Hangzhou Hikvision Digital Technology Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Hangzhou Hikvision Digital Technology Co., Ltd.

Founded in **2001**, Hangzhou Hikvision Digital Technology Co., Ltd. has rapidly evolved into a leading provider of video surveillance products and solutions. The company was established by the Hangzhou Municipal Government and the Zhejiang University, focusing on research and development in the field of video surveillance technology.

By **2008**, Hikvision went public, listing on the Shenzhen Stock Exchange under the ticker symbol **002415**. This strategic move raised approximately **$130 million**, allowing the company to fund further research and expand its market presence.

Throughout the 2010s, Hikvision experienced significant growth. By **2016**, the company reported a revenue of approximately **$3.5 billion**, marking a year-on-year increase of **25%**. The net profit for the same year was around **$650 million**, reflecting a profit margin of approximately **18.6%**.

As of **2023**, Hikvision reported revenues of approximately **$10.5 billion** and a net profit of around **$1.9 billion**. The company retains a profit margin of **18.1%**. This growth trajectory reflects the increasing demand for security solutions globally and Hikvision’s strong R&D capabilities, which accounted for **7.3%** of total revenue in the same year.

In addition to its financial performance, Hikvision has expanded its global footprint, establishing a presence in over **150** countries. In **2022**, the company invested over **$1 billion** in new technology and product development. This investment aims to bolster its capabilities in artificial intelligence and data analytics within security systems.

Hikvision has faced scrutiny and challenges, particularly concerning allegations of security risks associated with its products. Despite this, the company maintains its position as one of the world's largest manufacturers of video surveillance equipment, with a market share estimated at **30.5%** as of **2022**.

Looking at its stock performance, Hikvision shares have fluctuated but seen a general upward trend, with a price of approximately **CNY 42** as of **September 2023**, reflecting a **17%** increase from the previous year. The company's market capitalization is around **CNY 400 billion**. Analysts maintain a cautiously optimistic outlook, forecasting a potential annual growth rate of **10%** in revenues through **2025**.

A Who Owns Hangzhou Hikvision Digital Technology Co., Ltd.

Hangzhou Hikvision Digital Technology Co., Ltd. is one of the largest manufacturers of video surveillance equipment in the world. As of October 2023, the company is publicly traded on the Shenzhen Stock Exchange under the ticker symbol 002415.SZ.

The ownership structure of Hikvision includes a mix of state ownership and institutional investors. The largest shareholder is the state-owned China Electronics Technology Group Corporation (CETC), which holds approximately 42.49% of the company's shares.

In addition to CETC, various institutional investors also hold significant stakes in the company. Notable institutional shareholders include:

• China Life Insurance Co., Ltd.: 5.27%
• Shenzhen Capital Group: 3.99%
• Ping An Insurance Group: 2.89%
• National Social Security Fund: 1.83%

Here is a detailed

As of the last financial report, Hikvision's total revenue for the first half of 2023 was approximately ¥42.7 billion (around $6.5 billion), reflecting a year-on-year increase of 23%. The company reported a net profit margin of approximately 14.3%.

In terms of market capitalization, Hikvision was valued at around ¥580 billion (approximately $88 billion) as of the last trading session in October 2023. The stock performance over the last year has shown a fluctuation, with a peak price of ¥72 per share in August 2023.

Hikvision continues to expand its operations globally, with significant investments in research and development, amounting to ¥5.6 billion (around $850 million) in 2022, representing 13.1% of its total revenue.

Hangzhou Hikvision Digital Technology Co., Ltd. Mission Statement

Hangzhou Hikvision Digital Technology Co., Ltd. is a global leader in video surveillance products and solution development. The company emphasizes a mission dedicated to continuous innovation and excellence in the field of security and public safety. Hikvision aims to provide advanced technology that enhances safety, efficiency, and services across diverse industries.

The company’s mission statement reflects its commitment to:

• Innovation: Constantly investing in research and development, Hikvision allocated approximately 12% of its revenue to R&D in 2022, amounting to around ¥13.5 billion.
• Customer Satisfaction: Striving to deliver quality products and solutions tailored to customer needs, achieving a satisfaction rate of over 90% among its global user base.
• Global Leadership: Positioned as the world's largest supplier of video surveillance equipment, with a market share of approximately 20.5% in the global video surveillance market as of 2023.
• Social Responsibility: Committed to creating a safer world through technology while adhering to ethical practices and sustainability initiatives.

According to the latest financial data for the fiscal year 2022, Hikvision reported total revenues of ¥92.4 billion, a year-on-year increase of 19.3%. The net income stood at ¥17 billion, reflecting a net profit margin of 18.4%. The company has also experienced a steady growth trajectory in the past decade.

Hikvision's supply chain and operational efficiency underscored its mission to provide high-quality products globally. The company operates over 40,000 employees worldwide and maintains a presence in more than 150 countries. With over 500 international partners, Hikvision is committed to expanding its reach while adhering to local compliance and ethical standards.

In addition to hardware innovations, Hikvision is advancing software capabilities, with over 70% of its revenue derived from products with integrated AI technology as of 2023. This further supports its objective of delivering smart solutions that empower users in decision-making processes and situational awareness.

How Hangzhou Hikvision Digital Technology Co., Ltd. Works

Hangzhou Hikvision Digital Technology Co., Ltd. is a leading global provider of video surveillance products and solutions. The company operates primarily within the security technology industry, specializing in the research, development, production, and sales of video surveillance equipment.

In 2022, Hikvision reported revenue of approximately ¥85.6 billion (about $12.5 billion), marking a year-on-year growth of 10.8%. The company attributed this growth to an increase in demand for advanced surveillance technology across various sectors, including urban security and transportation.

As of the end of 2022, Hikvision's total assets were estimated at around ¥118.2 billion (approximately $17.4 billion), with equity amounting to ¥61.8 billion (about $9.1 billion), reflecting a robust financial position.

• Operating Income: ¥24.5 billion (approximately $3.6 billion)
• Net Profit: ¥16.8 billion (about $2.5 billion)
• Gross Margin: 41.6%

Hikvision leverages its substantial investment in research and development (R&D), which accounted for approximately 8.4% of its revenue in 2022. This focus on R&D has positioned Hikvision as a leader in innovation, particularly in areas such as artificial intelligence (AI) and deep learning technologies.

The company's product lines include a broad range of surveillance cameras, recorders, and other security-related products. In 2022, Hikvision sold over 100 million surveillance cameras worldwide. The global market for video surveillance equipment was valued at around $30 billion in 2022, and Hikvision held a market share of approximately 24%.

Hikvision operates through a global network, with business in over 150 countries. Its distribution channels comprise direct sales, partnerships, and value-added resellers. The company has established numerous subsidiaries and joint ventures to enhance its foothold in key markets, including Europe, North America, and Asia-Pacific.

The company’s strong commitment to sustainability and ethical practices has also played a crucial role in its operations, particularly in response to increasing scrutiny over privacy and data protection concerns. Hikvision has implemented measures to comply with international regulations and standards regarding data security.

Hikvision’s stock trades on the Shenzhen Stock Exchange under the ticker symbol 002415. As of October 2023, the stock price hovered around ¥31.23, with a market capitalization of approximately ¥809.4 billion (around $117.2 billion). The stock has experienced a significant growth trajectory, reflecting investor confidence driven by continuous innovation and expansion in its product offerings.

In summary, Hangzhou Hikvision Digital Technology Co., Ltd. operates through a robust business model characterized by a diverse product range, strong financial performance, and a commitment to innovation. The company continues to adapt to changing market dynamics while maintaining its leadership position within the video surveillance industry.

How Hangzhou Hikvision Digital Technology Co., Ltd. Makes Money

Hangzhou Hikvision Digital Technology Co., Ltd. primarily generates revenue through its diversified product offerings in the video surveillance and security sector. The company specializes in the development and production of video surveillance products, including cameras, storage devices, and video management software.

In the fiscal year 2022, Hikvision reported total revenue of approximately ¥83.77 billion, reflecting a year-on-year increase of 17.52%. This growth can be primarily attributed to an increase in demand for security and surveillance systems across various industries.

The company's revenue can be segmented into several key categories:

• Manufacturing and sales of security products
• Software solutions for video surveillance
• Smart home and IoT technology
• Service and maintenance of existing installations

Of the total revenue, about 76% is derived from the sale of video surveillance products. In particular, the sales of network cameras, which have a significant share of the market, contributed approximately ¥63.66 billion in revenue, marking a growth of 15% compared to the previous year.

Hikvision's global market strategy plays a crucial role in its revenue generation. The company has established a strong international presence, with exports accounting for around 40% of its total sales. In 2022, the largest markets outside of China included North America and Europe, with substantial sales growth in emerging markets in Asia and Africa.

The company invests heavily in research and development, with R&D expenditure reaching approximately ¥12.3 billion in 2022, which is about 14.7% of its total revenue. This investment is pivotal in maintaining its competitive edge, particularly in advanced AI and machine learning technologies for video analytics.

To provide a clearer picture of Hikvision's revenue structure, the following table outlines the revenue distribution for different product categories in 2022:

Hikvision’s business model is further bolstered by strategic partnerships and collaborations with other technology firms. This has allowed the company to integrate cutting-edge technologies into their existing products, enhancing their value proposition in the market.

The firm also benefits from economies of scale, which enable it to produce high-quality products at competitive prices. This has cemented its position as a market leader in the security and surveillance industry, holding a market share of approximately 23% globally as of late 2022.

In light of legislative trends worldwide focusing on security and surveillance, Hikvision is well-positioned for continued growth. The demand for smart city technologies and integrated security solutions presents significant opportunities for revenue expansion moving forward.