Hangzhou Hikvision Digital Technology (002415) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 18.53 billion, up 4.01% year-over-year after restatement for business combination under common control.

• Net profit attributable to shareholders was RMB 2.04 billion, a 6.41% increase year-over-year.

• Non-recurring gains and losses contributed RMB 112.25 million to net profit, mainly from government subsidies and fair value changes.

Financial highlights

• Basic and diluted EPS were both RMB 0.221, up 6.76% year-over-year.

• Net cash flows from operating activities improved to -RMB 1.74 billion from -RMB 3.97 billion, a 56.19% year-over-year improvement.

• Total assets as of March 31, 2025, were RMB 132.02 billion, up 4.76% from December 31, 2024.

• Owner's equity attributable to shareholders was RMB 80.67 billion, up 1.47% from year-end 2024.

Key financial ratios and metrics

• Weighted average ROE was 2.51%, up slightly from 2.47% year-over-year.

• Gross margin improved as cost of sales increased at a slower rate than revenue.