海康威视: 2025年半年度报告（英文版）

来源：证券之星

2025-08-02 00:26:10

Hangzhou Hikvision Digital Technology Co., Ltd.
January to June 2025
August 2, 2025
Hikvision 2025 Half Year Report
Section I Important Notes, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and senior management of
Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as the "Company") hereby
guarantee that the information presented in this report shall be together be wholly liable for the
truthfulness, accuracy and completeness of its contents and free of any false records, misleading
statements or material omissions, and will undertake individual and joint legal liabilities.
Hu Yangzhong, the Company's legal representative, Jin Yan, the person in charge of the
accounting work, and Zhan Junhua, the person in charge of accounting department (accounting
supervisor) hereby declare and warrant that the financial statements in this half year report are
authentic, accurate and complete.
All directors of the Company have attended the board meeting to review this report.
The half year proposal of profit distribution or share distribution from capital reserve passed upon
deliberation at the meeting of the Board of Directors (not applicable): The Company will not
distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve during the
current reporting period.
Note:
This document is a translated version of the Chinese version 2025 Half Year Report (2025 年半年度
报告), and the published announcements in the Chinese version shall prevail. The complete published
Chinese 2025 Half Year Report may be obtained at www.cninfo.com.cn.
Hikvision 2025 Half Year Report
Please read the half year report and pay particular attention to the following risk factors:
(1) Risks of domestic economic transformation: Continuous adjustments in fiscal spending and real estate
investment markets, the expectation for healthy economic development across society still needs to be
strengthened, and trade protectionist policies implemented by some overseas countries pose challenges to
domestic enterprises’ export capabilities. The economy is still in the process of transformation and upgrading.
The Company empowers economic and social digital transformation with AIoT technologies and products,
promoting new productivity development. However, transformation and upgrading cannot be achieved
overnight, and structural pressures in the economy and society will persist over the long term. Fluctuations
during this process will continue to impact the Company’s business operations.
(2) Global economic downside risks: Individual countries intensifying trade protection policies, some major
economies experiencing slower growth, uneven development across regions, and continuous fluctuations in
the macroeconomic environment. The Company diversifies its operational risks across a wide range of business
operations and conducts business according to the specific conditions of each country and region. However, if
a global economic recession occurs, the Company’s business will also be affected to some extent.
(3) Geopolitical risks: The global political system is evolving toward a multipolar structure, with continuously
declining stability and predictability, and ongoing intractable local conflicts. In recent years, the Company has
continuously strengthened risk control, enhanced response capabilities, and adjusted resource allocation based
on the business environment. However, if the geopolitical environment suddenly deteriorates, the Company’s
operations in certain countries and regions may still be adversely affected.
(4) Technology upgrading risks: With the rapid development of AI, big data, IoT, cloud computing and other
technologies, technological applications are iterating quickly. The Company has some strength in technology
fields such as IoT perception, AI, and big data, and maintains technological iteration through extensive
commercial practices. However, if it fails to closely track updates in cutting-edge technologies or sustain
innovation and expansion of its technical system, the uncertainty of the Company's future development will
increase.
(5) Risks of internal management: The Company's continual business expansion and development of new
products and business services add complexity to internal management, posing new challenges to our
management capabilities. The Company accumulates management experience through the development of
Hikvision 2025 Half Year Report
systems and procedures with a focus on talent cultivation and construction. However, the Company's operations
will be adversely affected if our management capabilities cannot keep up with the business expansion.
(6) Financial risks caused by customers' reduced ability to pay: The flow of funds in commercial transactions
is affected by the economic environment. The Company’s financial operations are closely tied to the
performance of partners upstream and downstream in the value chain. The Company has accumulated a certain
level of cash reserves through diligent and prudent operations, and has relatively low financing costs. However,
if overall market liquidity risk increases, the Company’s cash collection may still slow down, adversely
affecting its operations.
(7) Legal and compliance risks: The world's multilateral trading system is greatly impacted by politics, and
business activities are required to comply with the complex laws and regulations of various regions. The
Company has constantly strengthened the legal compliance system since countries around the world have
stricter requirements for data supervision and legal compliance capabilities. The Company has established a
set of effective legal and compliance management systems that have been tested through multiple domestic
and international business practices. However, if the Company’s legal and compliance capabilities fail to adapt
to evolving circumstances in a timely manner, it may still have an adverse impact on its operations.
(8) Supply chain risks: Some countries have increasingly used supply chains as a key tool for international
competition, and the global supply system has been continuously impacted by geopolitical tensions in recent
years. The Company strives to develop a diversified supply network and maintain reasonable inventory levels,
but a widespread disruption in the supply chain could still affect the stability of its business operations.
(9) Risks of cybersecurity: The Company has always emphasized cybersecurity and taken active measures to
enhance the security of our products and systems. However, computer viruses, malicious software, hacker
attacks and other security incidents that deliberately attempt to damage the Company's systems or products
may take place, causing potential cybersecurity issues.
(10) Risks of exchange rate fluctuations: The Company operates in multiple countries and regions, where
transactions are mainly settled in non-RMB currencies. Although the Company uses appropriate financial
instruments to hedge risks, exchange rate fluctuations will affect our financial performance due to the foreign
currency exposure arising from sales, procurement, and financing.
Hikvision 2025 Half Year Report
(11) Risks of intellectual property (IP) rights: The Company has maintained considerable investment in R&D,
and made significant technological achievements. We have also implemented robust IP protection measures.
However, the risk of IP disputes and infringement still exists.
The above-mentioned alerts do not include all the potential risks for the Company. Investors are advised to invest
with caution.
Hikvision 2025 Half Year Report
CONTENTS
Hikvision 2025 Half Year Report
Definitions
Term Definition
Reporting Period From January 1, 2025 to June 30, 2025
Articles of Association Articles of Associations for Hangzhou Hikvision Digital Technology Co., Ltd
Hikvision, our Company, the
Hangzhou Hikvision Digital Technology Co., Ltd
Company, the Group, our Group
CETC China Electronics Technology Group Corporation, the actual controller of the Company
CETHIK China Electronics Technology HIK Group Co., Ltd., the controlling shareholder of the Company
Hangzhou EZVIZ Network Co., Ltd.(According to the context, also refers to the corresponding
EZVIZ, EZVIZ Network
business)
Hangzhou Hikrobot Co., Ltd. (According to the context, also refers to the corresponding
HikRobot
business)
Shijiazhuang Sensor-Tech Intelligence Technology Co., Ltd. (According to the context, also
WHST, HikAuto
refers to the corresponding business)
HikMicro, Micro Sensing, Hangzhou Hikmicro Sensing Technology Co., Ltd. (According to the context, also refers to the
Thermal Imaging corresponding business)
Wuhan Hikstorage Technology Co., Ltd. (According to the context, also refers to the
HikSemi
corresponding business)
Hangzhou Hikimaging Technology Co., Ltd. (According to the context, also refers to the
HikImaging
corresponding business)
Hangzhou Hikfire Technology Co., Ltd. (According to the context, also refers to the
HikFire
corresponding business)
HikRayin, Hik Security Check (According to the context, also refers to the corresponding business)
A long investment cycle, business prospects uncertain, has the high risk and uncertainty, in need
for direct or indirect investment in exploration, in order for the Company to timely enter into new
areas of business. Initially disclosed in Announcement about Management Measures for Core
Innovative Business
Staff Investment in Innovative Business (www.cninfo.com.cn).
In this report, innovative business also refers to EZVIZ, HikRobot, HikAuto, HikMicro,
HikSemi, HikImaging, HikFire, HikRayin and their related products.
Hikvision 2025 Half Year Report
Section II Corporate Profile & Key Financial Data
I. Corporate information
Stock abbreviation HIKVISION Stock code 002415
Stock exchange where the shares of the Company
Shenzhen Stock Exchange
are listed
Name of the Company in Chinese 杭州海康威视数字技术股份有限公司
Abbr. of the Company name in Chinese 海康威视
Name of the Company in English HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD
Abbr. of the Company name in English HIKVISION
Legal representative Hu Yangzhong
II. Contacts and contact information
Board Secretary Securities Affairs Representative
Name Feng Wei Cai Chao
No. 518 WuLianWang Street, Binjiang No. 518 WuLianWang Street, Binjiang
Address
District, Hangzhou District, Hangzhou
Tel. 0571-88075998; 0571-89710492 0571-88075998; 0571-89710492
Fax 0571-89986895 0571-89986895
E-mail hikvision@hikvision.com hikvision@hikvision.com
III. Other relevant information
Whether there is any change in the Company's registered address, office address, zip code, company website or
company email address during the reporting period.
□Applicable √ Inapplicable
There is no change in the Company's registered address, office address, zip code, company website or company
email address during the reporting period. Please refer to 2024 Annual Report for details.
Whether there is alteration in information disclosure and place of the report during the current reporting period.
□ Applicable √ Inapplicable
Hikvision 2025 Half Year Report
The media website and the securities exchange website for the disclosure of the Company Half Year report, and
the place where the Half Year Report is available for inspection remained unchanged during the reporting period.
For details, please refer to the 2024 Annual Report.
Whether other relevant information has changed during the current reporting period
□ Applicable √ Inapplicable
IV. Key accounting data and financial indicators
Whether the Company performed a retrospective adjustment or restatement of previous accounting data
□ Yes√ No
First half of 2025 First half of 2024 YoY Change (%)
Revenue (RMB) 41,818,040,088.44 41,209,096,206.36 1.48%
Net profit attributable to shareholders
of the Company (RMB)
Net profit attributable to shareholders
of the Company excluding non- 5,489,000,328.37 5,243,005,903.72 4.69%
recurring gains and losses (RMB)
Net cash flows from operating
activities (RMB)
Basic earnings per share (RMB/share) 0.615 0.539 14.10%
Diluted earnings per share
(RMB/share)
Weighted average ROE 6.85% 6.51% 0.34%
Change(%) between
On June 30, 2025 On December 31, 2024 December 31, 2024 and
June 30, 2025
Total assets (RMB) 124,414,765,281.12 132,016,200,156.14 -5.76%
Net assets attributable to shareholders
of the Company (RMB)
The total share capital of the Company as of the previous trading day of the report disclosure:
The total share capital of the Company as of the previous trading day of the report disclosure (share) 9,233,198,326
Fully diluted earnings per share calculated with the latest share capital:
Fully diluted earnings per share (RMB/share) calculated with the latest share capital 0.613
Hikvision 2025 Half Year Report
V. Differences in accounting data between domestic and overseas accounting standards
Financial Reporting Standards and China Accounting Standards
□ Applicable √ Inapplicable
There is no difference in the financial report of net profits and net assets according to the disclosure of International
Financial Reporting Standards (IFRS) and China Accounting Standards in the reporting period.
Accounting Standards and China Accounting Standards
□ Applicable √ Inapplicable
There is no difference in the financial report of net profits and net assets according to the disclosure of Overseas
Accounting Standards and China Accounting Standards in the reporting period.
□ Applicable √ Inapplicable
VI. Items and amounts of non-recurring gains and losses
√ Applicable □ Inapplicable
Unit：RMB
Item Amount
Profit or loss from disposal of non-current assets (including the write-off for the impairment
provision of assets)
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 267,638,685.22
on standard quota or quantitative continuous application according to the state industrial policy)
Apart from the effective hedging activities related to the Company's normal business operations, the
fair value changes in financial assets and financial liabilities held by non-financial enterprises, as (84,646,697.58)
well as the gains or losses from the disposal of these financial assets and liabilities.
Investment income generated from the disposal of long-term equity investments 224,079.88
Other non-operating income and expenditures except the items mentioned above 29,239,300.73
Less: Impact of income tax 17,869,448.69
Impact of the minority interests (after tax) 33,585,581.41
Total 168,349,470.31
The specific situation of other profit and loss items that meet the definition of non-recurring gains and losses：
□ Applicable √ Inapplicable
Hikvision 2025 Half Year Report
The company does not have any specific situations of profit and loss items that meet the definition of non-
recurring gains and losses.
Explanation of the situation where the non-recurring gains and losses items listed in the 'Interpretative
Announcement No. 1 on Information Disclosure of Companies Issuing Securities Publicly — Non-recurring Gains
and Losses' are defined as recurring gains and losses items.
□ Applicable √ Inapplicable
The Company does not have any instances where the non-recurring gains and losses items listed in the 'Interpretative
Announcement No. 1 on Information Disclosure of Companies Issuing Securities Publicly — Non-recurring Gains
and Losses' are classified as recurring gains and losses items.
Hikvision 2025 Half Year Report
Section III Management Discussion and Analysis
I. The principal business of the Company during the reporting period
There was no significant change for the principal business of the Company during the current reporting period.
Please refer to 2024 Annual Report for details.
II. Core competitiveness analysis
There was no significant change in the Company's core competitiveness during the current reporting period. For
details, please refer to 2024 Annual Report.
III. Core business analysis
Whether consistent with the Company's core business disclosure during the current reporting period
√Yes □ No
In the first half of 2025, global economic recovery remained uneven, with overseas trade disputes intertwined
with geopolitical risks, and external uncertainties remaining prominent. Domestically, while multiple policies aimed
at stabilizing the economy were implemented, the economy demonstrated a certain resilience, albeit with low
visibility. The process of digital transformation and upgrading for enterprises and society is moving forward amidst
fluctuations. In the face of a complex and changing domestic and international environment, Hikvision persisted in
adopting a steady and cautious approach to address various uncertainties, focused on profitability as the core of
operations, emphasized performance improvement, continuously promoted organizational transformation and
meticulous management, and strived to achieve high-quality and sustainable growth.
During the reporting period, the Company achieved revenue of RMB41.82 billion, with year over year growth
of 1.48%; the net profits attributable to shareholders of the Company was RMB5.66 billion, an increase of 11.71%
over the same period of the previous year.
(1) Strengthen the technological foundation and enhance innovation-driven growth
Hikvision has always adhered to technical innovation as its core driving force, maintaining R&D investment
intensity and continuously enhancing sustainable development capabilities. The Company continues to develop
Hikvision 2025 Half Year Report
multi-dimensional sensing, artificial intelligence, and big data technologies; promotes the innovative development
of digital products and the effective implementation of large model applications, consistently launching new
products diverse in functionality and form to adapt to emerging scenarios and demands, comprehensively elevating
product intelligence levels, and continuously expanding the boundaries of the Company’s AIoT business.
(2) Optimize operational systems and enhance business efficiency
During the reporting period, the Company continuously implemented location-specific adjustments to its
business structure, deepened process transformation, optimized organizational collaboration mechanisms, and
ensured efficient business operations. The Company strengthened cost control, enhanced the correlation between
expenditures and business performance, and effectively improved operational efficiency. Committed to effective
growth, the Company maintained rigorous quality oversight over business operations, continuously strengthened
management of operational assets, refined risk control mechanisms, and consolidated the institutional foundation
for regulatory compliance, providing robust safeguards for sustainable development.
(3) Cultivate main businesses and enhance core capabilities
During the reporting period, the Company proactively seized development opportunities brought by
breakthroughs in large AI model technology, driving the sustained release of business potential. The Company
continued to expand scenario-based digitalization business, creating new growth opportunities for domestic main
businesses. Meanwhile, adhering to its global development strategy, the Company further increased investment in
overseas marketing to boost its international revenue share. Leveraging profound expertise in the AIoT industry,
Hikvision persistently extended the boundaries of sensing capabilities, implemented multimodal large model
technologies, established application closed loops through big data and software capabilities, and advanced digital
transformation across society.
(4) Expand diversified structure and inject development momentum
During the reporting period, the overall revenue of innovative businesses reached RMB11.77 billion,
representing a year-on-year increase of 13.92%, and accounting for 28.14% of the Company’s total revenue. The
proportion of innovative businesses continues to rise, with major businesses such as HikRobot, EZVIZ, HikAuto,
Hikvision 2025 Half Year Report
and HikMicro having already achieved leading positions in their respective fields, becoming a strong guarantee for
the Company’s business growth. The Company’s main business and innovative businesses advance synergistically,
jointly forming an AIoT ecosystem network. The business structure is well-coordinated and clearly divided,
providing solid support for the Company’s long-term sustainable development.
YoY changes in key financial data
Unit: RMB
First half of 2024
First half of 2025 YoY (%) Note of Change
(restated)
Total revenue 41,818,040,088.44 41,209,096,206.36 1.48% No significant change
Total operating costs 22,919,499,439.04 22,732,341,841.73 0.82% No significant change
Selling expenses 5,708,759,811.30 5,473,891,751.46 4.29% No significant change
Administrative expenses 1,386,257,017.69 1,464,347,813.80 -5.33% No significant change
Increase in foreign currency exchange gains
Financial expenses -739,368,414.40 -250,188,701.72 -195.52%
due to fluctuation in foreign exchange rate
Income Tax Expenses 759,413,973.74 660,855,881.81 14.91% No significant change
R&D investments 5,669,772,011.51 5,698,043,754.07 -0.50% No significant change
Net cash flows from Increase in sales collections during the
Operating Activities reporting period
Net cash flows from
-1,878,812,149.09 -1,903,226,404.50 1.28% No significant change
Investment Activities
Decrease in expenditures such as repayment
Net cash flows from
-8,550,575,930.17 -13,360,325,362.71 36.00% of loans and cash dividends during the
Financing Activities
reporting period
Net decrease in cash and Increase in cash inflows from operating
-5,054,494,535.50 -15,473,769,254.35 67.34%
cash equivalents activities during the reporting period
Revenue structure
Unit：RMB
First half of 2025 First half of 2024
YoY Change
Proportion to total Proportion to total
Amount Amount (%)
revenue revenue
Total revenue 41,818,040,088.44 100.00% 41,209,096,206.36 100.00% 1.48%
Classified by industry
AIoT products and services 41,818,040,088.44 100.00% 41,209,096,206.36 100.00% 1.48%
Hikvision 2025 Half Year Report
First half of 2025 First half of 2024
YoY Change
Proportion to total Proportion to total
Amount Amount (%)
revenue revenue
Classified by product/business
Products and services for
main business1
Constructions for main
business
Subtotal 30,052,110,945.83 71.86% 30,880,915,682.61 74.94% -2.68%
Robotic business 3,138,354,805.04 7.50% 2,744,389,603.14 6.66% 14.36%
Smart home business 2,752,441,041.15 6.58% 2,448,684,604.42 5.94% 12.40%
Auto electronics business 2,352,287,642.16 5.63% 1,605,885,368.24 3.90% 46.48%
Thermal imaging business 2,008,057,842.03 4.80% 1,829,997,676.77 4.44% 9.73%
Storage business 1,033,275,636.44 2.47% 1,311,887,493.34 3.18% -21.24%
Other innovative businesses2 481,512,175.79 1.15% 387,335,777.84 0.94% 24.31%
Subtotal 11,765,929,142.61 28.14% 10,328,180,523.75 25.06% 13.92%
Classified by region
Domestic 26,393,423,147.63 63.11% 27,029,231,758.69 65.59% -2.35%
Overseas 15,424,616,940.81 36.89% 14,179,864,447.67 34.41% 8.78%
Revenue structure3
Unit: RMB 100mn
YoY Change
First half of 2025 First half of 2024
(%)
PBG 55.73 56.93 -2.11%
Domestic main EBG 74.62 74.89 -0.36%
business SMBG 40.67 57.89 -29.75%
Other products and services for main business 7.19 4.69 53.30%
Overseas main
Products and services for main business 122.31 114.41 6.90%
business
Innovative businesses4 117.66 103.28 13.92%
Total5 418.18 412.09 1.48%
HikImaging. Same below.
services, excluding revenue from innovative businesses.
Hikvision 2025 Half Year Report
Industries, products, or regions accounting for more than 10% of the Company's revenue or operating profit
√ Applicable □ Inapplicable
Unit: RMB
YoY Change YoY Change
Gross YoY Change (%)
Revenue Operating costs (%) of (%) of gross
margin of operating costs
revenue margin
Classified by industry
AIoT products and
services
Classified by product/business
Products and services
for main business
Constructions for
main business
Innovative businesses 11,765,929,142.61 7,262,461,672.59 38.28% 13.92% 21.19% -3.70%
Subtotal 41,818,040,088.44 22,919,499,439.04 45.19% 1.48% 0.82% 0.35%
Classified by region
Domestic 26,393,423,147.63 14,784,367,186.17 43.98% -2.35% -3.45% 0.63%
Overseas 15,424,616,940.81 8,135,132,252.87 47.26% 8.78% 9.63% -0.41%
When the statistical caliber of the Company's major business data is adjusted during the reporting period, the
Company's major business data would be adjusted according to the end of the reporting period in the most recent
period.
□Applicable √ Inapplicable
Total operating costs structure
Classified by industry
Unit: RMB
First half of 2025 First half of 2024 (restated)
Proportion to Proportion to YoY
Industry Item
Amount operating Amount operating Change (%)
costs costs
AIoT products and
Operating costs 22,919,499,439.04 100.00% 22,732,341,841.73 100.00% 0.82%
services
Classified by product/business
Hikvision 2025 Half Year Report
Unit: RMB
First half of 2025 First half of 2024 (restated)
Proportion to Proportion to YoY
Product/business Item
Amount operating Amount operating Change (%)
costs costs
Products and Services
Operating costs 15,069,807,832.83 65.75% 16,225,702,750.78 71.38% -7.12%
for main business
Constructions for main
Operating costs 587,229,933.62 2.56% 514,054,139.49 2.26% 14.24%
business
Innovative businesses Operating costs 7,262,461,672.59 31.69% 5,992,584,951.46 26.36% 21.19%
Subtotal Operating costs 22,919,499,439.04 100.00% 22,732,341,841.73 100.00% 0.82%
IV. Non-core business analysis
□Applicable √ Inapplicable
V. Analysis of assets and liabilities
Unit：RMB
June 30, 2025 December 31, 2024 Change between
Percentage Percentage December 31,
Note of significant change
Amount to total Amount to total 2024 and June
assets assets 30, 2025
Cash dividend distributions
Cash and bank
balances
bank balances
Accounts
receivable
Contract assets 916,055,435.78 0.74% 985,822,785.69 0.75% -0.01% No significant change
Inventories 19,124,924,891.72 15.37% 19,110,711,958.11 14.48% 0.89% No significant change
Long-term
equity 1,491,371,496.71 1.20% 1,527,223,390.79 1.16% 0.04% No significant change
investment
EZVIZ Intelligent
Fixed assets 16,883,791,179.01 13.57% 15,063,752,296.49 11.41% 2.16%
Manufacturing Chongqing Base
Hikvision 2025 Half Year Report
June 30, 2025 December 31, 2024 Change between
Percentage Percentage December 31,
Note of significant change
Amount to total Amount to total 2024 and June
assets assets 30, 2025
Project transferred to fixed
Construction in
process
Right-of-use
assets No significant change
Lease liabilities 316,505,423.75 0.25% 375,432,749.68 0.28% -0.03%
Contract
liabilities
Short-term
borrowings
Non-current
liabilities due 4,058,425,783.08 3.26% 767,030,688.91 0.58% 2.68%
No significant change
within one year
Long-term
borrowings
□ Applicable √ Inapplicable
Hikvision 2025 Half Year Report
√ Applicable □ Inapplicable
Unit: RMB
Provision for
Cumulative Sold
Foreign decline in Purchased
Profit or loss from change fair value amount
Currency value during amount
Item Opening balance in fair value during the changes during Other changes Closing balance
Translation the current during the
current reporting period included in the
Adjustment reporting period
equity period
period
Financial assets
financial assets
Subtotal of financial assets 2,790,424,250.74 10,857,528.86 5,000,000.00 (42,204,946.05) 2,764,076,833.55
Financial Liabilities 1,874,341.64 (53,974,972.19) (9,431.43) 55,839,882.40
Whether there were any material changes on the measurement attributes of major assets of the Company during the reporting period:
□ Yes √ No
Unit: RMB
Item Closing book value Reasons for being restricted
Cash and bank balance 287,528,681.57 Various cash deposits and other restricted funds
Hikvision 2025 Half Year Report
Item Closing book value Reasons for being restricted
Notes receivable 1,328,641,069.96 Endorsed to suppliers, discounted to the bank
Accounts receivable 109,887,827.72 Pledge for long-term borrowings
Contract assets 40,952,482.25 Pledge for long-term borrowings
Fixed assets 44,642,772.24 Fixed assets leased by operating leases
Intangible assets 11,450,846.86 Pledge and collateral for long-term borrowings
Other non-current assets 484,125,599.18 Pledge for long-term borrowings
Total 2,307,229,279.78
VI. Analysis of investments
√Applicable □ Inapplicable
Investment during the first half of 2025 (RMB) Investment during the first half of 2024 (RMB) YoY (%)
□Applicable √ Inapplicable
√ Applicable □ Inapplicable
Hikvision 2025 Half Year Report
Unit: RMB
Cumulative Reasons for not
Fixed
Investment during amount of reaching planned Disclosure
Invest assets Project Project Disclosure Index (if
Project name the current investment by the Source of funds progress and Date (if
method investme industry schedule applicable)
reporting period end of the current expected benefits applicable)
nt or not
reporting period
Announcement on
AIoT
Investment and Construction
Wuhan Science and products October 23,
Purchase YES 4,061,834.28 1,661,710,924.66 Self-fund 87.41% None Progress of Wuhan Science
Technology Park Project and 2021
and Technology Park Project
services
(No. 2021-065)
Announcement on
AIoT Investment and Construction
EZVIZ Intelligent
Self- products Self-fund / August 11, of EZVIZ Intelligent
Manufacturing Chongqing YES 401,540,305.37 1,545,873,682.60 100.00% None
built and raised fund 2021 Manufacturing Chongqing
Base Project
services Base by the holding
subsidiary (No. 2021-052)
Announcement on
AIoT Investment and Construction
HikRobot Intelligent
Self- products January 19, of HikRobot Intelligent
Manufacturing (Tonglu) YES 128,825,615.73 627,625,959.41 Self-fund 58.60% None
built and 2022 Manufacturing (Tonglu)
Base Project
services Base Project by the holding
subsidiary (No. 2022-009)
Announcement on
AIoT Investment and Construction
Infrared Thermal Imaging
Self- products January 19, of Infrared Thermal Imaging
Complete Machine Products YES 98,314,144.45 264,982,679.47 Self-fund 33.94% None
built and 2022 Complete Machine Products
Industrial Base Project
services Industrial Base by the
holding subsidiary (No.
Hikvision 2025 Half Year Report
Cumulative Reasons for not
Fixed
Investment during amount of reaching planned Disclosure
Invest assets Project Project Disclosure Index (if
Project name the current investment by the Source of funds progress and Date (if
method investme industry schedule applicable)
reporting period end of the current expected benefits applicable)
nt or not
reporting period
Announcement on
Investment and Construction
AIoT
HikRobot Product of HikRobot Product
Self- products January 19,
Industrialization Base YES 41,891,879.33 241,644,847.64 Self-fund 23.84% None Industrialization Base
built and 2022
Construction Project Construction Project by the
services
holding subsidiary (No.
Announcement on
AIoT
Investment and Construction
Wuhan Intelligence Industry Self- products September
YES 66,411,815.67 80,266,346.78 Self-fund 6.82% None of Wuhan Intelligence
Park Project (Phase II) built and 23, 2017
Industry Park in Wuhan (No.
services
Total -- -- -- 741,045,594.83 4,422,104,440.56 -- -- -- -- --
Note: In accordance with the Company's Authorization Management System, new fixed asset investments in Wuhan Intelligence Industry Park Project were approved
by the Strategy Committee of the Board of Directors.
□ Applicable √ Inapplicable
There no such case in the reporting period.
Hikvision 2025 Half Year Report
√ Applicable □ Inapplicable
√ Applicable □ Inapplicable
Unit: 0,000 RMB
Gain or loss
on changes Sold amount Proportion of closing
Changes in cumulative Purchased amount
Type of derivatives Initial investment Opening in fair value during the investment amount to the
fair value included in during the reporting Closing amount
investment amount amount during the reporting Company’s net assets at the
equity period
reporting period end of the reporting period
period
Foreign exchange
contract
Total 143,549.68 143,549.68 -8,072.53 - 352,389.30 - 194,472.66 2.48%
In accordance with the provisions of Accounting Standards for Business Enterprises (hereinafter referred to as "ASBE") No. 22 - Recognition and
Accounting policies and specific accounting
Measurement of Financial Instruments, ASBE No. 24 - Hedge Accounting, ASBE No. 37 - Presentation of Financial Instruments and other relevant
principles for hedging business during the
regulations and guides, the Company correspondingly conducted accounting and reporting for foreign exchange derivatives business carried out.
reporting period and explanations on
The Company conducted initial and subsequent measurements on contracts of foreign exchange derivatives by held- for-trading financial assets/
whether there have been significant changes
held-for-trading financial liabilities, and the fair value for held-for-trading financial assets and held-for-trading financial liabilities is determined by
from the previous reporting period
financial institutions based on trading data of open market. There was no significant changes from the previous reporting period.
Explanations on actual gain or loss during
There was a total of RMB41.58 million actual losses during the reporting period.
the reporting period
The Company's purpose was to avoid and prevent risks of foreign exchange rate fluctuations and prohibited any speculative actions, further
Explanations on the effect of hedging
improving the Company's ability to cope with risks of foreign exchange fluctuations, better avoiding and preventing risks of foreign exchange rate
business
fluctuations, and enhancing its financial stability.
Hikvision 2025 Half Year Report
Capital source of derivatives investment The Company's own fund.
Risk analysis and control measures
(including but not limited to, market risk,
For details of the risk analysis and control measures, please refer to the Announcement on Carrying out Foreign Exchange Hedging Business in
liquidity risk, credit risk, operational risk,
legal risk, etc.) of holding derivatives
during the reporting period
Change of market price or fair value of
invested derivatives during the reporting The Company recognized and measured the fair value of derivatives in accordance with the Accounting Standards for Business Enterprises Article
period; specific methods, related 22 - Recognition and Measurement of Financial Instruments. During the reporting period, a total of RMB80.73 million of losses from changes in
assumptions and parameter setting of the fair value of derivatives were recognized, and the fair value is determined according to the exchange rate provided by banks and other pricing service
derivatives’ fair value analysis should be institutions, measured and recognized on a monthly basis.
disclosed
Prosecution (if applicable) None
Announcement date for approvals of
derivatives investment from the Board of April 19, 2025
Directors (if any)
Announcement date for approvals of
derivatives investment from the general Inapplicable
meeting of shareholders (if any)
□ Applicable √ Inapplicable
There is no derivative investments for speculative purposes during the reporting period.
□ Applicable √ Inapplicable
Hikvision 2025 Half Year Report
During the reporting period, there was no use of raised fund.
The details of the use of funds raised by EZVIZ Network, the Company's holding subsidiary, was disclosed on August 2, 2025 in 2025 Half Year Report of Hangzhou
EZVIZ Network Co., Ltd. on the website of Shanghai Stock Exchange ( www.sse.com.cn).
VII. Disposal of significant assets and equity
□ Applicable √ Inapplicable
There is no disposal of significant assets for the Company during the current reporting period.
□ Applicable √ Inapplicable
Hikvision 2025 Half Year Report
VIII. Analysis of major subsidiaries and holding companies
□Applicable √Inapplicable
The Company has no important holding company information that should be disclosed during the current
reporting period.
Information about obtaining and disposal of subsidiaries during the reporting period
√ Applicable □ Inapplicable
Equity acquisition and disposal Impact on overall production
Company name
method during the reporting period results
Zhejiang Haishihuayue Digital Technology Ltd. Voting rights change Business development
Guangzhou Hikvision Digital Technology Ltd. Equity acquisition in cash Business development
Hangzhou Micro Imaging Intelligent Control Technology
Equity acquisition in cash Business development
Ltd.
Hikvision Kyrgyzstan Limited Liability Company Equity acquisition in cash Expand overseas sales channels
IX. Structural entities controlled by the Company
□ Applicable √ Inapplicable
X. Risks of the Company and risk response solutions
During the reporting period, the Company has been striving to identify various risk exposures, and actively adopting
mitigation measures to avoid and reduce risks:
(1) Domestic economic transformation risk: Continuous adjustments in fiscal spending and real estate
investment markets, the expectation for healthy economic development across society still needs to be
strengthened, and trade protectionist policies implemented by some overseas countries pose challenges to
domestic enterprises' export capabilities. The economy remains in the process of structural upgrading.
Hikvision leverages AIoT technologies and products to empower economic and societal digital transformation,
promoting new productivity development. Meanwhile, we flexibly adjust market strategies to address
restrictions imposed by trade protection policies, continuously expand into diversified markets to reduce
dependency on any single market, and actively cope with the long-term challenges brought by economic
structural transformation.
Hikvision 2025 Half Year Report
(2) Global economic downside risks: Individual countries intensifying trade protection policies, some major
economies experiencing slower growth, uneven development across regions, and continuous fluctuations in
the macroeconomic environment. The Company diversifies its operational risks across a wide range of business
operations and conducts business according to the specific conditions of each country and region
(3) Geopolitical risks: The global political system is evolving toward a multipolar structure, with continuously
declining stability and predictability, and ongoing intractable local conflicts. In recent years, the Company has
continuously strengthened risk control, enhanced response capabilities, and adjusted resource allocation based
on the business environment.
(4) Technology upgrading risks: With the rapid development of AI, big data, IoT, cloud computing and other
technologies, technological applications are iterating quickly. The Company has some strength in technology
fields such as IoT perception, AI, and big data, and maintains technological iteration through extensive
commercial practices. We closely track updates in cutting-edge technologies and maintain innovation and
expansion of our technical system.
(5) Risks of internal management: The Company's continual business expansion and development of new
products and business services add complexity to internal management, posing new challenges to our
management capabilities. The Company accumulates management experience through the development of
systems and procedures with a focus on talent cultivation and construction.
(6) Financial risks caused by customers' reduced ability to pay: The flow of funds in commercial transactions
is affected by the economic environment. The Company’s financial operations are closely tied to the
performance of partners upstream and downstream in the value chain. The Company has accumulated a certain
level of cash reserves through diligent and prudent operations, and has relatively low financing costs.
Meanwhile, it continuously optimizes funds management and improves capital utilization efficiency to ensure
the stability of its cash flow chain.
(7) Legal and compliance risks: The world's multilateral trading system is greatly impacted by politics, and
business activities are required to comply with the complex laws and regulations of various regions. The
Company has constantly strengthened the legal compliance system since countries around the world have
stricter requirements for data supervision and legal compliance capabilities. Hikvision continuously enhances
its legal compliance management system, strengthens global governance capabilities, closely monitors changes
Hikvision 2025 Half Year Report
in laws and regulations in various countries, and improves internal training and risk management to ensure
lawful and compliant business operations in response to the evolving legal environment.
(8) Supply chain risks: Some countries have increasingly used supply chains as a key tool for international
competition, and the global supply system has been continuously impacted by geopolitical tensions in recent
years. A large-scale supply chain interruption could impact the stability of The Company’s operations.
Hikvision is actively developing a diversified supplier network, maintaining reasonable inventory levels, and
enhancing the resilience and flexibility of its supply chain. Additionally, the Company is improving its ability
to respond to unexpected disruptions through localized production layouts and digital management practices.
(9) Risks of cybersecurity: Computer viruses, malware, and hacker attacks may still occur, potentially
compromising the Company’s systems or products and creating cybersecurity vulnerabilities. The Company
continuously enhances its cybersecurity capabilities, improves its defense mechanisms, and actively employs
advanced technologies to strengthen product and system security, ensuring a stable and reliable network
environment.
(10) Risks of exchange rate fluctuations: The Company operates in multiple countries and regions in overseas
markets and primarily conducts transactions in foreign currencies. Foreign exchange exposures arising from
sales, procurement, and financing activities objectively exist, and currency fluctuations may affect the
Company’s financial performance. The Company prudently utilizes financial instruments to hedge risks and
optimizes foreign currency fund management to mitigate the impact of currency fluctuations on its financial
performance.
(11) Risks of intellectual property (IP) rights: The Company has maintained considerable investment in R&D,
and made significant technological achievements. We have also implemented robust IP protection measures.
However, the risk of IP disputes and infringement still exists.
The above-mentioned alerts do not include all the potential risks for the Company. Investors are advised to invest
with caution.
XI. The Formulation and Implementation of Market Value Management Systems and
Valuation Enhancement Plans
Whether or not the Company has established the market value management system.
√ Applicable □ Inapplicable
Hikvision 2025 Half Year Report
On April 17, 2025, the Company's 6th Board of Directors convened its 5th meeting and reviewed and approved the
Market Value Management System. The system aims to legally and compliantly utilize various methods to enhance
its investment value, thereby ensuring that the Company's investment value reasonably reflects its quality on the
basis of continuous improvement of the Company's operational standards and quality.
Whether or not the Company has disclosed valuation enhancement plans.
□ Applicable √ Inapplicable
Hikvision 2025 Half Year Report
Section IV Corporate Governance, Environmental and Social
Responsibility
I. Changes of directors, supervisors and senior management personnel
□ Applicable √ Inapplicable
There were no changes in the Company's directors, supervisors, and senior management during the reporting period.
For details, please refer to the 2024 annual report.
II. Profit distribution and capitalizing of capital reserves for the current reporting period
□ Applicable √ Inapplicable
The Company did not plan to distribute cash dividends, send bonus shares, or convert capital reserve into share
capital during the first half of this year.
III. The implementation of an equity incentive plan, employee stock incentive plan, or other
incentive plans
□ Applicable √ Inapplicable
During the reporting period, the Company had no equity incentive plans, employee stock incentive plans, or other
employee incentive measures and their implementation.
IV. The disclosure of environmental information
□ Applicable √ Inapplicable
V. Information of social responsibilities
□ Applicable √ Inapplicable
Hikvision 2025 Half Year Report
Section V Significant Events
I. Complete and incomplete commitments of the Company and its actual controller,
shareholders, related parties, acquirers, and other related parties for the commitments during
the current reporting period.
□ Applicable √ Inapplicable
No such case during the current reporting period.
II. The Company's funds used by the controlling shareholder or its related parties for non-
operating purposes.
□ Applicable √ Inapplicable
No such case during the current reporting period.
III. Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
No such case in the current reporting period.
IV. Engagement and disengagement of the CPA firm
Has the half year report been audited?
□ Yes √ No
The Company's half year report has not been audited.
V. Explanation given by the Board of Directors, supervisory committee and independent
directors (if applicable) regarding the "non-standard auditor's report" issued by the CPA firm
for the current reporting period
□ Applicable √ Inapplicable
VI. Explanation given by the Board of Directors regarding the "non-standard auditor's report"
for the prior reporting period
□ Applicable √ Inapplicable
VII. Bankruptcy and restructuring
□ Applicable √ Inapplicable
No such case during the reporting period.
Hikvision 2025 Half Year Report
VIII. Material litigations
Material litigation and arbitration
□ Applicable √ Inapplicable
The Company had no material litigation or arbitration during the current reporting period.
Other litigation matters
□ Applicable √ Inapplicable
IX. Punishments and rectifications
□ Applicable √ Inapplicable
No such case during the reporting period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Inapplicable
XI. Significant related-party transaction
√ Applicable □ Inapplicable
Hikvision 2025 Half Year Report
Pricing Proportion to Approved Whether
Type of Content of Trading amount
principles for the amount trading exceed the Settlement Disclosure Disclosure
Related party Relationship related related （0'000
related party of similar quota (0'000 approved method date reference
transaction transaction RMB）
transactions transactions. RMB） quota
Under the common
Subsidiaries or
control of the Payment on
research institutes of 103,427.88 4.81% 350,000.00 No
Company's actual delivery Announcement
CETC
controller. on the forecast
Procurement Both parties
Joint ventures in which of daily related-
, receiving agree jointly Payment on April 19,
Joint ventures the Company holds Procurement 435.34 0.02% 2,000.00 No party
services, and based on the delivery 2025
shares transactions in
others market price
Associates in which the Payment on 2025 (No. 2025-
Associates 9,957.75 0.46% 62,700.00 No
Company holds shares delivery 014)
Refer to note 1 for Payment on
Other related parties 38,008.54 1.77% 200,400.00 No
details delivery
Under the common
Subsidiaries or
control of the Payment on
research institutes of 6,036.86 0.14% 50,000.00 No
Company's actual delivery Announcement
CETC Selling
controller on the forecast
commercial Both parties
Joint ventures in which of daily related-
goods, agree jointly Payment on April 19
Joint ventures the Company holds Sales 719.81 0.02% 13,800.00 No party
providing based on the delivery 2025
shares transactions in
services, and market price
Associates in which the Payment on 2025 (No. 2025-
Associates others 933.19 0.02% 15,700.00 No
Company holds shares delivery 014)
Refer to note 1 for Payment on
Other related parties 1,184.76 0.03% 7,500.00 No
details delivery
Hikvision 2025 Half Year Report
Pricing Proportion to Approved Whether
Type of Content of Trading amount
principles for the amount trading exceed the Settlement Disclosure Disclosure
Related party Relationship related related （0'000
related party of similar quota (0'000 approved method date reference
transaction transaction RMB）
transactions transactions. RMB） quota
Announcement
on the forecast
Under the common Renting Both parties
Subsidiaries or of daily related-
control of the house from agree jointly Based on April 19,
research institutes of Lease - 0.00% 500.00 No party
Company's actual related based on the contract 2025
CETC transactions in
controller parties market price
Announcement
on the forecast
Under the common Renting Both parties
Subsidiaries or of daily related-
control of the house to agree jointly Based on April 19
research institutes of Lease 5.63 0.00% 500.00 No party
Company's actual related based on the contract 2025
CETC transactions in
controller parties market price
Total 160,709.77 - 703,100.00
Details on significant sales return None
Total amount of related transactions projected based on
different categories, and the actual performance during the Not applicable
current reporting period (if any)
Reasons on significant difference between trading price and
Not applicable
market referencing price (if applicable)
Note 1: Enterprises controlled, jointly controlled or serving as directors or senior management personnel by affiliated natural persons of the Company (including directors, supervisors, senior
management of the Company, shareholders holding more than 5% of the shares of the Company and their close family members).
Note 2: The data shown in the totals may differ slightly from the sum of the relevant individual data due to rounding.
Hikvision 2025 Half Year Report
□ Applicable √ Inapplicable
No such case in the reporting period.
□ Applicable √ Inapplicable
No such case in the reporting period.
□ Applicable √ Inapplicable
No related-parties' creditor's rights or debts during the reporting period.
√ Applicable □ Inapplicable
Deposit business
Amount incurred
Maximum daily Deposit Total deposit Total amount
Related Opening balance Closing balance
Relationship deposit limit interest amount in the withdrawn in the
party (0,000 RMB) (0,000 RMB)
(0,000 RMB) rate range current period current period
(0,000 RMB) (0,000 RMB)
Under the
CETC
common control 0.1%-
Finance 1,750,005.89 400,018.37 191,698.39 191,705.82 400,010.94
of the Company's 1.75%
Co., Ltd.
actual controller
Loan services
Amount incurred
Loan Total loan Total repayment Closing balance
Related Loan limit Opening balance
Relationship interest amount in the amount in the
party (0,000 RMB) (0,000 RMB) (0,000 RMB)
rate rang current period current period
(0,000 RMB) (0,000 RMB)
Under the
CETC
common control
Finance 500,000.00 2.8% 15,000.00 - 15,000.00 -
of the Company's
Co., Ltd.
actual controller
Credit and other financial business
Hikvision 2025 Half Year Report
Total amount Actual amount incurred
Related party Relationship Business type
(0,000 RMB) (0,000 RMB)
Under the common control of Other financial
CETC Finance Co., Ltd 600,000.00 234,500.00
the Company's actual controller business
Note: 1. The above-mentioned transaction amount refers to the entrusted loan provided by the Company through CETC Finance Co.,
Ltd to its subsidiary companies during the current year.
(inclusive), with an actual transaction amount of RMB 150 million, all of which were loan transactions (see table above).
□ Applicable √ Inapplicable
□ Applicable √ Inapplicable
No such case in the reporting period.
XII. Significant contracts and their execution
□ Applicable √ Inapplicable
No such case in the reporting period.
□ Applicable √ Inapplicable
No such case in the reporting period.
□ Applicable √ Inapplicable
No such case in the reporting period.
Hikvision 2025 Half Year Report
√Applicable □ Inapplicable
Unit: 0,000 RMB
Guarantees provided by the Company to its subsidiaries
Guarantee
Disclosure date of for a
Guarantee Actual occurrence Actual guaranteed Type of Expiration date of Fulfilled
Guaranteed party announcement of the related
cap date amount guarantee guarantee or not
guarantee cap party or
not
Hangzhou Hikvision Technology Ltd. April 19, 2025 853,100.00 Nov 15, 2022 228,421.79 Joint guarantee May 9, 2029 No No
Hangzhou Hikvision System April 19, 2025
Technology Ltd.
Hangzhou Hikvision Electronics Ltd. April 19, 2025 26,500.00 Nov 17, 2024 4,200.00 Joint guarantee March 31, 2026 No No
Nanjing Hikvision Digital Technology April 19, 2025
Ltd.
Chongqing Hikvision Technology Ltd. April 19, 2025 25,000.00 May 10, 2024 2,100.00 Joint guarantee April 17, 2026 No No
Chongqing Hikvision System April 19, 2025
Technology Ltd.
Urumqi HaiShi Xin'An Electronic April 20, 2024
Technology Ltd
Luopu HaiShi Ding Xin Electronic April 20, 2024
Technology Ltd.
Pishan HaiShi Yong An Electronic April 20, 2024
Technology Ltd.
Moyu HaiShi Electronic Technology April 20, 2024
Ltd.
Hikvision 2025 Half Year Report
Hikvision International Co.,Limited April 19, 2025 46,500.00 Not happened during the reporting period
Wuhan Haorong Technology Ltd April 19, 2025 35,000.00 Not happened during the reporting period
Xi’an Hikvision Digital Technology April 19, 2025
Ltd.
Shijiazhuang Hikvision Technology April 19, 2025
Ltd.
HIKVISION TECHNOLOGY PTE. April 19, 2025
LTD.
Hikvision Europe B.V. April 19, 2025 7,800.00 Not happened during the reporting period
Chengdu Hikvision Ditigal Technology April 19, 2025
Ltd.
Zhengzhou Hikvision Digital April 19, 2025
Technology Ltd.
Zhengzhou Hikvision Technology Ltd. April 19, 2025 5,000.00 Not happened during the reporting period
Hikvision UK Limited April 19, 2025 3,900.00 Not happened during the reporting period
Hefei Hikvision Digital Technology April 19, 2025
Ltd.
Hikvision Digital Technology April 19, 2025
(Shanghai) Ltd.
Fuzhou Hikvision Digital Technology April 19, 2025
Ltd.
Nanchang Hikvision Digital April 19, 2025
Technology Ltd.
Wuhan Hikvision Technology Ltd. April 19, 2025 1,000.00 Not happened during the reporting period
Hikvision Italy S.r.l. April 19, 2025 800.00 Not happened during the reporting period
Hikvision 2025 Half Year Report
Total guarantee cap for subsidiaries approved during the reporting Total actual guarantee amount for
period (B1)
(B2)
Total actual guarantee balance for
Total approved guarantee cap for subsidiaries at the end of the
reporting period (B3)
period (B4)
Guarantees provided by subsidiaries of the Company to their subsidiaries
Guarantee
Disclosure date of
Guarantee Actual occurrence Actual guaranteed Type of Fulfilled for a
Guaranteed party announcement of the Term of guarantee
cap date amount guarantee or not related
guarantee cap
party or not
Hangzhou Hikrobot Intelligence Ltd. April 19, 2025 36,000.00 Sep 27, 2023 5,086.65 Joint guarantee April 17, 2026 No No
Hangzhou Haikang Intelligent April 19, 2025
Technology Ltd.
Hikrobot Europe B.V. April 19, 2025 17,000.00 Aug 29, 2024 553.33 Joint guarantee July 19, 2026 No No
Hangzhou Hikmicro Intelligent April 19, 2025
Technology Ltd.
Hikrobot Korea Limited April 19, 2025 5,000.00 Not happened during the reporting period
Hikrobot Singapore Pte. Ltd. April 19, 2025 1,500.00 Not happened during the reporting period
Hikrobot Japan K.K. April 19, 2025 1,500.00 Not happened during the reporting period
Hangzhou EZVIZ Software Ltd. April 19, 2025 400.00 Not happened during the reporting period
Total actual guarantee amount for
Total guarantee cap for subsidiaries approved during the reporting
period (C1)
(C2)
Total approved guarantee cap for subsidiaries at the end of the Total actual guarantee balance for
reporting period (C3） subsidiaries at the end of the reporting
Hikvision 2025 Half Year Report
period (C4)
The total amount of Company's guarantees (that is, the total of the first three items)
Total guarantee cap approved during the reporting period Total actual guarantee amount during
(A1+B1+C1) the reporting period（A2+B2+C2）
Total actual guarantee balance at the
Total approved guarantee cap at the end of reporting period
(A3+B3+C3)
（A4+B4+C4）
Portion of the total actual guarantee (A4+B4+C4) amount in net
assets of the Company
Of which:
The balance of guarantee for shareholders, actual controllers and
their affiliates. (D)
Amount of debt guarantees provided directly or indirectly for
entities with a liability-to-asset ratio over 70% (E)
Total amount of guarantee exceeding 50% of net assets (F) -
Total guarantee amount of the above-mentioned 3 kinds of
guarantees (D+E+F)
Hikvision 2025 Half Year Report
□Applicable √Inapplicable
No such case during the reporting period
□Applicable √ Inapplicable
The Company has no other significant contracts in the reporting period.
XIII. Other significant events
√Applicable □ Inapplicable
increase the Company's shares.
On October 18, 2024, the Company received a notice from the Company's controlling shareholder, China
Electronics Technology HIK Group Co., Ltd. (hereinafter referred to as "CETHIK"), and the person acting in concert
with CETHIK, CETC Investment Holdings Co., Ltd. (hereinafter referred to as "CETC Investment"), that CETHIK
and CETC Investment intended to increase their holdings of the Company's shares by centralized bidding through
Shenzhen Stock Exchange trading system, within 6 months from October 19, 2024. CETHIK planned to increase
its shareholding with an amount of no less than RMB200 million and no more than RMB300 million, and CETC
Investment planned to increase its shareholding with an amount of no less than RMB100 million and no more than
RMB200 million. The funding sources for CETHIK include its own funds and special loans for stock acquisition,
whereas CETC Investment's funding comes from its own capital.
As of the closing on April 8, 2025, CETHIK cumulatively increased its shareholding in the Company by
of the Company’s total share capital at the time of the increase, with a total investment of RMB200,182,737.28
(excluding transaction fees). By the close of 8 April, 2025, CETC Investment cumulatively acquired 3,204,700
shares through centralized bidding transactions on the Shenzhen Stock Exchange, representing 0.0347% of the
company's total share capital at the time, with a total investment of RMB100,016,373.80 (excluding transaction
fees). CETHIK and CETC Investment have completed the plan to increase the Company's shares.
The Company has duly fulfilled its disclosure obligations in accordance with relevant regulations upon
reaching the halfway point and completion of the aforementioned share increase plan and its completion. For details,
please refer to the announcements published on the CNINFO website: the Announcement on the Share Increase
Hikvision 2025 Half Year Report
Plan by the Company's Controlling Shareholder and Its Concerted Parties (October 19, 2024), the Announcement
on the Controlling Shareholder Obtaining a Special Loan Commitment Letter for Share Increase (December 14,
Its Concerted Parties (January 18, 2025), and the Announcement on Implementation Completion (April 9, 2025).
Based on the firm confidence in the Company's future development prospects and the high recognition of its
long-term value, the Chairman of the board proposed a share repurchase on October 18, 2024. The proposal was
reviewed and approved at the 4th Meeting of the 6th Board of Directors on December 9, 2024, and the 2024 2nd
Extraordinary General Meeting on December 25, 2024, through the Share Repurchase Plan Proposal. The company
is authorized to repurchase a portion of its domestically issued RMB ordinary shares (A-shares) via centralized
bidding on the Shenzhen Stock Exchange. The total repurchase amount shall not exceed RMB2.50 billion (inclusive)
and shall be no less than RMB2.00 billion (inclusive), with a maximum repurchase price of RMB 406 per share
(inclusive). Funding sources include the Company's own capital and a dedicated share repurchase loan. The
repurchase period shall not exceed 12 months from the date of shareholder approval. The repurchased shares will
be canceled to reduce registered capital. For details, refer to the announcements published on October 19, December
of the Fourth Meeting of the Sixth Board of Directors, Announcement on the Share Repurchase Plan, Resolution of
the 2024 Second Extraordinary General Meeting, and Share Repurchase Report.
On December 26, 2024, the Company completed its first repurchase of 4,003,019 shares via a dedicated
securities account through centralized bidding, representing 0.0434% of the total shares outstanding at the time of
the repurchase. The highest and lowest transaction prices were RMB 31.50/share and RMB 31.06/share, respectively,
with a total share value of RMB 125,613,283.27 (excluding transaction fees).
As of the market close on July 31, 2025, the Company has implemented the share repurchase through the
dedicated securities account for share repurchases via centralized bidding, cumulatively repurchasing 62,791,259
shares, which represents 0.6801% of the Company's current total issued share capital. The highest transaction price
was RMB32.70 per share, and the lowest transaction price was RMB27.06 per share. The total transaction amount
was RMB1,858,599,601.06 (excluding transaction fees).
Hikvision 2025 Half Year Report
The Company strictly complies with regulatory requirements, follows lawful procedures, and discloses
repurchase progress announcements at the initial share repurchase and within the first three trading days of each
month. For details, refer to the Announcement on the First Share Repurchase published on December 27, 2024, on
the CNINFO website, and the Announcement on Share Repurchase Progress disclosed at the beginning of each
month.
XIV. Significant events of the Company's subsidiaries
√Applicable □ Inapplicable
Matters Relating to Steady Promotion of the Spin-off of HikRobot to be Listed on the SZSE ChiNext Market
On March 7, 2023, Hangzhou Hikrobot Co., Ltd. (hereinafter referred to as "HikRobot") received Notice on
Accepting the Application Documents for the Initial Public Offering of Shares and Listing on the SZSE ChiNext
Market of Hangzhou Hikrobot Co., Ltd. (SZSE Listing Review [2023] No. 252) issued by Shenzhen Stock Exchange,
and SZSE considered that application documents were completed and decided to accept. For details, please refer to
the Announcement on the Application for the Initial Public Offering of Shares and Listing on the SZSE ChiNext
Market of Hangzhou Hikrobot Co., Ltd., a Subsidiary of the Company, is Accepted by the SZSE (Announcement
No.: 2023-008) published by the Company on cninfo website on March 8, 2023. Shenzhen Stock Exchange issed
the Inquiry Letter on the Review of Application Documents for the Initial Public Share Offering of Shares and
Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. (Inquiry Letter (2023) No. 010121) on March
the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd.
on May 17, 2023. Shenzhen Stock Exchange issued the Second Inquiry Letter on the Review of Application
Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou
Hikrobot Co., Ltd. (Inquiry Letter (2023) No. 010218) on June 30, 2023, and HikRobot has submitted the Reply to
the Second Inquiry Letter on the Review of Application Documents for the Initial Public Share Offering of Shares
and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co., Ltd. on July 27, 2023. Shenzhen Stock
Exchange issued the Letter on the Implementation of the Opinions of the Review Center on the Application of
Hangzhou Hikrobot Co., Ltd. for Initial Public Offering of Shares and Listing on the ChiNext board (Inquiry Letter
(2024) No. 010010) On January 15, 2024, and subsequently announced Hikrobot's submission of the Reply to the
Review Opinions Letter from the Application Documents Review Center for the Initial Public Offering of Shares
and Listing on the ChiNext Board of Hangzhou Hikrobot Co., Ltd. on January 2, 2025.
Hikvision 2025 Half Year Report
Section VI Changes in Shares and Information about Shareholders
I. Changes in share capital
Unit: Share
Before the change Changes in the period (+, -) After the change
Share
New Shares Bonus transferred
Shares Ratio Others Sub-total Shares Ratio
Issued share from capital
reserve
Including: held by domestic corporates
held by domestic natural person 127,528,512 1.38% -9,090,564 -9,090,564 118,437,948 1.28%
Including: held by overseas corporates
held by overseas natural person
Reason for the changes in share capital
Hikvision 2025 Half Year Report
□Applicable √ Inapplicable
Approval for changes in share capital
□Applicable √ Inapplicable
Transfer for changes in share capital
□Applicable √ Inapplicable
Information about the implementation of share repurchase
√Applicable □Inapplicable
Based on the firm confidence in the Company's future development prospects and the high recognition of its long-term value, the Chairman of the board proposed a share repurchase
on October 18, 2024. The proposal was reviewed and approved at the 4th Meeting of the 6th Board of Directors on December 9, 2024, and the 2024 2nd Extraordinary General Meeting
on December 25, 2024, through the Share Repurchase Plan Proposal. The Company is authorized to repurchase a portion of its domestically issued RMB ordinary shares (A-shares) via
centralized bidding on the Shenzhen Stock Exchange. The total repurchase amount shall not exceed RMB2.5 billion (inclusive) and shall be no less than RMB2.0 billion (inclusive), with
a maximum repurchase price of RMB40 per share (inclusive). Funding sources include the Company's own capital and a dedicated share repurchase loan. The repurchase period shall not
exceed 12 months from the date of shareholder approval. The repurchased shares will be canceled to reduce registered capital. For details, refer to the announcements published on October
Announcement on the Share Repurchase Plan, Resolution of the 2024 Second Extraordinary General Meeting, and Share Repurchase Report.
On December 26, 2024, the Company completed its first repurchase of 4,003,019 shares via a dedicated securities account through centralized bidding, representing 0.0434% of the
total shares outstanding. The highest and lowest transaction prices were RMB 31.50/share and RMB 31.06/share, respectively, with a total share value of RMB 125,613,283.27 (excluding
fees).
As of the market close on July 31, 2025, the Company has implemented the share repurchase through the dedicated securities account for share repurchases via centralized bidding,
cumulatively repurchasing 62,791,259 shares, which represents 0.6801% of the Company's current total issued share capital. The highest transaction price was RMB32.70 per share, and
the lowest transaction price was RMB27.06per share. The total transaction amount was RMB1,858,599,601.06 (excluding transaction fees).
The Company strictly complies with regulatory requirements, follows lawful procedures, and discloses repurchase progress announcements at the initial share repurchase and within
the first three trading days of each month. For details, refer to the Announcement on the First Share Repurchase published on December 27, 2024, on the CNINFO website, and the
monthly Announcement on Share Repurchase Progress.
The implementation progress of reducing and repurchasing shares by centralized bidding
Hikvision 2025 Half Year Report
□Applicable √ Inapplicable
Effects of changes in share capital on the basic earnings per share ("EPS"), diluted EPS, net assets per share attributable to common shareholders of the Company, and other financial
indexes over the last year and last period
□Applicable √ Inapplicable
Other contents that the Company considers necessary or required by the securities regulatory authorities to disclose
□ Applicable √ Inapplicable
√ Applicable □ Inapplicable
Unit: Share
Number of restricted Number of
Number of restricted Number of restricted
shares at the restricted shares at
Name of shareholder shares unlocked shares increased Restriction reasons Unlock date
beginning of the the end of the
during the period during the period
period period
Hu Yangzhong 116,997,358 0 0 116,997,358 Restricted shares for senior executives
Xu Peng 28,966 0 0 28,966 Restricted shares for senior executives
Wang Qiuchao 26,250 0 0 26,250 Restricted shares for senior executives
Pan Jia 40,969 0 0 40,969 Restricted shares for senior executives
He Hongli 248,625 0 0 248,625 Restricted shares for senior executives
Pu Shiliang 199,425 0 0 199,425 Restricted shares for senior executives
Guo Xudong 38,355 0 0 38,355 Restricted shares for senior executives
According to the relevant
Xu Ximing 110,925 0 0 110,925 Restricted shares for senior executives provisions of shares
management for directors,
Huang Fanghong 299,625 0 0 299,625 Restricted shares for senior executives
supervisors and senior
Jin Yan 188,250 0 0 188,250 Restricted shares for senior executives executives
Cai Changyang 82,125 0 0 82,125 Restricted shares for senior executives
Qu Liyang 15,750 15,750 0 0 Restricted shares for senior executives
Wu Weiqi 8,685,789 8,685,789 0 0 Restricted shares for senior executives
Xu Lirong 303,000 303,000 0 0 Restricted shares for senior executives
Jin Duo 109,500 109,500 0 0 Restricted shares for senior executives
Bi Huijuan 236,100 59,025 0 177,075 Restricted shares for senior executives
Total 127,611,012 9,173,064 0 118,437,948 -- --
Hikvision 2025 Half Year Report
Note: The Company has completed the re-election process by August 2, 2024, and Qu Liyang, Wu Weiqi, Xu Lirong, and Jin Duo have reached the end of their terms and left their
positions for more than 6 months. Bi Huijuan resigned from her executive position on October 25, 2024, and has also been out of office for more than 6 months. According to the relevant
rules on share lock-up for directors, supervisors, and senior management, the shares held by the aforementioned individuals are now partially or fully unlocked from restrictions.
II. Issuance and listing of securities
□Applicable √ Inapplicable
There were no securities issues during the reporting period
III. Total number of shareholders and their shareholdings
Unit: Share
Total number of common shareholders at the end of the Total number of preferred shareholders with voting rights restored at the end of the
reporting period current reporting period (if any)
Particulars about shares held by common shareholders with a shareholding percentage over 5% or the Top 10 of them (Excludes shares lent through refinancing)
Share-
Total number of Increase/ The number of The number of shares Pledged, marking or frozen
holding
Name of shareholder Nature of shareholder shares at the end of decrease during the shares with trading without trading
percentage Shares'
the reporting period reporting period restrictions restrictions Amount
(%) Status
China Electronics Technology State-owned
HIK Group Co., Ltd. corporation
Gong Hongjia Overseas individual 10.42% 962,504,814 0 0 962,504,814 Pledged 249,668,200
Hangzhou Weixun Equity Domestic
Investment Partnership non-state-owned 4.88% 450,795,176 0 0 450,795,176 Pledged 14,000,000
(Limited Partnership) corporation
Shanghai Perseverance Asset
Management Partnership
(Limited Partnership) - Other 3.66% 338,000,000 -47,950,050 0 338,000,000 - -
Perseverance Adjacent
Mountain 1 Yuanwang Fund
CETC Investment Holdings
State-owned corporation 2.69% 248,366,268 2,882,100 0 248,366,268 -
Co., Ltd.
Hangzhou Pukang Equity Domestic
Investment Partnership non-state-owned 1.98% 182,510,174 0 0 182,510,174 Pledged 56,790,000
(Limited Partnership) corporation
The 52nd Research Institute at
State-owned
China Electronics Technology 1.96% 180,775,044 0 0 180,775,044 - -
corporation
Group Corporation
Hikvision 2025 Half Year Report
Hu Yangzhong Domestic Individual 1.69% 155,996,477 0 116,997,358 38,999,119 - -
Industrial and Commercial
Bank of China Co., Ltd. -
Huatai Pinebridge CSI 300 Overseas corporation 0.71% 65,941,856 2,090,000 0 65,941,856 - -
ETF Securities Investment
Fund
Central Huijin Investment Co.,
State-owned corporation 0.70% 64,700,691 0 0 64,700,691 - -
Ltd.
Among the above shareholders, China Electronics Technology HIK Group Co., Ltd., CETC Investment Holdings Co., Ltd., and the 52 nd Research
Institute at China Electronics Technology Group Corporation are acting-in-concert parties. Mr. Gong Hongjia and Hangzhou Pukang Equity
Explanation on associated relationship or concerted actions
Investment Partnership (Limited Partnership) are acting-in-concert parties. Mr. Hu Yangzhong and Hangzhou Weixun Equity Investment Partnership
among the above-mentioned shareholders:
(Limited Partnership) are acting-in-concert parties. 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.
Particulars about shares held by the Top 10 shareholders holding shares that are not subject to trading restriction
(Excludes loaned shares through refinancing and lock-up shares of senior executives)
Number of shares without trading Type of shares
Name of shareholder
restrictions held at the period-end Type Number
China Electronics Technology HIK Group Co., Ltd. 3,416,996,509 RMB common shares 3,416,996,509
Gong Hongjia 962,504,814 RMB common shares 962,504,814
Hangzhou Weixun Equity Investment Partnership (Limited Partnership) 450,795,176 RMB common shares 450,795,176
Shanghai Perseverance Asset Management Partnership (Limited Partnership) - Perseverance
Adjacent Mountain 1 Yuanwang Fund
CETC Investment Holdings Co., Ltd. 248,366,268 RMB common shares 248,366,268
Hangzhou Pukang Equity Investment Partnership (Limited Partnership) 182,510,174 RMB common shares 182,510,174
nd
The 52 Research Institute at China Electronics Technology Group Corporation. 180,775,044 RMB common shares 180,775,044
Industrial and Commercial Bank of China Co., Ltd. - Huatai Pinebridge CSI
Central Huijin Investment Co., Ltd. 64,700,691 RMB common shares 64,700,691
China Construction Bank Corporation - E Fund CSI 300 ETF Securities Investment Fund
(Initiated Type)
Hikvision 2025 Half Year Report
Explanation on associated relationship and concerted actions Among the above shareholders, China Electronics Technology HIK Group Co., Ltd., CETC Investment Holdings Co., Ltd., and the 52 nd Research
top ten common shareholders holding shares without trading Institute at China Electronics Technology Group Corporation are acting-in-concert parties. Mr. Gong Hongjia and Hangzhou Pukang Equity
restrictions, and among top ten shareholders and top ten Investment Partnership (Limited Partnership) are acting-in-concert parties. Mr. Hu Yangzhong and Hangzhou Weixun Equity Investment Partnership
common shareholders holding shares without trading (Limited Partnership) are acting-in-concert parties. Except for these, the Company does not know whether the other shareholders are related parties
restrictions or whether they are acting-in-concert parties in accordance with the Administrative Measures for Acquisitions of Listed Companies.
As of the end of the reporting period, among the top 10 non-restricted shareholders, there exists a buyback account: "Hikvision Digital Technology
Special note on the presence of a buy-back account among the
Co., Ltd. Buyback Special Securities Account". The company’s buyback special securities account holds 62,418,859 shares of the company,
Top 10 non-restricted shareholders.
accounting for 0.68% of the total share capital of the company as of the end of the reporting period.
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
□Applicable √Inapplicable
Changes of the top 10 shareholders and the top 10 shareholders that are not subject to trading restriction compared with the previous period due to refinancing, lending/repayment issues
□ Applicable √ Inapplicable
Any of the Company's top 10 common shareholders or top 10 non-restricted common shareholders conducted any agreed buy-back in the reporting period
□ Applicable √ Inapplicable
No such case during the current reporting period.
IV. Shareholding changes of directors, supervisors, senior management personnel
√ Applicable □ Inapplicable
Number of
Shares Number of Number of
Shares Shares held at restricted
Shares held at the decreased restricted stocks restricted
increased during the end of the stocks granted
Tenure beginning of the during the granted at the stocks granted
Name Title the current current at the end of the
status current reporting current beginning of the in the current
reporting period reporting period current
period (shares) reporting period current reporting reporting
(shares) (shares) reporting
(shares) period (shares) period (shares)
period (shares)
Hu Yangzhong Chairman Incumbent 155,996,477 0 0 155,996,477 0 0 0
Fu Baijun Director Incumbent 0 0 0 0 0 0 0
Xu Lixing Director Incumbent 0 0 0 0 0 0 0
Xu Peng Director and General Manager Incumbent 38,622 0 0 38,622 0 0 0
Wang Qiuchao Director Incumbent 35,000 0 0 35,000 0 0 0
Wu Xiaobo Independent Director Incumbent 0 0 0 0 0 0 0
Hikvision 2025 Half Year Report
Number of
Shares Number of Number of
Shares Shares held at restricted
Shares held at the decreased restricted stocks restricted
increased during the end of the stocks granted
Tenure beginning of the during the granted at the stocks granted
Name Title the current current at the end of the
status current reporting current beginning of the in the current
reporting period reporting period current
period (shares) reporting period current reporting reporting
(shares) (shares) reporting
(shares) period (shares) period (shares)
period (shares)
Hu Ruimin Independent Director Incumbent 0 0 0 0 0 0 0
Lv Changjiang Independent Director Incumbent 0 0 0 0 0 0 0
Tan Xiaofen Independent Director Incumbent 0 0 0 0 0 0 0
Lu Jianzhong Supervisor Chairman Incumbent 0 0 0 0 0 0 0
Huang Xing Supervisor Incumbent 0 0 0 0 0 0 0
Pan Jia Employee Supervisor Incumbent 54,625 0 0 54,625 0 0 0
He Hongli Senior Deputy General Manager Incumbent 331,500 0 0 331,500 0 0 0
Pu Shiliang Senior Deputy General Manager Incumbent 265,900 0 0 265,900 0 0 0
Guo Xudong Senior Deputy General Manager Incumbent 51,140 0 0 51,140 0 0 0
Xu Ximing Senior Deputy General Manager Incumbent 147,900 0 0 147,900 0 0 0
Chen Junke Senior Deputy General Manager Incumbent 0 0 0 0 0 0 0
Huang Fanghong Senior Deputy General Manager Incumbent 399,500 0 0 399,500 0 0 0
Senior Deputy General Manager
Jin Yan Incumbent 251,000 0 0 251,000 0 0 0
and Person in Charge of Finance
Cai Changyang Senior Deputy General Manager Incumbent 109,500 0 0 109,500 0 0 0
Senior Deputy General Manager
Feng Wei Incumbent 0 0 0 0 0 0 0
and Board Secretary
Total -- -- 157,681,164 0 0 157,681,164 0 0 0
Note 1: Number shares held at the beginning of the period, shares increased during the period, shares decreased during the period for directors, supervisors, and senior management personnel above are all shares
directly held by them accordingly.
V. Changes in controlling shareholders or actual controllers
Change of the controlling shareholder during the reporting period
□ Applicable √ Inapplicable
The Company's controlling shareholder has not changed during the reporting period.
Change of the actual controller during the reporting period
□ Applicable √ Inapplicable
No such change during the reporting period.
Hikvision 2025 Half Year Report
VI. Information of Preferred Shares
□ Applicable √ Inapplicable
There is no preferred share existed for the Company during the current reporting period.
Hikvision 2025 Half Year Report
Section VII Bonds
□ Applicable √ Inapplicable
Hikvision 2025 Half Year Report
Section VIII Financial Report
Audit report
Whether audit has been performed on the half year report
□ Yes √ No
The Company's 2025 Half Year Report has not been audited
Hikvision 2025 Half Year Report
On June 30, 2025
Consolidated Balance Sheet
Unit: RMB
Item Notes On June 30, 2025 On December 31, 2024
Current Assets:
Cash and bank balances (V)1 31,286,076,526.36 36,271,488,337.03
Derivative financial assets (V)2 25,600.00 26,775,923.93
Notes receivable (V)3 2,418,540,558.05 2,722,596,142.46
Accounts receivable (V)4 34,838,491,117.63 37,910,128,735.42
Receivables for financing (V)6 2,249,443,298.00 2,291,648,244.05
Prepayments (V)7 620,080,202.34 664,602,593.01
Other receivables (V)8 447,648,290.70 531,344,606.50
Inventories (V)9 19,124,924,891.72 19,110,711,958.11
Contract assets (V)5 916,055,435.78 985,822,785.69
Non-current assets due within one year (V)10 755,509,234.02 894,327,647.82
Other current assets (V)11 1,313,157,836.09 1,071,066,653.10
Total Current Assets 93,969,952,990.69 102,480,513,627.12
Non-current Assets:
Long-term receivables (V)12 303,911,420.46 380,453,188.09
Long-term equity investment (V)13 1,491,371,496.71 1,527,223,390.79
Other non-current financial assets (V)14 514,607,935.55 472,000,082.76
Fixed assets (V)15 16,883,791,179.01 15,063,752,296.49
Construction in progress (V)16 4,007,765,610.39 4,699,473,381.21
Right-of-use assets (V)17 465,741,605.70 530,138,023.79
Intangible assets (V)18 1,868,610,859.97 1,828,287,135.99
Goodwill (V)19 312,877,102.51 312,165,129.29
Long-term deferred expenses (V)20 142,041,346.64 162,841,758.91
Deferred tax assets (V)21 2,318,790,171.33 2,206,191,157.06
Other non-current assets (V)22 2,135,303,562.16 2,353,160,984.64
Total Non-current Assets 30,444,812,290.43 29,535,686,529.02
Total Assets 124,414,765,281.12 132,016,200,156.14
Hikvision 2025 Half Year Report
On June 30, 2025
Consolidated Balance Sheet-continued
Unit: RMB
Item Notes On June 30, 2025 On December 31, 2024
Current Liabilities:
Short-term borrowings (V)24 1,530,631,987.86 1,031,895,812.62
Derivative financial liabilities (V)25 55,839,882.40 1,874,341.64
Notes payable (V)26 552,245,205.69 1,197,128,746.56
Accounts payable (V)27 15,820,376,447.17 20,185,303,107.69
Contract liabilities (V)28 3,380,938,673.00 3,353,943,054.24
Payroll payable (V)29 4,933,259,903.09 5,666,415,834.10
Taxes payable (V)30 1,567,672,499.01 1,535,936,096.02
Other payables (V)31 3,348,369,395.60 3,528,359,044.48
Including: dividends payable (V)31.2 19,882,185.64 186,793.11
Non-current liabilities due within one year (V)32 4,058,425,783.08 767,030,688.91
Other current liabilities (V)33 329,937,625.83 377,117,275.65
Total Current Liabilities 35,577,697,402.73 37,645,004,001.91
Non-current Liabilities:
Long-term borrowings (V)34 1,227,788,621.45 5,119,185,000.00
Lease liabilities (V)35 316,505,423.75 375,432,749.68
Long-term payables 9,783,791.48 9,780,220.80
Provisions (V)36 354,066,140.77 305,250,049.71
Deferred income (V)37 844,220,403.74 874,512,073.53
Deferred tax liabilities (V)21 132,413,747.69 112,711,363.52
Other non-current liabilities (V)38 143,410,893.98 74,029,948.84
Total Non-current Liabilities 3,028,189,022.86 6,870,901,406.08
Total Liabilities 38,605,886,425.59 44,515,905,407.99
Owners' Equity
Share capital (V)39 9,233,198,326.00 9,233,198,326.00
Capital reserves (V)40 6,243,380,907.40 6,181,644,265.06
Less: Treasury shares (V)41 1,848,531,198.07 310,044,296.12
Other comprehensive income (V)42 21,828,827.70 (111,510,486.21)
Surplus reserves (V)43 4,715,460,312.00 4,715,460,312.00
Retained earnings (V)44 60,187,021,251.83 60,959,912,942.15
Total owners' equity attributable to owner of the
Company
Minority equity 7,256,520,428.67 6,831,633,685.27
Total Owners' Equity 85,808,878,855.53 87,500,294,748.15
Total Liabilities and Owners' Equity 124,414,765,281.12 132,016,200,156.14
The accompanying notes form part of the financial statements.
The financial statements were signed by the following:
Legal Representative: Hu Yangzhong;
Person in Charge of the Accounting Work: Jin Yan;
Person in Charge of the Accounting Department: Zhan Junhua
Hikvision 2025 Half Year Report
On June 30, 2025
Balance Sheet of the Parent Company
Unit: RMB
Item Notes On June 30, 2025 On December 31, 2024
Current Assets:
Cash and bank balances 20,405,120,468.61 22,813,537,991.27
Notes receivable 199,891,296.78 226,470,150.02
Accounts receivable (XVI)1 26,160,985,643.47 25,733,620,869.95
Receivables for financing 63,196,150.82 50,535,530.46
Prepayments 273,941,767.43 234,363,667.93
Other receivables (XⅥ)2 5,071,965,721.54 4,405,567,174.71
Inventories 141,893,198.60 143,812,782.98
Contract assets 21,683,662.66 18,901,004.71
Non-current assets due within one year 80,763,649.68 106,879,332.17
Other current assets 1,740,545,483.62 1,720,538,797.37
Total Current Assets 54,159,987,043.21 55,454,227,301.57
Non-current Assets:
Long-term accounts receivable 1,106,324,651.42 1,204,913,267.41
Long-term equity investment (XⅥ)3 9,328,801,678.13 9,486,970,485.01
Other non-current financial assets 344,737,970.55 307,130,117.76
Fixed assets 3,525,904,179.91 3,415,196,347.85
Construction in progress 129,394,409.75 79,844,913.85
Right-of-use assets 74,589,976.67 84,298,386.18
Intangible assets 496,821,157.52 173,965,691.99
Long-term deferred expenses 29,239,644.50 37,381,601.80
Deferred tax assets 297,578,623.34 298,084,602.58
Other non-current assets 46,074,293.25 62,355,873.60
Total Non-current Assets 15,379,466,585.04 15,150,141,288.03
Total Assets 69,539,453,628.25 70,604,368,589.60
Hikvision 2025 Half Year Report
On June 30, 2025
Balance Sheet of the Parent Company - continued
Unit: RMB
Item Notes On June 30, 2025 On December 31, 2024
Current Liabilities:
Short-term borrowings 1,000,550,750.00 200,075,833.33
Accounts payable 1,135,257,088.96 1,184,469,965.39
Contract liabilities 214,302,254.52 191,877,808.28
Payroll payable 2,732,509,887.92 3,247,226,282.17
Taxes payable 907,314,615.41 574,239,387.19
Other payables 2,101,774,356.37 635,628,127.73
Non-current liabilities due within one year 1,550,203,279.15 210,197,535.44
Other current liabilities 37,357,392.01 44,720,937.37
Total Current Liabilities 9,679,269,624.34 6,288,435,876.90
Non-current Liabilities:
Long-term borrowings 499,000,000.00 1,827,000,000.00
Lease liabilities 39,298,983.40 46,955,785.74
Provisions 110,428,595.79 107,030,168.03
Deferred income 332,335,257.24 365,813,574.47
Total Non-current Liabilities 981,062,836.43 2,346,799,528.24
Total Liabilities 10,660,332,460.77 8,635,235,405.14
Owners' Equity
Share capital 9,233,198,326.00 9,233,198,326.00
Capital reserves 3,879,711,222.49 3,849,752,890.09
Less: Treasury shares 1,848,531,198.07 310,044,296.12
Surplus reserves 4,715,460,312.00 4,715,460,312.00
Retained earnings 42,899,282,505.06 44,480,765,952.49
Total Owners' Equity 58,879,121,167.48 61,969,133,184.46
Total Liabilities and Owners' Equity 69,539,453,628.25 70,604,368,589.60
Hikvision 2025 Half Year Report
For the reporting period from January 1, 2025 to June 30, 2025
Consolidated Income Statement
Unit: RMB
Amount for the
Amount for the
Item Notes prior period
current period
(restated)
I. Total Revenue (V)45 41,818,040,088.44 41,209,096,206.36
Less: Total operating costs (V)45 22,919,499,439.04 22,732,341,841.73
Business taxes and surcharges (V)46 378,912,693.73 359,300,410.42
Selling expenses 5,708,759,811.30 5,473,891,751.46
Administrative expenses 1,386,257,017.69 1,464,347,813.80
Research and Development (R&D) expenses 5,669,772,011.51 5,698,043,754.07
Financial expenses (V)47 (739,368,414.40) (250,188,701.72)
Including: Interest expenses 107,112,248.08 251,713,545.47
Interest income 281,621,810.18 617,390,094.88
Add: Other income (V)48 1,180,671,233.88 1,234,679,673.52
Investment income (losses) (V)49 (36,631,451.99) (104,162,185.92)
Including: Investment gains (losses) in associated enterprise
and joint-venture enterprise
Termination recognition gains (losses) on financial assets
measured at amortized cost
Gains (losses) from changes in fair values (V)50 (43,117,443.33) 50,389,142.62
Credit impairment gains (losses) (V)51 (378,694,171.37) (419,420,246.23)
Impairment gains (losses) of assets (V)52 (208,566,206.64) (204,108,927.43)
Asset disposal income (losses) 7,386,351.06 (11,772,875.69)
II. Operating Profit 7,015,255,841.18 6,276,963,917.47
Add: Non-operating income (V)53 32,957,197.92 36,803,721.87
Less: Non-operating expenses (V)54 7,322,434.53 12,247,046.91
III. Profit Before Taxes 7,040,890,604.57 6,301,520,592.43
Less: Income tax expenses (V)55 759,413,973.74 660,855,881.81
IV. Net Profit 6,281,476,630.83 5,640,664,710.62
(a) Net profit on continuous operation 6,281,476,630.83 5,640,664,710.62
(b) Net loss on terminated operation - -
(a) Net profit attributable to owners of parent company 5,657,349,798.68 5,064,118,857.29
(b) Profit or loss attributable to minority interests 624,126,832.15 576,545,853.33
V. Other Comprehensive Income, Net of Income Tax (V)42 200,301,615.25 (97,804,683.71)
Other comprehensive income attributable to owners of the
Company, net of tax
(I) Items that will not be reclassified subsequently to profit or loss - -
(II) Other comprehensive income to be reclassified to profit or
loss in subsequent periods
statements denominated in foreign currencies
Hikvision 2025 Half Year Report
Amount for the
Amount for the
Item Notes prior period
current period
(restated)
Other comprehensive income attributable to minority interests, net
of tax
VI. Total Comprehensive Income 6,481,778,246.08 5,542,860,026.91
Total comprehensive income attributable to owners of the parent
company
Total comprehensive income attributable to minority interests 691,089,133.49 523,242,133.22
VII. Earnings Per Share
(I) Basic earnings per share (RMB/share) (XVII)2 0.615 0.539
(II) Diluted earnings per share (RMB/share) (XⅦ)2 0.615 0.539
Hikvision 2025 Half Year Report
For the reporting period from January 1, 2025 to June 30, 2025
Income statement of the parent company
Unit: RMB
Amount for the
Amount for the
Item Notes prior period
current period
(restated)
I. Total Revenue (XVI)4 10,918,172,590.70 10,889,673,181.86
Less: Total operating costs (XⅥ)4 1,761,451,025.61 1,895,817,748.51
Business taxes and surcharges 127,709,740.15 129,252,038.04
Selling expenses 1,584,703,807.43 1,923,983,188.09
Administrative expenses 341,696,756.42 393,153,953.37
Research and development (R&D) expenses 3,038,343,230.98 3,192,983,560.32
Financial expenses (121,288,497.66) (392,850,941.84)
Including: Interest expenses 35,147,253.23 101,425,072.09
Interest income 144,754,417.42 467,654,103.79
Add: Other income 777,572,208.70 732,986,740.12
Investment income (XⅥ)5 338,412,218.62 181,907,046.48
Including: Investment gains (losses) in associated enterprise
and joint-venture enterprise
Gains (losses) from changes in fair values 37,607,852.79 12,581,839.26
Credit impairment gains (losses) (4,572,299.45) (61,208,801.49)
Impairment gains (losses) of assets (3,960,333.90) (404,775.02)
Asset disposal income (losses) 10,564,493.15 (5,767,598.87)
II. Operating Profit 5,341,180,667.68 4,607,428,085.85
Add: Non-operating income 5,545,382.36 6,163,369.20
Less: Non-operating expenses 1,370,006.75 547,316.92
III. Profit Before Taxes 5,345,356,043.29 4,613,044,138.13
Less: Income tax expenses 496,598,001.72 376,960,164.61
IV. Net Profit 4,848,758,041.57 4,236,083,973.52
V. Other Comprehensive Income, Net of Income Tax - -
VI. Total Comprehensive Income 4,848,758,041.57 4,236,083,973.52
Hikvision 2025 Half Year Report
For the reporting period from January 1, 2025 to June 30, 2025
Consolidated Cash Flow Statement
Unit: RMB
Amount for the Amount for the
Item Notes
current period prior period
I. Cash Flows from Operating Activities:
Cash received from sale of goods or rendering of services 49,701,456,543.93 43,685,841,357.81
Receipts of tax refunds 2,107,945,151.93 1,923,827,807.30
Other cash receipts relating to operating activities (V)56(1) 812,956,336.79 1,081,675,311.98
Sub-total of cash inflows from operating activities 52,622,358,032.65 46,691,344,477.09
Cash payments for goods purchased and services received 30,095,263,185.08 29,083,745,897.22
Cash paid to and on behalf of employees 10,757,613,386.80 11,179,470,547.06
Payments of various types of taxes 3,064,520,777.31 3,144,916,924.84
Other cash payments relating to operating activities (V)56(1) 3,361,941,045.57 3,472,847,148.87
Sub-total of cash outflows from operating activities 47,279,338,394.76 46,880,980,517.99
Net Cash Flows from Operating Activities (V)57(1) 5,343,019,637.89 (189,636,040.90)
II. Cash Flows from Investing Activities:
Cash receipts from recovery of investments 2,065,280,790.61 1,448,420,444.02
Cash receipts from investment income 49,248,130.84 -
Net cash receipts from disposals of fixed assets, intangible assets and
other long-term assets
Other cash receipts relating to investing activities (V)56(2) 58,311,055.86 43,213,496.63
Sub-total of cash inflows from investing activities 2,208,597,986.30 1,496,074,142.70
Cash payments to acquire or construct fixed assets, intangible assets
and other long-term assets
Cash paid to acquire investments 2,109,648,712.07 1,481,184,774.81
Sub-total of cash outflows from investing activities 4,087,410,135.39 3,399,300,547.20
Net Cash Flows from Investing Activities (1,878,812,149.09) (1,903,226,404.50)
III. Cash Flows from Financing Activities:
Cash receipts from borrowings 2,498,536,695.29 5,056,939,782.59
Sub-total of cash inflows from financing activities 2,498,536,695.29 5,056,939,782.59
Cash repayments of borrowings 2,608,183,590.81 6,769,443,615.22
Cash payments for distribution of dividends or profits or settlement of
interest expenses
Including: Dividends and profits paid by subsidiaries to minority
shareholders
Other cash payments relating to financing activities (V)56(3) 1,642,655,475.56 2,877,677,608.10
Sub-total of cash outflows from financing activities 11,049,112,625.46 18,417,265,145.30
Net Cash Flows from Financing Activities (8,550,575,930.17) (13,360,325,362.71)
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
V. Net Increase (Decrease) in Cash and Cash Equivalents (V)57(1) (5,054,494,535.50) (15,473,769,254.35)
Add: Opening balance of cash and cash equivalents (V)57(3) 36,053,042,380.29 49,427,967,355.78
VI. Closing Balance of Cash and Cash Equivalents (V)57(3) 30,998,547,844.79 33,954,198,101.43
Hikvision 2025 Half Year Report
For the reporting period from January 1, 2025 to June 30, 2025
Cash Flow Statements of the Parent Company
Unit: RMB
Amount for the Amount for the
Item Notes
current period prior period
I. Cash Flows from Operating Activities::
Cash receipts from the sale of goods and the rendering of services 11,805,102,023.42 5,802,621,350.99
Receipts of tax refunds 588,786,958.46 640,459,310.31
Other cash receipts relating to operating activities 353,492,572.20 762,033,834.24
Sub-total of cash inflows from operating activities 12,747,381,554.08 7,205,114,495.54
Cash payments for goods acquired and services received 2,146,780,185.63 2,531,474,071.63
Cash payments to and on behalf of employees 4,211,903,114.69 4,767,733,359.12
Payments of various types of taxes 1,244,789,824.01 1,618,060,086.39
Other cash payments relating to operating activities 1,651,056,892.77 2,889,471,304.92
Sub-total of cash outflows from operating activities 9,254,530,017.10 11,806,738,822.06
Net Cash Flows from Operating Activities 3,492,851,536.98 (4,601,624,326.52)
II. Cash Flows from Investing Activities:
Cash receipts from recovery of investments 2,480,000,000.00 2,614,000,000.00
Cash receipts from investment income 386,558,613.54 204,500,079.51
Net cash receipts from disposals of fixed assets, intangible assets and
other long-term assets
Other cash receipts relating to investing activities 34,938,498,922.64 35,687,843,665.65
Sub-total of cash inflows from investing activities 37,836,831,085.59 38,506,936,918.13
Cash payments to acquire or construct fixed assets, intangible assets and
other long-term assets
Cash payments to acquire investments 2,363,300,000.00 2,370,752,620.00
Other cash payments relating to investing activities 35,005,948,843.50 33,804,567,230.17
Sub-total of cash outflows from investing activities 38,107,786,674.54 36,469,216,836.86
Net Cash Flows from Investing Activities (270,955,588.95) 2,037,720,081.27
III. Cash Flows from Financing Activities
Cash receipts from borrowings 829,010,000.00 1,241,000,000.00
Other cash receipts relating to financing activities 10,037,423,571.45 6,653,381,408.49
Sub-total of cash inflows from financing activities 10,866,433,571.45 7,894,381,408.49
Cash repayments of borrowings 11,010,000.00 2,138,781,600.00
Cash payments for distribution of dividends or profits or settlement of
interest expenses
Other cash payments relating to financing activities 10,030,085,125.15 8,053,515,462.64
Sub-total of cash outflows from financing activities 16,498,200,525.43 18,590,089,167.26
Net Cash Flows from Financing Activities (5,631,766,953.98) (10,695,707,758.77)
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
V. Net Increase (Decrease) in Cash and Cash Equivalents (2,408,333,223.87) (13,260,874,461.93)
Add: Opening balance of cash and cash equivalents 22,790,271,523.04 36,354,702,554.38
VI. Closing Balance of Cash and Cash Equivalents 20,381,938,299.17 23,093,828,092.45
Hikvision 2025 Half Year Report
For the reporting period from January 1, 2025 to June 30, 2025
Consolidated Statement of Changes in Owners' Equity
Unit: RMB
Amount for the first half of 2025
Owner's equity attributable to the parent company
Items Minority
Less: Treasury Other comprehensive Total owners' equity
Share capital Capital reserves Surplus reserve Retained earnings interests
share income
I. Opening Balance of the
Current Period
II. Increase or Decrease in the
- 61,736,642.34 1,538,486,901.95 133,339,313.91 - (772,891,690.32) 424,886,743.40 (1,691,415,892.62)
Current Period
(I) Total comprehensive income - - - 133,339,313.91 - 5,657,349,798.68 691,089,133.49 6,481,778,246.08
(II) Owners' contributions and
- 61,736,642.34 1,538,486,901.95 - - - 29,110,665.46 (1,447,639,594.15)
reduction in capital
- - - - - - - -
shareholders
- 41,311,523.21 - - - - 15,319,808.87 56,631,332.08
recognized in owners' equity
(III) Profit distribution - - - - - (6,430,241,489.00) (295,313,055.55) (6,725,554,544.55)
III. Closing Balance of the
Current Period
Amount for the first half of 2024
Owner's equity attributable to the parent company
Items Minority
Less: Treasury Other comprehensive Total owners' equity
Share capital Capital reserves Surplus reserve Retained earnings interests
share income
I. Opening Balance of the
Current Period
II. Increase or Decrease in the
- 688,001,923.02 (87,662,344.50) (44,500,963.60) - (3,333,421,980.61) 386,152,677.85 (2,216,105,998.84)
Current Period
(I) Total comprehensive income - - - (44,500,963.60) - 5,064,118,857.29 523,242,133.22 5,542,860,026.91
(II) Owners' contributions and
- 688,001,923.02 - - - - 49,160,544.63 737,162,467.65
reduction in capital
- - - - - - - -
shareholders
- 672,863,123.68 - - - - 59,662,030.85 732,525,154.53
recognized in owners' equity
(III) Profit distribution - - (87,662,344.50) - - (8,397,540,837.90) (186,250,000.00) (8,496,128,493.40)
III. Closing Balance of the
Current Period
Hikvision 2025 Half Year Report
For the reporting period from January 1, 2025 to June 30, 2025
Statement of Changes in Owners' Equity of the Parent Company
Unit: RMB
Amount for the first half of 2025
Item
Share capital Capital reserves Less: Treasury share Surplus reserve Retained earnings Total owners' equity
I. Opening Balance of the Current Period 9,233,198,326.00 3,849,752,890.09 310,044,296.12 4,715,460,312.00 44,480,765,952.49 61,969,133,184.46
II. Increase or Decrease in the Current Period - 29,958,332.40 1,538,486,901.95 - (1,581,483,447.43) (3,090,012,016.98)
(I) Total comprehensive income - - - - 4,848,758,041.57 4,848,758,041.57
(II) Owners' contributions and reduction in capital - 29,958,332.40 1,538,486,901.95 - - (1,508,528,569.55)
(III) Profit distribution - - - - (6,430,241,489.00) (6,430,241,489.00)
III. Closing Balance of the Current Period 9,233,198,326.00 3,879,711,222.49 1,848,531,198.07 4,715,460,312.00 42,899,282,505.06 58,879,121,167.48
Amount for the first half of 2024
Item
Share capital Capital reserves Less: Treasury share Surplus reserve Retained earnings Total owners' equity
I. Opening Balance of the Current Period 9,330,600,931.00 5,776,371,174.04 2,737,987,226.55 4,715,460,312.00 43,150,159,133.80 60,234,604,324.29
II. Increase or Decrease in the Current Period - 613,640,640.99 (87,662,344.50) - (4,161,456,864.38) (3,460,153,878.89)
(I) Total comprehensive income - - - - 4,236,083,973.52 4,236,083,973.52
(II) Owners' contributions and reduction in capital - 613,640,640.99 - - - 613,640,640.99
(III) Profit distribution - - (87,662,344.50) - (8,397,540,837.90) (8,309,878,493.40)
III. Closing Balance of the Current Period 9,330,600,931.00 6,390,011,815.03 2,650,324,882.05 4,715,460,312.00 38,988,702,269.42 56,774,450,445.40
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
I. Basic information about the Company
Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as "Company" or "the Company" or
"Hikvision"), is a Sino-foreign equity joint venture company, formerly known as "Hangzhou Hikvision Digital Technology
Ltd", established on November 30, 2001 in Hangzhou upon the approval letter of Hangzhou High-tech No. 604 [2001]
issued by Hangzhou High-tech Industrial Development Zone Management Committee. On June 25, 2008, with approval
of document No. 598 [2008] issued by the MOFCOM (The Ministry of Commerce of the People's Republic of China), the
Company was renamed as "Hangzhou Hikvision Digital Technology Co., Ltd.", headquartered in Hangzhou. On May 28,
The main business scope of the Company and its subsidiaries (hereinafter referred to as "the Group") include
manufacturing and selling security equipment, network equipment, and smart devices; manufacturing and wholesaling
automotive parts and accessories; selling electronic products; providing construction engineering services; technical
services, technology development, technical consulting, software development, information system integration services,
data processing and storage support services, etc.
The Company's and consolidated financial reports were approved for issuance by the 6th meeting of the 6th session of the
Board of Directors of the Company on August 1, 2025.
II. Basis of preparation of financial statements
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises ("ASBE") and relevant provisions issued by
the Ministry of Finance ("MoF"). In addition, the Group has disclosed relevant financial information in accordance with
Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 － General
Provisions on Financial Reporting (revised in 2023).
Going concern
The Group has evaluated its going concern for 12 months going forward starting from June 30, 2025, and there is no factor
that may cast significant doubt on the entity's ability to continue as a going concern. Therefore, the financial statements
have been prepared on a going concern basis.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Bookkeeping base and valuation principles
The Group measures the accounting elements in accordance with the accrual accounting basis. Except certain financial
instruments are measured by fair value, these financial statements are prepared in accordance with the measurements basis
of historical costs. If the asset decreases in value, the provision for impairment of assets should be made according to
relevant regulations.
According to the historical cost measurement, the assets shall be measured as per the amount of cash or cash equivalent
paid at the time of purchase, or the fair value of consideration paid for the purchase of such assets. The liabilities shall be
measured in accordance with the amount of funds or assets actually received when undertaking current obligations, or the
contract amount when undertaking the current obligations, or the amount of cash or cash equivalents required for paying
back the debts in daily activities.
The fair value is a price received by the market participants from selling asset or transferring liability during orderly
transaction at the measurement date. No matter the fair value is observable or estimated by using valuation technique, the
measured and disclosed fair value in the financial statement shall be determined on this basis.
When measuring non-financial assets at fair value, the assets shall be measured considering the ability of market
participants to use the assets for optimal use to generate economic benefits, or to sell the assets to other market participants
to use the assets for optimal use to generate economic benefits.
For the financial assets measured with transaction price at the initial recognition, and the use of valuation techniques
involving unobservable inputs in the subsequent fair value measurement, the valuation technique is corrected in the
valuation process in order to make the initial recognition results confirmed by valuation techniques equal to the transaction
price.
Based on the observable extent of the input value of the fair value, and the importance of such input value to the fair value
measurement, the fair value measurement is divided into three levels:
 Level 1: The input value is the unadjusted offer of the same assets or liabilities on active market acquired on
measurement date;
 Level 2: The input value is the input value of relevant assets or liabilities observable directly or indirectly in addition
to level 1 input value;
 Level 3: The input value is the non-observable input value of relevant assets or liabilities.
III. Significant accounting policies and accounting estimates
Specific Accounting Policies and Accounting Estimates Disclosure:
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The Group has established specific accounting policies and estimates based on the actual production and operational
characteristics, targeting the determination methods and selection basis for the materiality standard, provision for credit
losses on accounts receivable, inventory write-down, fixed asset depreciation, and revenue recognition. The important
judgments and accounting estimates applied by the Group in recognizing significant accounting policies, as well as their
key assumptions, are detailed in Note Ⅲ (35) of the financial statements.
The financial statements of the Company have been prepared in accordance with ASBE, and present the Company's and
consolidated financial position as of June 30, 2025, the Company's and consolidated results of operations, the Company's
and consolidated changes in shareholders' equity, and the Company's and consolidated cash flows for the first half of 2025
truly and completely.
The Group has adopted the calendar year as its accounting year from January 1 to December 31 each year.
The business cycle refers to the period from purchase of assets used for processing to realization of cash or cash equivalents.
The Group's business cycle is usually 12 months.
Renminbi ("RMB") is the currency in the primary economic environments in which the Company and its domestic
subsidiaries are operated. The Company and its domestic subsidiaries take RMB as their functional currency. Overseas
subsidiaries of the Company determine their functional currency on the basis of the primary economic environment in
which it operates. The Group adopts RMB to prepare its financial statements.
Item Materiality Criteria
Significant single-item receivables with bad debt provision Single amount accounts for 10% of accounts receivable balance
Significant single-item contract assets with bad debt provision Single amount accounts for 10% of contract asset balance
Single amount of investment of construction in progress accounts for
Significant construction in progress
Significant accounts payable, other payables, and contract Accounts payable, other payables, and contract liabilities aged more
liabilities aged over 1 year than one year account for 5% of the balance of liabilities
Minority interests representing 10% of consolidated shareholders'
Significant non-wholly owned subsidiaries
equity at the end of the reporting period
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Investment income of individual joint ventures/associates accounts for
Significant joint ventures or associates
equity investment in the enterprise accounts for 10% of the total
consolidated assets
Cash received or paid in connection with significant The amount of cash inflow or outflow from a single investing activity
investment activities accounts for 10% of cash inflow or outflow from investing activities
Business combinations are divided into those under common control and those not under common control.
A business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and
that control is not transitory.
Assets and liabilities obtained shall be measured at their respective book value as recorded by the combining entities at
the date of the combination. The difference between the book value of the net assets obtained and the book value of the
consideration paid for the combination is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are incurred.
A business combination not involving enterprises under common control is a business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred
or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree. If a business combination
not under the common control is realized in stages through multiple transactions, the cost of the combination is the sum
of the consideration paid on the purchase date and the fair value of the equity of the purchase already held before the
purchase date on the purchase date. The intermediary expenses incurred by the acquirer in respect of auditing, legal
services, valuation and consultancy services, etc. and other associated administrative expenses attributable to the business
combination are recognized in profit or loss when they are incurred.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The acquiree's identifiable assets, liabilities and contingent liabilities, acquired by the acquirer in a business combination,
that meet the recognition criteria shall be measured at fair value at the acquisition date.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the
difference is treated as an asset and recognized as goodwill, which is measured at cost on initial recognition. Where the
cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer
firstly reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities
and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the
acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference
immediately into profit or loss for the current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is presented
separately in the consolidated financial statements.
Control right means that an investor may control an investee; the investor may participate in relevant activities of the
investee to obtain variable rewards and also be able to use the control rights for the investee to influence its amount of
returns. The Group will re-evaluate, if the change of the relevant facts and circumstances leading to the change of the
relevant elements involved in the above definition of control.
The scope of consolidated financial statements shall be confirmed based on the control.
The merger of subsidiary starts from the Group obtaining the control power of the subsidiary, and terminates when the
Group loses the control power of the subsidiary.
As for subsidiaries disposed by the Group, operating results and cash flows prior to the disposal date (the date of losing
control right) have been properly included in the consolidated profit statement and consolidated cash flow statement.
For a subsidiary acquired through a business combination not involving enterprises under common control, the operating
results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income
statement and consolidated statement of cash flows.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business
combination involving enterprises under common control are included in the Group's scope of consolidation as if they had
been included in the scope of consolidation from the date when they first came under the common control of the actual
controlling party. Their operating results and cash flows from the beginning of the earliest reporting period are included
in the consolidated income statement and consolidated statement of cash flows, as appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the
uniform accounting policies and accounting periods set out by the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority interests and presented as
"minority equity" in the consolidated balance sheet. The portion of net profits or losses of subsidiaries for the period
attributable to minority interests is presented as "minority interests" in the consolidated income statement below the "net
profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority
shareholders' portion of the opening balance of owners' equity of the subsidiary, the excess amount is still allocated against
minority interests.
Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the loss of control over the
subsidiary is accounted for as equity transactions. The book value of the total owners' equity attributable to owner of the
Company and minority equity are adjusted to reflect the changes in their relative interests in the subsidiary. The difference
between the amount by which the minority interests are adjusted and the fair value of the consideration paid or received
is adjusted to capital reserve under owners' equity. If the capital reserve is not sufficient to absorb the difference, the excess
is adjusted against retained earnings.
In the case that the equity of the acquiree is obtained through multiple deals in stages to finally form the business
combination not under the common control, the business combination shall be handled differently based on whether it is
"package deal": where it is package deal, the Company accounts each deal as a deal to obtain the control. If the deal is not
a "package deal", a deal where the control is obtained on the acquisition date will be subject to accounting. The acquiree's
equity held before the acquisition date will be re-measured based on the fair value of the equity on the acquisition date
and the difference between the fair value and book value will be included in the profit or loss in the current period. If the
acquiree's equity held before the acquisition date involves any changes in the other comprehensive income or in any other
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
owner's equity accounted by the equity method, then it is transferred to income for the period in which it belongs at the
date of purchase.
Joint arrangements include joint operation and joint ventures. Such classification is defined based on the rights and
obligations of the joint parties in the joint arrangement, taking into account the structure and legal form of such
arrangement and also the contractual provisions.
The Groups investment in any joint venture is accounted by the equity method. See the details in Note (III) "18.3.2 Long-
term equity investment accounted under the equity method."
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are the Group's
short-term (Generally refers to due within three months from the purchase date), highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
A foreign currency transaction is recorded, on initial recognition, by applying an exchange rate that approximates the
actual spot exchange rate on the date of transaction; The exchange rate that approximates the actual spot exchange rate on
the date of transaction is calculated according to the middle price of market exchange rate at the beginning of the month
in which the transaction happened.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the
balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the
balance sheet date and those on initial recognition or at the previous balance sheet date are recognized in profit or loss for
the period, except for exchange differences related to a specific-purpose borrowing denominated in foreign currency that
qualifies for capitalization are capitalized as part of the cost of the qualifying asset during the capitalization period.
When the consolidated financial statements include foreign operation(s), if there is foreign currency monetary item
constituting a net investment in a foreign operation, exchange difference arising from changes in exchange rates are
recognized as "exchange differences arising on conversion of financial statements denominated in foreign currencies" in
other comprehensive income, and in profit and loss for the period upon disposal of the foreign operation.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Foreign currency non-monetary items measured at historical cost are converted to the amounts in functional currency at
the spot exchange rates on the dates of the transactions.
For the purpose of preparing the consolidated financial statements, financial statements of a foreign operation are
converted from the foreign currency into RMB using the following method: assets and liabilities on the balance sheet are
translated at the spot exchange rate prevailing at the balance sheet date; shareholders' equity items are converted at the
spot exchange rates at the dates on which such items arose; all items in the income statement as well as items reflecting
the distribution of profits are translated at exchange rates that approximate the actual spot exchange rates on the dates of
the transactions; The difference between the converted assets and the aggregate of liabilities and shareholders' equity items
is recognized into other comprehensive income and shareholders' equity.
The foreign currency cash flows and cash flows of overseas subsidiaries adopt the exchange rate similar to the spot rate at
the date of cash flows for conversion. The affected amount of cash and cash equivalents due to the change of exchange
rate, as an adjustment item, shall be separately listed as "the impact of cash and cash equivalents due to the change of
exchange rate" in the cash flow statement.
The closing balances of the prior period and the actual amount of the prior period are presented at the converted amounts
of the prior year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a foreign operation due to
disposal of certain interest in it or other reasons, the Group transfers the accumulated exchange differences arising on
conversion of financial statements of this foreign operation attributable to the owners' equity of the Company and presented
under shareholders' equity, to profit or loss in the period in which the disposal occurs.
In case of a disposal or other reason that does not result in the Group losing control over a foreign operation, but only a
decrease in proportion of overseas business interests, the proportionate share of accumulated exchange differences arising
on conversion of financial statements are re-attributed to minority interests and are not recognized in profit and loss under
current period. For partial disposals of equity interests in foreign operations, which are associates or joint ventures, the
proportionate shares of the accumulated exchange differences arising on conversion of financial statements of foreign
operations are reclassified to profit or loss under current period.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The Group recognizes a financial asset or a financial liability when it becomes a party to a contract of financial instrument.
For the purchase or sale of a financial asset in conventional manner, the asset to be received and the liability to be assumed
will be recognized on the trading day, or the asset sold will be derecognized on the trading day.
Financial assets and financial liabilities are measured by fair value upon initial recognition (the method of determining the
fair value of financial assets and financial liabilities is described in the related disclosure of the basis of accounting and
valuation principles in note (ii)). For financial assets and financial liabilities at fair value through profit and loss, the
relevant trading costs will be directly charged to profit and loss of the current period. For other types of financial assets
and financial liabilities, the relevant trading costs will be booked into the initial recognition amount. Upon initial
recognition of accounts receivable which have no material financing components or have not taken into consideration the
financing components in contracts with a term not exceeding one year according to Accounting Standards for Business
Enterprise No. 14 – Revenue ("Revenue Standard"), such initial amount is measured by the transaction price as defined
under the Revenue Standard.
Effective interest rate method refers to the method of calculating the amortized cost of financial asset or financial liability
and apportioning interest income or interest expenses to each accounting period.
Effective interest rate refers to the interest rate used for discounting the estimated future cash flows of a financial asset or
a financial liability for an expected subsisting period into the account balance of the financial asset or the amortized cost
of the financial liability. When determining the effective interest rate, the expected cash flows are estimated on the basis
of considering all contractual terms of the financial asset or financial liability (such as early repayment, extended term,
call option or other similar option) but without considering the expected credit loss.
The amortized cost of a financial asset or a financial liability refers to the initial recognition amount of such financial asset
or financial liability, less the repaid amount of principal, plus or minus the accrued amortized amount calculated by
amortization of the difference between the initial recognition amount and the amount on maturity by using the effective
interest rate method, and then deducts the accrued provision for losses (only applicable to financial assets).
After initial recognition, the Group will adopt amortized cost, fair value through other comprehensive income, or fair value
through profit and loss for subsequent measurement depending on different categories of financial assets.
The Group will classify a financial asset into a financial asset measured at amortized cost if the contractual terms of the
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding and the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows. Financial assets classified by the Group as financial asset measured by amortized
cost include cash and cash equivalents, notes receivables and accounts receivable, other receivables and long-term
receivables and other non-current assets.
The Group will classify a financial asset into a financial asset measured by fair value through other comprehensive income
if the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding, and the financial asset is held within a business model whose objective
is achieved by both collecting contractual cash flows and selling the financial assets. This category of financial assets
mainly includes financial assets with a maturity of more than one year from the date of acquisition and which are presented
under other debt investments, financial assets maturing within one year (inclusive) from the balance sheet date and which
are presented under non-current assets maturing within one year, as well as the notes receivables classified as fair value at
the time of acquisition and their changes are included in other comprehensive income are listed in the receivables for
financing, and for those have acquisition period within one year (including one year) are listed in other current assets.
At the time of initial recognition, the Group may, on the basis of a single financial asset, irrevocably designate an
investment in an equity instrument held for non-trading purpose recognized or without consideration in a business merger
not under common control as a financial asset at fair value through other comprehensive income. This type of financial
assets is presented as investment in other equity instruments.
Financial assets which have satisfied one of the following conditions indicate that such financial assets are held for trading
purpose by the Group:
 The purpose of acquiring the relevant financial asset is mainly for sale in recent period.
 At the time of initial recognition, the relevant financial asset is a part of an identifiable portfolio of financial
instruments under collective management, and there is objective evidence showing a recent and actual existence of
short-term profitable mode.
 The relevant financial assets are derivatives.
Financial assets at fair value through profit and loss include financial assets which are classified as financial assets at fair
value through profit and loss and financial assets designated at fair value through profit and loss:
 Financial assets which do not satisfy the conditions of being classified as financial assets measured at amortized cost
or as financial assets at fair value through other comprehensive income, they will be classified as financial assets at
fair value through profit and loss.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
 At the time of initial recognition, in order to eliminate or substantially reduce mismatch in accounting, the Group
may irrevocably designate a financial asset as a financial asset measured at fair value with changes through profit
and loss.
Financial assets measured at fair value with changes recognized in profit or loss, other than derivative financial assets, are
presented as trading financial assets. If such financial assets have a maturity of more than one year from the balance sheet
date (or without a fixed maturity) and which are expected to be held for more than one year, they will be presented under
other non-current financial assets.
Financial assets measured at amortized cost adopt the effective interest rate method for subsequent measurement according
to amortized cost, the profit or loss when impairment occurs or upon derecognition will be accounted in profit and loss of
the current period.
The Group recognizes interest income by using effective interest rate method for financial assets measured at amortized
cost. The Group determines interest income by multiplying the balance of account balance of financial assets with the
effective interest rate except under the following circumstances:
 For acquired or generated financial assets which incurred credit impairment already, their interest income will be
determined by using the amortized cost of such financial asset calculated with the credit adjusted effective interest
rate.
 For acquired or generated financial assets which have not incurred credit impairment but incur credit impairment in
the subsequent period, the Group will determine their interest income by using the amortized cost of such financial
assets multiplied with the effective interest rate in the subsequent period. If such financial asset ceases to have credit
impairment due to improvement in credit risk in the subsequent period, then the Group should change to multiply the
effective interest rate with the balance of account balance of such financial asset instead to determine the interest
income.
The impairment loss or profit, or interest income calculated by using the effective interest rate method, relating to financial
asset at fair value through other comprehensive income should be accounted in the profit and loss of the current period,
and other changes in fair value of such financial assets will be accounted in other comprehensive income. The amount
charged by such financial asset to the profit and loss of each period is deemed to be equal to the amount which has been
measured by amortized cost and charged to the profit and loss of each period. Upon derecognition of such financial asset,
the accumulated profit or loss previously charged to other comprehensive income will be reversed from other
comprehensive income and charged to profit and loss of the current period.
For non-trading equity instrument investment designated at fair value through other comprehensive income, its changes
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
in fair value will be recognized in other comprehensive income. Upon derecognition of such financial asset, the
accumulated profit or loss charged to other comprehensive income will be reversed from other comprehensive income and
charged to retained earnings. During the period when such investment in equity instruments for non-trading purpose are
held by the Group, the right to receive dividends by the Group has been established, and economic benefits related to
dividends are likely to flow into the Group, and if the amount of dividends may be measured reliably, the dividend income
is recognized and accounted in the profit and loss of the current period.
For financial asset at fair value through profit and loss, subsequent measurement will be calculated at fair value, the profit
or loss arising from changes in fair value and the dividend and interest income relating to such financial asset will be
accounted in the profit and loss of the current period.
For financial assets measured at amortized cost, financial assets that are classified as financial asset at fair value through
other comprehensive income, lease receivables and contract assets, the Group will handle impairment on the basis of
expected credit loss and recognize loss provision.
The Group's consideration of contract assets, notes receivable and accounts receivable that are generated by transactions
regulated by revenue standards and do not contain significant financing components or that do not consider financing
components in contracts that are not more than one year old, as well as those operating lease receivables formed from
transactions that are defined by the Accounting Standards for Business Enterprises No. 21-Leasing, the loss reserve shall
be measured based on the amount of the expected credit loss during the entire duration.
For other financial instruments, other than acquired or generated financial assets which have incurred credit impairment
already, the Group will assess on each balance sheet date the changes in credit risk of the relevant financial instruments
since initial recognition. If the credit risk of such financial asset has significantly increased after initial recognition, the
Group will calculate its loss provision based on the amount equivalent to the expected credit loss for the entire subsisting
period. If the credit risk of such financial asset since initial recognition has not increased significantly, the Group will
calculate its loss provision according to the expected credit loss amount of such financial asset for the next 12 months.
The amount of increase or reversal in the provision for credit loss, apart from financial assets classified as financial asset
at fair value through other comprehensive income, is accounted in the profit and loss of the current period. For financial
asset classified as measured at fair value through other comprehensive income, the Group will recognize its credit loss
provision in other comprehensive income and charged the impairment loss or gain to the profit and loss of the current
period, and will not decrease the book value of such financial asset presented in the balance sheet.
The Group has calculated the loss provision equivalent to the expected credit loss amount for the entire subsisting period
of the financial instrument in the preceding accounting period, but at the balance sheet date of the current period, such
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
financial instrument is no longer under the condition of significant increase in credit risk since initial recognition, the
Group calculates the loss provision for such financial instrument on the balance sheet date of the current period according
to an amount equivalent to the expected credit loss for the next 12 months, and the resulting loss provision reversal amount
will be counted as impairment gain and booked into the profit and loss of the current period.
The Group uses available and reasonable forward-looking information with justification, by comparing the default risk of
the financial instrument at the balance sheet date with the default risk on the initial recognition date, to confirm whether
the credit risk of the financial instrument has significantly increased after initial recognition.
The Group considers the following factors when assessing whether the credit risk has significantly increased:
(1) Whether a significant change has been caused to the internal price indicator due to changes in credit risk.
(2) Whether the external credit rating of financial instrument has actual or expected significant changes.
(3) Whether the actual or expected internal credit rating of the debtor has been downgraded.
(4) Whether adverse changes have occurred in the business, finance or economic conditions which are expected to cause
significant changes in the capability of the debtor to perform debt repayment obligations.
(5) Whether actual or expected significant changes have occurred in the operating results of the debtor.
(6) Whether significant adverse changes have occurred in the supervision, economic or technical environment in which
the debtor operates.
(7) Whether significant changes have occurred in the value of security pledged for the debt or the quality of guarantee
or credit enhancement provided by third parties. Such changes are expected to reduce the debtor's economic
motivation of repayment according to contractual term or influence the probability of default.
(8) Whether significant changes have occurred in the economic motivation which will lower the expectation of
repayment by the borrower according to the contractual term.
(9) Whether significant changes have occurred in the expected performance and repayment behavior of the debtor.
Whether or not the credit risks increase significantly after the foregoing assessments, if any contractual payment for any
financial instrument that overdue for over (including) 30 days, it indicates the credit risks of that financial instrument have
increased significantly.
On the balance sheet date, if the Group determines that the financial instrument only carries low credit risks, then it assumes
that the credit risks of the financial instrument have not increased significantly since the initial recognition. If the risk of
default on financial instruments is low, the borrower is highly able to perform its contractual cash flow obligations in the
short term, and even if the economic situation and operating environment are adversely changed over a long period of time
but not necessarily reducing the borrower's performance of its contractual cash obligations, the financial instrument is
considered as having a lower credit risk.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
When one or more events which will have adverse effect on the expected future cash flows from the financial asset of the
Group have occurred, such financial asset will become a financial asset which have incurred credit impairment already.
The evidence of credit impairment occurred in a financial asset includes the following observable information:
(1) Material financial difficulties have occurred in the issuer or debtor;
(2) Breach of contract by the debtor, such as default or overdue for the payment of interest or repayment of principal;
(3) Due to economic or contractual considerations relating to financial difficulties of the debtor, the creditor has granted
concession to the debtor under no other circumstances;
(4) The debtor is likely to go bankrupt or carry out other financial restructuring;
(5) The financial difficulties of the issuer or debtor have caused the disappearance of the active market for the financial
asset;
(6) The purchase or generation of a financial asset at a large discount, such discount reflects the fact of occurrence of
credit loss.
The Group confirms the expected credit loss of the relevant financial instrument according to the following method:
 In respect of financial assets and lease receivables, the credit loss is the present value of the difference between the
contractual cash flow that the group should receive and the cash flow that it expects to receive.
 In respect of financial assets with credit impairment on the balance sheet date but they are not acquired or generated
financial assets with credit impairment, the credit loss represents the difference between the balance of the account
balance of such financial asset and the present value of the estimated future cash flows discounted by the original
effective interest rate.
The factors reflected by the method used for calculating expected credit loss of financial instruments by the Group include:
an unbiased weighted average amount determined by assessing a series of probable outcomes; time value of currency;
reasonable and justifiable information relating to past events, prevailing conditions and forecast of future economic
conditions obtained on the balance sheet date without incurring unnecessary additional cost or effort.
When the Group ceases to have reasonable expectation on the possible collection of all or part of the contractual cash
flows from the financial asset, the account balance of such financial asset will be written off directly. Such a write-off
constitutes a derecognition of the relevant financial asset.
A financial asset that fulfills one of the following conditions will be de-recognized: (1) termination of contractual rights
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
to receive cash flows from the financial asset; (2) upon transfer of such financial asset and transfer of substantially all the
risks and rewards in respect of the ownership of such financial asset to the transferee; (3) upon transfer of such financial
asset, though the Group has not transferred nor retained substantially all the risks and rewards in respect of the ownership
of such financial asset, yet it has not retained the control over such financial asset.
If the Group has not transferred nor retained substantially all the risks and rewards in respect of the ownership of such
financial asset, and has retained the control over such financial asset, then such transferred financial asset will continue to
be recognized, and the relevant liabilities will continue to be recognized, according to the level of the Group's continuous
involvement in such transferred financial asset. The relevant liabilities will be measured by the Group according to the
following method:
 If the transferred financial asset is measured by amortized cost, the book value of the relevant liabilities is equivalent
to the book value of the transferred asset of continuous involvement less the amortized cost of the rights retained by
the Group (if the Group has retained the relevant rights due to transfer of the financial asset) and plus the amortized
cost of the obligations undertaken by the Group (if the Group has undertaken the relevant obligations due to transfer
of the financial asset), and the relevant liabilities are not designated as financial liabilities at fair value through profit
and loss of the current period.
 If the transferred financial asset is measured by fair value, the book value of the relevant liabilities is equivalent to
the book value of the transferred asset of continuous involvement less the fair value of the rights retained by the
Group (if the Group has retained the relevant rights due to transfer of the financial asset) and plus the fair value of
the obligations undertaken by the Group (if the Group has undertaken the relevant obligations due to transfer of the
financial asset), and the fair value of the rights and obligations shall be measured at the fair value on a separate basis.
For full transfer, which satisfies the conditions of derecognition, of the financial assets, the difference between the sum of
the book value of the transferred financial assets as at the date of derecognition and the consideration received from such
transfer and the accumulated amount of change in fair value originally included in other comprehensive income, which
corresponds to the amount in respect of derecognition, shall be recognized in the profit and loss for the current period. If
the transfer of the financial assets by the Group is designated as investment in equity instrument held for non-trading
purpose measured at fair value through other comprehensive income, the accumulated gains or losses previously included
in other comprehensive income shall be transferred out from other comprehensive income and be included in retained
earnings.
For transfer in part, which satisfies the conditions of derecognition, of the financial assets, the book value of the entire
financial assets before the transfer shall be shared between the derecognized portion and the continuous recognition portion
at their respective relative fair value on the date of transfer, and the difference between the sum of the consideration
received from derecognition and the accumulated amount of change in fair value originally included in other
comprehensive income, which corresponds to the amount in respect of derecognition, and the book value of the
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
derecognized portion as at the date of derecognition shall be included in the profit and loss of the current period. If the
transfer of the financial assets by the Group is designated as investment in equity instrument for non-trading purpose
measured at fair value through other comprehensive income, the accumulated gains or losses previously included in other
comprehensive income shall be transferred out from other comprehensive income and be included in retained earnings.
For full transfer, which does not satisfy the conditions of derecognition, of the financial assets, the Group will continue to
recognize the entire financial assets transferred and the consideration received as a result of the asset transfer is recognized
as a liability when received.
Pursuant to the contractual terms of the issued financial instruments and the substantive economic condition as reflected,
but not in legal terms only, combined with the definitions of financial liabilities and equity instruments, the Group has
classified such financial instruments or the components thereof as financial liabilities or equity instruments upon initial
recognition.
Financial liabilities are classified into financial liabilities at fair value through profit and loss of the current period and
other financial liabilities upon initial recognition.
Financial liabilities at fair value through profit and loss of the current period comprise of financial liabilities held for
trading purpose (including derivatives of financial liabilities) and financial liabilities designated as measured at fair value
through profit and loss of the current period. Except for derivatives of financial liabilities, which are presented separately,
financial liabilities at fair value through profit and loss of the current period are presented as financial liabilities held for
trading.
Financial liabilities that fulfill one of the following conditions suggest that the Group assumes such financial liabilities for
trading purpose:
 Assumption of the relevant financial liabilities is mainly for the purpose of the recent repurchases.
 The relevant financial liabilities, upon initial recognition, are part of a portfolio of identifiable financial instruments
under centralized management, and available objective evidence shows the recent and actual existence of a short-
term profit-making model.
 The relevant financial liabilities are derivatives.
Financial liabilities can be designated, upon initial recognition, by the Group as financial liabilities at fair value through
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
profit and loss of the current period, provided that they have satisfied one of the following conditions: (1) such designation
can eliminate or substantially reduce accounting mismatches; (2) managing and evaluating the performance of portfolios
of financial liabilities, or portfolios of financial assets and financial liabilities, on fair value basis and reporting internally
to key personnel of the Group on this basis in accordance with the risk management or investment strategies specified in
formal written documents of the Group; (3) hybrid contracts, with embedded derivatives, have satisfied the conditions.
Financial liabilities held for trading purpose use fair value for subsequent measurement, gains or losses arise from changes
in fair value and the dividends or interest expenses relating to such financial liabilities are accounted in the profit and loss
of the current period.
Excluding transfer of financial assets not complying with derecognition conditions, or financial liabilities as a result of
continuous involvement in transferred financial assets, as well as the financial guarantee contracts, the other financial
liabilities will be classified as financial liabilities measured at amortized cost, subsequent measurement will be based on
amortized cost, gains or losses on derecognition or amortization will be accounted in the profit and loss of the current
period.
If the Group and the counterparty have revised or renegotiated the contract, this has not resulted in the derecognition of
financial liabilities measured at amortized cost for subsequent measurement, but has caused changes in the contractual
cash flows, then the Group should recalculate the book value of such financial liabilities, and the relevant gains or losses
shall be accounted in the profit and loss of the current period. The recalculated book value of such financial liabilities will
be determined by the Group by discounting the cash flows from the renegotiated or revised contract with the original effect
interest rate of the financial liabilities. All costs or expenses incurred in the revision or renegotiation of the contract will
be reflected in the adjusted book value of financial liabilities after such revision, and will be amortized during the
remaining period of the revised financial liabilities.
When the existing obligations of a financial liability have been wholly or partially discharged, such financial liability or
such part of it will be derecognized. When the Group (as borrower) and the lender enter into an agreement to undertake
new financial liabilities for replacing the original financial liabilities, if substantive difference exists in the contractual
terms between the new financial liabilities and the original financial liabilities, the Group should derecognize the original
financial liabilities while at the same time recognizes the new financial liabilities.
When a financial liability is wholly or partially derecognized, the difference between the book value of the derecognized
portion and the consideration paid (including non-cash asset transferred out or new financial liabilities undertaken) will
be accounted in the profit and loss of the current period.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Equity instrument refers to a contract which can prove the ownership of remainder interest in assets after deducting all
liabilities of the Group. The Group issues (including refinances), repurchases, sells or cancels equity instruments for
treatment of changes in equity. The Group will not recognize changes in the fair value of equity instruments. Trading
expenses relating to equity transactions will be deducted from equity.
The Group's distribution to holder of equity instrument is treated as profit distribution, the share dividends paid out will
not affect the total equity of shareholders.
Derivatives include foreign exchange forward contract, foreign exchange option contract and interest rate swap contract,
etc. Derivatives are measured at fair value initially on the date of signing the relevant contract and will be measured at fair
value for subsequent measurement.
When the Group has legal right to offset the recognized financial assets and financial liabilities, and such legal right is
enforceable currently, while at the same time the Group plans to perform netting settlement, or to liquidate the financial
asset and repay the financial liability at the same time, the amount after offsetting between the financial asset and financial
liability will be presented in the balance sheet. Save as said above, the financial asset and financial liability are presented
separately in the balance sheet without offsetting each other.
When the Group changes its business model for managing financial assets, all affected underlying financial assets will be
reclassified. All financial liabilities are not reclassified.
The Group reclassifies financial assets and applies the prospective application method for relevant accounting treatment
from the date of reclassification (i.e., the first day of the first reporting period after the change in the business model that
led to the reclassification of financial assets).
If the Group reclassifies a financial asset measured at amortized cost to a financial asset at fair value through other
comprehensive income, it is measured at the fair value of the financial asset at the date of reclassification. The difference
between the original book value and the fair value is recognized in other comprehensive income.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Except for the notes receivable for which individual credit risk assessments are conducted, the Group classifies notes
receivable into different portfolios based on the nature of the acceptor.
Portfolio Categories Determination basis
Bank acceptance bill Notes receivable with acceptors are banks
Non-bank acceptance bill Notes receivable with acceptors are non-banks
The Group separately assesses the credit risk of the notes receivable with a single significant amount and the debtor with
severe financial difficulties
Except for the accounts receivable for which individual credit risk assessments are conducted, the Group categorizes
accounts receivable into Portfolio A, Portfolio B and Portfolio C based on shared risk characteristics. Common credit risk
characteristics adopted by the Group include the geographical location and business object.
For long-term receivables, the common credit risk profile adopted by the Group includes business objects.
The Group uses the ageing as a credit risk characteristics, and use impairment matrix to determine the credit losses of its
accounts receivable and long-term receivables related to the financial lease and installment collection business. The ageing
is calculated from the end of the credit period. The ageing is calculated on a continuous basis when the terms and conditions
of accounts receivables and long-term receivables are modified but do not result in derecognition of them.
The Group assesses the credit risk of accounts receivable with significant individual amounts and significant financial
difficulties of debtors and financial lease receivables and installment receivables in long-term receivables individually
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Except for the receivables for financing for which individual credit risk assessments are conducted, the rest of receivables
for financing includes bank acceptance bills and certificates of accounts receivable claims. Given the low likelihood of
incurring significant losses due to default, the Group considers that the bank acceptance bills and certificates of accounts
receivable claims it holds do not pose significant credit risk.
This Group individually assesses the credit risk of financing of accounts receivable where the amount is material and the
debtor has encountered severe financial difficulties.
Except for other receivables for which individual credit risk assessments have been conducted, the Group categorizes other
receivables into different groups by their nature, and determines credit losses on a portfolio basis.
The Group individually assesses the credit risk of other receivables that are material in amount and where the debtor has
encountered severe financial difficulties.
consumable items and packaging materials
The Group's inventory mainly includes finished products, products in process, raw materials and contract performance
costs. Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.
The actual cost of inventories upon delivery is calculated using the moving weighted average method.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The perpetual inventory system is maintained for stock system.
Packaging materials and low cost and short-lived consumable items are amortized using the immediate write-off method.
At the balance sheet date, inventory is measured at the lower of cost or net realizable value. When the net realizable
value is lower than the cost, the inventory falling price reserves is withdrawn.
Net realizable value is the amount of the estimated selling price of inventory in day-to-day activities less the estimated
costs to be incurred at completion, estimated selling expenses and related taxes. The determination of net realizable value
of inventories is based on firm evidence obtained, taking into account the purpose for which the inventories are held and
the effect of events after the balance sheet date.
After the provision for inventory depreciation, if the factors affecting the previous reduction of inventory value have
disappeared, resulting in the net realizable value of the inventory being higher than its book value, the amount of the
original provision for inventory depreciation shall be reversed, and the amount of the reversal shall be included in the
current profit or loss.
determining the net realizable value of different categories of inventories
The Group makes provision for inventory falling price reserves by inventory category for inventories with a large quantity
and low unit price. For inventories manufactured and sold in the same region, having the same or similar use or purpose,
and difficult to measure separately from other items, provision for inventory depreciation shall be made on a consolidated
basis. The Group makes provision for inventory falling price reserves according to the nature and status of inventories.
Contract assets refer to the Group's right to consideration in exchange for goods or services that the Group has transferred
to a customer when that right is conditioned on something other than the passage of time. The Group's unconditional (i.e.,
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
depending on the passage of time only) right to receive consideration from the customer is separately presented as
receivables.
Consistent with accounts receivable, based on common risk characteristics, the Group provides for credit losses on a
portfolio basis and the common credit risk characteristics adopted include the geographical location and business object.
The Group individually assesses the credit risk of contract assets that are material in amount and where the debtor has
encountered significant financial difficulties.
Control is the power to govern an entity through participating in relevant activities of the investee; the investor is able to
obtain variable benefits from its activities, and at same time, to use the control rights on the investee to influence the
amount of returns. Joint control means that joint control for certain arrangement in accordance with relevant agreements;
activities relevant to the arrangement cannot be decided until obtaining the unanimous consent of parties sharing control
right. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is
not control or joint control over those policies. When determining whether an investing enterprise is able to exercise
control or significant influence over an investee, the effect of potential voting rights of the investee, such as current
convertible debts, current executable warrants, etc., held by the investing enterprises or other parties shall be considered.
For a long-term equity, investment acquired through a business combination involving enterprises under common control,
the shares of merged party's book value of owners' equity in the final controlling party consolidated financial statements
obtained on the merger date shall be considered as the initial investment cost of long-term equity investment. The
differences between the initial investment cost of long-term equity investment and the paid cash, the transferred non-cash
assets and the book value of the assumed debts are adjusted against the capital surplus; if the capital surplus is not sufficient
to be offset, the remaining balance is adjusted against retained earnings. In the case of issued equity securities treated as
consolidation consideration, share of book value of owner's equity of merged party in the final controlling party
consolidated financial statements is regarded as initial investment cost of long-term equity investments on the date of
consolidation; capital reserve shall be adjusted in accordance with taking total nominal value of issued share as capital
share, the difference between the initial investment cost of long-term equity investments and total book value of issued
shares; In case the capital reserve is not enough for writing down, the retained earnings shall be adjusted.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
For a long-term equity investment acquired through business combination not involving enterprises under common control,
and the merging cost confirmed on the purchased date are regarded as the initial investment cost. In the case that the equity
of the acquiree is obtained through multiple deals in stages to finally form the business combination not under the common
control, the business combination shall be handled differently based on whether it is "package deal": where it is package
deal, the Company accounts each deal as a deal to obtain the control. If the deal is not a "package deal", the sum of the
account balance of the equity investment of the acquiree plus the cost of the new investment shall be used as the initial
investment cost of the long-term equity investment calculated according to the cost method. The equity originally held is
accounted for by the equity method, and the relevant other comprehensive income will not be accounted for the time being.
The intermediate expenses made by the combining party or purchaser for audit, legal service, assessment and other
management related expenses during the business merger should be included into the current profit and loss as it happens.
Long-term equity investment obtained by other means other than long-term equity investment formed by business
combination shall be initially measured at cost.
Long-term equity investments in subsidiaries are accounted for using the cost method in the Company's financial
statements. A subsidiary is an investee that is controlled by the Group.
The long-term equity investment accounted by the cost method shall be measured at its initial investment cost. If there are
additional investments or disinvestments, the long-term equity investment cost shall be adjusted. Income from the
investment in the current period shall be recognized in accordance with the cash dividends or profits declared and issued
by the investee.
Except for investments in associates and joint ventures that are wholly or partly classified as holding assets for sale, the
Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over
which the Group has significant influence and a joint venture is an entity over which the Group can only exercise joint
control along with other investors on the investee's net assets.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of
the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
investment cost. Where the initial investment cost is less than the Group's share of the fair value of the investee's
identifiable net assets at the time of acquisition, the difference is recognized in profit or loss for the period, and the cost of
the long-term equity investment is adjusted accordingly.
Under the equity method, the Group recognizes its share of the net profit or loss and other comprehensive income of the
investee for the period as investment income or loss and comprehensive income for the period, meanwhile, the book value
of the long-term equity investment shall be adjusted; The Group shall accordingly reduce the book value of the long-term
equity investment in terms of the part that shall be enjoyed according to the profit or cash dividends declared by the
invested unit to be distributed; For other changes in the owners' equity of the invested unit other than net profits and losses,
other comprehensive incomes and the profit distribution, the book value of long-term equity investment shall be adjusted
and be included into the capital reserves. The Group shall, on the ground of the fair value of all identifiable assets of the
invested entity when it obtains the investment, recognize the attributable share of the net profits and losses of the invested
entity after it adjusts the net profits of the invested entity. If the accounting policies and accounting periods adopted by the
invested unit are different from those adopted by the Group, the adjustment shall be made for the financial statements of
the invested unit in accordance with the accounting policies and accounting periods of the Group to recognize the
investment income and other comprehensive incomes. For the transaction incurred between the group and associated
enterprises and joint ventures, invested or sold assets don't constitute a business, the part that doesn't achieve internal
transaction profit or loss or belongs to the Group calculated according to the enjoyed ratio will be offset, and the profit or
loss on investment will be confirmed on this basis. But for the unrealized loss arising from the internal transaction between
the Group and the invested unit, if such transaction loss is defined as the impairment loss of the transferred asset, they
cannot be offset.
When the Group determines the net loss of the invested unit that shall be shared, it is necessary to write-down the book
value of the long-term equity investment and other long-term equities substantially constituting the net investment of the
invested unit to zero as a limit. Besides, if the Group is obliged to bear extra loss for the invested unit, it shall be necessary
to determine provisions and record them to current investment loss in compliance with obligations expected to be assumed.
If the invested unit realizes any net profits later, the Group shall, after the amount of its attributable share of profits offsets
its attributable share of the un-confirmed losses, resume recognizing its attributable share of profits.
On disposal of a long-term equity investment, the difference between the proceeds actually received and the book value is
recognized in profit or loss for the period.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others,
or for administrative purposes, and have useful lives of more than one accounting year. A fixed asset is recognized only
when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be
measured reliably. Fixed assets are initially measured at cost.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that
economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured
reliably. Meanwhile the book value of the replaced part is derecognized. Other subsequent expenditures are recognized in
profit or loss in the period in which they are incurred.
A fixed asset is depreciated over its useful life using the straight-line method since the month subsequent to the one in
which it is ready for intended use. The depreciation method, depreciation period, estimated residual value rate and annual
depreciation rate of each category of fixed assets are as follows:
Residual value rate Annual depreciation rate
Class Depreciation method Depreciation period
(%) (%)
Buildings and constructions Straight-line depreciation 20 years 10 4.5
General-purpose equipment Straight-line depreciation 3-5 years 10 18.0-30.0
Special-purpose equipment Straight-line depreciation 3-5 years 10 18.0-30.0
Means of transportation Straight-line depreciation 5 years 10 18.0
Estimated net residual value of a fixed asset is the estimated amount that the Group would currently obtain from disposal
of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition
expected at the end of its useful life.
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal, the
fixed asset is derecognized. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on
disposal of the asset net of the book value and related taxes is recognized in profit or loss for the period.
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at
least once at each financial year-end, and account for any change as a change in an accounting estimate.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures during
the construction period, borrowing costs capitalized before it is ready for intended use and other relevant costs.
Construction in progress is not depreciated.
Construction in progress is transferred to a fixed asset when it is ready for intended use. The standards and time points for
carrying forward various types of projects under construction to fixed assets are as follows:
Item Standards and timing of carry-over as fixed assets
The main construction project and supporting projects have been substantially completed and reached
Buildings and Constructions
a state of practical usability.
Equipment to be installed and Relevant equipment and other supporting facilities have been installed; after debugging, the equipment
commissioned can maintain normal and stable operation for a period of time.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalized is the actual interest
expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before
being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed
under general-purpose borrowings, the Group determines the amount of interest to be capitalized on such borrowings by
applying a capitalization rate to the weighted average of the excess of cumulative expenditures on the asset over the
amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest rates applicable to
the general-purpose borrowings. During the capitalization period, exchange differences related to a specific-purpose
borrowing denominated in foreign currency are all capitalized. Exchange differences in connection with general-purpose
borrowings are recognized in profit or loss in the period in which they are incurred.
Intangible assets include land use right, intellectual property (IP), application software, and franchise, etc.
An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for use, its
original cost is amortized over its estimated useful life using the straight-line method. The amortization method, service
life and net residual value of various intangible assets are shown as follows:
Salvage value
Class Amortization method Service life Determination basis
rate (%)
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Land use right Straight-line method 40 or 50 years Term of use of property rights -
IP Right Straight-line method 5-10 Years Expected economic benefit life -
Application Software Straight-line method 5-10 years Expected economic benefit life -
Franchised operating
Franchise Straight-line method Franchise contract duration -
period
The fees charged by the Group to those who acquire public products and services during the project operation period do
not constitute an unconditional right to receive cash. When the PPP project assets are ready for their intended use, the
difference between the consideration amount of the relevant PPP project assets or the amount of confirmed construction
income and the amount of cash (or other financial assets) that is entitled to receive a determinable amount will be
recognized as intangible assets.
For an intangible asset with a finite useful life, the Group reviews the useful life and amortization method at the end of the
period, and makes adjustments when necessary.
Expenditure during the research phase is recognized as an expense in the period in which it is incurred.
Expenditure during the development phase that meets all of the following conditions at the same time is recognized as
intangible asset. Expenditure during development phase that does not meet the following conditions is recognized in profit
or loss for the period:
(1) It is technically feasible to complete the intangible asset so that it will be available for use or sale;
(2) The Group has the intention to complete the intangible asset and use or sell it;
(3) The Group can demonstrate the ways in which the intangible asset will generate economic benefits, including the
evidence of the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to
be used internally, the usefulness of the intangible asset;
(4) The availability of adequate technical, financial and other resources to complete the development and the ability to
use or sell the intangible asset; and
(5) The expenditure attributable to the intangible asset during its development phase can be reliably measured.
If the expenditures cannot be distinguished between the research phase and development phase, the Group recognizes all
of them in profit or loss for the period. The costs of the intangible assets generated by internal development activities only
include the total expenditure incurred from the time point when the capitalization conditions are available to the point
when the intangible assets are used for their intended purposes; for the expenditure that already becomes an expenditure
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
in the profit and loss statement before the capitalization conditions are available during development of the same intangible
asset, no adjustment will be made.
The aggregate scope of the Group's R & D expenses includes employee compensation for personnel directly engaged in
R & D activities, materials and service fees directly consumed by R & D activities, depreciation expenses and amortization
expenses of intangible assets for equipment and equipment used in R & D activities, rental expenses for R & D sites,
intermediate testing expenses for R & D activities, new product design expenses, and travel, transportation and
communication expenses required for research and test development. The Group uses the passing of feasibility studies and
the completion of R&D project projects after evaluation as the specific criteria for classifying R&D projects into research
and development phases.
The Group assesses at each balance sheet date whether there is any indication that the long-term equity investment, fixed
assets, construction in process, and intangible assets with a finite useful life may be impaired. If there is any indication
that such assets may be impaired, recoverable amounts are estimated for such assets. Intangible assets with indefinite
useful life and intangible assets not yet available for use are tested for impairment annually, irrespective of whether there
is any indication that the assets may be impaired.
Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an
individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. The recoverable
amount is determined by the higher of 1) net amount of fair value of the asset or asset group deducted by the disposal
expenses; or 2) the present value of the expected future cash flows of the asset or asset group.
If the recoverable amount of an asset or an asset group is less than its book value, the deficit is accounted as an impairment
provision and is recognized in profit or loss for the period.
Goodwill impairment test shall be conducted at the end of each year at least. Goodwill impairment test shall be conducted
in accordance with the concerned asset group or asset portfolio. That is to allocate the book value of goodwill to the asset
group or asset portfolio that is expected to benefit from the synergies of the combination in a reasonable way from the date
of purchasing. When recoverable amount of apportion-included asset group or asset portfolio of goodwill is less than book
value of goodwill, impairment loss shall be recognized. Firstly, amount of impairment loss shall be apportioned to the
book value of goodwill of the said asset group or asset portfolio, and then book value of other assets, except for goodwill,
in asset group or asset portfolio shall be abated in proportion.
Once the impairment loss of such assets is recognized, it cannot be reversed in any subsequent period.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Long-term deferred expenses are the expenses that are already incurred but will be shared in the current reporting period
and later periods with amortization term of more than one year, mainly for the expenses on betterment of leased fixed
assets and employee housing loan deferred interest. Long-term deferred expenses are evenly amortized in installments in
three to five years during the expected benefit period.
Contract liabilities refer to the obligation of the Group to transfer goods or services to customers for consideration received
or receivable from customers. Contract assets and contract liabilities under the same contract are presented in net terms.
During accounting period when the Group's employees provide services, actual short-term remuneration shall be
recognized as the liabilities and current profit and loss or relevant asset cost. The Group's employee benefits and welfare
are included into current profit and loss or relevant asset cost according to actual amount occurred during the period. If
the employee benefits and welfare is non-monetary, it shall be measured according to its fair value.
During the accounting period that the employees service the Group, the Group pays social insurance premiums such as
medical insurance premium, industrial injury insurance premium, maternity insurance premium and housing accumulation
fund for its employees, as well as labor union expenditure and employee education expenses calculated and withdrawn
according to the regulations, corresponding employee remuneration amount shall be calculated and determined in
accordance with specified calculation and withdrawal basis and proportion to recognize corresponding liabilities and
included into the current profit and loss or relevant asset cost.
All post-employment benefits shall be considered as the defined contribution plan.
In the accounting period when the employee serves for the Group, the deposited amount calculated based on defined
contribution plan shall be recognized as liabilities and included in the current profit and loss or relevant asset cost.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Where the Group provides termination benefits, the employee remuneration liabilities caused by such termination benefits
will be determined as the following date, whichever is earlier, and will be included in the current profit and loss: 1) When
the Group cannot unilaterally withdraw the termination benefits provided due to labor relation cancellation plan or
employee lay-off suggestion; or 2）when the Group determines costs or expenses in relation with the restructuring of the
paid termination benefits.
Provisions are recognized when the Group has a present obligation related to a contingency such as products quality
assurance, etc. And it is probable that an outflow of economic benefits will be required to settle the obligation, and the
amount of the obligation can be measured reliably.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at
the balance sheet date, taking into account factors pertaining to a contingency such as the risks, uncertainties and time
value of money. Where the effect of the time value of money is material, the amount of the provision is determined by
discounting the related future cash outflows.
The Group estimates product quality guarantee deposits based on expected claim rates, maintenance and replacement costs,
etc.
Share-based payment refers to a transaction in which the Group grants the equity instruments or undertakes the equity-
instrument-based liabilities in return for services from employees. The Group's share-based payment is an equity-settled
share-based payment.
Equity-settled share-based payments in exchange for services rendered by employees are measured at the fair value of the
equity instruments granted to employees at the grant date. Such amount is recognized as related costs or expenses on a
straight-line basis over the vesting period, with a corresponding increase in capital reserve.
At each balance sheet date during the vesting period, the Group makes the best estimate according to the subsequent latest
information of change in the number of employees who are granted with options that may vest, etc. and revises the number
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
of equity instruments expected to vest. The effect of the above estimate is recognized as related costs or expenses, with a
corresponding adjustment to capital reserve.
In case the Group modifies a share-based payment arrangement, if the modification increases the fair value of the equity
instruments granted, the Group will include the incremental fair value of the equity instruments granted in the measurement
of the amount recognized for services received. If the modification increases the number of the equity instruments granted,
the Group will include the fair value of additional equity instruments granted in the measurement of the amount recognized
for services received. The increase in the fair value of the equity instruments granted is the difference between fair value
of the equity instruments before and after the modification on the date of the modification. If the Group modifies the terms
or conditions of the share-based payment arrangement in a manner that reduces the total fair value of the share-based
payment arrangement, or is not otherwise beneficial to the employee, the Group will continue to account for the services
received as if that modification had not occurred, other than a cancellation of some or all the equity instruments granted.
If cancellation of the equity instruments granted occurs during the vesting period, the Group will account for the
cancellation of the equity instruments granted as an acceleration of vesting, and recognize immediately the amount that
otherwise would have been recognized over the remainder of the vesting period in profit or loss for the period, with a
corresponding recognition in capital reserve. When the employee or counterparty can choose whether to meet the non-
vesting condition but the condition is not met during the vesting period, the Group treats it as a cancellation of the equity
instruments granted.
The Group's revenue consists of product sales revenue, engineering construction revenue and cloud services and other
service revenue.
When (or as) a performance obligation in a contract was satisfied, i.e., when (or as) the customer obtains control of relevant
goods or services, the Group recognizes as revenue the amount of the transaction price that is allocated to that performance
obligation. A performance obligation is the Group's commitment to transfer to a customer a good or service (or a bundle
of goods or services) that is distinct, in a contract with the customer.
The Group evaluates the contract on the commencement date of the contract, identifies the individual performance
obligations contained in the contract and determines whether each individual performance obligation is to be performed
over a certain period of time or at a certain point in time. Revenue is recognized over time by reference to the progress
towards complete satisfaction of the relevant performance obligation if one of the following criteria is met: (1) the customer
simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs; (2) the
Group's performance creates or enhances an asset that the customer controls as the Group performs; or (3) the Group's
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to
payment for performance completed to date. Otherwise, revenue is recognized at a point in time when the customer obtains
control of the distinct good or service.
If the contract contains two or more performance obligations, the Group allocates the transaction price to each single
performance obligation on the contract start date in accordance with the relative proportion of the individual selling price
of the goods or services promised by each single performance obligation. However, if there is strong evidence that the
contract discount or variable consideration is only related to one or more (but not all) performance obligations in the
contract, the Group allocates the contract discount or variable consideration to the relevant one or more performances
obligation. Individual selling price refers to the price at which the Group sells goods or services to customers separately.
Where the individual selling price cannot be directly observed, the Group comprehensively considers all relevant
information that can be reasonably obtained, and uses the observable input value to the maximum to estimate the individual
selling price.
The Group judges whether the Group’s identity is the principal or agent when engaging in transactions based on whether
it has control over the goods or services before transferring the goods or services to customers. If the Group is able to
control the goods or services before transferring them to customers, the Group is the principal responsible person, and
revenue is recognized based on the total amount of consideration received or receivable. Otherwise, the Group acts as an
agent and recognizes revenue based on the amount of commission or handling fee to which it is expected to be entitled,
which is determined based on the net amount of the total consideration received or receivable less the consideration payable
to other related parties, or based on a predetermined commission amount or proportion, etc.
Product sales revenue is the revenue from sales of video surveillance products, smart home products, robotics products
and other products of the Group.
According to the contract, the Group recognizes revenue when the control of the product is transferred, that is, when the
product is handed over to the agreed carrier or delivered to the place designated by the other party for receipt. As the
delivery of the products to the customer represents the right to receive the contract consideration unconditionally, and the
maturity of the payment is only subject to the passage of time, the Group recognises a receivable when the product is
delivered to the customer. When a customer prepays for a purchase, the Group recognises the transaction amount received
as a contractual liability until revenue is recognized when the product is delivered to the customer.
There is variable consideration in the product sales contracts between the Group and its distributors. The Group determines
the best estimate of the variable consideration based on the expected delivery time, quantity and price of the products. The
transaction price, including variable consideration, does not exceed the amount by which the accrued recognized revenue
is unlikely to be materially reversed at the time the relevant uncertainty is eliminated. At each balance sheet date, the
Group re-estimates the amount of variable consideration that should be included in the transaction price.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
When the Group sells products to distributors, it provides an additional purchase option under sales incentives, i.e., the
Group's distributors can accumulate sales rebates when purchasing specific products from the Group and use them to offset
the price of goods in future purchases. These sales rebates provide resellers with discounts on their future purchases that
are not available to similar customers. As a result, the commitment to provide the dealer with a credit for future purchases
is a separate performance obligation that is recognized as a contractual liability at the time of the sale transaction at the
transaction price apportioned to the fair value of the rebate, and revenue is recognized when the reseller uses the sales
rebate offset.
The Group provides quality assurance for the products sold, and the quality assurance related to the products sold by the
Group cannot be purchased separately, but is to assure customers that the products sold meet the established standards, so
the Group carries out accounting treatment in accordance with the provisions of Accounting Standard for Business
Enterprises No. 13 - Contingencies.
For product sales of the Group with sales return terms attached, as the customer obtains ownership of related products, the
Group recognizes revenue in accordance with the consideration (excluding expected refund amounts due to sales returns)
that the Group is expected to receive due to the transfer of products or services to the customer, and recognizes expected
liabilities in accordance with expected refund amounts due to sales returns. The remaining amount, subsequent to
deduction of expected costs from collecting the products (including the decrease in value of the returned products), is
recognized as an asset in accordance with the book value during the expected transfer of returned products after deducting
the costs of the above net assets carried forward.
Some of the Group's product sales contracts have instalment payment clauses, and there is a significant financing
component in the contract, the Group determines the transaction price based on the amount payable in cash when the
customer assumes control of the products. The difference between the transaction price and the contract consideration is
amortized using the effective interest rate method during the contract period. On the contract commencement date, the
Group does not consider the significant financing components in the contract if the interval between the customer obtaining
control of the products and the price being paid by the customer is not more than one year.
Project construction revenue is the revenue from constructions related to intelligent security solution projects and PPP
Projects provided by the Group.
For project construction, the customer is able to control the assets under construction in the course of the Group's
performance, and the Group regards them as a performance obligation to be performed within a certain period of time, and
the revenue is recognized according to the performance progress, unless the performance progress cannot be reasonably
determined.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The Group uses the output method to determine the progress of performance, which is to determine the progress of
performance based on the value of engineering construction services transferred to customers. If the progress of
performance cannot be reasonably determined and the costs incurred by the Group are expected to be compensated,
revenue is recognized according to the amount of costs incurred until the progress of performance can be reasonably
determined.
The Group's customers make milestone payments with the Group in respect of projects in accordance with the terms of
the contract. The Group first recognizes the completed performance obligations as contract assets and reclassifies them as
accounts receivable when the payment milestone is reached; if the contract price received or receivable by the Group
exceeds the accumulated performance obligations completed, the excess part is recognized as a contract liability. The
Group's contract assets and contractual liabilities under the same contract are presented on a net basis.
Some of the Group's construction contracts have long-term payment clauses, and there are significant financing elements
in the contracts. The Group determines the transaction price on the basis of the amount payable in cash on the assumption
that the customer will take control of the asset-building. The difference between the transaction price and the contract
consideration is amortized over the life of the contract using the effective interest method. At the commencement date of
the contract, the Group expects that the interval between the customer obtaining control of the service and the customer
paying the price will not exceed one year, regardless of the significant financing component existing in the contract.
The Group, as a private capital, entered into a PPP project contract with the government and provided construction,
operation, maintenance and other services. The Group identifies construction services, operation services and maintenance
services as individual performance obligations in the contract, and allocates the transaction price to each performance
obligation based on the relative proportion of the stand-alone selling price of each performance obligation. When providing
construction services or outsourcing projects to other parties, The identity of the Group is the principal responsible person,
and then accounting for construction revenue to confirm the contract assets is made. After the PPP project is ready for use,
the Group recognizes revenue related to operation and maintenance services.
Revenue from cloud services and other services refers to cloud services such as storage services, video services, and
telephone services provided by the Group, maintenance services related to security projects, and other services, etc.
For cloud services and other services, the economic benefits brought by the customer are obtained and consumed at the
time of the Group's performance, and the Group regards them as a performance obligation to be performed within a certain
period, and the revenue is recognized according to the performance progress during the period of providing services. The
Group adopts the output approach to determine the performance progress, i.e. the performance progress is determined
based on the value of the services transferred to the customer to the customer. The customer paid for the cloud services in
advance at the time of purchase, so the Group recognized the cloud service payment received at the time of the transaction
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
as a contractual liability, and recognized the revenue according to the performance progress during the period of the
provision of the services. The Group presents contract assets and contract liabilities under the same contract on a net basis.
For the provision of operation and maintenance services to customers, the economic benefits obtained and consumed by
the customers at the same time as the performance of the contract by the Group shall be regarded as the performance
obligation to be performed within a certain period of time, and the revenue shall be recognized according to the
performance progress. The Group's customers make milestone payments with the Group for O&M services in accordance
with the terms of the contract. The Group first recognizes completed performance obligations as contract assets and
reclassifies them as accounts receivable when payment milestones are reached, and if the contract price received or
receivable by the Group exceeds the accumulated performance obligations completed, the excess part is recognized as a
contract liability. The Group's contract assets and contractual liabilities under the same contract are presented on a net
basis.
For the provision of operation and maintenance services to customers, the economic benefits obtained and consumed by
the customers at the same time as the performance of the contract by the Group shall be regarded as the performance
obligation to be performed within a certain period of time, and the revenue shall be recognized according to the
performance progress. The Group's customers make milestone payments with the Group for O&M services in accordance
with the terms of the contract. The part of the Group that has obtained the unconditional right to receive payment is
recognized as accounts receivable, and the remainder is recognized as contract assets, and if the contract price received or
receivable by the Group exceeds the accumulated performance obligations completed, the excess part is recognized as a
contract liability. The Group's contract assets and contractual liabilities under the same contract are presented on a net
basis.
Incremental costs incurred by the Group to obtain a contract (that is, costs that would not have occurred without a contract)
and expected to be recovered are recognized as an asset, and amortized using the same basis as revenue recognition for
the goods or services to which the asset relates, and included in current profit or loss. If the amortization period of the
asset does not exceed one year, it is included in current profit or loss when it occurs. Other expenses incurred by the Group
in order to obtain the contract shall be included in current profit or loss when incurred, unless it is clearly borne by the
customer.
The cost of the Group's performance of a contract that does not fall within the scope of accounting standards other than
the revenue standard and meets the following conditions is recognized as an asset: (1) The cost is directly related to a
current or anticipated contract; (2) The cost increases the Group's resources for fulfilling performance obligations in the
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
future; (3) The cost is expected to be recovered. The aforesaid assets are amortized on the same basis as the recognition
of income from goods or services related to the assets, and are included in the current profit or loss. The Group's asset in
relation to contract costs are mainly contract performance costs, and they are included in inventories based on their current
nature.
In determining impairment losses on assets related to contract costs, impairment losses are first determined for other assets
recognized in accordance with other relevant ASBEs and related to the contract. Then, for assets related to contract costs
whose book value is higher than the difference between the following two items, the Group makes provision for
impairment for the excess to be recognized as asset impairment losses: (1) the book value of consideration expected to be
obtained by the Group for the transfer of goods or services related to the asset; (2) the estimated costs to be incurred in
connection with the transfer of such relevant goods or services.
After provision for impairment is made for the asset related to contract costs, if the difference between the above two items
is higher than the book value of the asset due to changes in the factors of impairment in previous periods, the original
provision for impairment of the asset is reversed and included in the current profit or loss, but the book value of the asset
after the reversal shall not exceed the book value of the asset on the reversal date assuming no provision for impairment
is made.
Government subsidies refer to the monetary and non-monetary assets obtained by the Group from the government for free.
Government subsidies are recognized when they can meet the conditions attached to the government subsidies and can be
received.
If a government subsidy is a monetary asset, it shall be measured at the amount received or receivable.
The government subsidies for some special subsidies and etc. are used for constructions and forms long-term assets, and
therefore are categorized as government subsidy related to assets.
A government grant related to an asset is recognized as deferred income, and it should be evenly amortized to profit or
loss over the useful life of the related asset.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The Group receives government subsidies including subsidies for special projects and Value-Added-Tax refund, etc.,
which are used to compensate the group-related costs or losses, and therefore are categorized as government subsidy
related to income.
For a government grant related to income, if the subsidy is a compensation for related expenses or losses to be incurred in
subsequent periods, it is recognized as deferred income, and recognized in profit or loss over the periods in which the
related costs or losses are recognized; If the subsidy, such as VAT refund, is a compensation for related expenses or losses
already incurred, it is recognized immediately in profit or loss for the period.
For government subsidies related to the Group's daily operations shall be booked into other income; for those not related
to the Group's daily operations, shall be booked into non-operating income/expense.
The policy-based preferential loan interest subsidy obtained by our group is directly allocated by the government to our
group, and the corresponding interest subsidy offsets the relevant borrowing costs.
The income tax expenses include current income tax and deferred income tax.
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at the
amount expected to be paid (or recovered) according to the requirements of tax laws.
For temporary differences between the book value of certain assets or liabilities and their tax base, or between the nil book
value of those items that are not recognized as assets or liabilities and their tax base that can be determined according to
tax laws, deferred tax assets and liabilities are recognized through the balance sheet liability method.
In general, all temporary differences are recognized as the relevant deferred income tax. However, for deductible
temporary differences, the Group recognizes the relevant deferred tax assets to the extent that it is likely to obtain the
taxable income to offset the deductible temporary differences. In addition, deferred tax assets or liabilities relating to the
initial recognition of goodwill, as well as those arising from transactions that are neither a business combination nor affect
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
accounting profits and taxable income (or deductible losses) and do not result in equal taxable and deductible temporary
differences, are not recognized.
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognized to the extent that it is
probable that future taxable profits will be available against which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except
where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary
differences associated with such investments are only recognized to the extent that it is probable that there will be taxable
profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable
future.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are measured at the applicable
tax rates in the period in which the related assets are recovered or the related liabilities are recovered in accordance with
the tax laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except when they arise from
transactions or events that are directly recognized in other comprehensive income or in shareholders' equity, in which case
they are recognized in other comprehensive income or in shareholders' equity; and when they arise from business
combinations, in which case they adjust the book value of goodwill.
At the balance sheet date, the book value of deferred tax assets is reviewed and reduced if it is no longer probable that
sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilized. Such
reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets
and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and
deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
and liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are
expected to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
Lease refers to a contract that conveys the right to use an asset for a period of time in exchange for consideration.
The Group assesses whether a contract is, or contains, a lease at the inception date. The Group does not re-assess whether
a contract contains a lease unless the terms and conditions of the contract are changed.
In case the contract contains one or more lease and non-lease components, the Group separates each lease component and
non-lease component, and allocates the consideration to the lease and non-lease components based on the proportion of
relative stand-alone prices of the components.
The Group recognizes the right-of-use assets for leases on the commencement date of the lease term, except for short-term
lease and lease of low-value assets. The commencement date of the lease term refers to the date from which the lessor
makes the leased assets available for use by the Group. Right-of-use assets are initially measured at cost. The cost includes:
 Initial measurement amount of lease liabilities;
 Amount of lease payment made at or before the commencement date of the lease, less any lease incentives received;
 Initial direct costs incurred by the Group;
 An estimate of any costs to be incurred by the Group in dismantling and removing the underlying asset, or restoring
the site on which it is located, or restoring the leased assets to the conditions as agreed under the terms of the lease,
excluding costs incurred to produce inventories.
The Group calculates depreciation of the right-of-use assets in accordance with the relevant depreciation provisions of
Accounting Standards for Business Enterprises No. 4 - Fixed Assets. The right-of-use asset is depreciated over the shorter
of the lease term and the useful life of the right-of-use asset, unless there is a transfer of ownership or purchase option
which is reasonably certain to be exercised at the end of the lease term.
The Group determines whether the right-of-use assets are impaired and accounts for the identified impairment loss in
accordance with the provisions of Accounting Standards for Business Enterprises No. 8 - Impairment of Assets.
The Group initially measures the lease liability on the commencement date at an amount equal to the present value of the
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
lease payments during the lease term that are not paid at that date, except short-term lease and lease of low-value assets.
In calculating the present value of the lease payments, the Group adopts the interest rate implicit in the lease as the discount
rate. The Group uses its incremental borrowing rate if the interest rate implicit in the lease cannot be readily determined.
Lease payments refer to the payments made by the Group to the lessor in connection with the right to use the leased asset
during the lease term, including:
 Fixed payments, including in-substance fixed payments, less any lease incentives receivable;
 The exercise price of a purchase option, if the Group is reasonably certain to exercise that option;
 Payments for terminating the lease, if the lease term reflects the lessee exercising the option to terminate the lease;
 Amounts expected to be payable by the Group under residual value guarantees.
After the commencement date of the lease term, the Group calculates interest expense of lease liabilities in each period of
lease term at fixed periodic rate and recognizes in the current loss and profit or relevant asset costs.
After the commencement date of the lease term, the Group re-measures the lease liability and adjusts the corresponding
right-of-use assets under the following circumstances. If the book value of the right-of-use assets has been reduced to zero
while the lease liability needs to be further reduced, the Group will recognize the difference into the current loss and profit:
 In case of any change of the lease term or any change in the valuation of the purchase option, the Group re-measures
the lease liability at the present value calculated based on the modified lease payments and the revised discount rate;
 In the event of any change in the amount expected to be payable based on the residual value guarantees, the Group
re-measures the lease liability at the present value calculated based on the changed lease payments and the original
discount rate.
The Group has elected not to recognize the right-of-use assets and lease liabilities for short-term leases and leases of low-
value assets. Short-term lease refers to lease with a term no more than 12 months from the commencement date of lease
term and without purchase option. Lease of low-value assets refers to lease for single lease asset with low value when it
is new. The Group recognizes lease payments under short-term leases and leases of low-value assets as the current loss
and profit or the relevant asset costs on a straight-line basis over each period during the lease term.
In case of lease modification, the Group makes accounting treatment of such lease change as a separate lease if all of the
following conditions are met:
 Such lease modification increases the scope of the lease by adding the right to use one or more lease assets;
 The increased consideration is commensurate with the stand-alone price for the increase in scope and any appropriate
adjustments to reflect the circumstances of the particular contract.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Where accounting treatment is not made for lease modification as a separate lease, at the effective date of lease
modification, the Group reallocates the contract consideration after the modification, redetermines the lease term, and re-
measures the lease liability based on the present value calculated according to the modified lease payments and the revised
discount rate.
In the event that the lease scope is decreased or the lease term is shortened as a result of the lease modification, the Group
reduces the book value of the right-of-use assets, and recognizes the relevant gains or losses relating to the partial or full
termination of the lease in the income statement; for the lease liabilities re-measured due to other lease modifications, the
Group adjusts the book value of the right-of-use assets accordingly.
In case the contract contains both lease and non-lease components, the Group allocates the contract consideration in
accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenue on portion of
transaction prices, based on the respective stand-alone prices of the lease component and the non-lease component.
Finance lease is a lease that substantially transfers all the risks and rewards of incidental to ownership of an underlying
asset. Operating lease refers to the leases other than finance lease.
The Group recognizes the lease payments from operating leases as rental income on a straight-line basis for all periods
over the lease term. The Group's initial direct costs incurred in connection with operating leases is capitalized as incurred,
recognized in the income statement over the lease term on the same basis as the lease income.
On the commencement date of the lease term, the Group uses the net lease investment as the initial book value of the
finance lease receivables and derecognizes the finance lease assets. Net lease investment is the sum of present value of
unguaranteed residual value and lease payments receivable discounted at the interest rate implicit in lease on the
commencement date of the lease term.
Lease payments receivable, which refer to amounts receivable by the Group from the lessee for conveying the right to use
the leased assets during the lease term, include:
 Fixed payment including in-substance fixed payments by the lessee, less any lease incentives payable;
 The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option;
 Payments for terminating the lease (if the lease term reflects the lessee exercising the option to terminate the lease;
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
 Residual value guarantees provided to the Group by the lessee, a party related to the lessee, or a third party unrelated
to the lessor that is capable of discharging the obligations under the guarantee.
The Group calculates and recognizes the interest income in each period of the lease term according to the fixed periodic
interest rate.
In financial leases in which the Group acts as a manufacturer or distributor as the lessor, on the commencement date of
the lease term, the Group recognizes revenue based on the lower of the fair value of the leased assets and the present value
of the lease receipts discounted at the market rate, and carries forward the cost of sales based on the book value of the
leased assets after deducting the present value of the unsecured residual value.
The costs incurred by the Group acting as a manufacturer or distributor as a lessor to obtain a financial lease are recognized
in profit or loss for the current period on the commencement date of the lease term.
In case of a medication of the operating lease, the Group accounts for it as a new lease as of the effective date of the
modification, any prepaid or accrued lease payments relating to the original lease are considered as payments for the new
lease .
In case of modification of finance lease, the Group accounts for the modification of a finance lease as a separate lease if
all of the following conditions are met:
 The modification increases the scope of the lease by adding the right to use one or more lease assets;
 The consideration for the lease increases by an amount that is commensurate with the stand-alone price for the
increase in scope, and any appropriate adjustments to that price to reflect the circumstances of the particular contract.
If a modification of finance lease is not accounted for as a separate lease, the Group accounts for the changed lease under
the following circumstances:
 If the modification becomes effective on the commencement date of the lease and the lease is classified as an
operating lease, the Group accounts for it as a new lease from the effective date of the lease modification and measures
as the net lease investment prior to the effective date of the lease modification as the book value of the leased asset.
 If the modification becomes effective on the commencement date of the lease and the lease is classified as a finance
lease, the Group accounts for it in accordance with the provisions of Accounting Standards for Business Enterprises
No. 22 - Recognition and Measurement of Financial Instruments regarding the modification or renegotiation of
contracts.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
For debt restructuring carried out by modifying other terms, the Group recognizes and measures the restructured claims in
accordance with the provisions of ASBE No. 22 - Recognition and Measurement of Financial Instruments.
for accounting estimate
During the process of using accounting policy described in note (III), due to the uncertainty in operation activities, the
group should judge, estimate and assume the book value of the report items which may not be metered reliably. These
judgments, estimates and assumptions are based on the historical experience of the Group's management and other related
factors. Differences may exist between the actual results and the Group's estimate.
The Group regularly reviews the above judgments, assumptions and estimations on the basis of continuous operation. If
the changes of accounting estimate only influence current period, the influence amount will be affirmed during the
changing period; if it influences the current period and subsequent periods, the influence amount will be recognized in the
current period and future period.
- Key assumptions and uncertainties used in accounting estimate
On balance sheet date, key assumptions and uncertainties for performing accounting estimates on book value of assets and
liabilities in subsequent future periods are:
Impairment provision for inventories
Except for contract performance costs, inventories are measured at the lower of cost or net realizable value. For raw
materials, the latest or future actual purchase price is used as the basis for determining the net realizable value; For products
in progress, the net realizable value is determined by the actual selling price of the most recent or post-period finished
product, less the estimated costs of the current similar type at the time of completion of the product, the estimated sales
expenses and related taxes; For finished products, the actual selling price of the latest or future finished product minus the
estimated selling expenses and related taxes will be incurred, is used as the basis for determining the net realizable value.
The Group will regularly conduct a comprehensive stocktaking to review the impairment circumstances on defective,
obsoleted or slow-moving inventory if any; in addition, the Group's management will regularly review the impairment
circumstance of inventory with long storage time according to the inventory aging. Based on the above procedure, the
Group's management deems that the full provision amounts have been withdrawn for inventory. For details, please refer
to Note (V) 9.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Impairment of accounts receivable
Except for accounts receivable whose credit losses are determined on the basis of individual basis, the Group adopts an
impairment matrix on a portfolio basis to determine its expected credit loss of the relevant accounts receivable. The Group
divides the risk characteristics according to the region and object of its business, and divides the relevant accounts
receivable into different portfolios. Based on the historical loss rate and consider reasonable and well-founded forward-
looking information in the industry, the Group determines the proportion of corresponding loss reserves for different
portfolios of various types of accounts receivable. As of June 30, 2025, based on the historically loss rate and consider
reasonable and well-founded forward-looking information in the industry, the Group determines the corresponding
proportion of loss provision for accounts receivable. The amount of the provision for expected credit losses will change
as the estimation of the Group. The details on the provision for expected credit losses of the accounts receivable of the
Group are given in Note (V) 4.
Useful life and predicted net residual value of fixed asset
The Group's estimation of fixed assets useful life is based on the historical experience of actual usable term of fixed assets
with similar properties and functions, the estimation of predicted net residual value is the amount obtained currently by
the Group from the assets after deducting the anticipated disposal expense based on the anticipated status assuming the
conditions that fixed assets' predicted useful life expires and fixed assets are at the end of useful life. The Group shall
conduct the review on the predicted service life and predicted net residual value of fixed assets at least annually. For the
current reporting period, the Group's management did not see signs either indicating a shortened or extended useful life of
the Group's fixed asset or indicating a change in predicted net residual value.
Accrued liabilities of product quality warranty
Accrued liabilities of product quality assurance are costs and expenses incurred to meet the established standards of
product quality assurance obligations to customers in accordance with the product contract; the Group made such an
estimation according to the predicted claim rate, repair and replacement cost of relevant products. The management deems
that the current estimation on accrued liabilities of product quality warranty is reasonable, however, the Group will
continue to review the conditions of product repairs, and will conduct adjustment if any sign indicating the need to make
adjustments on accounting estimates.
Deferred tax assets and deferred tax liabilities
Deferred income tax assets and deferred income tax liabilities are measured at the applicable income tax rate during the
period when the relevant asset is expected to be recovered or the relevant debt is expected to be paid off. The expected
applicable income tax rate is determined according to the relevant current tax regulations and the actual situation of the
Group. If the estimated income tax rate is different from the original estimate, the management of the Group will adjust it.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The realization of deferred income tax assets mainly depends on the actual future taxable income, taxable temporary
differences, and the effective tax rate of temporary difference in the future applicable years. If the actual taxable income
and taxable temporary differences in the future is less than the estimation, or actual tax rate is lower than the estimation,
then the confirmed deferred income tax assets will be reversed and confirmed in the income statement during the
corresponding period. If the actual taxable income and taxable temporary differences in the future is more than the
estimation, or actual tax rate is higher than the estimation, then the deferred tax assets that are partially unrecognized
deductible losses and deductible temporary differences will be recognized and confirmed in the income statement during
the corresponding period.
Goodwill impairment
When testing goodwill for impairment, a pre-tax interest discount rate that appropriately reflects the current market time
value of money and asset-specific risk is determined and the present value of the projected future cash flows of the relevant
asset group or combination of asset groups containing goodwill is calculated. When the future actual result is different
from the original estimation, the result of the goodwill impairment test will alter.
IV. Taxes
Category of tax Basis of tax computation Tax rate
Enterprise income tax Taxable income 25% (Note 1)
For the taxable product sales revenue or taxable labor revenue, the Company 6%, 9%, 13% and simple
VAT and its domestic subsidiaries are ordinary Value-added Tax payers; the VAT collection rate of 5%, 3%
payable is the balance of input tax after deducting the deductible output tax. (Note 2-3)
City maintenance and
Actual payable turnover tax 7%, 5%
construction tax
Education surcharges Actual payable turnover tax 3%
Local education
Actual payable turnover tax 2%
surcharges
Note 1: Except that the Company and subsidiaries in China are applicable to the following tax preference, the Company's
other subsidiaries in China are applicable to 25% of enterprise income tax rate, the overseas subsidiaries are applicable to
corresponding local tax rate.
(1) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation
Agency in 2023 issued by the Leading Group Office of National High-tech Enterprise Identification Management on
December 28, 2023, the Company was identified as the high-tech enterprise with a valid term of 3 years and the
preferential tax period is from 2023 to 2025. Therefore, the enterprise income tax is calculated and paid on the basis
of a reduced tax rate of 15% in the current reporting period (2024: 15%).
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
According to the Announcement on the Enterprise Income Tax Policies for Promoting the High-quality Development
of Integrated Circuit Industry and Software Industry (Ministry of Finance, State Administration of Taxation, National
Development and Reform Commission, Ministry of Industry and Information Technology Announcement [2020] No.
was approved by the tax authorities in May, 2025 to pay the 2024 annual corporate income tax at the rate of 10%.
(2) According to the Announcement on Continuation of the Corporate Income Tax Policy for the Western Development
(Ministry of Finance, State Administration of Taxation, National Development and Reform Commission
Announcement [2020] No.23), the subsidiaries of the Company, Chongqing Hikvision Technology Co., Ltd.,
Chongqing Hikvision System Technology Co., Ltd., and Chongqing EZVIZ Electronics Ltd. have enjoyed preferential
tax policies for the development of the western region. Therefore, the current enterprise income tax is calculated and
paid on the basis of a reduced tax rate of 15% in the current reporting period (2024: 15%).
(3) According to the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation
Agency in 2024 issued by the Leading Group Office of National High-tech Enterprise Identification Management
Work on December 26, 2024, Hangzhou Fuyang Haikang Baotai Surveillance Technology Service Ltd. (hereinafter
referred to as "Fuyang Baotai") and Hangzhou Hikstorage Technology Ltd. ("Hikstorage Technology") , subsidiaries
of the Company, are identified as high-tech enterprises, and the valid terms of the identification for both are 3 years
and the preferential tax period is from 2024 to 2026. Therefore, the enterprise income tax is calculated and paid on
the basis of a reduced tax rate of 15% in the current reporting period (2024:15%).
(4) In accordance with the List of High-tech Enterprises Identified by the Zhejiang Provincial Accreditation Agency in
Rayin Technology Co., Ltd. (hereinafter referred to as "HikRayin"), and Hangzhou Hikfire Technology Co., Ltd.
(hereinafter referred to as "HikFire") were recognized as high-tech enterprises with a valid term of 3 years and the
preferential tax period is from 2022 to 2024. As of the approval date of this report, Hangzhou Systems, HikRayin, and
HikFire are still in the reapplication stage for the High-Tech Enterprise qualification in 2025. According to the
Announcement of the State Taxation Administration on Issues Concerning the Implementation of the Income Tax
Preferential Policies for High-Tech Enterprises, in the year when the High-Tech Enterprise qualification expires,
before passing the reevaluation, enterprises can temporarily pay income tax at a preferential rate of 15%. Therefore,
income tax for this period is calculated and paid at a rate of 15% (2024:15%).
(5) In accordance with the List of Second Batch of High-tech Enterprises Identified and Reported by Shanghai
Accreditation Agency in 2023 issued by Shanghai High-tech Enterprise Identification Office on January 4, 2024, the
Company’s subsidiary, Shanghai Goldway Intelligent Transportation System Ltd. was identified as the high-tech
enterprise, and valid term is 3 years, and the preferential tax period is from 2023 to 2025. Therefore, the enterprise
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
income tax is calculated and paid on the basis of a reduced tax rate of 15% in the current reporting period (2024: 15%).
(6) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation
Agency in 2023 issued by the Leading Group Office of National High-tech Enterprise Identification Management on
December 28, 2023, the Company’s subsidiaries, Hangzhou Hikauto Software Ltd. (hereinafter referred to as
"HikAuto Software") and Hangzhou Hikimaging Technology Co., Ltd. (hereinafter referred to as "HikImaging") were
identified as the high-tech enterprise, and valid term is 3 years, and the preferential tax period is from 2023 to 2025.
Therefore, the enterprise income tax is calculated and paid on the basis of a reduced tax rate of 15% in the current
reporting period (2024: 15%).
(7) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation
Agency in 2023 issued by the Leading Group Office of National High-tech Enterprise Identification Management on
December 28, 2023, the Company’s subsidiary, Hangzhou Hikrobot Co., Ltd. was identified as the high-tech
enterprises, and valid term is 3 years, and the preferential tax period is from 2023 to 2025.
According to the preferential tax policies for the integrated circuit industry and the software industry and the
Announcement No. 10 of 2021 of the Ministry of Industry and Information Technology of the People's Republic of
China, the National Development and Reform Commission, the Ministry of Finance and the State Administration of
Taxation, Hikrobot is a qualified software enterprise and is exempted from enterprise income tax in the first and second
years after start of profiting and pays enterprise income tax at half of the 25% statutory tax rate in the third to fifth
years. The year of 2025 is the third year of HikRobot making profits and enjoyed enterprise income tax at half of the
(8) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation
Agency in 2022 issued by the Leading Group Office of National High-tech Enterprise Identification Management on
January 17, 2023, the Company's subsidiary, Hangzhou Hikmicro Sensing Technology Co., Ltd. (hereinafter referred
to as "Hikmicro Sensing") was identified as the high-tech enterprise with a valid term of 3 years and the preferential
tax period is from 2022 to 2024. As of the approval date of this report, Hikmicro Sensing is still in the reapplication
stage for the High-Tech Enterprise qualification in 2025.
In accordance with the Preferential Tax Policies for Integrated Circuit and Software Industries and Announcement No.
Development and Reform Commission, the Ministry of Finance and the State Administration of Taxation , Hikmicro
Sensing is a qualified integrated circuit company, and is exempted from enterprise income tax in the first and second
years after start of profiting and pays enterprise income tax at half of the 25% statutory tax rate in the third to fifth
years. The year of 2025 is the fifth year of Hikmicro Sensing making profits and enjoyed enterprise income tax at half
of the 25% statutory tax rate.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
In accordance with the Preferential Tax Policies for Integrated Circuit and Software Industries, Hikmicro Sensing was
approved by the tax authorities in May 2025 for exemption from corporate income tax for the year 2024.
(9) In accordance with the Announcement on the Filing of High-tech Enterprises Recognized by Zhejiang Provincial
Identification Institution in 2022 issued by the Leading Group Office of National High-tech Enterprise Identification
Management on January 17, 2023, the Company's subsidiary, Hangzhou Hikmicro Software Ltd. (hereinafter referred
to as "Hangzhou Hikmicro Software") was identified as the high-tech enterprise with a valid term of 3 years and the
preferential tax period is from 2022 to 2024. As of the approval date of this report, Hangzhou Hikmicro Software is
still in the reapplication stage for the High-Tech Enterprise qualification in 2025. According to the Announcement of
the State Taxation Administration on Issues Concerning the Implementation of the Income Tax Preferential Policies
for High-Tech Enterprises, in the year when the High-Tech Enterprise qualification expires, before passing the
reevaluation, enterprises can temporarily pay income tax at a preferential rate of 15%. Therefore, income tax for this
period is calculated and paid at a rate of 15%
In accordance with the Preferential Tax Policies for Integrated Circuit and Software Industries, Hangzhou Hikmicro
Software was approved by the tax authorities in May 2025 for exemption from corporate income tax for the year 2024.
(10) In accordance with the Recording List of the Second Batch of identified High-tech Enterprises of Hebei Province in
December 26, 2022, the Company’s subsidiary, Whst Hebei Co., Ltd. (hereinafter referred to as "Whst Hebei") was
identified as the high-tech enterprises with a valid term of 3 years and the preferential tax period is from 2022 to 2024.
As of the approval date of this report, Whst Hebei is still in the reapplication stage for the High-Tech Enterprise
qualification in 2025. According to the Announcement of the State Taxation Administration on Issues Concerning the
Implementation of the Income Tax Preferential Policies for High-Tech Enterprises, in the year when the High-Tech
Enterprise qualification expires, before passing the reevaluation, enterprises can temporarily pay income tax at a
preferential rate of 15%. Therefore, income tax for this period is calculated and paid at a rate of 15%. (2024: 15%)
(11) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation
Agency in 2023 issued by the Leading Group Office of National High-tech Enterprise Identification Management on
December 28, 2023, the Company's subsidiary, Hangzhou EZVIZ Software Ltd. (hereinafter referred to as "EZVIZ
Software") was identified as the high-tech enterprise, and valid term is 3 years, and the preferential tax period is from
statutory tax rate)
(12) In accordance with the provisions of the Announcement on Further Supporting the Development of Small and Micro-
sized Enterprises and Individual Businesses (Announcement No. 12 of 2023 by the Ministry of Finance and the State
Taxation Administration), Hangzhou Furui Technology Ltd. ("Furui Technology"), Henan Hua'an Security Services
Co., Ltd. (hereinafter referred to as "Henan Hua'an Security Services"), Hangzhou Hikimaging Electronics Ltd.,
Zhengzhou Hikvision Technology Ltd., Anhui Hikvision Urban Operation Service Co., Ltd., Shijiazhuang Haishi
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Digital Technology Ltd., Hangzhou Xingrong Information Technology Ltd., Xinjiang Zhongdian Yihai Information
Technology Ltd., and Guizhou Haikang Transportation Big Data Ltd. are qualified as small and micro-sized profitable
enterprises and are eligible for the preferential corporate income tax policy for small and micro-sized enterprises. The
taxable income up to RMB3 million is reduced to 25% of the taxable income and is subject to a corporate income tax
rate of 20%. Therefore, the corporate income tax for this year is calculated and paid at a reduced rate of 5%.
Note 2: In accordance with the requirements of the Notice on Software Product Value-added Tax Policy (Cai Shui [2011]
No. 100) promulgated by the Ministry of Finance and the State Administration of Taxation, as for self-developed software
products sales of the Company, Hangzhou System, HikRobot, HikAuto Software, Hangzhou EZVIZ Software, Hikstorage
Technology, HikImaging, HikFire, HikRayin, Hangzhou Microimage Software, Henan Haikang Hua'An BaoQuan
Electronics Co., Ltd. (hereinafter referred to as "Hua'An BaoQuan Electronics") , Hangzhou Hikvision Yuanwu
Intelligence Technology Co., Ltd. (formerly known as "Hangzhou Kuangxin Technology Ltd."), Fuyang Baotai, and Whst
Hebei, the VAT shall be calculated and paid with tax rate of 13% at first, then the portion with actual tax bearing excess
Note 3: In accordance with the Notice of the Ministry of Finance and the State Administration of Taxation on the Additional
VAT Deduction Policy for Integrated Circuit Enterprises (Finance and Taxation [2023] No. 17), from January 1, 2023 to
December 31, 2027, enterprises in integrated circuit design, production, packaging and testing, equipment and materials
are allowed to deduct an additional 15% of the current deductible input tax to deduct the tax payable. The subsidiary,
Hikmicro Sensing complies with the provisions of the policy and deducts an additional 15% of the current deductible input
tax to deduct the tax payable.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
V. Notes to items in the consolidated financial statements
Unit: RMB
Closing balance Opening balance
Item Exchange Exchange
Foreign currency Foreign currency
rate for RMB amount rate for RMB amount
amount amount
conversion conversion
Cash：
RMB - - 2,988.12 - - 2,759.07
USD 59,489.70 7.1586 425,863.00 19,048.11 7.1884 136,926.36
EUR 20,446.60 8.4024 171,800.52 32,977.56 7.5257 248,180.23
Other
- - 278,795.32 - - 294,157.68
currencies
Bank balance：
RMB - - 26,169,640,358.69 - - 30,906,055,381.57
USD 446,427,014.10 7.1586 3,195,792,423.11 525,069,475.29 7.1884 3,774,409,416.15
EUR 70,166,577.45 8.4024 589,567,650.36 71,544,059.18 7.5257 538,419,126.19
Other
- - 902,335,503.18 715,042,893.37
currencies
Other
currency
funds:
RMB - - 349,526,121.11 - - 293,311,312.74
USD 2,529,963.67 7.1586 18,110,997.93 1,925,634.95 7.1884 13,842,234.25
EUR 1,789,419.76 8.4024 15,035,420.60 159,997.07 7.5257 1,204,089.92
Other
- - 45,188,604.42 - - 28,521,859.50
currencies
Total 31,286,076,526.36 36,271,488,337.03
Including:
deposited in 1,293,787,535.61 796,652,984.09
overseas banks
Details of other currency funds:
Unit: RMB
Closing balance Opening balance
Item Foreign Exchange Foreign Exchange
currency rate for RMB amount currency rate for RMB amount
amount conversion amount conversion
Capitals with limitations：
Bank acceptance bills - - 2,196,987.60 - - 4,342,362.58
Deposits for letter of
- - 257,724,474.07 - - 187,030,125.71
guarantee
Other security deposits - - 16,106,719.90 - - 15,572,718.45
Other capitals with limitations - - 11,500,500.00 - - 11,500,750.00
Subtotal 287,528,681.57 218,445,956.74
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Capitals without
limitations:
Deposits in payment
instrument provided by third-
- - 138,478,637.61 - - 118,364,276.15
party and in securities
account
Others - - 1,853,824.88 - - 69,263.52
Subtotal 140,332,462.49 118,433,539.67
Total 427,861,144.06 336,879,496.41
Unit: RMB
Item Closing balance Opening balance
Forward foreign exchange contract 25,600.00 26,775,923.93
Total 25,600.00 26,775,923.93
Unit：RMB
Category Closing balance Opening balance
Bank acceptance bill 2,163,682,034.44 2,365,648,400.91
Finance company acceptance bill 97,022,754.16 150,839,104.68
Commercial acceptance bill 157,835,769.45 206,108,636.87
Total 2,418,540,558.05 2,722,596,142.46
balance sheet day
Unit：RMB
Item Amount not derecognized as of June 30, 2025
Bank acceptance bill 1,289,379,489.66
Finance company acceptance bill 39,251,776.30
Commercial acceptance bill 9,804.00
Total 1,328,641,069.96
As of June 30, 2025, the Group gave RMB1,248,642,833.37 (2024: RMB1,193,485,939.57) undue bank acceptance bill to
suppliers for endorsement, RMB39,251,776.30 (2024: RM46,990,625.40) undue acceptance bill of the finance company
to suppliers for endorsement. RMB9,804.00 (2024: RMB45,274.00) undue commercial acceptance bill to suppliers for
endorsement. Discounted RMB40,736,656.29 (2024: RMB34,410,142.39) undue bank acceptance to banks. Since the
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Group has not transferred almost all the risks and rewards of ownership of financial assets, the Group has not terminated
its confirmation. For details, please refer to Note (V) 24 and Note (V) 31.3.
Unit：RMB
Closing balance
Category Account balance Credit loss provision Book value
Proportion Proportion
Amount Amount Amount
(%) (%)
Provision for bad debts of notes receivables
- - - - -
on a single basis
Provision for bad debts of notes receivables
by portfolios
Total 2,419,985,687.95 100.00 1,445,129.90 0.06 2,418,540,558.05
Unit：RMB
Opening balance
Category Account balance Credit loss provision Book value
Proportion Proportion
Amount Amount Amount
(%) (%)
Provision for bad debts of notes receivables
- - - - -
on a single basis
Provision for bad debts of notes receivables
by portfolios
Total 2,725,650,950.56 100.00 3,054,808.10 0.11 2,722,596,142.46
Provision for bad debts of notes receivables by portfolios
Unit：RMB
Closing balance
Category
Account balance Credit loss provision Proportion (%)
Bank acceptance bill 2,163,682,034.44 - -
Non-bank acceptance bill 256,303,653.51 1,445,129.90 0.56
Total 2,419,985,687.95 1,445,129.90 0.06
Explanation of provision for bad debts of notes receivables by portfolios:
The Group classifies notes receivable into different portfolios based on the characteristics of the acceptors. The Group
believes that there is no significant credit risk to the acceptors of bank acceptance bills held by the Group, so no loss
provision is made.
Unit: RMB
Provision for bad debts Expected credit loss for the entire duration
Balance as of January 1, 2025 3,054,808.10
Provision for/ Reverse of the current year (1,609,678.20)
Balance as at June 30, 2025 1,445,129.90
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit：RMB
Amount of changes changed in the current reporting period
Category Opening balance Transfer or Closing balance
Provision or reverse
write-off
Notes receivable 3,054,808.10 (1,609,678.20) - 1,445,129.90
Total 3,054,808.10 (1,609,678.20) - 1,445,129.90
Unit: RMB
Aging Closing account balance Opening account balance
Within credit period 18,398,478,364.29 21,885,251,680.47
Within 1 year after exceeding credit period 13,525,612,305.01 13,413,302,524.64
Over 4 years after exceeding credit period 1,289,500,921.05 1,155,004,826.72
Accounts receivable 39,067,135,010.28 41,824,083,460.37
Less: Credit impairment provision 4,228,643,892.65 3,913,954,724.95
Book value 34,838,491,117.63 37,910,128,735.42
Unit: RMB
Closing balance
Category Account balance Credit loss provision Book value
Amount Proportion (%) Amount Proportion (%) Amount
Provision for credit loss on a single basis - - - - -
Provision for credit loss by portfolios 39,067,135,010.28 100.00 4,228,643,892.65 10.82 34,838,491,117.63
Total 39,067,135,010.28 100.00 4,228,643,892.65 10.82 34,838,491,117.63
Opening balance
Category Account balance Credit loss provision Book value
Amount Proportion (%) Amount Proportion (%) Amount
Provision for credit loss on a single basis - - - - -
Provision for credit loss by portfolios 41,824,083,460.37 100.00 3,913,954,724.95 9.36 37,910,128,735.42
Total 41,824,083,460.37 100.00 3,913,954,724.95 9.36 37,910,128,735.42
Provision for credit loss by portfolios for accounts receivable
Unit: RMB
Closing balance
Customer
Account balance Credit loss provision Proportion (%)
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Portfolio A 1,380,472,916.05 12,471,730.29 0.90
Portfolio B 27,869,035,945.24 3,875,300,715.00 13.91
Portfolio C 9,817,626,148.99 340,871,447.36 3.47
Total 39,067,135,010.28 4,228,643,892.65 10.82
Description of credit loss provision by portfolios for accounts receivable:
As part of the Group's credit risk management, the Group uses an impairment matrix to determine expected credit losses
based on the aging of accounts receivable beyond the credit period, and divides the risk characteristics account receivables
into portfolio A, portfolio B and portfolio C according to the risk characteristics of business areas and objects. These three
portfolios involve a large number of customers with the same risk characteristics. Aging information is able to reflect the
solvency of these three types of customers when the accounts receivable are due.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
As of June 30, 2025 and January 1, 2025, the credit risk and expected credit losses during the duration of accounts receivable from portfolio A are as follows:
Unit: RMB
Closing balance Opening balance
Aging Expected average Bad debt Expected average Bad debt
Account balance Book value Account balance Book value
loss rate (%) provision loss rate (%) provision
Within credit period 0.07 1,102,158,520.36 824,513.30 1,101,334,007.06 0.07 2,705,323,605.53 1,944,444.46 2,703,379,161.07
Within 1 year after exceeding credit period 2.76 268,861,437.58 7,419,788.92 261,441,648.66 2.26 554,426,756.05 12,545,412.20 541,881,343.85
Over 4 years after exceeding credit period 100.00 225,895.97 225,895.97 - 100.00 25,824,241.87 25,824,241.87 -
Total 0.90 1,380,472,916.05 12,471,730.29 1,368,001,185.76 2.51 3,382,037,568.78 84,935,468.35 3,297,102,100.43
As of June 30, 2025 and January 1, 2025, the credit risk and expected credit losses during the duration of accounts receivable from portfolio B are as follows:
Unit: RMB
Closing balance Opening balance
Aging Expected average Bad debt Expected average Bad debt
Account balance Book value Account balance Book value
loss rate (%) provision loss rate (%) provision
Within credit period 0.75 9,271,610,646.91 69,435,760.39 9,202,174,886.52 0.88 10,826,359,201.03 94,976,583.91 10,731,382,617.12
Within 1 year after exceeding credit period 5.26 11,764,176,480.69 619,033,114.35 11,145,143,366.34 5.21 11,759,406,126.15 612,261,723.49 11,147,144,402.66
Over 4 years after exceeding credit period 100.00 1,183,057,477.79 1,183,057,477.79 - 100.00 1,036,221,663.88 1,036,221,663.88 -
Total 13.91 27,869,035,945.24 3,875,300,715.00 23,993,735,230.24 12.39 28,763,549,515.79 3,562,845,181.45 25,200,704,334.34
As of June 30, 2025 and January 1, 2025, the credit risk and expected credit losses during the duration of accounts receivable from portfolio C are as follows:
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Closing balance Opening balance
Aging Expected average Bad debt Expected average Bad debt
Account balance Book value Account balance Book value
loss rate (%) provision loss rate (%) provision
Within credit period 0.25 8,024,709,197.02 20,103,468.79 8,004,605,728.23 0.25 8,353,568,873.91 21,130,742.84 8,332,438,131.07
Within 1 year after exceeding credit period 6.04 1,492,574,386.74 90,208,413.78 1,402,365,972.96 6.05 1,099,469,642.44 66,495,406.43 1,032,974,236.01
Over 4 years after exceeding credit period 100.00 106,217,547.29 106,217,547.29 - 100.00 92,958,920.97 92,958,920.97 -
Total 3.47 9,817,626,148.99 340,871,447.36 9,476,754,701.63 2.75 9,678,496,375.80 266,174,075.15 9,412,322,300.65
Unit: RMB
Amount of changes changed in the current reporting period Difference due to foreign
Category Opening balance currency statement Closing balance
Provision / Reversal or Recovery Transfer or write-off translation
Accounts receivable 3,913,954,724.95 326,139,164.92 14,971,371.51 3,521,374.29 4,228,643,892.65
Total 3,913,954,724.95 326,139,164.92 14,971,371.51 3,521,374.29 4,228,643,892.65
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
At the end of the current period, the aggregate amount of the Group's accounts receivable and contract assets (including the part included in other non-current assets) of top five companies
amounted to RMB2, 684,353,418.35 (of which the total amount of accounts receivable is RMB1,321,945,098.46 and the amount of contract assets is RMB1,362,408,319.89), accounting
for 6.39% of the total closing balance of accounts receivable and contract assets (including the part included in other non-current assets), and the amount of provision for bad debts was
RMB340,039,496.28.
Unit: RMB
Closing Balance Opening Balance
Item Provisions for
Account balance Provisions for impairment Book value Account balance Book value
impairment
Constructions 2,646,885,016.10 22,098,932.77 2,624,786,083.33 2,821,485,040.98 23,550,579.80 2,797,934,461.18
Maintenance services 290,321,252.23 2,341,714.61 287,979,537.62 253,714,700.92 2,071,050.36 251,643,650.56
Less:
Contract assets that are
included in other non- 2,013,382,764.98 16,672,579.81 1,996,710,185.17 2,081,248,707.05 17,493,381.00 2,063,755,326.05
current assets (Note (V)
Total 923,823,503.35 7,768,067.57 916,055,435.78 993,951,034.85 8,128,249.16 985,822,785.69
Unit: RMB
Closing Balance
Item Account balance Provisions for impairment Book value
Amount Proportion (%) Amount Provision proportion (%) Amount
Provision for impairment on a single item - - - - -
Provision for impairment by portfolio 2,937,206,268.33 100.00 24,440,647.38 0.83 2,912,765,620.95
Total 2,937,206,268.33 100.00 24,440,647.38 0.83 2,912,765,620.95
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Opening Balance
Item Account balance Provisions for impairment Book value
Amount Proportion (%) Amount Provision proportion (%) Amount
Provision for impairment on a single item - - - - -
Provision for impairment by portfolio 3,075,199,741.90 100.00 25,621,630.16 0.83 3,049,578,111.74
Total 3,075,199,741.90 100.00 25,621,630.16 0.83 3,049,578,111.74
Unit: RMB
Amount of changes changed in the current reporting period Difference due to
Category Opening balance foreign currency Closing balance
Provision / Reversal or Recovery Transfer or write-off
statement translation
Contract assets 25,621,630.16 (1,178,355.48) - (2,627.30) 24,440,647.38
Total 25,621,630.16 (1,178,355.48) - (2,627.30) 24,440,647.38
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 2,157,419,547.76 2,128,242,910.57
Certificate of creditor’s right of account receivables 92,023,750.24 163,405,333.48
Total 2,249,443,298.00 2,291,648,244.05
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Item Derecognized amount as of June 30, 2025
Bank acceptance bill 1,680,042,774.61
Total 1,680,042,774.61
As of June 30, 2025, the Group endorsed to suppliers bank acceptance bills amounting to RMB1,373,309,446.69 that had not yet matured, and discounted to banks bank acceptance bills
amounting to RMB306,733,327.92 that had not yet matured.
no significant credit risk, so no loss provision is made.
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 594,896,780.73 95.94 624,943,424.42 94.03
Over 3 years 3,592,149.82 0.58 4,312,864.67 0.65
Total 620,080,202.34 100.00 664,602,593.01 100.00
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
As of June 30, 2025, the Group's top five balances of prepayments amounted to RMB114,679,580.37, accounting for 18.49% of total closing balance of prepayments.
Unit: RMB
Aging Closing balance Opening balance
Within contract period 330,163,707.44 438,536,805.11
Within 1 year 102,236,062.79 71,996,644.17
Over 4 years 16,009,107.90 15,860,010.64
Total 483,544,080.67 564,651,654.97
Less: Credit impairment provision 35,895,789.97 33,307,048.47
Book value 447,648,290.70 531,344,606.50
Unit: RMB
Nature Closing balance Opening balance
Guarantee deposits 251,491,693.36 240,519,111.89
Temporary payments for receivables 151,645,143.16 116,667,509.52
certificate of creditor’s right of account receivables - 130,609,720.61
Others 80,407,244.15 76,855,312.95
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Nature Closing balance Opening balance
Total 483,544,080.67 564,651,654.97
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for credit loss Expected credit loss for the entire Expected credit loss for the entire
Expected credit losses in the Total
duration (credit impairment has not duration (credit impairment has
next 12 months
incurred) occurred)
Balance on January 1, 2025 1,587,353.47 7,276,075.63 24,443,619.37 33,307,048.47
Balance on January 1, 2025
in the current reporting period
--Transfer into stage 2 (368,049.83) 368,049.83 - -
--Transfer into stage 3 - (1,898,099.52) 1,898,099.52 -
--Accrual/(recovery or reversal) in the current
reporting period
Derecognition of financial assets (including direct
- - (166,740.61) (166,740.61)
write-downs) and transfer out
Other changes 1,138,683.71 - - 1,138,683.71
Balance on June 30, 2025 2,433,772.26 8,197,476.25 25,264,541.46 35,895,789.97
Unit: RMB
Amount of changes in the current reporting period Difference resulted from foreign currency
Category Opening balance Closing balance
Provision/ Recollect or reverse Transfer or write-off statements conversion
Other receivables 33,307,048.47 1,616,798.40 166,740.61 1,138,683.71 35,895,789.97
Total 33,307,048.47 1,616,798.40 166,740.61 1,138,683.71 35,895,789.97
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
At the end of current period, the aggregate amount of other receivables of the top five debtors of the Group was RMB22,879,596.39, accounting for 4.73% of the total balance of other
receivables at the end of the reporting period, and the provision for bad debts amounted to RMB525,575.13.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Closing balance Opening balance
Provision for decline in value of Provision for decline in value of
Category
Account balance inventories/ Impairment provision Book value Account balance inventories/ Impairment provision Book value
for contract performance cost for contract performance cost
Raw materials 6,041,672,147.64 320,950,116.18 5,720,722,031.46 6,112,813,706.01 321,520,672.33 5,791,293,033.68
Work-in-progress 1,005,502,691.62 - 1,005,502,691.62 722,550,293.30 - 722,550,293.30
Finished goods 12,975,727,080.43 1,058,342,747.37 11,917,384,333.06 13,151,518,051.53 990,672,547.73 12,160,845,503.80
Contract performance cost 487,911,581.34 6,595,745.76 481,315,835.58 444,030,393.50 8,007,266.17 436,023,127.33
Total 20,510,813,501.03 1,385,888,609.31 19,124,924,891.72 20,430,912,444.34 1,320,200,486.23 19,110,711,958.11
Unit: RMB
The amount accrued in the The amount reversed or resold in the current Effect on conversion of financial statements
Category Opening balance Closing Balance
current reporting period reporting period denominated in foreign currencies
Raw materials 321,520,672.33 45,488,480.79 46,122,982.35 63,945.41 320,950,116.18
Finished goods 990,672,547.73 162,209,888.49 133,758,591.88 39,218,903.03 1,058,342,747.37
Contract performance cost 8,007,266.17 - 1,411,520.41 - 6,595,745.76
Subtotal 1,320,200,486.23 207,698,369.28 181,293,094.64 39,282,848.44 1,385,888,609.31
The write-offs of provision for inventories in the current reporting period are due to use or sale of inventories.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Item Closing balance Opening balance
Long-term receivables due within one year (Note (V) 12) 755,509,234.02 894,327,647.82
Total 755,509,234.02 894,327,647.82
Unit: RMB
Item Closing balance Opening balance
Deductible VAT input 1,060,000,968.70 901,841,078.74
Prepaid corporate income tax 114,684,374.57 90,832,918.17
Prepaid tariff 15,961,242.36 18,347,927.67
Others 122,511,250.46 60,044,728.52
Total 1,313,157,836.09 1,071,066,653.10
Unit: RMB
Closing balance Opening balance
Item
Account balance Loss provision Book value Account balance Loss provision Book value
Financial leases receivables 264,705,885.59 79,510,188.83 185,195,696.76 286,093,285.46 77,540,673.10 208,552,612.36
Including: Unrealized income from financing 5,149,760.65 - 5,149,760.65 5,907,102.54 - 5,907,102.54
Installments business 986,933,945.83 586,868,856.10 1,051,389,224.08 349,486,719.21 701,902,504.87
Including: Unrealized income from financing 8,613,534.32 - 8,613,534.32 13,619,170.58 - 13,619,170.58
Employee housing loan 287,356,101.62 - 287,356,101.62 364,325,718.68 - 364,325,718.68
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Including: Unrealized income from financing 26,649,334.91 - 26,649,334.91 31,285,136.32 - 31,285,136.32
Subtotal 1,538,995,933.04 479,575,278.56 1,059,420,654.48 1,701,808,228.22 427,027,392.31 1,274,780,835.91
Less: Non-current assets due within one year (Note (V) 10) 1,234,225,241.93 755,509,234.02 1,320,172,837.77 425,845,189.95 894,327,647.82
Total 304,770,691.11 859,270.65 303,911,420.46 381,635,390.45 1,182,202.36 380,453,188.09
Unit: RMB
Closing balance Opening balance
Item
Account balance Loss provision Book value Account balance Loss provision Book value
Provision for bad debts by portfolio (including bad debts due
within one year)
Including: Portfolio of employee 287,356,101.62 - 287,356,101.62 364,325,718.68 - 364,325,718.68
Portfolio of financial leasing and installment
collection customers
Total 1,538,995,933.04 479,575,278.56 1,059,420,654.48 1,701,808,228.22 427,027,392.31 1,274,780,835.91
Portfolio of employee
The Group believes that the employees corresponding to the employee housing loans held by the Group all have labor relations with the Group and the Group assesses that the relevant
debtors have good credit records, and the Group believes that there is no significant credit risk and therefore no loss of provision is made.
Portfolio of financial leasing and installment collection customers
As of June 30, 2025, the credit risk and expected credit losses of long-term receivables relating to financial leasing and installment collection customers are as follows:
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Closing balance
Aging
Account balance Bad debts provision Forecast average loss rate (%)
Within credit period 281,952,285.07 2,001,861.22 0.71
Within 1 year after exceeding credit period 171,187,545.19 7,840,389.58 4.58
Over 4 years after exceeding credit period 227,776,237.00 227,776,237.00 100.00
Total 1,251,639,831.42 479,575,278.56 38.32
Amount of changes in the current reporting period Difference due to
Aging Opening balance foreign currency Closing balance
Provision / Reversal or Recovery Transfer or write-off statement translation
Long-term receivables 427,027,392.31 52,547,886.25 - - 479,575,278.56
Total 427,027,392.31 52,547,886.25 - - 479,575,278.56
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Increase/Decrease in the current reporting period
Closing
Investment Profit
Adjustment: Other Declaration of balance
Opening (Loss) Closing
The invested entity Additional Investment Other Changes cash dividends Impairment for
Balance recognized under others Balance
Investments reduction comprehensive in equity (Note or profit provision impairment
the equity
income 1) distribution provision
Method
Hangzhou Haikang Intelligent
Industrial Equity Investment Fund 868,063,887.91 - - (8,130,418.39) - 18,912,591.70 (49,248,130.84) - - 829,597,930.38 -
Partnership (L.P.)
Zhejiang City Digital Technology
Ltd.
Zhejiang Haishihuayue Digital
Technology Ltd. (hereafter referred 13,704,580.92 - - 449,832.08 - - - - (14,154,413.00) - -
to as Haishihuayue) (Note 2)
Guangxi Haishi Urban Operation
Management Ltd.
Xuzhou Kangbo City Operation
Management Service Ltd.
Other 4,516,484.96 - - (221,369.51) - - - - - 4,295,115.45 -
Subtotal 928,657,559.53 - - (6,529,051.14) - 18,912,591.70 (49,248,130.84) - (14,154,413.00) 877,638,556.25 -
Beijing Taifang Technology LLC 33,609,511.60 - - (1,655,196.98) - 574,613.25 - - - 32,528,927.87 -
Jiaxing Haishi JiaAn Zhicheng
Technology Ltd.
Zhiguang Hailian Big Data
Technology Ltd.
Terapark (Nanjing) Ltd. 17,541,679.23 - - (1,162,135.57) - - - - - 16,379,543.66 -
Other 493,954,327.67 - (576,599.12) 11,404,257.32 - 3,966,321.55 - - - 508,748,307.42 -
Subtotal 598,565,831.26 - (576,599.12) 11,202,773.52 - 4,540,934.80 - - - 613,732,940.46 -
Total 1,527,223,390.79 - (576,599.12) 4,673,722.38 - 23,453,526.50 (49,248,130.84) - (14,154,413.00) 1,491,371,496.71 -
Note 1: The changes in other equity in the period were caused by the changes in equity of the investee due to increase or decrease investments from other shareholders.
Note 2: During the reporting period, the Group incorporated Haishihuayue into its consolidated financial statements and no longer accounted for it as a joint venture. See Note VI. (1).
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Item Closing balance Opening balance
Investments in equity instruments (Note) 514,607,935.55 472,000,082.76
Total 514,607,935.55 472,000,082.76
Note: It refers to the Group's equity investments. The Group has no control, joint control or significant influence over
these invested company.
Unit: RMB
Building and General-purpose Special-purpose Transportation
Item Total
construction equipment equipment vehicles
I. Original cost
reporting period
construction in progress
- 185,184.00 - - 185,184.00
combination.
reporting period
currency statement translation
II. Accumulated depreciation
reporting period
current reporting 11,781,089.25 22,873,844.40 6,170,099.08 1,725,384.77 42,550,417.50
period
currency statement translation
III. Impairment provision
reporting period
- - - - -
reporting period
IV. Book value
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Building and General-purpose Special-purpose Transportation
Item Total
construction equipment equipment vehicles
period
of the period
RMB44,642,772.24.
Unit: RMB
Item Book value Reason for certificates of title not granted
Office building for branches 10,899,744.52 In the process of obtaining the real estate certificates
Nanchang Intelligence Industrial Park 299,531,396.44 In the process of obtaining the real estate certificates
EZVIZ Intelligent Manufacturing Chongqing
Base Project
Total 1,856,304,823.56
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Closing balance Opening balance
Item
Account balance Provision Book value Account balance Provision Book value
Wuhan Science and Technology Park Project 1,661,710,924.66 - 1,661,710,924.66 1,657,649,090.38 - 1,657,649,090.38
HikRobot Intelligent Manufacturing (Tonglu) Base
Project
Infrared Thermal Imaging Products Industrial Base 264,982,679.47 - 264,982,679.47 166,668,535.02 - 166,668,535.02
HikRobot Product Industrial Base Construction
Project
Wuhan Industrial Park Product (Phase II) 80,266,346.78 - 80,266,346.78 13,854,531.11 - 13,854,531.11
EZVIZ Intelligent Manufacturing Chongqing Base Project - - - 1,144,333,377.23 - 1,144,333,377.23
Others 1,131,534,852.43 - 1,131,534,852.43 1,018,414,535.48 - 1,018,414,535.48
Total 4,007,765,610.39 - 4,007,765,610.39 4,699,473,381.21 - 4,699,473,381.21
Unit: RMB
Transferred to fixed Amount invested as Construction in
Budget Increase in the current
Item
(RMB0,000)
Opening balance
reporting period
assets during the current Closing balance proportion of budget Progress Source of funds
reporting period amount (%) (%)
Wuhan Science and Technology 1,661,710,924.6
Park Project 190,102.00 1,657,649,090.38 4,061,834.28 - 87.41% 87.41% Self-fund
HikRobot Intelligent
Manufacturing (Tonglu) Base 107,105.00 498,800,343.68 128,825,615.73 - 627,625,959.41 58.60% 58.60% Self-fund
Project
Infrared Thermal Imaging
Products Industrial Base Product
HikRobot Product Industrial Base
Construction Project
Wuhan Industrial Park Product
(Phase II)
EZVIZ Intelligent Manufacturing
Chongqing Base
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Item Houses and Buildings General Equipment Special-purpose equipment Transportation vehicles Total
I. Original cost
(1) New Lease 51,264,183.48 - - 1,015,797.37 52,279,980.85
(1) The lease contract expires or terminates early 144,399,305.02 - - 3,220,341.81 147,619,646.83
II. Accumulated depreciation
(1) Provisions 98,538,190.20 20,396.33 1,293,329.20 3,032,925.66 102,884,841.39
(1) The lease contract expires or terminates early 119,893,519.18 - - 3,220,341.81 123,113,860.99
III. Book value
Unit: RMB
Item Land use right Intellectual property right Application software Franchise Total
I. Original cost
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Item Land use right Intellectual property right Application software Franchise Total
(1) Purchase 85,883,773.58 479,922.47 6,703,046.82 480,612.61 93,547,355.48
(1) Disposal or write-off - 30,798,357.37 1,764,996.81 141,776.46 32,705,130.64
II. Accumulated amortization
(1) Accrual 19,544,046.14 18,128,593.96 11,757,505.38 3,467,824.50 52,897,969.98
(1) Disposal or write-off - 30,798,357.37 1,337,411.91 113,667.67 32,249,436.95
III. Impairment provision
VI. Book value
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Difference due to
The name of the investee or the matter Opening foreign currency
Increased Decreased Closing balance
that forming a goodwill balance statement
translation
Whst Co., Ltd. and Whst Hebei Co.,
Ltd.
SISTEMAS Y SERVICIOS DE
COMUNICACIÓN, S.A. DE C.V.
Henan HuaAn Baoquan Intelligence
development Ltd. and its subsidiaries
Hangzhou Hikvision Yuanwuzhi
Technology Ltd
Zhejiang Zhiyuan Fire Safety
Engineering Ltd
BK EESTI AKTSIASELTS 4,525,985.93 - - 527,250.87 5,053,236.80
SIA "BK Latvia" 4,519,705.13 - - 526,519.20 5,046,224.33
Total 312,165,129.29 - - 711,973.22 312,877,102.51
Unit: RMB
Difference due to
Other foreign currency
Item Opening balance Increased Amortized Closing balance
decreased statement
translation
Improvement
expenditure for leased 131,556,622.59 21,720,017.98 41,028,978.96 - 3,144,350.12 115,392,011.73
fixed asset
Employee housing loan
deferred interest
Total 162,841,758.91 22,999,931.58 46,361,111.95 583,582.02 3,144,350.12 142,041,346.64
Unit: RMB
Closing balance Opening balance
Item Deductible Deductible
temporary Deferred tax assets temporary Deferred tax assets
differences differences
Provision for impairment losses of assets 1,104,561,744.31 273,304,103.36 1,069,364,511.58 262,572,804.77
Provision for credit loss 4,364,731,565.67 924,303,968.86 4,124,476,014.55 871,658,710.55
Provisions 236,267,646.66 45,433,045.10 222,850,155.25 42,567,907.88
Accrued but unsettled liabilities 2,404,230,586.96 419,535,348.00 2,328,549,255.13 397,756,108.86
Unrealized profit from inter-group
transactions
Changes in the fair value of derivative
financial instruments
Deferred income 836,314,503.19 135,295,082.12 868,928,757.73 138,068,886.25
Changes in the fair value of other non-
current financial assets
Depreciation difference of fixed assets and
amortization difference of intangible assets
Deductible losses 873,491,416.22 141,477,934.16 1,104,881,983.80 174,500,339.85
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Lease liabilities 480,707,648.22 83,737,686.43 542,520,611.31 79,492,726.88
Others 121,598,564.29 34,658,376.26 151,226,802.47 47,687,727.75
Total 14,213,891,232.44 2,635,860,894.89 13,672,159,988.59 2,506,126,169.16
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Depreciation difference of fixed assets and
amortization difference of intangible assets
Investment in joint venture measured by equity
method - partnership
Changes in the fair value of derivative financial
instruments
Changes in the fair value of other non-current
financial assets
Right-of-use assets 465,741,605.70 80,296,274.26 530,138,023.79 77,298,681.61
Valuation and appreciation of assets of business
combinations not under common control
Others 39,603,796.85 11,425,949.51 11,688,743.69 3,097,280.69
Total 2,440,762,745.52 449,484,471.25 2,399,871,085.48 412,646,375.62
Unit: RMB
Closing balance Opening balance
Offset amount at the Deferred tax assets or Offset amount at the Deferred tax assets or
Item
end of the reporting liabilities at the net beginning of the liabilities at the net
period amount after offset reporting period amount after offset
Deferred tax assets 317,070,723.56 2,318,790,171.33 299,935,012.10 2,206,191,157.06
Deferred tax liabilities 317,070,723.56 132,413,747.69 299,935,012.10 112,711,363.52
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Account balance Book value Account balance Book value
provision provision
Contract assets 2,013,382,764.98 16,672,579.81 1,996,710,185.17 2,081,248,707.05 17,493,381.00 2,063,755,326.05
Prepayments for
equipment
Prepayments for
real estate
Prepayments for
acquisition of 3,810,038.67 - 3,810,038.67 89,318,973.58 - 89,318,973.58
land
Prepayments for
infrastructure
Others 51,370.95 - 51,370.95 51,370.95 - 51,370.95
Total 2,151,976,141.97 16,672,579.81 2,135,303,562.16 2,370,654,365.64 17,493,381.00 2,353,160,984.64
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Book value at the end of the current
Item Cause of restriction
reporting period
Cash and bank balances 287,528,681.57 Various guarantee deposits and other restricted funds
Notes receivable 1,328,641,069.96 Endorsed to the supplier, discounted to the bank
Accounts receivable 109,887,827.72 Pledged for long-term borrowings
Contract assets 40,952,482.25 Pledged for long-term borrowings
Fixed assets 44,642,772.24 Fixed assets leased out under operating leases
Intangible assets 11,450,846.86 Pledged for long-term borrowings
Other non-current assets 484,125,599.18 Pledge for long-term borrowings
Total 2,307,229,279.78
Unit: RMB
Book value at the beginning of the
Item Cause of restriction
current reporting period
Cash and bank balances 218,445,956.74 Various guarantee deposits and other restricted funds
Notes receivable 1,274,931,981.36 Endorsed to the supplier, discounted to the bank
Accounts receivable 352,621,694.25 Pledged for long-term borrowings
Contract assets 128,422,846.09 Pledged for long-term borrowings
Fixed assets 54,026,704.89 Fixed assets leased out under operating leases
Intangible assets 12,166,524.79 Pledged for long-term borrowings
Other non-current assets 1,276,495,354.49 Pledge for long-term borrowings
Total 3,317,111,062.61
Unit: RMB
Item Closing balance Opening balance
Fiduciary loan 1,489,895,331.57 997,485,670.23
Discounted but not expired notes (Note(V).3) 40,736,656.29 34,410,142.39
Total 1,530,631,987.86 1,031,895,812.62
Unit: RMB
Item Closing balance Opening balance
Forward foreign exchange contract 55,839,882.40 1,874,341.64
total 55,839,882.40 1,874,341.64
List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Bank acceptance bill 552,245,205.69 1,197,128,746.56
Total 552,245,205.69 1,197,128,746.56
As of June 30, 2025, the Group did not have any unpaid matured notes payable.
Unit: RMB
Item Closing balance Opening balance
Payments for goods 14,654,178,288.39 19,158,300,660.13
Payments for engineering equipment 1,166,198,158.78 1,027,002,447.56
Total 15,820,376,447.17 20,185,303,107.69
Unit: RMB
Item Closing balance Opening balance
Advanced receipts from sales of products 2,461,472,907.88 2,541,743,559.81
Advanced receipts for construction settlement payment 396,988,789.11 342,197,373.57
Advanced receipts from other services 665,887,869.99 544,032,069.70
Subtotal 3,524,349,566.98 3,427,973,003.08
Less: contract liabilities included in other non-current liabilities
(Note (V), 38)
Total 3,380,938,673.00 3,353,943,054.24
Advanced receipts from product sales are prepayments for goods by customers and sales rebates provided to distributors.
Revenue will be recognized when the goods are shipped to or delivered to the customer, and sales rebates provided to
resellers will be recognized when resellers use sales rebates to offset the price.
Advanced receipts from construction settlement payment are the part of the contract price received or receivable from the
customer for the construction project according to the contract according to the contract provisions in excess of the
cumulative completed performance obligations, and the revenue will be recognized according to the performance progress
during the contract period.
Advanced receipts from other services payment are the cloud service fees paid in advance by some customers and the part
of the contract price received or receivable from customers for operation and maintenance according to the contract
provisions that exceeds the cumulative completed performance obligations, and the revenue will be recognized according
to the performance progress during the service period
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
reporting period reporting period
contribution scheme
Total 5,666,415,834.10 9,988,798,767.41 10,721,954,698.42 4,933,259,903.09
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
reporting period reporting period
allowances and subsidies
Including:
Medical insurance
Injury insurance 3,038,734.24 19,483,849.03 18,878,190.11 3,644,393.16
Maternity insurance 69,195.81 1,465,224.64 1,482,796.59 51,623.86
Subtotal 5,555,435,367.90 9,223,073,972.94 9,963,806,324.79 4,814,703,016.05
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Subtotal 110,980,466.20 765,724,794.47 758,148,373.63 118,556,887.04
Note: The Group participates in pension insurance and unemployment insurance plans established by government agencies
in accordance with regulations. According to these plans, the Group pays monthly fees to these plans in proportion to the
payment base. The Group has no other material obligation for the payment of pension benefits beyond the contributions
described above, and corresponding expenses were booked into current profits and losses or corresponding assets.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Item Closing balance Opening balance
Enterprise income tax 937,360,927.40 913,040,846.83
Value-added tax 460,089,341.42 404,940,647.59
City construction and maintenance tax 26,482,901.02 26,303,950.83
Education surcharges 11,263,205.49 11,664,982.93
Local education surcharges 7,818,940.74 8,323,731.96
Others 124,657,182.94 171,661,935.88
Total 1,567,672,499.01 1,535,936,096.02
Unit: RMB
Item Closing balance Opening balance
Dividend payable 19,882,185.64 186,793.11
Other payables 3,328,487,209.96 3,528,172,251.37
Total 3,348,369,395.60 3,528,359,044.48
Unit: RMB
Item Closing balance Opening balance
Dividends payable to minority shareholders 19,882,185.64 186,793.11
Total 19,882,185.64 186,793.11
Unit: RMB
Item Closing balance Opening balance
Unexpired commercial acceptance bills that were endorsed
(Note (V)-3)
Accrued expenses 1,268,986,955.76 1,527,405,326.55
Guarantee and deposit fees 496,674,084.34 477,797,205.49
Collection and payment on behalf 211,352,303.25 209,269,289.66
Other expense payable 63,569,452.94 73,178,590.70
Total 3,328,487,209.96 3,528,172,251.37
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit：RMB
Item Closing balance Opening balance
Long-term borrowings due within one year (Note (V) 34) 3,882,358,841.34 586,589,318.45
Lease liabilities due within one year (Note (V) 35) 176,041,852.76 180,403,223.06
Long-term payables due within one year 25,088.98 38,147.40
Total 4,058,425,783.08 767,030,688.91
Unit: RMB
Item Closing balance Opening balance
Output VAT to be transferred 329,937,625.83 377,117,275.65
Total 329,937,625.83 377,117,275.65
Unit: RMB
Item Closing balance Opening balance
Pledged loan (Note 1) 398,403,527.78 1,033,059,164.49
Credit loan (Note 2) 4,711,743,935.01 4,672,715,153.96
Less：Long-term loans due within one year (Note (V) 32) 3,882,358,841.34 586,589,318.45
Total 1,227,788,621.45 5,119,185,000.00
Note 1: At the end of the reporting period, the pledged loan was mainly obtained by the Group with all the rights and
benefits under related PPP projects pledged. The maturity date interval is from October 10, 2025 to November 5, 2031,
and the annual interest rate ranges from 3.55% to 3.65%.
Note 2: At the end of the reporting period, the maturity period of credit loan is from July 1, 2025 to February 7, 2029, and
the annual interest rate ranges from 1.75% to 3.40%
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 492,547,276.51 555,835,972.74
Less: Lease liabilities due within one year (Note (V), 32) 176,041,852.76 180,403,223.06
Total 316,505,423.75 375,432,749.68
Unit: RMB
Item Closing balance Opening balance
Product quality warranty 332,953,665.17 283,376,593.23
Return payment payable 21,112,475.60 21,873,456.48
Total 354,066,140.77 305,250,049.71
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance
reporting period reporting period
Government Subsidies
(Note (VIII), 1)
Total 874,512,073.53 222,472,816.29 252,764,486.08 844,220,403.74
Unit: RMB
Item Closing balance Opening balance
Contract liabilities (Note (V), 28) 143,410,893.98 74,029,948.84
Total 143,410,893.98 74,029,948.84
Unit: RMB
Changes for the current reporting period
Opening
New issue Bonus Restricted shares Closing balance
balance Others Subtotal
of shares issue buy-back
Total shares 9,233,198,326.00 - - - - - 9,233,198,326.00
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
reporting period reporting period
Share premium 5,560,159,545.00 - - 5,560,159,545.00
Other capital reserves 621,484,720.06 61,736,642.34 - 683,221,362.40
Total 6,181,644,265.06 61,736,642.34 - 6,243,380,907.40
Note: The increase in other capital reserve for the period of RMB41,311,523.21 is formed by share-based payment settled
by equity; RMB20,425,119.13 is formed by the change in other equity interests of the investee in the long-term equity
investment accounted for by the equity method.
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
reporting period reporting period
Outstanding shares 310,044,296.12 1,538,486,901.95 - 1,848,531,198.07
Total 310,044,296.12 1,538,486,901.95 - 1,848,531,198.07
Note: The increase in treasury shares by RMB 1,538,486,901.95 is due to the company repurchasing 52,418,640 shares
through concentrated bidding transactions using its own funds. The repurchased shares are held in the company’s stock
buyback dedicated securities account.
Unit: RMB
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Amounts occurred in the current reporting period
Less: transfer
The before- to current
income-tax Less: Attributable to Attributable to
Opening period P/L
Item amount incurred income owner of the minority Closing balance
balance from previous
during the tax parent company shareholders
current other expense (after tax)
(after tax)
reporting period comprehensiv
e income
Other incomes
that may be
reclassified
(111,510,486.21) 200,301,615.25 - - 133,339,313.91 66,962,301.34 21,828,827.70
subsequently
to profit or
loss
Included:
Effect on
translation of
financial
(111,510,486.21) 200,301,615.25 - - 133,339,313.91 66,962,301.34 21,828,827.70
statements
denominated
in foreign
currencies
Other
comprehensiv (111,510,486.21) 200,301,615.25 - - 133,339,313.91 66,962,301.34 21,828,827.70
e income
Unit: RMB
Increase in the Decrease in the
Item Opening balance current reporting current reporting Closing balance
period period
Statutory surplus reserves 4,715,460,312.00 - - 4,715,460,312.00
Total 4,715,460,312.00 - - 4,715,460,312.00
Note: According to the Company Law of the People's Republic of China and the Company's Articles of Association, the
parent company shall withdraw the statutory surplus reserve fund at 10% of the annual net profit, and when the
accumulated amount of the statutory surplus reserve fund reaches more than 50% of the registered capital, it may not be
withdrew. The statutory surplus reserve can be used to make up for losses or increase the share capital after approval. The
statutory surplus reserves of the Company amount to RMB 4,715,460,312.00, which has reached more than 50% of the
Company’s share capital.
Unit: RMB
Item First half of 2025 First half of 2024
Retained earnings at beginning of period 60,959,912,942.15 57,136,620,244.01
Add: Net profit attributable to owners of the Company for
the current reporting period
Less: Transfer to surplus reserve - -
Dividends payable on common shares (Note) 6,430,241,489.00 8,397,540,837.90
Retained earnings at the end of the current reporting period 60,187,021,251.83 53,803,198,263.40
Note: According to the resolution of 2024 Annual General Meeting held on May 9, 2025, based upon the total capital
share of the Company less the total shares held in the company’s repurchase account, on the equity distribution date, for
each 10 common shares, the Company distributed cash dividends of RMB7.00 (tax inclusive), the rest of retained
earnings were all carried forward for future distributions.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
First half of 2025 First half of 2024
Item
Revenue Cost Revenue Cost
Major business 41,525,014,671.51 22,781,230,283.00 40,917,942,552.86 22,556,478,986.50
Other business 293,025,416.93 138,269,156.04 291,153,653.50 175,862,855.23
Total 41,818,040,088.44 22,919,499,439.04 41,209,096,206.36 22,732,341,841.73
Item First half of 2025 First half of 2024 (Restated)
Products and services for main business (Note) 29,271,794,689.37 30,229,701,063.88
Constructions of main business 780,316,256.46 651,214,618.73
Innovative businesses 11,765,929,142.61 10,328,180,523.75
Including: Robotic business 3,138,354,805.04 2,744,389,603.14
Smart home business 2,752,441,041.15 2,448,684,604.42
Auto electronics business 2,352,287,642.16 1,605,885,368.24
Thermal imaging business 2,008,057,842.03 1,829,997,676.77
Storage business 1,033,275,636.44 1,311,887,493.34
Other innovative businesses 481,512,175.79 387,335,777.84
Total 41,818,040,088.44 41,209,096,206.36
Note: Main business refers to the business parts other than the innovative businesses.
Unit: RMB
First half of 2025
Item
Revenue Cost
Product sales 39,486,263,262.00 21,782,593,005.45
Construction contract 780,316,256.46 587,229,933.62
Provide services 1,258,435,153.05 411,407,343.93
Total 41,525,014,671.51 22,781,230,283.00
Unit: RMB
First half of 2025
Item
Revenue Cost
Recognized at a point in time 39,486,263,262.00 21,782,593,005.45
Recognized over time 2,038,751,409.51 998,637,277.55
Total 41,525,014,671.51 22,781,230,283.00
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Item First half of 2025 First half of 2024
City construction and maintenance tax 148,356,355.71 151,816,573.26
Real estate tax 72,692,986.17 47,598,375.46
Education surcharges 64,211,995.27 66,319,653.41
Local education surcharges 42,807,996.85 44,213,102.45
Stamp duty 36,467,533.81 36,207,653.33
Tax on use of land 12,725,051.59 11,506,221.38
Tax on use of vehicle and vessel 72,047.06 83,439.17
Others 1,578,727.27 1,555,391.96
Total 378,912,693.73 359,300,410.42
Unit: RMB
Item First half of 2025 First half of 2024
Interest expenses 96,167,687.78 240,795,611.48
Interest expense on lease liabilities 10,944,560.30 16,733,448.67
Less: Interest income 281,621,810.18 617,390,094.88
Foreign exchange losses (gains) (606,543,396.00) 81,443,309.39
Less: Capitalized specific loan interests and foreign
- 5,815,514.68
exchange differences on specific loan
Others 41,684,543.70 34,044,538.30
Total (739,368,414.40) (250,188,701.72)
Unit: RMB
Item First half of 2025 First half of 2024
VAT refund 797,785,002.36 836,335,027.54
Special subsidies 347,251,070.73 351,147,745.61
Others 35,635,160.79 47,196,900.37
Total 1,180,671,233.88 1,234,679,673.52
Unit: RMB
Item First half of 2025 First half of 2024
Long-term equity investment gains (losses) based on the equity method 4,673,722.38 (78,368,251.31)
Investment gains (losses) from disposal of derivative financial assets (41,578,674.25) (26,264,330.79)
Investment gains (loss) from the disposal of long-term equity investments. 224,079.88 -
Investment gains (loss) from the derecognition of financial assets measured at
amortized cost.
Others 470,396.18
Total (36,631,451.99) (104,162,185.92)
Unit: RMB
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Sources of gains (losses) from changes in fair values First half of 2025 First half of 2024
Gains (losses) on the changes in fair value of derivative financial assets (26,750,323.93) 6,775,026.08
Gains (losses) from changes in fair value of other non-current financial assets 37,607,852.79 12,581,839.26
Gains (losses) on the changes in fair value of derivative financial liabilities (53,974,972.19) 31,032,277.28
Total (43,117,443.33) 50,389,142.62
Unit: RMB
Item First half of 2025 First half of 2024
Credit impairment gains (losses) of notes receivable 1,609,678.20 1,022,542.63
Credit impairment gains (losses) of accounts receivable (326,139,164.92) (361,907,447.88)
Credit impairment gains (losses) of other receivables (1,616,798.40) (4,470,550.60)
Credit impairment gains (losses) of long-term receivables (52,547,886.25) (54,064,790.38)
Total (378,694,171.37) (419,420,246.23)
Unit: RMB
Item First half of 2025 First half of 2024
Gains (losses) on inventory devaluation (205,498,860.45) (203,890,134.45)
Gains (losses) on impairment of fixed assets。 (4,245,701.67) -
Gains (losses) on contract assets impairment (including the portion included in other
non-current assets)
Total (208,566,206.64) (204,108,927.43)
Unit: RMB
Item The amount booked into current period
First half of 2025 First half of 2024
non-recurring profits and losses
Fines and confiscations 27,598,142.65 27,691,136.30 27,598,142.65
Government subsidies 1,294,315.29 560,762.64 1,294,315.29
Others 4,064,739.98 8,551,822.93 4,064,739.98
Total 32,957,197.92 36,803,721.87 32,957,197.92
Unit: RMB
The amount booked into current period non-
Item First half of 2025 First half of 2024
recurring profits and losses
Local water conservancy construction fund 1,721,616.80 1,655,486.04 -
Others 5,600,817.73 10,591,560.87 5,600,817.73
Total 7,322,434.53 12,247,046.91 5,600,817.73
Unit: RMB
Item First half of 2025 First half of 2024
Current income tax expenses 1,213,540,999.19 1,019,741,807.14
Deferred income tax expenses (95,153,343.99) (19,198,745.64)
Differences in filing and payment of income tax in previous reporting years (358,973,681.46) (339,687,179.69)
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Item First half of 2025 First half of 2024
Total 759,413,973.74 660,855,881.81
Other cash receipts relating to operating activities
Unit: RMB
Item First half of 2025 First half of 2024
Interest income 233,121,669.73 562,225,054.99
Government subsidies 318,253,716.23 232,080,464.37
Others 261,580,950.83 287,369,792.62
Total 812,956,336.79 1,081,675,311.98
Other cash payments relating to operating activities
Unit: RMB
Item First half of 2025 First half of 2024
Office expenses and business expenses 953,595,728.54 942,944,604.61
Advertising and Selling services 769,106,416.13 756,539,170.44
R&D expenses 644,800,758.58 708,840,100.60
Travelling expenses 378,323,798.80 385,658,461.60
Shipping and transportation expenses 197,908,262.99 222,787,187.81
Rental expenses 43,518,098.53 36,886,482.65
Others 374,687,982.00 419,191,141.16
Total 3,361,941,045.57 3,472,847,148.87
Other cash receipts relating to investing activities
Unit: RMB
Item First half of 2025 First half of 2024
Receipts of financing lease payments 35,361,878.15 43,213,496.63
Net Cash Received from Acquiring Subsidiaries and Other
Business Units (Notes (V) 57(2))
Total 58,311,055.86 43,213,496.63
Other cash payments relating to financing activities
Unit: RMB
Item First half of 2025 First half of 2024
Repurchase of outstanding shares 1,538,486,901.95 -
Repayment of lease liabilities 104,168,573.61 139,467,522.24
Consideration paid for acquisition of minority interests - 10,380,041.54
Repurchase of restricted shares - 2,721,675,044.32
Others - 6,155,000.00
Total 1,642,655,475.56 2,877,677,608.10
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Supplementary information First half of 2025 First half of 2024
Net profit 6,281,476,630.83 5,640,664,710.62
Add: Impairment losses of assets 208,566,206.64 204,108,927.43
Credit impairment losses 378,694,171.37 419,420,246.23
Fixed assets depreciation 778,654,426.95 661,432,367.20
Amortization of right-of use assets 102,884,841.39 142,360,590.66
Amortization of intangible assets 52,897,969.98 49,846,847.99
Amortization of Long-term deferred expenses 46,361,111.95 46,913,850.89
Losses (gains ) on disposal of fixed assets, intangible assets and other long-
(7,386,351.06) 11,772,875.69
term assets
Obsolescence losses (gains) from fixed assets 37,218.90 173,873.26
Losses (gains) from changes in fair value 43,117,443.33 (50,389,142.62)
Financial expenses 53,314,962.31 141,874,947.35
Investment losses (gains) 36,680,871.99 104,162,185.92
Share-based payment based on equity settlement 56,631,332.08 732,525,154.53
Decrease (increase) of restricted funds (67,101,426.08) 37,887,743.86
Decrease (Increase) in deferred income tax assets (114,855,728.16) (36,396,098.44)
Increase (decrease) in deferred income tax liabilities 19,702,384.17 26,114,618.42
Decrease (increase) in inventories (251,612,593.04) (12,953,207.87)
Decrease (increase) in operating receivables 3,595,520,825.49 (1,468,125,265.31)
Increase (decrease) in operating payables (5,840,272,991.36) (6,721,403,222.83)
Increase (decrease) in deferred income (30,291,669.79) (119,628,043.88)
Net cash flows from operating activities 5,343,019,637.89 (189,636,040.90)
Closing balance of cash 30,998,547,844.79 33,954,198,101.43
Less: Opening balance of cash 36,053,042,380.29 49,427,967,355.78
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase (decrease) in cash and cash equivalents (5,054,494,535.50) (15,473,769,254.35)
Unit: RMB
Amount
The cash or cash equivalents paid for the business combination in the current period. -
Among them: Zhejiang Haishihuayue Digital Technology Co., Ltd. -
Less: Cash and cash equivalents held by subsidiaries at the acquisition date 22,949,177.71
Among them: Zhejiang Haishihuayue Digital Technology Co., Ltd. 22,949,177.71
Net cash paid for acquisition of subsidiaries (22,949,177.71)
Included in: Cash received from other investing activities 22,949,177.71
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Item Closing balance Opening balance
Cash 30,998,547,844.79 36,053,042,380.29
Including: Cash on hand 879,446.96 682,023.34
Bank deposit for payment at any time 30,857,335,935.34 35,933,926,817.28
Other monetary capital for payment at any time 140,332,462.49 118,433,539.67
Cash equivalents - -
Closing balance of cash and cash equivalents 30,998,547,844.79 36,053,042,380.29
Unit: RMB
Balance in foreign currency at Exchange rate for Balance of RMB converted at the
Item
the end of the reporting period conversion end of the reporting period
Cash and bank balances
Including: USD 441,931,660.24 7.1586 3,163,611,983.02
EUR 52,257,587.19 8.4024 439,089,150.62
Accounts receivable
Including: USD 342,454,590.69 7.1586 2,451,495,432.91
EUR 139,676,681.38 8.4024 1,173,619,347.63
Accounts payable
Including: USD 29,547,109.77 7.1586 211,515,940.00
EUR 429,730.65 8.4024 3,610,768.81
The company leases a number of assets, including houses and buildings s, general-purpose equipment, special-purpose equipment and
transportation vehicles, ranging from 1 month to 13 years. Such assets cannot be used for loan, mortgage, guarantee and other purposes.
The total amount of short-term lease expenses and lease expenses of low-value assets included in profit or loss for the period was
RMB53,291,060.46 (the first half of 2024: RMB47,090,864.02).
The total lease-related cash outflows for the reporting period is RMB 157,459,634.07 (the first half of 2024: RMB186,558,386.26).
Operating lease as a lessor
Unit: RMB
Including: income related to variable lease payments
Item Income from leasing
that are included in lease receipts
Special-purpose equipment 47,644,977.63 -
Total 47,644,977.63 -
The Group's operating lease as a lessor relates to Special-purpose equipment.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Finance lease as a lessor
Unit: RMB
Income related to variable lease
Item Profits on sales Profits on financing payments that are not included
in net lease investments
Special-purpose equipment -
finance lease
Total 7,743,409.59 2,077,132.08 -
As a lessor, the Group entered into financial lease contracts with customers in relation to Special-purpose equipment.
VI. Changes in consolidation scope
Haishihuayue
On January 14, 2020, the Group, together with Taizhou Huangyan Broadnet Co., Ltd. (hereinafter referred to as
"Huangyan Broadnet") and Taizhou Huangyan Science and Technology Innovation Investment Co., Ltd. (hereinafter
referred to as "Huangyan Sci-Tech"), jointly established Haishihuayue with respective equity interests of 51%, 29%,
and 20%. The equity interests are consistent with the voting rights each shareholder has at the shareholders’ meeting.
According to the articles of association of Haishihuayue, all matters require approval by shareholders representing
more than two-thirds of the voting rights, thus the Group, Huangyan Broadnet, and Huangyan Sci-Tech jointly
controlled Haishihuayue. On February 14, 2025, the Haishihuayue shareholders’ meeting resolved to revise the
articles of association, changing the provision that major matters relating to the company’s development strategy
and long-term planning must be approved by shareholders representing more than two-thirds of the voting rights to
approval by shareholders representing more than one-half of the voting rights. As a result, the Group can now control
Haishihuayue’s financial and operating decisions and holds substantive control over it. Therefore, Haishihuayue has
been included in the consolidated financial statements of the Group.
Unit: RMB
Income of Net profit (loss)
Share acquiree from of acquiree from
Name of the Month of ration of Methods for Date of Basis for the acquisition the acquisition
Cost of acquisition determining the data to the end
acquiree acquisition acquisition acquisition acquisition data to the end
(%) acquisition of the reporting of the reporting
date. period period
Changes in Obtain control
Haishihuayue Feb, 2025 14,154,413.00 51.00 Feb 14, 2025 26,207,524.56 1,916,840.47
voting rights right
Unit: RMB
Cost of business combination Haishihuayue
Cash -
Fair value of equity held before the acquisition date 14,154,413.00
Total merger cost 14,154,413.00
Less: Fair value share of identifiable net assets acquired 14,154,413.00
Goodwill -
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Haishihuayue (Note)
Fair value on the date of acquisition Book value on the date of acquisition
Assets:
Cash and bank balances 24,930,476.46 24,930,476.46
Notes receivable 1,242,250.00 1,242,250.00
Accounts receivable 40,297,545.82 40,297,545.82
Prepayments. 46,794.09 46,794.09
Other receivable 1,070,887.39 1,070,887.39
Inventories 8,021,077.90 8,021,077.90
Contract assets 45,861,982.11 45,861,982.11
Other current assets 2,821,926.06 2,821,926.06
Fixed assets 185,184.00 185,184.00
Deferred tax assets 580,174.88 580,174.88
Total assets 125,058,298.71 125,058,298.71
Liabilities:
Notes payable 5,080,235.36 5,080,235.36
Account payable 78,999,910.54 78,999,910.54
Contract liabilities 3,640,940.95 3,640,940.95
Payroll payable 591,578.22 591,578.22
Taxes payable 611,150.65 611,150.65
Other payable 1,076,140.12 1,076,140.12
Other current liabilities 7,304,591.88 7,304,591.88
Total liabilities 97,304,547.72 97,304,547.72
Net assets acquired: 27,753,750.99 27,753,750.99
Less: Minority interest 13,599,337.99 13,599,337.99
Net assets obtained 14,154,413.00 14,154,413.00
Note: The Group’s management believes that the fair value of Haishihuayue’s identifiable assets and liabilities is close
to their book value, therefore the fair value of the relevant identifiable assets and liabilities is determined based on the
book value.
Newly established subsidiaries which are included in the scope of consolidation in the reporting period are as follows:
Name for the subsidiaries Date of establishment Registration capital
Guangzhou Hikvision Digital Technology Ltd. April 2025 RMB20,000,000
Hangzhou Micro Imaging Intelligent Control
May 2025 RMB100,000,000
Technology Ltd.
Hikvision Kyrgyzstan Limited Liability
May 2025 KGS8,740,000
Company
Note: At the end of the period, these three companies above had not completed the payment of their registration capital.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
VII. Interest in other entities
Composition of major subsidiaries of the Group
Name Location of operation Place of registration Nature of business Acquisition method
Hangzhou Hikvision System Technology Ltd. Hangzhou Hangzhou, Zhejiang System integration, Technology development Establishment
Hangzhou Hikvision Technology Ltd. Hangzhou Hangzhou, Zhejiang Manufacture Establishment
Hangzhou EZVIZ Network Co., Ltd. Hangzhou Hangzhou, Zhejiang Technology development Establishment
Hangzhou EZVIZ Software Ltd. Hangzhou Hangzhou, Zhejiang Technology development Establishment
Hangzhou Hikrobot Co., Ltd. Hangzhou Hangzhou, Zhejiang Technology development Establishment
Hangzhou Haikang Intelligent Technology Ltd. Hangzhou Hangzhou, Zhejiang Technology development Establishment
Unit：RMB
Closing balance / Amount for the first half of 2025 Opening balance / Amount for the first half of 2024
Associates:
The aggregate book value of investments in associates 613,732,940.46 598,565,831.26
The aggregate amount of the following items calculated based on the Company's equity share percentage
of the associates
- Net income 11,202,773.52 3,541,678.25
- Other comprehensive income - -
- Total comprehensive income 11,202,773.52 3,541,678.25
Joint Ventures:
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Closing balance / Amount for the first half of 2025 Opening balance / Amount for the first half of 2024
Total investment book value 877,638,556.25 928,657,559.53
The aggregate amount of the following items calculated based on the Company's equity share percentage
of the associates
- Net gain (loss) (6,529,051.14) (81,909,929.56)
- Other comprehensive income - -
- Total comprehensive income (loss) (6,529,051.14) (81,909,929.56)
VIII. Government subsidiaries
Unit: RMB
Amount at the open of the Transfer to other income in the Amount at the close of the
Liabilities Increase in the reporting period Asset-related /revenue-related
reporting period reporting period reporting period
Special subsidy 814,219,130.60 80,363,799.44 80,906,700.80 813,676,229.24 Asset-related
Special subsidy 60,292,942.93 142,109,016.85 171,857,785.28 30,544,174.50 Revenue-related
Total 874,512,073.53 222,472,816.29 252,764,486.08 844,220,403.74
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Subsidy Projects First half of 2025 First half of 2024
VAT refund 797,785,002.36 836,335,027.54
Special subsidy 348,545,386.02 351,708,508.25
Total 1,146,330,388.38 1,188,043,535.79
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
IX. Risks associated with financial instrument
The Group's principal financial instruments include cash and bank balances, other non-current financial assets, notes
receivable, accounts receivable, receivables for financing, other receivables, long-term receivables, some of other non-
current assets, borrowings, notes payable, accounts payable, other payables, long-term payables, derivative financial
instruments, etc. Details of these financial instruments are set out in Note (V). Below are the risks associated with such
financial instruments and the risk management policies adopted by the Group to mitigate such risks. The management of
the Group manages and monitors such risk exposures to ensure such risks are contained within a prescribed scope.
Unit: RMB
Closing balance of the current Opening balance of the current
Items
reporting period reporting period
Financial assets：
Measured at fair value through current profit and loss
Derivative financial assets 25,600.00 26,775,923.93
Other non-current financial assets 514,607,935.55 472,000,082.76
Measured at fair value through other comprehensive income
Receivables for financing 2,249,443,298.00 2,291,648,244.05
Measured at amortized cost
Cash and bank balances 31,286,076,526.36 36,271,488,337.03
Notes receivable 2,418,540,558.05 2,722,596,142.46
Accounts receivable 34,838,491,117.63 37,910,128,735.42
Other receivables 447,648,290.70 531,344,606.50
Other non-current assets 51,370.95 51,370.95
Long-term receivables (including those due within one year) 1,059,420,654.48 1,274,780,835.91
Financial liabilities:
Measured at fair value through current profit and loss
Derivative financial liabilities 55,839,882.40 1,874,341.64
Measured at amortized cost
Short-term borrowings 1,530,631,987.86 1,031,895,812.62
Notes payable 552,245,205.69 1,197,128,746.56
Accounts payable 15,820,376,447.17 20,185,303,107.69
Other payables 3,348,369,395.60 3,528,359,044.48
Long-term borrowings (including those due within one year) 5,110,147,462.79 5,705,774,318.45
Long-term payables (including those due within one year) 9,808,880.46 9,818,368.20
The Group adopts sensitivity analysis techniques to analyze the possible effects of rational and probable changes in risk
variables to profit or loss for the period or to the interests of shareholders. Since risk variables seldom change on a stand-
alone basis, while the correlation between variables may have significant influence to the ultimate amount of change
effected by the change in a single risk variable, the analysis below is based on the assumption that the changes in each
variable occurred separately.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The Group engages in risk management with the aim of achieving an appropriate balance between risk and return, where
the negative effects of risks against the Group's operating results are minimized, in order to maximize the benefits of
shareholders and other stakeholders. Based on such objective in risk management, the underlying strategy of the Group's
risk management is to ascertain and analyze all types of risks exposures of the Group, establish appropriate risk tolerance
thresholds, carry out risk management procedures and perform risk monitoring on all kinds of risks in a timely and reliable
manner, thus containing risk exposures within a prescribed scope.
Foreign exchange risks refer to the risk that losses will occur because of changes in foreign exchange rates. The Company
is primarily exposed to risks relating to the currencies such as USD, EUR and etc. The Group's subsidiaries in the mainland
of China whose procurement, sales and financing are denominated in RMB, USD and EUR, other principal activities are
settled in RMB. The Group's subsidiaries in China Hong Kong and outside China are principally engaged in procurement,
sales, financing and other major business activities in local currencies such as USD, EUR and etc.
At the end of the reporting period, except for monetary items of foreign currencies set out in Note (V) 58, the Group
mainly adopted the functional currency of each of its subsidiary to present the balance of its assets and liabilities. The
foreign exchange risks arising from assets and liabilities denominated in USD and EUR (which has been converted into
RMB) as follows may generate significant impact on the operating results of the Group.
Unit: RMB
Assets Liabilities
Currencies
Closing balance Opening balance Closing balance Opening balance
USD 5,615,107,415.93 6,115,192,672.24 211,515,940.00 491,667,514.41
EUR 1,612,708,498.25 1,636,384,469.30 3,610,768.81 6,610,732.62
The Group has been paying close attention to the effect of fluctuation in exchange rate on the foreign exchange risks of
the Group, and has purchased various financial derivative instruments, such as forward foreign exchange contracts and
etc., to mitigate the foreign exchange risk exposure.
Sensitivity analysis on exchange rate risk
The sensitivity analysis of the Group's foreign exchange risk includes only monetary items denominated in foreign
currencies and does not consider the impact of the purchased derivative financial instruments.
With other variables unchanged, the exchange rate might float within a reasonable range, and has the following before-
tax effect on profit or loss and shareholders' equity for the current period:
Unit: RMB
First half of 2025 First half of 2024
Change in foreign exchange rates Effect on shareholders' Effect on shareholders'
Effect on profit Effect on profit
equity equity
functional currency
(270,179,573.80) (270,179,573.80) (192,964,852.87) (192,964,852.87)
functional currency
functional currency
(80,454,886.47) (80,454,886.47) (62,001,009.88) (62,001,009.88)
functional currency
The risk of changes in cash flow of financial instruments due to changes in interest rates exposed to the Group are primarily
related to bank borrowings bearing floating interest rate (please refer to (Note (V) 24) and (Note (V) 34) and bank deposits
bearing floating interest rate. The Group's risks of changes in the fair value of financial instruments due to changes in
interest rates are related to fixed-rate bank borrowings (please refer to (Note (V) 24) and (Note (V) 34) and fixed-rate bank
deposits.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The Group determines the relative proportion of fixed interest rate contracts and floating interest rate contracts based on
the prevailing market environment. On June 30, 2025, the Group's total long-term and short-term interest-bearing debts
bearing fixed interest rates amounted to RMB5,935,519,860.03 (December 31, 2024: RMB5,538,078,464.46). The total
amount of long-term and short-term interest-bearing debts bearing floating interest rates is RMB664,522,934.33
(December 31, 2024: RMB1,165,181,524.22).
At present, the Group does not have any interest rate swap arrangements and will continue to pay close attention to the
impact of changes in borrowing interest rates on the interest rate risk of the Group, and will make timely adjustments
according to the latest market conditions.
The Group expects that the exposure to cash flow risk arising from floating-rate bank deposits and the exposure to changes
in fair value arising from fixed-rate bank deposits are not significant.
The Group's price risk mainly arises from investments in held-for-trading equity instruments and derivative financial
instruments. Held-for-trading equity instrument investments are all investments in unlisted held-for-trading equity
instruments.
The Group is exposed to price risk due to the holding of financial assets measured at fair value. The fair value of certain
financial instruments is determined by the general pricing model based on discounted future cash flow method or other
valuation techniques, while the valuation techniques are based on certain valuation assumptions. Therefore, the valuation
results are highly sensitive to valuation assumptions. However, at the end of the current reporting period, the amount of
investment in held-for-trading equity instruments and derivative financial instruments is not significant, and the risk
exposure due to changes in price of financial instruments as a result of change in valuation assumptions is not significant,
accordingly, no sensitivity analysis is conducted.
As of June 30, 2025, the largest credit risk exposure that may result in financial losses of the Group is mainly due to the
loss of the Group's financial assets arising from the failure of the counterparty to perform its obligations, including: cash
and bank balance (Note (V). 1), notes receivable (Note (V). 3), accounts receivable (Note (V). 4), receivables for financing
(Note (V). 6), other receivables (Note (V). 8), contract assets (Note (V). 5) and (Note (V). 22), non-current assets due
within one year (Note (V). 10), long-term receivables (Note (V). 12), etc., and derivative financial assets that are not
included in the scope of impairment assessment and are measured at fair value through current profit or loss (Note (V). 2).
As of the balance sheet date, the book value of the Group's financial assets represents its maximum credit risk exposure.
In order to reduce credit risk, the Group has arranged a team to determine the credit limit, conduct credit approval, and
implement other monitoring procedures to ensure that necessary measures are taken to recover over-due debt. In addition,
the Group reviews the recovery of financial assets on each balance sheet date to ensure that sufficient credit loss provisions
are made for relevant financial assets. Therefore, the management of the Group believes that the credit risk exposure of
the Group has been reduced significantly.
The credit risk on cash and bank balances of the Group is low as they are deposited with banks with high credit ratings.
For accounts receivable, contract assets and long-term receivables, the Group has put in place relevant policies to control
credit risk exposure. The Group assesses credit quality of customers and sets corresponding credit period based on the
customer's financial status, the possibility of obtaining guarantees from third parties, credit history and other factors such
as current market conditions. The Group will regularly monitor the credit history of its customers. For customers with
poor credit history, the Group takes various measures, such as written payment reminders, shorten or cancel the credit
period, to ensure that the overall credit risk of the Group is maintained in a controllable range. For accounts receivable
and contract assets, the Group uses a simplified method, that is, to measure the loss provision based on the amount
equivalent to the expected credit loss for the entire duration. For details of the relevant expected credit loss measurement,
see (Note (V). 4 & Note (V).5. For long-term receivables, the Group calculates the expected credit losses based on the
expected credit loss rate in the next 12 months or the entire duration based on the default risk exposure. For details of the
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
related expected credit loss measurement, see Note ((V). 12).
With respect to bank acceptance bills and receivables debt certificates, the Company believes that there is no significant
credit risk and will not incur any significant losses due to the default of the counterparty. For financial company acceptance
bills and commercial acceptance bills, the Company has set relevant policies to control credit risk exposure. The Company
evaluates the credit status of the acceptor based on its financial position, credit history and other factors, such as current
market conditions, and sets an internal credit rating for the acceptor. The Company regularly monitors the credit records
of the acceptors, and for the acceptors with bad credit records, the Company adopts written reminders and other means to
ensure that the overall credit risk is within a controllable range. For the acceptance bills and commercial acceptance bills
receivable from financial companies, the Group calculates the expected credit loss based on the default risk exposure based
on the expected credit loss ratio in the entire duration, and the relevant expected credit loss measurement is detailed in
(Note (V) 3).
For other receivables, the Group regularly monitors the debtor's credit history. For debtors with poor credit history, the
Group takes various measures such as written payment reminders to ensure that the Group's overall credit risk is
maintained in a controllable range. For other receivables, the Group calculates the expected credit loss based on the
expected credit loss ratio in the next 12 months or the entire duration based on the default risk exposure. For details of the
relevant expected credit loss measurement, see (Note (V). 8).
The Group's risk exposure is distributed among multiple contractors and multiple customers, so the Group has no
significant credit concentration risk.
The Group maintains and monitors a level of cash and cash equivalents deemed adequate by the management to meet the
operation needs of the Group and to reduce the effect of cash flow movements when managing liquidity risk. The
management of the Group monitors the usage of bank borrowings, and ensures compliance with borrowing agreements.
According to the term to maturity of non-discounted and remaining contract obligations, the financial liabilities held by
the Group are analyzed as below:
Unit：RMB
June 30, 2025
Within one year 1-5 years More than five years Total
Non-derivative financial liabilities
Short-term borrowings 1,566,225,378.14 - - 1,566,225,378.14
Notes payable 552,245,205.69 - - 552,245,205.69
Accounts payable 15,820,376,447.17 - - 15,820,376,447.17
Other payables 3,348,369,395.60 - - 3,348,369,395.60
Long-term borrowings (including those due
within one year)
Long-term payables (including those due
within one year)
Derivative financial instruments 55,839,882.40 - - 55,839,882.40
X. Fair value disclosure
Unit：RMB
Closing fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value measurement - 2,193,629,015.60 514,607,935.55 2,708,236,951.15
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
(I) Derivative financial assets - 25,600.00 - 25,600.00
- 25,600.00 - 25,600.00
through profit and loss
(II) Other non-current financial assets - - 514,607,935.55 514,607,935.55
- - 514,607,935.55 514,607,935.55
through profit and loss
(III) Receivables for financing - 2,249,443,298.00 - 2,249,443,298.00
- 2,249,443,298.00 - 2,249,443,298.00
through other comprehensive income
Total assets measured continuously at fair
- 2,249,468,898.00 514,607,935.55 2,764,076,833.55
value
(IV) Derivative financial liabilities - 55,839,882.40 - 55,839,882.40
- 55,839,882.40 - 55,839,882.40
value through profit and loss
Total liabilities measured continuously at
- 55,839,882.40 - 55,839,882.40
fair value
Unit: RMB
Fair value at
Estimation technique Inputs
June 30, 2025
Forward exchange rate
Discounted cash flow
Derivative financial assets 25,600.00 Discounted rate that reflects the
approach
credit risk of counterparty
Forward exchange rate
Discounted cash flow
Derivative financial liabilities 55,839,882.40 Discounted rate that reflects the
approach
credit risk of counterparty
Discounted cash flow Discounted rate that reflects the
Receivables for financing 2,249,443,298.00
approach credit risk of counterparty
Unit: RMB
Fair value at
Items Valuation techniques Inputs
June 30, 2025
Comparable public companies' PB
Other non-current financial assets-- Market approach/Income (price/book value) ratio within the
Investment in equity instruments approach same industry/Future cash flows,
Discount rate
item
Unit: RMB
Other non-current financial assets Amount
Book value on January 1, 2025 472,000,082.76
Increase in the current reporting period 5,000,000.00
Changes in fair value booked into profit and loss during the current reporting period 37,607,852.79
Book value on June 30, 2025 514,607,935.55
The total amount included in profit or loss in the first half of 2025 includes unrealized gains of RMB37,607,852.79 (first
half of 2024: RMB12,581,839.26) related to financial assets measured at fair value at the end of the current reporting
period, and such gains or losses are included in the gains or losses from changes in fair value.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
There was no estimation technique change for the current reporting period
The Group's management team believes that financial assets and financial liabilities measured at amortized cost mainly
include cash and bank balances, notes receivable, accounts receivable, other receivables, some other non-current assets,
non-current assets due within one year, long-term receivables, short-term borrowings, notes payable, accounts payable,
other payables, non-current liabilities due within one year, long-term borrowings, long-term payables, etc., book value of
which approximates to its fair value.
XI. Related party relationships and transactions
Shareholding ratio of Percentage of voting
Place of Nature of
Name Registered capital parent company in the rights of parent company
registration business
Company (%) to the Company (%)
China Electronics Technology
Hangzhou, Industrial
HIK Group Co., Ltd. RMB845 million 37.01 37.01
Zhejiang investment
(CETHIK)
The actual controlling party of the Company is CETC.
For details of the subsidiaries of the Company, see (Note (VII.1)).
Joint ventures and associates that had related party transactions with the Group in the current reporting period, or in the
prior periods and formed balances are as follows:
Name of the associates or joint ventures Relationship with the Company
Maxio Technology (Hangzhou) Co., Ltd. and its subsidiaries (Note 1) Associate
Zhiguang Hailian Big Data Technology Ltd. and its subsidiaries (Note 1) Associate
Jiaxing Haishi JiaAn Zhicheng Technology Ltd. (Note 1) Associate
Sanmenxia Xiaoyun Vision Technology Ltd. (Note 1) Associate
Beijing Taifang Technology LLC. and its subsidiaries (Note 1) Associate
Jiangsu Haishi Kaitai Technology Ltd. (Note 1) Associate
Guangxi Haishi City Operation Management Ltd. and its subsidiaries (Note 2) Joint venture
Shenzhen Haishi City Service Operation Ltd. and its subsidiaries (Note 2) Joint venture
Xuzhou Kangbo City Operation Management Service Ltd. (Note 2) Joint venture
Yunnan Yinghai Parking Service Ltd. (Note2) Joint venture
Zhejiang City Digital Technology Ltd. (Note 2) Joint venture
Zhejiang Haishihuayue Digital Technology Ltd. (Note 3) Joint venture
Note 1: Those companies are collectively referred to as "associates" in the following disclosures of related party
transactions, receivables from related parties, and payable from related parties.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Note 2: Those companies are collectively referred to as "joint ventures" in the following disclosures of related party
transactions, receivables from related parties, and payable from related parties.
Note 3: From January 2020 to February 2025, Haishihuayue was a joint venture of the Company. In February 2025, the
Company included Haishihuayue in its consolidated financial statements. The company remained an affiliate of the Group
during the period from January 2025 to February 2025.
Name (Note 1) Relationship
Close family member of the Company’s above 5% shareholder(s)
Shanghai Fullhan Microelectronics Co., Ltd. and its subsidiaries act(s) as controller(s) or person(s) acting in concert with the
controller(s) of this company
Close family member of the Company’s above 5% shareholder(s)
Guangdong Hutong Technology Ltd.
acts as the director of this company
Shareholder(s) that hold(s) more than 5% shares of the Company
Shenzhen Guoteng'an vocational education Technology Ltd.
serve(s) as the director(s) of this company
The Group's senior management serve(s) as director(s) of this
Confirmware Technology (Hangzhou) Co., Ltd. and its subsidiaries
company
Zhejiang Fast Line data fusion Information Technology Co., Ltd. The Group's senior management serve(s) as director(s) of this
and its subsidiaries company
Chengdu Guoshengtianfeng Network Technology Ltd. and its The Group's senior management serve(s) as director(s) of this
subsidiaries company
Shenzhen Wanyu Security Service Technology Ltd. and its The Group's senior management serve(s) as director(s) of this
subsidiaries company
The Group's independent director(s) serve(s) as director(s) of this
Ningbo Industrial Internet Research Institute Ltd.
company
The Group's chairman(chairmen) of Board of the Supervisors
INESA Group Ltd. and its subsidiaries
was(were) the director(s) of this company
The Group's chairman(chairmen) of Board of the Supervisors
Shanghai Vico Precision Mold & Plastics Co.,Ltd. (Note 2)
was(were) the independent director(s) of this company
The Group's chairman(chairmen) of Board of the Supervisors acts
Bank of Tianjin Co., Ltd. and its subsidiaries
as the independent director(s) of this company
Under common control of the actual controlling party of the
Subsidiaries of CETC (Note3)
Company
Note 1: Those companies (excluding subsidiaries of CETC) are collectively referred to as "other related parties" in the
following disclosures of related party transactions, receivables from related parties, and payable from related parties.
Note 2: Lu Jianzhong, the Group's chairman of Board of the Supervisors, once served as an independent director of the
company. Lu Jianzhong departed the company in June 2024. Therefore, this company was still recognized as a related
party of the Company during 2024 and from Jan 2025 to June 2025.
Note 3: Subsidiaries of CETC, excluding Hikvision and its subsidiaries.
Purchase of commodities / receiving of services:
Unit: RMB
Amount occurred in the Amount occurred in the first
Related party Transaction type
first half of 2025 half of 2024
Purchase of materials and
Subsidiaries of CETC 1,034,278,846.14 988,472,383.82
receiving of services
Purchase of materials and
Joint ventures 4,353,416.21 2,663,322.56
receiving of services
Purchase of materials and
Associates 99,577,523.53 103,780,397.92
receiving of services
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Amount occurred in the Amount occurred in the first
Related party Transaction type
first half of 2025 half of 2024
Purchase of materials and
Other related parties 380,085,408.98 505,168,081.89
receiving of services
Total 1,518,295,194.86 1,600,084,186.19
Sales of commodities / rendering of services:
Unit: RMB
Amount occurred in the Amount occurred in the first
Related party Transaction content
first half of 2025 half of 2024
Sales of products and 60,368,573.76
Subsidiaries of CETC 83,114,384.62
rendering of services
Sales of products and 7,198,061.83
Joint ventures 22,738,452.57
rendering of services
Sales of products and 9,331,947.22
Associates 16,232,611.27
rendering of services
Sales of products and 11,847,614.71
Other related parties 10,089,490.65
rendering of services
Total 88,746,197.52 132,174,939.11
Fixed asset purchase and sales:
Amount occurred in the Amount occurred in the first
Related party Transaction content
first half of 2025 half of 2024
Subsidiaries of CETC Purchase fixed assets 5,267,436.42 -
Total 5,267,436.42 -
Unit: RMB
Rental fee confirmed in the first half of Rental fee confirmed in the first half
Lessor Type of leased assets
Subsidiaries of CETC House - 1,670,579.23
Total - 1,670,579.23
Rental income confirmed in the first Rental income confirmed in the first
Lessee Type of leased assets
half of 2025 half of 2024
Subsidiaries of CETC House 56,319.31 -
Total 56,319.31 -
Statement of capital deposits
Unit: RMB
Related party Balance at the end
Content of related Amount occurred in Amount occurred in
of the current Opening balance
(Note) party transaction the first half of 2025 the first half of 2024
reporting period
(Withdraw)
Subsidiaries of CETC (74,324.75) 4,000,109,400.99 (13,329,055.47) 4,000,183,725.74
Deposit
Total (74,324.75) 4,000,109,400.99 (13,329,055.47) 4,000,183,725.74
Note: Deposits placed by the Group in CETC Finance Co., Ltd., including time deposits of RMB 4,000,000,000.00 at the
end of the period (beginning balance: RMB 4,000,000,000.00), and current deposits of RMB 109,400.99 (beginning
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
balance: RMB183,725.74). Interest income earned on deposits during the period was RMB13,230.81 (first half of 2024:
RMB8,002,865.36).
Information on entrusted loan
During the current reporting period, the Company issued entrusted loans of RMB2,345 million (first half of 2024:
RMB2,290 million) to its subsidiaries through CETC Finance Co., Ltd., and paid transaction fee of RMB234,500.00 (first
half of 2024: RMB229,000.00) to CETC Finance Co., Ltd.
Information on entrusted management
On 10 April 2024, EZVIZ Network, a subsidiary of the Group, and CETHIK, the parent company of the Group, entered
into an entrusted management agreement. EZVIZ Network paid the entrusted management fee to CETHIK. During the
period, the amount of the entrusted management fee was 237,453.31 (first half of 2024: RMB117,368.41).
Unit: RMB
Closing balance Opening balance
Item Related Party
Account balance Bad debt provision Book value Bad debt provision
Notes receivable
and accounts Subsidiaries of CETC 27,882,233.26 146,903.78 52,626,277.73 374,735.27
receivable
Notes receivable
and accounts Joint ventures - - 13,352,890.19 -
receivable
Notes receivable
and accounts Associates 12,317,260.31 - 4,392,879.50 -
receivable
Notes receivable
and accounts Other related parties 1,533,087.37 - 1,908,892.17 -
receivable
Total 41,732,580.94 146,903.78 72,280,939.59 374,735.27
Unit: RMB
Closing balance Opening balance
Item Related Party
Account balance Bad debt provision Book value Bad debt provision
Account
Subsidiaries of CETC 440,795,644.14 146,827,220.35 486,103,594.64 150,460,535.70
receivables
Account
Joint ventures 16,969,252.56 2,479,529.78 26,582,054.99 2,439,410.80
receivables
Account
Associates 48,369,551.79 11,194,263.85 67,058,711.03 10,008,346.67
receivables
Account
Other related parties 8,529,485.63 288,346.08 5,254,943.87 209,669.50
receivables
Total 514,663,934.12 160,789,360.06 584,999,304.53 163,117,962.67
Unit: RMB
Item Related Party Closing balance Opening balance
Prepayments Subsidiaries of CETC 906,368.11 1,357,188.83
Prepayments Associates 5,133,018.32 667,500.73
Total 6,039,386.43 2,024,689.56
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Closing balance Opening balance
:Item Related Party
Account balance Bad debt provision Book value Bad debt provision
Other receivables Subsidiaries of CETC 683,113.25 501,266.82 675,015.40 503,901.99
Other receivables Joint ventures 30,682.30 217.84 45,506.53 373.15
Total 713,795.55 501,484.66 720,521.93 504,275.14
Unit: RMB
Closing balance Opening balance
Item Related Party
Account balance Bad debt provision Book value Bad debt provision
Long-term receivables Subsidiaries
(including those due within of CETC - - 119,906.12 983.23
one year)
Long-term receivables
(including those due within Joint ventures 25,180,015.49 1,259,881.31 27,457,234.23 1,153,621.48
one year)
Total 25,180,015.49 1,259,881.31 27,577,140.35 1,154,604.71
Unit: RMB
Item Related party Closing balance Opening balance
Short-term borrowings Subsidiaries of CETC - 150,128,333.33
Total - 150,128,333.33
Unit: RMB
Item Related party Closing balance Opening balance
Notes Payable Subsidiaries of CETC 8,909,579.77 5,438,628.32
Notes Payable Other related parties 3,538,943.66 1,570,383.71
Total 12,448,523.43 7,009,012.03
Unit: RMB
Item Related party Closing balance Opening balance
Account payable Subsidiaries of CETC 558,236,833.29 593,917,797.74
Account payable Joint ventures 1,206,403.77 1,224,799.99
Account payable Associates 71,357,379.22 114,410,719.92
Account payable Other related parties 195,559,296.34 442,181,100.83
Total 826,359,912.62 1,151,734,418.48
Unit: RMB
Item Related party Closing balance Opening balance
Contract liabilities Subsidiaries of CETC 5,166,560.73 4,070,684.79
Contract liabilities Joint ventures 522,660.33 293,305.79
Contract liabilities Associates 46,288.96 601,534.30
Contract liabilities Other related parties 13,583.70 13,583.70
Total 5,749,093.72 4,979,108.58
Unit: RMB
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Item Related party Closing balance Opening balance
Other payables Subsidiaries of CETC 6,236,354.53 6,619,267.43
Other payables Joint ventures 9,000.00 59,892.75
Other payables Associates 719,805.00 696,315.00
Other payables Other related parties 369,000.00 413,000.00
Total 7,334,159.53 7,788,475.18
\
Unit: RMB
Item Related party Closing balance Opening balance
Long-term payables Subsidiaries of CETC 9,749,569.60 9,749,569.60
Total 9,749,569.60 9,749,569.60
XII. Share-based payments
Scheme of Staff Co-Investment in Innovative Businesses
On October 22, 2015, The company considered and approved Management Measures for Core Staff Co-Investment in
Innovative Businesses (Draft) (hereafter referred to as "Management Measures") at the 2nd extraordinary general meeting.
On March 7, 2016, representative congress of labor union of Hikvision passed Implementation Provisions for Management
Measures for Core Staff Investment in Innovative Businesses (hereafter referred to as "Provisions"), to initiate and
implement the incentive mechanism of staff co-investment (hereafter referred to as "Staff Co-Investment Plan") in
innovative business subsidiaries. Staff who participate in the Staff Co-Investment Plan (hereafter referred to as "Co-
Investment Staff") signed an Entrusted Investment Agreement with the labor union committee of Hikvision (hereafter
referred to as "Hikvision Labor Union"), to entrust Hikvision Labor Union to make investments. Hikvision Labor Union,
as a principal, shall cooperate with a trust company, which shall be a limited partner (LP) of a partnership enterprise, to
establish a trust plan, and to invest trust funds into innovative business subsidiaries. (Investment form described above is
referred to as "Co-Investment Platform").
Staff Investment Plan is classified as plan A and plan B according to applicable grantees. Grantees of plan A are comprised
of medium-and-senior level management personnel and core competent staff from the Company, its branches and
subsidiaries, and are able to invest in all innovative businesses. Grantees of plan B are comprised of core and full-time
staff from innovative business subsidiaries and its branches and subsidiaries, and could participate in investment on
innovative business subsidiaries where they serve. The Co-Investment Platform will increase capitals annually, the
corresponding increased equity of which will be distributed to core staff who meets investment conditions pursuant to
particular rules. The waiting period shall be five years after equity of Co-Investment Platform is held by the staff. Within
the waiting period, if the labor relationship between the grantees and the Company or its subsidiaries is released or
terminated, equity of Co-Investment Platform held by the grantees shall be refunded and settled by the labor union at an
agreed price pursuant to the Provisions.
The Co-Investment Platform grants Co-Investment Staff additional equity annually. The Group determines whether share-
based payment shall be constituted based on the fair value of equity instruments newly obtained by the Group's staff in
Co-Investment Platform on each granting date.
In December 2020, Co-Investment Staff signed a Supplemental Agreement of Entrusted Investment Agreement (hereafter
referred to as "Supplemental Agreement") with Hikvision Labor Union. On December 25, 2020, the Company held the
Management Measures for Core Staff Co-Investment in Innovative Businesses. The new version of the Management
Measures for Core Staff Co-Investment in Innovative Business (hereinafter referred to as the "new version of the
Management Measures") added the confirmation of the shares held by employees in the co-investment plan and the rights
and interests indirectly held by employees in innovative business subsidiaries, clarified the approach of the co-investment
shares after the employees lost or cancelled the co-investment qualification, and added the Management Committee and
other systems.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
On December 31, 2020, the Executive Management Committee of the Co-investment Plan adopted the Implementation
Rules for the Management Measures for Core Staff Co-Investment in Innovative Businesses (hereinafter referred to as the
"new version of the Rules"). According to the new version of the Management Measures and the new version of the Rules,
for the confirmed shares of plan A, the waiting period is the fifth anniversary of the employee's work in the Company or
its subsidiaries. For the confirmed shares of plan B, the waiting period is the fifth anniversary of the employee's work in
the innovative business subsidiary or its subordinate subsidiary company corresponding to the Plan B.
Scheme of Staff Co-Investment in Innovative Businesses
Unit: RMB
Scheme of Staff Co-Investment in Innovative Businesses
Method of determine the fair value of equity
Determined using the income approach on the grant date.
instruments at the grant date
Recognition basis of the number of the equity
Determined by estimating the attrition rate for each vesting period.
instruments qualified for vesting
Accumulative amount of share-based payment
through equity settlement and further included in the 993,203,130.47
capital reserve
Total amount of the expenses recognized according
to share-based payment through equity settlement in 56,631,332.08
the current reporting period
Among total amount of the expenses recognized according to share-based payment through equity settlement during the
current reporting period, amount of RMB15,319,808.87 was due to share distributions to minority shareholders.
XIII. Commitments and contingencies
Unit: 000 RMB
Closing balance Opening balance
Contracted but not yet recognized in financial statements
- Commitment on construction of long-term assets 4,780,553 4,782,225
- Commitment on external investments 2,440 2,440
Total 4,782,993 4,784,665
The Group has no significant contingencies to be disclosed.
XIV. Events after the balance sheet date
As of August 1, 2025, the Company has no significant events after the balance sheet date that need to be disclosed
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
XV. Other significant events
According to the Group's internal organization structure, management requirements and internal report principles, the
Group has only one operating segment, which is the research and development, production and sales of AIoT products
and services.
External revenue by geographical area & non-current assets by geographical location
Unit: RMB
Item First half of 2025 First half of 2024
External revenue generated in domestic area 26,393,423,147.63 27,029,231,758.69
External revenue generated in overseas area 15,424,616,940.81 14,179,864,447.67
Total 41,818,040,088.44 41,209,096,206.36
Unit: RMB
Item (Note) On June 30, 2025 On January 1, 2025
Non-current assets in domestic area 24,898,783,711.39 24,071,063,742.13
Non-current assets in overseas area 917,347,554.99 878,754,968.19
Total 25,816,131,266.38 24,949,818,710.32
Note: the non-current assets above did not include other non-current financial assets, long-term receivables, long-term
equity investment, and deferred tax assets.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
XVI. Notes to major items of financial statements of the parent company
Unit: RMB
Closing account balance Opening account balance
Within credit period 3,268,577,734.94 2,290,185,031.06
Within 1 year after exceeding credit period 22,406,051,464.61 22,956,416,334.33
Over 4 years after exceeding credit period 351,044,306.14 304,329,300.13
Subtotal 26,926,711,620.17 26,493,740,737.95
Less: Bad debts provision 765,725,976.70 760,119,868.00
Book value 26,160,985,643.47 25,733,620,869.95
Unit: RMB
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Closing balance Opening balance
Account balance Bad debts provision Book value Account balance Credit loss provision Book value
Category
Percentage Percentage Percentage Percentage
Amount Amount Amount Amount Amount Amount
(%) (%) (%) (%)
Provision
for bad
debts on a - - - - - - - - - -
single
basis
Provision
for bad
debts by
portfolios
Total 26,926,711,620.17 100.00 765,725,976.70 2.84 26,160,985,643.47 26,493,740,737.95 100.00 760,119,868.00 2.87 25,733,620,869.95
Provision for bad debts by portfolios
Unit: RMB
Closing balance
Customer
Account balance Credit loss provision Proportion (%)
Subsidiaries in the Group 23,142,923,897.54 - -
Portfolio A 2,943.02 2,943.00 100.00
Portfolio B 3,783,660,749.71 765,599,003.80 20.23
Portfolio C 124,029.90 124,029.90 100.00
Total 26,926,711,620.17 765,725,976.70 2.84
Description of accounts receivables accrued for bad debts provision by portfolios:
As part of the Company's credit risk management, the Company divided account receivables into portfolio A, portfolio B and portfolio C according risk attributes of
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
different business area and target, and determines the expected credit loss for each portfolio with an impairment matrix based on the aging of accounts receivable over
the reporting period. With respect to account receivables arising from companies within the Group, the Company considers that the credit risk is low and is not necessary
for bad debts provisions, as payments are arranged by the Group according to the cash flow each companies within the Group,. The aging information can reflect the
solvency of these three types of customers when the accounts receivable are due.
Unit：RMB
Changes in the reporting period Translation
differences for
Item Opening balance Closing balance
Accrual/ recovery or reversal Transfer or write-off foreign currency
statements
Account receivables 760,119,868.00 5,606,108.70 - - 765,725,976.70
Total 760,119,868.00 5,606,108.70 - - 765,725,976.70
At the end of the reporting period, the aggregate amount of the Company's top five debtors of account receivables and contract assets was RMB23,078,157,644.25
(including accounts receivable RMB 23,078,157,644.25, with no contract assets), accounting for 85.52% of the total account receivables and contract assets at the end
of the reporting period and the provision for bad debts amounted to RMB50,022,918.92.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit: RMB
Item Closing balance Opening balance
Within contract period 5,032,026,397.31 4,373,247,408.09
Within 1 year 35,653,259.12 24,122,882.75
Over 4 years 727,036.06 754,319.10
Total 5,078,632,351.81 4,412,908,275.74
Less: Bad debt provision 6,666,630.27 7,341,101.03
Book value 5,071,965,721.54 4,405,567,174.71
Unit: RMB
Nature Closing balance Opening balance
Payments by subsidiaries within the Group 4,958,765,841.00 4,305,122,194.83
Guarantee deposit 52,510,968.06 59,508,337.34
Temporary payments for receivables 42,737,063.08 38,710,852.68
Others 24,618,479.67 9,566,890.89
Total 5,078,632,351.81 4,412,908,275.74
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit：RMB
Changes in the reporting period Translation
differences for
Item Opening balance Closing balance
Accrual/ recovery or reversal Transfer or write-off foreign currency
statements
Other receivables 7,341,101.03 (674,470.76) - - 6,666,630.27
Total 7,341,101.03 (674,470.76) - - 6,666,630.27
At the end of reporting period, the aggregate amount of the Company's top five debtors of other receivables was RMB3, 992,692,172.62, accounting for 78.62% of
the total other receivables, and the company did not make provision for bad debts here.
Unit: RMB
Closing balance Opening balance
Item
Account balance Provisions Book value Account balance Provisions Book value
Investment in subsidiaries 8,117,452,210.96 - 8,117,452,210.96 8,234,997,797.96 - 8,234,997,797.96
Investments in associates and joint ventures 1,211,349,467.17 - 1,211,349,467.17 1,251,972,687.05 - 1,251,972,687.05
Total 9,328,801,678.13 - 9,328,801,678.13 9,486,970,485.01 - 9,486,970,485.01
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit：RMB
Write-off of Balance of
Increase during Decrease during impairment impairment loss
Name of investee Opening balance the current the current Closing balance provision during the provision at the end
reporting period reporting period current reporting of the current
period reporting period
Hangzhou Hikvision System Technology Ltd. 903,765,761.48 - - 903,765,761.48 - -
Hangzhou Hikvision Technology Ltd. 1,116,114,606.67 - - 1,116,114,606.67 - -
Hangzhou EZVIZ Network Co., Ltd. 61,201,821.95 - - 61,201,821.95 - -
Hangzhou EZVIZ Software Ltd. 32,618,406.05 - - 32,618,406.05 - -
Hangzhou Hikrobot Co., Ltd. 139,418,539.03 - - 139,418,539.03 - -
Hangzhou Haikang Intelligent Technology Ltd. 9,032,198.30 - - 9,032,198.30 - -
Unit：RMB
Increase/Decrease during the current reporting period
Balance of
Investment impairment loss
Other Other changes Declared cash
Name of investee Opening balance income (losses) Closing balance provision at the end
Additional Reduced comprehensi dividends or Provision for
recognized Others of the current
Investments Investments ve income in equity profit impairment
under the reporting period
adjustment distribution
equity method
Hangzhou Haikang
Intelligent Industrial
Equity Investment 868,063,887.91 - - (8,130,418.39) - 18,912,591.70 (49,248,130.84) - - 829,597,930.38 -
Fund Partnership
(L.P.)
Zhejiang City Digital
Technology Ltd.
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Zhejiang
Haishihuayue Digital
Technology Ltd.
(Note(V).13.Note 2)
Guangxi Haishi City
Operation 11,449,482.39 - - (831,824.68) - - - - - 10,617,657.71 -
Management Ltd.
Xuzhou Kangbo City
Operation
Management Service
Ltd
Others 4,516,484.96 - - (221,369.51) - - - - - 4,295,115.45 -
Subtotal 928,657,559.53 - - (6,529,051.14) - 18,912,591.70 (49,248,130.84) - (14,154,413.00) 877,638,556.25 -
Zhiguang Hailian Big
Data Technology Ltd.
Others 298,917,183.10 - - 5,170,778.27 - 2,379,906.81 - - - 306,467,868.18 -
Subtotal 323,315,127.52 - - 8,015,876.59 - 2,379,906.81 - - - 333,710,910.92 -
Total 1,251,972,687.05 - - 1,486,825.45 - 21,292,498.51 (49,248,130.84) - (14,154,413.00) 1,211,349,467.17 -
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
Unit：RMB
First half of 2025 First half of 2024 (restated)
Item
Revenue Cost Revenue Cost
Major business 9,452,576,649.06 1,672,751,742.36 9,222,842,780.60 1,775,866,027.97
Other business 1,465,595,941.64 88,699,283.25 1,666,830,401.26 119,951,720.54
Total 10,918,172,590.70 1,761,451,025.61 10,889,673,181.86 1,895,817,748.51
Unit：RMB
Item First half of 2025 First half of 2024
Long-term equity investment income measured by cost method 312,300,000.00 229,430,000.00
Investment income from holding debt investment 24,625,393.17 27,424,996.73
Long-term equity investment income (loss) accounted for by the equity 1,486,825.45
(74,947,950.25)
method
Total 338,412,218.62 181,907,046.48
XVII. Supplementary information
Unit：RMB
Item Amount Description
Profits and losses from disposal of non-current assets 7,349,132.16 /
The government subsidies included in the current reporting period,
excluding government subsidies that are closely related to the
company's normal business operations, comply with national
policies and regulations, are enjoyed in accordance with
determined standards, and have a continuous impact on the
company's profit and loss
Apart from the effective hedging activities related to the
Company's normal business operations, the fair value changes in
financial assets and financial liabilities held by non-financial (84,646,697.58) /
enterprises, as well as the gains or losses from the disposal of
these financial assets and liabilities.
Investment income generated from the disposal of long-term
equity investments
Other non-operating income and expense except the items
mentioned above
Impact of income tax (17,869,448.69) /
Impact of the minority interests (33,585,581.41) /
Total 168,349,470.31 /
Hikvision 2025 Half Year Report
Notes to Financial Statements
For the reporting period from January 1, 2025 to June 30, 2025
The preparation basis of the non-recurring profit and loss statement
According to the provisions of the China Securities Regulatory Commission’s Explanatory, Announcement No. 1 on
Company Information Disclosure for Publicly Offered Securities — Non-recurring Profit and Loss (Revised in 2023),
non-recurring gains and losses refer to gains or losses arising from transactions and events that are not directly related to
a company’s normal business operations, as well as those that are related but due to their special nature and sporadic
occurrence, affect the ability of financial statement users to make accurate judgments regarding the company’s operating
performance and profitability.
The return on net assets and earnings per share have been prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
in accordance with the Information Disclosure and Presentation Rules for Companies Making Public Offering of
Securities No. 9 – Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revised in 2010) issued
by China Securities Regulatory Commission.
Unit：RMB
Weighted Earnings per share
Profit for the reporting period average return on Basic earnings per Diluted earnings per
net assets (%) share share
Net profit attributable to ordinary shareholders of the
Company
Net profit excluding non-recurring items of profit or loss
attributable to ordinary shareholders of the Company
Hikvision 2025 Half Year Report
Section IX Documents Available for Reference
of accounting work and person in charge of accounting organization.
designated by CSRC within the reporting period.
The above documents are completely placed at the Company's Board of Directors' office.
Hangzhou Hikvision Digital Technology Co., Ltd.
Chairman: Hu Yangzhong
August 2, 2025
Note:
This document is a translated version of the Chinese version 2025 Half Year Report (2025 年半年度报告),
and the published announcements in the Chinese version shall prevail. The complete published Chinese

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