Hikvision Robotics launches listing guidance Hikvision’s innovative business welcomes spin-off and listing

The global security giant Hikvision’s spin-off of its robot business has ushered in important progress. Public disclosures show that on September 9 this year, CITIC Securities and Haikang Robot signed a tutoring agreement, and at the same time formally submitted the tutoring filing application materials to the Zhejiang Securities Regulatory Bureau and was accepted and listed on September 30, 2022. This means that Hikvision Robotics has taken an important step in its spin-off and listing plan.

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Hikvision Robot is a part of Hikvision’s innovative business family, and has grown into a leading provider of hardware products and algorithm software platforms for machine vision and mobile Robots in China. According to the research statistics of the High-tech Robot Industry Research Institute (GGII), Hikvision Robot will be the manufacturer with the largest overall sales of mobile robots in the Chinese market in 2021. In terms of machine vision, Hikvision Robot has three major product lines: 2D vision product line, intelligent ID product line and 3D product line.

Looking back at the process of the spin-off and listing of Hikvision Robotics, on the evening of June 10 this year, Hikvision disclosed the spin-off listing plan. The company plans to change the holding subsidiary Hangzhou Hikvision Robot Technology Co., Ltd. (referred to as Hikvision Robot) as a joint-stock limited company. After the company was spun off, it was listed on the GEM of the Shenzhen Stock Exchange.

As of the announcement date of the plan, Hikvision directly holds a 60% stake in Hikvision Robot and is the controlling shareholder of Hikvision Robot. After the completion of the spin-off, Hikvision’s shareholding structure will not change, and it will maintain its controlling stake in Hikvision Robotics.

In terms of performance, from 2019 to 2021, Hikvision Robot achieved operating incomes of 852 million yuan, 1.552 billion yuan and 2.740 billion yuan respectively, and net profits were 30.1044 million yuan, 80.2247 million yuan and 485 million yuan respectively. As of the end of 2021, Haikang Robot’s assets totaled 2.631 billion yuan, and the owner’s equity attributable to the parent company was 768 million yuan.

At present, Hikvision’s innovative business camps include Hikvision Robotics, EZVIZ Networks, Hikvision Weiying, Hikvision Automotive Electronics, Hikvision Storage, Hikvision Fire Protection, Hikvision Ruiying, Hikvision Huiying, etc. The main business of Hikvision Robot, the main business of this spin-off, is the design, research and development, production, sales and value-added services of hardware products and algorithm software platforms for machine vision and mobile robots, and maintains a high degree of independence from the company’s main business and other innovative businesses. .

“Through this spin-off, Hikvision will further focus on its main business and focus on technological innovation in the fields of IoT perception, artificial intelligence and big data.” Hikvision also stated that through this spin-off, Hikvision Robotics will be Create an independent listing platform for the company’s subordinates engaged in machine vision and mobile robot business, and fully leverage the capital market to further increase Hikvision Robot’s R&D investment in the field of machine vision and mobile robots, and enhance Hikvision Robot’s profitability and comprehensive competitiveness.

After a lapse of three months, Hikvision Robotics took an important step in its spin-off and listing. Public disclosure shows that on September 9 this year, CITIC Securities signed a tutoring agreement with Haikang Robot, and at the same time formally submitted the application materials for tutoring to the Zhejiang Securities Regulatory Bureau and was accepted and listed on September 30, 2022. CITIC Securities has formulated corresponding counseling plans and implementation plans in accordance with the provisions and requirements of laws and regulations. Up to now, CITIC Securities’ listing guidance for Haikang Robot is still in progress.

Split the EZVIZ network

Hikvision Robot is only one part of Hikvision’s “one-to-many” capital layout. Recently, another subsidiary of Hikvision, EZVIZ, was listed on the Science and Technology Innovation Board.

In August 2021, Hikvision announced the spin-off and listing of EZVIZ Network. The predecessor of EZVIZ Network, EZVIZ Co., Ltd., was originally the internet business center of Hikvision, a listed company. In April 2021, EZVIZ Network completed the share reform and spin-off. In December of that year, EZVIZ Network submitted a prospectus to the Shanghai Stock Exchange and applied for listing on the Science and Technology Innovation Board. In this IPO, EZVIZ plans to raise 3.739 billion yuan for EZVIZ intelligent manufacturing Chongqing base project, IoT cloud platform project, smart home core key technology research and development projects, etc.

On the evening of June 6 this year, the official website of the Shanghai Stock Exchange showed that the IPO of the EZVIZ Internet Science and Technology Innovation Board was held for the first time. Subsequently, on June 23, a registration application was submitted to the China Securities Regulatory Commission. The latest news shows that on September 30, the financial information recorded in the issuance and listing application documents of EZVIZ Network has expired and needs to be submitted supplementally, and its issuance registration process will be suspended according to regulations.

With the support of industry insiders, the reason why Hikvision has the soil to split multiple subsidiaries is related to its internal incentive mechanism. Since 2015, the company has established an internal innovation and investment mechanism to encourage internal employees to innovate and start businesses. By the end of last year, five innovative businesses had revenue of more than 1 billion yuan. A number of securities research institutions believe that Hikvision’s innovative business has a good momentum of development, injecting new impetus into the company’s long-term sustainable development.

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Published on 03/21/2023