Hikvision Invests CNY 1 Bn in New Technology Zone

On December 1, 2020, Hikvision holds the commencement ceremony for its Zhengzhou Technology Zone. The technology zone is planned to be used for building a Hikvision middle area headquarter, an alarm services center, and other projects cooperated with CLP Group. It is estimated that the zone will gain a cumulative revenue of over CNY 10 billion in five years.

The company’s Q3 financial reports of 2020 show the company has recovered from the negative impact of COVID-19. From January to September, the company achieved revenue of CNY 42.02 billion, up 5.48% year-on-year, and the net profits contributing to shareholders reaches CNY 8.44 billion, up 5.13%. Its stock (002415: SH) rises over 35% since the beginning of 2020 giving the company a market capitalization over CNY 410 billion.

 As a large, state-owned video surveillance equipment manufacturer, Hikvision pays great attention to the research area. In 2019, its R&D cost reaches CNY 5.48 billion and accounts for 9.51% of its revenue. The ratio increases to 11.28% in the first nine months of 2020. With the two developed Technology Zones in Wuhan and Hangzhou and the new one in Zhengzhou, the company is expected to become a leading flash solution provider in China.