Hikvision H1 2026 Revenue Hits Record RMB46.82B, Net Profit Up 39.57%

Hikvision achieved operating revenue of RMB46.82 billion in the first half of 2026, up 11.97% year on year, and net profit attributable to shareholders of RMB7.90 billion, up 39.57%, both setting record highs for the same period since listing. The share of innovative businesses in total revenue exceeded 32% for the first time. On the first trading day after the interim report, the company's share price rose more than 4%, with trading volume reaching a record high since listing.

Over the past five years, Hikvision has invested more than RMB53 billion in research and development, channeling funds into new businesses such as robotics, thermal imaging, automotive electronics, smart home, storage, and artificial intelligence. In the first half of 2026, innovative businesses generated revenue of RMB15.17 billion, up 28.93% year on year, accounting for 32.4% of total revenue. Among them, storage business revenue grew 88.18%, thermal imaging grew 47.61%, robotics grew 28.34%, and automotive electronics grew 17.5%.

From 2022 to 2025, Hikvision's revenue growth remained in single digits for four consecutive years, at 2.14%, 7.42%, 3.53%, and 0.01%, respectively. In 2025, revenue was almost flat. Net profit attributable to shareholders alternated between increases and decreases. Overseas markets faced pressure: in 2022, the U. S. Federal Communications Commission stopped granting sales authorizations for new Hikvision equipment, and in 2025, the Canadian government required Hikvision to shut down its local operations.

In the first half of 2026, Hikvision's gross margin reached 49.97%, up 4.78 percentage points year on year. The company attributed the improvement to enhanced product competitiveness, product line adjustments, and a better market pricing environment. Total headcount decreased by more than 2,000 in 2025, the first decline in nearly a decade, with R&D staff reduced by over 1,000. In terms of investment income, Hikvision recognized RMB659 million in the first half of 2026, compared with a loss of RMB37 million in the same period of 2025, of which the Hangzhou Hikvision Smart Industry Equity Investment Fund contributed approximately RMB622 million.

Traditional core business revenue reached RMB31.65 billion, up 5.33% year on year, while innovative business revenue was RMB15.17 billion, up 28.93%. The gross margin for innovative businesses was 44.35%, up 6.07 percentage points year on year, but lower than the 53.91% gross margin for core products and services. Innovative businesses are volatile: storage revenue fell 21.24% in the first half of 2025 but grew 88.18% in 2026; smart home business grew 12.4% in 2025 but slowed to 2.35% in 2026.

In the first half of 2026, Hikvision's net profit attributable to shareholders was RMB7.90 billion, while net cash flow from operating activities was RMB3.23 billion, down 39.52% year on year. For every RMB1 of profit, only about RMB0.41 of cash was generated, compared with RMB0.94 in the same period of 2025. Net inventory reached RMB29.49 billion, an increase of RMB9.02 billion from the beginning of the year, up 44.04%, and the inventory increase consumed approximately RMB9.24 billion of operating cash. The company explained that this was due to expanded production and sales scale, increased procurement for stocking, and strengthened strategic reserves of key materials.

Net accounts receivable fell from RMB29.81 billion at the beginning of the year to RMB27.78 billion, but bad debt provisions increased from RMB4.44 billion to RMB4.92 billion, and receivables overdue by more than two years rose from RMB3.72 billion to RMB4.05 billion. Credit impairment losses were RMB530 million, up nearly 40% year on year. The company plans to distribute RMB5.04 billion as an interim dividend, equivalent to 63.84% of first-half net profit and 1.56 times the net operating cash flow for the period. As of the end of June, the company held RMB37.85 billion in cash and cash equivalents.