Hangzhou Hikvision Digital Technology Co., Ltd.
2023 Half Year Report
January to June 2023
August 19, 2023
Section I Important Notes, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and senior management of
Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as the "Company") hereby
guarantee that the information presented in this report shall be together be wholly liable for the
truthfulness, accuracy and completeness of its contents and free of any 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 half year report are
authentic, accurate and complete.
All directors of the Company have attended the board meeting to review this report.
The half year proposalofprofit distributionor share distributionfromcapitalreservepassedupon
deliberation at the meeting of the Board of Directors (not applicable): The Company will not
distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve during the
current reporting period.
Note:
This document is a translated version of the Chinese version 2023 Half Year Report (“2023 年半年
度报告”), and the published announcements in the Chinese version shall prevail. The complete
published Chinese 2023 Half Year Report may be obtained at www.cninfo.com.cn.
Please read the full half year 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 on business opportunities, but if the geopolitical environment get worse, the Company's
operations in certain countries and regions may be adversely affected.
(2) Global economic downside risk: The economic growth of some overseas countries slows down, the
potential risks such as economic fluctuation and debt default in various regions are difficult to eliminate.
Atthesametime, the domestic economy is switchingtoa new development modeand its pace ofrecovery
needs to be further observed. The Company disperses the operation risk of a single region with a wide
business layout. But theCompany's business will alsobe impacted if thereis a global economicrecession.
(3) Supply chain risk: The global supply system is being undermined by politics. The Company has been
making efforts to build a diversified supply chain and optimize inventory adjustment and control.
However, if systemic risks arise in the global supply chain, the Company's operating capabilities may be
affected
(4) Technology upgrading risk: AI, big data, cloud computing, edge computing and other technologies
develop rapidly, and the iteration speed of science and technology application is fast. If the update and
change of cutting-edge technology cannot be closely tracked and the innovative development of business
cannot be realized quickly, the uncertainty of the Company's future development will increase.
(5) Legal and compliance risk: The world's multilateral trading system is facing adverse impacts. The laws
and regulations of various regions that need to be complied with for business activities are very
complicated. The Company constantly strengthens the construction of legal compliance system since
China and overseas countries have stricter data supervision and business compliance requirements. If the
Company's legal compliance capabilities cannot keep up with the situation, it will bring adverse impacts
on the Company's operations.
(6) Riskofexchange rate fluctuation: TheCompanycarries out operations in various countries andregions,
mainly settled in non-RMB currency. Exchange rate fluctuations could have impact on foreign exchange
exposures arising out of sales, procurement and financing, which could likely affect the profitability level
of the Company.
(7) Financial risk caused by the decline of customers' ability to pay: The enterprises' financial liquidity is
negatively impacted by the macroeconomic downturn. The Company has accumulated a certain amount
of cash reserves due to its stable business operation, and the financing cost is low. If the overall liquidity
riskofthe marketincreases, it willadverselyaffect theCompany's account receivables duetothe payment
collection speed of the Company may slow down.
(8) Risk of internal management: The continual expansion of business scale, the continuous increase of
new prod
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