(Yicai Global) Aug. 11 -- Ezviz Network is nearing its initial public offering as the intelligent home security subsidiary of China’s Hikvision Digital Technology is planning to use some of its listing proceeds to build a CNY1.9 billion (USD285.6 million) smart factory in southwestern China.

The funds will consist of Ezviz's own capital, bank loans, and proceeds from the IPO, the Hangzhou-based parent said in a statement yesterday. Hikvision first disclosed its plan to spin off Ezviz for a listing on Shanghai's Star Market in its 2019 annual report.

The 380,400-square meter plant in Chongqing will be constructed in 48 months. It will enhance the surveillance camera maker's production capacity, as well as improve its profitability and competitiveness, the statement added.

Business is booming. Ezviz boosted its net profit by 48 percent to CNY334 million (USD51.5 million) last year from 2019. Its revenue climbed 29 percent to CNY3.1 billion (USD477.9 million).

Founded in 2015, Ezviz makes smart home products based on the Internet of Things, including vacuum cleaners. Hikvision currently holds a 60 percent stake in the company and expects to maintain a controlling position after the spin-off.

Established in 2001, Hikvision is the largest supplier of electronic security equipment in China.

Hikvision's share price [SHE: 002415] was 0.3 percent up at CNY59.98 (USD9.20) in the afternoon.

Editor: Emmi Laine, Xiao Yi