ZKTECOCO.,LTD. 2024AnnualReport AnnouncementNo.:2025-037 April2025 Agilelyembracingchanges,buildingcustomerlifetimevaluewithAIandcloudservicesALettertoShareholders In2024,ZKTecocontinuedtoinvestinanddevelopalongthemaintrajectoryofhigh-qualitydevelopment,whichfocuseson"establishingaservicesystembasedontheself-innovatedMinervaIoTwhileemphasizingthelifetimevalueofcustomersthroughBioCVAIproductivity."Overthepastyear,ZKTecohasmadesignificantstridesbyadvancingproductconcepts,optimizingservicedetails,andcontinuouslyinnovating.TheCompanyhasconsistentlyintroducednewapplicationscenarios.Guidedbyacommitmenttocontinuousinnovationandzero-basedthinking,ZKTecostaffhavesteadilyprogressedvariousbusinessinitiativeswithafocusonstableinnovationandongoingexcellence.Thiseffortculminatesinastraightforwardyetimpactfulreportcardpresentedtoourshareholders.In2024,theCompanyachievedoperatingrevenueofRMB1,991.2004million,aYoYincreaseof1.07%,andrealizedanetprofitattributabletotheparentcompanyofRMB183.046million,aYoYincreaseof3.26%.Whilethedatamaynotbeextraordinary,thisaccomplishmentisatestamenttothehardworkanddedicationofZKTecostaff.Here,onbehalfoftheBoardofDirectors,Iwouldliketoextendmyheartfeltgratitudetoallourcolleagues,users,partners,andinvestorswhohavesupportedZKTeco.Yourcollaborationhasbeeninvaluableaswenavigatedchallengestogetherandseizedopportunitiesoverthepastyear.ThankyouforyourunwaveringcommitmenttoadvancingalongsideZKTeco. In2024,theCompanyremainedcommittedtoitsdevelopmentobjectivesofprecision,expansiveness,andexcellence.Weconcentratedonrefiningourcorebusinesswithmeticulousattentiontodetail,cultivatingarobustecosystemthroughbroadengagement,anddrivinginnovationwithelevatedaspirations.Wehaveintegratedproducts,ecosystems,andservicesintoacohesivesolution,achievinginnovativeapplicationsintheBioCVunmannedmanagementscenariosattheindustry'sgeneralentryandexitpoints.Additionally,wehaveendeavoredtotransformZKTeco'sofflineplatformofhigh-qualityscreensintocloudserviceswithinthesmartretailsector.Throughongoingtechnologicalinnovationincorecomputervisiontechnologiesandedge-sidemultimodalAIhuman-computerinteraction,wehavefacilitatedtheenhancementofourproductsandsolutions.ThishasledtosignificantopportunitiesandbreakthroughsformultimodalAItechnologywithinthe"end-edge-cloud-service"frameworkrelatedtoentryandexitoperations.In2024,weestablishedZKTecoCloudBrain-Computer(Hangzhou)TechnologyCo.,Ltd.toconductresearchandintegratemultimodaldata,includingbiometricirisandretinainformation,EEGdata,clinicalrecords,andgeneticdata.Utilizingadvanceddeeplearninganddataminingtechnologiesforcomprehensiveanalysis,weexploredthecorrelationsandpotentialpatternsamongvariousdatamodalities.Thisinnovativeapproachenabledustodevelopnewtechnologiesandproductsaimedatenhancingtechnicalresearchandexploringtreatmentmethodologiesinthefieldsofeducation,healthcare,andelderlycare. In2025,asthewaveofartificialintelligenceandlargemodelssweepsacrosstheglobe,propellinghumansocietyintoaneweraofAIoTatanunprecedentedpace,ZKTecowillundertakeacomprehensiveintegrationofcustomervaluewithintherealmofAI cognitivespacecomputingtechnology.Thisintegrationwilloccurinathree-dimensionalmanner—transitioningfromdigitalizationto intelligenceandultimatelytocognition.TheCompanywillprioritizeR&DaswellasoptimizationofBioCVTinyML(micromultimodallearning)edgemodels.TheCompanyisdedicatedtointegratingautonomousdecision-makingandevolutionarycapabilitiesintoedgedevices,therebyenhancingZKTeco'sspatialcognitionintheperceptionofscenariosinvolving"people,vehicles,objects,andenvironments." In2025,ZKTecowillcontinuetodeeplyintegrateAIcognitivetechnologywithmultimodalbiometricsandcomputervisiontechnologies.Thisintegrationassistsenterprisesinoptimizingtheirtime,space,andresourceswhileenhancingtheintelligenceofproductsanduserexperiences.Furthermore,itwillimproveoperationalefficiencybybridgingthephysicalworldwiththedigitalrealm.ZKTeco'sachievementsininnovationarenotonlyevidentinthecontinuousexpansionandoptimizationofproductfunctionalitiesbutalsointheredefinitionandestablishmentofindustrystandards.ThisensurestheCompany'stechnologicalleadershipwhileprovidinguserswithenhancedexperiencesthataremorecomfortable,intelligent,safe,andconducivetosustainabledevelopment.Furthermore,theseadvancementspromoteindustrialinnovationandusherinaneweraofcoexistencebetweenhumanityandspace. Asagloballeaderinintelligentspaceevolutionservices,ZKTecoispoisedtotransformtheindustrylandscapethroughinnovativestrategies.WewilladeptlynavigatechangesandenhancecustomerlifetimevaluebyleveragingAIandcloudservices,therebysetting thecourseforfuturedevelopmenttrends.Wearecommittedtomeetingtheexpectationsofallourinvestors! ChairmanCheQuanhong 2024AnnualReport SectionIImportantNotes,ContentsandDefinitions TheBoardofDirectors,theBoardofSupervisors,directors,supervisorsandseniormanagersguaranteethattheinformationpresentedinthisreportistrue,accurateandcompletewithoutanyfalserecords,misleadingstatementsormaterialomissions,andwillundertakeindividualandjointlegalliab