Following the smart home, Hikvision intends to spin off the robot, and the high-growth sector is gradually peeling off

Text/Yang Jianyong

In the past few years, Hikvision's innovative businesses such as smart homes and robotics have performed strongly. In 2020, the total revenue of the innovative business was 6.168 billion yuan, an increase of 39% year-on-year. Among them, the smart home revenue was 2.919 billion yuan, an increase of 12.6% year-on-year, and the robot business revenue was 1.359 billion yuan, an increase of 6.691 billion yuan. In 2021, the growth trend continued, and the total revenue of the innovation business in the first half of the year was 5.578 billion yuan, an increase of 122% year-on-year, accounting for 16.46% of the total revenue. Among them, the smart home revenue was 1.871 billion yuan, an increase of 58.68% year-on-year, and the robot business revenue was 1.22 billion yuan, an increase of 125% year-on-year.

The high-growth sector is gradually divested, and it is planned to spin off Hikvision Robot for independent listing

For the innovation sector in the rapid development of the gradual divestiture. A few days ago, it announced that it intends to start the independent listing of spin-off robot companies. In the background and purpose of the spin-off and listing, under the background of the rapid development of big data, cloud computing, artificial intelligence, machine vision and other technologies, the manufacturing industry has entered the era of intelligent manufacturing with a new generation of artificial intelligence technology as the core. Hikvision Robot is a provider of mobile robots and machine vision products, with visual perception, AI and navigation control and other technologies as the core, with deep algorithm accumulation, strong software and hardware development capabilities, and a complete marketing system, focusing on intelligent manufacturing, continuing to invest in the field of mobile robots and machine vision, and promoting the digitization and intelligence of production and logistics.

Based on hikvision's overall strategic planning, in order to promote innovative business to go hand in hand, and at the same time better serve the goal of localization of national intelligent equipment and independent controllability, safety and efficiency during the "14th Five-Year Plan" period, to achieve high-quality development, it is proposed to implement the spin-off and listing of Hikvision Robot, so as to make full use of the capital market, improve the efficiency of resource allocation, further promote the rapid development of Hikvision Robot, and thus help maximize the long-term value of shareholders of listed companies. However, the plan to spin off Hikvision Robot's domestic listing is still in the preliminary planning stage.

Hikvision's fluorite hit the science and technology innovation board and aimed at the 100 billion smart home track

Prior to this, the assets of the thermal imaging division were transferred for 800 million yuan to the innovative subsidiary Hikvision Micro Shadow, which was established in 2015 and was responsible for the development and optimization of a full range of thermal imaging products. In addition, the spin-off smart home subsidiary Fluorite Network is independently listed and has been submitted to the Science and Technology Innovation Board to raise 3.7 billion yuan of funds, which is intended to be used to invest in the Fluorite Intelligent Manufacturing Chongqing Base Project, the New Generation Internet of Things Cloud Platform Project, the Smart Home Core Key Technology Research and Development Project and the Fluorite Smart Home Products Industrialization Base Project.

According to the disclosure documents, in the past few years, the revenue of Fluorite Network has shown a rapid development trend, from 1.52 billion yuan in 2018 to 3.08 billion yuan in 2020, with a compound annual growth rate of 41.88%. Yang Jianyong, senior consultant of the Internet of Things, said that "with the improvement of people's quality of life, the living environment is also getting higher and higher, from home security to smart life, in this context, manufacturers around smart home innovation have been strongly developed." And pointed out that the smart home prospects are broad, in 2020, China's smart home equipment shipments exceeded the 200 million unit mark, 2021 is expected to ship 250 million units, this data from IDC. It is expected that the market shipments will be close to 540 million units by 2025.

The promotion of whole house smart solutions in the consumer market is one of the important driving forces for the growth of China's smart home market. However, Fluorite network revenue is the first, from smart home camera revenue accounted for more than 70%, and the trend of rising year by year. In 2018, smart home camera revenue accounted for 63.85%, and by the first half of 2021, the proportion increased to 70.21%. In the author's view, the camera is not only the core business segment of Fluorite, but also the core strategy of Hikvision for C-end consumers. Of course, smart cameras are the most important category in the smart home market.

As one of the just needs of smart home scenarios, security products occupy an important position in the smart home market. According to Statista's data analysis, the market share of home security products in different types of the global smart home market is expected to increase from about 24% in 2020 to about 28% in 2024. It is estimated that by 2024, the global home security product market size is expected to reach more than 10 billion US dollars. For Fluorite, which started with smart cameras, it is at the forefront of the market.

It should also be pointed out that although smart cameras are the first major source of revenue, based on this, it extends to smart home products such as smart door locks, and combines the cloud open platform to access third-party devices to form a smart life solution. At present, the number of device connections on the Fluorite IoT cloud platform has reached the level of 100 million, the number of connected devices is 136 million, the number of registered users is more than 80 million, and the number of daily active users is nearly 12 million.

With the basic management and intelligent analysis capabilities of the Fluorite IoT cloud platform, it continues to develop and expand the smart home product matrix through ecological cooperation, forming a "4+ N" product system, "N" represents the IoT open ecological business, due to the extremely rich category of smart home products, fluorite is difficult to fully cover, and it is difficult to independently create a complete Internet of Things cloud ecology. Seeking to raise 3.7385 billion yuan for listing on the Science and Technology Innovation Board will help improve the overall technical level of the smart home and IoT cloud platform industry, which will help enhance market competitiveness.

At last

As a leading enterprise in the field of global intelligent security, with its core technology advantages, artificial intelligence empowers application scenarios, and digital intelligence integration empowers enterprise digital transformation and smart city construction, which opens up growth space for Hikvision. Revenue in the first three quarters of 2021 was 55.6 billion yuan, an increase of 32% year-on-year, and net profit was 10.97 billion yuan, an increase of 30% over the same period last year. However, the innovative business is the core sector of Hikvision's growth, including smart home, robots and other business sectors with rapid growth, so that the overall revenue remains positive growth. Unfortunately, the fast-growing innovative business will be spun off and spun off.

Yang Jianyong, a contributor to Forbes China and winner of the NetEase 2020 Most Influential Award, is committed to in-depth interpretation of cutting-edge technologies such as the Internet of Things, cloud services and artificial intelligence, and his views and research strategies have been cited by many authoritative media and well-known enterprises.