[年报]海康威视(002415):2024年年度报告（英文版）
原标题:海康威视:2024年年度报告（英文版） April 19, 2025 To Shareholders In response to the complicated and dynamic business climate in 2024, the Company tapped into the potential of the Chinese security market and more actively expanded its security business overseas, while remaining committed to scenario-based digitization and innovative businesses. In 2024, the combined revenue of our overseas main businesses and innovative businesses surpassed the revenue of our domestic main businesses, that is, the total revenue of three businesses groups - PBG, EBG and SMBG - for the first time in our history. The Company is determined to bolster its investment in R&D. Seeing the rise of large AI models, we actively expand the development of AIoT-powered large multimodal model technology. It is our business tenet to identify target markets, align with the advancement of cutting-edge technology, and incorporate new technologies into software and hardware products. The Company will keep growing its product lines and increasing application scenarios based on its persistent efforts to develop sensing technologies utilizing full electromagnetic waves, mechanical waves, and multi-band fusion. Since 2018, the Company has maintained a steady increase in R&D investment, actively responding to the continuously deteriorating global operating environment through technological innovation. The Company will readily adapt itself to the times. In the years to come, we will shift our focus from faster expansion to higher efficiency, ensuring strong performance for all existing businesses. Moreover, the Company plans to modify its operating mechanism and optimize its organizational structure to better adapt to changes in the external business environment, while leveraging digital technology to increase operational efficiency both internally and externally. The Company's commitment to global development will not change. Amid the ongoing political and economic turbulence worldwide, the Company is subject to standing, severe repression in some foreign countries, and is expected to face new challenges in the future. However, we are resolute in consistently increasing our investment in overseas marketing and expanding the percentage of overseas revenue – thanks to the indomitable spirit we have developed over the last 20 years in overseas market development. The Company will always be customer-centric and create value for customers regardless of how the business environment changes. Finally, we wish to express our gratitude to all shareholders for their trust in and support for the Company! See far, go further! Board of Directors of Hangzhou Hikvision Digital Technology Co., Ltd. April, 2025 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. 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 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: Based on the total share capital (excluding shares held in the Company's repurchase account) as of the record date for the implementation of the 2024 annual profit distribution plan, the Company proposed to distribute cash dividend of RMB7.00 (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 2024 Annual Report ("2024年年度报告"), and the published announcements in the Chinese version shall prevail. The complete published Chinese 2024 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) Domestic Economic Transformation Risks: The domestic market is undergoing continuous adjustments in fiscal spending and real estate investment, leading to a need for improvement in societal expectations for economic development. Additionally, some overseas nations are implementing trade protectionist policies, which pose challenges to the export capabilities of domestic enterprises. The economy remains in a transitional phase of upgrading and transformation. The Company empowers economic and social digital transformation with AIoT technologies and products, driving new developments in productivity. However, the process of transformation and upgrading cannot be achieved overnight, and long-term structural pressures on the economy and society persist. Fluctuations during this process will continue to impact the company's operations. 2) Global Economic Downturn Risks: Growth in key economies has decelerated, regional development remains unbalanced worldwide, and macroeconomic volatility persists. The Company mitigates operational risks in specific regions through its diversified business footprint, tailoring strategies to local conditions. However, should a global economic recession occur, the company's operations may still face material impacts. 3) Geopolitical Environment Risks: The global political system is evolving toward multipolarity, with stability and predictability continuously diminishing, while conflictsin certain regions persist unresolved. In recent years, the Company has strengthened risk management and enhanced response capabilities, adjusting resource allocations in line with operational environments. Nevertheless, should geopolitical conditions deteriorate abruptly, the Company's operations in certain countries and regions may still face adverse impacts. 4) Technological Obsolescence Risks: Technologies such as artificial intelligence, big data, the Internet of Things (IoT), and cloud computing are advancing rapidly, with iterative updates accelerating. The Company has established a certain level of expertise in areas such as IoT sensing, AI, and big data, and has maintained technological advancement through extensive commercial practices. However, if the Company fails to closely monitor the evolution of cutting-edge technologies or maintain innovation and expansion within its technological framework, the uncertainty risks associated with future development will intensify. 5) Internal Management Risks: The Company's expanding operational scale, continuous diversification of products and services, and increasing internal complexity are elevating new challenges to governance capabilities. Through institutionalization and process standardization, the Company codifies management expertise while emphasizing talent pipeline development. However, should management capabilities fail to keep pace with business growth, operational performance could be compromised. 6) Financial Risks Caused by Customers' Reduced Ability to Pay: The liquidity of commercial transactions is susceptible to economic volatility, with the Company's capital turnover being closely tied to the operational conditions of partners across the value chain. While maintaining robust collection mechanisms, prudent operations, and substantial cash reserves with low financing costs, the Company may still face slower payment recovery and operational disruptions should overall market liquidity risks escalate. 7) Legal and Compliance Risks: Multilateral trade mechanisms are significantly impacted by political events, and the laws and regulations that commercial activities must comply with are complex and vary from country to country. There is a trend towards stricter data regulations globally, which poses higher demands on the Company's legal and compliance capabilities. The Company has established an effective legal and compliance management system through practical experience and has undergone multiple business tests domestically and internationally. However, if the Company's legal and compliance capabilities cannot keep up with the evolving situation, it may still have a negative impact on operations. 8) Supply Chain Risks: Some countries are using supply chains as a means of international competition, and the global supply system has been continuously impacted by geopolitical events in recent years. Despite efforts to establish diversified supply networks and properly manage inventory, the Company may still be affected by a widespread supply chain disruption, which could impact its business stability. 9) Cybersecurity Risks: The Company consistently emphasizes cybersecurity capabilities and system development, actively implementing measures to enhance product and system security. However, incidents such as computer viruses, malware, and hacker attacks may still occur, potentially damaging the Company's systems or products and creating cybersecurity vulnerabilities. 10) Exchange Rate Volatility Risks: The Company conducts operations in multiple countries and regions overseas, primarily settling transactions in foreign currencies. While employing reasonable financial instruments for risk hedging, inherent foreign currency exposure from sales, procurement, and financing activities remains. Exchange rate fluctuations may consequently affect the Company's financial performance. 11) Intellectual Property Risks: The Company maintains substantial R&D investments yielding numerous technological achievements, supported by relatively comprehensive intellectual property protection measures. Nevertheless, risks of intellectual property disputes and infringement persist. The above-mentioned alerts do not include all the potential risks for the Company. Investors are advised to invest CONTENTS To Shareholders .................................................................................................................................................. 1 Section I Important Notes, Contents and Definitions ...................................................................................... 3 Section II Corporate Profile & Key Financial Data ......................................................................................... 8 Section III Management Discussion and Analysis ......................................................................................... 14 Section IV Corporate Governance ................................................................................................................ 143 Section V Environmental and Social Responsibility .................................................................................... 181 Section VI Significant Events ......................................................................................................................... 182 Section VII Changes in Shares and Information about Shareholders ....................................................... 204 Section VIII Information of Preferred Shares ............................................................................................. 217 Section IX Bonds ............................................................................................................................................. 218 Section X Financial Report ............................................................................................................................ 219 Section XI Documents Available for Reference ........................................................................................... 369
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 Reasons for retrospective adjustment or restatement of previous accounting data √ Consolidation under Common Control Unit: RMB
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:
retrospectively adjusted in accordance with the accounting standards for business enterprises. Whether there is significant difference between the above individual or aggregate financial indicators and that of 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: Artificial intelligence (AI) is undergoing revolutionary changes, as the advancement of large language models (LLMs) has provided a significant boost to the widespread use of AI and the rise of large multimodal models (LMMs) has accelerated the deep fusion of the physical and digital worlds. Amid this technological transformation, Hikvision remains committed to expanding the boundaries of IoT perception based on its expertise in the sector of AI-powered Internet of Things (AIoT), promote the application of LMMs, and establish an end-to-end loop of applications with big data and software capabilities, in an effort to facilitate the digital transformation of society. IoT perception technology, which records everything digitally, serves as the "bridge" connecting the physical world with the digital. With visible light at the core, Hikvision has built a multi-dimensional perception system that encompasses the electromagnetic spectrum from millimeter waves, infrared rays, lasers and X-rays to ultraviolet rays, and integrates sound waves, vibrations, temperature/humidity, pressure, magnetism and other sensing technologies. This leads to a complete IoT data portal. The persistent development of multi-dimensional perception capabilities has increased the breadth of data acquisition, and the continuous upgrade of perception product performance has improved the depth and accuracy of data, rendering everything perceptible and accessible. AI, which converts raw perception records into neatly structured data and interprets them, is the key to understanding scenarios and businesses. Abundant IoT perception materials provide a high-quality data foundation for the training of large models, powering the iteration and improvement of Hikvision's AI algorithms. Hikvision's large models - Guanlan has developed capabilities related to large IoT perception models, large language models and large multimodal models to serve the technological chain from perception to cognition. In the realm of perception, Guanlan enables accurate analysis and comprehension of IoT data; in terms of cognitive capabilities, knowledge-enhanced large language models allow it to significantly improve the capabilities of semantic understanding, predictive inference and optimized decision-making in complex scenarios. Big data and software, which enable the organization and induction of IoT data, are the secret to unleashing the value of IoT data. Leveraging its profound expertise in cloud computing, big data and other technical domains, Hikvision has built a capability architecture that "integrates cloud and edge, IoT and information network, digitalization and intelligence" to support efficient data processing and analysis. Hikvision's unified software technology architecture supports a component-based approach to software development. The vast software component library and high component reuse rate greatly reduce the development and maintenance costs for users, helping with agile development and rapid iteration of software applications in different industries. Hikvision has been leading the way in the AIoT sector for over two decades. It has gradually built a sound technical framework centered on IoT perception, AI, and big data. Based on this, it has developed more than 30,000 different AIoT products. The Company serves two business segments: security and scenario-based digitization and fuels the digital transformation of the whole society via three business groups and eight innovative businesses, as well as two marketing systems - domestic and overseas. Under the leadership of the Enterprise Business Group (EBG), the scenario-based digitization business has taken shape across the organization in recent years, unleashing new growth space for the Company. The rise in the proportion of overseas revenue results in a more balanced core business structure, indicating the ongoing expansion of Hikvision's worldwide brand power. Innovative business has maintained rapid development, which constantly develops new capabilities and injects fresh momentum into the Company, advancing Hikvision's steady pathway towards AIoT. Hikvision will continuously reinforce its advantages in multi-dimensional perception technology, enhance the integration and innovation of large models and industry expertise, and unlock the value of IoT data with more robust big data capabilities. In doing so, the Company hopes to contribute to precise and convenient social governance, sound and efficient business operations, and a smart and healthy lifestyle, continuing to lead the new future of AIoT. 2. Product System With video perception technology as the starting point, Hikvision continues to expand its IoT perception capabilities in more dimensions. Over the past more than 20 years, it has built a multi-dimensional perception system that encompasses electromagnetic waves and mechanical waves, and integrates physical sensing technologies based on temperature, humidity, pressure and magnetism. With an extensive perception capacity and multi-dimensional perception integration capabilities, Hikvision has established an IoT perception technology platform that supports growing innovative applications in the field of scenario-based digitization. Hikvision has seen its AI technology continuing to develop and its software and hardware products embracing greater intelligence. In 2023, the Guanlan Large Model was released. Based on the Guanlan, Hikvision's AI algorithm capabilities have expanded from visual algorithms to multimodal algorithms, catalyzing multi- dimensional upgrades of software and hardware applications. Guanlan pushes the limits of perception intelligence: Hikvision's large IoT perception models include large vision, optical fiber, audio, and X-ray models. Thanks to these large models, target identification tasks in complicated contexts have seen a notable rise in sensitivity and accuracy. For instance, the large vision model has reduced false alarms by 90% in perimeter prevention, the large millimeter wave model has achieved an 86% reduction in missed detection of prohibited goods via safety gates, the large optical fiber model for auscultation has a relative reduction of 72% in false alarms, and the large X-ray model has reduced missed detection by 75% in the recognition of prohibited goods. Guanlan expands the boundaries of perception capabilities: Large multimodal models allow for the detection and identification of everything through natural language definitions. Based on multimodal search, image features and text features are aligned to enable easy text search. The perception and inference capabilities of large multimodal models can be used to disrupt the conventional development paradigm of visual perception plus artificial logical inference, achieve end-to-end inference through text description, and facilitate the understanding of complex events. Guanlan increases cognitive intelligence applications: In the field of cognitive intelligence, the large language model serves as the "brain," which combines industrial expertise to develop a specialized agent, empowering the digital upgrade of the industry. A new paradigm of human-machine interaction driven by natural language is established to allow for accurate response to fuzzy needs. Semantic understanding and logical inference capabilities are strengthened for accurate knowledge extraction and dynamic matching. All of these advancements lead to vertical applications such as traffic congestion diagnosis, wind power prediction, and supply chain scheduling optimization. Hikvision continues to improve and expand its IoT perception technology reserves and raise the intelligence level of its products. In response to scenario-based needs, Hikvision has worked hard to develop innovative technical solutions and efficient and practical products. This results in a comprehensive portfolio of AIoT software and hardware products that represent viable pathways to digital transformation across society. 2.1 New Digital Products Starting with visible light perception, Hikvision continues to push the boundaries of perception technology. It combines its diverse array of perception technologies such as radar perception, infrared perception, X-ray perception, spectrum perception, laser perception, and sound wave perception with extensive product engineering capabilities, to consistently introduce innovative digital products that satisfy market demands. The Company's innovative digital products make digital information that was previously impossible or difficult to perceive readily accessible - from the microstructure to the composition of a substance, from the height, quantity to the volume of a material, from the running speed, vibration, temperature to the pressure, sound of a device, from the appearance flaws to the internal address specific problems on the site in each real-world scenario and fuel the digital transformation of thousands of industries. 2.1.1 Visible light perception Hikvision's vast expertise in visible light imaging serves as the foundation for its ongoing product innovation. Through hardware structure design and algorithm capability optimization, it develops digital solutions for scenarios beyond security, represented by manufacturing, environmental monitoring, and equipment management. In the element collection stage, Hikvision integrates visible light imaging with data from sensors such as visibility meters, GNSS (global navigation satellite systems), accelerometers, and gyroscopes to develop multi- dimensional perception capabilities; in the intelligent analysis stage, capabilities such as high sensitivity, high accuracy, and convenient configuration are enabled leveraging breakthroughs in the application of large vision models; and in the stage of scenario application, through new materials and processes like self-cleaning technology, remote automatic adjustment technology, and vibration-absorbing materials, Hikvision has ensured the adaptability of products to special environments and created truly easy-to-operate and maintenance-free smart cameras. Visibility meters: On expressways and highways, reduced visibility increases the risk of traffic accidents. （未完）  |