Brief Introduction

Hillstone Networks is a leading technology innovator in China's network security industry. Hillstone Networks' enterprise security and risk management solutions series include 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 20,000 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 21 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 46 domestic and foreign patents issued, including 44 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 2020. In addition, Hillstone Networks has been recognized by Gartner 7 years in a row in its Magic Quadrant for Network Firewalls, and included as representative vendor in Market Guide for Network Detection and Response, Market Guide for Intrusion Detection and Prevention Systems, Market Guide for Virtual Private Networks, and Gartner Market Guide for Cloud Workload Protection Platforms. In 2018 and 2019, 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
CSRC Sector Information transmission, software and IT
Has weighted voting rights structure? No



  2020 2019 2018
Earnings Per Share 0.33 0.62 0.51
R&D expenditure as a % of operating revenue 29.26% 27.68% 27.83%
Operating Revenue 725.39 674.57 562.28
Net Income 60.17 91.05 68.91

Income Statement (Unit: RMB mn)

  2020 2019 2018
Operating Revenue 725.39 674.57 562.28
Operating Costs 224.35 161.92 133.25
Operating Income 51.03 94.73 79.01
Pretax Income 49.76 94.53 78.79
Income Tax -10.42 3.49 9.88
Net Income 60.17 91.05 68.91

Balance Sheet(Unit: RMB mn)

  2020 2019 2018
Current Assets-Total 1,493.82 1,570.67 700.48
Non-current Assets-Total 300.16 54.26 46.29
Total Assets 1,793.98 1,624.93 746.77
Current Liabilities-Total 351.50 223.05 312.92
Non-current Liabilities-Total 17.12 22.94 17.52
Total Liabilities 368.62 246.00 330.44
Stockholder's Equity
Share Capital 1,410.97 1,402.67 531.04
Retained Profits 14.46 -23.74 -114.70
Minority Interests -0.06 N/A N/A
Total Owners' Equity 1,425.36 1,378.93 416.34

Cash Flow Statement (Unit: RMB mn)

  2020 2019 2018
Net Cash Flows-Operating 2.72 15.80 9.18
Net Cash Flows-Investing -279.63 -3.68 34.22
Net Cash Flows-Financing -27.26 843.14 116.14

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%
Beijing Hongteng Intelligence Technology Co., Ltd. 12.60 6.99%
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%
Industrial and Commercial Bank of China Co., Ltd. - Wanjia independent innovation hybrid securities investment fund 5.32 2.95%
LUO DONGPING 4.83 2.68%
Bian Wei 4.30 2.39%
Note: The top ten shareholders as of March 31, 2021

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