海康威视：2025年半年度报告

2025Half YearReportJanuary to June2025 August2,2025 Section I Important Notes, Contents and Definitions The Board of Directors, Board of Supervisors, directors, supervisors and senior management ofHangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as the"Company") herebyguarantee that the information presented in this report shall betogether be wholly liable for thetruthfulness, accuracy and completeness of its contents and free of any false records, misleadingstatements or material omissions, and will undertake individual and joint legal liabilities. HuYangzhong, 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 thishalf yearreport areauthentic, 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 upondeliberation at the meeting of the Board of Directors (not applicable): The Company will notdistribute cash dividend, distribute bonus shares, or distribute shares from capital reserve during thecurrent reporting period. Note: This document is a translated version of the Chinese version2025Half Year Report (2025年半年度报告), and the published announcements in the Chinese version shall prevail. The complete publishedChinese2025Half Year Report may be obtained atwww.cninfo.com.cn. Please read thehalfyearreport and pay particular attention to the following risk factors: (1)Risks of domestic economic transformation:Continuous adjustments in fiscal spending and real estateinvestment markets, the expectation for healthy economic development across societystill needs to bestrengthened, and trade protectionist policies implemented by some overseas countries pose challenges todomestic enterprises’export capabilities.The economy is still in the process of transformation and upgrading.The Company empowerseconomic and social digital transformation with AIoT technologies and products,promoting new productivity development. However, transformation and upgrading cannot be achievedovernight, and structural pressures in the economy and society will persist over the long term. Fluctuationsduring this process will continue to impact the Company’s business operations. (2)Global economic downside risks:Individual countries intensifying trade protection policies, some majoreconomies experiencing slower growth, uneven development across regions, and continuous fluctuations inthe macroeconomic environment.The Company diversifies its operational risks across a wide range of businessoperations and conducts business according to the specific conditions of each countryand region. However, ifa global economic recession occurs, the Company’s business will also be affected to some extent. (3)Geopolitical risks:The global political system is evolving toward a multipolar structure, with continuouslydeclining stability andpredictability, and ongoing intractable local conflicts. In recent years, the Company hascontinuously strengthened risk control, enhanced response capabilities, and adjusted resource allocation basedon the business environment. However, if the geopolitical environment suddenly deteriorates, the Company’soperations in certain countries and regions may still be adversely affected. (4)Technology upgrading risks:With the rapid development of AI, big data, IoT, cloud computing and othertechnologies, technological applications are iterating quickly. The Company has some strength in technologyfields such as IoT perception, AI, and big data, and maintains technological iteration through extensivecommercial practices. However, if it fails to closely track updatesin cutting-edge technologies or sustaininnovation and expansion of its technical system, the uncertainty of the Company's future development willincrease. (5)Risks of internal management:The Company's continual business expansion and development of newproducts and business services add complexity to internal management, posing new challenges to ourmanagement capabilities. The Company accumulates management experience through the development of systems and procedures with a focus on talent cultivation andconstruction. However, the Company's operationswill be adversely affected if our management capabilities cannot keep up with the business expansion. (6)Financial risks caused by customers' reduced ability to pay:The flow of funds in commercial transactionsis affected by the economic environment.The Company’s financial operations are closely tied to theperformance of partners upstream and downstream in the value chain.The Company has accumulated a certainlevel of cash reserves through diligent and prudent operations, and has relatively low financing costs. However,if overall market liquidity risk increases, the Compa