[年报]海康威视(002415):2022年年度报告（英文版）
原标题:海康威视:2022年年度报告（英文版） April 15, 2023 To Shareholders The year 2022 was the twenty-first year since the establishment of the Company. It also witnessed the first negative profit growth since our creation. The Company is experiencing many new challenges in a complex and changing environment. However, challenges are inevitable in the growth and development of businesses. Some challenges have made the Company more confident and capable of addressing future challenges. Technology is the first productive force. Recognizing the growing impact of technological advancement on all aspects of our life, the Company embraces technological changes and follows technological development trends. AIoT is a field the Company will continue to develop for a long time as it covers many industry scenarios, technologies and a wide range of products from detectors to system solutions. Today, customers focus on not only the type of objects, but also their characteristics, status or composition, and this change of consumer demand poses challenges and opportunities for us. The development of AI technology has provided us with greater capability and easier access to more data of objects, enabling us to explore wider application of data with AIoT. Believing that success will come when conditions are ripe, the Company will continue to invest firmly in perception, AI, big data and cloud computing technologies. We look forward to more breakthroughs in global technology, and will strive to grasp the business opportunities that each technological change presents. Digital transformation is a long-term process that requires continuous improvement. We will continue to optimize our operational model or process by adopting digital technologies in various business scenarios of the Company and our partners. Digital transformation is crucial for our growth and the development of new market opportunities, but it cannot be done overnight. We will start with little practical work and steadily forges ahead toward our goal. The past five years has been challenging for many businesses due to the rise of international protectionism and the trend of counter-globalization, and we are no exception. However, we have also seen some growth. There is still a tremendous market out there and we will adapt to the circumstances, further strengthen our marketing and service systems, and improve our supply chain based on market trends and business development needs. The successful IPO of EZVIZ Network marks a milestone in the Company's internal entrepreneurial innovation and an achievement in our path to maintaining entrepreneurial and innovative vitality. Being customer-centric and creating value for customers are always the Company's original mission and core values, regardless of the business model. Whether in good or bad times, we remain open, transparent and honest. At last, I would like to express my sincere gratitude to all shareholders for your trust in the management team! See far, go further! Board of Directors of Hangzhou Hikvision Digital Technology Co., Ltd. April, 2023 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 9,363,932,789 shares, the Company proposed to distribute cash dividend of RMB7 (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 2022 Annual Report ("2022年年度报告"), and the published announcements in the Chinese version shall prevail. The complete published Chinese 2022 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) Geopolitical environment risk: The current global geopolitical uncertainty has greatly increased, and the operating environment in certain regions has deteriorated. The Company will adjust its marketing resources based on business opportunities, but if the geopolitical environment get worse, the Company's operations in certain countries and regions may be adversely affected. 2) Global economic downside risk: The economic growth of some overseas countries slows down, the potential risks such as economic fluctuation and debt default in various regions are difficult to eliminate. At the same time, the domestic economy is switching to a new development mode and its pace of recovery needs to be further observed. The Company disperses the operation risk of a single region with a wide business layout. But the Company's business will also be impacted if there is a global economic recession. 3) Supply chain risk: The global supply system is being undermined by politics. The Company has been making efforts to build a diversified 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 4) Technology upgrading risk: AI, big data, cloud computing, edge computing and other technologies develop rapidly, and the iteration speed of science and technology application is fast. If the update and change of cutting-edge technology cannot be closely tracked and the innovative development of business cannot be realized quickly, the uncertainty of the Company's future development will increase. 5) 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. The Company constantly strengthens the construction of legal compliance system since 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. 6) Risk of exchange rate fluctuation: The Company carries out operations in various countries and regions, mainly settled in non-RMB currency. Exchange rate 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. 7) 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 its stable business operation, and the financing cost is low. If the overall liquidity risk of the market increases, it will adversely affect the Company’s account receivables due to the payment collection speed of the Company may slow down. 8) 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. The Company’s sustainable development will face certain risks if the management level fails to proportionally address the Company’s business expansion. 9) Risk of cybersecurity: The Company has always attached great importance and taken active measures to enhance cybersecurity performance of our products and systems. But 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. 10) 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 ......................................................................................... 14 Section IV Corporate Governance ................................................................................................................ 125 Section V Environmental and Social Responsibility .................................................................................... 163 Section VI Significant Events ......................................................................................................................... 164 Section VII Changes in Shares and Information about Shareholders ....................................................... 191 Section VIII Information of Preferred Shares ............................................................................................. 207 Section IX Bonds ............................................................................................................................................. 208 Section X Financial Report ............................................................................................................................ 209 Section XI Documents Available for Reference ........................................................................................... 368
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
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.
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 In 2022, Hikvision put its AIoT strategy into full swing. The Company is committed to serving a wide range of industries through IoT, perception, AI, and big data technologies, leading the future of AIoT. Through comprehensive perception technologies, we aim to help people better connect with the world around them, building the foundation of an intelligent world. 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. AIoT is a fundamental capability that provides the possibility of connection and interaction between people and things as well as between things, but the support of perception technology is needed to realize this possibility. As things lack the ability of active or passive perception, the comprehensive development of perception technology provides everything with the possibility of "perceiving" and "being perceived". Currently, perception technology is shifting its focus from familiar perception models to unfamiliar areas where direct perception is impossible, is growing from single perception to multi-dimensional perception fusion, and is evolving from non-intelligent to intelligent perception, thus transforming things into intelligent things. Hikvision's perception technology covers long waves from visible light to near-infrared, mid-infrared, far-infrared and millimeter waves, short electromagnetic waves such as ultraviolet light and X-ray, as well as short mechanical waves from sound to ultrasonic waves. Furthermore, the Company is expanding physical sensing technologies such as temperature, humidity, pressure and magnetic force, building a technical foundation for comprehensive perception. We deliver perception, multi-dimensional perception and intelligent perception to multiple industries and fields through products owing to continuous R&D and accumulation of perception technologies, so that perception and interaction between people and things and between things becomes possible, leading to the development of more applications. The development of AIoT is supported by the development of perception technology and relies on the development of AI and big data. AI and IoT are a good match as they are closely connected and complementary. paves the way for the application of IoT. The most basic application of AIoT may be the use of data from IoT devices to trigger simple alarms. For example, a thermal imaging camera sends an alarm for manual inspection after sensing an excessive temperature of the device, while in a more complex IoT system, a large number of sensing devices monitor multi-dimensional information in the production process. AI algorithms learn through massive IoT data, distinguish between signals and noise based on user needs, and continue to optimize and iterate so that devices and systems are able to make decisions, and take actions. This makes AI the soul of IoT. Hikvision has allocated substantial investment and resources to the construction of basic arithmetic power and big models, and the relevant capabilities have found applications in not only hardware and software products, but also user-oriented algorithm training including Hikvision AI Open Platform. Future breakthroughs in pre-trained large models and other intelligent technologies will result in greater value of AI. The development of AIoT represents integrated development of a huge technology cluster, ranging from image technology (AI-ISP, image enhancement, multi-camera stitching, multi-spectral fusion), optical technology (lens, fill-in light, focus and zoom, anti-shake, Fresnel optics, etc.), environmental adaptation technology (high- and low- temperature, rain, snow and dust-resistant, explosion-proof, heat dissipation, etc.), passive detection technology (passive infrared, vibration sensing, glass breakage detection, tilt/displacement detection, etc.) to network connection, data aggregation, storage and calculation technologies, and to display, control, interaction and other application technologies. These technologies have collectively evolved from simple to engineered forms. With more than 20 years of product R&D and manufacturing, Hikvision has initially built the R&D foundation of common technologies from hardware, process materials, embedded software to system-level software development, big data and network security. The Company facilitates innovative R&D of products including detectors, modules, devices and systems through the combination and integration of common technologies and scenario-based application technologies. The development of AIoT will remain driven by the individual needs of users for quite a long time. As AIoT applications are scenario-driven ones, scenario-defined products and solutions will be the dominant business format. However, the specific use of AIoT applications varies with industries due to different characteristics and business operation models of each industry. Even different users in the same industry may have their unique needs. Hikvision has more than 30,000 hardware products, which are the result of expansion of previous business scenarios and the foundation for future development of more applications. The Company will continue to promote the "baseline" + "customization" model, and enrich our product matrix, maintaining a balance between products and application needs. Combining multi-dimensional perception with AI and big data, we have created tens of thousands of products from detectors to system solutions that cover more than 300 scenarios across over 70 sub-sectors in 10 industries. These technologies, products and consumer needs promote one another through continuous changes, updates and iterations, becoming a competitive driver of Hikvision's technological innovation. The future of AIoT is the integration of user needs with AIoT technologies, devices, and systems. Their growing ease of use and declining cost will make everything perceivable and linkable. Just as the World Wide Web or Internet, IoT will not be mentioned anymore in the future because it will be the basic state of things, and people will live in a new era created by AIoT. 2. Business Structure 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. 3. Product Family 3.1 Hardware Product Family: Edge Node Comprehensive Perception + Edge Domain Scenario Intelligence + Central Intelligent Storage and Computing Hikvision has been expanding its means of perception, enriching scenario-based product options, and improving full system processing capability, with flourish development in its multiple-echelon products such as edge nodes, edge domains and cloud-center devices. 3.1.1 Edge Node Products: Comprehensive Intelligent Perception and Enriched Product Mix Hikvision has many types and groups of edge nodes products, continues to complement the product family, integrates multi-dimensional perception means, and optimizes product design considering scenario-based needs, providing a solid ground for intelligent applications of cloud-edge fusion, IoT-information network fusion, and big data-AI fusion. 1) Front-end Cameras Cameras have shifted from conventional video surveillance terminals to the most important AIoT terminals in the Internet of Everything. Focusing on visual technology, Hikvision enhances multi-dimensional perception capabilities, continuously expands application scenarios, and achieved the digitization of everything with comprehensive perception means to build the infrastructure of intelligent applications. Concentrating on vision to improve image application experience Hikvision stays focus on the research of optical imaging area, with an aim to address such problems as the limited view of traditional cameras, unclear imaging at night, and limited intelligent applications, continuously strengthening the product concept of ultra-HD, full-color and panoramic details, enriching product mix, and upgrading intelligent applications. In order to expand the all-weather field of view and reduce the safety hazards in the monitoring blind spot, the Company created the technology of multispectral fusion panoramic stitching to achieve 190°low distortion and 20:9 wide format, making the color bending more natural. （未完）  |