海康威视：2024年年度报告

2024AnnualReport April19,2025 To Shareholders In response to the complicated and dynamic business climate in 2024, the Companytapped intothe 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, thecombined revenue of our overseas main businesses and innovative businesses surpassed the revenueof our domestic main businesses, that is, the total revenue of three businesses groups-PBG, EBGand 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 ourbusiness tenet to identify target markets, align with the advancement of cutting-edge technology, andincorporate new technologies into software and hardware products. The Company will keep growingits product lines and increasing application scenarios based on its persistent efforts to develop sensingtechnologies utilizing full electromagnetic waves, mechanical waves, and multi-band fusion. Since2018, the Company has maintained a steady increase in R&D investment, actively responding to thecontinuously deteriorating global operating environment through technological innovation. The Company will readily adapt itself to thetimes. In the years to come, we will shift our focusfrom faster expansion to higher efficiency, ensuring strong performance for all existing businesses.Moreover, the Company plans to modify its operating mechanism and optimize its organizationalstructure to better adapt to changes in the external business environment, while leveraging digitaltechnology to increase operational efficiency both internally and externally. The Company's commitment to global development will not change. Amid the ongoing politicaland economic turbulence worldwide, the Company is subject to standing, severe repression in someforeign countries, and is expected to face new challenges in the future. However, we are resolute inconsistently increasing our investment in overseas marketing and expanding the percentage ofoverseas revenue–thanks to the indomitable spirit we have developed over the last 20 years inoverseas 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 fortheir 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 TheBoard of Directors,Board ofSupervisors, directors, supervisors and senior managementguarantee that the information presented in this reportis true, accurate and complete withoutfalserecords, misleading statements or material omissions, and will undertake individual and joint legalliabilities. Hu Yangzhong,the Company's legal representative, Jin Yan, the person in charge of theaccounting work, and Zhan Junhua, the person in charge of accounting department (accountingsupervisor) hereby declare and warrant that the financial statements in thisannualreport aretrue,accurate and complete. All directors ofthe Companyhave attended the board meeting to review this report. The profit distribution proposal passed upon deliberation at the meeting of theBoard of Directorsis set out as follows:Based on the total share capital (excluding shares held in the Company'srepurchase account) as of the record date for the implementation of the 2024 annual profit distributionplan,the Companyproposed to distribute cash dividendof RMB7.00(tax inclusive) per each 10shares to all shareholders, bonus share and share distribution from capital reserve is nil. Note: This document is a translated version of the Chinese version 2024AnnualReport ("2024年年度报告"), and thepublished announcements in the Chinese version shall prevail. The complete publishedChinese 2024AnnualReport may be obtained atwww.cninfo.com.cn. Please read the full annual report and pay particular attentionto the following risk factors: 1)Domestic Economic Transformation Risks:The domestic market is undergoing continuous adjustments infiscal spending and real estate investment, leading to a need for improvement in societal expectations foreconomicdevelopment. Additionally, some overseas nations are implementing trade protectionist policies,which pose challenges tothe export capabilities of domestic enterprises. The economy remains in a transitionalphase of upgrading and transformation. TheCompany empowers economic and social digital transformationwithAIoT technologies and products, driving new developments in productivity. However, the process oftransformation and upgrading cannot be achieved overnight, and long-term structural pressures on the economyand society persist. Fluctuations during this process