Hangzhou Hikvision Digital Technology (002415) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 23.78 billion, up 0.33% year-over-year; net profit attributable to shareholders was RMB 3.04 billion, down 13.37% year-over-year.

• For the first nine months, revenue was RMB 64.99 billion, up 6.06% year-over-year; net profit attributable to shareholders was RMB 8.11 billion, down 8.40% year-over-year.

• The company completed a general election of the Board and terminated the 2021 Restricted Stock Plan, repurchasing and canceling 97.4 million restricted shares.

Financial highlights

• Basic EPS for Q3 was RMB 0.339, down 11.02% year-over-year; for the first nine months, RMB 0.878, down 7.48%.

• Net cash flows from operating activities for the first nine months were RMB 2.60 billion, down 55.97% year-over-year.

• Weighted average ROE for the first nine months was 10.52%, down 2.07 percentage points year-over-year.

• Total assets as of September 30, 2024, were RMB 124.09 billion, down 10.63% from December 31, 2023.

Key financial ratios and metrics

• Gross margin for the first nine months was approximately 44.8%.

• Operating profit for the first nine months was RMB 10.12 billion.

• Net profit margin for the first nine months was 12.4%.

• Cash and cash equivalents decreased by 43.07% to RMB 28.26 billion as of September 30, 2024.