Brief Introduction

Hillstone Networks is a leading technology innovator in China's network security industry. Hillstone Networks' enterprise security and risk management solutions seriesinclude perimeter security, cloud security, data security and intranet security, providing a portfolio of services that is comprehensive, intelligent and non-disruptive. Hillstone Networks has delivered innovative, proven and effective network security solutions to over 17,000 customers. These include government agencies, financial institutions, telecommunications agencies, internet service providers, education and healthcare institutions. Hillstone Networks has several research and development centers around Suzhou, Beijing and Silicon Valley, USA. Hillstone Networks' customers range from more than 50 countries and regions including China, America, Europe, Southeast Asia and Middle East.

After decades of innovation and technology accumulation, Hillstone Networks has independently developed 17 core technologies, including Multi-processor Distributed Parallel Security Processing, High-end Hardware System Design, Cloud Security Micro-segmentation, Twin Mode Firewall, Network Traffic Analytics,etcetera. Hillstone Networks and its subsidiaries have 36 domestic and foreign patents issued, including 34 invention patents, 2 utility patents. In addition,Hillstone Networks' several patents are under review.

According to International Data Corporation (IDC), Hillstone Networks ranked 4th in China's Unified Threat Management (UTM) market in 2018. In addition, Hillstone Networks has been recognized by Gartner five years in a row in both Magic Quadrant for EnterpriseNetwork Firewalls field, and Magic Quadrant for Unified Threat Management (UTM) field. Hillstone Networksalso has been included in Gartner's Magic Quadrant for Intrusion Detection and Prevention Systems (IDPS) for two consecutive years. In 2018, Gartner named Hillstone Networks as “global vendor” of enterprise network firewalls in the Asia-Pacific region. In general, Hillstone Networks is recognized as a leader in the domestic network security market with outstanding competitive advantages.

Company Overview

Full name Hillstone Networks Co., Ltd.
Abbreviations Hillstone Networks
Code 688030
Founded 2011-07-20
Listing 2019-09-30
Domicile Suzhou, Jiangsu Province, China
STAR Theme New Generation IT
CSRCSector Information transmission, software and IT
Has weighted voting rights structure? No



  2018 2017 2016
Earnings Per Share 0.51 N/A N/A
R&D expenditure as a % of operating revenue 27.83% 30.56% 37.07%
Operating Revenue 562.28 463.06 326.52
Net Income 68.91 60.05 1.18

Income Statement (Unit: RMB mn)

  2018 2017 2016
Operating Revenue 562.28 463.06 326.52
Operating Costs 133.25 104.05 81.17
Operating Income 79.01 61.54 -26.33
Pretax Income 78.79 61.37 1.56
Income Tax 9.88 1.32 0.38
Net Income 68.91 60.05 1.18

Balance Sheet(Unit: RMB mn)

  2018 2017 2016
Current Assets-Total 700.48 374.10 304.21
Non-current Assets-Total 46.29 28.19 18.79
Total Assets 746.77 402.29 323.00
Current Liabilities-Total 312.92 174.57 108.25
Non-current Liabilities-Total 17.52 10.13 8.03
Total Liabilities 330.44 184.71 116.28
Stockholder's Equity
Share Capital 531.04 392.84 402.74
Retained Profits -114.70 -175.26 -196.02
Total Owners' Equity 416.34 217.58 206.72

Cash Flow Statement (Unit: RMB mn)

  2018 2017 2016
Net Cash Flows-Operating 9.18 -6.94 19.77
Net Cash Flows-Investing 34.22 -39.95 -18.32
Net Cash Flows-Financing 116.14 -9.44 -3.43

Top 10 Shareholders

Name No. of Shares Held (mn) % of Shares Held
Alpha Achieve High Tech Limited 30.52 16.94%
Tian Tao 13.40 7.44%
SIP Oriza ChongYuan M&A Fund Partnership (Limited Partnership) 13.15 7.30%
CDB Kai Yuan Private Equity FOF, L.P. 11.86 6.58%
宜兴光控投资有限公司 10.96 6.08%
Beijing Qihu Technology Company Limited 5.41 3.00%
LUO DONGPING 4.83 2.68%
CICC-China Guangfa Bank-CICC Fengzhong No.8 Collective Investment Scheme for the issuer’s senior officers and key employees investing in strategic placement of stocks listing on the Science and Technology Innovation Board of Shanghai Stock Exchange 4.51 2.50%
Jian Tong 3.71 2.06%
Ningbo Meishan Bonded Area Hillstone Xingjian Investment and Management Partnership (Limited Partnership) 3.69 2.05%
24 Sep 2019

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