investments | ||
| Held-to-maturity investments | ||
| Long-term receivables | 743,455,496.30 | 705,512,368.17 |
| Long-term equity investments | 159,729,704.73 | 163,301,844.56 |
| Other equity investments | ||
| Other non-current financial assets | 290,966,813.00 | 290,966,813.00 |
| Investment properties | ||
| Fixed assets | 5,199,336,097.11 | 5,082,415,160.10 |
| Construction in progress | 486,435,856.27 | 416,092,413.42 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-to-use assets | ||
| Intangible assets | 993,696,774.19 | 869,913,050.09 |
| Development expenditures | ||
| Goodwill | 209,382,366.79 | 212,269,337.23 |
| Long-term prepaid expenses | 22,996,190.27 | |
| Deferred tax assets | 519,044,957.03 | 534,346,941.25 |
| Other non-current assets | 1,460,475,392.97 | 1,582,750,600.80 |
| Total Non-current Assets | 10,085,519,648.66 | 9,857,568,528.62 |
| Total Assets | 60,547,762,104.60 | 63,457,863,416.85 |
| Current Liabilities: | ||
| Short-term borrowings | 3,667,674,763.23 | 3,465,655,688.29 |
| Loans from the central bank | ||
| Capitals taking from banks and other financial institutions | ||
| Held-for-trading financial liabilities | 4,641,808.18 | 290,998.43 |
| Financial liabilities at fair value through current profit and loss | ||
| Derivative financial liabilities |
| Item | Closing balance | Opening balance |
| Notes payable & Accounts payable | 7,128,014,060.23 | 10,765,145,485.74 |
| Receipts in advance | 573,263,127.09 | 641,430,490.22 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and deposits from banks and other financial institutions | ||
| Funds from securities trading agency | ||
| Funds from underwriting securities agency | ||
| Payroll payable | 630,067,901.88 | 1,921,608,104.04 |
| Taxes payable | 1,148,883,533.88 | 1,418,921,664.57 |
| Other payables | 698,402,283.29 | 2,953,203,190.99 |
| Including: Interests payable | ||
| Dividends payable | 73,091,258.74 | 119,917,640.92 |
| Fees and commissions payable | ||
| Amounts payable under reinsurance contracts | ||
| Contract liabilities | ||
| Held-for-sale liabilities | ||
| Non-current liabilities due within one year | 16,071,686.29 | 3,178,171,147.16 |
| Other current liabilities | 2,422,883,636.78 | 364,984,759.94 |
| Total Current Liabilities | 16,289,902,800.85 | 24,709,411,529.38 |
| Non-current Liabilities: | ||
| Insurance contract reserves | ||
| Long-term borrowings | 4,240,800,000.00 | 440,000,000.00 |
| Bonds payable | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Leasing liabilities | ||
| Long-term payables | 36,612,836.89 | |
| Provisions | 76,800,040.78 | 77,625,238.49 |
| Deferred income | 317,864,873.97 | 293,179,089.13 |
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 4,672,077,751.64 | 810,804,327.62 |
| Total liabilities | 20,961,980,552.49 | 25,520,215,857.00 |
| Owners’ Equities |
| Item | Closing balance | Opening balance |
| Share capital | 9,348,465,931.00 | 9,227,270,473.00 |
| Other equity instruments | ||
| Including: Preferred share | ||
| Perpetual debt | ||
| Capital reserves | 4,012,784,365.61 | 1,956,139,660.52 |
| Less: Treasury stock | 2,422,883,636.78 | 364,984,759.94 |
| Other comprehensive income | -72,767,416.81 | -76,065,167.67 |
| Surplus reserves | 4,460,712,358.45 | 4,460,712,358.45 |
| General risk reserve | ||
| Retained earnings | 23,897,414,762.99 | 22,360,593,257.53 |
| Total owners' equity attributable to owner of the Company | 39,223,726,364.46 | 37,563,665,821.89 |
| Minority interests | 362,055,187.65 | 373,981,737.96 |
| Total owners' equity | 39,585,781,552.11 | 37,937,647,559.85 |
| Total liabilities and owners' equity | 60,547,762,104.60 | 63,457,863,416.85 |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | Closing balance | Opening balance |
| Current Assets: | ||
| Cash and bank balances | 18,863,944,733.97 | 19,192,461,228.22 |
| Held-for-trading financial assets | ||
| Financial assets at fair value through current profit and loss | ||
| Derivative financial assets | ||
| Notes receivable & Accounts receivable | 22,132,138,034.55 | 15,325,923,955.48 |
| Including: Notes receivable | 72,902,964.58 | 121,404,793.77 |
| Accounts receivable | 22,059,235,069.97 | 15,204,519,161.71 |
| Prepayments | 195,780,892.75 | 132,344,929.55 |
| Other receivables | 831,724,252.68 | 522,987,955.34 |
| Including: Interests receivable | ||
| Dividends receivable | 19,907,220.31 | 2,550,000.00 |
| Inventories | 66,335,666.02 | 168,885,723.93 |
| Item | Closing balance | Opening balance |
| Contract assets | ||
| Held-for-sale assets | ||
| Non-current assets due within one year | ||
| Other current assets | 179,471,590.77 | 321,871,615.09 |
| Total Current Assets | 42,269,395,170.74 | 35,664,475,407.61 |
| Non-current Assets: | ||
| Debt investments | ||
| Available-for-sale financial assets | ||
| Other debt investments | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 4,382,145,555.87 | 4,361,147,395.90 |
| Other equity investments | ||
| Other non-current financial assets | 290,956,813.00 | 290,956,813.00 |
| Investment properties | ||
| Fixed assets | 2,848,146,704.92 | 2,844,176,300.34 |
| Construction in progress | 76,816,992.24 | 65,156,482.70 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-to-use assets | ||
| Intangible assets | 205,106,707.93 | 197,147,608.73 |
| Development expenditure | ||
| Goodwill | ||
| Long-term prepaid expenses | ||
| Deferred tax assets | 221,779,547.02 | 221,779,547.02 |
| Other non-current assets | 3,045,101.70 | 14,601,579.55 |
| Total Non-Current Assets | 8,027,997,422.68 | 7,994,965,727.24 |
| Total Assets | 50,297,392,593.42 | 43,659,441,134.85 |
| Current Liabilities: | ||
| Short-term borrowings | 200,000,000.00 | |
| Held-for-trading financial liabilities | ||
| Financial liabilities at fair value through current profit and loss | ||
| Derivative financial liabilities |
| Item | Closing balance | Opening balance |
| Notes payable & Accounts payable | 321,500,523.87 | 356,787,605.91 |
| Receipts in advance | 173,076,335.61 | 204,337,524.21 |
| Contract liabilities | ||
| Payroll payables | 487,392,910.14 | 1,272,626,004.95 |
| Taxes payables | 837,251,221.99 | 987,057,652.70 |
| Other payables | 6,357,906,472.47 | 2,529,600,057.31 |
| Including: Interests payable | ||
| Dividends payable | 70,641,258.74 | 117,467,640.92 |
| Held-for-sale liabilities | ||
| Non-current liabilities due within one year | 3,172,727,888.37 | |
| Other current liabilities | 2,422,883,636.78 | 364,984,759.94 |
| Total Current Liabilities | 10,800,011,100.86 | 8,888,121,493.39 |
| Non-Current Liabilities: | ||
| Long-term borrowings | 3,016,800,000.00 | |
| Bonds payable | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Leasing liabilities | ||
| Long-term payables | ||
| Provisions | 52,956,535.09 | 52,956,535.09 |
| Deferred income | 158,337,775.51 | 186,747,708.01 |
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 3,228,094,310.60 | 239,704,243.10 |
| Total liabilities | 14,028,105,411.46 | 9,127,825,736.49 |
| Owners' equity | ||
| Share capital | 9,348,465,931.00 | 9,227,270,473.00 |
| Other equity instruments | ||
| Including: Preferred share | ||
| Perpetual bond | ||
| Capital reserves | 3,945,030,120.97 | 1,883,262,407.46 |
| Less: Treasury share | 2,422,883,636.78 | 364,984,759.94 |
| Other comprehensive income | -2,209,479.93 | -2,178,538.52 |
| Item | Closing balance | Opening balance |
| Surplus reserves | 4,460,712,358.45 | 4,460,712,358.45 |
| Retained earnings | 20,940,171,888.25 | 19,327,533,457.91 |
| Total owners' equity | 36,269,287,181.96 | 34,531,615,398.36 |
| Total liabilities and owners' equity | 50,297,392,593.42 | 43,659,441,134.85 |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
3. Consolidated Income Statement
Unit: RMB
| Item | 2019 Q1 | 2018 Q1 |
| I. Total operating income | 9,942,448,619.42 | 9,364,828,201.00 |
| Including: Operating income | 9,942,448,619.42 | 9,364,828,201.00 |
| Interest income | ||
| Premiums earned | ||
| Fees and commissions income | ||
| II. Total operating costs | 8,459,559,903.73 | 7,601,579,147.44 |
| Including: Operating costs | 5,485,765,941.97 | 5,144,866,014.52 |
| Interest expenses | ||
| Fees and commissions expenses | ||
| Surrender charge fee | ||
| Claims and policyholder benefits (net of amounts recoverable from reinsurers) | ||
| Insurance contract reserves (net of reinsurers’ share) | ||
| Insurance policyholder dividends | ||
| Expenses for reinsurance accepted | ||
| Business taxes and levies | 77,337,440.61 | 70,291,380.92 |
| Selling expenses | 1,317,557,509.65 | 1,084,628,143.59 |
| Administrative expenses | 339,835,080.69 | 260,406,184.32 |
| R&D expenses | 1,059,175,176.03 | 734,653,289.03 |
| Financial expenses | 140,437,311.57 | 257,430,070.75 |
| Including: Interest expenses | 55,224,699.96 | 60,245,855.52 |
| Interest income | 152,237,461.48 | 128,780,160.00 |
| Impairment losses of assets | 2,541,417.08 | 49,304,064.31 |
| Credit impairment losses | 36,910,026.13 |
| Item | 2019 Q1 | 2018 Q1 |
| Add: Other income | 339,329,038.35 | 398,225,011.54 |
| Investment income (Loss is indicated by "－") | 15,739,354.54 | 21,904,699.06 |
| Including: Income from investments in associates and joint ventures | -3,572,139.83 | 342,772.48 |
| Foreign exchange gains (Losses are indicated by “－”) | ||
| Gains from hedging of net exposure (Losses are indicated by "－") | ||
| Gains from changes in fair values (Losses are indicated by "－") | 3,301,205.32 | -42,253,561.30 |
| Gains from disposal of assets (Losses are indicated by “－”) | 408,476.41 | 3,430,565.03 |
| III. Operating profit (Loss is indicated by "－") | 1,841,666,790.31 | 2,144,555,767.89 |
| Add: Non-operating income | 20,519,688.26 | 13,022,792.29 |
| Less: Non-operating expenses | 2,085,124.56 | 1,536,336.10 |
| IV. Total profit (total losses expressed with "-") | 1,860,101,354.01 | 2,156,042,224.08 |
| Less: Income tax expenses | 342,176,314.58 | 373,754,038.72 |
| V. Net profit (net loss expressed with "-") | 1,517,925,039.43 | 1,782,288,185.36 |
| 1．Classified by business continuity | ||
| (1) Net profit on continuous operation (net losses expressed with "-") | 1,517,925,039.43 | 1,782,288,185.36 |
| (2) Net profit on terminated operation (net losses expressed with "-") | ||
| 2. Classified by ownership | ||
| (1) Net profit attributable to owners of parent company | 1,536,118,222.96 | 1,815,964,569.77 |
| (2) Profit or loss attributable to minority interests | -18,193,183.53 | -33,676,384.41 |
| VI. Other comprehensive income, net of income tax | 3,421,375.11 | 15,159,851.45 |
| Other comprehensive income attributable to owners of the Company, net of tax | 3,297,750.86 | 17,152,186.03 |
| (I) Items that are not reclassified to profit or loss | ||
| 1. Changes in re-measurement of defined benefit obligation | ||
| 2. Amounts of other comprehensive income that cannot be transferred into profit or loss under equity method | ||
| 3. Changes in fair value of other equity instruments investment | ||
| 4. Changes in the fair value of the Company's own credit risk |
| Item | 2019 Q1 | 2018 Q1 |
| 5. Others | ||
| (II) Other comprehensive income to be reclassified to profit or loss | 3,297,750.86 | 17,152,186.03 |
| 1. Amounts of other comprehensive income that are able to be transferred into profit or loss under equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Gain or losses attributes to the changes in fair value of available-for-sale financial assets | ||
| 4. The amount of financial assets reclassified into other comprehensive income | ||
| 5. Gains or losses through reclassifying held-to-maturity financial assets into available-for-sale financial assets | ||
| 6. Credit impairment provisions for other debt investments | ||
| 7. Cash flow hedge reserve | ||
| 8. Exchange differences arising on conversion of financial statements denominated in foreign currencies | -6,370,529.23 | 17,152,186.03 |
| 9. Gains and losses from changes in fair value of other current assets | 9,668,280.09 | |
| 10. Others | ||
| Other comprehensive income attributable to minority interests, net of tax | 123,624.25 | -1,992,334.58 |
| VII. Total comprehensive income | 1,521,346,414.54 | 1,797,448,036.81 |
| Total comprehensive income attributable to owners of the parent company | 1,539,415,973.82 | 1,833,116,755.80 |
| Total comprehensive income attributable to minority interests | -18,069,559.28 | -35,668,718.99 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.168 | 0.199 |
| (II) Diluted earnings per share | 0.167 | 0.197 |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
4. Income Statement of the Parent Company
Unit: RMB
| Item | 2019 Q1 | 2018 Q1 |
| I. Total operating income | 4,377,811,528.72 | 3,928,907,152.63 |
| Less: Operating Costs | 1,280,978,910.20 | 1,169,938,051.45 |
| Business taxes and levies | 52,619,746.17 | 51,940,799.46 |
| Item | 2019 Q1 | 2018 Q1 |
| Selling expenses | 595,502,558.08 | 476,356,746.70 |
| Administrative expenses | 146,822,872.04 | 102,594,537.11 |
| R R&D expenses | 754,601,871.17 | 465,592,061.36 |
| Financial expenses | -32,942,250.80 | 146,185,915.34 |
| Including: Interest expenses | 31,341,521.92 | 44,495,750.95 |
| Interest income | 139,063,199.07 | 121,694,763.43 |
| Impairment losses of assets | ||
| Credit impairment losses | 3,691,052.90 | |
| Add: Other income | 300,013,588.73 | 365,167,317.80 |
| Investment income (Loss is indicated by "－") | 14,758,099.27 | -5,689,637.96 |
| Including: Income from investments in associates and joint ventures | -2,599,121.60 | 342,772.48 |
| Gains from hedging of net exposure (Loss is indicated by "－") | ||
| Gains from changes in fair values (Losses are indicated by "－") | ||
| Gains from disposal of assets (Loss is indicated by "－") | 83,734.40 | 3,494,397.51 |
| II. Operating profit (loss is indicated by "－") | 1,891,392,191.36 | 1,879,271,118.56 |
| Add: Non-operating income | 5,055,004.45 | 2,193,088.96 |
| Less: Non-operating expenses | 941,317.88 | 346,091.67 |
| III. Total profit (total loss is indicated by "－") | 1,895,505,877.93 | 1,881,118,115.85 |
| Less: Income tax expenses | 283,570,730.09 | 281,964,253.80 |
| IV. Net profit (Net loss is indicated by "－") | 1,611,935,147.84 | 1,599,153,862.05 |
| (1) Net profit on continuous operation (net losses expressed with "-") | 1,611,935,147.84 | 1,599,153,862.05 |
| (2) Net profit on terminated operation (net losses expressed with "-") | ||
| V. Other comprehensive income, net of income tax | -30,941.41 | |
| (I) Items that are not reclassified to profit or loss | ||
| 1. Changes in re-measurement of defined benefit obligation | ||
| 2. Amounts of other comprehensive income that cannot be transferred into profit or loss under equity method | ||
| 3. Changes in fair value of other equity instruments investment | ||
| 4. Changes in the fair value of the Company's own credit risk |
| Item | 2019 Q1 | 2018 Q1 |
| 5. Others | ||
| (II) Other comprehensive income to be reclassified to profit or loss | -30,941.41 | |
| 1. Amounts of other comprehensive income that are able to be transferred into profit or loss under equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Gain or losses attributes to the changes in fair value of available-for-sale financial assets | ||
| 4. The amount of financial assets reclassified into other comprehensive income | ||
| 5. Gains or losses through reclassifying held-to-maturity financial assets into available-for-sale financial assets | ||
| 6. Credit impairment provisions for other debt investments | ||
| 7. Cash flow hedge reserve | ||
| 8. Exchange differences arising on conversion of financial statements denominated in foreign currencies | ||
| 9. Gains and losses from changes in fair value of other current assets | -30,941.41 | |
| 10. Others | ||
| VI. Total comprehensive income | 1,611,904,206.43 | 1,599,153,862.05 |
| VII. Earnings per share | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | 2019 Q1 | 2018 Q1 |
| I. Cash flows from operating activities: | ||
| Cash received from sale of goods or rendering of services | 11,410,249,255.26 | 8,750,853,665.71 |
| Net increase in customer deposits and deposits from banks and other financial institutions | ||
| Net increase in borrowings from central bank | ||
| Net increase in placements from other financial institutions |
| Item | 2019 Q1 | 2018 Q1 |
| Cash receipts from premiums under direct insurance contracts | ||
| Net cash receipts from reinsurance business | ||
| Net increase in the insurance deposit and investment fund | ||
| Net cash receipts from disposal of financial assets measured by fair value that changes in fair value would be recognized in the current period gains and losses | ||
| Cash received from interests, fees and commissions | ||
| Net increase in capital taking from other banks | ||
| Net increase in capital from repurchase arrangements | ||
| Net cash received from trading securities | ||
| Refund of tax and levies | 830,266,831.46 | 900,802,467.84 |
| Other cash received relating to operating activities | 209,492,317.37 | 1,066,892,836.74 |
| Sub-total of cash inflows from operating activities | 12,450,008,404.09 | 10,718,548,970.29 |
| Cash payments for goods purchased and services received | 9,892,084,287.80 | 9,646,942,783.62 |
| Net increase in loans and advances to customers | ||
| Net increase in balance with the central bank and due to banks and other financial institutions | ||
| Cash payments for claims and policyholders' benefits under direct insurance contracts | ||
| Net increase in financial assets held for trading purposes | ||
| Net increase in lending to banks and other financial institutions | ||
| Cash paid for interests, fees and commissions | ||
| Cash payment for insurance policy dividends | ||
| Cash paid to and on behalf of employees | 2,928,612,571.38 | 2,157,265,649.41 |
| Payments of various types of taxes | 1,659,735,081.63 | 1,270,538,915.89 |
| Other cash paid relating to operating activities | 1,007,775,153.08 | 1,499,866,301.90 |
| Sub-total of cash outflows from operating activities | 15,488,207,093.89 | 14,574,613,650.82 |
| Net Cash Flow from Operating Activities | -3,038,198,689.80 | -3,856,064,680.53 |
| II. Cash Flows from Investing Activities: | ||
| Cash receipts from disposals and recovery of investments | 150,000,000.00 |
| Item | 2019 Q1 | 2018 Q1 |
| Cash receipts from investment income | 21,561,926.58 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 2,029,190.08 | 8,085,072.84 |
| Net cash receipts from disposals of subsidiaries and other business units | 6,909,760.56 | |
| Other cash received relating to investing activities | 1,344,387.34 | 5,502,905.57 |
| Sub-total of cash inflows from investing activities | 10,283,337.98 | 185,149,904.99 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 382,139,108.19 | 822,308,036.28 |
| Cash paid to acquire investments | 1,100,000,000.00 | |
| Net increase in pledged loans receivables | ||
| Net cash payments for acquisitions of subsidiaries and other business units | ||
| Other cash paid relating to investing activities | 75,344,693.57 | 6,877,787.28 |
| Sub-total of cash outflows from investing activities | 457,483,801.76 | 1,929,185,823.56 |
| Net Cash Flow from Investing Activities | -447,200,463.78 | -1,744,035,918.57 |
| III. Cash flows from financing activities: | ||
| Cash receipts from capital contributions | 1,020,000.00 | 127,400.00 |
| Including: cash received by subsidiaries from capital contributions from minority owners | ||
| Cash receipts from borrowings | 5,211,271,526.27 | 1,419,781,375.02 |
| Cash receipts from bond issue | ||
| Other cash receipts relating to financing activities | ||
| Sub-total of cash inflows from financing activities | 5,212,291,526.27 | 1,419,908,775.02 |
| Cash repayments of amounts borrowed | 1,149,914,953.81 | 304,081,731.11 |
| Cash repayments of bonds | 3,079,240,000.00 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 85,277,545.11 | 91,048,231.17 |
| Including: payments for distribution of dividends or profits to minority owners of subsidiaries | ||
| Other cash payments relating to financing activities | 2,095,080.00 | 6,555,746.33 |
| Sub-total of cash outflows from financing activities | 4,316,527,578.92 | 401,685,708.61 |
| Net Cash Flow from Financing Activities | 895,763,947.35 | 1,018,223,066.41 |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | -322,299,460.18 | -332,933,205.11 |
| V. Net Increase in Cash and Cash Equivalents | -2,911,934,666.41 | -4,914,810,737.80 |
| Item | 2019 Q1 | 2018 Q1 |
| Add: Opening balance of Cash and Cash Equivalents | 26,023,738,992.19 | 16,029,010,345.59 |
| VI. Closing Balance of Cash and Cash Equivalents | 23,111,804,325.78 | 11,114,199,607.79 |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
6. Cash Flow Statement of the Parent Company
Unit: RMB
| Item | 2019 Q1 | 2018 Q1 |
| I. Cash Flows from Operating Activities:: | ||
| Cash receipts from the sale of goods and the rendering of services | 1,728,586,413.34 | 1,502,210,097.61 |
| Refund of tax and levies | 269,765,182.91 | 350,404,780.81 |
| Other cash receipts relating to operating activities | 167,939,793.53 | 207,055,033.36 |
| Sub-total of cash inflows from operating activities | 2,166,291,389.78 | 2,059,669,911.78 |
| Cash payments for goods acquired and services received | 435,382,368.46 | 1,659,187,618.03 |
| Cash payments to and on behalf of employees | 1,706,007,499.64 | 1,229,827,502.82 |
| Payments of all types of taxes | 1,065,301,762.99 | 1,016,007,421.93 |
| Other cash payments relating to operating activities | 546,402,252.58 | 249,104,754.08 |
| Sub-total of cash outflows from operating activities | 3,753,093,883.67 | 4,154,127,296.86 |
| Net Cash Flow from Operating Activities | -1,586,802,493.89 | -2,094,457,385.08 |
| II. Cash Flows from Investing Activities: | ||
| Cash receipts from disposals and recovery of investments | 150,000,000.00 | |
| Cash receipts from investment income | 3,961,618.03 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 1,699,547.18 | 8,003,034.22 |
| Net cash receipts from disposals of subsidiaries and other business units | 22,061,775.64 | 5,971.53 |
| Other cash receipts relating to investing activities | 1,690,715,119.13 | 4,231,842,800.02 |
| Sub-total of cash inflows from investing activities | 1,714,476,441.95 | 4,393,813,423.80 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 84,514,098.16 | 196,125,986.75 |
| Cash payments to acquire investments | 1,100,000,000.00 | |
| Net cash payments for acquisitions of subsidiaries and other business units | 10,000,000.00 | 33,000,000.00 |
| Other cash payments relating to investing activities | 300,811,908.38 | 4,761,278,790.32 |
| Item | 2019 Q1 | 2018 Q1 |
| Sub-total of cash outflows from investing activities | 395,326,006.54 | 6,090,404,777.07 |
| Net Cash Flow from Investing Activities | 1,319,150,435.41 | -1,696,591,353.27 |
| III. Cash Flows from Financing Activities | ||
| Cash receipts from capital contributions | ||
| Cash receipts from borrowings | 3,279,240,000.00 | 500,000,000.00 |
| Cash receipts from issue of bonds | ||
| Other cash receipts relating to financing activities | ||
| Sub-total of cash inflows from financing activities | 3,279,240,000.00 | 500,000,000.00 |
| Cash repayments of amounts borrowed | 3,079,240,000.00 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 64,608,843.51 | 75,745,723.19 |
| Other cash payments relating to financing activities | 2,095,080.00 | 6,555,746.33 |
| Sub-total of cash outflows from financing activities | 3,145,943,923.51 | 82,301,469.52 |
| Net Cash Flow from Financing Activities | 133,296,076.49 | 417,698,530.48 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -195,291,375.88 | -148,871,705.11 |
| V. Net increase in cash and cash equivalents | -329,647,357.87 | -3,522,221,912.98 |
| Add: Beginning balance of cash and cash equivalents | 18,998,934,287.59 | 12,304,082,533.11 |
| VI. Closing Balance of Cash and Cash Equivalents | 18,669,286,929.72 | 8,781,860,620.13 |
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin YanPerson in Charge of Accounting Institution: Zhan Junhua
4.2 Note on financial statement adjustments1. The first implementation of the new financial instruments guidelines, new income standards, new lease standards; and the
adjustments on the financial statements at the beginning of the year for the first implementation.
√ Applicable □Not applicable
Consolidated Balance Sheet
Unit: RMB
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Current Assets: | |||
| Cash and bank balances | 26,552,402,711.23 | 26,552,402,711.23 | 0.00 |
| Balances with clearing agencies | |||
| Lendings with banks and other financial institutions | |||
| Held-for-trading financial assets | Not applicable | 1,860,050.59 | 1,860,050.59 |
| Financial assets at fair value through current profit and loss | 1,860,050.59 | Not applicable | -1,860,050.59 |
| Derivative financial assets | |||
| Notes Receivable and Accounts Receivables | 19,188,886,471.10 | 16,915,040,071.25 | -2,273,846,399.85 |
| Including : Notes receivable | 2,569,445,189.92 | 295,598,790.07 | -2,273,846,399.85 |
| Accounts receivable | 16,619,441,281.18 | 16,619,441,281.18 | 0.00 |
| Prepayments | 460,304,219.65 | 460,304,219.65 | 0.00 |
| Premiums receivable | |||
| Amounts receivable under reinsurance contracts | |||
| Reinsurer's share of insurance contract reserves | |||
| Other receivables | 586,748,265.21 | 586,748,265.21 | 0.00 |
| Including: Interests receivable |
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Dividends receivable | |||
| Financial assets purchased under resale agreements | |||
| Inventories | 5,725,104,153.41 | 5,725,104,153.41 | 0.00 |
| Contract assets | Not applicable | ||
| Held-for-sale assets | |||
| Non-current assets due within one year | 380,795,020.47 | 380,795,020.47 | 0.00 |
| Other current assets | 730,682,813.14 | 2,978,040,396.42 | 2,247,357,583.28 |
| Total Current Assets | 53,626,783,704.80 | 53,600,294,888.23 | -26,488,816.57 |
| Non-current Assets: | |||
| Loans and advances to customers | |||
| Debt investments | Not applicable | ||
| Available-for-sale financial assets | 290,966,813.00 | Not applicable | -290,966,813.00 |
| Other debt investments | Not applicable | ||
| Held-to-maturity investments | Not applicable | ||
| Long-term receivables | 705,512,368.17 | 705,512,368.17 | 0.00 |
| Long-term equity investments | 163,301,844.56 | 163,301,844.56 | 0.00 |
| Other equity investments | Not applicable | ||
| Other non-current financial assets | Not applicable | 290,966,813.00 | 290,966,813.00 |
| Investment properties | |||
| Fixed assets | 5,082,415,160.10 | 5,082,415,160.10 | 0.00 |
| Construction in progress | 416,092,413.42 | 416,092,413.42 | 0.00 |
| Productive biological assets |
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Oil and gas assets | |||
| Right-to-use assets | Not applicable | ||
| Intangible assets | 869,913,050.09 | 869,913,050.09 | 0.00 |
| Development expenditures | |||
| Goodwill | 212,269,337.23 | 212,269,337.23 | 0.00 |
| Long-term prepaid expenses | |||
| Deferred tax assets | 534,346,941.25 | 534,346,941.25 | 0.00 |
| Other non-current assets | 1,582,750,600.80 | 1,582,750,600.8 | 0.00 |
| Total Non-current Assets | 9,857,568,528.62 | 9,857,568,528.62 | 0.00 |
| Total Assets | 63,484,352,233.42 | 63,457,863,416.85 | -26,488,816.57 |
| Current Liabilities: | |||
| Short-term borrowings | 3,465,655,688.29 | 3,465,655,688.29 | 0.00 |
| Loans from the central bank | |||
| Capitals taking from banks and other financial institutions | |||
| Held-for-trading financial liabilities | Not applicable | 290,998.43 | 290,998.43 |
| Financial liabilities at fair value through current profit and loss | 290,998.43 | Not applicable | -290,998.43 |
| Derivative financial liabilities | |||
| Notes payable & Accounts payable | 10,765,145,485.74 | 10,765,145,485.74 | 0.00 |
| Receipts in advance | 641,430,490.22 | 641,430,490.22 | 0.00 |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and deposits from banks and other financial institutions |
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Funds from securities trading agency | |||
| Funds from underwriting securities agency | |||
| Payroll payable | 1,921,608,104.04 | 1,921,608,104.04 | 0.00 |
| Taxes payable | 1,418,921,664.57 | 1,418,921,664.57 | 0.00 |
| Other payables | 2,953,203,190.99 | 2,953,203,190.99 | 0.00 |
| Including: Interests payable | |||
| Dividends payable | 119,917,640.92 | 119,917,640.92 | 0.00 |
| Fees and commissions payable | |||
| Amounts payable under reinsurance contracts | |||
| Contract liabilities | Not applicable | ||
| Held-for-sale liabilities | |||
| Non-current liabilities due within one year | 3,178,171,147.16 | 3,178,171,147.16 | 0.00 |
| Other current liabilities | 364,984,759.94 | 364,984,759.94 | 0.00 |
| Total Current Liabilities | 24,709,411,529.38 | 24,709,411,529.38 | 0.00 |
| Non-current Liabilities: | |||
| Insurance contract reserves | |||
| Long-term borrowings | 440,000,000.00 | 440,000,000.00 | 0.00 |
| Bonds payable | |||
| Including: Preferred share | |||
| Perpetual bond | |||
| Leasing liabilities | Not applicable | ||
| Long-term payables |
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Provisions | 77,625,238.49 | 77,625,238.49 | 0.00 |
| Deferred income | 293,179,089.13 | 293,179,089.13 | 0.00 |
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 810,804,327.62 | 810,804,327.62 | 0.00 |
| Total liabilities | 25,520,215,857.00 | 25,520,215,857.00 | 0.00 |
| Owners’ Equities | |||
| Share capital | 9,227,270,473.00 | 9,227,270,473.00 | 0.00 |
| Other equity instruments | |||
| Including: Preferred share | |||
| Perpetual debt | |||
| Capital reserves | 1,956,139,660.52 | 1,956,139,660.52 | 0.00 |
| Less: Treasury stock | 364,984,759.94 | 364,984,759.94 | 0.00 |
| Other comprehensive income | -49,576,351.10 | -76,065,167.67 | -26,488,816.57 |
| Surplus reserves | 4,460,712,358.45 | 4,460,712,358.45 | 0.00 |
| General risk reserve | |||
| Retained earnings | 22,360,593,257.53 | 22,360,593,257.53 | 0.00 |
| Total owners' equity attributable to owner of the Company | 37,590,154,638.46 | 37,563,665,821.89 | -26,488,816.57 |
| Minority interests | 373,981,737.96 | 373,981,737.96 | 0.00 |
| Total owners' equity | 37,964,136,376.42 | 37,937,647,559.85 | -26,488,816.57 |
| Total liabilities and owners' equity | 63,484,352,233.42 | 63,457,863,416.85 | -26,488,816.57 |
Balance Sheet of the Parent Company
Unit: RMB
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Current Assets: | |||
| Cash and bank balances | 19,192,461,228.22 | 19,192,461,228.22 | 0.00 |
| Held-for-trading financial assets | Not applicable | ||
| Financial assets at fair value through current profit and loss | Not applicable | ||
| Derivative financial assets | |||
| Notes receivable & Accounts receivable | 15,556,312,793.95 | 15,325,923,955.48 | -230,388,838.47 |
| Including: Notes receivable | 351,793,632.24 | 121,404,793.77 | -230,388,838,47 |
| Accounts receivable | 15,204,519,161.71 | 15,204,519,161.71 | 0.00 |
| Prepayments | 132,344,929.55 | 132,344,929.55 | 0.00 |
| Other receivables | 522,987,955.34 | 522,987,955.34 | 0.00 |
| Including: Interests receivable | |||
| Dividends receivable | 2,550,000.00 | 2,550,000.00 | 0.00 |
| Inventories | 168,885,723.93 | 168,885,723.93 | 0.00 |
| Contract assets | Not applicable | ||
| Held-for-sale assets | |||
| Non-current assets due within one year | |||
| Other current assets | 93,661,315.14 | 321,871,615.09 | 228,210,299.95 |
| Total Current Assets | 35,666,653,946.13 | 35,664,475,407.61 | -2,178,538.52 |
| Non-current Assets: | |||
| Debt investments | Not applicable |
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Available-for-sale financial assets | 290,956,813.00 | Not applicable | -290,956,813.00 |
| Other debt investments | Not applicable | ||
| Held-to-maturity investments | Not applicable | ||
| Long-term receivables | |||
| Long-term equity investments | 4,361,147,395.90 | 4,361,147,395.90 | 0.00 |
| Other equity investments | Not applicable | ||
| Other non-current financial assets | Not applicable | 290,956,813.00 | 290,956,813.00 |
| Investment properties | |||
| Fixed assets | 2,844,176,300.34 | 2,844,176,300.34 | 0.00 |
| Construction in progress | 65,156,482.70 | 65,156,482.70 | 0.00 |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-to-use assets | Not applicable | ||
| Intangible assets | 197,147,608.73 | 197,147,608.73 | 0.00 |
| Development expenditure | |||
| Goodwill | |||
| Long-term prepaid expenses | |||
| Deferred tax assets | 221,779,547.02 | 221,779,547.02 | 0.00 |
| Other non-current assets | 14,601,579.55 | 14,601,579.55 | 0.00 |
| Total Non-Current Assets | 7,994,965,727.24 | 7,994,965,727.24 | 0.00 |
| Total Assets | 43,661,619,673.37 | 43,659,441,134.85 | -2,178,538.52 |
| Current Liabilities: |
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Short-term borrowings | |||
| Held-for-trading financial liabilities | Not applicable | ||
| Financial liabilities at fair value through current profit and loss | Not applicable | ||
| Derivative financial liabilities | |||
| Notes payable & Accounts payable | 356,787,605.91 | 356,787,605.91 | 0.00 |
| Receipts in advance | 204,337,524.21 | 204,337,524.21 | 0.00 |
| Contract liabilities | Not applicable | ||
| Payroll payables | 1,272,626,004.95 | 1,272,626,004.95 | 0.00 |
| Taxes payables | 987,057,652.70 | 987,057,652.70 | 0.00 |
| Other payables | 2,529,600,057.31 | 2,529,600,057.31 | 0.00 |
| Including: Interests payable | |||
| Dividends payable | 117,467,640.92 | 117,467,640.92 | 0.00 |
| Held-for-sale liabilities | |||
| Non-current liabilities due within one year | 3,172,727,888.37 | 3,172,727,888.37 | 0.00 |
| Other current liabilities | 364,984,759.94 | 364,984,759.94 | 0.00 |
| Total Current Liabilities | 8,888,121,493.39 | 8,888,121,493.39 | 0.00 |
| Non-Current Liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preferred share | |||
| Perpetual bond | |||
| Leasing liabilities | Not applicable |
| Item | December 31st 2018 | January 1st 2019 | Adjusted amount |
| Long-term payables | |||
| Provisions | 52,956,535.09 | 52,956,535.09 | 0.00 |
| Deferred income | 186,747,708.01 | 186,747,708.01 | 0.00 |
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 239,704,243.10 | 239,704,243.10 | 0.00 |
| Total liabilities | 9,127,825,736.49 | 9,127,825,736.49 | 0.00 |
| Owners' equity | |||
| Share capital | 9,227,270,473.00 | 9,227,270,473.00 | 0.00 |
| Other equity instruments | |||
| Including: Preferred share | |||
| Perpetual bond | |||
| Capital reserves | 1,883,262,407.46 | 1,883,262,407.46 | 0.00 |
| Less: Treasury share | 364,984,759.94 | 364,984,759.94 | 0.00 |
| Other comprehensive income | -2,178,538.52 | -2,178,538.52 | |
| Surplus reserves | 4,460,712,358.45 | 4,460,712,358.45 | 0.00 |
| Retained earnings | 19,327,533,457.91 | 19,327,533,457.91 | 0.00 |
| Total owners' equity | 34,533,793,936.88 | 34,531,615,398.36 | -2,178,538.52 |
| Total liabilities and owners' equity | 43,661,619,673.37 | 43,659,441,134.85 | -2,178,538.52 |
The adjustments are explained as below:
2. Note on retrospective adjustments of the previous comparison data due to the first implementation of the new financial instrument
guidelines, and the new lease criteria.
√ Applicable □Not applicableThe new financial instrument standard has changed the classification and measurement of financial assets, and has identified three major measurement categories:
amortized cost; measured at fair value and its changes are included in other comprehensive income; measured at fair value through current profit and loss. Enterprisesneed to consider the business model of their own, as well as the contractual cash flow characteristics of financial assets to carry out the above classification. Theequity instrument investment is measured at fair value through current profit or loss, but at the time of initial recognition, the non-tradable equity instrumentinvestment can be irrevocably designated as financial asset measured at fair value and whose changes are included in other comprehensive income.
According to the requirements of the new financial instrument standard, financial assets impairment measurement is changed from the “loss incurred model” to the“expected credit loss model”, which is applicable to financial assets measured at amortized cost, financial assets measured at fair value and whose changes areincluded in other comprehensive income, as well as loan commitments and financial guarantee contracts.
The Company endorses or discounts some bank acceptance bills in daily fund management. The business model for managing the above-mentioned notes receivableis aimed at both collecting contractual cash flow and for sales. Therefore, the notes receivable are reclassified as financial assets measured at fair value and whosechanges are included in other comprehensive income by the Group and are presented under other current assets since January 1
st
2019.
Summary of the impacts of the first implementation of the new financial instruments guidelines on January 1
st
2019
Consolidated Balance Sheet
| Book value according to the original financial instrument guidelines December 31st 2018 | Re-classified | Re-measured | Book value according to the new financial instrument guidelines January 1st 2019 | |
| Held-for-trading financial assets | 0.00 | 1,860,050.59 | 1,860,050.59 |
| Book value according to the original financial instrument guidelines December 31st 2018 | Re-classified | Re-measured | Book value according to the new financial instrument guidelines January 1st 2019 | |
| Financial assets at fair value through current profit and loss | 1,860,050.59 | -1,860,050.59 | 0.00 | |
| Notes Receivable and Accounts Receivable | 19,188,886,471.10 | -2,273,846,399.85 | 16,915,040,071.25 | |
| Other current assets | 730,682,813.14 | 2,273,846,399.85 | -26,488,816.57 | 2,978,040,396.42 |
| Other comprehensive income | -49,576,351.10 | -26,488,816.57 | -76,065,167.67 | |
| Available-for-sale financial assets | 290,966,813.00 | -290,966,813.00 | 0.00 | |
| Other non-current financial assets | 0.00 | 290,966,813.00 | 290,966,813.00 | |
| Held-for-trading financial liabilities | 0.00 | 290,998.43 | 290,998.43 | |
| Financial liabilities at fair value through current profit and loss | 290,998.43 | -290,998.43 | 0.00 |
Balance Sheet of the Parent Company
| Book value according to the original financial instrument guidelines December 31st 2018 | Re-classified | Re-measured | Book value according to the new financial instrument guidelines January 1st 2019 | |
| Notes Receivable and Accounts Receivable | 15,556,312,793.95 | -230,388,838.47 | 15,325,923,955.48 | |
| Other current assets | 93,661,315.14 | 230,388,838.47 | -2,178,538.52 | 321,871,615.09 |
| Other comprehensive income | 0.00 | -2,178,538.52 | -2,178,538.52 | |
| Available-for-sale financial assets | 290,956,813.00 | -290,956,813.00 | 0.00 | |
| Other non-current financial assets | 0.00 | 290,956,813.00 | 290,956,813.00 |
4.3 Audit Report
Whether audit has been performed on this 2019 1
st
Quarter Report□ Yes √ NoThe Company’s 2019 1
st
Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.Chairman: Chen ZongnianApril 20
th
2019
Note: This document is a translated version of the Chinese version 2019 Q1 Financial Report(“2019年第一季度报告全文”), and the published Q1 report in the Chinese version shall prevail.The complete published Chinese 2019 Q1 Financial Report may be obtained at
http://www.cninfo.com.cn.