[年报]海康威视(002415):2021年年度报告（英文版）
原标题:海康威视:2021年年度报告（英文版） th April 16 2022 To Shareholders th th The year 2021 marks the 20 anniversary of Hikvision’s establishment and the 12 anniversary of its listing. Through 20 years of efforts, the Company has accumulated a wealth of successful experience in a number of technological segments, and is now positioning its field of business as the Artificial Intelligence of Things (AIoT). We believe that the company will continue to grow rapidly in the next 10 years with the development of AIoT. Over the past few years, the company has been bearing pressures from reverse globalization and has been making great efforts to offset some of the negative effects, in order to enable its products to serve more customers in the global market. At present, the company has established 66 sales branches and service offices, as well as 3 manufacturing plants and 11 logistics centers in the overseas market, operating business in 155 countries and regions where we have sales and service partners. Dedicated to build ourselves into a global company, Hikvision will continue progressing persistently despite all the difficulties we may encounter. We believe that global economic integration is the best option for all people in the world. Technological innovation is the driving force behind Hikvision’s development, and only through continuous technological innovation can we realize sustainable development. Thanks to the consistent pursuit of technological innovation, Hikvision has achieved impressive results in the past 20 years. The company went public and raised RMB 3.4 billion in May 2010. In the past 12 years since, it has invested a total of RMB 35.4 billion in research and development, accumulated RMB 89.1 billion in net profits attributable to shareholders, and (will have) paid an accumulated dividend of RMB 43.2 billion to shareholders. From 2017 to 2021, Hikvision’s R&D investment accounted for 7.62%, 8.99%, 9.51%, 10.04% and 10.13% out of the total revenue respectively, with the proportion increasing year by year. In the next 10 years, the company will continue to increase its R&D investment. We believe that technological innovation is the only way to better create value for our customers and reward our shareholders. Since 2015, Hikvision has been encouraging internal innovation and intrapreneurship through establishing a co-investment scheme, establishing eight innovative businesses over the years. In 2021, there were five innovative businesses with revenue exceeding RMB one billion, realizing a positive net profit. Among them, EZVIZ Network has submitted the IPO application, and the suggestive announcement on the spin-off of HikRobot for an independent listing has also been disclosed with relevant preparatory work currently underway. We believe that only when we share the profits with our employees can we unite the whole team working towards the same direction, and only by motivating the vitality of employees’ innovation and entrepreneurship can the company continue to thrive. Hikvision has built up a strong customer base and technology accumulation in the field of AIoT. As an effort to better create value for customers and enhance customer satisfaction, we are constantly striving to improve the company’s operational capabilities and efficiency, while persevering in technological innovation. With the improvement of our operational capabilities and efficiency as a long-term goal, we will keep up with the changing times and continue to build, optimize and refine our systems. We believe that there are no gains without pains. In the future, we will pace ourselves to encounter the challenges ahead and accept them as part of the evolution of the company. Being open, transparent, and honest as always, we will make best efforts to resolve uncertainties brought by these challenges. We believe that adversity will make us stronger. Finally, we’d like to extend our sincere thanks to all shareholders for your trust and support to the Company's management team! And express our special thanks to the public shareholders for their trust and support for the management team over the past 12 years! See far, go further! Board of Directors of Hangzhou Hikvision Digital Technology Co., Ltd. April, 2022 Section I Important Notes, Contents and Definitions The Board of Directors, Board of Supervisors, directors, supervisors and senior management guarantee that the information presented in this report is true, accurate and complete without false records, misleading statements or material omissions, and will undertake individual and joint legal liabilities. Chen Zongnian, the Company's legal representative, Jin Yan, the person in charge of the accounting work, and Zhan Junhua, the person in charge of accounting department (accounting supervisor) hereby declare and warrant that the financial statements in this annual report are true, accurate and complete. All directors of the Company have attended the board meeting to review this report. The profit distribution proposal passed upon deliberation at the meeting of the Board of Directors is set out as follows: Board of Directors based on the Company’s current total share capital of 9,433,208,719 shares, the Company proposed to distribute cash dividend of RMB 9 (tax inclusive) per each 10 shares to all shareholders, bonus share and share distribution from capital reserve is nil. Note: This document is a translated version of the Chinese version 2021 Annual Report (“2021年年度报告”), and the published announcements in the Chinese version shall prevail. The complete published Chinese 2021 Annual Report may be obtained at www.cninfo.com.cn. Please read the full annual report and pay particular attention to the following risk factors: 1) Global COVID-19 epidemic risk: The global threat of COVID-19 epidemic is difficult to subside, and epidemic prevention has a direct impact on the economic development. The Company will pay close attention to the changes in the epidemic and respond in a timely manner. If the epidemic causes the domestic and foreign economic or business environment to deteriorate, the adverse impact on the Company's business will increase accordingly. 2) Economic downside risk: The current domestic and foreign economic environment is complex and volatile. The domestic macroeconomic growth has entered a new stage of medium-low growth. If demand recovers slowly and investment growth is sluggish, it will bring adverse impacts on the Company's business development. 3) Geopolitical environment risk: The current global geopolitical uncertainty has greatly increased, and the economic and social impact caused by local wars and confrontations is huge. The Company's operations in the countries and regions where the conflict is located may be adversely affected. 4) Global business risks: The Company operates in more than 150 countries and regions around the world. The potential risks such as the trend of deglobalization, economic fluctuation and debt default around the world are difficult to eliminate, so the Company’s overseas business operations may be adversely affected. 5) Supply chain risks: The global supply system is suffering from a variety of adverse impacts, such as rising commodity prices, restrictions on global production and logistic, and technological competition among major powers. The Company has been making efforts to enhance management for our supply chain and optimize inventory adjustment and control. However, if systemic risks arise in the global supply chain, the Company’s operating capabilities may be affected. 6) Legal and compliance risk: The world's multilateral trading system is facing adverse impacts. The laws and regulations of various regions that need to be complied with for business activities are very complicated. China and overseas countries have stricter data supervision and business compliance requirements. If the Company's legal compliance capabilities cannot keep up with the situation, it will bring adverse impacts on the Company's operations. 7) Risk of exchange rate fluctuation: The Company carries out operations in various countries and regions fluctuations could have impact on foreign exchange exposures arising out of sales, procurement and financing, which could likely affect the profitability level of the Company. 8) Risk of technology upgrade: Technologies such as artificial intelligence (AI), big data, cloud computing, and edge computing are developing rapidly. The speed of technology diffusion is accelerating. If the Company is unable to closely track and adapt to the changes in cutting-edge technologies, or fails to quickly realize business innovation, the risk of uncertainty in the Company's future development will increase. 9) Financial risk caused by the decline of customers’ ability to pay: The enterprises’ financial liquidity is negatively impacted by the macroeconomic downturn. The Company has accumulated a certain amount of cash reserves due to the stable operation in history, and the financing cost is low. If the liquidity risk increases, it will adversely affect the Company’s account receivables. 10) Risk of internal management: The continual expansion of business scale, the continuous increase of new products and new businesses, and the continuous growth in total number of employees lead to a significant rise of internal management complexity, which brings challenges to the Company’s management and higher requirements on the Company management system. The Company’s sustainable development will face certain risks if the management level fails to proportionally address the Company’s business expansion. 11) Risk of cybersecurity: The Company has always attached great importance and taken active measures to enhance cybersecurity performance of our products and systems. However, in the context of Internet applications, there is still a possibility of deliberate attempts, including computer viruses, malicious software, hacker and others to intentionally attack our systems or products, causing cybersecurity issues. 12) Risk of intellectual property (IP) rights: The Company continues to maintain a relatively large scale of R&D investment, and produces considerable technical milestones. At the same time, the Company implements well-organized intellectual property right (IPR) protection measures. However, the risk of intellectual property disputes and the risk of intellectual property rights violations still exist. The above notices might not be all-inclusive of all other potential risks. Please pay attention to potential investment risks. CONTENTS To Shareholders .................................................................................................................................................. 1 Section I Important Notes, Contents and Definitions ...................................................................................... 3 Section II Corporate Profile & Key Financial Data ......................................................................................... 9 Section III Management Discussion and Analysis ......................................................................................... 15 Section IV Corporate Governance ................................................................................................................ 139 Section V Environmental and Social Responsibility .................................................................................... 182 Section VI Significant Events ......................................................................................................................... 183 Section VII Changes in Shares and Information about Shareholders ....................................................... 210 Section VIII Information of Preferred Shares ............................................................................................. 224 Section IX Bonds ............................................................................................................................................. 225 Section X Financial Report ............................................................................................................................ 226 Section XI Documents Available for Reference ........................................................................................... 402
Accounting firm engaged by the Company
Period □ Applicable √ Inapplicable Financial advisor engaged by the Company to perform the duties of continuous supervision during the reporting period □ Applicable √ Inapplicable VI. Key Accounting Data and Financial Indicators Whether the Company performed a retrospective adjustment or restatement of previous accounting data □Yes √No Unit: RMB
The total share capital of the Company as of the previous trading day of the annual report disclosure:
There is no difference in the financial report of net profits and net assets according to the disclosure of International Financial Reporting Standards (IFRS) and China Accounting Standards in the reporting period. 2. Difference in the Financial Report of Net Profits and Net Assets According to the Disclosure of Overseas Accounting Standards and China Accounting Standards □ Applicable √ Inapplicable There is no difference in the financial report of net profits and net assets according to the disclosure of Overseas Accounting Standards and China Accounting Standards in the reporting period. 3. Explanation of the Differences in Accounting Data under Domestic and Overseas Accounting Standards □ Applicable √ Inapplicable VIII. Key Quarterly Financial Indicators Unit：RMB
what disclosed in the quarterly report, half-year report □ Yes √ No IX. Items and Amounts of Non-recurring Gains and Losses √ Applicable □ Inapplicable Unit：RMB
Details of other gain/loss items that meet the definition of non-recurring gains and losses: □ Applicable √ Inapplicable The Company did not have other gain/ loss items that meet the definition of non-recurring gains and losses. Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the recurring Gains and Losses> as a recurrent gain/loss item □ Applicable √ Inapplicable The Company did not classify an item as a non-recurring gain/loss according to the Losses> into a recurrent gain/loss item. Section III Management Discussion and Analysis I. The Industry Situation and Main Business of the Company during the Reporting Period 1. Business Overview 1 After more than 20 years of development, the Internet of Things (IoT ) is integrated with AI (Artificial Intelligence) to form the AIoT. When devices are able to perceive changes, connect with each other, and interact with people and things, they could bring about changes like never before. And those changes are happening right now. AIoT is a fundamental capability that provides the possibility of connection and interaction between people and things as well as between things. This possibility is not exclusive to any industry, but there are pioneer, typical industrial scenarios in AIoT, such as intelligent security, industrial IoT, smart home, etc. We believe that AIoT will set off a wave of technological innovation that will sweep across many industries. And armed with technology accumulations in multiple fields and years of deep engagement in the industrial market, we are confident that Hikvision will be able to seize the opportunities brought by the rapid development of AIoT. Through constant expansion and iteration of the industrial AIoT application, Hikvision continues to improve the business organization for public services, enterprises, and SMEs, and has successively developed innovative businesses such as EZVIZ Network, HikRobot, HikMicro, HikAuto, HikSemi, HikFire, Rayin and HikImaging, with a focus on the implementation of businesses for large-scale scenarios. Generally speaking, the Internet of Things is divided into three layers, namely the perception layer, the network transmission layer and the application layer. Starting with video technology and driven by technological innovation, Hikvision continues to expand and deploy in such fields as visible light, millimeter wave, infrared rays and X-rays etc., while integrating sound, temperature, humidity, pressure, magnetic and other perception means to create a comprehensive, multi-dimensional perception technology platform to provide technical support for AIoT on the perception layer. The Company focuses on the external conditions of network transmission as it is not a major area of business for Hikvision. In terms of the application layer, the three business groups (3 BGs) and innovative businesses of Hikvision are working together with industrial partners to explore and promote the AIoT applications. As the application scenarios of AIoT are highly fragmented, products and solutions will continue to be defined by scenarios as we work to meet user demands for a long time in the future. A rich and comprehensive set of hardware and software products are needed to support the scenario-based demands of AIoT. In the future, Hikvision will stick to its product R&D approach combining generic baselines with customizations, identify the common demands of various segments and fields in the process of expanding the market, and pushes further the modularization of products and the optimized combination of modules, thereby providing personalized, customized and highly converged IoT solutions in an efficient and cost-effective manner. In the past two decades, Hikvision has witnessed and participated in the development and expansion of the security industry. Intelligent security is a major battleground for the implementation of AIoT. In the future, Hikvision is committed to serving various industries through its cutting-edge technologies of machine perception, artificial intelligence, and big data, leading the future of AIoT：Through comprehensive machine perception technologies, we aim to help people better connect with the world around them; With a wealth of intelligent products, we strive to identify and satisfy diverse demands by delivering intelligence at your fingertips; Through innovative AIoT applications, we are dedicated to empowering every individual to enjoy a better future by building an intelligent world that is more convenient, efficient and secure. 2. Core Business Capabilities Hikvision, focusing on technological innovation in IoT perception, AI and big data, offers serialized AIoT products integrating software and hardware, cloud and edges, IoT and information network, and big data and AI, with the whole-process service capability for building complex large-scale AIoT systems. Over the past 20 years, Hikvision has expanded its coverage of perceptive technology from visible light to millimeter wave, infrared rays, X-rays and sound wave etc., widened its product range from IoT perceptive devices to AIoT products, IT infrastructure products, platform service products, data service products and application service products which are fully integrated with AI and big data technologies. As a result, the Company has extended beyond comprehensive security to such fields as smart home, digital enterprises, intelligent industries and smart cities. As a product company equipped with system capabilities, Hikvision builds an open and cooperative ecosystem with business covering more than 150 countries and regions around the world. Hikvision’s business can be summarized into three types of supporting technologies, five categories of software and hardware products, four system capabilities, two types of business organizations and two marketing systems. Among them, the three supporting technologies include IoT perception technologies, AI technologies and big data technologies; the five categories of software and hardware include IoT perception products, IT infrastructure products, platform service products, data service products and application service products; the four system capabilities include system design and development, system engineering implementation, system operation and maintenance management and system operation services; the two types of business organizations cover three business groups (public business groups-PBG, enterprise business groups-EBG and SME business groups-SMBG) and eight innovative businesses (smart home, mobile robots and machine vision, infrared thermal imaging, auto electronics, intelligent storage, intelligent fire protection and control, intelligent security check, and intelligent medical services) ; the two major marketing systems refer to the domestic business marketing system and the international business marketing system. In the field of AIoT, Hikvision has been focusing on technological innovation, enriching product systems and building system capability for many years, with its technological capabilities, product capabilities and system capabilities complementing each other and growing together. 2.1 Integration of Software and Hardware: Constant Mutual Promotion between Software and Hardware Product Systems In recent years, Hikvision has unified the software development system, standardized the hardware development process, provided a unified embedded software platform for various equipment, and unified interface specifications for networking accessing and operation and maintenance management of various equipment, ushering the development of software and hardware products into a benign iterative cycle. 2.1.1 Unified Equipment Software Platform Various hardware product types, diversified product operating environments, and different product operation and maintenance management ways have posed major challenges to the development of the IoT business. In this context, Hikvision has launched HEOP (Hikvision Embedded Open Platform) to support containerized independent deployment and flexible scheduling of algorithms or components for the sustainable development of AIoT. Hikvision’s new products are all developed based on this platform. On this unified embedded software platform, all AIoT equipment of Hikvision will feature the same software foundation to avoid the differences between various hardware development and operating environments, and support function changes of hardware products through software upgrades to improve development efficiency significantly. In addition, partners can realize iterative development of intelligent application functions of AIoT equipment based on HEOP efficiently, and work with Hikvision to create value for customers. 2.1.2 Unified Software Support for Equipment Hikvision provides various AIoT equipment with unified access, networking, operation and maintenance support capabilities through a unified intelligent perception networking platform, making the large-scale AIoT a reality. The unified device access framework supports the connection of various video equipment, multi-dimensional sensing equipment, and intelligent equipment. With open interfaces and protocols, various AIoT equipment can access Hikvision’s software platforms. And the development of equipment network access drivers is relatively separated from application software, that is, we can set up the platform first and then develop device drivers. Networking is possible in a large scale to support a variety of IoT perception equipment in line with national standards and multi-industry standard specifications. And the integrated operation and maintenance service platform （未完）  |