Hikvision achieved revenue of 37.258 billion yuan in the first half of the year, with innovative business growing by 25.62%

On August 12, Hikvision released its 2022 semi-annual report. In the first half of this year, the company achieved operating income of 37.258 billion yuan, a year-on-year increase of 9.9%; net profit attributable to shareholders of listed companies was 5.759 billion yuan, a year-on-year decrease of 11.14%. This is also the first year-on-year decline in Hikvision’s semi-annual net profit since it went public in 2010.
In terms of products, in the first half of 2022, Hikvision’s revenue on different products increased, but its gross profit margin declined across the board. Among them, the main business products and services revenue was 29.366 billion yuan, a year-on-year increase of 5.21%, and the gross profit margin was 44.61%, a year-on-year decrease of 2.88%; the main business construction engineering revenue was 884 million yuan, a year-on-year increase of 11 4.95%, gross profit margin was 17.53%, a year-on-year decrease of 11.50%; innovative business revenue was 7.008 billion yuan, a year-on-year increase of 25.62%, and gross profit margin was 40.25%, a year-on-year decrease of 1.39%.
Regarding the changes in performance, Hikvision management believes that the growth in revenue comes from the steady growth of market demand, and operating costs increase with the growth in operating income. Among them, sales expenses increased by 8.2% year-on-year5%, because the company continues to increase investment in domestic and foreign marketing networks, and administrative expenses increased by 36.28% year-on-year, due to the expansion of the company's business scale and personnel growth. Financial expenses decreased by 541.07% year-on-year, which was due to the increase in exchange gains in the current period due to exchange rate fluctuations. In addition, in terms of research and development, Hikvision invested 4.675 billion yuan in research and development in the first half of the year, a year-on-year increase of 20.56%.
It should be noted that during the reporting period, Hikvision’s overall innovative business revenue was 7.008 billion yuan, a year-on-year increase of 25.62%, accounting for 18.81% of the company’s revenue. It is understood that the innovative businesses include EZVIZ Network, Hikvision Robotics, Hikvision Automotive Technology, Hikvision Weiying, Hikvision Storage, Hikvision Huiying, Hikvision Firefighting and Hikvision Security Inspection and corresponding products. Among them, EZVIZ Network’s initial public offering of shares and application for listing on the Science and Technology Innovation Board was reviewed and approved by the Shanghai Stock Exchange’s Science and Technology Innovation Board Listing Committee, and the robot spin-off and listing plan was reviewed and approved by the board of directors of Hikvision.
It is understood that Hikvision is a video product and content service provider, providing leading video products, professional industry solutions and content services to the world. The company's products cover all major equipment of video surveillance systems, including front-end acquisition equipment, back-end storage and integrationControl, display, management and storage equipment, etc. In addition, the company has a series of products in the security field such as access control, alarm, video intercom and so on.