Hangzhou Hikvision Digital Technology Co., Ltd.
2022Annual Report
April 15, 2023
To Shareholders
The year 2022 was the twenty-first year since the establishment of the Company. It also
witnessed the first negative profit growth since our creation.The Companyis experiencing manynew
challenges in a complex and changing environment. However, challenges are inevitable in the growth
and development of businesses. Some challenges have made the Company more confident and
capable of addressing future challenges.
Technology is the first productive force. Recognizing the growing impact of technological
advancement on all aspects of our life, the Company embraces technological changes and follows
technological development trends. AIoT is a field the Company will continue to develop for a long
time as it covers many industry scenarios, technologies and a wide range of products from detectors
to system solutions. Today, customers focus on not only the type of objects, but also their
characteristics, status or composition, and this change of consumer demand poses challenges and
opportunities for us. The development of AI technology has provided us with greater capability and
easier access to more data of objects, enabling us to explore wider application of data with AIoT.
Believingthatsuccesswillcomewhenconditionsareripe,theCompanywillcontinuetoinvestfirmlyinperception,AI,bigdataandcloudcomputingtechnologies.Welookforwardtomorebreakthroughsinglobaltechnology, and willstrivetograspthebusinessopportunitiesthateachtechnologicalchangepresents.
Digital transformation is a long-term process that requires continuous improvement. We will
continue to optimize our operational model or process by adopting digital technologies in various
business scenarios of the Company and our partners. Digital transformation is crucial for our growth
and the development of new market opportunities, but it cannot be done overnight. We will start with
little practical work and steadily forges ahead toward our goal.
The past five years has been challenging for many businesses due to the rise of international
protectionism and the trend of counter-globalization, and we are no exception. However, we have
also seen some growth. There is still a tremendous market out there and we will adapt to the
circumstances, further strengthen our marketing and service systems, and improve our supply chain
based on market trends and business development needs.
The successful IPO of EZVIZ Network marks a milestone in the Company's internal
entrepreneurial innovation and an achievement in our path to maintaining entrepreneurial and
innovative vitality. Being customer-centric and creating value for customers are always the
Company's original mission and core values, regardless of the business model. Whether in good or
bad times, we remain open, transparent and honest.
At last, I would like to express my sincere gratitude to all shareholders for your trust in the
management team!
See far, go further!
Board of Directors of Hangzhou Hikvision Digital Technology Co., Ltd.
April, 2023
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.
Chen Zongnian, 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 meetingof the Board of Directors
is set out as follows: Board of Directors based on the Company’s current total share capital of
9,363,932,789 shares, the Companyproposed to distribute cash dividend of RMB7 (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 2022 Annual Report ("2022 年年度报
告"), and the published announcements in the Chinese version shall prevail. The complete published
Chinese 2022 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) Geopolitical environment risk: The current global geopolitical uncertainty has greatly increased, and
the operating environment in certain regions has deteriorated. The Company will adjust its marketing
resources based
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