Dahua and Hikvision Address Unpaid PRC China Government Deals
**** *** *****'* ***** *********** ********** financially, ********* *** ***** ******** *********' concerns ***** *********** ************* ********** *****.
** **** ****, ** ******* **** Hikvision *** ***** **** ***** ******** this **** ****** *** *******'* ********* crisis.
***** ********** ********* **** ***** (***** ********** ** *** **** *** PRC ***** ********** *****), *** **** ***** *** ********* reportedly ********* ******* ******** ********* (********* ********* ******* **** ********* ** Xinjiang*** ***** ****** ******** ** *** coming *****).
Executive *******
** ***-***** ***** *********** **** **** financially ********** **** *** *******'* **** estate ****** ** *** **** ****, Hikvision *** ***** **** ***** ******** from ***** ***** ********** *********. ********** have ************* ***** **** "*** ***** ** [its] ********** ********* *** ********** *****"*** **** *** ************ ** *** more **** * **** ***. **** is ********** ******** *** *** *** companies ** ********** ***** ************ **** up ** **** ** **% ** their ***** *******, **** ********* ****** *** ******** ******* *** both ** *** **** *** *****.
**** ********* **** **** *** ***** waiting *** ******* **** *** ******* government ********* *** ****** ** **** local *********** ******* ***** **** ******. However, **** *** ********** **** *** situation ** ********* ** *** ******* government ** *** ******* * **** "proactive ********" ** ******** ********* ******* to ***** *********** *** ******* ***** funding "** *******" *** ******* ****** projects.
PRC ***** ***'* ********* ***** **** **** "**** *********" ********
*** *****'* ***** *********** ********** ******* ** ******* **** **** sales ** **********, * ******** ***** as "**** *********,"** **** ************** ******** *** ****** services. *******, *** ******** ** *** country's ******** ****** *** ***** ******** ** *** **** ****** conglomerate ************ ***-**** *** *** ** * sharp ******* ** **** *****,******** ********* ***** ***********' ******** *** making **** ****** ** *** *** their *****/*****.
PRC ***** ******* *** ******** ***** *** **** **** *****
** ****** ***** ***** *********** **** their ********* *******, ******-***** ********** ********* **** **** ********** **** ******** ***** **** ********. Through **** ********, ***** *********** **** take *** *** ***** ** *** off *** *****.
Hikvision ********* **% ** **** ****** ** *** **** **** **** ****
***** **** ***** ******* ** *** PRC ******* ********** *** **** ***** governments **** ***** *****, **** ******* can't ****** ** ******* *** **** amount ** ***** *** *****. *** example, ********* ********* **** ** ********* 70% ** * **** ** ********** recognized ** * *** **** ******* in * **** ****:
** ********** * ******* ** ****** on ** ****/**** ** *** *****. From *** ********** ***********, **** ******* was ******* ***. *******, ***** **, the **** *** ************ *** ****** out ** ** ** * **% discount.
之前我们曾经分享过一个小案例，****/**** 年曾经做过的项目计提了坏账，从财务规则角度说已经全部计提了，但后来债务重组，是按照 * 折给我们兑现的。
***** **** ***** **** ********* ******* previously ************* ******* ***********, ** **** the ******** *** "**** *** *** company."
Hikvision "******* *** *************" ********* **** **** ********
***********'* ** **** ******** ****, *** ********* *********** ***** ****** the *&* ******* ******* ********* **** any ********* ******* ** ********** ****** government ******* ***********. *** ******* ********* by ****** **** *** ***** ******* for "******* ************* **** *** **********" regarding *** **** **** ******** *** that ***** ********* *** **** ***** government **** **** *** *********, ** is *********** ** ******** ********** *** debts:
** *******, ******** ** ****** ********* to *** ******* **********'* ****** ** decentralizing **** *** ***waiting *** ******* ************* ** **** ******. I think the direction is relatively clear and certain. From the perspective of existing projects, we have been doing government business since the establishment of the company, and the management of bad debts is pretty good. [Emphasis added]
目前大家都关注到了中央财政化债的政策，也在等待这一政策进一步明朗化，我认为方向是比较清晰、比较确定的。从存量项目角度说，我们从公司成立开始就一直在做政府类的业务，坏账的管理情况还不错。
Dahua "****** ****** *********" ** **** **** ********
******* *********, ***** **** **** ** is ******* ********** *** ***** ******* government's **** **** ******** ** ***** **** ******** ****:
*** ******* ** ****** ****** ********* to *** ********** ************** ** ******** regarding **** *****.
公司在积极关注化债等政策的后续落地情况。
***** ***** **** ***** *** ******** usually **** ** ******* *** *** of **** ********** ********, *** ***** of ********** *** **** ****** ********** slowly:
*** ******** *** ********* *** ******** in *** ***** ****** ** *** project, ** *** ******* ************ **** appear ********** ****.
但公司的产品和解决方案是项目偏后期介入的，所以对收入贡献来说，会呈现的相对较晚一些。
Recovering ********** *******-*** ******* ***********
** *** ** ****** ** ******* where ** ********* **% ** * bill ********** ********** ** *** *****, Hikvision ******* ********* **** *** **¥*** million ($** *******) "****** ** **** restructuring" **** ** ***** **** ********* ********* ********* ******** *********** ********** ********** as *** **** ********, ***** ********* that *** ******* ** ****** "*********" recovering **** ** *** ****** **** unpaid ********** ******** **** ***** ***********' financial ******:
** *** ********* ********* **** ******* repayments **** *** ********** *** **** enterprises.
其实，政府及一些企业的项目回款我们会陆续收到一些。
**** [****** ** **** *************] ****** is ******* ** *** ********** ** accounts ***********. ** *** ***** ******** in *** ******* *** ******** ** accounts ***********. **** **** ***** ******** receivables **** ********** ** *** **** expenses, ***when *** ********* ******* **** *** *******, *** ********** **** ** *********. Financially, it became an investment income. [Emphasis added]
这笔款项与应收账款处理是有关系的。我们对应收账款的计提和处理是比较谨慎的， 有些长账龄的应收账款，财务上已经提过减值了，但是当用户最后支付款项时，会将减值收回来，在财务上形成一笔投资收益。
******* ** *********'* *********, ***** **** that ** *** ******* **********'* **** swap ******** **** *** ** ** "better **** ********," ** **** ** able ** ******* ********** *******-*** ******** receivables, ***** ***** **** *** **** flows ** ****:
** ***** ** * **** **** policy **** ******* *** ***********, ** is ******** ** **** * ******** effect ** *** [******] ******* *********** of **** ** *** ********** *********** projects.We ***** ******* **** ** *** *** ***** ******* ** *** ****. This also contributes positively to the cash flow. [Emphasis added]
从项目回款来说，如果有超预期的化债政策，预计可以对公司已参与的政府集成项目的应收账款回款有积极作用，可以释放过去计提的部分坏账，对现金流也有正向贡献。
Hikvision ***** *** ********** ******** ** **********
** ******** ** ******* ** ********** debt ***** ** **** ******* **** account ***********, ********* **** **** ** would ********* *** **** **** ** those ********** ******** ** ********** "******** and **********."
Improve ******* ********* *** "******* ******* *****" & ******** *******
***** ***** *** *** ******* ******** actions ** **** ** ******* ******** receivables ** ****** ******** *****,** ********** **** ** ***** ******** ** ***** "******** *** ****** of ******* ********* ***** ** *** ability ** ******* ******* ***********" *** establish "******* ******* ******" ** **** with *** ***** *********' ********* "******* payment ******** *******" *** "******* *****."
Dahua: ********** ******** "*********" ** ******* ***** ******* *******
***** ** ********** ***** *** *** China ******* **********'* **** **** ****** from ** **** ******, ** ** now ******** * "********* ********" ****** the **********, ***** *** **** ***** funding *** ******** "** *******." **** points ** * ****** ****** ******** to * "********" ** - ** of ****, ** ****:
** ***** * ********* ******** **** the **********. ** ***** ******* ************* arise, *** **********will ******* ********* ******* ** *******, so compared with the relatively cautious situation in the first three quarters, the future may be better. [Emphasis added]
我们感受到政府态度转向积极。如果出现明确的项目机会，政府会提前做资金支持，所以相较于前三季度相对谨慎的情况，未来可能会好一些。
Government ***** ********* ** **** ****** *******
*** **** *** ***** *********** **** gradually ******** ***** **** ******, ** has **** ********** ********* *** **** funding ** ******* ****, ***** *****:
*s *** ********** **** ** ***** ****, ** ****** **** *** ********** ** ****** **** ******** ** ********, which will bring us new business opportunities, such as charging pile construction, highway information construction, vehicle-road collaboration, low-altitude economy and other fields. [Emphasis added]
以及随着政府债务的处理，我们预计政府或将更积极地投资项目，这将为我们带来新的业务机会，如充电桩建设、高速公路信息化建设、车路协同、低空经济等领域。
******* ******** ************* ************ ** ********** projects ** ** ***********, ***** **** it ******* *** ********* ** * low ********** ****** ** "*******" ** Q4 ****:
** *** ** **** **** *** government's ************ *** *** ******** *** effectiveness ** ******* ********** *** **********, and *** ****** *** *********** ********* of ******** ************ ** **** ********. These *** *** ************ *** ******** opportunities. *******, *** ********* ** * lack ** ********** ******** ** *** first ***** ******** ** ******** ** improve [**** *** **].
可以看到，政府对项目投资的精准性和有效性要求在提高，存量建设的智能化升级需求也在涌现，这些都是我们的能力所在和业务机会点。整体来说，在政府驱动下，前三季度这种项目偏少的情况有望改善。