[年报]海康威视(002415):2023年年度报告（英文版）
原标题:海康威视:2023年年度报告（英文版） April 20, 2024 To Shareholders The business performance of Hikvision kept improving on a quarterly basis in 2023. Despite the uneven performance of the Company’s five business groups-PBG, EBG, SMBG, overseas main business and the innovative business, greater stability in the operation has been achieved by Hikvision, in a complex and volatile business environment. Regardless of our performance, Hikvision has resolutely increased investment in research and development as we have always believed in long-term efforts. Over the past eight years, Hikvision has gradually expanded perception technology from visible light to centimeter wave, millimeter wave, far-infrared, medium wave infrared, shortwave infrared, ultraviolet and X-ray, as well as to infrasound wave, acoustic wave, and ultrasonic wave. By combining perception with AI technologies, we have gradually built and improved our AIoT technology system, launched and improved the products and solutions, which contributed to the business growth. The survellience business is currently one of the business directions of the Company's AIoT strategy. We have enhanced our competitiveness in the survellience industry by increasing non-visible light detector product lines or integrating multiple detector product lines. Scenario-based digitalization, especially scenario-based digitalization for enterprises, is another direction of our AIoT strategy. Hikvision has launched some product lines in this field and is becoming an OT (Operational Technology) manufacturer. Looking digital transformation of various businesses. We seek to become a partner of varied businesses in their digital transformation journey by continuously improving our internal operational mechanisms and optimizing our operational processes. We believe that digital transformation of businesses is a long process that provides immense potential for our future business growth. Hikvision has applied AI technology to various perception products and combined AI with big data technologies for use in system solutions. While exploring and developing industrial large models and industrial large multimodal models, we will continue to develop industry software to provide more suitable products and system solutions for users. Hikvision is committed to the internationalization strategy. Although severely suppressed in some countries, the Company has been increasing investment in overseas markets, resulting in continuous growth of our international business. We will further increase investment in overseas marketing and enhance our competitiveness in those markets. Being customer-centric and creating value for customers are always Hikvision's original aspiration and core values. We stay dedicated to being open, transparent, and honest towards customers, shareholders, and employees. Our sincere gratitude goes to all shareholders for your commitment to Hikvision and for your trust in the management team! See far, go further! Board of Directors of Hangzhou Hikvision Digital Technology Co., Ltd. April, 2024 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 9,330,600,931 shares, the Company proposed to distribute cash dividend of RMB9 (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 2023 Annual Report ("2023年年度报告"), and the published announcements in the Chinese version shall prevail. The complete published Chinese 2023 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 risks: Global geopolitical uncertainty remains acute as the political landscape is being fragmented and reshaped, and local wars continue. In recent years, the Company has continuously strengthened our risk control and response capabilities, and flexibly adjusted resources based on business opportunities. However, our operations in some countries and regions may be adversely affected should geopolitical environment continues to deteriorate. 2) Global economic downside risks: In addition to slower growth and entrenched currency oversupply in some major economies, different regions across the world develop at different rates, presenting a hidden risk that is difficult to eliminate. The Company disperses the risk of operating in a single region with a wide business layout and conducts business based on the actual situation of various countries and regions. However, the Company's business will be impacted if another global economic recession arises 3) Risks of domestic economic structural transformation: The infrastructure and real estate markets in China continue to undergo adjustments. The exports of some commodities are restricted by trade protection policies of destination countries, and the advantage of a large labor force is weakened. The Chinese economy is in a process of transformation of development mode and alternation of new and old driving forces. The Company empowers the digital transformation of the economy and society with AIoT technologies and products, promoting new developments in productivity. However, economic transformation cannot be achieved overnight, and structural pressure and resistance will persist for a long time. Any problems that occur during the process will still affect the Company's business operations. 4) Supply chain risks: The integrity of the global supply system is undermined by geopolitics, and the timeliness of the supply chain is affected by business cycles. The Company strives to develop a diversified supply network and adjust inventory properly. However, our business stability may be affected if the supply chain is seriously interrupted. 5) Technology upgrading risks: With the rapid development of AI, big data, IoT and other technologies, technological applications are iterating quickly. The Company has some strength in technology fields such as IoT perception, AI, and big data, and keeps growing through business practices. However, if we cannot closely track the updates and changes of cutting-edge technologies and maintain business innovation and expansion, the uncertainty of the Company's future development will increase. 6) Risks of internal management: The Company's continual business expansion and development of new products and business services add complexity to internal management, posing new challenges to our management capabilities. The Company accumulates management experience through the development of systems and procedures with a focus on talent cultivation and construction. However, the Company's operations will be adversely affected if our management capabilities cannot keep up with the business expansion. 7) Legal and compliance risks: The world's multilateral trading system is greatly impacted by politics, and business activities are required to comply with the complex laws and regulations of various regions. The Company has constantly strengthened the legal compliance system since countries around the world have stricter requirements for data supervision and legal compliance capabilities. However, the Company's operations will be adversely affected if our legal compliance capabilities cannot keep up with the requirements. 8) Risks of exchange rate fluctuations: The Company operates in multiple countries and regions, where transactions are mainly settled in non-RMB currencies. Although the Company uses appropriate financial instruments to reduce risks, exchange rate fluctuations will affect our financial performance due to the foreign currency exposure arising from sales, procurement, and financing. 9) Financial risks caused by customers' reduced ability to pay: The flow of funds in commercial transactions is affected by the economic environment. The Company has accumulated some cash reserves due to our sound collection mechanism and stable business operations, and our financing costs are low. However, if the overall liquidity risk of the market increases, the Company's operations will be adversely affected as our payment collection maybe delayed. 10) Risks of cybersecurity: The Company has always emphasized cybersecurity and taken active measures to enhance the security of our products and systems. However, computer viruses, malicious software, hacker attacks and other security incidents that deliberately attempt to damage the Company's systems or products may take place, causing potential cybersecurity issues. 11) Risks of intellectual property (IP) rights: The Company has maintained considerable investment in R&D, and made significant technological achievements. We have also implemented robust IP protection measures. However, the risk of IP disputes and infringement still exists. The above-mentioned alerts do not include all the potential risks for the Company. Investors are advised to invest with caution. 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 ......................................................................................... 16 Section IV Corporate Governance ................................................................................................................ 148 Section V Environmental and Social Responsibility .................................................................................... 183 Section VI Significant Events ......................................................................................................................... 184 Section VII Changes in Shares and Information about Shareholders ....................................................... 207 Section VIII Information of Preferred Shares ............................................................................................. 223 Section IX Bonds ............................................................................................................................................. 224 Section X Financial Report ............................................................................................................................ 225 Section XI Documents Available for Reference ........................................................................................... 385
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 Reasons for retrospective adjustment or restatement of previous accounting data √ Changes in accounting policies Unit: RMB
(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 provisions on exemption of initial recognition of deferred income tax liabilities and deferred income tax assets in Accounting Standards for Business Enterprises No. 18-Income Taxes shall not be applied if a single transaction is not a business combination, that affects neither accounting profit nor taxable income (or deductible loss) when the transaction occurs, and that initially recognized assets and liabilities result in equal taxable temporary differences and deductible temporary differences. This provision is effective as of January 1, 2023 and may be implemented in advance. The Group implemented this requirement from January 1, 2023, adopted the retrospective adjustment method for accounting treatment, and restated the financial statements for the comparative period. The Company's net profit before and after deducting non-recurring gains and losses in the last three fiscal years is negative, and the audit report of the most recent year shows that there is uncertainty about the Company's ability to continue operations □ Yes √ No Net profit before and after deducting extraordinary gains and losses is negative □ Yes √ No 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 With the rapid development of AI, big data, and IoT technologies, digitalization has accelerated its penetration into various industries and fields, creating new industries and business models, and giving birth to a group of digital- era giants in retail, media, entertainment, local life, and other fields. Major countries around the world have introduced strategies and plans to promote the accelerated application of digital technologies. In 2016, the Chinese government proposed to promote the deep integration of information technology and economic and social development, and, for the first time, introduced the concept of "Digital China" in the Outline of the 13th Five-Year Plan for National Economic and Social Development. In 2021, "Digital China" was identified as one of the important national strategies in the 14th Five-Year Plan and 2035 Vision Goals of China. As digitization and digital transformation continue to unfold, data has become a new production factor. A vast majority of companies built around the physical world (which can be referred to as non-digital native companies), especially manufacturing companies, have conducted a large amount of IT work, but the lack of core data required for digital transformation of their core business processes and the data-based products and solutions for intelligent control and decision-making remains the biggest pain point for these companies. The digitization of physical world scenarios is the fundamental unit of digital transformation. "Signals" are widely present in the physical world and a variety of perceptual capabilities are needed to collect multi-dimensional and multi-type data and enable them to be mapped in the digital world. The demand for digital transformation is personalized and highly fragmented. Different industries and even different participants within the same industry vary in their demands for digital transformation. Only by deeply integrating technology and user needs can we truly solve the digital transformation problems in specific scenarios and empower business with digital technology. Hikvision's comprehensive perception capabilities facilitate acquisition of richer data. By focusing on video perception, Hikvision has built a comprehensive perception system that encompasses electromagnetic waves such as visible light, infrared, radar, and X-ray, mechanical waves such as sound waves and ultrasound, as well as various physical sensing technologies. At present, the Company has tens of thousands of IoT perception products, covering multiple categories including front-end cameras, audios and sensors, enabling comprehensive aggregation of images, sound, vibration, temperature, and other multi-dimensional data. Hikvision's diverse digital technology further unlocks data value. With our profound expertise in cloud computing, big data and AI as well as deep understanding of AIoT, the Company has launched a capability architecture "integrating cloud and edge, IoT and information network, digitalization and intelligence". Meanwhile, the Company continues to improve our data processing and analysis capabilities by increasing investment and accumulation in basic computing power and large model construction. Recently, we have innovatively launched the Guanlan large model that promotes the wider value fulfilment of AI. Hikvision leverages a deep understanding of the industry to meet the application needs of personalized scenarios. Currently, the Company has covered over 500 segmented scenarios in nearly 90 sub-industries across over 10 main industries, and continues to expand our presence in many fields related to production, life, and social governance. With the establishment of lower-level distribution channels and long-term communication and cooperation with industry customers, the Company has gained profound industry understanding and user insights, enabling us to better meet the personalized and customized digital transformation needs of downstream customers. Faced with the unstoppable trend of digital transformation, Hikvision will help businesses to consolidate their data foundation for digital transformation through our comprehensive perception technologies and more innovative digital technologies, respond to the highly customized digital transformation needs of various industries through richer product portfolios and stronger platform capabilities, and accelerate the large-scale implementation of digital transformation through wider channel coverage and a more open partner ecosystem, thus enabling convenient and efficient government services, quality and efficiency improvement of business operations, and an intelligent and healthy life for the people. 2. Technology System With more than 20 years of innovation and experience, Hikvision has developed IoT perception, artificial intelligence, and big data technology systems that support the product development and application implementation. Using visible light as the technology foundation, the Company has created a business logic that comprises video signal acquisition, processing, and application. We have continuously developed perception technologies to expand these business services and established the business model of data acquisition, processing, and application with the support of artificial intelligence and big data. The three complementary technologies are combined to improve Hikvision's business, continuously promoting the commercial realization of technology, and facilitating the Company's implementation of the business cycle of technology-product-market-technology. 2.1 IoT Perception With video technology as the starting point, Hikvision has been committed to developing perception technologies and improving our IoT perception capabilities. With more than 20 years of technological expertise, the Company has grown to cover the fields of electromagnetic and mechanical waves, as well as other physical sensing technologies such as temperature, humidity, pressure, and magnetism. In the field of electromagnetic waves, Hikvision's perception technology has covered long waves from visible light to near-infrared, mid-infrared, far-infrared and millimeter waves, as well as short waves such as ultraviolet light and X-ray. Our profound know-how in signal processing, computer vision, large model, and multi-dimensional perception integration technologies has promoted the application of digital technology in a range of industries including food, medical, logistics, power, transportation, and manufacturing. In the area of mechanical waves, Hikvision has achieved perception of sound that extends from audible to （未完）  |