Hikvision: Profit increased by 18.46% year-on-year to 14.188 billion yuan.
Hikvision, the world's leading security monitoring company, achieved a significant recovery in profits despite basically flat revenue, indicating that the company’s profit-focused business strategy adjustment is beginning to show results.
On January 20, Hikvision released its 2025 annual performance express, stating that over the past year the company proactively advanced a comprehensive business strategy adjustment. Through refined management and organizational change—with revenue increasing by only 0.02%—net profit attributable to shareholders of the listed company grew 18.46% year-on-year to 14.188 billion yuan. This performance clearly shows the company’s improved profitability amid growth pressures by boosting internal efficiency.
In terms of business orientation, Hikvision made it clear that in 2025 it will resolutely implement a profit-centered strategy and accelerate digital transformation to pursue high-quality, sustainable growth. Besides the substantial rebound in net profit, the company also emphasized strengthened management of accounts receivable collections, leading to a “significant increase” in operating cash flow; this improvement provides investors with a positive signal about the company's financial health.
Although only preliminary accounting data was released this time, the double-digit profit growth and a nearly 20% increase in basic earnings per share may ease previous market concerns about the profitability of the technology hardware sector. The profit release achieved through cost control and optimized management by Hikvision reflects the typical path of mature tech companies transitioning from scale expansion to a focus on efficiency.
Profit Rebound Amidst Flat Revenue
According to the express, in 2025 Hikvision achieved total operating revenue of 92.518 billion yuan, only up by 0.02% from 92.496 billion yuan the previous year, showing that its revenue scale has entered a plateau. However, profitability indicators showed a very different trend.
In 2025, the company achieved operating profit of 16.978 billion yuan, up 18.63% year-on-year; total profit reached 17.029 billion yuan, up 18.72%. Net profit attributable to shareholders of the listed company, after deducting non-recurring gains and losses, was 13.696 billion yuan, up 15.92% year-on-year. Basic earnings per share also rose, increasing from last year’s 1.297 yuan to 1.545 yuan, a 19.12% rise. Weighted average return on equity (ROE) increased from 15.34% to 17.29%, up by 1.95 percentage points.
Asset Status and Share Capital Changes
By the end of 2025, Hikvision’s total assets reached 138.15 billion yuan, up 4.65% from the start of the period. Shareholders' equity attributable to shareholders of the listed company was 83.338 billion yuan, up 3.31%. Net assets per share attributable to shareholders also rose by 4.07% to 9.093 yuan.
Of note, during the reporting period, the company’s share capital changed. Due to share repurchase and cancellation, total share capital fell from about 9.233 billion shares at the beginning of the period to about 9.165 billion shares, a decrease of 0.74%. This reduction in shares increased earnings per share to some extent.
Hikvision reminds that the above financial data is preliminary accounting, and final figures will be subject to the audited annual report by the accounting firm.
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