China is one of the safest countries in the world, and the crime rate is also among the lowest in the world. Why is China so safe? One of the reasons is the surveillance all over the streets.
In cities, in almost all public places, there are surveillance figures, even now surveillance is very common in rural areas, precisely because of our country’s The security industry is so developed that it has spawned many related technology companies. One security technology company has become the world’s largest video surveillance company. The name is Hikvision.
Hikvision was established It’s only 20 years, but it has been 9 years in a row, ranking first in the global video surveillance industry. It was sanctioned by the United States in 2019, but this not only did not affect it, it is even getting better and better, just like DJI.
Why doesn’t Hikvision face the sanctions imposed by the United States at all? How did Hikvision go from catching up to surpassing foreign countries, and how did it respond to US sanctions?
Hikvision was founded in 2001 and is considered a very young company. Previously, China’s security monitoring industry did not develop well. After the reform and opening up, my country began to pay attention to the security industry, but at that time China was almost a blank in this regard.
The price of various equipment Very expensive, and the monitoring system is very simple. It consists of only analog cameras, VCR video tapes, and CRT video walls. However, domestic camera production The technology is backward, so almost all of them are monopolized by Japanese companies.
At that time, there were few places that could be equipped with surveillance, and only some special government departments could equip it. However, with the progress of reform and opening up, the field of science and technology in my country has developed rapidly, and the security industry As a result, a group of companies seized the opportunity of the technological revolution and started the research and development of domestic brands.
It wasn’t until 2000 that my country’s security industry saw an improvement. Around 2000, the security industry became a sunrise industry. In 2001, China Electronics Technology Group’s Chen Zongnian and Hu Yangzhong, etc., broke through the core technology of digital video recorders, greatly improving the image quality, while also saving a lot of hard disk capacity and network transmission bandwidth, leading In major domestic manufacturers.
So China Electronics Technology Group A group of backbone members of the 52nd Institute founded Hikvision on November 30, 2001, and quickly occupied 60%of my country’s market share. By 2003, with another breakthrough in technology, Hikvision’s The market share accounted for 80%, and the company’s turnover reached 160 million yuan.
In 2003, China’s”Golden Shield Project” was officially launched, followed by 3111 Projects and Skynet projects have enabled China’s security market to expand rapidly. With its market advantages, Hikvision took the lead in cutting into the field of higher-value front-end digital cameras, allowing Hikvision to stabilize its position. In 2010, Hikvision According to the successful listing, 3.4 billion yuan was raised. On the day of listing, the company’s market value reached 40.97 billion yuan.
With the injection of capital, Hikvision has also accelerated its overseas market layout. In 2011, it has become the world’s largest video surveillance company. In 2018, Haikang Kangwei already owns 22.6%of the global market, the company’s operating income is nearly 50 billion yuan, and the net profit is as high as 11.353 billion yuan.
Since its listing for eight years, the company Total assets increased by 9.7 times, revenue increased by 13.8 times, and net profit increased by 10.8 times, far ahead of its global counterparts.
At that time, Hikvision was calling for trouble in the entire industry. However, since 2018, the United States has begun to suppress Hikvision. In May 2018 , The U.S. House of Representatives passed the National Defense Authorization Act of 2019, expressly prohibiting U.S. government departments from purchasing Hikvision’s security monitoring equipment. At that time, Hikvision’s stock price fell.
Three months later, the U.S. House of Representatives attacked again, criticizing the security construction in northwest my country and demanding sanctions against Hikvision. Australia and some Western European countries also followed suit. response. In September, the United States began to impose a 10%tariff on security monitoring products. Therefore, from the third quarter of 2018, Hikvision’s overseas business began to shrink, and the growth rate of overseas business dropped directly from 27%to 9%.
In 2019, Haikang Weishi’s net profit attributable to its parent in the first quarter was 1.54 billion yuan, a year-on-year decrease of 15.4%. Soon after, Hikvision was included in the list of export control entities along with the remaining 28 companies. Various things imported from the United States Receive restrictions, such as mechanical hard drives, CPUs, GPUs, etc.
In addition, the production of factories using American original technology or software construction is also restricted. However, Hikvision is not worried at all, and is not afraid of the United States at all. For sanctions, they had already anticipated the actions of the United States and made preparations in advance.
In fact, in the field of security, especially in dedicated devices, Hikvision’s reliance on imports from the United States is very low, but it is more dependent on some back-end equipment. High, such as CPU, GPU, etc. For the stability of the supply chain, the company has strengthened the work of material substitution, that is, looking for alternatives, replacing the original American components with other countries.
Moreover, most of the components in the United States have found substitutes, or they can be replaced by new design schemes, which will not affect the product’s performance. Performance, of course, there are always some things that cannot be replaced temporarily, so Hikvision has already started hoarding related components to ensure that it will not be affected for a period of time.
There are also some materials directly Through business adjustments, and even by customers’ own purchases and combinations, Hikvision did not panic at all because of complete preparations. They did not give up the US market. Moreover, the company also stated that if necessary, Hikvision would Design chips by ourselves, and further increase product research and development, from product systems to detector processors, etc., to invest more resources in some more basic fields.
In 2019, Hikvision invested 5.484 billion yuan, with more than 19,000 R&D and technical service personnel, and maintained a large-scale R&D based on investment in product hardware and software. In terms of both, great progress has been made, and the products still maintain the world’s leading position. Hikvision, which was fully prepared, has not only failed to be hit as the United States hoped after being sanctioned by the United States, but it has continued to do better.
In 2020, Hikvision’s market value will exceed 400 billion yuan, once again creating a historic new achievement, and its share in the global surveillance market has reached 24.1%, still firmly established Occupying the first place in the world, Hikvision’s market value has now exceeded 500 billion yuan.
You can also see here The United States’ suppression has not only been useless, but has made the company stronger. Like DJI, this type of company that relies on its own, the impact of US sanctions is not as great as imagined.
I believe that in the future, there will be more and more such companies in China, and you can ignore the face of the United States at all. Of course, this is a long way to go for China. Nowadays, the most severely restricted area in our country is still chips. Only when chips completely break free from the US blockade can our country truly not be afraid of being stuck. I believe that the arrival of this day will not be too far away. We will wait and see.