After the release of the third quarter report for 2022 on October 28, Hikvision held a performance conference call yesterday.
Hikvision said that when making plans for staffing and expenses, the company will take into account the slowdown of the macro economy, and the company’s current strategy is not to expand until the macro economy does not significantly improve.
According to reports, from the perspective of expenses, Hikvision’s investment in personnel this year includes new employee recruitment and employee salary adjustments, which are basically completed in March-April, so the strategy of not expanding may affect the current report. There is no obvious improvement. As for the number of personnel, it is calculated and controlled based on 42,000 people. The strategy will continue until next year, and the cost pressure of personnel growth will be much smaller next year. From the perspective of talent competition, in the past few years until the beginning of this year, the overall talent competition has been in a relatively fierce state. Since the first half of this year, all walks of life have felt the pressure, and the competition in school recruitment and social recruitment has slowed down. , the pace of talent acquisition and the cost of recruitment have eased. Looking to the next year and the next year, the pressure on the company’s personnel expenses will not continue to be forced to increase, and the company’s initiative will be greatly enhanced.
Talking about the decline in gross profit, Hikvision stated that the company’s gross profit margin is the result of various business income mixes, and due to weak external demand, many projects have been delayed, especially high-quality projects with high gross profit, because customers The funds are tight, and the landing is more hesitant. “The downturn in gross profit is a concentrated reflection of the economic environment at this stage, and it will not be long-term. The economy will improve in the future, the business will enter a relatively normal state, and the structure of income will improve. The company’s competitiveness is in Strengthened, the company has confidence in future gross profit.”
In terms of net profit, Hikvision said that the negative growth was mainly attributable to: one is the weak demand brought about by the economic downturn, and the other is the restriction of regional liquidity brought about by the epidemic lockdown, which has resulted in restricted business development, which has a negative impact on the competitive landscape. No major changes were brought about. In addition, the current industrial competition pattern is improving, and the difficulties and challenges encountered at present are mainly from the macro environment, so I believe that as the macro environment improves in the future, the company and its friends will improve.
The financial report shows that in the first three quarters of 2022, Hikvision achieved a cumulative operating income of 59.722 billion yuan, a year-on-year increase of 7.36%; the cumulative net profit attributable to shareholders of listed companies was 8.840 billion yuan, a year-on-year decrease of 19.38%. Among them, Hikvision achieved an operating income of 22.464 billion yuan in the third quarter, a year-on-year increase of 3.39%; net profit attributable to shareholders of listed companies was 3.081 billion yuan, a year-on-year decrease of 31.29%.
