Hikvision has released its 2016 financial performance showing revenues of $4.6 billion, up 26% for the China-based surveillance camera maker. The company’s net profits also rose 26% to $1 billion. In the meantime, the company said work is progressing on a new R&D Centre in Montreal and a new Research Institute in Silicon Valley, Calif. Jeffrey He, president of Hikvision USA and Hikvision Canada, calls the financial performance “concrete results and commitments that our integrator partners can depend on.”
Overall revenue increased 26% percent year-over-year, from $3.6 billion (RMB ¥25.2 billion) in 2015 to $4.6 billion (RMB ¥31.9 billion) in 2016. Gross profit margin was 41%, marking a 1.42% increase over the 2015 gross profit margin of around 40%. Net profits were up about 27% at $1 billion (RMB ¥7.4 billion) in 2016, compared to $841 million (RMB ¥5.8 billion) in 2015. He says the results are not broken out by region, “however, I can tell you that North America yet again experienced solid growth in 2016. This is a continuing trend for the past several years.”
“Our growth is a direct result of our leading R&D technology innovation capability, our secure products, growth in overseas markets including North America, and our continuous efforts to optimize operating quality and efficiency,” says He. He notes that Hikvision typically reinvests about 7% to 8% of overall revenue into R&D. In 2016, Hikvision invested $348 million (RMB ¥2.4 billion), or 7.62% of overall revenue, in R&D. The 2016 R&D investment was 41.26% higher than the 2015 investment of $249 million (RMB ¥1.72 billion).
Hikvision currently has five R&D centers in China, but it is opening an R&D Centre in Montreal this year, and plans to launch a Research Institute in the Silicon Valley in the near future. “Over the past couple of years, we’ve made substantial investments in our regional organizations, and the R&D Centre and the Research Institute are a testament to Hikvision’s continued commitment to the market. The R&D Centre and Research Institute will help us get the most innovative technology talent in the industry, be more localized in our market and to serve our customers even better,” explains He.