(Yicai) Aug. 19 -- Shares in Hangzhou Hikvision Digital Technology tumbled today after the Chinese surveillance equipment maker recorded a dive in both profit and revenue in the first six months from a year earlier mainly due to pressure on its government-backed customers.

Hikvision’s share price [SHE:002415] was trading down 3.1 percent at CNY26.68 (USD3.73) as of 1 p.m.

Hikvision posted a 5.1 percent drop in net profit in the six months ended June 30 to CNY5 billion (USD700 million), while revenue plunged 9.6 percent to CNY41.2 billion (USD5.76 billion), according to the latest financial report released by the Hangzhou-based company on Aug. 17.

Revenue from its government-serving Public Business Group sank 9.2 percent over the period to CNY5.7 billion (USD798 million), while that of its Small & Medium Business Group, which caters to SMEs, climbed 0.6 percent to CNY5.8 billion.

Businesses that rely on local government funding faced significant challenges in the first half, Huang Fanghong, senior vice president of Hikvision, said at the earnings call.

Hikvision is very confident about its scenario-based digital businesses, which it has been promoting in the last three years, said Huang.

Hikvision's Enterprise Business Group was the strongest performer of its domestic businesses, with revenue jumping 7 percent to CNY7.5 billion (USD1 billion).

Hikvision, which started out as a video surveillance company, is seeking to expand its overseas footprint by establishing research and development centers and factories abroad. As of last year, the company had 80 international branches including in China's Hong Kong, Macau and Taiwan.

Overseas revenue surged 15.4 percent over the period, to CNY11.4 billion (USD1.6 billion). This is a big improvement on last year’s growth rate of 10.2 percent.

Revenue from innovative businesses shot up 26.1 percent in the first half from the year before to CNY10.3 billion (USD1.4 billion), accounting for a quarter of total revenue.

Hikvision is actively promoting the listing of its subsidiary, Hikrobot, on the growth enterprise market, it said.

Editor: Kim Taylor