熵基科技：熵基科技股份有限公司2025年年度报告（英文版）

2025 Annual Report Announcement No.: 2026-030 April 2026 A Letter to Shareholders AI empowers a better life, reshaping a new realm ofliving In 2025, amidst the wave of technological revolution and industrial transformation, ZKTeco has always adhered to its originalaspiration of "technology for good". With AI cognitive space technology as the core driving force, it has promoted the deep integrationof AI with various business segments, continuously achieving breakthroughs in core areas such as smart space, smart office, and digitalidentity authentication. Furthermore, it has actively practiced in scenarios like smart commercial and smart living, using technology toreshape the way people connect with space, scenarios, and life, outlining a new realm of existence that is warmer and more valuable. Every step of growth this year is inseparable from the trust and companionship of all shareholders. We hereby present a steadilyimproving performance to express our most sincere gratitude to all shareholders! In 2025, the Company achieved an operating revenue of RMB2,132.7897 million, a YoY increase of 7.11%, and a net profitattributable to shareholders ofthecompanies of RMB 214.7104 million, a YoY increase of 17.30%. The net profit after deducting theimpact of share-based payment was RMB 261.8301 million, a YoY increase of 24.99%. In 2025, the Company continuously navigated various uncertainties with two engine drivers: the digital transformation of itsmainbusiness and the development of innovative businesses. Its main business fully embraced digital cloud services, and its smartcommercial business is poised for growth. The Company steadily carried out industry chain collaboration and frontier technologyexploration. The Company completed the strategic acquisition of Longzhiyuan Company to further optimize its product layout, enhanceits scenario expansion capabilities, and achieve complementary business resources. Meanwhile, the Company prudently advancedtheintegration of audio-visual AI human-computer interaction and brain-computer interface AI intention core technologies withthecompany's multimodal BioCV core technologies. Transitioning from multimodal BioCV's "person recognition" to brain-computerinterface's "mind recognition", this will involve multimodal analysis of neuronal EEG data to manage emotional health using databaselines. In areas such as depression, Alzheimer's, and attention analysis, it will reasonably extend the layout of brain healthrehabilitation and biometrics eye-tracking technologies. In 2025, the Company incorporated brain-computer interface into its long-term technological strategic roadmap. Centered aroundthe clear main theme of "technological breakthroughs—scenario application—ecosystem co-construction—global layout", ZKTeco'sbrain-computer innovation business completed a systematic advancement from capability building to industrial collaboration in 2025,marking a landmark year. The new round of industrial transformation in 2026 will once again reshape the development landscape, as "AI+" has moved fromconcept to practice, deeply penetrating every scenario and every field. As a globally leading AI cognitive intelligent spaceevolutionservice provider, ZKTeco has been deeply cultivating the fields of AI applications and biometrics for nearly two decades, andnow,with a forward-looking vision, is strategically deploying brain-computer interface and emotion cloud technologies. The Companyconsistently focuses on BioCV TinyML edge model R&D, deeply integrating spatial understanding, autonomous decision-making, andelectroencephalogram (EEG) signal processing. The Company will continue to optimize brain-computer interaction performanceunderthe multi-factor collaboration of "people, vehicles, objects, and environment", laying the foundation for the wearable and scenario-based applications of non-invasive brain-computer interfaces. ZKTeco identifies individuals through multimodal biometric technology, from machine vision technology to attentive services,and further to brain-computer interfaces perceiving emotions. The Company always takes technological integration as its foundationand scenario co-existence as its direction, deepening the integrated application of AI cognitive space and brain-computer interactionplatforms, adhering to its original aspiration of reconstructing the meaning of life, and will not let down any investors! Finally, we always believe that all technologies must have their capability boundaries verified step by step in real-world scenarios.While technological breakthroughs are indeed exciting, every step of commercialization must carefully calculate costs andreturns. The essence of the AI era is the digitalization of experience, and the answers provided by AI often remain at an average level. As a globalenterprise founded on innovation, business development, whether strategic or tactical, must ultimately "grow" organically from therecognition of end customers. Growth c