Hikvision cash out 10 billion

For domestic security leader Hikvision (002415, SZ), the end of 2019 is undoubtedly a “eventful autumn”. Recently, two directors of the company were put on file by the CSRC for investigation after they were listed in the “entity list” by the US Department of Commerce in October.
On the evening of November 13, Hikvision announced that Hu Yangzhong and Gong Hongjia, directors of the company, received the notice of investigation from the CSRC on November 11, and two directors were put on file for investigation on suspicion of illegal information disclosure. As for the reason why the two were investigated, Haikangwei replied to the reporter that the investigation is aimed at the individual directors and the CSRC is still in the process of investigation. The specific situation needs to be further understood.
According to the announcement of Zhongyuan Xiehe (600645, SH), the event under investigation is related to the equity incentive plan designed and implemented by the parties for the core management of Hikvision. On November 14, Hikvision shares closed at 33.37 yuan / share, down 2.46%.
The reporter of “daily economic news” noted that the above two directors occupy an important position in the development of Hikvision. Both of them are the founders of the company, of which Hu Yangzhong has been the general manager of the listed company, while Gong Hongjia was the first important investor of the company and the second largest shareholder so far. In addition, both of them are on the list of China’s 400 richest people released by Forbes in 2019, with their wealth exceeding 10 billion yuan.
Hikvision was born in public institutions
Mr. Hu Yangzhong, Mr. Gong Hongjia, the company’s directors, and the company (if necessary) will actively cooperate with the CSRC’s investigation, the company said in the announcement. According to the investigation progress, the company will perform information disclosure obligations in strict accordance with regulatory requirements.
Hu Yangzhong and Gong Hongjia were caught in the whirlpool of public opinion because they were put on file by the CSRC for investigation. The reporter of “daily economic news” noted that the two people have a deep relationship with the 52nd Research Institute of China Electronics Technology Corporation (hereinafter referred to as “52nd Institute”), the former shareholder of Hikvision and Hikvision.
Hikvision was born in a public institution. In 2001, as one of the important promoters, 52 Institute established Hikvision. Before the listing of Hikvision, 52 Institute held 48.45% of the shares of Hikvision, and it has been the largest shareholder of the company since the listing of Hikvision.
Until the beginning of 2014, 52 Institute transferred 40.42% of its shares in Hikvision to Hikvision group (at that time, Haikang group and 52 Institute were both wholly-owned subsidiaries of China Electronic Technology Group). Since then, 52 institutes have “decoupled” from Hikvision.
From 1989 to 2001, that is to say, Hu Yangzhong was 24 to 36 years old. He has been working in 52 institutes and has successively served as engineer and deputy chief engineer of 52 institutes. After the establishment of Hikvision, that is, since 2002, Hu Yangzhong has been the general manager and director of Hikvision, and he can be called the founder of Hikvision in the process of entrepreneurship.
According to the evaluation of security & automation, a global authoritative security media magazine, in 2009 before its listing, Hikvision ranked 12th in the global security enterprises, and now Hikvision has ranked first. In 2010, Hikvision achieved only 3.6 billion yuan of operating revenue, which has increased to 49.8 billion yuan by 2018.
In fact, the rapid development of Hikvision after its listing has nothing to do with Hu Yangzhong’s business ability.
In 2011, Hu Yangzhong said in an interview with the media, “when Hikvision was founded, it was just in time for the rapid development of the security industry. The starting point of the company was high, and it also seized several key opportunities, without making too many mistakes.”
At the beginning of the 21st century, there has been a significant technological change in the video industry, that is, the transformation from VCR (tape video) to DVR (digital video). Hikvision seized the opportunity to launch board card and DVR products as early as 2002.
In 2003, Hikvision independently developed its own intellectual property software based on H.264 algorithm standard, and obtained corresponding software copyright. This also established the leading position of Hikvision in the domestic board card market. In 2010, Hikvision developed a video integrated platform product, which is a system level product integrating video coding, decoding, matrix switching, image segmentation and display control. This product solves the problem of large data volume switching, and its bus bandwidth reaches 40Gb / s.
Since then, Hikvision also has intelligent products, AI cloud architecture products, material and information fusion data platform and so on.
The salary level of general manager is relatively low
With the growth of Hikvision, Hu’s wealth is gradually accumulating, and he is listed on the Forbes rich list. Hu Yangzhong, 54, ranked 265 on the 2019 China 400 rich list released by Forbes, with a wealth of 10.11 billion yuan.
However, at the beginning of the listing of Hikvision, Hu Yangzhong did not appear in the list of the top ten shareholders of Hikvision, and also appeared unknown in the capital market. It wasn’t until the 2016 quarterly report of Hikvision that Hu Yangzhong appeared in the top ten shareholders list, ranking ninth at that time. According to the announcement of Hikvision, in recent years, Hu Yangzhong has been increasing his stake in Hikvision, in sharp contrast to Gong Hongjia, who has been reducing his stake.
The reporter inquired the relevant information and found that in recent years, Hu Yangzhong has frequently acted in the capital market. According to the data from Dongfang wealth, in addition to the holding of Hikvision, the listed company that Hu Yangzhong has ranked among the top ten shareholders since 2017 is ruimaotong (600180, SH)