HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2018 Quarter 1 Report
January to March 2018
April 21st 2018
Hikvision 2018 Q1 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.
TheCompany’s chairman Chen Zongnian, and director Gong Hongjia, Qu Liyang, Hu Yangzhong, Wu Weiqi, independent director Cheng Tianzong , Lu Jianzhong, Wang Zhidong attend the board meeting to review this report in person. Independent director Hong Tianfeng was on a business trip and not able to attend the board meeting in person, and Hong authorized independent director Cheng Tianzong to attend and exercise the voting right for him.
Chen Zongnian, the Company's legal representative, Jin Yan, the person in charge of the accounting department and the chief accountant and of the Company (Chief Accounting Officer) hereby declare and warrant that the financial statements in this report are authentic, accurate and complete.
Note:
This document is a translated version of the Chinese version 2018 Q1 Financial Report (“2018年第一季度报告全文”), and the published Q1 report in the Chinese version shall prevail. The complete published Chinese 2018 Q1 Financial Report may be obtained at http://www.cninfo.com.cn.
Hikvision 2018 Q1 Report Section II Corporate Profile
I. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of previous accounting data
√ Yes□No
The reason for retroactive adjustment or restatement of previous accounting data: business merger involving enterprises under the common control
||||||
|-|-|-|-|-|
|||||Change(%) between 2017 Q1 and|
|||2017 Q1|||
||2018 Q1|||2018 Q1|
|||Before Adjustments|After Adjustments|After Adjustments|
|Operating income (RMB)|9,364,828,201.00|7,043,724,101.73|7,043,724,101.73|32.95%|
|Net profits attributable to shareholders of the Company (RMB)|1,815,964,569.77|1,480,816,885.32|1,480,780,632.01|22.64%|
|Net profits attributable to shareholders of the Company|||||
||1,808,323,790.71|1,440,574,125.37|1,440,574,125.37|25.53%|
|excluding non-recurring gains and losses (RMB)|||||
|Net cash flows from operating activities (RMB)|-3,856,064,680.53|-3,034,652,490.36|-3,035,286,557.20|-27.04%|
|Basic earnings per share (RMB/share)|0.199|0.163|0.163|22.09%|
|Diluted earnings per share (RMB/share)|0.197|0.162|0.162|21.60%|
|Weighted average Return on Equity (ROE)|5.80%|5.91%|5.91%|-0.11%|
|||||Change(%) between December 31st|
|||At December 31st 2017|||
||At March 31st 2018|||2017 and March 31st 2018|
|||Before Adjustments|After Adjustments|After Adjustments|
|Total assets (RMB)|50,208,262,128.64|51,570,963,466.61|51,570,963,466.61|-2.64%|
|Net assets attributable to shareholders of the Company (RMB)|32,230,376,028.30|30,358,072,874.22|30,358,072,874.22|6.17%|

Hikvision 2018 Q1 Report Items and Amounts of Non-recurring Gains and Losses
√ Applicable□ Inapplicable
Unit：RMB
|||
|-|-|
|Item|January 1st –March 31st 2018|
|Profit or loss from disposal of non-current assets (including the write-off for the||
||3,430,565.03|
|impairment 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||
||17,139,444.49|
|and government subsidy based on standard quota or quantification application||
|according to the state industrial policy.)||
|Profits and losses attributed to change in fair value for held-for-trading financial||
|assets, held-for-trading financial liabilities, and investment income in disposal of||
|held-for-trading financial assets and liabilities and available-for sale financial|-20,691,634.72|
|assets, excluding the effective hedging business related to the regular business||
|operation of the Company.||
|Other non-operating income and expenditures except the items mentioned above|9,447,774.84|
|Less: Impact of income tax|1,398,922.45|
|The impact of the minority interests (after tax)|286,448.13|
|Total|7,640,779.06|

 Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in the<Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Non-recurring Gains andLosses>, or classifies any non-recurring gain/loss item mentioned in the aforementioned note as a recurrent gain/loss item
□ Applicable√ Inapplicable
In the reporting period, the Company did not classify an item as a non-recurring gain/loss according to the definition in the<Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Non-recurring Gains andLosses>, or classifies any non-recurring gain/loss item mentioned in the aforementioned note as a recurrent gain/loss item
Hikvision 2018 Q1 Report II. Total Number of Shareholders at the end of the reporting period and Information for Top 10 Shareholders
1. Total number of common shareholders and preferred shareholders with resumed voting rights and information about top 10 shareholders Unit: Share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of common shareholders at the end of the reporting period|||137,437|||||
|Particulars about shares held by Top 10 shareholders||||||||
|||||||Pledged or frozen||
|||Share-||Total shares held at the|Number of restricted|||
|Name of shareholder|Nature of shareholder|||||||
|||holding percentage (%)||period-end|shares held|Share Status|Amount|
|China Electronics Technology HIK Group Co., Ltd.|State-owned corporation|39.60%||3,653,674,956||Pledged|50,000,000|
|Gong Hongjia|Overseas individual|13.60%||1,255,056,700|1,038,792,525|Pledged|237,700,000|
|Hong Kong Securities Clearing CompanyLtd.(HKSCC)|Overseas corporation|10.86%||1,001,811,817||||
|Xinjiang Weixun Investment Management LimitedPartnership|Domestic non-state-ownedcorporation|4.89%||450,795,176||Pledged||
||||||||166,100,000|
|Xinjiang Pukang Investment Limited Partnership|Domestic non-state-ownedcorporation|1.98%||182,510,174||Pledged||
||||||||138,410,000|
|Hu Yangzhong|Domestic Individual|1.97%||182,186,477|136,639,858|Pledged|81,830,000|
|The 52nd Research Institute at China ElectronicsTechnology Group Corporation|State-owned corporation|1.96%||180,775,044||||
|CITIC Securities Company Limited|Domestic non-state-ownedcorporation|1.49%||137,861,187||||
|UBS AG|Overseas corporation|1.11%||102,517,315||||
|Central Huijin Investment Ltd.|State-owned corporation|0.71%||65,818,800||||

Hikvision 2018 Q1 Report
|||||
|-|-|-|-|
|Particulars about shares held by the Top 10 shareholders holding shares not subject to trading restriction(s)||||
|||Type of shares||
|Name of shareholder|Number of tradable shares held at the period-end|||
|||Type|Number|
|China Electronics Technology HIK Group Co., Ltd.|3,653,674,956|RMB ordinary shares|3,653,674,956|
|Hong Kong Securities Clearing CompanyLtd.(HKSCC)|1,001,811,817|RMB ordinary shares||
||||1,001,811,817|
|Xinjiang Weixun Investment Management LimitedPartnership|450,795,176|RMB ordinary shares||
||||450,795,176|
|Gong Hongjia|216,264,175|RMB ordinary shares|216,264,175|
|Xinjiang Pukang Investment Limited Partnership|182,510,174|RMB ordinary shares|182,510,174|
|The 52nd Research Institute at China ElectronicsTechnology Group Corporation|180,775,044|RMB ordinary shares||
||||180,775,044|
|CITIC Securities Company Limited|137,861,187|RMB ordinary shares|137,861,187|
|UBS AG|102,517,315|RMB ordinary shares|102,517,315|
|Central Huijin Investment Ltd.|65,818,800|RMB ordinary shares|65,818,800|
|Hu Yangzhong|45,546,619|RMB ordinary shares|45,546,619|
||China Electronics Technology HIK Group Co., Ltd. and The 52nd Research Institute at China Electronics Technology Group Corporationare all subject to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei, limited partner of Xinjiang PukangInvestment Limited Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder of the Company. Hu Yangzhong,domestic individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang PukangInvestment Limited Partnership.Except for these, the Company does not know whether the other shareholders are related parties or whether they are acting-in-concertparties in accordance with the Measures for Management of the Disclosure of the Shareholding Changes of Shareholders of the ListedCompany.|||
|Explanation on associated relationship and||||
|concerted actions among top ten shareholders without||||
|trading restrictions, and among top ten shareholders||||
|and top ten shareholders without trading restrictions||||

Hikvision 2018 Q1 Report Any of theCompany’s top 10 common shareholders or top 10 non-restricted common shareholders conducts any agreed buy-back in the reporting period?□ Applicable√ Inapplicable
No such cases in the reporting period.
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable√ Inapplicable
Hikvision 2018 Q1 Report Section III Significant Events
1. Information and explanation about variations in key financial statement items and financial indicators during the reporting period.√Applicable□Inapplicable
1.1 Explanation for variations in balance sheet items
||||||
|-|-|-|-|-|
||Balance at March 31st|Balance at January 1st|||
|Item|||YoY change (%)|Note of Changes|
||2018 (RMB)|2018 (RMB)|||
|Cash and bank balances|11,426,551,711.46|16,468,430,702.64|-30.62%|2017 year-end bonus were distributed in the current quarter andpayments for procurements|
|Fixed Assets|4,053,256,047.58|3,024,025,496.31|34.04%|Mainly due to transferring Internet Security Industry Base project fromconstruction in process to fixed assets|
|Construction in process|677,459,209.86|1,436,319,118.30|-52.83%||
|Intangible assets|761,104,185.60|429,160,982.63|77.35%|Purchase of land use right for Chengdu Science and Technology Baseproject during the current reporting quarter.|
|Short-term borrowing|1,516,332,857.77|97,114,655.91|1461.38%|Increase in bank borrowings due to temporary capital turnover|
|Financial liabilities at fair value throughcurrent period profit and loss|55,059,240.22|15,946,836.46|245.27%|Changes in fair value for foreign exchange hedging products|
|Notes Payable|1,128,796,061.85|845,397,427.92|33.52%|Increase in outstanding balance for supplier notes payable|
|Account Payable|6,742,022,841.40|10,039,943,012.26|-32.85%|Increase in payments for supplier account payables due|
|Payroll Payable|431,026,744.53|1,391,291,256.90|-69.02%|2017 year-end bonus were distributed in the current quarter|
|Dividends payable|63,706,416.92|94,857,139.16|-32.84%|Dividends paid for second unlocking of 2014 Restricted Share Scheme|
|Bond Payable|-|3,120,920,000.00|-100%|The principal of Euro bond will be due within one year, and wascategorized into current asset.|
|Non-current liabilities due within one year|4,653,521,621.62|1,546,407,270.89|200.92%||

Hikvision 2018 Q1 Report 1.2 Explanation for variations in income statement items
||||||
|-|-|-|-|-|
|Item|2018 Q1 (RMB)|2017 Q1 (RMB)|YoY Change (%)|Note of changes|
|Total Operating Income|9,364,828,201.00|7,043,724,101.73|32.95%|Operating Income increased with the steady increase of market demands.|
|Selling expenses|1,084,628,143.59|700,619,566.15|54.81%|Selling expenses increase with the Company’s continuous increasinginvestments on domestic and overseas sales network|
|Administrative expenses|995,059,473.35|747,961,910.46|33.04%|The Company’s increasing investments in R&D|
|Financial expense|257,430,070.75|21,617,777.72|1090.83%|Increase in foreign currency exchange losses|
|Gains from changes in fair values|-42,253,561.30|4,304,484.96|-1081.62%|Change in fair value of foreign exchange hedging products|

 1.3 Explanation for variations in cash flow statement items
||||||
|-|-|-|-|-|
|Item|2018 Q1 (RMB)|2017 Q1 (RMB)|YoY Change (%)|Note of changes|
|Net cash flow from operating activities|-3,856,064,680.53|-3,035,286,557.20|-27.04%|Mainly due to payments for material procurements, tax payables, and2017 year-end bonus distribution.|
|Net cash flow from investment activities|-1,744,035,918.57|3,054,411,538.19|-157.10%|Mainly due to increase in principal-guaranteed financial productinvestments|
|Net cash flow from financing activities|1,018,223,066.41|2,324,978,732.03|-56.21%|Mainly due to decrease in bank loans|

2. Progress and influence of significant events, analysis and explanation of corresponding solutions.
□ Applicable√ Inapplicable
Hikvision 2018 Q1 Report 3. Incomplete commitments from the related committed parties such as theCompany’s actual controller, shareholders, related parties, acquirer(s), and the Company during the reporting period
√Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||||Date of|Term of||
|Commitments|Giver of commitments|Details of commitments|||Performance|
||||commitments|commitments||
|Commitmentsin offeringdocuments orshareholdingalterations|CETHIK Group Co., Ltd.|1. Commitments in non-competition within the industry: In the period as controlling shareholders ofthe Hikvision, CETHIK and its controlling subsidiaries (excluding Hikvision and its subsidiaries, thesame below) will not be engaged in such business that is competitive to Hikvision and itssubsidiaries directly or indirectly.2. Commitments in decrease and regulation of transactions with related party: Zhejiang HaikangGroup Co., Ltd (hereinafter referred to as Haikang Group or actual controller) as the controllingshareholders of Hangzhou Hikvision Digital Technology Co., Ltd (hereinafter referred to as"Hikvision" or "Listed Company") are committed as below for the transactions with Hikvision:(1) Haikang Group will not make use of the controlling power to offer more favorable conditions toHikvision than those to any independent third party in any fair market transactions in the cooperationwith Hikvision.(2) Haikang Group will not make use of the controlling power to obtain the prior right to completethe transaction with Hikvision.(3) Haikang Group will not deal with Hikvsion in not fair terms comparing to the market prices toprejudice the Company’s interests.For unavoidable related transactions, the Company will observe the principles of justice andfairness to deterimine prices according to the market on the basis of equality, voluntarily. TheCompany will obey the Articles of Association and other regulatory documents related to theavoiding of issues about related transactions. The related transactions will go through approvalprocedures in accordance with related rules and complete legal procedures, fulfilling the informationdisclosure obligations in respect to the related transactions3. Commitment to the maintenance of the independence of the listed Company3.1 Commitment to Personnel Independence of the listed Company(1) Commitment that our general manager, deputy general manager, chief financial officer, secretaryof the board and other members of senior management shall not assume any positions other thandirectors and supervisors or get any remuneration in CETHIK and/or any of its controlled entities;(2) Commitment in keeping the management of labor, human resources and issues related to|29thOctober,2013|Long-term|Strictperformance|

Hikvision 2018 Q1 Report
|||||||
|-|-|-|-|-|-|
||||Date of|Term of||
|Commitments|Giver of commitments|Details of commitments|||Performance|
||||commitments|commitments||
|||remuneration of the listed Company independent from that of CETHIK;3.2 Commitment to the independence of the asset of the listed Company(1) Commitment to independent and complete asset of the listed Company(2) Commitment free of unlawful use of cash and asset of the listed Company by the controllingshareholders3.3 Commitment to financial independence of the listed Company(1) Commitment to an independent finance department with a team and accounting system;(2) Commitment to a regulated, independent accounting system and financial management system ofthe branches and subsidiaries(3) Commitment to maintaining accounts with banks independently of and not sharing any bankaccount with our controlling shareholders(4) Commitment that the financial staff shall not assume any positions in CETHIK(5) Commitment to paying taxes independently according to the law;(6) Commitment to implementing financial decisions independently3.4 The Company has set up an independent organizational structure which maintains its independentoperations which is independent from that of CETHIK.3.5 Commitment to business Independence of the listed Company(1) The Company has the asset, personnel, aptitude and management capability for independent andcomplete business operation. The Company has the ability to operate independently in the market.(2) Commitment in independence in both business and operations4. Regarding plans for the development and relevant commitment for the listed Company, HaikangGroup has committed as below for the subsequent development of Hikvsion according to theSecurities Acts and relevant laws and rules,4.1 Currently the Company has no plan to change or make significant adjustments for principalbusiness in the next 12 months;4.2 Currently the Company has no plan to sell, merge or operate with another Company for the assetsand business of the listed Company or its subsidiaries in the next 12 months.4.3 Currently the Company has no plan to alter the Board of the Directors and senior managementand no agreement with other shareholders about the appointment and removal of the directors or||||

Hikvision 2018 Q1 Report
|||||||
|-|-|-|-|-|-|
||||Date of|Term of||
|Commitments|Giver of commitments|Details of commitments|||Performance|
||||commitments|commitments||
|||senior management. The team of Board of Directors and senior management will remain unchangedfor the foreseeable future.4.4 Currently the Company has no plan to make significant changes to the Articles of Association forthe listed Company.4.5 Currently the Company has no plan to make significant changes to the existing employeerecruitment for the listed Company.4.6 Currently the Company has no plan to make significant changes for the dividend distribution planfor the listed Company.4.7 Currently the Company has no plan to make significant changes for business and organizationalstructure for the listed Company.||||
|Commitmentsin InitialPublicOffering orre-financing|Hangzhou Weixun InvestmentManagement Limited Partnership（later renamed as XinjiangWeixun Investment ManagementLimited Partnership）|During Hu Yangzhong, Wu Weiqi, JiangHaiqing, Zhou Zhiping, Xu Lirong, Cai Dingguo, HeHongli, Zheng Yibo, Hu Dan,、Jiang Yufeng, Liu Xiang, Wang Ruihong, Chen Junke’s tenure of theCompany’s board of directors, supervisors and senior management personnel, the annual transfer ofHikvision’s total shares should not exceed 25% of total number of shares held under Weixun; within6 months after abovementioned personnel’s dimission, should not transfer hikvision’s shares heldunder Weixun.|17th May,2010|Long term|Strictperformance|
||Hangzhou Pukang InvestmentLimited Partnership（laterrenamed as Xinjiang PukangInvestment Limited Partnership）|During Hu Yangzhong, Wu Weiqi, Gong Hongjia’s tenure of the Company’s board of directors,supervisors and senior management personne, the annual transfer of Hikvision’s total shares shouldnot exceed 25% of total number of shares held under Pukang; whithin 6 months afterabovementioned personnel’s dimission, should not transfer hikvision’s shares held under Pukang.|17th May,2010|Long term|Strictperformance|
||The Company's directors,supervisors and executive:HuYangzhong,Wu Weiqi, JiangHaiqing, Zhou Zhiping，XuLirong, Cai Dingguo, He Hongli,Zheng Yibo, Hu Dan, Jiang|During their tenure of the Company’s board of directors, supervisors and senior managementpersonnel, the annual shares transfer should not exceed 25% of total number of shares held underWeixun; whthin 6 months after their dimission, they should not transfer their shares held underWeixun.|17th May,2010|Long term|Strictperformance|

Hikvision 2018 Q1 Report
|||||||
|-|-|-|-|-|-|
||||Date of|Term of||
|Commitments|Giver of commitments|Details of commitments|||Performance|
||||commitments|commitments||
||Yufeng, Liu Xiang, WangRuihong, Chen Junke|||||
||Directors, executive officers ofthe Company:Hu Yangzhong, Wu Weiqi|During their tenure of the Company’s board of directors, supervisors and senior managementpersonnel, the annual shares transfer should not exceed 25% of total number of shares held underPukang; whthin 6 months after their dimission, they should not transfer their shares held underPukang.|17th May,2010|Long term|Strictperformance|
||The Company’s director GongHongjia’s spouse, Chen Chunmei|During Gong Hongjia’s tenure of the Company’s board of directors, supervisors and seniormanagement personnel, Chen’s annual shares transfer should not exceed 25% of total number ofshares held under Pukang; whthin 6 months after the dimission of Gong Hongjia,Chen should nottransfer her shares held under Pukang.|17th May,2010|Long-term|Strictperformance|
||China Electronics TechnologyGroup Corporation (later renamedas China Electronics TechnologyGroup Co., Ltd.)|To avoid any loss of the Company and other shareholders arising from any competing business,China Electronics Technology Group Corporation, the actual controller of the Company, issuedCommitment Letter about Avoiding the Competition within the Same Industry (《避免同业竞争的承诺函》) on 18th September, 2008.|18thSeptember,2008|Long term|Strictperformance|
||Gong Hongjia；XinJiang WeiXun InvestmentManagement LimitedPartnership；XinJiang KangPu InvestmentManagement LimitedPartnership；ZheJiang OrientHoldings Co., Ltd.|To avoid any loss of the Company and other shareholders arising from any competing business,Gong Hongjia, Hangzhou WeiXun Investment Management Limited Partnership, ZheJiang OrientHoldings Co., Ltd and Hangzhou KangPu Investment Management Limited Partnership, thepromoters of the Company, issued Commitment Letter about Avoiding the Competition within theSame Industry (《避免同业竞争的承诺函》) on 10th July, 2008.|10th July,2008|Long term|Strictperformance|
|Whether theundertakingis fulfilled intime|Yes|||||

Hikvision 2018 Q1 Report 4. Guidance on theCompany’s operational results from January 1st 2018 to June 30th 2018.
Guidance on theCompany’s operational performance from January 1st 2018 to June 30th 2018: Net profits attributable to shareholders of the Company are positive, and situation of turning losses into gains is not applicable.
|||||
|-|-|-|-|
|Estimated YoY change (%) of net profits attributable to shareholders of the Company from||||
||15%|to|35%|
|January 1st 2018 to June 30th 2018||||
|Estimated variation interval of net profits attributable to shareholders of the Company from||||
||378,527.80|to|444,358.72|
|January 1St 2018 to June 30th 2018 (0,000 RMB)||||
|Net profits attributable to shareholders of the Company from January 1st 2017 to June 30th||||
||329,154.61|||
|2017 (0,000 RMB)||||
|Note of change in operational results|The Company’s operating performance continues to have a steady and healthy growth.|||

 5. Financial Assets measured at fair value
√ Applicable□ Inapplicable
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Profits or losses on|||||||
||||Cumulative fair||||||
|||the changes in fair||Purchase during the|Sales during the|Cumulative investment|||
|Category|Initial investment cost||value change||||Closing balance|Source of funds|
|||value in current||reporting period|reporting period|income|||
||||charged to equity||||||
|||period|||||||
|Financial derivative|||||||||
||1,400,293,692.23|-42,253,561.30||2,405,449,774.00||15,885,274.53|2,282,076,237.00|Company's own funds|
|instruments|||||||||
|Total|1,400,293,692.23|-42,253,561.30||2,405,449,774.00||15,885,274.53|2,282,076,237.00|--|

 6. Illegal provision of guarantees for external parties
□ Applicable√ Inapplicable
No such case in the reporting period.
Hikvision 2018 Q1 Report 7. TheCompany’s funds used by the controlling shareholder or its related parties for non-operating purposes
□ Applicable√ Inapplicable
No such case in the reporting period.
8. Schedule for the reception activities including research, communication and interviews during the report period
√ Applicable□ Inapplicable
8.1 Reception of research activities during 2018 Q1
|||||
|-|-|-|-|
|Time of reception|Method of reception|Type of reception object|Index of basic situation of the research|
||Site Research and telephone|||
|From January 1st 2018 to February 2nd 2018||Institutional investors|CNINF, Investor Relations Activity Record: From January 1st 2018 to February 2nd 2018|
||communication|||
||Site Research and telephone|||
|From February 5th 2018 to March 2nd 2018||Institutional investors|CNINF, Investor Relations Activity Record: From February 5th 2018 to March 2nd 2018|
||communication|||
||Site Research and telephone|||
|From March 5th 2018 to March 16th 2018||Institutional investors|CNINF, Investor Relations Activity Record: From March 5th 2018 to March 16th 2018|
||communication|||

8.2 Participation of conferences for investor relationship activities during 2018 Q1
||||||
|-|-|-|-|-|
|||||Method of reception|
|Time of conference|Location|Conference Name|Type of reception object||
|January 2018|Shanghai|Ever-Bright Securities 2018 Investment Conference|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|January 2018|Las Vegas|Nomura@CES 2018|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|January 2018|Beijing|Morgan Stanley China TMT Conference|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|January 2018|Beijing|16th Annual DBAccess China Conference|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|

Hikvision 2018 Q1 Report
||||||
|-|-|-|-|-|
|||||Method of reception|
|Time of conference|Location|Conference Name|Type of reception object||
|January 2018|New York|Bank of America Merrill Lynch 2018 A-share Conference|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|January 2018|New York-Boston|US NDR- via Bank of America Merrill Lynch|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|January 2018|Hong Kong|CICC TMT Forum 2018|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|March 2018|Taibei|Bank of America Merrill Lynch APAC TMT Conference 2018|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|

 8.3 Investor relations activity statistics during 2018 Q1
|||
|-|-|
||78|
|Number of daily research received (Site and telephone conference, times)||
||453|
|Number of institutional investors received (ppl)||
||8|
|Number of investor relations conference participated||

Hikvision 2018 Q1 Report Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
Prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
March 31st 2018
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Cash and bank balances|11,426,551,711.46|16,468,430,702.64|
|Balances with clearing agencies|||
|Placements with banks and other financial|||
|institutions|||
|Financial assets at fair value through profit|||
||959,500.00|4,100,657.54|
|and loss|||
|Derivative financial assets|||
|Notes receivable|3,961,977,210.26|3,636,961,616.03|
|Accounts receivable|15,970,671,829.27|14,705,210,072.81|
|Prepayments|527,897,944.12|527,576,857.11|
|Premiums receivable|||
|Amounts receivable under reinsurance|||
|contracts|||
|Reinsurer's share of insurance contract|||
|reserves|||
|Interests receivable|||
|Dividends receivable|||
|Other receivables|580,057,359.21|583,681,240.81|
|Financial assets purchased under resale|||
|agreements|||
|Inventories|5,309,146,630.80|4,940,332,311.65|
|Held-for-sale assets|||
|Non-current assets due within one year|80,707,361.52|66,566,230.12|
|Other current assets|4,696,676,281.48|3,720,449,532.88|
|Total Current Assets|42,554,645,828.12|44,653,309,221.59|

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Non-current Assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets|287,466,813.00|287,466,813.00|
|Held-to-maturity investments|||
|Long-term receivables|32,655,340.30|23,375,680.61|
|Long-term equity investment|130,817,506.06|130,474,733.58|
|Investment properties|||
|Fixed assets|4,053,256,047.58|3,024,025,496.31|
|Construction in progress|677,459,209.86|1,436,319,118.30|
|Materials for construction of fixed assets|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|761,104,185.60|429,160,982.63|
|Development expenditures|||
|Goodwill|248,964,102.97|248,964,102.97|
|Long-term prepaid expenses|||
|Deferred tax assets|479,160,529.33|479,070,649.49|
|Other non-current assets|982,732,565.82|858,796,668.13|
|Total Non-current Assets|7,653,616,300.52|6,917,654,245.02|
|Total Assets|50,208,262,128.64|51,570,963,466.61|
|Current Liabilities:|||
|Short-term borrowings|1,516,332,857.77|97,114,655.91|
|Loans from the central bank|||
|Customer deposits and deposits from|||
|banks and other financial institutions|||
|Capitals taking from banks and other|||
|financial institutions|||
|Financial liabilities at fair value through|||
||55,059,240.22|15,946,836.46|
|profit and loss|||
|Derivative financial liabilities|||
|Notes payable|1,128,796,061.85|845,397,427.92|
|Accounts payable|6,742,022,841.40|10,039,943,012.26|
|Receipts in advance|454,788,920.44|570,573,208.60|
|Financial assets sold under repurchase|||
|agreements|||

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Fees and commissions payable|||
|Payroll payable|431,026,744.53|1,391,291,256.90|
|Taxes payable|1,144,321,376.05|1,453,515,065.77|
|Interests payable|||
|Dividends payable|63,706,416.92|94,857,139.16|
|Other payables|500,015,015.62|401,861,078.67|
|Amounts payable under reinsurance|||
|contracts|||
|Insurance contract reserves|||
|Funds from securities trading agency|||
|Funds from underwriting securities agency|||
|Held for sale liabilities|||
|Non-current liabilities due within one year|4,653,521,621.62|1,546,407,270.89|
|Other current liabilities|738,027,880.89|744,583,627.22|
|Total Current Liabilities|17,427,618,977.31|17,201,490,579.76|
|Non-current Liabilities:|||
|Long-term borrowings|190,000,000.00|490,000,000.00|
|Bonds payable||3,120,920,000.00|
|Including: Preferred share|||
|Perpetual bond|||
|Long-term payables||2,437,038.62|
|Long-term employee benefits payable|||
|Special payables|||
|Provisions|64,785,927.34|63,068,638.49|
|Deferred income|82,798,403.45|88,925,771.65|
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|337,584,330.79|3,765,351,448.76|
|Total liabilities|17,765,203,308.10|20,966,842,028.52|
|Owners’ Equities|||
|Share capital|9,227,270,473.00|9,228,865,114.00|
|Other equity instruments|||
|Including: Preferred share|||
|Perpetual debt|||

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Capital reserves|1,853,623,008.66|1,819,397,715.63|
|Less: Treasury stock|738,027,880.89|744,583,627.22|
|Other comprehensive income|-10,525,753.10|-27,677,939.35|
|Special reserves|||
|Surplus reserve|3,483,742,918.53|3,483,742,918.53|
|General risk reserve|||
|Retained profits|18,414,293,262.10|16,598,328,692.63|
|Total owners' equity attributable to owner of|||
||32,230,376,028.30|30,358,072,874.22|
|the Company|||
|Minority interests|212,682,792.24|246,048,563.87|
|Total owners' equity|32,443,058,820.54|30,604,121,438.09|
|Total liabilities and owners' equity|50,208,262,128.64|51,570,963,466.61|

 Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan 2. Balance Sheet of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Cash and bank balances|8,781,868,807.23|12,304,090,713.99|
|Financial assets at fair value through profit|||
|and loss|||
|Derivative financial assets|||
|Notes receivable|238,923,781.24|345,651,612.11|
|Accounts receivable|15,807,051,713.50|12,505,683,317.78|
|Prepayments|434,957,182.68|94,545,948.67|
|Interests receivable|||
|Dividends receivable|2,550,000.00|2,550,000.00|
|Other receivables|1,486,831,362.46|709,592,493.72|
|Inventories|282,649,470.87|376,776,045.69|
|Held-for-sale assets|||
|Non-current assets due within one year|||
|Other current assets|4,239,645,805.13|3,296,055,941.42|
|Total Current Assets|31,274,478,123.11|29,634,946,073.38|
|Non-current Assets:|||
|Available-for-sale financial assets|287,456,813.00|287,456,813.00|

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investment|3,401,570,474.89|3,367,076,734.95|
|Investment properties|||
|Fixed assets|2,787,030,319.03|1,757,777,870.77|
|Construction in progress|2,836,776.13|914,859,063.00|
|Materials for construction of fixed assets|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|168,107,042.75|154,604,755.69|
|Development expenditure|||
|Goodwill|||
|Long-term prepaid expenses|||
|Deferred tax assets|200,147,031.89|200,147,031.89|
|Other non-current assets|20,290,484.46|16,925,712.83|
|Total Non-Current Assets|6,867,438,942.15|6,698,847,982.13|
|Total Assets|38,141,917,065.26|36,333,794,055.51|
|Current Liabilities:|||
|Short-term borrowings|500,000,000.00||
|Financial liabilities at fair value through|||
|profit and loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|303,870,679.44|286,629,255.35|
|Receipts in advance|342,367,744.36|216,747,866.68|
|Payroll payable|310,184,466.11|946,587,240.01|
|Taxes payable|942,168,281.29|1,219,102,007.88|
|Interests payable|||
|Dividends payable|61,256,416.92|92,407,139.16|
|Other payables|1,216,120,625.91|708,051,044.04|
|Held-for-sale liabilities|||
|Non-current liabilities due within one year|3,138,128,388.37|33,614,018.51|
|Other current liabilities|738,027,880.89|744,583,627.22|

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Total Current Liabilities|7,552,124,483.29|4,247,722,198.85|
|Non-Current Liabilities:|||
|Long-term borrowings|||
|Bonds payable||3,120,920,000.00|
|Including: Preferred share|||
|Perpetual bond|||
|Long-term payables|||
|Long-term employee benefits payable|||
|Special payables|||
|Provisions|43,024,784.70|43,024,784.70|
|Deferred income|48,141,063.01|62,903,600.00|
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|91,165,847.71|3,226,848,384.70|
|Total liabilities|7,643,290,331.00|7,474,570,583.55|
|Owners' equity|||
|Share capital|9,227,270,473.00|9,228,865,114.00|
|Other equity instruments|||
|Including: Preferred share|||
|Perpetual bond|||
|Capital reserves|1,778,043,626.43|1,742,755,331.51|
|Less: Treasury share|738,027,880.89|744,583,627.22|
|Other comprehensive income|||
|Special reserves|||
|Surplus reserve|3,483,742,918.53|3,483,742,918.53|
|Retained profits|16,747,597,597.19|15,148,443,735.14|
|Total owners' equity|30,498,626,734.26|28,859,223,471.96|
|Total liabilities and owners' equity|38,141,917,065.26|36,333,794,055.51|

 Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2018 Q1 Report 3. Consolidated Income Statement
Unit: RMB
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|I. Total operating income|9,364,828,201.00|7,043,724,101.73|
|Including: Operating income|9,364,828,201.00|7,043,724,101.73|
|Interest income|||
|Premiums earned|||
|Fees and commissions income|||
|II. Total operating costs|7,601,579,147.44|5,626,414,765.89|
|Including: Operating cost|5,144,866,014.52|4,030,635,978.64|
|Interest expense|||
|Fees and commissions expenses|||
|Surrender charge fee|||
|Claims and policyholder benefits (net|||
|of amounts recoverable from|||
|reinsurers)|||
|Insurance contract reserves (net of|||
|reinsurers’ share)|||
|Insurance policyholder dividends|||
|Expenses for reinsurance accepted|||
|Business taxes and levies|70,291,380.92|66,178,352.46|
|Selling expenses|1,084,628,143.59|700,619,566.15|
|Administrative expenses|995,059,473.35|747,961,910.46|
|Financial expense|257,430,070.75|21,617,777.72|
|Impairment losses of assets|49,304,064.31|59,401,180.46|
|Add: Gains from changes in fair values (Losses|||
||-42,253,561.30|4,304,484.96|
|are indicated by "－")|||
|Investment income (Loss is indicated by|||
||21,904,699.06|26,616,724.90|
|"－")|||
|Including: Income from investments in|||
||342,772.48||
|associates and joint ventures|||
|Foreign exchange gains (Losses|||
|are indicated by “－”)|||
|Gains from disposal of assets (Losses|||
||3,430,565.03|115,205.81|
|are indicated by “－”)|||
|Other income|398,225,011.54|339,941,433.93|
|III. Operating profit (Loss is indicated by|||
||2,144,555,767.89|1,788,287,185.44|
|"－")|||
|Add: Non-operating income|13,022,792.29|11,420,659.35|

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|Less: Non-operating expenses|1,536,336.10|896,504.71|
|IV. Total profit (total losses expressed with "-")|2,156,042,224.08|1,798,811,340.08|
|Less: Income tax expenses|373,754,038.72|318,461,864.25|
|V. Net profit (net loss expressed with "-")|1,782,288,185.36|1,480,349,475.83|
|(1) Net profit on continuous operation (net|||
||1,782,288,185.36|1,480,349,475.83|
|losses expressed with "-")|||
|(2) Net profit on terminated operation (net losses|||
|expressed with "-")|||
|Net profit attributable to owners of parent|||
||1,815,964,569.77|1,480,780,632.01|
|company|||
|Profit or loss attributable to minority interests|-33,676,384.41|-431,156.18|
|VI. Other comprehensive income, net of|||
||15,159,851.45|2,767,890.17|
|income tax|||
|Other comprehensive income attributable to|||
||17,152,186.03|3,799,340.09|
|owners of the Company, net of tax|||
|(I) Items that will not be reclassified subsequently|||
|to profit or loss|||
|1. Changes in net liabilities or assets of|||
|re-measurement of defined benefit|||
|obligation|||
|2. Amounts of other comprehensive income|||
|attributes to investees that cannot be|||
|reclassified into profit or loss under equity|||
|method|||
|(II) Other comprehensive income to be|||
||17,152,186.03|3,799,340.09|
|reclassified to profit or loss in subsequent|||
|periods|||
|1. Amounts of other comprehensive income|||
|attributes to investees that are to be|||
|reclassified into profit or loss under equity|||
|method|||
|2. Gain or losses attributes to the changes in|||
|fair value of available-for-sale financial|||
|assets|||
|3. Gains or losses through reclassifying|||
|held-to-maturity financial assets to|||
|available-for-sale financial assets|||
|4.The effective part of gains and losses on cash|||
|flow hedging|||
|5. Exchange differences arising on conversion|||
||17,152,186.03|3,799,340.09|
|of financial statements denominated in|||
|foreign currencies|||
|6. Others|||
|Other comprehensive income attributable to|||
||-1,992,334.58|-1,031,449.92|
|minority interests, net of tax|||

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|VII. Total comprehensive income|1,797,448,036.81|1,483,117,366.00|
|Total comprehensive income attributable to|||
||1,833,116,755.80|1,484,579,972.10|
|owners of the parent company|||
|Total comprehensive income attributable to|||
||-35,668,718.99|-1,462,606.10|
|minority interests|||
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.199|0.163|
|(II) Diluted earnings per share|0.197|0.162|

 Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan 4. Income Statement of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|I. Total operating income|3,928,907,152.63|3,314,431,640.12|
|Less: Operating Cost|1,169,938,051.45|1,013,396,452.86|
|Business taxes and levies|51,940,799.46|41,140,628.13|
|Selling expenses|476,356,746.70|339,660,516.91|
|Administrative expenses|568,186,598.47|479,098,463.52|
|Financial expense|146,185,915.34|(23,589,269.29)|
|Impairment losses of assets|||
|Add: Gains from changes in fair values (Losses|||
|||3,049,949.85|
|are indicated by "－")|||
|Investment income (Loss is indicated by "－")|-5,689,637.96|16,021,809.69|
|Including: Income from investments in|||
||342,772.48||
|associates and joint ventures|||
|Gains from disposal of assets (Loss is|||
||3,494,397.51|100,441.79|
|indicated by "－")|||
|Other Income|365,167,317.80|322,965,971.79|
|II. Operating profit (loss is indicated by "－")|1,879,271,118.56|1,806,863,021.11|
|Add: Non-operating income|2,193,088.96|4,861,345.77|
|Less: Non-operating expenses|346,091.67|491,918.69|
|III. Total profit (total loss is indicated by "－")|1,881,118,115.85|1,811,232,448.19|
|Less: Income tax expenses|281,964,253.80|256,704,288.39|
|IV. Net profit (Net loss is indicated by "－")|1,599,153,862.05|1,554,528,159.80|
|(1) Net profit on continuous operation (net|||
|losses expressed with "-")|||
|(2) Net profit on terminated operation (net losses|||

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|expressed with "-")|||
|V. Other comprehensive income, net of income|||
|tax|||
|(I) Items that will not be reclassified|||
|subsequently to profit or loss not to be|||
|reclassified to profit or loss in subsequent|||
|periods|||
|1. Changes in net liabilities or assets of|||
|re-measurement of defined benefit|||
|obligation|||
|2. Amounts of other comprehensive|||
|income attributes to investees that|||
|cannot be reclassified into profit or|||
|loss under equity method|||
|(II) Other comprehensive income to be|||
|reclassified to profit or loss in subsequent|||
|periods|||
|1. Amounts of other comprehensive|||
|income attributes to investees that are|||
|to be reclassified into profit or loss|||
|under equity method|||
|2. Gain or losses attributes to the changes|||
|in fair value of available-for-sale|||
|financial assets|||
|3. Gains or losses through reclassifying|||
|held-to-maturity financial assets to|||
|available-for-sale financial assets|||
|4.The effective part of gains and losses on|||
|cash flow hedging|||
|5. Exchange differences arising on|||
|conversion of financial statements|||
|denominated in foreign currencies|||
|6. Others|||
|VI. Total comprehensive income|1,599,153,862.05|1,554,528,159.80|
|VII. Earnings per share|||
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||

Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2018 Q1 Report 5. Consolidated Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|I. Cash flows from operating activities:|||
|Cash received from sale of goods|||
||8,750,853,665.71|6,909,204,860.69|
|or rendering of services|||
|Net increase in customer deposits and|||
|deposits from banks and other financial|||
|institutions|||
|Net increase in borrowings from central bank|||
|Net increase in placements from other|||
|financial institutions|||
|Cash receipts from premiums under direct|||
|insurance contracts|||
|Net cash receipts from reinsurance business|||
|Net increase in the insurance deposit and|||
|investment fund|||
|Net cash receipts from disposal of financial|||
|assets measured by fair value that changes in|||
|fair value would be recognized in the current|||
|period gains and losses|||
|Cash received from interests, fees|||
|and commissions|||
|Net increase in capital taking from other|||
|banks|||
|Net increase in capital from repurchase|||
|arrangements|||
|Refund of tax and levies|900,802,467.84|780,612,675.68|
|Other cash received relating to|||
||1,066,892,836.74|66,321,315.91|
|operating activities|||
|Sub-total of cash inflows from operating|||
||10,718,548,970.29|7,756,138,852.28|
|activities|||
|Cash payments for goods purchased and|||
||9,646,942,783.62|7,882,590,526.94|
|services received|||
|Net increase in loans and advances|||
|to customers|||
|Net increase in balance with the central bank|||
|and due to banks and other financial|||
|institutions|||
|Cash payments for claims and policyholders'|||
|benefits under direct insurance contracts|||
|Cash paid for interests, fees and commissions|||
|Cash payment for insurance policy dividends|||
|Cash paid to and on behalf of employees|2,157,265,649.41|1,532,543,739.35|

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|Payments of various types of taxes|1,270,538,915.89|795,842,952.84|
|Other cash paid relating to operating activities|1,499,866,301.90|580,448,190.35|
|Sub-total of cash outflows from operating|||
||14,574,613,650.82|10,791,425,409.48|
|activities|||
|Net Cash Flow from Operating Activities|-3,856,064,680.53|-3,035,286,557.20|
|II. Cash Flows from Investing Activities:|||
|Cash receipts from disposals and recovery of|||
||150,000,000.00|3,370,000,000.00|
|investments|||
|Cash receipts from investment income|21,561,926.58|26,573,562.79|
|Net cash receipts from disposals of fixed|||
||8,085,072.84|2,087,975.59|
|assets, intangible assets and other long-term|||
|assets|||
|Net cash receipts from disposals of|||
|subsidiaries and other business units|||
|Other cash received relating to|||
||5,502,905.57||
|investing activities|||
|Sub-total of cash inflows from investing|||
||185,149,904.99|3,398,661,538.38|
|activities|||
|Cash payments to acquire or construct fixed|||
||822,308,036.28|299,250,000.19|
|assets, intangible assets and other long-term|||
|assets|||
|Cash paid to acquire investments|1,100,000,000.00||
|Net increase in pledged loans receivables|||
|Net cash payments for acquisitions of|||
|||45,000,000.00|
|subsidiaries and other business units|||
|Other cash paid relating to|||
||6,877,787.28||
|investing activities|||
|Sub-total of cash outflows from investing|||
||1,929,185,823.56|344,250,000.19|
|activities|||
|Net Cash Flow from Investment Activities|-1,744,035,918.57|3,054,411,538.19|
|III. Cash flows from financing activities:|||
|Cash receipts from capital contributions|127,400.00||
|Including: cash received by subsidiaries|||
|from capital contributions from minority|||
|owners|||
|Cash receipts from borrowings|1,419,781,375.02|4,362,038,129.87|
|Cash receipts from bond issue|||
|Other cash receipts relating to|||
|||437,630,760.68|
|financing activities|||
|Sub-total of cash inflows from financing|||
||1,419,908,775.02|4,799,668,890.55|
|activities|||
|Cash repayments of amounts borrowed|304,081,731.11|1,700,387,852.71|

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|Cash payments for distribution of dividends|||
||91,048,231.17|55,318,063.07|
|or profits or settlement of interest expenses|||
|Including: payments for distribution of|||
|dividends or profits to minority owners of|||
|subsidiaries|||
|Other cash payments relating to financing|||
||6,555,746.33|718,984,242.74|
|activities|||
|Sub-total of cash outflows from financing|||
||401,685,708.61|2,474,690,158.52|
|activities|||
|Net Cash Flow from Financing Activities|1,018,223,066.41|2,324,978,732.03|
|IV. Effect of Foreign Exchange Rate Changes|||
||-332,933,205.11|-52,019,627.61|
|on Cash and Cash Equivalents|||
|V. Net Increase in Cash and Cash Equivalents|-4,914,810,737.80|2,292,084,085.41|
|Add: Opening balance of Cash and Cash|||
||16,029,010,345.59|13,522,337,697.28|
|Equivalents|||
|VI. Closing Balance of Cash and Cash|||
||11,114,199,607.79|15,814,421,782.69|
|Equivalents|||

Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan 6. Cash Flow Statement of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|I. Cash Flows from Operating Activities::|||
|Cash receipts from the sale of goods and the|||
||1,502,210,097.61|2,387,618,586.65|
|rendering of services|||
|Refund of tax and levies|350,404,780.81|316,965,971.79|
|Other cash receipts relating to operating|||
||207,055,033.36|53,688,774.13|
|activities|||
|Sub-total of cash inflows from operating|||
||2,059,669,911.78|2,758,273,332.57|
|activities|||
|Cash payments for goods acquired|||
||1,659,187,618.03|413,238,143.37|
|and services received|||
|Cash payments to and on behalf of|||
||1,229,827,502.82|798,975,162.31|
|employees|||
|Payments of all types of taxes|1,016,007,421.93|505,480,479.78|
|Other cash payments relating to operating|||
||249,104,754.08|442,942,578.47|
|activities|||
|Sub-total of cash outflows from operating|||
||4,154,127,296.86|2,160,636,363.93|
|activities|||
|Net Cash Flow from Operating Activities|-2,094,457,385.08|597,636,968.64|
|II. Cash Flows from Investing Activities:|||

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|Cash receipts from disposals and recovery of|||
||150,000,000.00|3,350,000,000.00|
|investments|||
|Cash receipts from investment income|3,961,618.03|25,951,538.48|
|Net cash receipts from disposals of fixed|||
||8,003,034.22|581,194.84|
|assets, intangible assets and other long-term|||
|assets|||
|Net cash receipts from disposals of|||
||5,971.53|70,271.21|
|subsidiaries and other business units|||
|Other cash receipts relating to investing|||
||4,231,842,800.02|612,698,996.79|
|activities|||
|Sub-total of cash inflows from investing|||
||4,393,813,423.80|3,989,302,001.32|
|activities|||
|Cash payments to acquire or construct fixed|||
||196,125,986.75|107,114,487.38|
|assets, intangible assets and other long-term|||
|assets|||
|Cash payments to acquire investments|1,100,000,000.00||
|Net cash payments for acquisitions of|||
||33,000,000.00|900,000,000.00|
|subsidiaries and other business units|||
|Other cash payments relating to investing|||
||4,761,278,790.32|542,110,434.01|
|activities|||
|Sub-total of cash outflows from investing|||
||6,090,404,777.07|1,549,224,921.39|
|activities|||
|Net Cash Flow from Investment Activities|-1,696,591,353.27|2,440,077,079.93|
|III. Cash Flows from Financing Activities|||
|Cash receipts from capital contributions|||
|Cash receipts from borrowings|500,000,000.00|300,000,000.00|
|Cash receipts from issue of bonds|||
|Other cash receipts relating to financing|||
|activities|||
|Sub-total of cash inflows from financing|||
||500,000,000.00|300,000,000.00|
|activities|||
|Cash repayments of amounts|||
|borrowed|||
|Cash payments for distribution of dividends|||
||75,745,723.19|41,637,259.22|
|or profits or settlement of interest expenses|||
|Other cash payments relating to financing|||
||6,555,746.33||
|activities|||
|Sub-total of cash outflows from financing|||
||82,301,469.52|41,637,259.22|
|activities|||
|Net Cash Flow from Financing Activities|417,698,530.48|258,362,740.78|
|IV. Effect of foreign exchange rate changes on|||
||-148,871,705.11|-5,504,077.60|
|cash and cash equivalents|||
|V. Net increase in cash and cash equivalents|-3,522,221,912.98|3,290,572,711.75|

Hikvision 2018 Q1 Report
||||
|-|-|-|
|Item|2018 Q1|2017 Q1|
|Add: Beginning balance of cash|||
||12,304,082,533.11|10,245,969,003.13|
|and cash equivalents|||
|VI. Closing Balance of Cash and Cash|||
||8,781,860,620.13|13,536,541,714.88|
|Equivalents|||

Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan 4.2 Audit Report
Whether audit has been performed on this 2018 Quarter 1 Report
□ Yes√ No
TheCompany’s 2018 Quarter 1 report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
April 21st 2018
Note: This document is a translated version of the Chinese 2018 Quarter 1 Financial Report (“2018
年度第一季度报告”), and the published announcements in the Chinese version shall prevail. The
complete published Chinese 2018 Quarter 1 Financial Report document may be obtained at
http://www.cninfo.com.cn.