HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO.,LTD
2017 Interim Report
January to September 2017
October 31st 2017
Hikvision 2017 Q3 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.
All directors have attended the meeting of the board to review this report.
Chen ZongNian, the Company's legal representative, Jin Yan, the Chief Accountant and the Person in Charge of the Accounting Department 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 2017 Q3 Financial Report (“2017年第三季度报告全文”), and the published Q3 report in the Chinese version shall prevail. The complete published Chinese 2017 Q3 Financial Report may be obtained at http://www.cninfo.com.
Hikvision 2017 Q3 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:
Accounting arrangement method for business merger under the common control
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||||Change(%) between December 31st|
|||||At December 31st 2016|||||
|||At September 30th 2017||||||2016 and September 30th 2017|
|||||Before Adjustments||After Adjustments||After Adjustments|
|Total assets (RMB)||44,304,408,732.50||41,339,007,814.83||41,348,428,750.40||7.15%|
|Net assets attributable to shareholders of the Company (RMB)||26,925,124,706.97||24,288,634,890.08||24,283,755,426.31||10.88%|
|||||Change(%) between||||Change(%) between 2016 Q1~Q3|
|||2016 Q3||||2016 Q1~Q3|||
|||||2016 Q3 and 2017 Q3||||and 2017 Q1~Q3|
||2017 Q3||||2017 Q1~Q3||||
|||Before Adjustments|After Adjustments|After Adjustments||Before Adjustments|After Adjustments|After Adjustments|
||11,282,202,421.66||8,590,947,557.65||27,729,742,158.18||21,144,424,306.23||
|Operating income (RMB)||8,588,270,242.70||31.33%||21,136,468,968.82||31.14%|

Hikvision 2017 Q3 Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Net profits attributable to shareholders of|2,861,268,129.82||2,243,940,889.34||6,152,814,186.52||4,851,762,418.77||
|||2,243,111,069.90||27.51%||4,849,957,525.28||26.82%|
|the Company (RMB)|||||||||
|||||Change(%) between||||Change(%) between 2016 Q1~Q3|
|||2016 Q3||||2016 Q1~Q3|||
|||||2016 Q3 and 2017 Q3||||and 2017 Q1~Q3|
||2017 Q3||||2017 Q1~Q3||||
|||Before Adjustments|After Adjustments|After Adjustments||Before Adjustments|After Adjustments|After Adjustments|
|Net profits attributable to shareholders of|||||||||
|the Company excluding non-recurring|2,819,127,478.82|2,143,368,877.17|2,144,193,431.01|31.48%|6,008,993,697.69|4,717,571,798.26|4,719,380,116.99|27.33%|
|gains and losses (RMB)|||||||||
|Net cash flows from operating activities|||||95,849,570.76||1,955,771,375.36||
||2,038,650,373.18|1,556,206,067.43|1,557,997,147.08|30.85%||1,954,013,323.91||-95.10%|
|(RMB)|||||||||
||0.315||0.249||0.671||0.538||
|Basic earnings per share (RMB/share)||0.249||26.51%||0.537||24.72%|
||0.313||0.247||0.673||0.535||
|Diluted earnings per share (RMB/share)||0.247||26.72%||0.535||25.79%|
|Weighted average ROE|11.55%|11.00%|11.01%|0.54%|22.38%|23.69%|23.70%|-1.32%|

Hikvision 2017 Q3 Report Items and Amounts of Non-recurring Gains and Losses
√ Applicable□ Inapplicable
Unit：RMB
|||
|-|-|
|Item|January 1st –September 30th 2017|
|Profit or loss from disposal of non-current assets (including the write-off for the||
||2,167,026.36|
|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||
||71,160,201.47|
|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|82,212,062.53|
|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|26,752,311.52|
|Less: Impact of income tax|27,343,740.28|
|The impact of the minority interests (after tax)|11,127,372.77|
|Total|143,820,488.83|

 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 2017 Q3 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||127,510|||||
|Particulars about shares held by Top 10 shareholders|||||||
||||Share-|Total shares||Number of|
|Name of shareholder|Nature of shareholder||holding|held at the end||restricted shares|
||||percentage (%)|of the period||held|
|China Electronics Technology HIK Group Co., Ltd.|State-owned corporation||39.59%|3,653,674,956||0|
|Gong Hongjia|Overseas individual||15.01%|1,385,056,700||1,118,812,500|
|Hong Kong Securities Clearing CompanyLtd.(HKSCC)|Overseas corporation||9.34%|861,640,362||0|
|Xinjiang Weixun Investment Management LimitedPartnership|Domestic non-state-ownedcorporation||5.96%|549,720,876||438,232,500|
|Xinjiang Pukang Investment Limited Partnership|Domestic non-state-ownedcorporation||2.08%|192,346,874||144,260,155|
|The 52nd Research Institute at China ElectronicsTechnology group Corporation|State-owned corporation||1.96%|180,775,044||0|
|Hu Yangzhong|Domestic Individual||1.33%|122,786,477||92,129,982|
|Citic Securities Co., Ltd.|Domestic non-state-ownedcorporation||1.22%|112,283,074||0|
|UBS AG|Overseas corporation||1.20%|111,151,294||0|
|Central Huijin Investment Ltd.|State-owned corporation||0.71%|65,818,800||0|
|Particulars about shares held by the Top 10 shareholders holding shares not subject to trading restriction(s)|||||||
||||Type of shares||||
||Number of tradable shares||||||
|Name of shareholder|||||||
||held at the end of the period||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)|861,640,362||RMB ordinary shares||||
||||||861,640,362||

Hikvision 2017 Q3 Report
|||||
|-|-|-|-|
|||Type of shares||
||Number of tradable shares|||
|Name of shareholder||||
||held at the end of the period|Type|Number|
|Gong Hongjia|266,244,200|RMB ordinary shares|266,244,200|
|The 52nd Research Institute at China ElectronicsTechnology Group Corporation|180,775,044|RMB ordinary shares||
||||180,775,044|
|Citic Securities Co., Ltd.|112,283,074|RMB ordinary shares|112,283,074|
|Xinjiang Weixun Investment Management LimitedPartnership|111,488,376|RMB ordinary shares||
||||111,488,376|
|UBS AG|111,151,294|RMB ordinary shares|111,151,294|
|Central Huijin Investment Ltd.|65,818,800|RMB ordinary shares|65,818,800|
|Zhejiang Orient Holdings Co., Ltd.|50,475,000|RMB ordinary shares|50,475,000|
|Xinjiang Pukang Investment Limited Partnership|48,086,719|RMB ordinary shares|48,086,719|
||China Electronics Technology HIK Group Co., Ltd. and The 52nd Research|||
||Institute at China Electronics Technology Group Corporation are all subject to|||
||control of China Electronics Technology Group Corporation. Ms. Chen|||
||Chunmei, controlling shareholder of Xinjiang Pukang Investment Limited|||
|Explanation on associated relationship or/and persons|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|||
|acting in concert among the above-mentioned||||
||Pukang Investment Limited Partnership.|||
|shareholders:|Except for these, the Company does not know whether the other shareholders|||
||are related parties and whether they are acting-in-concert parties in accordance|||
||with the Measures for Management of the Disclosure of the Shareholding|||
||changes of shareholders of the listed Company (《上市公司股东持股变动信|||
||息披露管理办法》)|||

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 2017 Q3 Report 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
||||||
|-|-|-|-|-|
||September 30th 2017|January 1st 2017|||
|Item|||YoY change (%)|Note of Changes|
||（RMB）|（RMB）|||
|Account Receivable|15,171,778,607.65|11,243,843,324.90|34.93%|Increase follows the increase in sales revenue|
|Prepayments|370,891,604.84|279,023,207.91|32.93%|Increase in prepayments for material procurement|
|Inventories|5,440,626,715.72|3,829,947,876.75|42.05%|Inventory increases as sales increase|
|Other Current Asset|512,032,844.26|4,153,992,276.78|-87.67%|Maturity of principal-guaranteed financial products|
|Long-term receivables|134,283,654.33|251,588,919.15|-46.63%|Collection of receivables due|
|Long-term equity investment|124,385,439.21|35,000,000.00|255.39%|Mainly due to investments on Maxio Technology (Hangzhou)|
|Construction in process|1,205,329,627.29|316,482,522.36|280.85%|Mainly due to increase of investments in Security Industrial Base Project(Tonglu) Phase 2 & Internet Security Industry Base|
|Short-term loans|650,412,864.82|32,291,324.85|1914.20%|Increase of loans for temporary revolving capital|
|Financial liabilities measured by fair value andchanges in fair value would be recognized inthe current period gains and losses|28,187,297.02|69,789,502.97|-59.61%|Change in fair value of financial derivatives|
|Dividends payable|92,407,139.16|20,105,831.16|359.60%|Implementation of 2016 annual profit distribution scheme, dividend payablefor restricted incentive shares increased|

Hikvision 2017 Q3 Report
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|-|-|-|-|-|
||September 30th 2017|January 1st 2017|||
|Item|||YoY change (%)|Note of Changes|
||（RMB）|（RMB）|||
|Other payables|497,695,436.00|1,049,164,707.44|-52.56%|Prepaid capital for subscription of 2016 Restricted Incentive Shares Schemewas transferred to share capital after capital verification|
|Non-current liabilities due within one year|723,925,366.11|15,340,813.03|4618.95%|Increase in portion of long-term loans that are due within one year|
|Other current liabilities|853,507,327.55|300,177,750.17|184.33%|Increase of restricted shares after registration of 2016 restricted incentiveshares granted|
|Deferred income|21,106,099.45|10,833,745.99|94.82%|Deferred income increase due to cloud storage service|
|Share capital|9,228,865,114.00|6,102,706,885.00|51.23%|Increase in share capital due to 2016 annual profit distribution|
|Capital reserves|1,770,445,386.63|1,050,240,853.66|68.58%|Increase of capital reserves and treasury shares after registration of 2016restricted incentive shares granted|
|Treasury stock|853,507,327.55|300,177,750.17|184.33%||

1.2 Explanation for variations in income statement items
||||||
|-|-|-|-|-|
|Item|Q1-Q3 2017 (RMB)|Q1-Q3 2016 (RMB)|YoY Change (%)|Note of changes|
|Operating Income|27,729,742,158.18|21,144,424,306.23|31.14%|Operating Income increased with the steady increase of market demands.|
|Business Taxes and Levies|276,908,073.14|157,714,144.35|75.58%|Increase with the operating income growth|
|Selling expenses|2,960,426,405.60|2,007,702,021.31|47.45%|Selling expenses increase with the Company’s continuous increasinginvestments on domestic and overseas sales network|
|Administrative expenses|2,862,065,389.84|2,125,536,667.86|34.65%|The Company’s increasing investments in R&D|
|Financial expense|218,299,111.47|-125,733,322.07|-273.62%|Increase in foreign currency exchange losses during the current reporting|

Hikvision 2017 Q3 Report
||||||
|-|-|-|-|-|
|Item|Q1-Q3 2017 (RMB)|Q1-Q3 2016 (RMB)|YoY Change (%)|Note of changes|
|||||period affected by currency fluctuations|
|Impairment Losses of Assets|375,478,836.89|238,784,535.52|57.25%|Increase in A/R balance resulted in increase in bed debt provisions|
|Gains from changes in fair values (Losses areindicated by "－")|38,626,739.56|-7,414,642.50|-620.95%|Change in fair value of financial derivatives|
|Other Income|1,040,078,811.54|0.00|100%|Mainly for VAT Rebates, booked in other income instead of non-operatingincome, according the accounting regulations.|
|Non-operating Expenses|2,787,256.22|27,013,815.80|-89.68%|According to the latest local tax regulations, the water conservancyconstruction fund will not be paid this year|
|Income Tax Expenses|662,436,664.14|507,470,567.59|30.54%|Increase with the total profit growth|

1.3 Explanation for variations in cash flow statement items
||||||
|-|-|-|-|-|
|Item|Q1-Q3 2017 (RMB)|Q1-Q3 2016 (RMB)|YoY Change (%)|Note of changes|
|Net cash flow from operating activities|95,849,570.76|1,955,771,375.36|-95.10%|Mainly due to payments for material procurements, tax payables, and 2016year-end bonus|
|Net cash flow from investment activities|2,657,270,850.26|737,733,824.15|260.19%|Mainly due to collection of matured principal-guaranteed financial products|
|Net cash flow from financing activities|-2,992,526,336.30|-864,916,664.30|-245.99%|Mainly due to dividends paid|
|Net increase in cash and cash equivalents|-577,320,410.12|2,006,581,139.27|-128.77%|Mainly due to payments for material procurements, tax payables, and 2016year-end bonus|

2. Progress and influence of significant events, analysis and explanation of corresponding solutions.
□ Applicable√ Inapplicable
Hikvision 2017 Q3 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 of theHikvision, CETHIK and its controlling subsidiaries (excluding Hikvision and its subsidiaries, the samebelow) will not be engaged in such business that is competitive to Hikvision and its subsidiaries directlyor indirectly.2. Commitments in decrease and regulation of transactions with related party: Zhejiang Haikang GroupCo., Ltd (hereinafter referred to as Haikang Group or actual controller) as the controlling shareholders ofHangzhou Hikvision Digital Technology Co., Ltd (hereinafter referred to as "Hikvision" or "ListedCompany") are commited as below for the transactions with Hikvsion:(1) Haikang Group will not make use of the controlling power to offer more favorable conditions toHikvision than those to any independent third party in any fair market transactions in the cooperation withHikvision.(2) Haikang Group will not make use of the controlling power to obtain the prior right to complete thetransaction 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 and fairness todeterimine prices according to the market on the basis of equality, voluntarily. The Company will obey theArticles of Association and other regulatory documents related to the avoiding of issues about relatedtransactions. The related transactions will go through approval procedures in accordance with related rulesand complete legal procedures, fulfilling the information disclosure obligations in respect to the relatedtransactions3. 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, secretary of theboard and other members of senior management shall not assume any positions other than directors and|29 October,2013|Long-term|Strictperformance|

Hikvision 2017 Q3 Report
|||||||
|-|-|-|-|-|-|
||||Date of|Term of||
|Commitments|Giver of commitments|Details of commitments|||Performance|
||||commitments|commitments||
|||supervisors or get any remuneration in CETHIK and/or any of its controlled entities; (2) Commitment inkeeping the management of labor, human resources and issues related to remuneration of the listedCompany 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 of thebranches and subsidiaries(3) Commitment to maintaining accounts with banks independently of and not sharing any bank accountwith 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, Haikang Grouphas committed as below for the subsequent development of Hikvsion according to the Securities Acts andrelevant laws and rules,4.1 Currently the Company has no plan to change or make significant adjustments for principal businessin the next 12 months;4.2 Currently the Company has no plan to sell, merge or operate with another Company for the assets andbusiness of the listed Company or its subsidiaries in the next 12 months.||||

Hikvision 2017 Q3 Report
|||||||
|-|-|-|-|-|-|
||||Date of|Term of||
|Commitments|Giver of commitments|Details of commitments|||Performance|
||||commitments|commitments||
|||4.3 Currently the Company has no plan to alter the Board of the Directors and senior management and noagreement with other shareholders about the appointment and removal of the directors or seniormanagement. The team of Board of Directors and senior management will remain unchanged for theforeseeable future.4.4 Currently the Company has no plan to make significant changes to the Articles of Association for thelisted Company.4.5 Currently the Company has no plan to make significant changes to the existing employee recruitmentfor the listed Company.4.6 Currently the Company has no plan to make significant changes for the dividend distribution plan forthe 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, He Hongli,Zheng Yibo, Hu Dan,、Jiang Yufeng, Liu Xiang, Wang Ruihong, Chen Junke’s tenure of the Company’sboard of directors, supervisors and senior management personnel, the annual transfer of Hikvision’s totalshares should not exceed 25% of total number of shares held under Weixun; within 6 months afterabovementioned personnel’s dimission, should not transfer hikvision’s shares held under Weixun.|17 May, 2010|Long term|Strictperformance|
||Hangzhou Pukang InvestmentLimited Partnership（later renamedas Xinjiang Pukang InvestmentLimited Partnership）|During Hu Yangzhong, Wu Weiqi, Gong Hongjia’s tenure of the Company’s board of directors,supervisors and senior management personne, the annual transfer of Hikvision’s total shares should notexceed 25% of total number of shares held under Pukang; whithin 6 months after abovementionedpersonnel’s dimission, should not transfer hikvision’s shares held under Pukang.|17 May, 2010|Long term|Strictperformance|
||The Company's directors,supervisors and executive:HuYangzhong,Wu Weiqi, JiangHaiqing, Zhou Zhiping，Xu Lirong,|During their tenure of the Company’s board of directors, supervisors and senior management personnel,the annual shares transfer should not exceed 25% of total number of shares held under Weixun; whthin 6months after their dimission, they should not transfer their shares held under Weixun.|17 May, 2010|Long term|Strictperformance|

Hikvision 2017 Q3 Report
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|-|-|-|-|-|-|
||||Date of|Term of||
|Commitments|Giver of commitments|Details of commitments|||Performance|
||||commitments|commitments||
||Cai Dingguo, He Hongli, ZhengYibo, Hu Dan, Jiang Yufeng, LiuXiang, Wang Ruihong, Chen Junke|||||
||Directors, executive officers of theCompany:Hu Yangzhong, Wu Weiqi|During their tenure of the Company’s board of directors, supervisors and senior management personnel,the annual shares transfer should not exceed 25% of total number of shares held under Pukang; whthin 6months after their dimission, they should not transfer their shares held under Pukang.|17 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 senior managementpersonnel, Chen’s annual shares transfer should not exceed 25% of total number of shares held underPukang; whthin 6 months after the dimission of Gong Hongjia,Chen should not transfer her shares heldunder Pukang.|17 May, 2010|Long-term|Strictperformance|
||China Electronics TechnologyGroup Corporation|To avoid any loss of the Company and other shareholders arising from any competing business, ChinaElectronics Technology Group Corporation, the actual controller of the Company, issued CommitmentLetter about Avoiding the Competition within the Same Industry (《避免同业竞争的承诺函》) on 18September, 2008.|18 September,2008|Long term|Strictperformance|
||Gong Hongjia；XinJiang WeiXun InvestmentManagement Limited Partnership；XinJiang KangPu InvestmentManagement Limited Partnership；ZheJiang Orient Holdings Co., Ltd.|To avoid any loss of the Company and other shareholders arising from any competing business, GongHongjia, Hangzhou WeiXun Investment Management Limited Partnership, ZheJiang Orient Holdings Co.,Ltd and Hangzhou KangPu Investment Management Limited Partnership, the promoters of the Company,issued Commitment Letter about Avoiding the Competition within the Same Industry (《避免同业竞争的承诺函》) on 10 July, 2008.|10 July, 2008|Long term|Strictperformance|
|Whether theundertaking isfulfilled intime|Yes|||||

Hikvision 2017 Q3 Report 4. Guidance on theCompany’s 2017 full year operational result.
Guidance on theCompany’s 2017 full year operational performance: Net profits attributable to shareholders of the Company are positive, and situation of turning losses into gains is not applicable.
|||||
|-|-|-|-|
|Estimated YoY change (%) of 2017 net profits attributable to shareholders of the Company.|15%|to|35%|
|Estimated variation interval of 2017 net profits attributable to shareholders of the Company.||||
||853,832.67|to|1,002,325.31|
|(0,000 RMB)||||
|2016 Net profits attributable to shareholders of the Company. (0,000 RMB) (Note)|742,463.19|||
|Note of change in operational results|The Company’s operating performance continues to have a steady growth.|||

Note: 2016 Net profits attributable to shareholders of the Company here were retroactively adjusted for business merger under the common control.
5. Financial Assets measured at fair value
√ Applicable□ Inapplicable
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Profits or losses on|||||||
|||the changes in fair|Cumulative fair value change|Purchase during the|Sales during the|Cumulative|||
|Category|Initial investment cost||||||Closing balance|Source of funds|
|||value in current|charged to equity|reporting period|reporting period|investment income|||
|||period|||||||
|Derivative instruments|2,485,985,565.37|38,626,739.56|--|1,587,765,939.71|--|23,849,562.03|1,512,525,748.71|Company's own funds|
|Total|2,485,985,565.37|38,626,739.56|--|1,587,765,939.71|--|23,849,562.03|1,512,525,748.71|--|

 6. Illegal provision of guarantees for external parties
□ Applicable√ Inapplicable
Hikvision 2017 Q3 Report No such case in the reporting period.
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 2017 Q3.
|||||
|-|-|-|-|
|Time of reception|Method of reception|Type of reception object|Basic situation of the research|
||Performance result|||
|July 24th 2017||Institutional and individual investors|CNINF, Investor Relations Activity Record: July 24th 2017|
||Conference Call|||
||Site Research and telephone|||
|From July 25th ,2017 to August 4th,2017||Institutional investors and media|CNINF, Investor Relations Activity Record: From June 25th, 2017 to August 4th, 2017|
||communication|||
||Site Research and telephone|||
|From August 7th,2017 to August 25th, 2017||Institutional investors|CNINF, Investor Relations Activity Record: From August 7th, 2017 to August 25th, 2017|
||communication|||
||Site Research and telephone|||
|From August 28th,2017 to September 8th,2017||Institutional investors|CNINF, Investor Relations Activity Record: From August 28th, 2017 to September 8th, 2017|
||communication|||
||Site Research and telephone|||
|From September 11th, 2017 to September 29th, 2017||Institutional and individual investors|CNINF, Investor Relations Activity Record: From September 11th, 2017 to September 29th, 2017|
||communication|||

Hikvision 2017 Q3 Report 8.2 Participation of conferences for investor relationship activities during 2017 Q3
||||||
|-|-|-|-|-|
|||||Method of reception|
|Time of conference|Location|Conference Name|Type of reception object||
|July 2017|Shenzhen|Macquarie 2017 A-share Annual Investor Forum|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|July 2017|London-Edinburgh|UK NDR – via BNP Paribas|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|August 2017|Singapore-Hongkong|Singapore & Hong Kong NDR-via BoA Merrill Lynch|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|September 2017|Shenzhen|UBS 2017 A-Share Conference|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|September 2017|Shenzhen|Goldman Sachs 2017 China Conference|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|September 2017|Taibei|Credit Suisse 18th Annual Asian Technology Conference|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|September 2017|Shanghai|Nomura China Investor Forum 2017|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|September 2017|London|Morgan Stanley 2017 Asia Corporate Day|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|September 2017|London|2017 CICC London Forum|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|
|September 2017|Hongkong|24th CLSA Investors’ Forum|All kinds of investors|One-on-One, One-on-multi, small group Meetings, and etc.|

 8.3 Investor relations activity statistics during 2017 Q3
|||
|-|-|
||104|
|Number of daily research received (Site and telephone conference)||
||892|
|Number of institutional investors received (times)||
||32|
|Number of individual investors received (headcounts)||
||10|
|Number of investor relations conference participated||

Hikvision 2017 Q3 Report IV. Financial Reports
5.1 Financial Reports
1. Consolidated Balance Sheet
Prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
September 30th, 2017
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Cash and bank balances|13,167,615,852.24|13,638,078,139.56|
|Balances with clearing agencies|||
|Placements with banks and other financial|||
|institutions|||
|Financial assets measured by fair value|||
|and changes in fair value would be|12,820,377.42|15,547,537.34|
|recognized in the current period gains and|||
|losses|||
|Derivative financial assets|||
|Notes receivable|3,260,687,198.15|2,843,404,415.52|
|Accounts receivable|15,171,778,607.65|11,243,843,324.90|
|Prepayments|370,891,604.84|279,023,207.91|
|Premiums receivable|||
|Amounts receivable under reinsurance|||
|contracts|||
|Reinsurer's share of insurance contract|||
|reserves|||
|Interests receivable|||
|Dividends receivable|||
|Other receivables|554,550,891.60|528,644,227.42|
|Financial assets purchased under resale|||
|agreements|||
|Inventories|5,440,626,715.72|3,829,947,876.75|
|Assets classified as held-for-sale|||
|Non-current assets due within one year|||
|Other current assets|512,032,844.26|4,153,992,276.78|
|Total Current Assets|38,491,004,091.88|36,532,481,006.18|

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Non-current Assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets|287,466,813.00|283,836,013.00|
|Held-to-maturity investments|||
|Long-term receivables|134,283,654.33|251,588,919.15|
|Long-term equity investment|124,385,439.21|35,000,000.00|
|Investment properties|||
|Fixed assets|2,928,515,602.53|2,853,908,475.49|
|Construction in progress|1,205,329,627.29|316,482,522.36|
|Materials for construction of fixed assets|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|409,074,338.20|410,456,789.63|
|Development expenditures|||
|Goodwill|248,364,401.47|248,364,401.47|
|Long-term prepaid expenses|||
|Deferred tax assets|444,377,346.59|375,310,938.70|
|Other non-current assets|31,607,418.00|40,999,684.42|
|Total Non-current Assets|5,813,404,640.62|4,815,947,744.22|
|Total Assets|44,304,408,732.50|41,348,428,750.40|
|Current Liabilities:|||
|Short-term borrowings|650,412,864.82|32,291,324.85|
|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 measured by fair value|||
|and changes in fair value would be|28,187,297.02|69,789,502.97|
|recognized in the current period gains and|||
|losses|||
|Derivative financial liabilities|||
|Notes payable|733,584,221.11|876,804,536.72|
|Accounts payable|6,711,619,644.23|7,009,322,028.13|
|Receipts in advance|402,471,608.02|469,804,837.45|

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Financial assets sold under repurchase|||
|agreements|||
|Fees and commissions payable|||
|Payroll payable|950,428,923.64|1,084,951,139.10|
|Taxes payable|974,927,666.86|1,205,710,722.22|
|Interests payable|||
|Dividends payable|92,407,139.16|20,105,831.16|
|Other payables|497,695,436.00|1,049,164,707.44|
|Amounts payable under reinsurance|||
|contracts|||
|Insurance contract reserves|||
|Funds from securities trading agency|||
|Funds from underwriting securities agency|||
|Liabilities classified as held for sale|||
|Non-current liabilities due within one year|723,925,366.11|15,340,813.03|
|Other current liabilities|853,507,327.55|300,177,750.17|
|Total Current Liabilities|12,619,167,494.52|12,133,463,193.24|
|Non-current Liabilities:|||
|Long-term borrowings|1,310,990,200.58|1,722,207,584.33|
|Bonds payable|3,129,320,000.00|2,954,449,528.77|
|Including: Preferred share|||
|Perpetual bond|||
|Long-term payables|5,613,544.53|7,000,000.00|
|Long-term employee benefits payable|||
|Special payables|||
|Provisions|47,757,207.79|41,933,212.54|
|Deferred income|21,106,099.45|10,833,745.99|
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|4,514,787,052.35|4,736,424,071.63|
|Total liabilities|17,133,954,546.87|16,869,887,264.87|
|Owners’ Equities|||
|Share capital|9,228,865,114.00|6,102,706,885.00|
|Other equity instruments|||
|Including: Preferred share|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Perpetual debt|||
|Capital reserves|1,770,445,386.63|1,050,240,853.66|
|Less: Treasury stock|853,507,327.55|300,177,750.17|
|Other comprehensive income|-40,837,393.47|-41,230,777.21|
|Special reserves|||
|Surplus reserve|2,615,437,822.15|2,615,437,822.15|
|General risk reserve|||
|Retained profits|14,204,721,105.21|14,856,778,392.88|
|Total owners' equity attributable to owner of|||
||26,925,124,706.97|24,283,755,426.31|
|the Company|||
|Minority interests|245,329,478.66|194,786,059.22|
|Total owners' equity|27,170,454,185.63|24,478,541,485.53|
|Total liabilities and owners' equity|44,304,408,732.50|41,348,428,750.40|

 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|10,171,408,930.81|10,249,118,159.19|
|Financial assets measured by fair value|||
|and changes in fair value would be|2,036,180.78|5,284,890.86|
|recognized in the current period gains and|||
|losses|||
|Derivative financial assets|||
|Notes receivable|195,579,174.36|221,542,747.41|
|Accounts receivable|15,674,121,467.35|10,128,753,520.42|
|Prepayments|66,143,783.63|8,256,040.04|
|Interests receivable|||
|Dividends receivable|||
|Other receivables|1,470,443,724.81|417,963,245.46|
|Inventories|562,818,018.22|566,168,466.17|
|Assets classified as held-for-sale|||
|Non-current assets due within one year|||
|Other current assets|224,884,764.62|3,889,519,711.57|

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Total Current Assets|28,367,436,044.58|25,486,606,781.12|
|Non-current Assets:|||
|Available-for-sale financial assets|287,456,813.00|283,221,700.00|
|Held-to-maturity investments|||
|Long-term receivables|14,620,981.46|72,153,363.60|
|Long-term equity investment|2,819,174,690.37|1,714,688,703.42|
|Investment properties|||
|Fixed assets|1,719,412,693.46|1,720,579,461.05|
|Construction in progress|785,813,481.15|248,447,641.34|
|Materials for construction of fixed assets|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|128,508,954.76|131,566,733.76|
|Development expenditure|||
|Goodwill|||
|Long-term prepaid expenses|||
|Deferred tax assets|194,230,198.07|177,568,964.27|
|Other non-current assets|31,607,418.00|10,782,858.00|
|Total Non-Current Assets|5,980,825,230.27|4,359,009,425.44|
|Total Assets|34,348,261,274.85|29,845,616,206.56|
|Current Liabilities:|||
|Short-term borrowings|||
|Financial liabilities measured by fair value|||
|and changes in fair value would be|4,865,377.43|58,858,697.43|
|recognized in the current period gains and|||
|losses|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|1,502,448,540.16|138,851,152.86|
|Receipts in advance|217,251,242.62|233,831,105.17|
|Payroll payable|700,970,176.81|811,701,475.85|
|Taxes payable|917,433,501.80|998,754,860.91|
|Interests payable|||
|Dividends payable|92,407,139.16|20,105,831.16|

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Other payables|960,670,883.56|787,861,780.95|
|Liabilities classified as held-for-sale|||
|Non-current liabilities due within one year|23,925,366.11||
|Other current liabilities|853,507,327.55|300,177,750.17|
|Total Current Liabilities|5,273,479,555.20|3,350,142,654.50|
|Non-Current Liabilities:|||
|Long-term borrowings|||
|Bonds payable|3,129,320,000.00|2,954,449,528.77|
|Including: Preferred share|||
|Perpetual bond|||
|Long-term payables|||
|Long-term employee benefits payable|||
|Special payables|||
|Provisions|34,240,710.46|28,799,848.84|
|Deferred income|||
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|3,163,560,710.46|2,983,249,377.61|
|Total liabilities|8,437,040,265.66|6,333,392,032.11|
|Owners' equity|||
|Share capital|9,228,865,114.00|6,102,706,885.00|
|Other equity instruments|||
|Including: Preferred share|||
|Perpetual bond|||
|Capital reserves|1,698,638,895.56|955,687,875.52|
|Less: Treasury share|853,507,327.55|300,177,750.17|
|Other comprehensive income|||
|Special reserves|||
|Surplus reserve|2,615,437,822.15|2,615,437,822.15|
|Retained profits|13,221,786,505.03|14,138,569,341.95|
|Total owners' equity|25,911,221,009.19|23,512,224,174.45|
|Total liabilities and owners' equity|34,348,261,274.85|29,845,616,206.56|

Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2017 Q3 Report 3. Consolidated income statement during the current reporting period
Unit: RMB
||||
|-|-|-|
|Item|2017 Q3|2016 Q3|
|I. Total operating income|11,282,202,421.66|8,590,947,557.65|
|Including: Operating income|11,282,202,421.66|8,590,947,557.65|
|Interest income|||
|Premiums earned|||
|Fees and commissions income|||
|II. Total operating costs|8,770,040,115.83|6,599,550,570.52|
|Including: Operating cost|6,056,968,730.55|4,838,554,730.46|
|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|102,675,477.44|60,292,484.37|
|Selling expenses|1,233,501,449.38|795,870,477.03|
|Administrative expenses|1,100,355,512.71|853,584,677.55|
|Financial expense|152,798,483.82|-28,550,373.71|
|Impairment losses of assets|123,740,461.93|79,798,574.82|
|Add: Gains from changes in fair values (Losses|||
||74,249.15|867,253.82|
|are indicated by "－")|||
|Investment income (Loss is indicated by|||
||-3,104,411.90|15,755,624.59|
|"－")|||
|Including: Income from investments in|||
||7,380,152.85||
|associates and joint ventures|||
|Foreign exchange gains (Losses|||
|are indicated by “－”)|||
|Other income|362,667,519.13||
|III. Operating profit (Loss is indicated by|||
||2,871,799,662.21|2,008,019,865.54|
|"－")|||
|Add: Non-operating income|67,674,725.34|315,409,437.93|
|Including: Gains from disposal of non-current|||
||21,403.96|427,503.53|
|assets|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|2017 Q3|2016 Q3|
|Less: Non-operating expenses|506,767.80|8,965,444.99|
|Including: Losses from disposal of non-current|||
||81,352.15|472,560.73|
|assets|||
|IV. Total profit (total losses expressed with "-")|2,938,967,619.75|2,314,463,858.48|
|Less: Income tax expenses|93,778,273.29|74,938,591.48|
|V. Net profit (net loss expressed with "-")|2,845,189,346.46|2,239,525,267.00|
|Net profit attributable to owners of parent|||
||2,861,268,129.82|2,243,940,889.34|
|company|||
|Profit or loss attributable to minority interests|-16,078,783.36|-4,415,622.34|
|VI. Other comprehensive income, net of|||
||-34,857,287.93|108,011,435.11|
|income tax|||
|Other comprehensive income attributable to|||
||-28,196,995.97|1,154,023.40|
|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|||
||-28,196,995.97|1,154,023.40|
|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|||
||-28,196,995.97|1,154,023.40|
|of financial statements denominated in|||
|foreign currencies|||
|6. Others|||
|Other comprehensive income attributable to|||
||-6,660,291.96|106,857,411.71|
|minority interests, net of tax|||
|VII. Total comprehensive income|2,810,332,058.53|2,347,536,702.11|
|Total comprehensive income attributable to|||
||2,833,071,133.85|2,245,094,912.74|
|owners of the parent company|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|2017 Q3|2016 Q3|
|Total comprehensive income attributable to|||
||-22,739,075.32|102,441,789.37|
|minority interests|||
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.315|0.249|
|(II) Diluted earnings per share|0.313|0.247|

 Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan 4. Income statement of the Parent Company during the reporting period
Unit: RMB
||||
|-|-|-|
|Item|2017 Q3|2016 Q3|
|I. Total operating income|5,518,823,572.75|4,493,569,594.70|
|Less: Operating Cost|1,655,477,081.47|1,649,000,695.11|
|Business taxes and levies|77,581,355.14|55,620,993.73|
|Selling expenses|573,960,832.27|530,442,933.30|
|Administrative expenses|623,375,386.11|635,149,996.01|
|Financial expense|-47,411,878.28|-34,985,045.43|
|Impairment losses of assets|143,064,436.54||
|Add: Gains from changes in fair values (Losses|||
||-2,995,797.66|-2,890,468.50|
|are indicated by "－")|||
|Investment income (Loss is indicated by "－")|-4,051,388.64|19,989,051.27|
|Including: Income from investments in|||
||4,657,858.86||
|associates and joint ventures|||
|Other Income|352,400,737.85||
|II. Operating profit (loss is indicated by "－")|2,838,129,911.05|1,675,438,604.75|
|Add: Non-operating income|25,575,460.96|260,077,467.68|
|Including: Gains from disposal of|||
||19,962.46|51,539.02|
|non-current assets|||
|Less: Non-operating expenses|378,569.23|1,060,813.16|
|Including: Losses from disposal of|||
||46,217.14|63,991.05|
|non-current assets|||
|III. Total profit (total loss is indicated by "－")|2,863,326,802.78|1,934,455,259.27|
|Less: Income tax expenses|76,096,578.94|1,856,915.93|
|IV. Net profit (Net loss is indicated by "－")|2,787,230,223.84|1,932,598,343.34|
|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|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|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|2,787,230,223.84|1,932,598,343.34|
|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 5. Consolidated Income Statement from January
1st
2017 to September
30th
2017
Unit: RMB
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|I. Total operating income|27,729,742,158.18|21,144,424,306.23|
|Including: Operating income|27,729,742,158.18|21,144,424,306.23|
|Interest income|||
|Premiums earned|||
|Fees and commissions income|||
|II. Total operating costs|22,170,841,572.33|16,760,775,041.73|
|Including: Operating cost|15,477,663,755.39|12,356,770,994.76|
|Interest expense|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|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|276,908,073.14|157,714,144.35|
|Selling expenses|2,960,426,405.60|2,007,702,021.31|
|Administrative expenses|2,862,065,389.84|2,125,536,667.86|
|Financial expense|218,299,111.47|-125,733,322.07|
|Impairment losses of assets|375,478,836.89|238,784,535.52|
|Add: Gains from changes in fair values (Losses|||
||38,626,739.56|-7,414,642.50|
|are indicated by "－")|||
|Investment income (Loss is indicated by|||
||46,547,777.20|42,207,125.49|
|"－")|||
|Including: Income from investments in|||
||3,502,450.80||
|associates and joint ventures|||
|Foreign exchange gains (Losses|||
|are indicated by “－”)|||
|Other income|1,040,078,811.54||
|III. Operating profit (Loss is indicated by|||
||6,684,153,914.15|4,418,441,747.49|
|"－")|||
|Add: Non-operating income|102,191,004.92|967,394,959.57|
|Including: Gains from disposal of non-current|||
||2,820,089.76|1,747,981.58|
|assets|||
|Less: Non-operating expenses|2,787,256.22|27,013,815.80|
|Including: Losses from disposal of non-current|||
||653,063.40|2,092,190.43|
|assets|||
|IV. Total profit (total losses expressed with "-")|6,783,557,662.85|5,358,822,891.26|
|Less: Income tax expenses|662,436,664.14|507,470,567.59|
|V. Net profit (net loss expressed with "-")|6,121,120,998.71|4,851,352,323.67|
|Net profit attributable to owners of parent|||
||6,152,814,186.52|4,851,762,418.77|
|company|||
|Profit or loss attributable to minority interests|-31,693,187.81|-410,095.10|
|VI. Other comprehensive income, net of|||
||-5,423,522.89|96,729,834.16|
|income tax|||
|Other comprehensive income attributable to|||
||393,383.74|-16,387,539.95|
|owners of the Company, net of tax|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|(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|||
||393,383.74|-16,387,539.95|
|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|||
||393,383.74|-16,387,539.95|
|of financial statements denominated in|||
|foreign currencies|||
|6. Others|||
|Other comprehensive income attributable to|||
||-5,816,906.63|113,117,374.11|
|minority interests, net of tax|||
|VII. Total comprehensive income|6,115,697,475.82|4,948,082,157.83|
|Total comprehensive income attributable to|||
||6,153,207,570.26|4,835,374,878.82|
|owners of the parent company|||
|Total comprehensive income attributable to|||
||-37,510,094.44|112,707,279.01|
|minority interests|||
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.671|0.538|
|(II) Diluted earnings per share|0.673|0.535|

 Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2017 Q3 Report 6. Income Statement of the Parent Company from January
1st
2017 to September
30th
2017
Unit: RMB
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|I. Total operating income|13,028,365,700.13|11,472,963,111.24|
|Less: Operating Cost|4,006,666,044.52|4,078,639,749.97|
|Business taxes and levies|182,107,831.11|143,894,977.35|
|Selling expenses|1,380,249,988.98|1,367,974,513.55|
|Administrative expenses|1,941,372,228.12|1,639,985,338.67|
|Financial expense|-151,720,746.96|-67,957,249.74|
|Impairment losses of assets|299,691,053.22|139,666,067.60|
|Add: Gains from changes in fair values (Losses|||
||50,744,609.92|-2,890,468.50|
|are indicated by "－")|||
|Investment income (Loss is indicated by "－")|29,045,580.78|50,125,567.24|
|Including: Income from investments in|||
||3,248,710.08||
|associates and joint ventures|||
|Other Income|997,732,905.65||
|II. Operating profit (loss is indicated by "－")|6,447,522,397.49|4,217,994,812.58|
|Add: Non-operating income|45,863,699.95|874,969,681.24|
|Including: Gains from disposal of|||
||2,558,331.33|1,329,862.86|
|non-current assets|||
|Less: Non-operating expenses|1,592,024.50|6,852,200.55|
|Including: Losses from disposal of|||
||259,632.69|1,348,445.90|
|non-current assets|||
|III. Total profit (total loss is indicated by "－")|6,491,794,072.94|5,086,112,293.27|
|Less: Income tax expenses|603,705,435.66|454,024,896.65|
|IV. Net profit (Net loss is indicated by "－")|5,888,088,637.28|4,632,087,396.62|
|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|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|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|5,888,088,637.28|4,632,087,396.62|
|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 7. Consolidated Cash Flow Statement from January
1st
2017 to September
30th
2017
Unit: RMB
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|I. Cash flows from operating activities:|||
|Cash received from sale of goods|||
||27,024,807,952.59|21,036,029,978.05|
|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|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|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|2,115,509,024.59|1,775,399,086.25|
|Other cash received relating to|||
||311,501,723.20|271,681,570.88|
|operating activities|||
|Sub-total of cash inflows from operating|||
||29,451,818,700.38|23,083,110,635.18|
|activities|||
|Cash payments for goods purchased and|||
||21,162,642,985.71|14,707,958,913.14|
|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|3,498,922,254.19|2,373,218,843.51|
|Payments of various types of taxes|2,506,554,948.17|2,045,357,451.72|
|Other cash paid relating to operating activities|2,187,848,941.55|2,000,804,051.45|
|Sub-total of cash outflows from operating|||
||29,355,969,129.62|21,127,339,259.82|
|activities|||
|Net Cash Flow from Operating Activities|95,849,570.76|1,955,771,375.36|
|II. Cash Flows from Investing Activities:|||
|Cash receipts from disposals and recovery of|||
||5,173,000,000.00|1,447,812,000.00|
|investments|||
|Cash receipts from investment income|54,914,031.53|42,709,086.27|
|Net cash receipts from disposals of fixed|||
||16,707,465.48|335,458.22|
|assets, intangible assets and other long-term|||
|assets|||
|Net cash receipts from disposals of|||
|subsidiaries and other business units|||
|Other cash received relating to|||
||3,146,041.25|21,068,035.05|
|investing activities|||
|Sub-total of cash inflows from investing|||
||5,247,767,538.26|1,511,924,579.54|
|activities|||
|Cash payments to acquire or construct fixed|||
||985,865,888.00|601,716,966.90|
|assets, intangible assets and other long-term|||
|assets|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|Cash paid to acquire investments|1,506,630,800.00||
|Net increase in pledged loans receivables|||
|Net cash payments for acquisitions of|||
||98,000,000.00|172,473,788.49|
|subsidiaries and other business units|||
|Other cash paid relating to|||
|investing activities|||
|Sub-total of cash outflows from investing|||
||2,590,496,688.00|774,190,755.39|
|activities|||
|Net Cash Flow from Investment Activities|2,657,270,850.26|737,733,824.15|
|III. Cash flows from financing activities:|||
|Cash receipts from capital contributions|62,024,653.20|3,092,968,537.96|
|Including: cash received by subsidiaries|||
|from capital contributions from minority|||
|owners|||
|Cash receipts from borrowings|5,437,295,986.43|3,878,463,176.04|
|Cash receipts from bond issue|||
|Other cash receipts relating to|||
||1,492,209,115.48|1,258,376,312.14|
|financing activities|||
|Sub-total of cash inflows from financing|||
||6,991,529,755.11|8,229,808,026.14|
|activities|||
|Cash repayments of amounts borrowed|4,559,910,249.53|4,676,886,269.22|
|Cash payments for distribution of dividends|||
||3,793,627,103.59|2,893,051,375.91|
|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|||
||1,630,518,738.29|1,524,787,045.31|
|activities|||
|Sub-total of cash outflows from financing|||
||9,984,056,091.41|9,094,724,690.44|
|activities|||
|Net Cash Flow from Financing Activities|-2,992,526,336.30|-864,916,664.30|
|IV. Effect of Foreign Exchange Rate Changes|||
||-337,914,494.84|177,992,604.06|
|on Cash and Cash Equivalents|||
|V. Net Increase in Cash and Cash Equivalents|-577,320,410.12|2,006,581,139.27|
|Add: Opening balance of Cash and Cash|||
||13,522,337,697.28|10,033,468,750.19|
|Equivalents|||
|VI. Closing Balance of Cash and Cash|||
||12,945,017,287.16|12,040,049,889.46|
|Equivalents|||

Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2017 Q3 Report 8. Cash Flow Statement of the Parent Company from January
1st
2017 to September
30th
2017
Unit: RMB
||||
|-|-|-|
|Item|2017 Q1~Q3|2016 Q1~Q3|
|I. Cash Flows from Operating Activities::|||
|Cash receipts from the sale of goods and the|||
||9,384,051,521.72|10,965,114,359.22|
|rendering of services|||
|Refund of tax and levies|997,732,905.65|916,006,930.31|
|Other cash receipts relating to operating|||
||229,260,124.67|202,657,951.84|
|activities|||
|Sub-total of cash inflows from operating|||
||10,611,044,552.04|12,083,779,241.37|
|activities|||
|Cash payments for goods acquired|||
||3,469,498,225.96|3,933,974,389.41|
|and services received|||
|Cash payments to and on behalf of|||
||1,925,850,223.65|1,529,890,910.34|
|employees|||
|Payments of all types of taxes|2,202,877,884.71|1,669,302,666.66|
|Other cash payments relating to operating|||
||1,323,221,056.02|1,401,351,868.90|
|activities|||
|Sub-total of cash outflows from operating|||
||8,921,447,390.34|8,534,519,835.31|
|activities|||
|Net Cash Flow from Operating Activities|1,689,597,161.70|3,549,259,406.06|
|II. Cash Flows from Investing Activities:|||
|Cash receipts from disposals and recovery of|||
||5,170,000,000.00|1,123,000,000.00|
|investments|||
|Cash receipts from investment income|41,937,763.80|50,125,567.24|
|Net cash receipts from disposals of fixed|||
||7,676,944.32|128,125.68|
|assets, intangible assets and other long-term|||
|assets|||
|Net cash receipts from disposals of|||
||70,271.21||
|subsidiaries and other business units|||
|Other cash receipts relating to investing|||
||852,552,973.35|385,788,647.39|
|activities|||
|Sub-total of cash inflows from investing|||
||6,072,237,952.68|1,559,042,340.31|
|activities|||
|Cash payments to acquire or construct fixed|||
||417,737,223.06|217,425,074.41|
|assets, intangible assets and other long-term|||
|assets|||
|Cash payments to acquire investments|1,504,235,113.00||
|Net cash payments for acquisitions of|||
||1,077,486,527.00|431,266,751.40|
|subsidiaries and other business units|||
|Other cash payments relating to investing|||
||1,038,113,091.31|556,340,084.34|
|activities|||
|Sub-total of cash outflows from investing|||
||4,037,571,954.37|1,205,031,910.15|
|activities|||

Hikvision 2017 Q3 Report
||||
|-|-|-|
|Net Cash Flow from Investment Activities|2,034,665,998.31|354,010,430.16|
|III. Cash Flows from Financing Activities|||
|Cash receipts from capital contributions|||
|Cash receipts from borrowings|300,000,000.00||
|Cash receipts from issue of bonds||2,995,200,000.00|
|Other cash receipts relating to financing|||
||41,000.00|585,123,067.48|
|activities|||
|Sub-total of cash inflows from financing|||
||300,041,000.00|3,580,323,067.48|
|activities|||
|Cash repayments of amounts|||
||300,000,000.00|594,840,194.74|
|borrowed|||
|Cash payments for distribution of dividends|||
||3,715,492,679.55|2,872,725,623.22|
|or profits or settlement of interest expenses|||
|Other cash payments relating to financing|||
||15,151,512.29|578,874,356.00|
|activities|||
|Sub-total of cash outflows from financing|||
||4,030,644,191.84|4,046,440,173.96|
|activities|||
|Net Cash Flow from Financing Activities|-3,730,603,191.84|-466,117,106.48|
|IV. Effect of foreign exchange rate changes on|||
||-71,328,208.84|405,392.13|
|cash and cash equivalents|||
|V. Net increase in cash and cash equivalents|-77,668,240.67|3,437,558,121.87|
|Add: Beginning balance of cash|||
||10,245,969,003.13|6,548,073,680.91|
|and cash equivalents|||
|VI. Closing Balance of Cash and Cash|||
||10,168,300,762.46|9,985,631,802.78|
|Equivalents|||

Legal Representative: Chen Zongnian Person in Charge of the Accounting Department: Jin Yan Chief Accountant: Jin Yan
Hikvision 2017 Q3 Report V. Audit Report
Whether audit has been performed on this interim financial report
□ Yes√ No
TheCompany’s 2017 Quarter 3 report has not been audited
Note: This document is a translated version of the Chinese 2017 Quarter 3 Financial Report (“2017年度第三季度报告”), and the published announcements in the Chinese version shall prevail. The complete published Chinese 2017 Quarter 3 Financial Report document may be obtained at
http://www.cninfo.com.
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
October
31st,
2017