[中报]海康威视(002415):2023年半年度报告（英文版）
原标题:海康威视:2023年半年度报告（英文版） August 19, 2023 Section I Important Notes, Contents and Definitions The Board of Directors, Board of Supervisors, directors, supervisors and senior management of Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as the "Company") hereby guarantee that the information presented in this report shall be together be wholly liable for the truthfulness, accuracy and completeness of its contents and free of any 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 half year report are authentic, accurate and complete. All directors of the Company have attended the board meeting to review this report. The half year proposal of profit distribution or share distribution from capital reserve passed upon deliberation at the meeting of the Board of Directors (not applicable): The Company will not distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve during the current reporting period. Note: This document is a translated version of the Chinese version 2023 Half Year Report (“2023年半年度报告”), and the published announcements in the Chinese version shall prevail. The complete published Chinese 2023 Half Year Report may be obtained at www.cninfo.com.cn. Please read the full half year 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 Section I Important Notes, Contents and Definitions ...................................................................................... 1 Section II Corporate Profile & Key Financial Data ......................................................................................... 7 Section III Management Discussion and Analysis ......................................................................................... 11 Section IV Corporate Governance .................................................................................................................. 29 Section V Environmental and Social Responsibility ...................................................................................... 31 Section VI Significant Events ........................................................................................................................... 32 Section VII Changes in Shares and Information about Shareholders ......................................................... 48 Section VIII Information of Preferred Shares ............................................................................................... 61 Section IX Bonds ............................................................................................................................................... 62 Section X Financial Report .............................................................................................................................. 63 Section XI Documents Available for Reference ........................................................................................... 199
1. Company's contact information Whether there is any change in the Company's registered address, office address, zip code, company website or company email address during the reporting period. □Applicable √ Inapplicable There is no change in the Company's registered address, office address, zip code, company website or company email address during the reporting period. Please refer to 2022 Annual Report for details. 2. Information disclosure and place of the report Whether there is alteration in information disclosure and place of the report during the current reporting period. □ Applicable √ Inapplicable
The Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for Business Enterprises (the "Interpretation No. 16") on November 30, 2022. The scope of the initial recognition exemption for deferred income tax in the Accounting Standards for Business Enterprises No. 18-Income Tax was revised. Making it clear that the
Financial Reporting 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 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 VI. Items and amounts of non-recurring gains and losses √ Applicable □ Inapplicable Unit：RMB
aforementioned note as a recurrent gain/loss item. □ Applicable √ Inapplicable In the reporting period, the Company did not classify an item as a non-recurring gain/loss according to the definition in the I. The principal business of the Company during the reporting period There was no significant change for the principal business of the Company during the current reporting period. Please refer to 2022 Annual Report for details. II. Core competitiveness analysis There was no significant change in the Company's core competitiveness during the current reporting period. For details, Please refer to 2022 Annual Report. III. Core business analysis Whether consistent with the Company's core business disclosure during the current reporting period √Yes □ No In the first half year of 2023, the global economy fluctuated continuously and the trading environment changed constantly, bringing continuous challenges to the Company's operation. The domestic economy and the market demand is still gradually recovering. Hikvision maintains its strength in a complex and changeable environment, adhere to the business philosophy of "professionalism, honesty, and integrity" and responded to the uncertainties in a proactive and prudent manner. To promote robust development, the Company has firmed its confidence and has always focused on the growth of its own capabilities. During the reporting period, the Company achieved revenue of RMB37.57 billion, with year over year growth of 0.84%; the net profits attributable to shareholders of the Company was RMB5.34 billion, a decrease of 7.31% over the same period of the previous year. (1) Maintain inputs in R&D and build differentiated advantages During the reporting period, the Company focused on the main business channel, guided by strategy, continuously strengthened its technical reserves, and consolidated its overall strength and foundation for long-term sustainable development. In the first half year of 2023, the Company invested RMB5.29 billion in R&D, with year over year growth of 13.06%. The Company will continue to maintain investment in R&D, maintain its ability advantages in technology productization and product commercialization. The Company will also continue to build and enhance its differentiation advantages, and maintain its leading position in products and solutions, so as to promote the Company's steady development in the field of AIoT. (2) Make effective growth and optimize resource investment During the reporting period, the domestic economy gradually recovered. The Company made great efforts to consolidate its business foundation, pay attention to the quality of revenue and strive for effective growth. To well adjust to the economic development and geopolitical environment in different regions of overseas markets, the Company timely adjusted its resources and optimized its business layout to ensure the steady progress of its business. (3) Optimize and improve internal management to improve operational efficiency During the reporting period, the Company continued to promote business process reform, promote the integration and mutual improvement of organizational systems, activate the innovation ability of the organization, orderly promote various changes of the organization and talents, and improve the ability and efficiency of the organization. The Company also continue to improve the construction of the compliance system, effectively control risks and adhere to compliance operations. (4) Rapidly develop innovative businesses and make development more resilient During the reporting period, the revenue of innovative businesses reached RMB8.19 billion, with year over year growth of 16.85%, accounting for 21.80% of the total revenue. The good development of innovative business has become a strong engine for the long-term sustainable development of the company. As the first subsidiary of Hikvision to be successfully spin-off and listed, EZVIZ was listed on Shanghai Stock Exchange's Science and Technology Innovation Board on December 28, 2022. HikRobot's spin-off and listing plan has been accepted by the Shenzhen Stock Exchange, and the spin-off of innovative business subsidiaries were progressing steadily and orderly. The main business and innovative business of the Company have formed a relatively resilient business portfolio, laying a solid foundation for the long-term sustainable development of the Company.
□ Applicable √ Inapplicable There is no such case during the reporting period. Revenue structure Unit：RMB
Revenue structure Unit: RMB 100mn
Main business refers to the business parts other than innovative businesses 2 Other innovative businesses include the products and services of the innovative business subsidiaries, such as HikFire, Rayin and HikImaging. Same below. 3 The revenue from domestic main business and overseas main business only include Hikvision's main business's products and services, excluding revenue from innovative businesses.
Company's major business data would be adjusted according to the end of the reporting period in the most recent period. □Applicable √ Inapplicable Total operating costs structure Classified by industry
Classified by product/business
IV. Non-core business analysis □Applicable √ Inapplicable V. Analysis of assets and liabilities 1. Material changes of asset items Unit：RMB
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