[中报]海康威视(002415):2024年半年度报告（英文版）
原标题:海康威视:2024年半年度报告（英文版） August 17, 2024 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. Hu Yangzhong, 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 2024 Half Year Report (“2024年半年度报告”), and the published announcements in the Chinese version shall prevail. The complete published Chinese 2024 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 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 Section I Important Notes, Contents and Definitions ...................................................................................... 1 Section II Corporate Profile & Key Financial Data ......................................................................................... 6 Section III Management Discussion and Analysis ......................................................................................... 10 Section IV Corporate Governance .................................................................................................................. 28 Section V Environmental and Social Responsibility ...................................................................................... 30 Section VI Significant Events ........................................................................................................................... 31 Section VII Changes in Shares and Information about Shareholders ......................................................... 44 Section VIII Information of Preferred Shares ............................................................................................... 55 Section IX Bonds ............................................................................................................................................... 56 Section X Financial Report .............................................................................................................................. 57 Section XI Documents Available for Reference ........................................................................................... 185
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 2023 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 total share capital of the Company as of the previous trading day of the report disclosure:
□ Applicable √ Inapplicable The company does not have any specific situations of profit and loss items that meet the definition of non- recurring gains and losses. Explanation of the situation where the non-recurring gains and losses items listed in the 'Interpretative Announcement No. 1 on Information Disclosure of Companies Issuing Securities Publicly — Non-recurring Gains and Losses' are defined as recurring gains and losses items. □ Applicable √ Inapplicable The Company does not have any instances where the non-recurring gains and losses items listed in the 'Interpretative Announcement No. 1 on Information Disclosure of Companies Issuing Securities Publicly — Non-recurring Gains and Losses' are classified as recurring gains and losses items. Section III Management Discussion and Analysis 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 2023 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 2023 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 of 2024, the domestic market demand was relatively weak, with significant industry differentiation; the overseas market was generally stable, but conflicts persisted in some regions, and trade frictions among major economies increased, testing the Company' global operations and compliance governance capabilities. Facing the complex environment both domestically and internationally, Hikvision adheres to the business philosophy of "professionalism, honesty, and integrity", maintains confidence, always focuses on the growth of its own capabilities, and continuously promotes the steady development of its business. During the reporting period, the Company achieved revenue of RMB41.21 billion, with year over year growth of 9.68%; the net profits attributable to shareholders of the Company was RMB5.06 billion, a decrease of 5.13% over the same period of the previous year; the net profit attributable to shareholders of the Company, after deducting non- recurring gains and losses, was RMB5.24 billion, an increase of 4.11% over the same period of the previous year. (1) Continuously increase R&D investment to enhance competitive advantage During the reporting period, the Company continued to solidify its foundation in AIoT business, increased investment in scenario-based digitalization business, continuously launched innovative multi-dimensional perception products, and built new competitive strength in scenario-based digitalization, thereby supporting the Company's long-term sustainable development. In the first half of 2024, the company's R&D investment reached RMB5.70 billion, a year-on-year increase of 7.81%. The company will continue to build and improve the differentiated advantages of products and solutions, enhance market competitiveness with product innovation capabilities, maintain the Company's advantageous position, and ensure the steady development of the business. (2) Targeted deployment and optimization of marketing resources to improve operational efficiency During the reporting period, the company continued to empower provincial business centers and urban branches in China, strengthening the service capabilities of the business system, and promoted organizational changes to enhance internal operational efficiency. Based on the different economic development speeds and geopolitical environments of various overseas regions, the Company has invested and allocated resources in a targeted manner and optimized regional management. (3) Deepen the transformation of the process management system to enhance operational efficiency During the reporting period, the Company continued to deepen the transformation of process management, continuously promoting the synergy and integration of the organizational structure, stimulating the team's innovative potential, and ensuring the continuous improvement of organizational vitality and efficiency. The Company has been continuously strengthening the construction and improvement of the compliance system, ensuring effective control of risks, and solidifying the institutional guarantee for compliant operations, laying a solid foundation for the Company's stable development. (4) Innovative businesses consolidate competitive advantages and form stronger synergy with main business During the reporting period, the overall revenue of the innovative business was RMB10.33 billion, a year-on-year increase of 26.13%, accounting for 25.06% of the Company's revenue. Innovative business subsidiaries such as EZVIZ, HikRobot, and HikMicro have established advantageous positions in their respective fields, and the overall development of the innovative business is good, becoming a strong engine for the Company's development. The main business, together with the innovative business, forms the AIoT business portfolio, and the business synergy continues to improve, helping the Company to achieve long-term sustainable development.
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. 4 Innovative businesses’ revenue includes its domestic and overseas revenue.
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
□Applicable √ Inapplicable V. Analysis of assets and liabilities 1. Material changes of asset items Unit：RMB
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