Hikvision

History

Hikvision was founded in 2001 by HIK Information Technology (Chinese: 浙江海康信息技术股份有限公司) with 51% stake and Gong Hongjia (Chinese: 龚虹嘉) 49% stake. Hikvision made products for the video surveillance market. It devotes eight percent of its annual revenue to research and development.

Hikvision has been listed on the Shenzhen Stock Exchange since 2010. The company has its presence in twenty locations around the world.

In October 2016, the company concluded a deal to use Movidius' computer vision technology.

Shareholders

Hikvision was owned by China Electronics Technology HIK Group Co., Ltd. (HIK Group, Chinese: 中电海康集团有限公司) for 39.9% stake, a wholly owned subsidiary of China Electronics Technology Group. China Electronics Technology Group is a state-owned enterprise that was supervised by the State-owned Assets Supervision and Administration Commission of the State Council. China Electronics Technology Group held an additional 1.97% stake of Hikvision via their 52th research institute (Chinese: 中国电子科技集团公司第五十二研究所). The Chairman of Hikvision, Chen Zongnian (Chinese: 陈宗年), was also the chairman and Party Committee Secretary of HIK Group, and Head of the research institute.

The second largest shareholder (by consortium) was co-founder of Hikvision, Gong Hongjia for 18.28% and a private equity fund (Chinese: 新疆普康投资有限合伙企业) for 2.10% respectively, which the fund was partly owned by by Gong's wife Chen Chunmei (Chinese: 陈春梅), as one of the 3 partners and as controlling unit holder. Gong and the private equity fund owned a combined 20.38% stake.

The third largest shareholder was a private equity fund (Chinese: 新疆威讯投资管理有限合伙企业) for 7.09% stake, which was associated with former and current management board of the company, such as Liu Xiang (Chinese: 刘翔), current director and former vice-president of Hikvision, current vice-president of HIK Group, chairman of sister company Phoenix Optical (SSE: 600071). The top 3 shareholders owned a combined 69.35% stake.

Lastly, Zhejiang Orient Holdings (SSE: 600120), the fourth largest shareholder for 1.26% stake, was a publicly held company that Zhejiang Provincial People's Government was the largest shareholder; Central Huijin Asset Management, the fifth largest shareholder for 0.72% stake, was a wholly owned subsidiary of state-owned investment company Central Huijin Investment. The largest non-government non-employee shareholders are Morgan Stanley (0.55%), BNP Paribas (0.54%), a Hong Kong based subsidiary of E Fund Asset Management (0.51%) and New China Life Insurance (0.506%). The latter two were the managers of exchange-traded fund and insurance-linked fund respectively.

Activities

Hikvision carries out research and development, design and manufacturing of CCTV, and video surveillance products. The company produces Smart IP cameras, HD analog cameras, speed domes, NVRs, DVRs, video management software, access control and alarm systems. Hikvision serves a number of markets and has sold video surveillance systems to London Underground and McDonald's fast food restaurants in Malaysia.

Market

In 2015, Hangzhou Hikvision Digital Technology Co.Ltd. overtook Dahua Technology in the domestic market as a civilian-run enterprise.

In 2016, Hikvision was ranked 1098th by Forbes Global 2000 List: a listing of the world's top publicly traded companies. As at 16 November 2016, Hikvision was also a constituent of the SZSE 100 Index; a blue chip index of the Shenzhen Stock Exchange, as well as the pan-China indexes CSI 300 Index, FTSE China A50 Index and Hang Seng China 50 Index.

Controversy

John Honovich, of the IP surveillance industry blog IPVM.com, has alleged Hikvision for using its state ownership to secure contracts and for the company allegedly obscuring its Chinese origins.

According to an interview by Alan West published by the The Times (and re-published by The Australian), averred that Hikvision's ownership raise ethical concern on the usage of Hikvision's product in British central government offices.