Hikvision H1 2026 Net Profit Surges 39.6% to Record RMB 7.9 Billion, Innovation Business 32.4%

Hikvision reported revenue of RMB 46.823 billion for the first half of 2026, up 11.97% year-on-year, and net profit attributable to shareholders of RMB 7.896 billion, up 39.57%, both record highs for the period since listing. Innovation business accounted for over 32% of total revenue for the first time. On the first trading day after the interim results release, the company's stock rose over 4%, with trading volume hitting a record high since listing.

Over the past five years, Hikvision has invested a cumulative total of over RMB 53 billion in research and development, focusing on new businesses such as robotics, thermal imaging, automotive electronics, smart home, storage and artificial intelligence. In the first half of 2026, innovation business revenue reached RMB 15.17 billion, up 28.93% year-on-year, accounting for 32.4% of total revenue. Among them, storage business revenue grew 88.18%, thermal imaging 47.61%, robotics 28.34%, and automotive electronics 17.50%.

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 nearly flat. Net profit attributable to shareholders showed alternating increases and decreases. Overseas markets faced pressure: in 2022, the U. S. Federal Communications Commission stopped issuing sales authorizations for new Hikvision-related equipment, and in 2025, the Canadian government required Hikvision to close 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 improved market pricing conditions. Total headcount decreased by more than 2,000 in 2025, the first decline in nearly a decade, with R&D staff reducing by over 1,000. In terms of investment income, the company recognized RMB 659 million in investment gains in the first half of 2026, compared with a loss of RMB 37 million in the same period of 2025. The Hangzhou Hikvision Smart Industry Equity Investment Fund contributed approximately RMB 622 million of that amount.

Revenue from the traditional core business was RMB 31.653 billion, up 5.33% year-on-year; innovation business revenue was RMB 15.17 billion, up 28.93%. The gross margin of the innovation business was 44.35%, up 6.07 percentage points year-on-year, but lower than the 53.91% gross margin of the core products and services. The innovation business is more volatile: storage revenue fell 21.24% in the first half of 2025 before rising 88.18% in the first half of 2026; smart home business grew 12.40% in 2025 but slowed to 2.35% in 2026.

In the first half of 2026, Hikvision's net profit attributable to shareholders was RMB 7.896 billion, while net operating cash flow was RMB 3.231 billion, down 39.52% year-on-year. For every RMB 1 of profit generated, the company brought in only about RMB 0.41 of cash, compared with RMB 0.94 in the same period of 2025. Net inventory reached RMB 29.488 billion, an increase of RMB 9.016 billion from the beginning of the year, or 44.04%. The inventory increase consumed approximately RMB 9.235 billion in operating cash. The company explained that it was due to expanded production and sales, increased procurement for stockpiling, and strengthened strategic reserves of key materials.

Net accounts receivable fell to RMB 27.784 billion from RMB 29.812 billion at the beginning of the year, but the provision for bad debts rose from RMB 4.442 billion to RMB 4.921 billion, and accounts receivable overdue by more than two years increased from RMB 3.721 billion to RMB 4.053 billion. Credit impairment losses were RMB 530 million, up nearly 40% year-on-year. The company plans to distribute an interim dividend of RMB 5.041 billion, equivalent to 63.84% of the first-half net profit, or 1.56 times the net operating cash flow for the period. As of the end of June, the company had cash and cash equivalents of RMB 37.851 billion.