HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2020 Quarter 3 Report July to September 2020
October 24th 2020
Hikvision 2020 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 of the Company have attended the board meeting to review this quarterly report.
Chen Zongnian, the Company's legal representative, Jin Yan, the person in charge of the accounting work, and Zhan Junhua, the person in charge of accounting institution (accounting supervisor) 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 2020 Q3 Financial Report ("2020 年第 三季度报告全文"), and the published 2020 Q3 report in the Chinese version shall prevail. The complete published Chinese 2020 Q3 Financial Report may be obtained at http://www.cninfo.com.cn.
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Hikvision 2020 Q3 Report
Section II Corporate Profile
- Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of the previous accounting data □Yes√ No
Change(%) between | |||||
At September 30th 2020 | At December 31st 2019 | December 31st 2019 and | |||
September 30th 2020 | |||||
Total assets (RMB) | 79,216,734,278.27 | 75,358,000,240.29 | 5.12% | ||
Net assets attributable to shareholders of the Company | 47,800,785,407.20 | 44,904,033,876.83 | 6.45% | ||
(RMB) | |||||
2020 Q3 | YoY Change(%) between | 2020 Q1~Q3 | YoY Change(%) between | ||
2019 Q1~Q3 and 2020 | |||||
2020 Q3 and 2019 Q3 | |||||
Q1~Q3 | |||||
Operating income (RMB) | 17,750,035,645.86 | 11.53% | 42,021,194,889.62 | 5.48% | |
Net profits attributable to shareholders of the Company | 3,814,978,645.77 | 0.12% | 8,438,951,476.64 | 5.13% | |
(RMB) | |||||
Net profits attributable to shareholders of the Company | 3,576,189,605.69 | -2.48% | 8,039,687,983.37 | 3.21% | |
excluding non-recurring gains and losses (RMB) | |||||
Net cash flows from operating activities (RMB) | 5,464,651,652.26 | 883.95% | 5,534,617,992.83 | 4352.08% | |
Basic earnings per share (RMB/share) | 0.405 | 1.25% | 0.909 | 5.70% | |
Diluted earnings per share (RMB/share) | 0.405 | 1.25% | 0.909 | 5.70% | |
Weighted average Return on Equity (ROE) | 8.34% | -1.30% | 18.12% | -2.32% | |
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Hikvision 2020 Q3 Report
The total share capital of the Company as of the previous trading day of the financial report disclosure:
The total share capital of the Company as of the previous trading day of the financial report disclosure (share) | 9,345,010,696 |
Fully diluted earnings per share calculated using the latest share capital:
Fully diluted earnings per share (RMB/share) calculated with the latest share capital | 0.903 |
Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit:RMB | |
Item | January 1st 2020-September 30th 2020 |
Profit or loss from disposal of non-current assets (including the write-off for the | 304,642.17 |
impairment provision 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 and | 483,576,325.24 |
government subsidy based on standard quota or quantitative continuous application | |
according to the state industrial policy.) | |
Profits and losses attributed to change in fair value for held-for-trading financial assets, | |
derivative financial assets, held-for-trading financial liabilities, and derivative financial | |
liabilities; and investment income from disposal of held-for-trading financial assets, | 37,532,757.35 |
derivative financial assets, held-for-trading financial liabilities, derivative financial | |
liabilities and other debt investments, 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 | 30,885,184.58 |
Less: Impact of income tax | 123,079,331.88 |
Impact of the minority interests (after tax) | 29,956,084.19 |
Total | 399,263,493.27 |
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in the Public-Non-recurring Gains and Losses>, or classifies any non-recurring gain/loss item mentioned in the aforementioned note as a recurrent gain/loss item
□ Applicable √ Inapplicable
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Hikvision 2020 Q3 Report
- Total Number of Shareholders at the end of the reporting period and Information for Top 10 Shareholders
1. 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 | 242,350 | Total number of preferred shareholders (if any) whose voting rights have been | 0 | ||||||
the reporting period | recovered at the end of the reporting period | ||||||||
Particulars about top 10 shareholders | |||||||||
Share- | The number of | Pledged or frozen | |||||||
Total shares held at the | common shares held | ||||||||
Name of shareholder | Nature of shareholder | holding percentage | |||||||
period-end | with trading | Status | Amount | ||||||
(%) | |||||||||
restrictions | |||||||||
China Electronics Technology HIK Group Co., Ltd. | Domestic State-owned corporation | 38.88% | 3,632,897,256 | 0 | Pledged | 50,000,000 | |||
Gong Hongjia | Overseas individual | 12.43% | 1,161,608,214 | 941,292,525 | Pledged | 444,540,000 | |||
Hong Kong Securities Clearing Company | Overseas corporation | 5.97% | 558,304,047 | 0 | - | ||||
Ltd.(HKSCC) | |||||||||
Xinjiang Weixun Investment Management Limited | Domestic non-state-owned | 4.82% | 450,795,176 | 0 | Pledged | 93,148,998 | |||
Partnership | corporation | ||||||||
Perseverance Asset Management L.L.P.- | Funds, financial products, etc. | 2.47% | 231,000,026 | 0 | |||||
Perseverance LinShan No.1 YuanWang Fund | |||||||||
Xinjiang Pukang Investment Limited Partnership | Domestic non-state-owned | 1.95% | 182,510,174 | 0 | Pledged | 127,700,000 | |||
corporation | |||||||||
Hu Yangzhong | Domestic Individual | 1.95% | 182,186,477 | 136,639,858 | Pledged | 8,150,000 | |||
The 52nd Research Institute at China Electronics | Domestic State-owned corporation | 1.93% | 180,775,044 | 0 | - | ||||
Technology Group Corporation | |||||||||
CITIC Securities Company Limited | Domestic State-owned corporation | 1.21% | 113,094,618 | 0 | - | ||||
Central Huijin Investment Ltd. | Domestic State-owned corporation | 0.70% | 65,818,800 | 0 | - | ||||
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Hikvision 2020 Q3 Report | |||||
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s) | |||||
Name of shareholder | Number of common shares without trading restrictions held at the period-end | Type of shares | |||
Type | Number | ||||
China Electronics Technology HIK Group Co., Ltd. | 3,632,897,256 | RMB ordinary shares | 3,632,897,256 | ||
Hong Kong Securities Clearing Company | 558,304,047 | RMB ordinary shares | 558,304,047 | ||
Ltd.(HKSCC) | |||||
Xinjiang Weixun Investment Management Limited | 450,795,176 | RMB ordinary shares | 450,795,176 | ||
Partnership | |||||
Perseverance Asset Management L.L.P.- | 231,000,026 | RMB ordinary shares | 231,000,026 | ||
Perseverance LinShan No.1 YuanWang Fund | |||||
Gong Hongjia | 220,315,689 | RMB ordinary shares | 220,315,689 | ||
Xinjiang Pukang Investment Limited Partnership | 182,510,174 | RMB ordinary shares | 182,510,174 | ||
The 52nd Research Institute at China Electronics | 180,775,044 | RMB ordinary shares | 180,775,044 | ||
Technology Group Co. Ltd. | |||||
CITIC Securities Company Limited | 113,094,618 | RMB ordinary shares | 113,094,618 | ||
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 are all subject | |||||
to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei, limited partner of Xinjiang Pukang Investment | |||||
Limited Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder of the Company. Hu Yangzhong, domestic | |||||
Explanation on associated relationship and | individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang Pukang Investment | ||||
concerted actions among above shareholders | Limited Partnership. | ||||
Except for these, the Company does not know whether the other shareholders are related parties or 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. | |||||
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Hikvision 2020 Q3 Report
Any of the Company'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
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Hikvision 2020 Q3 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 | Balance at | YoY | |||||||
Item | September 30th 2020 | December 31st 2019 | change | Note of Changes | |||||
(RMB) | (RMB) | (%) | |||||||
According to the new revenue standard, | |||||||||
Contract assets | 126,490,278.41 | 0.00 | 100.00% | part of the completed and unsettled | |||||
assets and accounts receivable are | |||||||||
reclassified to contract assets. | |||||||||
Decrease in unsettled assets that have | |||||||||
Other non-current assets | 542,886,697.82 | 865,586,676.92 | -37.28% | been completed for more than one year | |||||
according to the construction progress | |||||||||
of the projects | |||||||||
Non-current assets due | 1,036,003,483.96 | 528,469,701.75 | 96.04% | ||||||
within one year | Increase in long-term receivables | ||||||||
Long-term receivables | 1,975,160,938.45 | 1,382,536,761.22 | 42.86% | confirmed by installment sales of goods | |||||
Long-term equity | 521,779,447.88 | 252,165,321.49 | 106.92% | Increase in external equity investments | |||||
investment | |||||||||
Other non-current financial | 458,565,043.51 | 312,398,267.44 | 46.79% | Increase in external equity investments | |||||
assets | |||||||||
Mainly due to increased investment in | |||||||||
the second phase of the Chengdu | |||||||||
Construction in progress | 1,248,463,158.58 | 631,555,479.06 | 97.68% | Technology Base, Hangzhou Innovation | |||||
Industrial Base and Chongqing | |||||||||
Technology Base | |||||||||
Short-term borrowings | 4,339,565,033.35 | 2,640,082,485.15 | 64.37% | Increased demand for short-term | |||||
working capital | |||||||||
Notes payable | 610,407,561.05 | 1,239,584,016.70 | -50.76% | Increase in purchase payment due | |||||
Taxes payable | 1,798,414,632.65 | 991,342,805.91 | 81.41% | Increase in unpaid corporate income tax | |||||
Other payables | 2,227,367,991.23 | 1,568,744,599.94 | 41.98% | Increase in accrued expenses and unpaid | |||||
dividends payable | |||||||||
Non-current liabilities due | 207,812,149.40 | 86,123,154.06 | 141.30% | Increase in long-term loans due within | |||||
within one year | one year | ||||||||
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Hikvision 2020 Q3 Report | ||||||||
The Company issued 1 billion RMB of | ||||||||
Other current liabilities | 1,817,675,879.67 | 913,534,538.26 | 98.97% | short-term commercial paper during the | ||||
current reporting period | ||||||||
Deferred income tax | 95,017,852.70 | 51,088,103.96 | 85.99% | Increased taxable temporary differences | ||||
liabilities | such as accelerated depreciation | |||||||
Other comprehensive | -88,048,825.29 | -53,541,146.99 | -64.45% | Exchange rate fluctuations caused a | ||||
decrease in the conversion differences | ||||||||
income | ||||||||
of foreign currency statements | ||||||||
1.2 Explanation for variations in income statement items
Item | 2020 Q1~Q3 (RMB) | 2019 Q1~Q3 (RMB) | YoY Change | Note of changes |
(%) | ||||
Financial expense | 154,708,009.70 | -626,571,624.15 | 124.69% | Increase in foreign exchange losses |
subject to exchange rate fluctuations. | ||||
Investment Income | 124,741,116.75 | 29,551,998.27 | 322.11% | Increase in investment dividends |
Gains from changes in | 40,458,673.51 | 11,214,933.39 | 260.76% | Increase in gains from changes in |
fair value of other non-current | ||||
fair value | ||||
financial assets | ||||
Asset impairment loss | -260,366,239.98 | -149,483,833.80 | 74.18% | Increase in provision for impairment |
of inventory | ||||
1.3 Explanation for variations in cash flow statement items
Item | 2020 Q1~Q3 (RMB) | 2019 Q1~Q3 (RMB) | YoY | Note of changes |
Change (%) | ||||
Net cash flows from | Mainly the increase in sales | |||
5,534,617,992.83 | 124,315,235.40 | 4352.08% | collection for the current reporting | |
operating activities | ||||
period | ||||
Increase in external equity | ||||
Net cash flows from | -1,803,764,753.48 | -1,257,968,335.26 | -43.39% | investment and long-term asset |
investing activities | purchase and construction | |||
expenditures | ||||
2. Progress and influence of significant events, analysis and explanation of corresponding solutions.
√ Applicable □ Inapplicable
On July 24th 2020, the 18th meeting of the fourth board of directors of the Company reviewed and approved the Proposal on Transfer of Part of Assets to the Company's Holding Subsidiary of Innovative Business", agreeing to the Company to transfer the
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Hikvision 2020 Q3 Report
asset group of the thermal imaging division of Hikvision at a consideration of RMB 801.14 million (excluding tax) to Hangzhou Hikmicro Sensing Technology Co., Ltd., a holding subsidiary of innovative business. The above transfer was completed in July 2020.
On May 23th 2020, the Company disclosed the Announcement on the pre-disclosure of Shareholding Reduction (No. 2020- 034): The shareholder, Gong Hongjia, who holds 1,255,056,700 shares of the Company (accounting for 13.43% of the Company's total share capital) plans to reduce his holdings of the Company's shares, not exceeding 2% of the Company's total share capital, within six months after 15 trading days from the date of the announcement. On September 3rd 2020, the Company received the Gong Hongjia's Notification Letter on the Completion of the Implementation of the Share Reduction Plan issued by shareholder Gong Hongjia. Gong Hongjia reduced his holdings of the Company's shares by a total of 93,448,486 shares (accounting for 1.00% of the current Company's total share capital) through bidding transactions. The implementation of the reduction plan is completed, and the remaining shares of the reduction plan will no longer be reduced through bidding transactions. For details, please refer to the Announcement on Share Reduction by Shareholders (No. 2020-050)disclosed by the Company on September 4th 2020.
Overview of significant events | Disclosure Date | Temporary public disclosure website |
index | ||
Proposal on Transfer of Part of Assets to the Company's Holding | July 25th 2020 | www.cninfo.com.cn |
Subsidiary of Innovative Business | ||
Announcement on Share Reduction by Shareholders | September 4th 2020 | www.cninfo.com.cn |
Implementation progress of share repurchase □ Applicable √ Inapplicable
Progress in the implementation of the reduction of repurchased shares by means of centralized bidding □ Applicable √ Inapplicable
3. Unfulfilled and overdue commitments from the related committed parties such as the
Company's actual controller, shareholders, related parties, acquirer(s), and the Company during the reporting period
□Applicable √Inapplicable
No such case during the reporting period.
4. Financial asset investment
1. Securities investment
□Applicable √Inapplicable
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Hikvision 2020 Q3 Report
2. Details in derivatives investment
√Applicable □Inapplicable
Unit: 0,000 RMB | |||||||||||||||
Name of | Whether | Initial investment | Purchase amount | Amount sold | Amount of | The proportion of the | Actual profit | ||||||||
Types of | Initial | during the | Closing | closing investment | |||||||||||
derivative | Relation- | related | amount of | Start Date | Expiration | during the | impairment | and loss amount | |||||||
derivatives | investment | current | investment | amount to the Company's | |||||||||||
investment | ship | transaction | derivatives | date | current reporting | provision (if | during the | ||||||||
investment | amount | reporting | amount | net assets at the end of the | |||||||||||
operator | exists | investment | period | any) | reporting period | ||||||||||
period | reporting period | ||||||||||||||
Commercial | Foreign | December | November | ||||||||||||
No | No | 98,489.32 | 98,489.32 | 151,174.96 | - | - | 20,152.37 | 0.42% | -314.59 | ||||||
bank | exchange | 5th 2019 | 3rd 2020 | ||||||||||||
contract | |||||||||||||||
Total | 98,489.32 | -- | -- | 98,489.32 | 151,174.96 | - | - | 20,152.37 | 0.42% | -314.59 | |||||
Source of funds for derivatives investments | Own capital | ||||||||||||||
Litigation involved (if applicable) | Not applicable | ||||||||||||||
Disclosure date of the board of directors announcement for the approval of | April 20th 2019 / December 25th 2019 | ||||||||||||||
derivatives investment (if any) | |||||||||||||||
Disclosure date of the announcement of the shareholders meeting for the | May 16th 2020 | ||||||||||||||
approval of derivatives investment (if any) | |||||||||||||||
Risk analysis and control measures for derivatives holdings during the | For specific information on risk analysis and control measures, please refer to the Announcement on Conducting Foreign Exchange Hedging | ||||||||||||||
reporting period (including but not limited to market risk, liquidity risk, credit | Transactions in 2019 (Announcement No. 2019-021) disclosed by the Company on April 20th 2019 and Announcement on the Implementation of | ||||||||||||||
risk, operational risk, legal risk, etc.) | Foreign Exchange Hedging Transactions in 2020 (Announcement No. 2019-065) disclosed on December 25th 2019. | ||||||||||||||
Changes in market prices or product fair values of invested derivatives during | The Company's accounting for the fair value of derivatives is mainly for the unexpired contracts of forward foreign exchange settlement and sale | ||||||||||||||
the reporting period. The analysis of the fair value of derivatives should | transactions signed by the Company and banks during the reporting period. Based on the difference between the quotation of the unexpired forward | ||||||||||||||
disclose the specific methods used and related assumptions and parameter | foreign exchange settlement and sale contract at the end of the period and the forward foreign exchange price, the held-for-trading financial assets or | ||||||||||||||
settings | held-for-trading financial liabilities are recognized. | ||||||||||||||
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Hikvision 2020 Q3 Report
Explanation of whether the Company's derivatives accounting policies and
specific accounting principles have changed significantly during the reporting Not applicable period compared with the previous reporting period
Independent directors' specific opinions on the Company's derivatives
Not applicable
investment and risk control
5. Progress of investment projects with raised funds
□Applicable √Inapplicable
6. Guidance on the Company's 2020 full year operational results.
□Applicable √Inapplicable
7.Major contracts for daily operations
□Applicable √Inapplicable
Significant differences between the progress of a major contract and the contract agreement and affect more than 30% of the contract amount. □Applicable √Inapplicable
8. Entrusted financial management
□Applicable √ Inapplicable
No such case during the current reporting period.
9. Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
No such case in the reporting period.
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Hikvision 2020 Q3 Report
10. The Company's funds used by the controlling shareholder or its related parties for non- operating purposes
- Applicable √ Inapplicable
No such case in the reporting period.
11. Schedule for the reception activities including research, communication and interviews during the reporting period
- Applicable □ Inapplicable
11.1 Reception of research activities during 2020 Q3
Time of reception | Location | Method of reception | Type of reception | Index of basic situation of the research activities | ||
object | ||||||
Corporate Headquarter | Performance Result | Institutional | CNINF, Investor Relations Activity Record: July | |||
July 25th 2020 | investors; | |||||
conference room | Conference Call | 25TH 2020 | ||||
Individuals | ||||||
From July 27th | 2020 to | Corporate Headquarter | On-site Research and | Institutional | CNINF, Investor Relations Activity Record: From | |
August 10th | 2020 | conference room | telephone communication | investors | July 27th 2020 to August 10th 2020 | |
From August 11th | 2020 to | Corporate Headquarter | On-site Research and | Institutional | CNINF, Investor Relations Activity Record: From | |
August 21st | 2020 | conference room | telephone communication | investors | August 11th 2020 to August 21st 2020 | |
From August 24th | 2020 to | Corporate Headquarter | On-site Research and | Institutional | CNINF, Investor Relations Activity Record: From | |
September 4th | 2020 | conference room | telephone communication | investors | August 24th 2020 to September 4th 2020 | |
From September 7th 2020 | Corporate Headquarter | On-site Research and | Institutional | CNINF, Investor Relations Activity Record: From | ||
to September 25th 2020 | conference room | telephone communication | investors | September 7th 2020 to September 25th 2020 | ||
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Hikvision 2020 Q3 Report
11.2 Participation of conferences for investor relationship activities during 2020 Q3
Time of | Location | Conference Name | Type of reception | Method of reception |
conference | object | |||
July 2020 | Virtual | Europe Virtual NDR-via CICC | All kinds of | One-on-One,One-on-multi, small group |
Conference | investors | Meetings, and etc. | ||
August 2020 | Virtual | Hongkong Virtual NDR-via Bernstein | All kinds of | One-on-One,One-on-multi, small group |
Conference | investors | Meetings, and etc. | ||
August 2020 | Virtual | Hongkong Virtual NDR-via Jefferies | All kinds of | One-on-One,One-on-multi, small group |
Conference | investors | Meetings, and etc. | ||
August 2020 | Virtual | U.S.A Virtual NDR- via Jefferies | All kinds of | One-on-One,One-on-multi, small group |
Conference | investors | Meetings, and etc. | ||
August 2020 | Shanghai | NDR-via Guangfa Securities | All kinds of | One-on-One,One-on-multi, small group |
investors | Meetings, and etc. | |||
August 2020 | Shenzhen, | NDR-via Shenwan Hongyuan | All kinds of | One-on-One,One-on-multi, small group |
Guangzhou | Securities | investors | Meetings, and etc. | |
August 2020 | Virtual | Europe and U.S.A. NDR-via | All kinds of | One-on-One,One-on-multi, small group |
Conference | Bernstein | investors | Meetings, and etc. | |
August 2020 | Beijing | NDR-via CITIC Securities | All kinds of | One-on-One,One-on-multi, small group |
investors | Meetings, and etc. | |||
August 2020 | Virtual | Nomura Virtual China Investor | All kinds of | One-on-One,One-on-multi, small group |
Conference | Forum 2020 | investors | Meetings, and etc. | |
August 2020 | Virtual | UBS 2020 China A-Share Virtual | All kinds of | One-on-One,One-on-multi, small group |
Conference | Conference | investors | Meetings, and etc. | |
August 2020 | Virtual | Goldman Sachs China A-Share | All kinds of | One-on-One,One-on-multi, small group |
Conference | Conference | investors | Meetings, and etc. | |
September | Virtual | Huachuang Securities 2020 Autumn | All kinds of | One-on-One,One-on-multi, small group |
2020 | Conference | Conference | investors | Meetings, and etc. |
September | Virtual | Morgan Stanley Virtual Asia TMT | All kinds of | One-on-One,One-on-multi, small group |
2020 | Conference | Conference | investors | Meetings, and etc. |
September | Virtual | 21st Credit Suisse | All kinds of | One-on-One,One-on-multi, small group |
2020 | Conference | Asian Technology Conference (virtual | Meetings, and etc. | |
investors | ||||
event) | ||||
September | Virtual | The 27th CITIC Securities-CLSA | All kinds of | One-on-One,One-on-multi, small group |
2020 | Conference | Flagship Investor Forum | investors | Meetings, and etc. |
September | Virtual | Jefferies Inaugural Jefferies Asia | All kinds of | One-on-One,One-on-multi, small group |
2020 | Conference | Forum | investors | Meetings, and etc. |
September | Virtual | Bernstein 17th Annual Pan European | All kinds of | One-on-One,One-on-multi, small group |
2020 | Conference | Strategic Decisions Conference | investors | Meetings, and etc. |
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Hikvision 2020 Q3 Report
11.3 Investor relations activity statistics during 2020 Q3
Number of daily research received (On-site and telephone conference, times) | 89 |
Number of institutional investors received (ppl) | 1,094 |
Number of individual investors received (ppl) | 17 |
Number of investor relations conference participated | 17 |
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Hikvision 2020 Q3 Report
Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
September 30th 2020
Unit: RMB | ||
Item | September 30th 2020 | December 31st 2019 |
Current Assets: | ||
Cash and bank balances | 26,724,024,164.26 | 27,071,948,919.78 |
Held-for-trading financial assets | 3,699,122.53 | 181.76 |
Notes receivable | 1,011,138,678.03 | 973,236,789.02 |
Accounts receivable | 23,081,153,716.66 | 21,307,927,200.28 |
Receivables for financing | 1,401,626,436.20 | 1,257,385,053.02 |
Prepayments | 353,652,040.44 | 309,685,733.32 |
Other receivables | 487,082,928.46 | 555,246,545.48 |
Inventories | 11,152,999,292.02 | 11,267,986,843.11 |
Contract assets | 126,490,278.41 | - |
Non-current assets due within one year | 1,036,003,483.96 | 528,469,701.75 |
Other current assets | 709,905,750.73 | 754,456,821.72 |
Total Current Assets | 66,087,775,891.70 | 64,026,343,789.24 |
Non-current Assets: | ||
Long-term receivables | 1,975,160,938.45 | 1,382,536,761.22 |
Long-term equity investment | 521,779,447.88 | 252,165,321.49 |
Other non-current financial assets | 458,565,043.51 | 312,398,267.44 |
Fixed assets | 5,949,833,303.19 | 5,791,218,720.87 |
Construction in progress | 1,248,463,158.58 | 631,555,479.06 |
Intangible assets | 1,180,714,269.67 | 1,046,122,507.64 |
Goodwill | 270,239,159.35 | 273,611,961.96 |
Long-term deferred expenses | 95,363,789.29 | 87,611,490.75 |
Deferred tax assets | 885,952,578.83 | 688,849,263.70 |
Other non-current assets | 542,886,697.82 | 865,586,676.92 |
Total Non-current Assets | 13,128,958,386.57 | 11,331,656,451.05 |
Total Assets | 79,216,734,278.27 | 75,358,000,240.29 |
Current Liabilities: | ||
Short-term borrowings | 4,339,565,033.35 | 2,640,082,485.15 |
Held-for-trading financial liabilities | 7,004.35 | 652,428.18 |
Notes payable | 610,407,561.05 | 1,239,584,016.70 |
Accounts payable | 9,818,653,069.71 | 12,700,075,307.70 |
Contract Liabilities | 1,352,215,377.01 | - |
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Hikvision 2020 Q3 Report
Item | September 30th 2020 | December 31st 2019 |
Receipts in advance | 1,020,989,460.61 | |
Payroll payable | 2,235,616,280.86 | 2,359,674,640.12 |
Taxes payable | 1,798,414,632.65 | 991,342,805.91 |
Other payables | 2,227,367,991.23 | 1,568,744,599.94 |
Including : Interests payable | ||
Dividends payable | 205,898,523.84 | 108,129,385.24 |
Non-current liabilities due within one year | 207,812,149.40 | 86,123,154.06 |
Other current liabilities | 1,817,675,879.67 | 913,534,538.26 |
Total Current Liabilities | 24,407,734,979.28 | 23,520,803,436.63 |
Non-current Liabilities: | ||
Long-term borrowings | 4,797,581,206.34 | 4,604,168,571.43 |
Long-term payables | 49,212,312.82 | 50,181,416.72 |
Provisions | 85,303,772.07 | 90,570,669.01 |
Deferred income | 192,809,629.77 | 333,589,831.30 |
Deferred tax liabilities | 95,017,852.70 | 51,088,103.96 |
Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 |
Total non-current liabilities | 6,454,664,099.80 | 6,364,337,918.52 | ||
Total liabilities | 30,862,399,079.08 | 29,885,141,355.15 | ||
Owners' Equity | ||||
Share capital | 9,345,010,696.00 | 9,345,010,696.00 | ||
Capital reserves | 5,058,308,870.67 | 4,126,943,698.96 | ||
Less: Treasury shares | 2,046,939,271.56 | 2,148,273,864.36 | ||
Other comprehensive income | (88,048,825.29) | (53,541,146.99) | ||
Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 | ||
Retained earnings | 30,859,948,589.38 | 28,961,389,145.22 | ||
Total owners' equity attributable to | 47,800,785,407.20 | 44,904,033,876.83 | ||
owner of the Company | ||||
Minority equity | 553,549,791.99 | 568,825,008.31 | ||
Total owners' equity | 48,354,335,199.19 | 45,472,858,885.14 | ||
Total liabilities and owners' equity | 79,216,734,278.27 | 75,358,000,240.29 | ||
Legal Representative: Chen Zongnian | Person in Charge of the Accounting work: Jin Yan |
Person in Charge of Accounting Institution: Zhan Junhua
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Hikvision 2020 Q3 Report
2. Balance Sheet of the Parent Company
Unit: RMB | ||
Item | September 30th 2020 | December 31st 2019 |
Current Assets: | ||
Cash and bank balances | 18,431,399,544.71 | 16,851,590,525.05 |
Notes receivable | 122,418,086.27 | 149,703,073.98 |
Accounts receivable | 29,999,914,461.83 | 25,107,965,925.08 |
Receivables for financing | 97,128,786.70 | 84,839,695.67 |
Prepayments | 177,688,053.30 | 160,688,588.99 |
Other receivables | 1,525,238,871.47 | 921,275,388.15 |
Including: Interests receivable | ||
Dividends receivable | - | 2,550,000.00 |
Inventories | 221,715,239.78 | 171,243,815.97 |
Contract assets | 5,484,332.44 | - |
Non-current assets due within one year | 94,087,854.60 | 4,513,795.81 |
Other current assets | 21,460,416.80 | 23,117,398.50 |
Total Current Assets | 50,696,535,647.90 | 43,474,938,207.20 |
Non-current Assets: | ||
Long-term receivables | 68,593,256.43 | 681,568.43 |
Long-term equity investment | 6,044,491,821.20 | 5,074,018,030.44 |
Other non-current financial assets | 455,670,823.51 | 309,504,047.44 |
Fixed assets | 2,806,275,072.45 | 2,831,295,145.61 |
Construction in progress | 344,069,153.59 | 153,416,054.28 |
Intangible assets | 165,825,318.15 | 188,362,883.75 |
Long-term deferred expenses | 44,329,900.69 | 34,199,446.06 |
Deferred tax assets | 176,930,540.34 | 126,357,792.34 |
Other non-current assets | 18,749,006.23 | 21,619,464.07 |
Total Non-current Assets | 10,124,934,892.59 | 8,739,454,432.42 |
Total Assets | 60,821,470,540.49 | 52,214,392,639.62 |
Current Liabilities: | ||
Short-term borrowings | 3,482,751,236.09 | 2,001,781,388.89 |
Accounts payable | 449,065,134.95 | 450,983,270.08 |
Contract liabilities | 318,991,129.74 | - |
Receipts in advance | 227,242,328.23 | |
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Hikvision 2020 Q3 Report
Item | September 30th 2020 | December 31st 2019 | |||
Payroll payable | 1,424,975,531.91 | 1,564,304,003.49 | |||
Taxes payable | 1,519,649,694.85 | 796,890,945.83 | |||
Other payables | 2,258,051,626.19 | 533,325,191.05 | |||
Including : Interests payable | |||||
Dividends payable | 205,898,523.84 | 105,679,385.24 | |||
Non-current liabilities due within | 4,445,607.82 | 9,539,251.98 | |||
one year | |||||
Other current liabilities | 1,817,675,879.77 | 913,534,538.26 | |||
Total Current Liabilities | 11,275,605,841.32 | 6,497,600,917.81 |
Non-current Liabilities: | ||
Long-term borrowings | 3,197,640,000.00 | 3,126,200,000.00 |
Provisions | 51,992,619.07 | 62,863,096.83 |
Deferred Income | 123,060,667.94 | 162,018,728.45 |
Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 |
Total non-current liabilities | 4,607,432,613.11 | 4,585,821,151.38 | |
Total liabilities | 15,883,038,454.43 | 11,083,422,069.19 | |
Owners' Equity | |||
Share capital | 9,345,010,696.00 | 9,345,010,696.00 | |
Capital reserves | 4,665,997,632.43 | 4,064,833,739.52 | |
Less: Treasury shares | 2,046,939,271.56 | 2,148,273,864.36 | |
Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 | |
Retained earnings | 28,301,857,681.19 | 25,196,894,651.27 | |
Total owners' equity | 44,938,432,086.06 | 41,130,970,570.43 | |
Total liabilities and owners' equity | 60,821,470,540.49 | 52,214,392,639.62 | |
Legal Representative: Chen Zongnian | Person in Charge of the Accounting work: Jin Yan |
Person in Charge of Accounting Institution: Zhan Junhua
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Hikvision 2020 Q3 Report
3. Consolidated Income Statement
Unit: RMB | |||||
Item | 2020 Q3 | 2019 Q3 | |||
I. Total operating income | 17,750,035,645.86 | 15,915,642,804.35 | |||
II.Total operating costs | 14,236,690,054.68 | 11,986,336,953.81 | |||
Including:Total operating costs | 9,777,113,666.40 | 8,496,804,444.94 | |||
Business taxes and surcharges | 115,971,298.33 | 96,963,076.85 | |||
Selling expenses | 1,813,548,049.93 | 1,940,139,966.75 | |||
Administrative expenses | 470,051,489.24 | 446,580,701.06 | |||
Research and Development (R&D) expenses | 1,677,325,334.35 | 1,502,476,961.10 | |||
Financial expenses | 382,680,216.43 | (496,628,196.89) | |||
Including:Interest expenses | 54,235,983.98 | 74,410,747.56 | |||
Interest income | 157,417,761.75 | 161,426,059.65 | |||
Add: Other Income | 695,122,842.24 | 580,970,230.04 | |||
Investment income (loss) | (25,478,592.81) | 8,327,642.30 | |||
Including: Investment gains (losses) in associated | (13,390,249.40) | 5,825,385.04 | |||
enterprise and joint-venture enterprise | |||||
Gains from changes in fair values | 60,895,110.47 | 9,348,538.93 | |||
Credit impairment losses ("-") | (56,336,117.60) | (144,256,060.56) | |||
Impairment losses ("-") of assets | (94,972,081.65) | (69,340,091.15) | |||
Asset disposal income | 283,087.18 | 389,512.37 | |||
III. Operating profit | 4,092,859,839.01 | 4,314,745,622.47 | |||
Add: Non-operating income | 19,780,669.56 | 20,153,328.90 | |||
Less: Non-operating expenses | 5,510,143.35 | 3,644,173.04 | |||
IV. Total profit | 4,107,130,365.22 | 4,331,254,778.33 | |||
Less: Income tax expenses | 196,804,188.85 | 460,924,198.11 | |||
V. Net profit | 3,910,326,176.37 | 3,870,330,580.22 | |||
5.1 Classification by operation continuity | |||||
(a) Net profit on continuous operation | 3,910,326,176.37 | 3,870,330,580.22 | |||
5.2 Classification by attribution of ownership | |||||
(a) Profit or loss attributable to minority shareholders | 95,347,530.60 | 59,751,625.33 | |||
(b) Net profit attributable to owners of parent company | 3,814,978,645.77 | 3,810,578,954.89 | |||
VI. Other comprehensive income, net of income tax | (9,595,165.08) | (5,267,606.68) | |||
Other comprehensive income attributable to owners of the | (10,024,762.83) | (5,162,206.61) | |||
Company, net of tax | |||||
(I) Items that will not be reclassified subsequently to profit or | |||||
loss | |||||
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Hikvision 2020 Q3 Report
Item | 2020 Q3 | 2019 Q3 | |||||
(II) Other comprehensive income to be reclassified to profit or | (10,024,762.83) | (5,162,206.61) | |||||
loss in subsequent periods | |||||||
Exchange differences arising on conversion of financial | (10,024,762.83) | (6,527,620.17) | |||||
statements denominated in foreign currencies | |||||||
Gains and losses from changes in fair value of other | 1,365,413.56 | ||||||
current assets | |||||||
Other comprehensive income attributable to minority interests, | 429,597.75 | (105,400.07) | |||||
net of tax | |||||||
VII. Total comprehensive income | 3,900,731,011.29 | 3,865,062,973.54 | |||||
Total comprehensive income attributable to owners of the | 3,804,953,882.94 | 3,805,416,748.28 | |||||
parent company | |||||||
Total comprehensive income attributable to minority | 95,777,128.35 | 59,646,225.26 | |||||
shareholders | |||||||
VIII. Earnings per share | |||||||
(I) Basic earnings per share | 0.405 | 0.400 | |||||
(II) Diluted earnings per share | 0.405 | 0.400 | |||||
Legal Representative: Chen Zongnian | Person in Charge of the Accounting work: Jin Yan | ||||||
Person in Charge of Accounting Institution: Zhan Junhua |
4. Income Statement of the Parent Company
Unit: RMB | ||||||
Item | 2020 Q3 | 2019 Q3 | ||||
I. Total operating income | 7,511,924,308.00 | 6,920,272,660.94 | ||||
Less: Total operating Cost | 1,956,223,390.19 | 2,180,260,453.52 | ||||
Business taxes and surcharges | 84,476,812.68 | 67,760,722.14 | ||||
Selling expenses | 628,836,225.71 | 852,081,852.19 | ||||
Administrative expenses | 202,054,745.57 | 184,623,515.65 | ||||
Research and Development (R&D) expenses | 1,067,748,117.12 | 1,095,442,523.12 | ||||
Financial expenses | (37,892,562.70) | (361,435,536.59) | ||||
Including : Interest expenses | 8,885,004.93 | 6,808,200.57 | ||||
Interest income | 110,979,371.45 | 124,514,655.05 | ||||
Add: Other income | 553,775,426.53 | 434,811,042.75 | ||||
Investment income | 793,888,185.71 | 2,102,615.50 | ||||
Including: Investment gain (loss) in associated | (8,930,255.92) | 2,102,615.50 | ||||
enterprise and joint-venture enterprise | ||||||
Gains from changes in fair values | 49,112,093.33 | 10,635,547.81 | ||||
Credit impairment losses ("-") | (11,379,036.94) | (30,515,452.66) | ||||
Impairment losses ("-") of assets | 500,808.24 | 1,753,720.58 | ||||
Asset disposal income | 7,882.27 | 10,098.01 | ||||
II. Operating profit | 4,996,382,938.57 | 3,320,336,702.90 | ||||
Add: Non-operating income | 3,145,560.28 | 4,577,655.07 | ||||
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Hikvision 2020 Q3 Report
Item | 2020 Q3 | 2019 Q3 | ||
Less: Non-operating expenses | 2,846,523.76 | 1,684,190.05 | ||
III. Total profit | 4,996,681,975.09 | 3,323,230,167.92 | ||
Less: Income tax expenses | 293,424,076.90 | 151,477,969.94 | ||
IV. Net profit | 4,703,257,898.19 | 3,171,752,197.98 | ||
(a) Net profit on continuous operation | 4,703,257,898.19 | 3,171,752,197.98 | ||
V. Other comprehensive income, net of income tax | (1,937,862.58) | |||
(I) Items that will not be reclassified subsequently to profit or | ||||
loss | ||||
(II) Other comprehensive income to be reclassified to profit or | (1,937,862.58) | |||
loss in subsequent periods | ||||
Gains and losses from changes in fair value of other current | (1,937,862.58) | |||
assets | ||||
VI. Total comprehensive income | 4,703,257,898.19 | 3,169,814,335.40 | ||
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
5. Consolidated Income Statement from January 1st 2020 to September 30th 2020
Unit: RMB | ||
Item | 2020 Q1-Q3 | 2019 Q1-Q3 |
I. Total operating income | 42,021,194,889.62 | 39,838,916,228.85 |
II.Total operating costs | 33,719,184,646.63 | 31,313,618,168.78 |
Including:Total operating costs | 21,970,833,611.78 | 21,337,310,778.62 |
Business taxes and surcharges | 284,043,463.58 | 264,510,982.77 |
Selling expenses | 5,233,839,568.35 | 5,153,400,075.91 |
Administrative expenses | 1,335,010,979.18 | 1,177,690,944.82 |
Research and Development (R&D) expenses | 4,740,749,014.04 | 4,007,277,010.81 |
Financial expenses | 154,708,009.70 | (626,571,624.15) |
Including:Interest expenses | 148,373,068.03 | 167,413,125.18 |
Interest income | 464,390,827.93 | 454,438,589.00 |
Add: Other Income | 1,689,901,236.39 | 1,303,536,451.58 |
Investment income | 124,741,116.75 | 29,551,998.27 |
Including: Investment gains (losses) in | ||
associated enterprise and joint-venture | (22,332,967.09) | 1,610,229.42 |
enterprise | ||
Gains from changes in fair values | 40,458,673.51 | 11,214,933.39 |
Credit impairment losses ("-") | (209,108,587.37) | (278,782,493.13) |
Impairment losses ("-") of assets | (260,366,239.98) | (149,483,833.80) |
Asset disposal income | 304,642.17 | 1,199,556.27 |
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Hikvision 2020 Q3 Report
Item | 2020 Q1-Q3 | 2019 Q1-Q3 | ||||
III. Operating profit | 9,687,941,084.46 | 9,442,534,672.65 | ||||
Add: Non-operating income | 51,501,876.64 | 58,460,407.50 | ||||
Less: Non-operating expenses | 12,888,908.91 | 12,058,354.95 | ||||
IV. Total profit | 9,726,554,052.19 | 9,488,936,725.20 | ||||
Less: Income tax expenses | 1,149,356,334.82 | 1,394,844,854.79 | ||||
V. Net profit | 8,577,197,717.37 | 8,094,091,870.41 | ||||
5.1 Classification by operation continuity | ||||||
(a) Net profit on continuous operation | 8,577,197,717.37 | 8,094,091,870.41 | ||||
5.2 Classification by attribution of ownership | ||||||
(a) Profit or loss attributable to minority | 138,246,240.73 | 66,757,705.28 | ||||
shareholders | ||||||
(b) Net profit attributable to owners of parent | 8,438,951,476.64 | 8,027,334,165.13 | ||||
company | ||||||
VI. Other comprehensive income, net of income tax | (36,391,343.45) | 224,061.25 | ||||
Other comprehensive income attributable to owners of | (34,507,678.30) | (239,399.77) | ||||
the parent company, net of tax | ||||||
(I) Items that will not be reclassified subsequently to | ||||||
profit or loss | ||||||
(II) Other comprehensive income to be reclassified to | (34,507,678.30) | (239,399.77) | ||||
profit or loss in subsequent periods | ||||||
1.Exchange differences arising on conversion of | (34,507,678.30) | (15,729,788.42) | ||||
financial statements denominated in foreign currencies | ||||||
2.Gains and losses from changes in fair value of other | 15,490,388.65 | |||||
current assets | ||||||
Other comprehensive income attributable to minority | (1,883,665.15) | 463,461.02 | ||||
interests, net of tax | ||||||
VII. Total comprehensive income | 8,540,806,373.92 | 8,094,315,931.66 | ||||
Total comprehensive income attributable to owners of | 8,404,443,798.34 | 8,027,094,765.36 | ||||
the parent company | ||||||
Total comprehensive income attributable to minority | 136,362,575.58 | 67,221,166.30 | ||||
shareholders | ||||||
VIII. Earnings per share | ||||||
(I) Basic earnings per share | 0.909 | 0.860 | ||||
(II) Diluted earnings per share | 0.909 | 0.860 | ||||
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
6. Income Statement of the Parent Company from January 1st 2020 to September 30th 2020
Unit: RMB | ||
Item | 2020 Q1-Q3 | 2019 Q1-Q3 |
I. Total operating income | 19,096,192,393.23 | 17,354,516,639.53 |
Less: Total operating Cost | 4,878,230,387.67 | 5,260,041,102.44 |
Business taxes and surcharges | 212,000,163.18 | 179,363,153.88 |
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Hikvision 2020 Q3 Report
Item | 2020 Q1-Q3 | 2019 Q1-Q3 | ||||
Selling expenses | 2,007,406,390.91 | 2,352,469,006.14 | ||||
Administrative expenses | 584,100,618.17 | 531,467,438.33 | ||||
Research and Development (R&D) | 3,258,134,217.35 | 2,875,427,888.71 | ||||
expenses | ||||||
Financial expenses | (238,495,703.61) | (436,020,048.92) | ||||
Including : Interest expenses | 22,674,749.11 | 49,350,390.76 | ||||
Interest income | 326,480,965.28 | 392,680,476.99 | ||||
Add: Other income | 1,351,019,789.13 | 1,070,578,767.20 | ||||
Investment income | 986,594,188.91 | 19,153,543.65 | ||||
Including: Investment loss in | ||||||
associated enterprise and joint- | (12,559,206.81) | (772,376.22) | ||||
venture enterprise | ||||||
Gains from changes in fair values | 36,094,761.07 | 12,788,786.31 | ||||
Credit impairment losses ("-") | (26,484,698.83) | 622,905,019.26 | ||||
Impairment losses ("-") of assets | 1,595,892.90 | 51,323,003.42 | ||||
Asset disposal income | 10,746.11 | 191,846.66 | ||||
II. Operating profit | 10,743,646,998.85 | 8,368,709,065.45 | ||||
Add: Non-operating income | 11,895,468.93 | 12,793,513.71 | ||||
Less: Non-operating expenses | 4,114,046.66 | 6,921,272.37 | ||||
III. Total profit | 10,751,428,421.12 | 8,374,581,306.79 | ||||
Less: Income tax expenses | 1,106,073,358.20 | 997,044,554.62 | ||||
IV. Net profit | 9,645,355,062.92 | 7,377,536,752.17 | ||||
(a) Net profit on continuous operation | 9,645,355,062.92 | 7,377,536,752.17 | ||||
V. Other comprehensive income, net of income | (774,633.17) | |||||
tax | ||||||
(I) Items that will not be reclassified | ||||||
subsequently to profit or loss | ||||||
(II) Other comprehensive income to be | (774,633.17) | |||||
reclassified to profit or loss in subsequent periods | ||||||
1.Gains and losses from changes in fair value of | (774,633.17) | |||||
other current assets | ||||||
VI. Total comprehensive income | 9,645,355,062.92 | 7,376,762,119.00 | ||||
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
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Hikvision 2020 Q3 Report
7. Consolidated Cash Flow Statement from January 1st 2020 to September 30th 2020
Unit: RMB | ||||||
Item | 2020 Q1-Q3 | 2019 Q1-Q3 | ||||
I. Cash flows from operating activities: | ||||||
Cash received from sale of goods or rendering of | 44,732,201,357.96 | 39,797,920,691.39 | ||||
services | ||||||
Receipts of tax refunds | 2,519,486,353.29 | 2,205,856,683.57 | ||||
Other cash receipts relating to operating activities | 1,120,966,888.55 | 1,108,671,779.38 | ||||
Sub-total of cash inflows from operating activities | 48,372,654,599.80 | 43,112,449,154.34 | ||||
Cash payments for goods purchased and services | 28,365,300,528.80 | 29,259,780,105.41 | ||||
received | ||||||
Cash paid to and on behalf of employees | 7,786,708,739.25 | 6,690,990,896.32 | ||||
Payments of various types of taxes | 3,516,698,560.06 | 3,748,604,004.24 | ||||
Other cash payments relating to operating activities | 3,169,328,778.86 | 3,288,758,912.97 | ||||
Sub-total of cash outflows from operating activities | 42,838,036,606.97 | 42,988,133,918.94 | ||||
Net Cash flows from Operating Activities | 5,534,617,992.83 | 124,315,235.40 | ||||
II. Cash flows from Investing Activities: | ||||||
Cash receipts from recovery of investments | 1,436,901,231.06 | |||||
Cash receipts from investment income | 151,548,143.79 | 10,579,222.38 | ||||
Net cash receipts from disposals of fixed assets, | 21,360,710.88 | 56,062,267.50 | ||||
intangible assets and other long-term assets | ||||||
Other cash receipts relating to investing activities | 24,102,324.29 | 18,166,664.71 | ||||
Sub-total of cash inflows from investing activities | 1,633,912,410.02 | 84,808,154.59 | ||||
Cash payments to acquire or construct fixed assets, | 1,605,697,549.12 | 1,274,540,687.78 | ||||
intangible assets and other long-term assets | ||||||
Cash paid to acquire investments | 1,831,979,614.38 | 2,884,220.00 | ||||
Net cash paid to acquire subsidiaries and other business | 65,351,582.07 | |||||
units | ||||||
Sub-total of cash outflows from investing activities | 3,437,677,163.50 | 1,342,776,489.85 | ||||
Net cash flows from Investing Activities | (1,803,764,753.48) | (1,257,968,335.26) | ||||
III. Cash flows from financing activities: | ||||||
Cash receipts from capital contributions | 159,764,987.03 | 113,220,262.15 | ||||
Including: cash receipts from capital contributions | 159,764,987.03 | 113,220,262.15 | ||||
from minority owners of subsidiaries | ||||||
Cash receipts from borrowings | 3,681,920,917.95 | 7,150,799,943.42 | ||||
Cash receipts from issuance of bonds | 999,500,000.00 | |||||
Sub-total of cash inflows from financing activities | 4,841,185,904.98 | 7,264,020,205.57 | ||||
Cash repayments of borrowings | 1,734,060,296.82 | 2,826,949,887.78 | ||||
Cash repayments of bonds | 3,079,240,000.00 | |||||
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Hikvision 2020 Q3 Report
Cash payments for distribution of dividends or profits or | 6,599,275,667.73 | 5,808,192,337.22 | ||
settlement of interest expenses | ||||
Other cash payments relating to financing activities | 64,290,000.00 | 26,897,116.20 | ||
Sub-total of cash outflows from financing activities | 8,397,625,964.55 | 11,741,279,341.20 | ||
Net cash flows from Financing Activities | (3,556,440,059.57) | (4,477,259,135.63) | ||
IV. Effect of foreign exchange rate changes on Cash and | (418,677,132.16) | 314,124,262.83 | ||
Cash Equivalents | ||||
V. Net Increase in Cash and Cash Equivalents | (244,263,952.38) | (5,296,787,972.66) | ||
Add: Opening balance of Cash and Cash Equivalents | 26,515,668,008.40 | 26,031,011,733.89 | ||
VI. Closing Balance of Cash and Cash Equivalents | 26,271,404,056.02 | 20,734,223,761.23 | ||
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
8. Cash Flow Statement of the Parent Company from January 1st 2020 to September 30th 2020
Unit: RMB | ||||||
Item | 2020 Q1-Q3 | 2019 Q1-Q3 | ||||
I. Cash flows from Operating Activities:: | ||||||
Cash receipts from the sale of goods and the rendering of | 16,415,929,623.98 | 12,029,215,025.03 | ||||
services | ||||||
Receipts of tax refunds | 1,151,059,755.24 | 934,577,449.38 | ||||
Other cash receipts relating to operating activities | 601,515,335.11 | 596,615,907.62 | ||||
Sub-total of cash inflows from operating activities | 18,168,504,714.33 | 13,560,408,382.03 | ||||
Cash payments for goods acquired and services received | 5,642,609,260.24 | 6,141,625,941.11 | ||||
Cash payments to and on behalf of employees | 4,067,488,635.30 | 3,826,354,338.41 | ||||
Payments of various types of taxes | 2,309,740,849.52 | 2,274,516,905.16 | ||||
Other cash payments relating to operating activities | 1,077,193,118.06 | 1,374,026,139.24 | ||||
Sub-total of cash outflows from operating activities | 13,097,031,863.12 | 13,616,523,323.92 | ||||
Net Cash flows from Operating Activities | 5,071,472,851.21 | (56,114,941.89) | ||||
II. Cash flows from Investing Activities: | ||||||
Cash receipts from recovery of investments | 2,800,000.00 | |||||
Cash receipts from investment income | 153,552,279.56 | 2,568,699.00 | ||||
Net cash receipts from disposals of fixed assets, intangible | 5,422,277.99 | 3,976,093.24 | ||||
assets and other long-term assets | ||||||
Other cash receipts relating to investing activities | 1,655,981,987.34 | 3,066,451,513.72 | ||||
Sub-total of cash inflows from investing activities | 1,817,756,544.89 | 3,072,996,305.96 | ||||
Cash payments to acquire or construct fixed assets, | 360,168,318.03 | 264,771,882.74 | ||||
intangible assets and other long-term assets | ||||||
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Hikvision 2020 Q3 Report
Cash payments to acquire investments | 922,603,054.15 | |||||
Net cash paid to acquire subsidiaries and other business | 414,400,000.00 | |||||
units | ||||||
Other cash payments relating to investing activities | 982,391,211.78 | |||||
Sub-total of cash outflows from investing activities | 1,282,771,372.18 | 1,661,563,094.52 | ||||
Net Cash flows from Investing Activities | 534,985,172.71 | 1,411,433,211.44 | ||||
III. Cash flows from Financing Activities | ||||||
Cash receipts from borrowings | 2,480,000,000.00 | 3,679,240,000.00 | ||||
Cash receipts from issuance of bonds | 999,500,000.00 | |||||
Sub-total of cash inflows from financing activities | 3,479,500,000.00 | 3,679,240,000.00 | ||||
Cash repayments of borrowings | 1,000,000,000.00 | |||||
Cash repayments of bonds | 3,079,240,000.00 | |||||
Cash payments for distribution of dividends or profits or | 6,468,742,388.72 | 5,669,311,652.85 | ||||
settlement of interest expenses | ||||||
Other cash payments relating to financing activities | 26,897,116.20 | |||||
Sub-total of cash outflows from financing activities | 7,468,742,388.72 | 8,775,448,769.05 | ||||
Net Cash flows from Financing Activities | (3,989,242,388.72) | (5,096,208,769.05) | ||||
IV. Effect of foreign exchange rate changes on Cash and | (36,671,500.59) | 140,012,598.62 | ||||
Cash Equivalents | ||||||
V. Net increase in cash and cash equivalents | 1,580,544,134.61 | (3,600,877,900.88) | ||||
Add: Beginning balance of cash and cash | 16,656,028,410.72 | 18,998,934,287.59 | ||||
equivalents | ||||||
VI. Closing Balance of Cash and Cash Equivalents | 18,236,572,545.33 | 15,398,056,386.71 | ||||
Legal Representative: Chen Zongnian Person in Charge of the Accounting work: Jin Yan
Person in Charge of Accounting Institution: Zhan Junhua
4.2 Notes on financial statement adjustment
-
Implementation of the new revenue standard for the first time since 2020, adjustments to the implementation of relevant items in the financial statements at the beginning of the year
√Applicable □Inapplicable
Whether to adjust the balance sheet account at the beginning of the year
√Applicable □Inapplicable
Consolidated Balance Sheet
Unit: RMB | |||
Item | December 31st 2019 | January 1st 2020 | Adjustments |
Current Assets: | |||
Cash and bank balances | 27,071,948,919.78 | 27,071,948,919.78 | 0.00 |
Held-for-trading financial assets | 181.76 | 181.76 | 0.00 |
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Hikvision 2020 Q3 Report
Item | December 31st 2019 | January 1st 2020 | Adjustments | |||||
Notes receivable | 973,236,789.02 | 973,236,789.02 | 0.00 | |||||
Accounts receivable | 21,307,927,200.28 | 21,272,964,582.56 | -34,962,617.72 | |||||
Receivables for financing | 1,257,385,053.02 | 1,257,385,053.02 | 0.00 | |||||
Prepayments | 309,685,733.32 | 309,685,733.32 | 0.00 | |||||
Other receivables | 555,246,545.48 | 555,246,545.48 | 0.00 | |||||
Inventories | 11,267,986,843.11 | 10,756,027,592.41 | -511,959,250.70 | |||||
Contract assets | 546,921,868.42 | 546,921,868.42 | ||||||
Non-current assets due within one | 528,469,701.75 | 528,469,701.75 | 0.00 | |||||
year | ||||||||
Other current assets | 754,456,821.72 | 754,456,821.72 | 0.00 | |||||
Total Current Assets | 64,026,343,789.24 | 64,026,343,789.24 | 0.00 |
Non-current Assets: | |||
Long-term receivables | 1,382,536,761.22 | 1,382,536,761.22 | 0.00 |
Long-term equity investment | 252,165,321.49 | 252,165,321.49 | 0.00 |
Other non-current financial assets | 312,398,267.44 | 312,398,267.44 | 0.00 |
Fixed assets | 5,791,218,720.87 | 5,791,218,720.87 | 0.00 |
Construction in progress | 631,555,479.06 | 631,555,479.06 | 0.00 |
Intangible assets | 1,046,122,507.64 | 1,046,122,507.64 | 0.00 |
Goodwill | 273,611,961.96 | 273,611,961.96 | 0.00 |
Long-term deferred expenses | 87,611,490.75 | 87,611,490.75 | 0.00 |
Deferred tax assets | 688,849,263.70 | 688,849,263.70 | 0.00 |
Other non-current assets | 865,586,676.92 | 865,586,676.92 | 0.00 |
Total Non-current Assets | 11,331,656,451.05 | 11,331,656,451.05 | 0.00 |
Total Assets | 75,358,000,240.29 | 75,358,000,240.29 | 0.00 |
Current Liabilities: | |||
Short-term borrowings | 2,640,082,485.15 | 2,640,082,485.15 | 0.00 |
Held-for-trading financial liabilities | 652,428.18 | 652,428.18 | 0.00 |
Notes payable | 1,239,584,016.70 | 1,239,584,016.70 | 0.00 |
Accounts payable | 12,700,075,307.70 | 12,700,075,307.70 | 0.00 |
Receipts in advance | 1,020,989,460.61 | -1,020,989,460.61 | |
Contract liabilities | 1,128,239,007.61 | 1,128,239,007.61 | |
Payroll payable | 2,359,674,640.12 | 2,359,674,640.12 | 0.00 |
Taxes payable | 991,342,805.91 | 991,342,805.91 | 0.00 |
Other payables | 1,568,744,599.94 | 1,568,744,599.94 | 0.00 |
Including : Interests payable | |||
Dividends payable | 108,129,385.24 | 108,129,385.24 | 0.00 |
Non-current liabilities due within | 86,123,154.06 | 86,123,154.06 | 0.00 |
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Hikvision 2020 Q3 Report
Item | December 31st 2019 | January 1st 2020 | Adjustments | |||||
one year | ||||||||
Other current liabilities | 913,534,538.26 | 913,534,538.26 | 0.00 | |||||
Total Current Liabilities | 23,520,803,436.63 | 23,628,052,983.63 | 107,249,547.00 | |||||
Non-current Liabilities: | ||||||||
Long-term borrowings | 4,604,168,571.43 | 4,604,168,571.43 | 0.00 | |||||
Long-term payables | 50,181,416.72 | 50,181,416.72 | 0.00 | |||||
Provisions | 90,570,669.01 | 90,570,669.01 | 0.00 | |||||
Deferred income | 333,589,831.30 | 226,340,284.30 | -107,249,547.00 | |||||
Deferred tax liabilities | 51,088,103.96 | 51,088,103.96 | 0.00 | |||||
Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 | 0.00 | |||||
Total non-current liabilities | 6,364,337,918.52 | 6,257,088,371.52 | -107,249,547.00 | |||||
Total liabilities | 29,885,141,355.15 | 29,885,141,355.15 | 0.00 | |||||
Owners' Equity | ||||||||
Share capital | 9,345,010,696.00 | 9,345,010,696.00 | 0.00 | |||||
Capital reserves | 4,126,943,698.96 | 4,126,943,698.96 | 0.00 | |||||
Less: Treasury shares | 2,148,273,864.36 | 2,148,273,864.36 | 0.00 | |||||
Other comprehensive income | -53,541,146.99 | -53,541,146.99 | 0.00 | |||||
Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 | 0.00 | |||||
Retained earnings | 28,961,389,145.22 | 28,961,389,145.22 | 0.00 | |||||
Total owners' equity attributable | 44,904,033,876.83 | 44,904,033,876.83 | 0.00 | |||||
to owner of the Company | ||||||||
Minority equity | 568,825,008.31 | 568,825,008.31 | 0.00 | |||||
Total owners' equity | 45,472,858,885.14 | 45,472,858,885.14 | 0.00 | |||||
Total liabilities and owners' equity | 75,358,000,240.29 | 75,358,000,240.29 | 0.00 | |||||
Balance Sheet of the Parent Company
Unit: RMB | |||
Item | December 31st 2019 | January 1st 2020 | Adjustments |
Current Assets: | |||
Cash and bank balances | 16,851,590,525.05 | 16,851,590,525.05 | 0.00 |
Notes receivable | 149,703,073.98 | 149,703,073.98 | 0.00 |
Accounts receivable | 25,107,965,925.08 | 25,107,965,925.08 | 0.00 |
Receivables for financing | 84,839,695.67 | 84,839,695.67 | 0.00 |
Prepayments | 160,688,588.99 | 160,688,588.99 | 0.00 |
Other receivables | 921,275,388.15 | 921,275,388.15 | 0.00 |
Including: Interests receivable | |||
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Hikvision 2020 Q3 Report
Item | December 31st 2019 | January 1st 2020 | Adjustments |
Dividends receivable | 2,550,000.00 | 2,550,000.00 | 0.00 |
Inventories | 171,243,815.97 | 160,419,083.27 | -10,824,732.70 |
Contract assets | 10,824,732.70 | 10,824,732.70 | |
Non-current assets due within one year | 4,513,795.81 | 4,513,795.81 | 0.00 |
Other current assets | 23,117,398.50 | 23,117,398.50 | 0.00 |
Total Current Assets | 43,474,938,207.20 | 43,474,938,207.20 | 0.00 |
Non-current Assets: | |||
Long-term receivables | 681,568.43 | 681,568.43 | 0.00 |
Long-term equity investment | 5,074,018,030.44 | 5,074,018,030.44 | 0.00 |
Other non-current financial assets | 309,504,047.44 | 309,504,047.44 | 0.00 |
Fixed assets | 2,831,295,145.61 | 2,831,295,145.61 | 0.00 |
Construction in progress | 153,416,054.28 | 153,416,054.28 | 0.00 |
Intangible assets | 188,362,883.75 | 188,362,883.75 | 0.00 |
Long-term deferred expenses | 34,199,446.06 | 34,199,446.06 | 0.00 |
Deferred tax assets | 126,357,792.34 | 126,357,792.34 | 0.00 |
Other non-current assets | 21,619,464.07 | 21,619,464.07 | 0.00 |
Total Non-current Assets | 8,739,454,432.42 | 8,739,454,432.42 | 0.00 |
Total Assets | 52,214,392,639.62 | 52,214,392,639.62 | 0.00 |
Current Liabilities: | |||
Short-term borrowings | 2,001,781,388.89 | 2,001,781,388.89 | 0.00 |
Accounts payable | 450,983,270.08 | 450,983,270.08 | 0.00 |
Receipts in advance | 227,242,328.23 | -227,242,328.23 | |
Contract liabilities | 227,242,328.23 | 227,242,328.23 | |
Payroll payable | 1,564,304,003.49 | 1,564,304,003.49 | 0.00 |
Taxes payable | 796,890,945.83 | 796,890,945.83 | 0.00 |
Other payables | 533,325,191.05 | 533,325,191.05 | 0.00 |
Including : Interests payable | |||
Dividends payable | 105,679,385.24 | 105,679,385.24 | 0.00 |
Non-current liabilities due within one year | 9,539,251.98 | 9,539,251.98 | 0.00 |
Other current liabilities | 913,534,538.26 | 913,534,538.26 | 0.00 |
Total Current Liabilities | 6,497,600,917.81 | 6,497,600,917.81 | 0.00 |
Non-current Liabilities: | |||
Long-term borrowings | 3,126,200,000.00 | 3,126,200,000.00 | 0.00 |
Provisions | 62,863,096.83 | 62,863,096.83 | 0.00 |
Deferred income | 162,018,728.45 | 162,018,728.45 | 0.00 |
Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 | 0.00 |
30
Hikvision 2020 Q3 Report
Item | December 31st 2019 | January 1st 2020 | Adjustments |
Total non-current liabilities | 4,585,821,151.38 | 4,585,821,151.38 | 0.00 |
Total liabilities | 11,083,422,069.19 | 11,083,422,069.19 | 0.00 |
Owners' Equity | |||
Share capital | 9,345,010,696.00 | 9,345,010,696.00 | 0.00 |
Capital reserves | 4,064,833,739.52 | 4,064,833,739.52 | 0.00 |
Less: Treasury shares | 2,148,273,864.36 | 2,148,273,864.36 | 0.00 |
Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 | 0.00 |
Retained earnings | 25,196,894,651.27 | 25,196,894,651.27 | 0.00 |
Total owners' equity | 41,130,970,570.43 | 41,130,970,570.43 | 0.00 |
Total liabilities and owners' equity | 52,214,392,639.62 | 52,214,392,639.62 | 0.00 |
31
Hikvision 2020 Q3 Report
-
Description of retrospective adjustment to prior comparative data for the implementation of the new revenue standard since 2020.
√Applicable □Inapplicable
Consolidated Balance Sheet
Unit: RMB | |||||||||||
Book value presented | Book value presented | ||||||||||
according to former revenue | Reclassification | according to the New | |||||||||
standards on December 31st | Revenue Standard on | ||||||||||
2019 | January 1st 2020 | ||||||||||
Accounts receivable (Note 1) | 21,307,927,200.28 | -34,962,617.72 | 21,272,964,582.56 | ||||||||
Inventories (Note 1) | 11,267,986,843.11 | -511,959,250.70 | 10,756,027,592.41 | ||||||||
Contract assets (Note 1) | 546,921,868.42 | 546,921,868.42 | |||||||||
Other non-current assets- | |||||||||||
Completed but unsettled assets | 751,457,739.44 | -751,457,739.44 | |||||||||
formed by construction contracts | |||||||||||
(Note 1) | |||||||||||
Other non-currentassets-contract | 751,457,739.44 | 751,457,739.44 | |||||||||
assets (Note 1) | |||||||||||
Receipts in advance (Note 2) | 1,020,989,460.61 | -1,020,989,460.61 | |||||||||
Contract liabilities (Note 2) | 1,128,239,007.61 | 1,128,239,007.61 | |||||||||
Deferred income (Note 2) | 333,589,831.30 | -107,249,547.00 | 226,340,284.30 | ||||||||
Note1: The construction contracts undertaken by the Group were performance obligations to be fulfilled over a period of time, and the Group recognized revenue based on the progress of fulfillment of the contract. The amount of revenue recognized by the Group based on the progress of fulfillment of the project in excess of the processed settlement amounts for contracts in progress is reclassified as contract assets. Accordingly, as at January 1st 2020, the Group's completed but unsettled assets of RMB 1,263,416,990.14 and accounts receivable of RMB 34,962,617.72 formed by construction contracts previously presented under inventory and other non-current assets were reclassified as contract assets, of which the amounts expected to be to be collected in more than one year were presented under other non-current assets.
Note 2:Receipts in advance received by the Group for sales of goods and services rendered were reclassified as contract liabilities as at January 1st 2020. The Group's obligations to provide services to customers in consideration for the provision of cloud storage and other services were reclassified to contract liabilities as at January 1st 2020.
32
Hikvision 2020 Q3 Report | ||||||||||
Balance Sheet of the Parent Company | ||||||||||
Unit: RMB | ||||||||||
Book value presented | Book value presented | |||||||||
according to former revenue | Reclassification | according to the New | ||||||||
standards on December 31st | Revenue Standards on | |||||||||
2019 | January 1st 2020 | |||||||||
Inventories (Note 1) | 171,243,815.97 | -10,824,732.70 | 160,419,083.27 | |||||||
Contract assets (Note 1) | 10,824,732.70 | 10,824,732.70 | ||||||||
Receipts in advance (Note 2) | 227,242,328.23 | -227,242,328.23 | ||||||||
Contract liabilities (Note 2) | 227,242,328.23 | 227,242,328.23 | ||||||||
Note1: The construction contracts undertaken by the Company were performance obligations to be fulfilled over a period of time, and the Company recognized revenue based on the progress of fulfillment of the contract. The amount of revenue recognized by the Company based on the progress of fulfillment of the project in excess of the processed settlement amounts for contracts in progress is reclassified as contract assets. Accordingly, as at January 1st 2020, the Company's completed but unsettled assets of RMB 10,824,732.70 from construction contracts previously presented under inventory were reclassified as contract assets.
Note 2:Receipts in advance received by the Company for the sales of goods and services rendered were reclassified to contract liabilities as at January 1st 2020.
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Hikvision 2020 Q3 Report
4.3 Audit Report
Whether audit has been performed on this 2020 3rd Quarter Report □ Yes √ No
The Company's 2020 3rd Quarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
Chairman: Chen Zongnian
October 24th 2020
Note: This document is a translated version of the Chinese version 2020 Q3 Financial Report ("2020 年第三季度报告全文"), and the published 2020 Q3 report in the Chinese version shall prevail. The complete published Chinese 2020 Q3 Financial Report may be obtained at http://www.cninfo.com.cn.
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Hangzhou Hikvision Digital Technology Co. Ltd. published this content on 28 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2020 09:19:08 UTC