Hangzhou Hikvision Digital Technology Co. Ltd.
2024 Annual Report
April 19 2025Hikvision 2024 Annual Report
To Shareholders
In response to the complicated and dynamic business climate in 2024 the Company tapped into
the potential of the Chinese security market and more actively expanded its security business overseas
while remaining committed to scenario-based digitization and innovative businesses. In 2024 the
combined revenue of our overseas main businesses and innovative businesses surpassed the revenue
of our domestic main businesses that is the total revenue of three businesses groups - PBG EBG
and SMBG - for the first time in our history.The Company is determined to bolster its investment in R&D. Seeing the rise of large AI models
we actively expand the development of AIoT-powered large multimodal model technology. It is our
business tenet to identify target markets align with the advancement of cutting-edge technology and
incorporate new technologies into software and hardware products. The Company will keep growing
its product lines and increasing application scenarios based on its persistent efforts to develop sensing
technologies utilizing full electromagnetic waves mechanical waves and multi-band fusion. Since
2018 the Company has maintained a steady increase in R&D investment actively responding to the
continuously deteriorating global operating environment through technological innovation.The Company will readily adapt itself to the times. In the years to come we will shift our focus
from faster expansion to higher efficiency ensuring strong performance for all existing businesses.Moreover the Company plans to modify its operating mechanism and optimize its organizational
structure to better adapt to changes in the external business environment while leveraging digital
technology to increase operational efficiency both internally and externally.The Company's commitment to global development will not change. Amid the ongoing political
and economic turbulence worldwide the Company is subject to standing severe repression in some
foreign countries and is expected to face new challenges in the future. However we are resolute in
consistently increasing our investment in overseas marketing and expanding the percentage of
overseas revenue – thanks to the indomitable spirit we have developed over the last 20 years in
overseas market development.The Company will always be customer-centric and create value for customers regardless of how
1Hikvision 2024 Annual Report
the business environment changes. Finally we wish to express our gratitude to all shareholders for
their trust in and support for the Company!
See far go further!
Board of Directors of Hangzhou Hikvision Digital Technology Co. Ltd.April 2025
2Hikvision 2024 Annual Report
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.Hu Yangzhong 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 meeting of the Board of Directors
is set out as follows: Based on the total share capital (excluding shares held in the Company's
repurchase account) as of the record date for the implementation of the 2024 annual profit distribution
plan the Company proposed to distribute cash dividend of RMB7.00 (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 2024 Annual Report ("2024 年年度报
告") and the published announcements in the Chinese version shall prevail. The complete published
Chinese 2024 Annual Report may be obtained at www.cninfo.com.cn.
3Hikvision 2024 Annual Report
Please read the full annual report and pay particular attention to the following risk factors:
1) Domestic Economic Transformation Risks: The domestic market is undergoing continuous adjustments in
fiscal spending and real estate investment leading to a need for improvement in societal expectations for
economic development. Additionally some overseas nations are implementing trade protectionist policies
which pose challenges to the export capabilities of domestic enterprises. The economy remains in a transitional
phase of upgrading and transformation. The Company empowers economic and social digital transformation
with AIoT technologies and products driving new developments in productivity. However the process of
transformation and upgrading cannot be achieved overnight and long-term structural pressures on the economy
and society persist. Fluctuations during this process will continue to impact the company's operations.
2) Global Economic Downturn Risks: Growth in key economies has decelerated regional development remains
unbalanced worldwide and macroeconomic volatility persists. The Company mitigates operational risks in
specific regions through its diversified business footprint tailoring strategies to local conditions. However
should a global economic recession occur the company's operations may still face material impacts.
3) Geopolitical Environment Risks: The global political system is evolving toward multipolarity with stability
and predictability continuously diminishing while conflictsin certain regions persist unresolved. In recent
years the Company has strengthened risk management and enhanced response capabilities adjusting resource
allocations in line with operational environments. Nevertheless should geopolitical conditions deteriorate
abruptly the Company's operations in certain countries and regions may still face adverse impacts.
4) Technological Obsolescence Risks: Technologies such as artificial intelligence big data the Internet of
Things (IoT) and cloud computing are advancing rapidly with iterative updates accelerating. The Company
has established a certain level of expertise in areas such as IoT sensing AI and big data and has maintained
technological advancement through extensive commercial practices. However if the Company fails to closely
monitor the evolution of cutting-edge technologies or maintain innovation and expansion within its
technological framework the uncertainty risks associated with future development will intensify.
5) Internal Management Risks: The Company's expanding operational scale continuous diversification of
products and services and increasing internal complexity are elevating new challenges to governance
capabilities. Through institutionalization and process standardization the Company codifies management
expertise while emphasizing talent pipeline development. However should management capabilities fail to
keep pace with business growth operational performance could be compromised.
4Hikvision 2024 Annual Report
6) Financial Risks Caused by Customers' Reduced Ability to Pay: The liquidity of commercial transactions
is susceptible to economic volatility with the Company's capital turnover being closely tied to the operational
conditions of partners across the value chain. While maintaining robust collection mechanisms prudent
operations and substantial cash reserves with low financing costs the Company may still face slower payment
recovery and operational disruptions should overall market liquidity risks escalate.
7) Legal and Compliance Risks: Multilateral trade mechanisms are significantly impacted by political events
and the laws and regulations that commercial activities must comply with are complex and vary from country
to country. There is a trend towards stricter data regulations globally which poses higher demands on the
Company's legal and compliance capabilities. The Company has established an effective legal and compliance
management system through practical experience and has undergone multiple business tests domestically and
internationally. However if the Company's legal and compliance capabilities cannot keep up with the evolving
situation it may still have a negative impact on operations.
8) Supply Chain Risks: Some countries are using supply chains as a means of international competition and the
global supply system has been continuously impacted by geopolitical events in recent years. Despite efforts to
establish diversified supply networks and properly manage inventory the Company may still be affected by a
widespread supply chain disruption which could impact its business stability.
9) Cybersecurity Risks: The Company consistently emphasizes cybersecurity capabilities and system
development actively implementing measures to enhance product and system security. However incidents
such as computer viruses malware and hacker attacks may still occur potentially damaging the Company's
systems or products and creating cybersecurity vulnerabilities.
10) Exchange Rate Volatility Risks: The Company conducts operations in multiple countries and regions
overseas primarily settling transactions in foreign currencies. While employing reasonable financial
instruments for risk hedging inherent foreign currency exposure from sales procurement and financing
activities remains. Exchange rate fluctuations may consequently affect the Company's financial performance.
11) Intellectual Property Risks: The Company maintains substantial R&D investments yielding numerous
technological achievements supported by relatively comprehensive intellectual property protection measures.Nevertheless risks of intellectual property disputes and infringement persist.The above-mentioned alerts do not include all the potential risks for the Company. Investors are advised to invest
with caution.
5Hikvision 2024 Annual Report
CONTENTS
To Shareholders ..................................... 1
Section I Important Notes Contents and Definitions... 3
Section II Corporate Profile & Key Financial Data ... 8
Section III Management Discussion and Analysis ..... 14
Section IV Corporate Governance ................... 143
Section V Environmental and Social Responsibility . 181
Section VI Significant Events ..................... 182
Section VII Changes in Shares and Information abou. 204
Section VIII Information of Preferred Shares ...... 217
Section IX Bonds .................................. 218
Section X Financial Report ........................ 219
Section XI Documents Available for Reference ...... 369
6Hikvision 2024 Annual Report
Definitions
Term Definition
Reporting Period From January 1 2024 to December 31 2024
Articles of Associations Articles of Associations for Hangzhou Hikvision Digital Technology Co. Ltd
Hikvision the Company our
Hangzhou Hikvision Digital Technology Co. Ltd.Company the Group
China Electronics Technology Group Corportation the actual controller of the
CETC
Company
China Electronics Technology HIK Group Ltd. the controlling shareholder of the
CETHIK
Company
Hangzhou EZVIZ Network Co. Ltd.(According to the context also refers to the
EZVIZ EZVIZ Network
corresponding business)
Hangzhou Hikrobot Technology Co. Ltd. (According to the context also refers to
HikRobot Robotic business
the corresponding business)
Shijiazhuang Sensortech Smart Technology Ltd. (According to the context also
Sensortech HikAuto
refers to the corresponding business)
HikMicro Micro Sensing Hangzhou Hikmicro Sensing Technology Ltd. (According to the context also refers
Thermal imaging business to the corresponding business)
HikSemi HikStorage Wuhan Hikstorage Technology Ltd. (According to the context also refers to the
Storage business corresponding business)
Hangzhou Hikimaging Technology Ltd. (According to the context also refers to the
HikImaging
corresponding business)
Hangzhou Hikfire Technology Ltd. (According to the context also refers to the
HikFire
corresponding business)
HikRayin Rayin Hangzhou Rayin Technology Ltd. (According to the context also refers to the
HikSecurityCheck corresponding business)
A long investment cycle business prospects uncertain has the high risk and
uncertainty in need for direct or indirect investment in exploration in order for the
Company to timely enter into new areas of business. Initially disclosed in
Announcement about Management Measures for Core Staff Investment in Innovative
Innovative Business
Business (www.cninfo.com.cn).In this report innovative business also refers to EZVIZ HikRobot HikAuto
HikMicro HikSemi HikImaging HikFire Rayin and their related business or
products.
7Hikvision 2024 Annual Report
Section II Corporate Profile & Key Financial Data
I. Corporate Information
Stock abbreviation HIKVISION Stock code 002415
Stock exchange where the shares of the Company
Shenzhen Stock Exchange
are listed
Name of the Company in Chinese 杭州海康威视数字技术股份有限公司
Abbr. of the Company name in Chinese 海康威视
Name of the Company in English (if any) HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO. LTD
Abbr. of the Company name in English (if any) HIKVISION
Legal representative Hu Yangzhong
Registered address No. 555 Qianmo Road Binjiang District Hangzhou Zhejiang Province
Postal code of Registered address 310051
The Company was listed on the Shenzhen Stock Exchange on May 28th 2010. The
original registered address was No. 36 MachengRoad Xihu District Hangzhou
Changes in the Company's registered address
Zhejiang Province. In 2016 the Company's registered address was changed to No.
555 Qianmo Road Binjiang District Hangzhou Zhejiang Province.
Business address No. 518 Wulianwang Street Binjiang District Hangzhou
Postal code of Business address 310051
Company website www.hikvision.com
E-mail market@hikvision.com; ir@hikvision.com
II. Contacts and Contact Information
Board Secretary Securities Affairs Representative
Name Feng Wei Cai Chao
No. 518 Wulianwang Street Binjiang District No. 518 Wulianwang Street Binjiang
Address
Hangzhou District Hangzhou
Tel. 0571-88075998 ; 0571-89710492 0571-88075998 ; 0571-89710492
Fax 0571-89986895 0571-89986895
E-mail hikvision@hikvision.com hikvision@hikvision.com
III. Information Disclosure and Place of the Report
The securities exchange website for the disclosure of the Annual
www.szse.cn
Report
Securities Times China Securities Journal Shanghai securities
Media and website for the disclosure of the Annual Report
Journal www.cninfo.com.cn
Place where the Annual Report is available for inspection Office of the Board of Directors of the Company
8Hikvision 2024 Annual Report
IV. Company Registration and Alteration
Unified Social Credit Identifier 91330000733796106P
The Company's business scope covers: licensed items: production of Class II
and Class III radiation devices; sales of Class II and Class III radiation devices;
radioisotope production (except the radiopharmaceuticals for positron emission
computed tomography ); sales of Class II Class III Class IV and Class V
radioactive sources; engineering and construction activities; type II value-added
telecommunications services; online data processing and transaction processing
services (operating e-commerce); Internet information services; general
aviation services. (as for the items which by law are subject to approval
business activities can be carried out only after having been approved by the
relevant departments and the specific operation items are subject to the terms
of the approval). General items: manufacturing of digital video surveillance
systems; sales of digital video surveillance systems; manufacturing of security
equipment; sales of security equipment; manufacturing of IoT equipment; sales
of IoT equipment; manufacturing of intelligent unmanned aerial drones; sales
of intelligent unmanned aerial drones; manufacturing of computer software and
hardware and peripherals; wholesale of computer software and hardware and
auxiliary equipment; manufacturing of communication equipment; sales of
communication equipment; manufacturing of network equipment; sales of
network equipment; manufacturing of display devices; sales of display devices;
manufacturing of intelligent mobile equipment; sales of intelligent mobile
Changes in principle business activities since the
equipment; manufacturing of auto parts and accessories; wholesale of auto parts
Company was listed (if any)
and accessories; manufacturing of electric signal appliances and devices; sales
of electric signal appliances and devices; manufacturing of mechanical and
electrical equipment; sales of mechanical and electrical equipment;
manufacturing of special labor protective supplies; sales of special labor
protective supplies; sales of electronic products; sales of digital cultural and
creative technological equipment; sales of second-class medical device; sales of
charging pile; technical services technical development technical consultation
technical knowledge exchange technology transfer and technology promotion;
software development; development of network and information security
software; information system integration services; computer system services;
research and development of IoT technologies; IoT technology services; IoT
application services; big data services; data processing and storage support
services; security system monitoring services; security technology defense
system's design and construction services; electronic and mechanical equipment
maintenance (excluding special equipment); general equipment repairmen;
centralized fast-charging station; parking lot services; digital cultural and
creative content application services; health consulting services (excluding
diagnostic and treatment services); environmental protection monitoring;
marketing planning; business training (excluding education and vocational
training that require licensing); import and export of goods; import and export
9Hikvision 2024 Annual Report
of technology (Except for items which by law are subject to approval the
Company can determine and carry out operational activities in accordance with
the law by virtue of its business license).Changes of controlling shareholders of the
No change during the reporting period
Company (if any)
V. Other Relevant Information
Accounting firm engaged by the Company
Name of the accounting firm Deloitte Touche Tohmatsu Certified Public Accountants LLP
Business address of the accounting firm 30F Bund Center 222 Yan An Road East Shanghai
Name of accountants for writing signature Chen Yan Liu Ying
Sponsor institution engaged by the Company to continuously perform its supervisory function during the Reporting
Period
□ Applicable √ Inapplicable
Financial advisor engaged by the Company to perform the duties of continuous supervision during the reporting
period
□ Applicable √ Inapplicable
VI. Key Accounting Data and Financial Indicators
Whether the Company performed a retrospective adjustment or restatement of previous accounting data
√ Yes □ No
Reasons for retrospective adjustment or restatement of previous accounting data
√ Consolidation under Common Control
Unit: RMB
YoY
2023 Change 2022
2024(%)
Before the After the After the Before the After the
adjustment adjustment adjustment adjustment adjustment
Revenue (RMB) 92495525118.30 89339856855.68 89341177610.40 3.53% 83166321681.14 83167244665.69
Net profit attributable to
shareholders of the 11977327023.54 14107621359.66 14107726276.26 -15.10% 12837704462.49 12837782699.68
Company (RMB)
Net profit attributable to
shareholders of the
Company excluding 11814861641.16 13665962325.65 13665962325.65 -13.55% 12331058280.04 12331058280.04
non-recurring gains and
losses (RMB)
Net cash flows from 13264092022.73 16623254305.92 16622209721.05 -20.20% 10164135382.38 10165498912.07
operating activities
(RMB)
10Hikvision 2024 Annual Report
YoY
2023 Change 2022
2024(%)
Before the After the After the Before the After the
adjustment adjustment adjustment adjustment adjustment
Basic earnings per share
1.2971.5201.520-14.67%1.3701.370
(RMB/share)
Diluted earnings per
1.2971.5201.520-14.67%1.3701.370
share (RMB/share)
Weighted average ROE 15.34% 19.64% 19.64% -4.30% 19.62% 19.62%
YoY
At December 31 2023 Change At December 31 2022
At December 31
(%)
2024
Before the After the After the Before the After the
adjustment adjustment adjustment adjustment adjustment
Total assets (RMB) 132016200156.14 138848007548.55 138858122879.55 -4.93% 119234833850.69 119244597584.64
Net assets attributable to
shareholders of the 80668661062.88 76354265540.14 76354265540.14 5.65% 68389337524.32 68389337524.32
Company (RMB)
The Company's net profit before and after deducting non-recurring gains and losses in the last three fiscal years is
negative and the audit report of the most recent year shows that there is uncertainty about the Company's ability to
continue operations
□ Yes √ No
Net profit before and after deducting extraordinary gains and losses is negative
□ Yes √ No
The total share capital of the Company as of the previous trading day of the annual report disclosure:
The total share capital of the Company as of the previous trading day of the annual report disclosure
9233198326
(share)
Fully diluted earnings per share calculated with the latest share capital
Fully diluted earnings per share (RMB/share) calculated with the latest share capital 1.297
VII. Differences in Accounting Data between Domestic and Overseas Accounting Standards
1. Difference in the Financial Report of Net Profits and Net Assets According to the Disclosure of
International Financial Reporting Standards and China Accounting Standards
□ Applicable √ Inapplicable
There is no difference in the financial report of net profits and net assets according to the disclosure of International
11Hikvision 2024 Annual Report
Financial Reporting Standards (IFRS) and China Accounting Standards in the reporting period.
2. Difference in the Financial Report of Net Profits and Net Assets According to the Disclosure of Overseas
Accounting Standards and China Accounting Standards
□ Applicable √ Inapplicable
There is no difference in the financial report of net profits and net assets according to the disclosure of Overseas
Accounting Standards and China Accounting Standards in the reporting period.
3. Explanation of the Differences in Accounting Data under Domestic and Overseas Accounting Standards
□ Applicable √ Inapplicable
VIII. Key Quarterly Financial Indicators
Unit: RMB
1st Quarter 2nd Quarter
3rd Quarter 4th Quarter
(Restated) (Restated)
Revenue (RMB) 17817550424.43 23391545781.93 23782371582.09 27504057329.85
Net profit attributable to shareholders of the
1915795733.793148323123.503043629637.173869578529.08
Company
Net profit attributable to shareholders of the
Company excluding non-recurring gains 1760276683.16 3482729220.56 2908130076.06 3663725661.38
and losses
Net cash flows from operating activities -3965909130.83 3776273089.93 2793361115.70 10660366947.93
Note: During the year business combination(s) under common control occurred and the quarterly data was
retrospectively adjusted in accordance with the accounting standards for business enterprises.Whether there is significant difference between the above individual or aggregate financial indicators and that of
what disclosed in the quarterly report half-year report
□ Yes √ No
IX. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Inapplicable
Unit: RMB
Item 2024 2023 (Restated) 2022 (Restated)
Profits or losses from disposal of non-current assets (including the
-14862769.68-10507192.80-18617582.10
write-off for the impairment provision of assets)
The government subsidies included in the current profits and losses
(excluding the government subsidy that are closely related to the
Company's normal business operations in line with national 566828064.11 518953527.79 726269569.92
policies and regulations enjoyed in accordance with the
determined standards and have a continuous impact on the
12Hikvision 2024 Annual Report
Item 2024 2023 (Restated) 2022 (Restated)
Company's profit and loss)
Apart from the effective hedging activities related to the company's
normal business operations the fair value changes in financial
assets and financial liabilities held by non-financial enterprises as 41760525.08 -67516075.30 -99112871.09
well as the gains or losses from the disposal of these financial
assets and liabilities.The current period net profit or loss of the subsidiary from the
beginning of the period to the date of merger under common -295677.15 218576.25 162994.14
control
Gains and losses from debt restructuring 101109433.26 - -
Share-based payment expenses recognized in one-time due to the
-471167293.91--
cancellation or modification of the equity incentive plan
Investment gains and losses on disposal of subsidiaries and other
--3550851.71
business units
Gains and losses from a business combination achieved in stages
-116433610.45-
not under common control
Other non-operating income and expenditures except the items
53766054.0969942462.9672446008.81
mentioned above
Other profit or loss items that meet the definition of non-recurring
-1106664.51-
profit or loss
Less: Impact of income tax 20093234.14 64745616.43 74392826.66
Impact of the minority interests (after tax) 94579719.28 122122006.82 103581725.09
Total 162465382.38 441763950.61 506724419.64
Details of other gain/loss items that meet the definition of non-recurring gains and losses:
□ Applicable √ Inapplicable
The Company did not have other gain/ loss items that meet the definition of non-recurring gains and losses.Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-
recurring Gains and Losses> as a recurrent gain/loss item
□ Applicable √ Inapplicable
The Company did not classify an item as a non-recurring gain/loss according to the
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and
Losses> into a recurrent gain/loss item.
13Hikvision 2024 Annual Report
Section III Management Discussion and Analysis
I. The Industry Situation and Main Business of the Company during the Reporting Period
1. Business Overview:
Artificial intelligence (AI) is undergoing revolutionary changes as the advancement of large language models
(LLMs) has provided a significant boost to the widespread use of AI and the rise of large multimodal models (LMMs)
has accelerated the deep fusion of the physical and digital worlds. Amid this technological transformation Hikvision
remains committed to expanding the boundaries of IoT perception based on its expertise in the sector of AI-powered
Internet of Things (AIoT) promote the application of LMMs and establish an end-to-end loop of applications with
big data and software capabilities in an effort to facilitate the digital transformation of society.IoT perception technology which records everything digitally serves as the "bridge" connecting the
physical world with the digital. With visible light at the core Hikvision has built a multi-dimensional perception
system that encompasses the electromagnetic spectrum from millimeter waves infrared rays lasers and X-rays to
ultraviolet rays and integrates sound waves vibrations temperature/humidity pressure magnetism and other
sensing technologies. This leads to a complete IoT data portal. The persistent development of multi-dimensional
perception capabilities has increased the breadth of data acquisition and the continuous upgrade of perception
product performance has improved the depth and accuracy of data rendering everything perceptible and accessible.AI which converts raw perception records into neatly structured data and interprets them is the key to
understanding scenarios and businesses. Abundant IoT perception materials provide a high-quality data
foundation for the training of large models powering the iteration and improvement of Hikvision's AI algorithms.Hikvision's large models - Guanlan has developed capabilities related to large IoT perception models large language
models and large multimodal models to serve the technological chain from perception to cognition. In the realm of
perception Guanlan enables accurate analysis and comprehension of IoT data; in terms of cognitive capabilities
knowledge-enhanced large language models allow it to significantly improve the capabilities of semantic
understanding predictive inference and optimized decision-making in complex scenarios.Big data and software which enable the organization and induction of IoT data are the secret to
unleashing the value of IoT data. Leveraging its profound expertise in cloud computing big data and other
14Hikvision 2024 Annual Report
technical domains Hikvision has built a capability architecture that "integrates cloud and edge IoT and information
network digitalization and intelligence" to support efficient data processing and analysis. Hikvision's unified
software technology architecture supports a component-based approach to software development. The vast software
component library and high component reuse rate greatly reduce the development and maintenance costs for users
helping with agile development and rapid iteration of software applications in different industries.Hikvision has been leading the way in the AIoT sector for over two decades. It has gradually built a sound
technical framework centered on IoT perception AI and big data. Based on this it has developed more than 30000
different AIoT products. The Company serves two business segments: security and scenario-based digitization and
fuels the digital transformation of the whole society via three business groups and eight innovative businesses as
well as two marketing systems - domestic and overseas.Under the leadership of the Enterprise Business Group (EBG) the scenario-based digitization business has
taken shape across the organization in recent years unleashing new growth space for the Company. The rise in the
proportion of overseas revenue results in a more balanced core business structure indicating the ongoing expansion
of Hikvision's worldwide brand power. Innovative business has maintained rapid development which constantly
develops new capabilities and injects fresh momentum into the Company advancing Hikvision's steady pathway
towards AIoT. Hikvision will continuously reinforce its advantages in multi-dimensional perception technology
15Hikvision 2024 Annual Report
enhance the integration and innovation of large models and industry expertise and unlock the value of IoT data with
more robust big data capabilities. In doing so the Company hopes to contribute to precise and convenient social
governance sound and efficient business operations and a smart and healthy lifestyle continuing to lead the new
future of AIoT.
2. Product System
With video perception technology as the starting point Hikvision continues to expand its IoT perception
capabilities in more dimensions. Over the past more than 20 years it has built a multi-dimensional perception system
that encompasses electromagnetic waves and mechanical waves and integrates physical sensing technologies based
on temperature humidity pressure and magnetism. With an extensive perception capacity and multi-dimensional
perception integration capabilities Hikvision has established an IoT perception technology platform that supports
growing innovative applications in the field of scenario-based digitization.Hikvision has seen its AI technology continuing to develop and its software and hardware products embracing
greater intelligence. In 2023 the Guanlan Large Model was released. Based on the Guanlan Hikvision's AI
algorithm capabilities have expanded from visual algorithms to multimodal algorithms catalyzing multi-
dimensional upgrades of software and hardware applications.Guanlan pushes the limits of perception intelligence: Hikvision's large IoT perception models include large
vision optical fiber audio and X-ray models. Thanks to these large models target identification tasks in
complicated contexts have seen a notable rise in sensitivity and accuracy. For instance the large vision model has
reduced false alarms by 90% in perimeter prevention the large millimeter wave model has achieved an 86%
reduction in missed detection of prohibited goods via safety gates the large optical fiber model for auscultation has
a relative reduction of 72% in false alarms and the large X-ray model has reduced missed detection by 75% in the
recognition of prohibited goods.Guanlan expands the boundaries of perception capabilities: Large multimodal models allow for the
detection and identification of everything through natural language definitions. Based on multimodal search image
features and text features are aligned to enable easy text search. The perception and inference capabilities of large
multimodal models can be used to disrupt the conventional development paradigm of visual perception plus artificial
logical inference achieve end-to-end inference through text description and facilitate the understanding of complex
events.
16Hikvision 2024 Annual Report
Guanlan increases cognitive intelligence applications: In the field of cognitive intelligence the large
language model serves as the "brain" which combines industrial expertise to develop a specialized agent
empowering the digital upgrade of the industry. A new paradigm of human-machine interaction driven by natural
language is established to allow for accurate response to fuzzy needs. Semantic understanding and logical inference
capabilities are strengthened for accurate knowledge extraction and dynamic matching. All of these advancements
lead to vertical applications such as traffic congestion diagnosis wind power prediction and supply chain
scheduling optimization.Hikvision continues to improve and expand its IoT perception technology reserves and raise the intelligence
level of its products. In response to scenario-based needs Hikvision has worked hard to develop innovative technical
solutions and efficient and practical products. This results in a comprehensive portfolio of AIoT software and
hardware products that represent viable pathways to digital transformation across society.
2.1 New Digital Products
Starting with visible light perception Hikvision continues to push the boundaries of perception technology. It
combines its diverse array of perception technologies such as radar perception infrared perception X-ray perception
spectrum perception laser perception and sound wave perception with extensive product engineering capabilities
to consistently introduce innovative digital products that satisfy market demands. The Company's innovative digital
products make digital information that was previously impossible or difficult to perceive readily accessible - from
the microstructure to the composition of a substance from the height quantity to the volume of a material from the
running speed vibration temperature to the pressure sound of a device from the appearance flaws to the internal
defects of a product from the monitoring data of public utilities to natural environment... These products help
17Hikvision 2024 Annual Report
address specific problems on the site in each real-world scenario and fuel the digital transformation of thousands of
industries.
2.1.1 Visible light perception
Hikvision's vast expertise in visible light imaging serves as the foundation for its ongoing product innovation.Through hardware structure design and algorithm capability optimization it develops digital solutions for scenarios
beyond security represented by manufacturing environmental monitoring and equipment management.In the element collection stage Hikvision integrates visible light imaging with data from sensors such as
visibility meters GNSS (global navigation satellite systems) accelerometers and gyroscopes to develop multi-
dimensional perception capabilities; in the intelligent analysis stage capabilities such as high sensitivity high
accuracy and convenient configuration are enabled leveraging breakthroughs in the application of large vision
models; and in the stage of scenario application through new materials and processes like self-cleaning technology
remote automatic adjustment technology and vibration-absorbing materials Hikvision has ensured the adaptability
of products to special environments and created truly easy-to-operate and maintenance-free smart cameras.Visibility meters: On expressways and highways reduced visibility increases the risk of traffic accidents.Individual visibility sensors are susceptible to rain snow dust water mist and other environmental factors and
when anomalous data is produced maintenance costs might be considerable. In order to precisely detect changes in
mist and eliminate false alarms Hikvision uses visibility detecting sensors that meet national standards in
conjunction with sensors for temperature humidity air pressure and rainfall. Moreover spider-web-free auto
18Hikvision 2024 Annual Report
rotating and wiper features are included to enable self-cleaning and eliminate the need for maintenance
guaranteeing long-term stable operation.Cameras for robotic arm collision avoidance: As industrial robotic arms generate huge energy when running
unauthorized access to the operating area may cause safety accidents. In three-dimensional space traditional
protective measures like fences and gratings are ineffective in providing complete protection. Hikvision's camera
for robotic arm collision avoidance is powered by binocular stereo vision imaging technology and embedded with
a large model algorithm for people categorization and identification. The camera can accurately identify individuals
with the use of billions of data sets for preliminary training and algorithm optimization based on the safe operating
scenarios of robotic arms. When an individual enters and remains in a robotic arm's operating area the camera will
respond quickly with a prompt alarm to avoid human-machine collision caused by improper operation of the robotic
arm guaranteeing scenario-specific safety with high accuracy and high reliability.
19Hikvision 2024 Annual Report
Anti-vibration and anti-shake cameras: Apart from steel manufacturing and overhead crane remote control
Hikvision has improved its range of anti-vibration and anti-shake cameras for application at ports and rail yards
through continued technological innovation. For container lifting the Company has launched a series of anti-
corrosion and anti-vibration cameras that use wrap-around vibration-reducing materials and patented self-locking
vibration-resistant lenses to withstand the strong impact from hoists. These cameras are placed on four corners of a
hoist to accurately present the details of lockholes assist in remote control and efficient stacking and improve the
throughput efficiency of terminals. Regarding gantry cranes at ports Hikvision provides an innovative self-
stabilizing camera that is equipped with a hydraulic damping bracket structure. With a mobile perimeter algorithm
based on large models the camera can monitor individual intrusion in an accurate and thorough manner and offer
24/7 visual support for remote crane control thereby ensuring port safety and operational efficiency.
20Hikvision 2024 Annual Report
High-precision measurement cameras for visual structures: Based on optical imaging principles and visual
imaging technology the Company has introduced a series of high-precision measurement cameras for visual
structures. The camera is designed to image the target and calculate the target's pixel change. Combined with a pre-
calibrated matrix algorithm it converts pixel displacement into physical space displacement to enable contactless
measurement. The solution outperforms traditional measurement approaches with visible outcomes easy
installation and easy maintenance. In particular the vision‐based displacement measurement camera applies a sub-
pixel vision‐based displacement detection algorithm to monitor the target pixel changes on the target object and
calculate the horizontal and vertical displacement change values of the measured target at the target position. As an
alternative to hydrostatic level measurement it offers high-frequency detection of 50 times per second and
measurement with 0.1mm precision. The image-based crack meter with a built-in image-based intelligent crack
detection and measurement algorithm performs image preprocessing on the identified concrete cracks and
precisely measures crack width through edge finding outlining positioning segmentation point-by-point
measurement and other processes. Then crack encoding and a dynamic error calibration algorithm are used to track
crack changes in sub-millimeters point-by-point. This series of high-precision measurement cameras for visual
structures have wide uses such as bridge structural health monitoring building settlement and creeps of rail
providing intelligent solutions for the digital construction of infrastructure such as transportation facilities and
structures.
21Hikvision 2024 Annual Report
PDAs for scanning: Hikvision has launched a number of professional PDAs based on in-house specialized
scanners and a deep learning-based barcode recognition algorithm. These include: a long-distance scanner that
makes long-distance scanning easier under conditions like high shelves; a color barcode scanner that scans codes
and stores color images simultaneously in post stations improving the efficiency of finding express packages; a
volumetric measurer that makes cargo volume measurement more efficient during delivery package collection; PDA
made of novel materials which may withstand corrosion and be used for extended periods of time in corrosive
environments. There are also PDAs that serve many other purposes such as OCR (optical character recognition)
DPM (direct part mark) cold chain transport pressure ulcer treatment delivering data collection and intelligent
recognition solutions to logistics and express retail e-commerce healthcare manufacturing public services and
22Hikvision 2024 Annual Report
other industries.Ultra-depth-of-field 3D digital microscopes: The solution which features AI-based image augmentation and
high-resolution imaging allows blur-to-clear conversion with a single click. Without requiring a manual lens change
it has all-electric magnification switches that can be adjusted from 30 to 6000 times using the mouse and handle.The microscope's innovative ultra-depth-of-field synthesis and multi-mode 3D stitching technology enable it to
precisely restore the three-dimensional morphology of samples. This makes it a perfect tool for detecting
microscopic defects in industries like semiconductors lithium batteries and automobiles as well as an intelligent
upgrading method for scientific research industrial quality inspection and other fields.Industrial barcode scanners: Barcodes are becoming increasingly important and widely used in product
production circulation and quality control. HikRobot which specializes in industrial production process traceability
and logistics sorting has developed a full range of industrial barcode scanners including fixtures handheld guns
and barcode scanning modules. This series is equipped with a high-performance hardware platform and adopts a
deep learning-based decoding solution and multicolor light imaging optimization technology. This leads to a high
and stable recognition rate as well as exceptional decoding performance and efficiency in response to less readable
barcodes caused by broken needles ink overflow and other issues. These products are compact highly protective
23Hikvision 2024 Annual Report
and adaptable to a variety of challenging conditions. Most of them fulfill primary industrial protocols and
communication requirements.AI-based industrial cameras: Smart industrial camera is a kind of machine vision product that combines
image acquisition light source image processing and communication equipment. It is extensively used in many
industrial scenarios. HikRobot has developed a full lineup of smart cameras with built-in exclusive high-
performance machine vision processing algorithms. Upon easy setup the camera can perform visual inspection
without the need for programming thanks to its modular design and user-friendly interface. It is highly integrated
compact and easy to maintain making it ideal for installation in confined locations. In addition to detection for
presence front/back position size and defects the product is also embedded with AI registration and learning AI
character recognition/code reading and other edge learning and deep learning detection algorithms offering superior
functions and high cost performance in quality inspection for conventional equipment production and other
applications.
24Hikvision 2024 Annual Report
2.1.2 Millimeter wave perception
Millimeter wave radars which accurately measure a target's distance speed angle and other attributes have
become an indispensable technical means in many fields. Hikvision is dedicated to multiple technical routes such
as millimeter wave radars and radar-video fusion. Driven by dual wheels - technological innovation and scenario-
based demands the Company has introduced radar products beyond the realm of security. These offerings are widely
and creatively applied in transportation industrial manufacturing and other domains bolstering the intelligent
upgrade of all sectors.Millimeter-wave radars are widely used in the industrial field. In 2024 Hikvision applied its 1D–4D product
matrix in over 100 scenarios across industries like cement building materials chemicals steel metallurgy
electricity mining food breeding pharmaceuticals ports and other industries. These include high-temperature
clinker warehouses highly corrosive sulfuric acid tanks highly dusty lime silos explosion-proof coal silos low-
dielectric-constant PTA storage tanks strong-clutter alumina silos and low-temperature strong-water-vapor slag
grab cranes among other harsh settings. Hikvision's solution improves productivity and lowers operating costs by
addressing issues such as low accuracy of material measurement unstable detection inefficient spatial scanning
and high failure rate creating substantial value for a variety of sectors.Positioning radars: Precise positioning devices are necessary for the unattended operation of heavy equipment
including overhead cranes hoists and port machinery in industries such as coal mining steel metallurgy and ports.Large machinery become intelligent thanks to Hikvision's radars which can pinpoint their location with centimeter-
level precision. This enables accurate route planning and efficient operations. The positioning radar based on the
principle of secondary radar and a distributed control form facilitates incoherent full-duplex "communication +
perception." With direct wave measurements may be made more precisely and steadily over a greater distance. So
25Hikvision 2024 Annual Report
far the solution has been used in real-world scenarios such as slag grab cranes and material shed stacker-reclaimers.Fast imaging radars: Dynamic real-time material level monitoring is essential for industrial silos with high-
speed mass material flow. Overstock or understock may result from delayed feedback of material height or volume
which directly compromises safety and reduces the industrial chain's collaborative efficiency. To address this
Hikvision has iterated minute-level imaging radars and pioneered in applying optical communication technology to
millimeter-wave scanning imaging eliminating the need for physical slip ring structures in two-dimensional
scanning. Coupled with the calibration process that unifies two-dimensional and three-dimensional coordinates the
scanning time is greatly reduced from minutes to within 10 seconds. Thus the usage of imaging radars has expanded
from basic back-end monitoring services to front-end industrial control enabling users to manage material pile
warehouses equipment and statistical reports in a more accurate and intuitive manner. These radars are now used
in a variety of sectors including cement building materials food breeding metallurgy electricity and ports.Radar level meters: An 80GHz high-frequency radar that has a 120m range a 3° beam angle and ±2mm
precision can be used for continuous non-contact and accurate level measurement of solid materials and liquids in
industrial silos piles tanks pools and more. An AI-based false echo suppression algorithm integrated into the
device automatically scans and marks sources of interference such as stirring parts and beams in a tank intelligently
suppresses and shields them and outputs the exact level value on site. The Company operates a laboratory dedicated
to testing radar level meters in a range of hard working situations guaranteeing that its products maintain accurate
measurement under challenging settings including high temperature high pressure corrosion dust foam and
adhesion. Hikvision's radar level meters have been widely used in chemical power generation steel cement food
and other industries.Radar-video integrated devices for intelligent transportation: Hikvision's radar-video integrated device for
intelligent transportation extracts and fuses radar and video features prior to target detection. In other words it
directly extracts multi-frame video images and real-time radar point cloud features for feature-level pre-fusion and
then obtains the target's speed distance direction unique identification code and other information. The "feature-
level pre-fusion" eliminates the constraints of individual sensors allowing for the simultaneous collection labeling
and fusion of multi-dimensional data. This is accompanied by a higher matching rate of radar-video fusion and a
more continuous target detection trajectory endowing the product with ultra-long-distance high-precision vehicle
and traffic trajectory detection capabilities. Compared with vision or radar sensors Hikvision's radar-video assisted
products exhibit consistent performance in both daytime and night as well as in rainy and foggy environments and
26Hikvision 2024 Annual Report
have been extensively used.Radar-video assisted FOD (foreign object debris) detectors: High-resolution radar detection combined with
video review leads to a higher accuracy of foreign object detection. The device can detect foreign objects on airport
runways such as mechanical parts stones plastics birds and metal devices with centimeter-level precision
(20mm*20mm). The combination of radar detection and video review allows for 24/7 detection of foreign object
debris on runways - even in bad weather such as rain snow and fog with an accuracy of more than 95%.
2.1.3 Infrared perception
Infrared perception technology which is based on the infrared radiation characteristics of objects enables
precise monitoring and intelligent analysis through non-contact temperature imaging. Combining infrared thermal
imaging technology with MEMS technology the Company has been engaged in the iteration and upgrading of
technology and products to meet the demands of industrial production industrial firefighting scientific research
and other fields. The aim is to help improve productivity and safety and provide standardized temperature sensors
for industrial quality control and multidisciplinary basic research.PTZ cameras for high-precision positioning: PTZ cameras for high-precision positioning powered by dual
closed-loop optical image stabilization technology (collaborative control by motor + encoder) plus space perception
and attitude perception modules can locate a fire point within a distance of 3km with an accuracy of ≤50m (based
on test data in Tai'an project). This provides a solid foundation for precise positioning and rescue decisions in the
early stages of the fire. The full-scenario self-cleaning system features innovative semiconductor-based
condensation water spraying technology that enables air-to-water and remote control of wiper cleaning. This
effectively mitigates imaging blur caused by lens contaminants ensuring consistent image clarity in diverse
environmental conditions. The product is equipped with a one-button calibration system to reduce the manual
calibration of fire points greatly shorten the equipment debugging cycle and lower installation and debugging costs.In outdoor fire prevention scenarios such as forest fire prevention it provides sound technical support for holistic
risk management.
27Hikvision 2024 Annual Report
Linglong shortwave thermometers: In high-temperature processes such as steel rolling and single-crystal
silicon growth furnaces traditional temperature measuring equipment has shortcomings such as bulky size and
narrow field of view resulting in inflexible deployment and large blind spots. The Linglong shortwave thermometer
series developed by HikMicro has a weight reduction of more than 30% and a larger field of view. With two-color
infrared technology it measures temperature over a wide range of 300~3200℃. Also the AI-ISP is applied to
address overexposure and color cast in high/low temperature settings and restore the true color and details of molten
pools and crystal growth furnace thermal fields thus assisting with accurate judgment during manufacturing
processes.Anti-fouling and high-temperature-resistant thermal detector-imagers: In view of mold release agent
spray failure caused by oil mist pollution and uneven temperature field on the mold surface in the die-casting process
the anti-fouling and high-temperature-resistant thermal detector-imagers use non-contact real-time temperature
field imaging to rapidly locate cold and hot defects on molds ensuring precise temperature control and improved
28Hikvision 2024 Annual Report
productivity. The mechanical protection cover (which opens only at the time of temperature measuring) and high-
pressure airtight anti-fouling technology are intended to prevent oil mist intrusion; coupled with the detachable
germanium sheet protection layer and air cooling system the device is suitable for long-term operation in a high-
temperature environment of 150°C with a long service life. It is expected to increase the yield rate and standardize
processes in scenarios like die-casting the structural components of new energy vehicles (NEVs).Microscopic thermal detector-imagers: HikMicro's microscopic thermal detector-imagers are designed to
monitor the temperature field of micron-level targets (such as solder joints of electronic components and melting
points of optical fibers). With one-button switch between regular/macro modes the device supports a minimum
detection distance of 35μm (about 1/3 the diameter of a hair) and can quickly change the observation scale without
removing the lens; ±1°C or ±1% high-precision temperature measurement (with a range of -20~150°C) and 8-hour
continuous adaptive block-free environmental data acquisition reduce the possibility of missing data frames.Integrated with real-time/offline analysis and one-click generation of standardized reports the device can serve as
a standardized temperature perception tool for multidisciplinary basic research and industrial quality control in
fields such as electronic information materials biomedicine chemistry and electricity.Flame detectors for industrial fire protection: Industrial fire protection has higher requirements for detection
accuracy response time protection stability and other metrics. With ongoing efforts to develop more flame
detection methods and improve detection accuracy HikFire has launched flame detectors for the purpose of
industrial fire prevention. Using multi-dimensional perception + video the solution can accurately detect the
temperature smoke flame and other features of different objects when they burn and eliminate false alarms caused
by typical industrial production conditions such as high temperature. In particular infrared imaging-based fire
detectors enable intelligent fire identification with higher accuracy (0.1m2 fire panel within a distance of up to
29Hikvision 2024 Annual Report
150m) and the false alarm rate is reduced by more than 30%. Three-band infrared flame detectors can accurately
detect the combustion of organic matter against environmental interference such as sunlight. Therefore they may
be further applied to semi-outdoor and outdoor settings such as industrial storage tank areas and rail platforms.Infrared-ultraviolet fusion flame detectors which can perceive the 4-micron band of the combustion of special
materials such as metals are suitable for sheet metal processing electric welding hot work and other uses.Industrial shortwave infrared cameras: HikRobot's industrial shortwave infrared camera is a high-
performance industrial infrared camera equipped with an InGaAs sensor. Thanks to its wide coverage from 400nm-
1700nm visible light to shortwave bands one camera can meet the need for both visible light and shortwave infrared
detection coupled with lower system costs higher processing speed and a broader detection range. The camera is
equipped with multiple image pre-processing functions and also a TEC (thermo electric cooler) to maintain its
temperature below room temperature 25℃ thus reducing the noise of prolonged operation and long exposure and
ensuring image quality. Moreover with a number of trigger modes and incident outputs supported the solution
flexibly adapts to different industrial settings spanning new energy semiconductors laser spots agriculture food
and medicine material sorting printing and other industries.
2.1.4 X-ray perception
An X-ray is a form of high-energy electromagnetic radiation with an extremely short wavelength and it is
highly penetrating. Given the different absorption of X-rays by materials the radiation can clearly distinguish
minute size variations and subtle structural changes for the purpose of high-precision detection. Leveraging its
extensive expertise in radioscopic testing in industrial production the Company has developed high-precision
radioscopic detection capabilities ranging from macro (millimeter level) to micro (micron level) from 2D imaging
to 3D imaging and launched products around its two key businesses - component counting and defect detection in
an effort to help customers improve detection quality enhance detection efficiency and strengthen management.
30Hikvision 2024 Annual Report
X-ray component counters: In an efficiently operating SMT (surface mount technology) workshop accurate
component counting is essential to the efficiency and accuracy of electronics assembly. Due to the wide variety and
large quantity of components traditional manual counting is not only time-consuming and labor-intensive but also
prone to errors and omissions. HikRayin's X-ray intelligent counter can finish counting four trays of components in
8 seconds with an accuracy of up to 99.99%. The counting outcomes may be connected to MES to enable multi-
dimensional control over factory production data contributing to the intelligent transformation of warehousing.X-ray defect detectors: Taking the quality inspection of integrated circuits in NEVs as an example
conventional 2D detection cannot identify defects in the circuit board welding process (such as Head-in-Pillow in
31Hikvision 2024 Annual Report
BGA and immersion tin in PTH) due to imaging interference; and due to the high output large batches and stringent
inspection requirements traditional sampling often takes a long time. HikRayin's online 3D CT inspection device
employs three-dimensional imaging technology to perform 360-degree radioscopic imaging and cross-sectional
analysis both globally and locally. This allows for the intuitive discovery of defects and their locations. When
combined with a fast detection algorithm the solution is able to detect defects in an efficient and automatic manner.When it comes to the production of vehicle sensors it is important to detect defects in internal sensing
components but due to plastic housings it is impossible to identify them with the naked eye. However the
combination of X-ray high-definition radioscopic imaging and AI algorithms can show whether the needles inside
are skewed or incompliant in length. By automatically detecting faults in batches and removing faulty items the
solution greatly improves detection efficiency and overcomes the challenge of complicated and inefficient human
detection. Based on a customized barcode scanning function the barcode of each component is linked to its X-ray
image to allow for the tracking and tracing of defective products as an effective approach to ensuring high-quality
production.X-ray foreign matter detectors: Food safety has always been a topic of great social concern. For example it
is difficult to identify tiny bone fragments during the quality control of chicken breast. HikRayin's X-ray dual-
energy intelligent foreign matter detection system employs X-ray detection the new Raytina image enhancement
engine artificial intelligence technology and a dual-energy detection algorithm to detect the density and substance
of a product and accurately identify bone fragments. Paired with an automated removal system the efficient
detection solution serves as a booster for productivity and quality assurance in factories.
32Hikvision 2024 Annual Report
2.1.5 Spectral fusion perception
Harnessing its full-spectrum sensing technology Hikvision has established a material composition analysis
and detection system that identifies the type of a material detects its safety and identifies environmental pollution
through a qualitative and quantitative analysis of the composition structure and properties of the material. By
advancing the visible light and multi-spectral fusion technology the Company drives the digital upgrade of
environmental monitoring and production quality control through full-domain sensing capabilities and helps
customers improve production processes and productivity. In 2024 Hikvision continued to expand its spectral
product portfolio by launching a new color detection range and miniaturized TDLAS (tunable diode laser absorption
spectroscopy) products designed specifically for industrial enterprises contributing to improved production
processes and higher production safety.Color detection: In the manufacturing process color detection as a key stage for product quality control
quantifies color differences to check if products meet standards. Hikvision has launched two series of color detection
products. The automatic liquid absorbance analyzer acquires the absorption spectrum of a liquid through spectral
analysis and detects the concentration dyeing rate and other related information during production to resolve the
problem of invisible and undetectable black box processes such as textile vat dyeing and ink feeding and help control
the quality of the production process. The area-array multi-spectral color and color difference detection system
based on the spectral calculation and analysis technology performs accurate color and color difference detection
that is not influenced by the observation angle light source type or metamerism. The acquisition speed of 30fps
ensures high image acquisition capabilities. The system is equipped with an edge processing and computing
platform and supports both online and offline processing. It is used for color quality control of devices before
delivery color consistency control of dyes and coatings as well as food appearance quality inspection classification
33Hikvision 2024 Annual Report
and quality control of textiles before delivery. Through the simultaneous detection of multiple samples it greatly
improves the efficiency of quality inspection.Gas monitoring: Hikvision provides a multi-faceted and multi-scenario gas monitoring product matrix - from
economical products that analyze a single gas to premium products that apply to hundreds of gases - to address the
challenge of gas leak detection and positioning in industries such as petroleum chemical and natural gas. In 2024
the Company introduced a new non-explosion-proof TDLAS product for methane monitoring by industrial and
commercial enterprises like tobacco and textile manufacturers. Featuring a 4kg lightweight and easy-to-deploy
model it can detect methane leaks within 50m monitor leaks in real time online and transmit information back to
the gas leak monitoring platform to guarantee production safety. A four-in-one portable gas monitor has been
introduced to ensure personal safety in industrial production and gas detection. The device which is directly worn
on the chest of staff will promptly notify administrators to take the appropriate protective measures when the
concentration of the released gas on site reaches the preset value. It is suitable for emergencies such as fire rescue
process monitoring such as industrial experiment and industrial environmental safety monitoring for production
workers.Environmental surveillance: Hikvision is committed to environmental preservation. The hyperspectral water
quality monitor is equipped with a full-spectrum fill light to enable all-weather contactless water quality monitoring
which requires no reagents and generates a response in seconds for monitoring related to hydrology and water
conservancy including hydrological stations rivers and lakes. The system can be connected to a platform for
intelligent analysis of water quality changes and also to dome cameras for real-time monitoring of the surrounding
environment to help the water environment stay clean for a longer time. For vegetation monitoring the multispectral
34Hikvision 2024 Annual Report
vegetation monitor provides an "intelligent physical examination" for vegetation around the clock with a 32x optical
magnification. It clearly monitors everything from a vast farmland to a single plant. The solution protects vegetation
health through tree and farmland monitoring ensures marine safety through floating objects and algae identification
and helps promote the digital upgrade of agriculture and forestry by providing intuitive access to vegetation growth
trends via all-weather real-time high-frequency monitoring.Ultra-high performance liquid chromatography: With it the composition and content of a wide range of
industrial products and food can be determined through a single test. The organic components in a sample are first
separated according to the chromatographic separation theory prior to testing. Then the organic matters contained
in the sample as well as the content of each component are detected with higher efficiency. Most trace compounds
that contain a substance less than 1 ppm can be detected quickly and accurately. For example if 1mL of beverage
is diluted in 1000mL of water the composition and content of the beverage can be quickly known with the help of
ultra-high performance liquid chromatography. By reducing the sample separation time the high-performance and
efficient material separation and analysis technology enables the faster detection of composition and content.Spectral fusion-based rapid coal quality analyzers: The Company has pioneered in introducing spectral
fusion technology to coal quality analysis. Given that near-infrared spectroscopy (NIRS) has a good response to
molecules in coal and X-ray fluorescence (XRF) has a good response to atoms in coal the solution has combined
the two sensing approaches and also included artificial intelligence algorithms. It can detect the calorific value total
sulfur ash content total water and other indicators of a 6mm coal sample online and obtain the test results of
sampled coal in just 2 minutes. Now the solution has been used in a wide range of scenarios such as coal wash
plants ports and power plants by companies such as Hebei Company Zhejiang Company Port Company Shendong
Coal and Shengli Energy of the CHN Energy Group.
35Hikvision 2024 Annual Report
2.1.6 Laser perception
Hikvision boasts a wide range of laser perception products encompassing laser sensors fiber optic sensors
and LiDARs.The Company has focused on laser profile sensors and extended to point laser displacement sensors 2K/3K/4K
series laser profile sensors and galvo laser stereo cameras. This leads to a complete range of full-stack 3D high-
precision detection and vision guidance solutions featuring dynamic + static and point + line + surface. Moreover
ToF single-point ranging sensors and area-array ToF (time of fly) stereo cameras based on VCSEL (vertical-cavity
surface-emitting laser) and the time-of-flight principle have been launched. With uses in the fields of industrial
sensing and stereo perception these products have further expanded the application scope of laser perception.Laser displacement sensors: Using high-precision and high-frame-rate laser scanning technology the sensor
can simultaneously measure the displacement height or height difference of multiple points of a target object obtain
accurate data on multiple measurement points in real time and quickly acquire the geometric features of the target
object such as step height gap width relative position and so on while suppressing secondary reflection
interference. This optimal solution for precision measurement is widely used in product contour detection quality
control and automated assembly such as the measurement of auto connector pins and chip capacitance/ resistance
and thickness of printed circuit boards.Laser profile sensors: For high-precision measurement the sensor has a built-in high-precision 3D algorithm
in the hardware to produce point cloud data depth map and brightness map data with a high frame rate and micron-
level precision in real time collect the three-dimensional profile information of a target object and enable three-
dimensional measurement and detection such as flatness warping segment gap and surface profile. The 2K 3K
and 4K series have been launched to suit different application scenarios. Combining the sensors with the Vision
Master 3D algorithm platform Hikvision has developed solutions for a number of complex applications. These
solutions are extensively used in online non-contact and high-precision 3D measurement scenarios in the PCB 3C
lithium-ion battery and other sectors.
36Hikvision 2024 Annual Report
Galvo laser stereo cameras: Using galvo laser technology the camera integrates high-performance optical
systems high-performance processing chips and high-strength materials to enable high-precision and high-stability
3D imaging under a variety of working conditions with interference such as light absorption high reflection and
ambient light. This range includes several models for short- medium- and near-distance detection suitable for
typical applications like parts workpieces material frames and pallets. Combined with the robot 3D vision
guidance platform it is widely used in vehicles auto parts heavy industry home appliances photovoltaics and
other sectors to drive industrial upgrading.ToF single-point ranging sensors: The sensor which is based on the time-of-flight principle can detect a
variety of materials and scenes across long distances with the use of lasers and point light spots. Its core advantages
include fast response and high-precision measurement which ensures stable operation in complex environments.With strong resistance to ambient light interference the solution is widely used in sectors such as robotics logistics
and production safety significantly enhancing production efficiency and safety.Area-array ToF stereo cameras: The camera features high resolution high precision and fast response. It is
37Hikvision 2024 Annual Report
designed to obtain the complete three-dimensional geometric information of a target object in real time. It may also
be applied outdoor within a certain distance. In the field of industrial automation the camera can be used for
environmental perception navigation and obstacle avoidance material counting three-dimensional object
recognition and others; in the logistics industry it can be used for parcel volume measurement volumetric
measurement guided parcel induction and other applications. In addition it is suitable for intelligent applications
such as three-dimensional reconstruction and gesture recognition.With distributed positioning optical fiber products as the starting point Hikvision continues to enhance its
development capabilities surrounding core laser devices and optics-related embedded software and gradually
expands the family of distributed positioning optical fibers for vibration sensing temperature measurement and
auscultation. In addition the Company has launched a point-type fiber Bragg grating demodulator for real-time and
accurate monitoring of physical attributes such as load and temperature.Fiber Bragg grating demodulators: The product performs point-type high-precision monitoring based on the
fiber Bragg grating principle. It monitors minor changes in various physical quantities in real time by connecting to
different sensors. For example it can monitor the load of wind turbine blades when combined with strain sensors
and the temperature of high-voltage switch cabinets when combined with temperature sensors. With exceptional
resistance to interference intrinsic safety and passive front end it protects equipment safety through 24/7 stable
monitoring in complicated electromagnetic environments.
38Hikvision 2024 Annual Report
Distributed positioning optical fibers for vibration sensing: Hikvision has introduced a new cost-efficient
product for perimeter intrusion prevention in restricted areas. Along with video technology and a false alarm
reduction algorithm it offers a multi-dimensional perception and perimeter monitoring solution promoting the use
of vibration detecting optical fibers for perimeter security. A multi-channel positioning optical fiber for vibration
sensing has been introduced to provide continued monitoring and guard against external damage to operators'
communication networks and oil and gas pipelines with lower single-channel monitoring costs. The optical fiber
may also be coupled with a specific algorithm for avoiding external damage to intelligently identify the type of
damage. The product has now been put into use in the optical cable external damage prevention project of Fuzhou
subsidiary of China Telecom to protect on-site safety through precise vibration perception.Distributed positioning optical fibers for temperature measurement: Hikvision has been continuously
expanding the range in order to adapt to more settings. A 10km fire certification model is offered for scenarios that
require fire certification such as fire protection petrochemical metro tracks tunnels and pipe galleries. An intrinsic-
safety mining model is available for usage in coal mines and other environments; besides a professional mining
certification it can directly interact with a visualized host underground efficient and safe. For applications such as
power distribution cabinets and energy storage cabinets that do not require a long distance there is a 2.5km short-
distance economic model featuring a modular design; lighter and smaller it can be directly pre-installed in
equipment and function as an intelligent monitoring system for the equipment.Distributed positioning optical fibers for auscultation: For belt roller monitoring in industries such as coal
steel ports cement and thermal power each single-channel optical fiber auscultation device can inspect a 1.2km
long belt. The device is integrated with the HIK-DAS patented acoustic detection algorithm and an AI recognition
algorithm to precisely pinpoint any abnormal roller position and automatically identify the fault among common
roller faults. This improves the efficiency of belt operation and maintenance (O&M) through real-time remote
monitoring. The product has been used in many large projects. For example Nanjing Steel Group Co. Ltd. has
applied distributed positioning optical fibers for auscultation to perform all-weather inspections on over 3000 belt
rollers in order to ensure the efficient operation of the transportation system at the steel mill.LiDAR performs non-contact measurement and environmental perception by emitting laser beams and
receiving reflected signals. Thanks to laser's short wavelength narrow emission angle and minimal multipath effect
LiDAR features high measurement accuracy high resolution and outstanding shape recognition and has been
widely used in various industries. In the industrial sector Hikvision has launched a series of products such as single-
39Hikvision 2024 Annual Report
line 4-line 16-line 32-line and 96-line LiDARs which are applied to perimeter intrusion prevention in designated
operating areas obstacle avoidance of large operating machinery obstacle avoidance and navigation of
AGVs/forklifts three-dimensional volume measurement container grabbing by port machinery and unmanned
loading by robotic arms to contribute to industrial automation and intelligent upgrades. In the field of transportation
the high-precision and high-resolution three-dimensional point cloud data produced by LiDAR serves as a powerful
perception tool for intelligent traffic management.Scanning & imaging LiDARs: With a 98% accuracy rate in volume measurement the LiDAR can create
high-precision models with 70000 valid sample points per second. Thanks to its advantages such as high-precision
measurement three-dimensional imaging and multi-functional integration it supports static target detection within
a spatial range i.e. measures accurately and in real time the shape volume and level of bulk solids powders and
other materials. It is mostly used in warehouses with high inventory accuracy. It can also be applied to robotic arm
control settings for the key control point scanning and global coordinate detection of gripped objects or vehicle
targets. Hikvision is also the first to apply large model technology to three-dimensional volume imaging in order to
identify and remove vehicles operating machinery and other targets in the scene and to mitigate interference with
volume measurement accuracy. Additionally the solution has a window design to lessen the effect of ambient dust
on the measurement outcomes.Long-distance single-line LiDARs: Automatic gain control technology is used to eliminate the accuracy error
caused by scanning high-reflective materials. This significantly improves the performance of LiDAR in scenarios
such as steel coil positioning and automatic picking container shape recognition and alignment. The innovative
circuit design has led to an industry-leading speed resolution ratio and a ±2cm ranging accuracy ensuring better
40Hikvision 2024 Annual Report
performance in the shape and contour recognition of large objects like ship loaders and unloaders as well as material
particle size recognition. The product's capacity to adapt to challenging situations like dust and water mist has
significantly increased thanks to system-level optimization in hardware circuits software and algorithms.LiDAR-video integrated devices: Primarily used for measuring vehicle length width and height and
identifying vehicle model and license plate the product adopts an intensive design to resolve vehicle model data
matching errors caused by separate wiring and networking as well as timing errors in the "laser + video" split
solution. In addition GMOS sensor + intelligent vision algorithm is used to prevent false alarms and improve the
accuracy of vehicle model and license plate recognition.
2.1.7 Acoustic wave perception
Harnessing its acoustical device R&D capabilities and professional algorithm team Hikvision has developed
superior acoustic wave perception technology and products that are widely used in the industrial field. In 2024 the
Company released a new ultrasonic product range as well as an online soundprint monitoring system for substation
equipment. These more accurate solutions for process quality inspection and equipment and facility O&M
management demonstrate the Company's commitment to special-purpose scenarios.Non-destructive phased array ultrasonic testing: Phased array ultrasonic testing can be used to check for
internal welds holes bubbles and other defects in the early stages of production and manufacturing of parts such as
pipes bars plates fan blades NEV water cooling plates and motor cylinders. The solution has flexible control over
the beam through electronic deflection and focusing. Hikvision has introduced a full range of ultrasonic testing
products including standalone three-axis automated detection systems portable ultrasonic linear automated
41Hikvision 2024 Annual Report
scanning devices as well as phased array ultrasonic boards with integratable built-in AI analysis capabilities and
probes of different forms and purposes which are suitable for a variety of scenarios. Additionally employed is an
AI-based defect identification mechanism that incorporates a number of defect models. As a result the solution
allows for intelligent scanning and synchronous output of detection results together with the recording of defect
types. Also it supports image-based review as well as periodic defect analysis and optimization. While lowering
the operating threshold the solution improves both monitoring efficiency and production quality.Online soundprint monitoring products: The online acoustic imager combines ultrasonic arrays and optical
lenses with a sound localization algorithm to monitor faults and visualize sound as a way of supporting the detection
of partial discharge and gas leaks in crucial equipment in substations power plants factory pipe galleries and valve
chambers. Hikvision has introduced a new State Grid-certified online soundprint monitoring kit to help the customer
monitor partial discharges of substation equipment. Each host is paired with three measurement-purpose
microphones for efficient real-time monitoring. An AI-based diagnostic algorithm is applied to determine the fault
type and data access and traceability are made possible on a dedicated platform to guarantee substation safety.Sound vibration and temperature monitoring products: Hikvision's sound vibration and temperature
monitoring range integrates the three-modal data of sound waves vibration and temperature to perform long-term
multi-dimensional data monitoring of dynamic equipment such as pumps motors and wind turbines. AI algorithms
are also used for equipment health assessment and fault diagnosis. The O&M platform employs three-dimensional
42Hikvision 2024 Annual Report
modeling technology to build equipment models for remote immersive O&M management.Ultrasonic flow meters: HikMicro's ultrasonic flow meter has creatively integrated the Doppler and time
difference methods into one in contrast to conventional devices that are based on a single measurement principle.Through adaptive switches depending on the cleanliness of fluids it eliminates the impact of foam and solid particles
in the fluid on the flow measurement accuracy in industrial settings. According to the diameter wall thickness and
material of different pipelines on the site the ultrasonic flow meter can perform automatic scanning and select the
optimal detection frequency of the pipeline without manual correction. This makes it appropriate for a range of
operating conditions. Compared with pipe segment flow meters the clamp design allows for non-contact
measurement and eliminates the need for downtime during pipe cutting and installation. This effectively cuts
installation and maintenance costs in scenarios with large pipeline diameters and high sealing requirements. Now
the solution has been used for flow measurement in a variety of applications including water treatment energy
metering and production control in the power generation water steel and chemical sectors.
2.1.8 Other physical sensing solutions
Using its multi-dimensional physical sensing technologies including electromagnetic thermal and
piezoresistance the Company has developed a measuring technology system encompassing electromagnetic mass
pressure and so on in the area of industrial process perception. It continues to push the limits of high-precision
perception against complex media and strong interference through hardware innovation and algorithm-based
optimization meeting the demands of high-precision measurement in sectors like pharmaceuticals food and
beverage and petrochemicals.Electromagnetic flow meters: HikMicro's electromagnetic flow meter has further improved its ability to
perceive and process tiny signals (small flow low conductivity) through hardware optimization and algorithm co-
design. Multi-frequency excitation technology combined with different frequency bands enables noise immunity
zero stability and faster response guaranteeing stability in high-concentration slurry measurement scenarios such
as coal slurry and papermaking. A cutting-edge tiny signal extraction algorithm is used to convert tiny flow signals
into accurate and reliable flow values making small flow measurement more accurate. With a minimum
conductivity of 1μS/cm the solution is suitable for measurement in sectors of pharmaceuticals food and beverages
43Hikvision 2024 Annual Report
pure water deionized water and more.Mass flow meters: HikMicro's mass flow meter based on the proprietary full digital solution technology
offers 8000 times/second sampling and operation together with a significantly reduced reaction time guaranteeing
consistent results even for tiny batch samples and short filling periods. With a 0.1% accuracy the flow meter is
widely used for measuring the mass flow volume flow and concentration of liquid and gas in trade settlement
proportioning and metering precision control and other scenarios across the petrochemical food and beverages
pharmaceutical and other industries.Pressure transmitters: HikMicro's pressure transmitter is based on high-precision silicon technology with an
accuracy of up to ±0.05%. The ultra-thin film special structure design high-precision stress control process coupled
with a real-time compensation algorithm lead to a minimum micro differential pressure measurement of ±50pa.The dual overload protection diaphragm design makes the transmitter safer. The overload resistance up to 1166
times the range and 100:1 range ratio provide wider adaptability making it suitable for measuring various gas
pipelines liquid pipelines gas buffer tanks liquid storage tanks and more.
2.2 Hardware Product Family: Comprehensive Edge Node Perception + Edge Domain Scenario Intelligence
+ Central Intelligent Storage and Computing
In addition to launching new digital products Hikvision has continuously promoted technological innovation
and breakthroughs in different segments such as edge nodes edge domains and cloud centers and expanded its
product family to better meet the needs of customers in various industries.
2.2.1 Edge node products: comprehensive perception and growing product mix
In terms of perception products Hikvision has constructed a diverse and competitive product matrix that
44Hikvision 2024 Annual Report
provides solid support for numerous industry applications by consolidating its technological advantages and
improving its IoT perception capabilities.
1) Front-end cameras
Hikvision's front-end cameras are centered on the AIoT business. Driven by technological innovation and
scenario-specific requirements the Company focuses on innovation in three domains: large vision model multi-
camera full FOV and adaptive intelligent O&M.Large vision model: While improving the incident detection sensitivity and accuracy large models can also
greatly reduce the difficulty of adaptation and deployment expand the application scope of products and meet the
specific needs of various industry scenarios; also the scenario-based learning ability offered by large models is
expected to optimize image quality. Multi-camera full FOV: Technologies such as horizontal and vertical splicing
break the limitations of traditional field of view and enable panoramic coverage and intelligent linkage between
different scenes. Adaptive intelligent O&M: Adaptive and intelligent O&M cameras are developed through
innovation in technology materials and processes which greatly reduces the cost of manual maintenance.Based on the Hikvision Guanlan large model technology system the Company has developed large vision
model cameras that are better suited for AIoT scenarios by designing model structures with consideration for model
lightweight computing efficiency enhancement and computing resource saving. The large vision model camera
has overcome the challenges like weak universality difficult recognition of complex targets complex O&M
debugging and lengthy algorithm customization cycles. With many benefits such as strong generalization high
45Hikvision 2024 Annual Report
performance ceiling powerful scene comprehension and fast deployment it allows for the intelligent recognition
of more targets improves sensitivity accuracy and deployment convenience and enhances image quality.Leveraging its extensive expertise in technology and products Hikvision has developed a range of large vision
model cameras that have been applied in several scenarios such as intelligent perimeter detection incident detection
equipment and facility inspection helping users improve quality reduce costs and increase efficiency.Large vision model: accurate and timely incident detection
During the actual usage of cameras different scenes lighting conditions and weather may generate a large
number of false alarms resulting in increased O&M costs and reduced user trust in cameras' response. The Company
has employed its abundant industry expertise to develop a large pre-training model and added data on various real-
world dynamic scenes (such as rain snow fog strong light flashing animal movement and vibration) in the pre-
training phase to remove interference factors in incident detection. Moreover large models' excellent generalization
and sensitive detection of difficult targets allow for a high detection rate and high accuracy during the intelligent
recognition of different targets.For the purpose of perimeter detection compared with traditional video devices the large model-based
perimeter detection cameras provide a longer recognition distance and an over 90% reduction in false alarms
(according to measured data in projects). So far the Company has developed a complete range of large model-based
perimeter detection cameras such as monocular cameras multi-lens cameras and dome cameras.
46Hikvision 2024 Annual Report
Large vision model: flexible detection versatile application
The implementation of traditional intelligent products necessitates the training of distinct recognition
algorithms for various targets presenting challenges such as high sampling expenses low scalability and long
training cycles. Hikvision's front-end camera has been integrated with an open-source large target detection model
on the end side. Combined with comprehension of a variety of segmented scenes the camera calls standardized
modules for rapid configuration. This allows for "zero-shot" detection and agile deployment with higher detection
precision in applications such as guarding garbage detection safety helmet detection work uniform detection and
fire engine access occupancy detection. Moreover the out-of-the-box design enhances the customer and user
experience.Large vision model: situational learning enhanced image quality
47Hikvision 2024 Annual Report
Hikvision's large vision model camera powered by a deep fusion of "hardware + algorithm" can improve
image quality in low-light and strong-interference settings through situational understanding. Its benefits include
professional large aperture lenses and high-sensitivity sensors. Leveraging its expertise in low-illumination scenes
the Company has developed an end-to-end intelligent large model algorithm to effectively distinguish signals from
noise in images accurately remove noise and improve the signal-to-noise ratio of night vision images. Based on
targeted training for scenes such as heavy rain haze overexposure and color cast the solution also supports scene-
defined image quality featuring more details and more true-to-life colors providing better video images for
intelligent applications.Multi-camera full FOV: flexible splicing pushing FOV limits
In addition to large model capabilities Hikvision insists on developing multi-directional multi-camera
solutions expanding the boundaries of FOV through technological innovation. Its multi-camera lineup which
includes 720° panoramic cameras blind spot-free eagle eye cameras and ultra-HD splicing cameras features
flexible splicing in different directions flexible viewing in multiple angles and high adaptability in varied scenarios.By flexibly adapting these solutions to various settings Hikvision is committed to providing customers with more
accurate and broader monitoring FOVs as well as robust assistance for developing an all-around multi-level visual
perception system.
48Hikvision 2024 Annual Report
Adaptive intelligent O&M: reduced O&M expenses improved adaptability
In response to customers' and users' scene-based demands as well as expectations for O&M-free products
Hikvision continues to enhance the intelligent adjustability and scene adaptability of products and mitigate O&M
pressure through innovative processes and technologies such as hydrophobic coating nano masking and cyclone
dust removal. The Company has introduced a series of new products such as spider-web-free cameras anti-freezing
cameras anti-oil cameras self-cleaning and dust removal cameras and self-cleaning cameras to satisfy scenario-
specific demands and lower customers' O&M costs.
2) Intelligent transportation and mobility products
Hikvision has established a large intelligent transporation model dedicated to industry-specific scenarios based
on its years of experience in the intelligent transportation sector as well as its Guanlan large model technology
system.Large intelligent transportation model-based capture units: For traffic violation detection the Company
has released an eco-friendly 12-megapixel capture unit that is integrated with large model algorithms. Its new 1.1-
inch image sensor greatly expands the vertical dimension of the images captured and increases picture details. The
solution effectively resolves the limitations of the previous generation of traffic enforcement cameras and
checkpoints. A single device is enough to capture large/small vehicles and non-motor vehicles or large vehicle
details + panoramic views plus richer features in photos of vehicle windows. Supported by the large vision model
technology the product has made a substantial progress in the analysis of occupant violations (e.g. failure to wear
seat belts and using a mobile phone while driving). The accuracy of seat belt and phone detection has been greatly
raised with a 75% decrease in the false detection rate. Moreover it has also made significant improvements in sub-
49Hikvision 2024 Annual Report
segments such as helmet detection for non-motor vehicle drivers and vehicle feature detection for dangerous goods
vehicles and dregs transportation trucks.Large intelligent transportation model-based incident detection products: The Company has built data
models dedicated to industrial scenarios such as road incidents and integrated them with intelligent hardware to
accurately detect abnormal road incidents. The new-generation incident detection products include radar-video
fused devices smart cameras and servers. Based on its Guanlan large model system Hikvision performs industry
expertise pre-training and fine-tuning to infuse expert-level incident detection capabilities into the large intelligent
transportation model. Compared with the conventional convolutional neural network algorithm in the industry the
model based on the Transformer architecture features a deeper network architecture as well as better capabilities of
global feature extraction context modeling and generalization. Also the false alarm rate of incidents under harsh
conditions such as low contrast occlusion and complex postures is reduced by more than 60%. These improvements
lead to a comprehensive upgrade of product benefits. In the future the Company will continue to research on the
large model technology and utilize the image and text understanding and inference capabilities of the Guanlan
multimodal large model to expand the application of its products in various traffic scenarios and fuel the intelligent
50Hikvision 2024 Annual Report
upgrade of the industry.Intelligent signal control systems: In the field of intelligent traffic signal control the Company has continued
to enhance its technological advantages across the industrial chain including perception equipment intelligent
algorithms and control devices. While iterating its radar-video assisted vehicle inspection devices it has also
optimized its traffic parameter collection function. Regarding system delivery Hikvision has introduced an
automated configuration mechanism to make setup and debugging more efficient. Taking the radar-video assisted
vehicle inspection device as an example the new radar-vision fusion algorithm removes the need for radar
configuration and debugging by automatically mapping the visual configuration to the radar. As a result the
debugging time of a radar-video assisted vehicle inspection device is shortened from 35-40 minutes to about 5
minutes. Thanks to the Company's in-house signal control algorithm the radar-video assisted vehicle inspection
device is undergoing iteration and optimization. The collection accuracy of information such as vehicle flow and
queue length required for signal control is greatly improved making signal control timing more automated and
intelligent.As part of its sustained efforts to empower digital and intelligent traffic Hikvision has introduced ranges of
traffic volume investigation expressway toll inspection non-motor vehicle control and ship checkpoint in a bid to
ensure safe and smooth traffic by strengthening road traffic order management and road risk prevention and control.
51Hikvision 2024 Annual Report
Vehicle access and parking products: With intelligent video at its heart Hikvision consistently improves its
digital solutions boosts user experience and assists clients in making parking management more efficient. Its
products span a variety of segments including vehicle access parking lots street parking and others. In scenarios
such as NEV parking space application management and transparent workshops in 4S stores continuous efforts are
spared to upgrade intensive and intelligent systems enhance products' technical profile and improve the efficiency
and services of urban parking.Charging stations: With the boom of the NEV market the significance of charging stations as infrastructure
is growing. In order to maximize product performance and boost charging efficiency Hikvision has continuously
dedicated itself to the R&D of charging station technology and products. With a focus on portable chargers AC
charging piles and high-power fast chargers it keeps improving charging management systems and solutions in
both home charging and public charging scenarios hoping to provide users with smarter safer and more stable
charging products through product and technological innovation.Mobile devices: In domains such as industrial wearables and handheld PDAs Hikvision continues
advancing technological innovation and business applications. In terms of industrial wearables the Company
has been actively engaged in sectors such as law enforcement the workplace and healthcare and has made
innovations in technical fields such as professional audio multimodal image stabilization and ultra-long battery
life. Handheld PDAs driven by advancements in AI technology have embraced better barcode scanning
performance and innovative application scenarios. The Company has launched a wide range of professional PDAs
such as general-purpose intelligent OCR devices devices made of anti-corrosion materials video-based volume
measurement devices and ultra-small barcode recognition devices. In conjunction with online shopping malls and
service platforms we provide data collection scene-based intelligent recognition and analysis capabilities for
manufacturing express and logistics retail e-commerce healthcare and public services and other industries
thereby enhancing customers' digital management capabilities. In the domains of mobile portable devices drones
52Hikvision 2024 Annual Report
and defense products we leverage AI capabilities and take into account scenario-specific demands to constantly
iterate and improve products and solutions.
3) Access control intercom and alarm products
Harnessing its extensive expertise in perception connection credentials and control technologies the
Company is actively engaged in service design and product innovation centered on personnel access personnel
status code of conducts and compliance management in a wide variety of application environments from open to
closed spaces. By constantly expanding the application of its products in segmented scenarios it has established a
scenario-based solution suite covering access control attendance visitors elevator control building intercom
healthcare intercom entrance and exit management intrusion alarm perimeter prevention real-name management
and office consumption.
53Hikvision 2024 Annual Report
Hikvision's access control products represented by MinMoe are a result of the integrated application of audio
video multimodality and other basic technologies that are used to create products for digital and intelligent identity
recognition and professional access management. The Company continues to enhance its two access control product
systems - intelligent and traditional covering all kinds of general and professional scenarios and upgrades segment-
specific products and solutions with an array of new products such as those featuring compliance with national
cryptographic standards explosion resistance violence resistance and a distributed architecture providing
customers with more diverse solutions.
54Hikvision 2024 Annual Report
Hikvision's visual intercom products mark a step further towards the scenario-based intelligent application of
audio and image technologies. The Company has improved its two-wire bus technology and released a series of
products suitable for construction and renovation projects worldwide. Through the integration of subsystems such
as intrusion alarm elevator control network cameras and access control it has combined community security with
scene control to provide customers with one-stop solutions. Healthcare intercom and emergency intercom solutions
are continuously iterated and optimized based on large multimodal models to increase their uses in segmented
industries.Hikvision's speed gates and turnstiles as a result of continued breakthroughs in technical fields such as
equipment networking space detection motor control and materials and processes provide customers and users
with a better installation/debugging/use experience coupled with higher management efficiency and easier
entrance/exit. In response to differentiated applications and market segments the Company has developed four
product ranges: Rigorous Simplified Traditional and Specialized to meet the needs of different customer groups.
55Hikvision 2024 Annual Report
Hikvision continues to innovate detection technology for alarm products and has released its first professional-
grade detector. Through ongoing research on wireless transmission and low-power technologies it has developed
new solutions for scenarios without electricity or networks. Systems for indoor intrusion detection outdoor
perimeter detection video detection and others are integrated to provide one-stop security management solutions
and more valuable services for customers. The Company continues to expand its cloud service applications and
offers exclusive application tools to different users making product access more convenient management more
efficient and O&M less stressful.
4) Interactive audio products
Hikvision has been devoted to considerable research in the realm of audio since 2016. Thanks to such efforts
it has developed three product systems: professional audio broadcasting audio and security audio. It now boasts
R&D capabilities ranging from acoustic construction hardware algorithms to systems committed to the networked
intelligent and array-based development of audio technology. With intelligent algorithms that push the boundaries
of sound quality it delivers a more convenient audio management and debugging experience and a one-stop digital
audio solution. In 2024 Hikvision leveraging its full-scenario audio technology matrix was committed to the
intelligent upgrade of audio in scenarios such as conferences audio amplification for teaching purposes and
command centers. As a member of the High-Performance Audio Network (HAN) Transmission Technology
Application Industry Alliance the Company works with industry partners to promote the networked digital
transformation of audio in China.
56Hikvision 2024 Annual Report
Professional audio:
Hikvision produces industry-leading hardware and software by using its intelligent production lines and
internationally certified acoustic labs. It has released an audio product family including the 8000N flagship series
4000 dedicated series and 2000 general series.
The 8000N flagship series built on a full-link networked architecture uses the in-house AES67 transmission
protocol to enable low latency at the millisecond level and high-precision synchronization at the nanosecond level.It has thus established a full-process digital closed loop from signal acquisition AI algorithm processing to sound
amplification and output. The system has deeply integrated intelligent algorithms. Over 50 patented algorithms have
been applied to enable sound localization noise suppression and adaptive sound field control significantly
improving the voice clarity and sound field uniformity in complex settings. The 128 ceiling array microphone
supports ultra-long-distance audio pickup up to 10 meters with its 128-MEMS super-large microphone array
architecture. It effectively addresses complex noise interference in the environment through over 300 built-in
stationary/non-stationary AI-based noise reduction algorithms. A single device supports local sound amplification
and remote conferencing at the same time and flexibly switches between conference modes without an audio
processor. The array square tube microphone features a distinctive "1+6" array heterogeneous design a built-in
beamforming algorithm and a horizontal beam angle that can switch among narrow medium and wide enabling
accurate audio pickup over a long distance. Built on innovations and upgrades in audio transmission and processing
technologies the network array column speaker can accurately meet the requirements of diverse acoustic spaces
like conference halls and multi-function rooms thanks to its unique single-body three-beam control and multi-device
cascade connection and independent adjustment technology. The 8000N series has been applied in a wide range of
high-end conference and classroom settings such as universities group enterprises and financial buildings. The
57Hikvision 2024 Annual Report
Company has worked with the School of Continuing Education of Zhejiang University on the AIoT-Center - an
intelligent application and joint training base to develop unfettered audio pickup and amplification solutions and
deliver a new teaching experience.Broadcasting audio:
Hikvision offers a complete set of scenario-based solutions and services centered on broadcasting audio which
are divided into three product ranges: analog broadcast network broadcast and explosion-proof broadcast. They
can be outfitted with an intelligent broadcast management platform for unified management and maintenance. These
solutions suit a wide range of business scenarios such as education and teaching chain stores group enterprises
and special-purpose settings.
58Hikvision 2024 Annual Report
For school uses the Company has developed a bi-switch listening backup system with analog network fault
detection and two-way fast signal switching. The system has been applied in many schools such as Yiyang No. 1
Middle School and No. 1 Experimental School of Suqian Economic Development Zone and showed reliable
performance in several listening tests. Hikvision's intelligent broadcasting platform which is designed to centrally
manage broadcasting devices in different locations has helped 72 schools in Henan Province with broadcasting
networking and transformation for online collaboration and efficient management. For chain stores a local
simplified solution a local premium solution and a Cloud Eyes unified management solution have been introduced
to address single audio source playback management and difficult supervision and provide chain store customers
with exclusive scenario-based products and customized functions. A networking management solution that allows
the headquarters to remotely supervise and centrally train its branches has been introduced for group companies.With audio-video integrated surveillance and rapid response to incidents a closed loop of management can be
established to create a digital industrial park. For refining and chemical pipelines special-purpose manufacturing
and other scenarios a range of explosion-proof and corrosion-resistant products are available. Explosion-proof
column speakers have been applied together with explosion-proof cameras in the oil pipeline corridor of Qingdao
Dongjiakou Port. The devices are centrally managed by a comprehensive security management platform to monitor
scene safety in a timely manner.
2.2.2 Edge domain products: empowerment of large models upgraded AI capabilities of products
Hikvision's edge domain products continue to embrace improved AI capabilities. Relying on the Guanlan large
model technology system Hikvision has advanced from large CV models to large multimodal models and
consistently upgraded its products to meet the demands of various application scenarios and create more value for
customers.
1) Integrated devices for intelligent applications
NVR - A core storage product for edge domain:
Hikvision NVR insists on technology-driven product innovation. In response to the latest trends in the
development of large model technology the Company has deeply integrated large image and text multimodal
models with large quantities of parameters and samples with embedded intelligent hardware and released a range
of Wensou (meaning text based search) storage products based on large multimodal models. These significant
technological innovations have boosted the extensive application of large multimodal models in the security sector.
59Hikvision 2024 Annual Report
The Wensou storage products enable the cross-modal information search and retrieval of natural language and
video images. By simply typing a sentence or a word a user can find the target image in seconds so that security
video retracing is no longer limited to time and space as well as conventional alarm and other retrieval methods.This significantly increases the effectiveness of target and event searches resulting in more intelligent and efficient
security management. For example you can enter a semantic description such as "a red electric scooter" "a white
van" "riding an electric scooter without a helmet" "a bicycle" "a trolley" and "a puppy" in the search box to search
for relevant targets. The search range is broad including high-frequency targets in security settings such as people
motor vehicles and non-motor vehicles. And it also supports feature searches such as specific items and target status.The range represents a breakthrough in application by fusing large multimodal model algorithms with
embedded intelligent hardware. Platform-oriented model design large and small model distillation cross-layer
mixed-precision quantization and other large model deployment technologies and innovative design of embedded
intelligent hardware are employed to apply large multimodal models to lightweight embedded hardware platforms
and allow for the inclusive application of large multimodal model technology so that more industries and users can
benefit from the intelligence and convenience brought by large models.By using a large model perimeter protection algorithm that substantially improves the accuracy of video-
assisted perimeter intrusion detection Hikvision NVR has advanced the application of fundamental intelligent
security. Customers are satisfied with the more efficient and convenient search experience that the image search
technology offers thanks to its innovation and optimization.With the prevalence of HD video surveillance the storage space required for video recording is growing. In
2024 Hikvision launched a high-density NVR that incorporates cutting-edge technologies such as controller
architecture modular design and intelligent sensor-based heat dissipation. The solution satisfies customer demand
60Hikvision 2024 Annual Report
for HD and long-cycle video recording while also offering a bigger storage capacity enhanced stability and
dependability in addition to much better storage and network performance.Over the past dozens of years Hikvision NVR has consistently driven product changes with advanced
technology to generate more value for customers. The resulting diverse products can be applied to a wide range of
intelligent security surveillance contexts.Hikvision DeepinMind - An intelligent computing product for edge domain:
Hikvision offers a broad variety of intelligent computing products that encompass all scenarios from edge to
domain center with an aim to function as an edge domain brain. It continuously improves its six capabilities of
"perception access domain-end management fusion and convergence multi-dimensional storage edge computing
and intelligent applications" and conducts extensive research on large visual and multimodal model technologies to
further boost AI performance as well as new application experience so that AI can truly create value for customers.Based on the Guanlan large model technology system the Company has launched Wensou DeepinMind and
Wensou Host - a comprehensive line of Wensou computing products spanning from the edge to the center. The
solution supports efficient search and real-time warning with only a sentence or a word entered. This allows users
to search for everything including people cars and incidents with exponentially improved efficiency a broader
search scope higher accuracy and more flexible application. In addition a large model for universal detection is
embedded into the intelligent computing products which greatly upgrades their detection and recognition
capabilities. Everything - whether it is moving people cars animals in videos or static billboards trash cans
flowers plants and trees - can be identified suggesting more comprehensive perception.
61Hikvision 2024 Annual Report
The Wensou computing range supports customized text-based warnings. Making use of large models' capacity
to integrate and process multimodal information the solution provides real-time warnings and reminders for specific
incidents and targets based on any sentence or word entered such as "two people riding an electric bike" "full trash
cans" and "climbing over guardrails." By making management more timely and effective it assists thousands of
industries with more intelligent and efficient security management. Intelligent computing products powered by large
models have leaped from providing specialized functions to providing open capabilities so that they can better meet
the diverse management needs of users.With the introduction of DeepinMind which incorporates large patrol inspection models Hikvision shows an
in-depth application of large multimodal model technology in the fields of work safety and compliance oversight.Embracing open collaboration Hikvision is growing its AI open platform's algorithm models and functionalities.This has led to the creation of the AI Open Platform (AIOP) which significantly increases the accuracy of
algorithms in fragmented intelligent application scenarios. Furthermore the Company has launched HEOP2.0
which has upgraded hardware open capabilities based on the Hikvision Embedded Open Platform (HEOP) offering
customers additional options for computing power sharing and cooperation.
62Hikvision 2024 Annual Report
2) Smart displays and video conferencing products
Hikvision's smart displays and video conferencing products are optimal solutions for conferencing and
education. The Company continuously optimizes design iterates software and hardware functions and improves
the application experience in accordance with scene-specific requirements drawing on its expertise in color display
interactive touch communication and connectivity audio and video processing and large AI model technology.This facilitates the digital transformation and upgrading of scenes such as conference rooms and classrooms and
provides customers and users with professional and intelligent solutions.Conferencing products: Hikvision's conference tablet has embraced a constantly evolving operating system
63Hikvision 2024 Annual Report
enhanced projection and connectivity capabilities and a new projection group function. The seminar room solution
supports the collaboration between a primary display and several auxiliary displays as well as one-click content
sharing making discussion and interaction more convenient. A new Type-C projector with driver-free and quick
start features has been introduced to upgrade the projection experience. The efficiency of the entire meeting process
is enhanced by large AI models. For example a new AI conference assistant is now available which is designed to
initiate a voice call before the meeting transcribe and translate in real time during the meeting and automatically
generate minutes and to-do lists after the meeting. Additionally efforts are made to continuously improve the quality
of video conferences. Audio and video algorithms are trained using large models to improve voice quality and visual
display during meetings even when there is an unreliable connection.Teaching products: The Company keeps developing and upgrading its new products centered on teaching
process teacher growth and education governance. The new-generation Classroom Connection solution combined
with lightweight large AI model capabilities significantly improves teaching efficiency via seamless information
collection and intelligent analysis of the teaching process. AI-enabled one-click courseware development intelligent
Q&A and other features are available via the Yijiaoxue software platform which is built on professional large
teaching models. Combined with the Classroom Connection and supporting products it can improve teaching
experience as well as lesson preparation efficiency. Hikvision has continuously upgraded its overseas smart display
and released the most recent Android version. Simpler and more intelligent education is made possible by the in-
house operating system and whiteboard software which are linked to general large multi-language models to
provide rapid AI-based search context analysis quick Q&A auto subtitles minutes summary and other AI
applications.Upgraded solutions of intelligent conference rooms: Hikvision's conference management platform has
further upgraded to a full-stack digital solution. With three features: omni-network integrated display control and
unified conference management the solution is expected to contribute to the digital transformation of conference
rooms which are divided into four categories - general conference rooms video conference rooms paperless
conference rooms and multi-functional halls. Unlike a conventional single-node network an omni-network allows
for direct network connectivity at every layer from the platform to the sub-device layer. Without analog lines or
control lines it allows for easy deployment and operation. With integrated display control all operations of a
multimedia conference room - instead of only equipment switches - are integrated into a tablet simple and efficient.Unified conference management is made possible by a unified architecture that integrates all subsystems and
equipment including video conferencing paperless conferences recording and broadcasting and central control. It
64Hikvision 2024 Annual Report
guarantees both unified access and unified O&M management.
3) Network products
Hikvision's network product portfolio is centered on IoT scenarios including integrated monitoring network
solutions. The range covers a variety of products such as switches routers wireless bridges WLAN products all
optical networks and network management platforms. In particular the Company's industrial switches are widely
used in wind power generation solar power generation and synchronized public utility construction; and industrial
bridges allow for wireless data transmission in both line-of-sight and non-line-of-sight environments.In 2024 the Company established the centralized and unified administration of IT+IoT devices by using its
IoT perception capabilities at both front and back ends in combination with networks. "Video-network connectivity"
becomes possible through the globally visible topology structure. The threshold of network O&M is lowered and
O&M efficiency is improved in three ways: quick start convenient management and efficient O&M. Moreover
the IoT switches represented by the light network management series are more suitable solutions for network access
in IoT scenarios.Hikvision's IoT-focused network solutions which are built on unified administration of IT + IoT networks
assist customers in creating networks that are secure dependable and intelligent.
2.2.3 Cloud center products: establishment of an IoT-information network base provision of abundant
feasible solutions
65Hikvision 2024 Annual Report
High-performance and more secure IT infrastructure becomes essential given the rapid development of
technologies such as AI big data cloud computing and cloud storage. Hikvision provides a complete range of
cloud center solutions including servers storage cybersecurity display control network and data security securing
comprehensive secure and advanced basic IT facilities for the Internet of Things.
1) General computing products
Hikvision's general server series is a result of in-house research by Hikvision based on high-performance
processors. Continuous improvements have been made in high-speed signal design overall performance tuning
energy saving and noise reduction and BMC/BIOS's basic firmware development. Moreover the range has been
further expanded to include more product forms such as rack servers edge servers and tower servers as a proactive
response to market demand.
2) Intelligent computing products
Hikvision's intelligent server family offers a wide range of products high GPU card scalability strong
compatibility and superior cost performance. The solutions allow for the real-time processing of massive video
data and the parallel computing of various types of algorithms coupled with improved analysis efficiency and lower
costs. Furthermore by supporting the collaboration between edge computing and center terminals they reduce
bandwidth pressure and improve support efficiency ensuring timely data output. In addition to satisfying the general
demands of the information industry these solutions provide a robust and reliable infrastructure for intelligent
computing centers cloud computing and big data. They deliver a high-performance and highly reliable and secure
infrastructure to a variety of sectors such as government the Internet energy finance operators and others.
3) Central storage products
Central storage products are one of Hikvision's core portfolios as well as the cornerstone of data infrastructure.They are responsible for the storage processing and distribution of massive video/image data. To make better use
of view data and extract valuable information from massive data Hikvision has introduced natural language and
large multimodal video/image models into high-performance storage centers and launched the Wensou CVR
(product name: AcuSeek CVR) storage solution. Apart from storing data it enables the large multimodal modeling
of massive video/image data which helps to make the data more comprehensible. Natural language may be used to
search for targets and incidents greatly improving the efficiency of locating targets in massive video recordings.Thanks to this new technological breakthrough in central storage devices Hikvision now boasts a leading position
in the industry.
66Hikvision 2024 Annual Report
Hikvision's central storage products were completely upgraded in 2024. A new-generation hardware platform
with a modular architecture and comprehensively improved performance is now available. It is the first in the
industry to support 30T hard drives. The new hardware comes with more APIs making it more scalable and
compatible for a greater variety of applications. It has cutting-edge designs that make installation and maintenance
simple such tool-free disassembly and assembly and visible operation monitoring. The solution is also energy-
saving smart and eco-friendly thanks to intelligent sensing-based speed control fans and low-noise design.Advanced technologies such as system safes and trusted startup enabled by TPM (trusted platform module) are
employed to greatly improve system security and reliability. Hikvision's central storage solutions have advanced to
a new level of quality and competitiveness via substantial technical innovation and they are now prepared to create
more value for customers in a wide range of industries.Based on the Company's new-generation distributed file systems Hikvision has introduced two new products:
a standard cloud storage solution and a lightweight cloud storage solution. They adopt a completely symmetrical
67Hikvision 2024 Annual Report
architecture and are integrated with new-generation hardware which leads to less weight better performance more
flexible management and more secure data. This makes them optimal storage cloud solutions in the security
industry. In order to meet the diverse needs of new scenarios for data storage in the age of AIoT Hikvision has
released a range of IoT converged storage products. This set of systems support the converged storage of videos
images files objects and other data. With high storage efficiency and fast and convenient data retrieval the solution
is expected to assist industrial enterprises with digital transformation.In addition Hikvision has released a number of storage products that comply with the SM4 cryptographic
algorithm under China's Commercial Cryptographic Algorithm Standards. They meet the security assessment
standards of data centers and provide holistic solutions to ensure data security and integrity for users.Hikvision's general storage products are under continuous upgrade and iteration. The product line is now
available in centralized distributed and hyper-converged architectures and supports a wide range of storage
technologies including SAN NAS and object storage. Thanks to its cutting-edge expertise in storage technology
as well as persistent R&D Hikvision has made significant breakthroughs in the integration of private cloud and
public cloud solutions and developed user-specific hybrid cloud application capabilities. Powered by a hybrid
storage solution that fuses SSD and HDD as well as innovative read and write algorithms the range provides a
much quicker response performance under high-density access. The solution also supports erasure coding (EC) for
the efficient separation of hot and cold data. Furthermore Hikvision's central storage solutions have shown to be
highly efficient in a number of crucial areas including office automation (OA) database hosting production
management and Internet data center (IDC) construction.
68Hikvision 2024 Annual Report
4) Large-screen display and control products
Under the overarching strategy of "scenario-driven digital operation and integrated display and control"
Hikvision is constantly and thoroughly upgrading its large-screen display and control products and solutions. As
part of its ongoing efforts to develop Mini LEDs COB LEDs and energy-saving LEDs the Company has built
production facilities in Tonglu and Wuhan with full-chain in-house intelligent manufacturing capabilities. This
allows it to overcome major technological challenges in LED production and continuously improve production
capacity and yield. With better color consistency and higher resolution these products are more competitive in the
high-end commercial display market.In line with the strategy of integrated display and control the Company has developed a video processing and
LED display control system utilizing technologies for video processing intelligent image processing encoding and
decoding and intelligent interaction. Integrated with LED display features the solution supports full-chain high-
definition audio and video technology and has the computing power to process in real time the data on videos with
high frame rate high bit depth wide color gamut and high dynamic range. This ensures lossless presentation of
video images and provides users with a more delicate and true-to-life display experience.In 2024 upgraded versions of the SmartWall Client and the ShowOS Large Screen Management Platform were
released marking a full revamp of intelligent display and control platforms. When paired with industry-specific
platforms and a cloud platform the solution provides a rich set of functions such as content management and
interaction management of display devices and delivers scenario-specific management services in various display-
based settings. The product matrix which spans more than 30 segments such as education culture and tourism
industrial parks and healthcare offers a comprehensive suite of full-stack in-house multi-system integrated omni-
69Hikvision 2024 Annual Report
network and scenario-based solutions. In the future the Company will continue to foster the standardized and
intelligent development of the display and control industry accelerate the integration and innovation of "display +
AI + computing power" and build a full-scenario intelligent display and control ecosystem.
5) Cybersecurity and data security products
IoT perception data has emerged as a key production driver propelling businesses intelligent upgrades in the
midst of digital transformation. While the value of IoT data increases the associated security challenges become
increasingly severe. Harnessing its years of practical experience in IoT security protection as well as research and
innovation outcomes on cryptographic technology Hikvision has established a set of full-domain cybersecurity and
data security systems covering "cloud-edge-end" securing reliable protection and security support for users' digital
upgrades.Cybersecurity products: Hikvision's cybersecurity products are dedicated to AIoT security scenarios. This
complete range of AIoT security solutions suit the needs of multiple applications such as endogenous security
access security boundary security security audits and analysis and early warning.In light of industrial features such as the vast number of IoT devices and the increasingly blurred network
boundaries Hikvision has built a security system that integrates dynamic defense real-time detection intelligent
analysis coordinated response and continuous monitoring. It hopes to offer users a safe and reliable intelligent
Internet of Things by providing security capabilities such as terminals' intrinsic safety asset mapping and security
issue inventory equipment access security and threat blocking and quick risk identification and disposal.Data security products: Hikvision's data security products are centered on cryptographic technology and
70Hikvision 2024 Annual Report
classified into four ranges: devices that enable commercial cryptographic algorithms cryptographic application
cryptographic management and cryptographic operation. It provides users with all-round multi-level data security
products and services throughout the entire life cycle of AIoT systems from data collection transmission storage
to application.Based on its in-house design R&D and production skills for cryptographic products the Company is
committed to technical research and innovation upon analysis of the application features and needs of cryptographic
products in AIoT scenarios. This allows it to significantly improve the ease of use stability robustness and
concurrent processing capabilities of cryptographic products in AIoT environments. Moreover Hikvision has
pioneered in the intelligent application of cryptography by combining intelligent technology with cryptographic
technology. Its related products and solutions have successfully addressed various security threats such as
counterfeit attacks data theft and data forgery providing all-round data protection in a wide range of industries
such as public security government judiciary education and healthcare.
2.3 Software Product Family: Software Platforms + Data Models + Business Services
Hikvision's software product family is composed of software platforms data models and business services.
71Hikvision 2024 Annual Report
2.3.1 Software platforms: Basic platforms + general platforms + industry-specific platforms
Basic software platforms: Hikvision continues to improve its basic software in four categories: storage and
computing IoT intelligence and data.Storage and computing software includes the Cloud Computing Platform and the Cloud Storage Platform. The
Cloud Storage Platform is a unified storage foundation built on the in-house Honghu distributed file system and
supports the quick development of new-generation video storage object storage and IoT storage products in agile
response to the needs of technology and business development. The Cloud Computing Platform continues to
improve in basic capabilities such as high availability and multi-type storage access as well as lightweight
architecture. While enabling enterprises' cloud operations it also provides multi-scenario high-availability disaster
recovery solutions to assure business continuity.IoT software includes the AIOT PNP iOMS-IOT and related products providing device access and networking
and integrated O&M service capabilities for various IoT applications.AI software includes the Training Platform the Inference Platform the Large Model Integration Platform and
other related products that provide capabilities of intelligent algorithm generation and application as well as low-
code intelligent application development for a wide range of scenarios.Big data software includes the Bigdata Platform the iDataFusion-Ent BI Modeling and Application Platform
Data Integration Software and Model Warehouse Software among other relevant products providing capabilities
of data storage and computing data aggregation and governance data openness and sharing data modeling and
72Hikvision 2024 Annual Report
application and data model management for a broad range of data applications.General software platforms: Hikvision provides general software functionalities across a number of
industries including comprehensive security software multimedia interactive software fusion empowered software
and scientific instrument software. Taking comprehensive security software as an example it includes platforms for
comprehensive security management canteen consumption management smart broadcast management smart large
screen management and so on. Based on Hikvision's large model technology the new software for scientific
instruments and apparatus like chromatography fusion spectroscopy and microscopes offers integrated intelligent
applications for data collection analysis and reports for key businesses in a variety of industries both offline and
online.Industry-specific software platforms: Hikvision is committed to addressing users' pain points while serving
more than 80 sub-industries. It seeks to use AIoT technology to continually broaden the digital application scenarios
in these segments. For example for essential urban utilities it has introduced specialized applications such as
drainage and flood prevention gas monitoring and digital management of irrigated areas; and applications ranging
from enterprise security industrial park logistics work safety to production administration have been launched to
serve businesses.
2.3.2 Data models: Industry data library governance models + professional business application models
Hikvision has established enterprise data resource standards and data model description specifications and
employed model library software for data model management to address inconsistent standards and high execution
and delivery expenses in data governance and application. Data models are divided into two categories by use cases:
industry data governance models and professional business application models.The industry data governance models are designed to establish industry data library standards in line with
the professional specifications of various industries consolidate all kinds of data governance processes and boost
the efficiency and quality of data governance. Examples include the data governance models for the transportation
sector the emergency management sector smart tourist destinations and higher vocational colleges.The professional business application models are based on AIoT perception data and integrate business data
across several domains. They support applications such as monitoring prediction diagnosis and decision-making
through statistical analysis data visualization and machine learning technology. For instance primary models for
the transportation sector include: a fusion analytics model for road traffic conditions a visual spatiotemporal
73Hikvision 2024 Annual Report
distribution model for OD (Origin Destination) of bus passenger flows a real-time detection model for stop points
of hazardous chemicals vehicles a prediction model for road congestion spreading a traffic prediction model for
metro stations a behavior warning model for unlicensed drivers a diagnostic model for road traffic operation
efficiency an analysis model for spatiotemporal feature correlation of vehicles with fake license plates a dynamic
control strategy model for reversible lanes a level-to-level control model for commercial vehicle risks and an
identification model for illegal commercial vehicles.
2.3.3 Business services: System O&M + data engineering + AI engineering + business operations
System O&M services: Through its AIoT system Hikvision provides customers with all-round support
services for devices systems and businesses in the after-sales stage of its products or projects to ensure the
availability security and reliability of system operation and secure more robust support for systems.Data engineering services: Hikvision provides data engineering services such as data aggregation and
governance and data model implementation for some industry users to tap into the value of data and support business
applications.AI engineering services: Hikvision provides the customers and users of its AI Open Platform with solutions
consultation algorithm design effect optimization suggestions and other services so as to ensure that users can
create their exclusive scenario-specific solutions on the AI Open Platform.Business operations services: Hikvision offers more than ten business operation services via its Internet
operation platform and private deployment methods. Specifically its urban parking operation solution has now been
applied in more than 500 cities and it is continuously spreading to other places; the number of cities using the urban
signal timing solution has seen a further increase; and there is a growing number of users of the Company's business
operation platforms such as fire protection operation smart community operation safety risk monitoring and
warning and comprehensive monitoring of low-grade highways.
3. Business Layout
Data has emerged as a new production factor. The extensive IoT data collected by AI-powered Internet of
Things (AIoT) products facilitates iterative advancements in existing technologies and tools; optimizes workforce
productivity and operational efficiency; and unlocks the latent value embedded in land and capital. This drives the
transformation and upgrading of production models lifestyles and governance frameworks across society.
74Hikvision 2024 Annual Report
Hikvision has been serving for various domestic and international industries for many years providing over
350 solutions in 66 sub-industries across 10 industries related to enterprises and institutions and over 300 solutions
in 37 sub-industries across 5 industries related to public services. Hikvision leverages its global marketing network
to deliver AIoT products and solutions to clients worldwide. Through years of dedicated efforts the Company has
accumulated profound implementation expertise in driving socioeconomic digital transformation.
3.1 Domestic Enterprise & Institutional Business: Driving Digital Transformation in Production
Management
In recent years digital transformation has introduced systemic changes to the manufacturing industry driving
comprehensive optimization and continuous innovation in quality efficiency safety and sustainability. This injects
robust momentum into the high-quality development of manufacturing. During this process digital technologies
and products centered on AIoT have become critical enablers for enterprises to achieve quantifiable management of
production factors and visualized control of production processes. Through the deep integration of digital
technologies enterprises continue to enhance their value creation capabilities in production management.Building on its expertise in AIoT technologies and a comprehensive digital product portfolio Hikvision
addresses core production scenarios by empowering enterprises to establish holistic digital management capabilities.The Company drives digital transformation in key areas such as human-machine collaboration material
management process control safety management and enterprise operations. By creating end-to-end digital
production management systems Hikvision helps enterprises significantly improve operational efficiency
achieving quality enhancement cost reduction and safety optimization thereby providing robust support for high-
quality development.
1) Helping to digitalize workforce and production tools
The digital transformation of production management constitutes a strategic priority for industrial enterprises
where workforce and equipment serve as critical components of manufacturing ecosystems. Their collaborative
efficiency directly determines production efficiency and product quality. Hikvision's AIoT-powered solutions deeply
integrate large-model technology to enable scenario-specific digital transformation ensuring operational
compliance of personnel and operational stability of equipment thereby establishing resilient adaptable and
75Hikvision 2024 Annual Report
sustainable production frameworks.As the primary productive force workers' operational compliance fundamentally governs production quality
and efficiency. Hikvision's production line camera series empowered by large-model technology implement real-
time monitoring and intelligent analysis of workforce operations. Through multi-dimensional interference filtering
and multi-layered error-proofing mechanisms these solutions guarantee precision-controlled production workflows.For example during assembly operations the system promptly identifies potential component misplacement or
omission while in packaging workflows it detects misplaced or missing accessories. These solutions have been
implemented across diverse industries including computer/communication/consumer electronics home appliances
automotive manufacturing auto parts equipment manufacturing food & beverage and pharmaceuticals driving
operational standardization and enhancing quality and efficiency.The continuous advancement of manufacturing automation has elevated production equipment to core
components of industrial systems where their operational status directly affects production continuity and stability.Leveraging its cutting-edge AIoT technologies Hikvision has developed comprehensive status monitoring and
intelligent analytics solutions through multi-modal large model algorithms. These solutions serve rotating
equipment static installations electrical systems and instrumentation devices. Validated across pharmaceutical
logistics machining auto parts electronics iron & steel metallurgy and petrochemical sectors the system enhances
equipment health management while optimizing maintenance efficiency.In equipment monitoring Hikvision's sound-vibration-temperature series monitor temperature vibration and
sound data of critical components (e.g. motors bearings) in real time and provide anomaly alerts significantly
improving maintenance efficiency. The integration of fiber-optic monitoring solutions with large-model technology
effectively warns against operational risks in long-distance conveyor belt rollers to ensure equipment stability.Additionally the large model-powered meter recognition series automates data collection and reporting from
76Hikvision 2024 Annual Report
production equipment gauges.In human-machine collaboration applications Hikvision utilizes multi-dimensional IoT perception
technologies to establish secure and reliable remote auxiliary control systems enhancing operational safety and
efficiency. In industries such as steel metallurgy machinery manufacturing and logistics terminals cranes—as
critical production equipment—frequently encounter challenging operational environments characterized by dust
smoke and vibrations. These conditions often result in operational constraints reduced productivity and elevated
safety risks. Hikvision's anti-vibration camera series featuring patented structural designs effectively mitigate
image distortion caused by mechanical vibrations providing crane operators with stable and clear visual feedback.Furthermore the implementation of large-model technology enables strict adherence to the "man-free safety
protocols" for crane operations. The system provides intelligent detection and real-time alerts for unauthorized
personnel intrusions within operational zones. Integrated with advanced intelligent hook-tracking algorithms it
dynamically monitors hook positions offering operators intuitive and precise visual guidance to ensure safe and
efficient crane operations.
2) Helping to digitalize material flow and inventory management
Material flow constitutes a mission-critical process throughout production cycles where data accuracy ensures
component completeness and circulation efficiency. Hikvision's deep learning-based barcode/OCR technology
powers its comprehensive PDA portfolio – including full-touch button-operated DPM-specific and cold-chain
optimized models – enabling precise identification of 1D/2D codes and alphanumeric data across diverse material
surfaces. These devices enhance accuracy and efficiency in loading/unloading and material transfer operations
effectively reducing production anomalies caused by material mismatches. Furthermore by integrating video
capabilities Hikvision delivers end-to-end visibility and traceability of material flow data empowering enterprises
to achieve closed-loop digital logistics management.
77Hikvision 2024 Annual Report
As vital corporate assets the precise management of materials directly impacts production efficiency and order
fulfillment. Accurate inventory control is pivotal for production management requiring comprehensive asset
auditing systems for everything from miniature electronic components to bulk commodities like coal and cement.This helps ensure systematic production continuity.In electronics manufacturing Hikvision's X-ray intelligent component counter streamlines electronic remnant
inventory. Using X-ray penetration technology it achieves 99.99% accuracy in identifying quantities of components
in trays. Meanwhile the PDA series enables smart audits of electronic material storage operating 7-8 times faster
than manual methods. Widely adopted in SMT LED lithium battery automotive electronics and consumer
electronics sectors the X-ray counter ensures efficient management of electronic materials.In cement steel coal mining chemical and power generation industries traditional manual inventory methods
struggle with complex material varieties irregular stacking patterns inefficiency high costs and measurement
inaccuracies - particularly for bulk materials like aggregates and ores. Hikvision's radar-based volume measurement
solutions overcome these challenges. Designed for high-temperature high-dust environments including aggregate
yards and clinker silos the technology delivers precise volumetric measurements of irregular stockpiles. This
enables scientific inventory management and supports data-driven production planning.
78Hikvision 2024 Annual Report
3) Helping to digitalize process execution and quality control
Comprehensive production monitoring enables real-time operational visibility anomaly detection and process
optimization. Hikvision helps enterprises establish visible quantifiable and traceable monitoring systems shifting
management from experience-driven to data-driven approaches. This transformation enhances quality control
operational efficiency and cost-effectiveness across manufacturing execution.Visualization proves fundamental for production oversight. Traditional manual inspections face time
constraints and limited coverage. Hikvision's AR/VR-enabled workshop solutions integrate multi-dimensional data
visualization creating intuitive accurate and real-time monitoring dashboards. The system improves detection of
production risks such as workflow deviations or non-compliant operations accelerates anomaly resolution and
provides comprehensive data traceability for root-cause analysis.To meet scenario-specific and personalized market demands frequent production line adjustments are often
necessary. However this introduces challenges like rapid capacity ramp-up equipment anomaly troubleshooting
remote maintenance and inflexible paper-based work instructions. Hikvision's compact industrial-grade production
line cameras support installation in confined spaces. High-definition high-frame-rate video enables engineers to
swiftly pinpoint equipment issues optimize parameters and enhance efficiency in capacity scaling anomaly
analysis and remote maintenance. Integrated with barcode scanning systems these cameras link video data with
product information for full-process quality traceability. Additionally the ESOP (Electronic Standard Operating
Procedure) terminal consolidates process visualization retrieval and task distribution dynamically updating
instructions based on production orders. This delivers precise guidance and real-time reporting elevating both
efficiency and output quality.
79Hikvision 2024 Annual Report
In manufacturing product quality is a cornerstone of competitiveness. Hikvision's robust IoT perception
capabilities and innovative large-model algorithms empower enterprises to establish end-to-end quality control
systems from raw materials to finished goods thereby enhancing product competitiveness. For product assembly
vision-based large-model algorithms detect misassembled or missing components in real time triggering immediate
alerts for packaging errors. For internal defects Hikvision integrates X-ray industrial inspection systems with large-
model technology to identify soldering voids and short circuits in circuit boards. This solution also excels in foreign
object detection for food and pharmaceuticals ensuring superior product quality. In compositional analysis
Hikvision employs chromatography for precise substance profiling in food environmental pharmaceutical and
chemical sectors. Combined with spectral technology the systems accurately measure coal's calorific value ash
content sulfur levels and moisture with large-scale deployments in coal plants power stations coal-chemical
facilities cement plants and metallurgical operations.
4) Helping to digitalize production safety management and emergency command
Safety production is the cornerstone of enterprise survival and development. Hikvision focuses on risks across
personnel materials equipment and environmental factors enabling real-time monitoring of hazards throughout
production processes. This empowers enterprises to enhance risk identification capabilities proactively detect safety
threats and effectively reduce the likelihood of accidents.Robotic arms as critical automation tools in material handling maintenance and servicing pose inherent
safety risks to nearby workers. Hikvision integrates deep learning AI algorithms with triple-lens cameras to
80Hikvision 2024 Annual Report
accurately detect personnel intrusions and trigger real-time alerts. The system interfaces with robotic control
systems to enforce intelligent safety protocols such as disabling robotic arm activation when personnel are present
ensuring safe human-machine collaboration.In industries such as oil chemicals and natural gas gas leaks may cause material losses or catastrophic
incidents involving flammable explosive or toxic substances. Hikvision deploys fixed gas detectors at critical
points such as valves pipelines and storage tanks for real-time monitoring of combustible and hazardous gases.Portable gas monitors worn by workers detect oxygen methane carbon monoxide hydrogen sulfide and other
hazardous gases enabling on-site risk awareness. Hyperspectral Fourier gas remote sensors installed at elevated
vantage points remotely detect and map gas plumes from leaks identifying over 490 hazardous substances like
methane and ethylene and visualizing gas dispersion patterns to guide rapid repair efforts.Emergency command as the final safeguard in safety management forms a closed-loop system encompassing
prevention incident response real-time mitigation and post-event analysis. Hikvision unifies existing
communication devices—audio video and conferencing systems—into an integrated platform for seamless and
centralized emergency command access and dispatch. Aligned with enterprise emergency protocols the system
integrates structured contingency plans resource centralization scenario-specific analysis real-time "command
dashboard" visualization and post-incident evaluations. Combined with dual-prevention mechanisms it ensures
both routine safety governance and agile crisis response across entire operations.
5) Helping to digitalize group-wide management and supply chain collaboration
Industrial parks as core hubs for industrial growth require digital upgrades to optimize enterprise-wide
operational efficiency. As businesses expand managing multiple factories and parks poses significant challenges.Hikvision's group-wide chain solution establishes standardized shared and aligned management systems and
frameworks transitioning from "single-park management" to "integrated group operations." This breaks silos
81Hikvision 2024 Annual Report
enables cross-domain coordination and creates unified governance models.For personnel management the system supports seamless access precise attendance tracking self-service
cafeteria payments and streamlined dormitory check-ins across campuses. For vehicle management it facilitates
cross-campus entry/exit and parking for employee vehicles coordinates cross-campus transportation scheduling and
operations for logistics fleets and enables remote monitoring of weighbridge operations. In safety management the
platform ensures unified security control across multiple campuses implements tiered incident classification and
reporting protocols and activates group-wide emergency command during major incidents to safeguard operations.For inspections the group replaces manual audits with AR/VR-enabled digital inspections for real-time visibility
data-driven control and operational transparency.Supply chain management directly impacts operational efficiency market competitiveness and sustainability.Hikvision's Hik-Cloud Enterprise solutions enable digital supplier management fostering collaborative models for
production management quality control and channel alignment to strengthen supply chain ecosystems.In terms of production collaboration multi-level remote visualization tools enable end-to-end transparency
from factories to production lines and equipment. The Hik-Cloud Enterprise SaaS platform provides real-time
monitoring of production statuses and process SOP compliance at critical control points triggering instant anomaly
to ensure process adherence. For quality collaboration Hikvision replaces costly on-site supplier audits with remote
quality inspections via the platform ensuring precise control over raw material quality and end-to-end product
integrity. Regarding channel collaboration Hikvision enables remote oversight of regional warehouse inventories
channel display standards and service compliance optimizing supply chain agility and accountability.
82Hikvision 2024 Annual Report
3.2 Domestic Enterprise & Institutional Business: Enabling Digital Transformation in Lifestyle
In recent years digital technologies have found applications in various aspects of social life enhancing people's
experiences in daily necessities housing and transportation and strengthening their sense of fulfillment and
happiness. Hikvision relentlessly explores new business opportunities for lifestyle improvement and upgrading and
continues to develop innovative digital life service applications to accelerate the digital transformation of lifestyle.
1) Education: Building intelligent safe and healthy learning environments
As the digital transformation of education advances Hikvision leverages AIoT technologies and collaborates
with academic institutions to deliver premium digital services for teachers and students across all educational stages
aligning with the demand for high-quality educational development.In higher education Hikvision's "2+2+1" smart classroom solution features two intelligent control engines to
enable holistic smart management and automated operation across diverse teaching spaces. Two non-intrusive audio
amplification systems create immersive audiovisual environments while an AI-powered recording and broadcasting
system integrated with large-model algorithms supports innovative applications like classroom behavior analytics.The solution's fully networked simplified architecture supports hybrid online-offline teaching models while driving
pedagogical innovation and teaching quality improvement.In primary and secondary school campuses video surveillance systems covering key areas are deployed
alongside perimeter protection and climbing detection AI algorithms to analyze risky behaviors. Large vision
models improve detection accuracy and reduces false alarms significantly lowering safety management costs.In sports facilities like playgrounds and gyms smart sports terminals record exercise routines provide
movement analysis for skill improvement support teaching and fitness assessments and engage students through
interactive challenges and performance rankings boosting physical fitness and participation.Hikvision's smart products and solutions have been adopted by leading institutions such as Shanghai Jiao Tong
University and Wuhan University as well as numerous K-12 schools nationwide creating intelligent secure and
83Hikvision 2024 Annual Report
health-focused educational environments.
2) Smart healthcare: Elevating service quality and efficiency
In healthcare where service quality critically impacts public health and well-being Hikvision integrates IoT
AI analytics and cross-system data processing to develop closed-loop full-process diagnostic and treatment models.Hikvision's smart ward solutions address the needs of medical staff caregivers and patients. Features like
Caregiver positioning call transfer and automated rounds check-ins streamline workflows and improve patient
experiences. For bedridden patients 5G-enabled medical PDAs measure pressure ulcer areas and automatically
document results. Millimeter-wave perception radar products detect falls in real time while continuously monitoring
patients' breathing heart rate and movements for 24/7 patient safety. AI-powered infusion monitoring systems track
fluid levels and alert staff for timely interventions. To facilitate smart outpatient service multi-format guidance
terminals and intelligent algorithms optimize the entire patient journey automating triage and resource allocation
to enhance clinic efficiency and orderliness. In digital operating rooms video communication terminals integrate
medical data to provide surgical references improving team coordination. Intelligent telemedicine terminals enable
coordinated treatment between pre-hospital and in-hospital teams through video and audio interactions and multi-
modal data transmission for pre-hospital emergency care remote consultations and cross-facility collaborations
effectively enhancing elevating treatment capabilities.Hikvision remains committed to advancing healthcare through digital transformation and intelligent innovation
continuously enhancing service quality and operational efficiency. Its medical solutions empower healthcare
institutions to deliver patient-centric care with proven deployments at China's leading medical institutions
including Qilu Hospital of Shandong University the First Affiliated Hospital of Ningbo University West China
Hospital of Sichuan University and the First Affiliated Hospital of Zhengzhou University.
3) Trade and commerce: Enabling end-to-end digital transformation from warehouses to stores
84Hikvision 2024 Annual Report
Hikvision leverages its Hik-Cloud Chain platform and Guanlan Large Model to provide products and solutions
for trade and commercial enterprises across chain stores warehousing logistics and production campuses. Through
AI-powered store inspections customer flow statistics information broadcasting visualized traceability warehouse
management and vehicle yard management the solutions enhance store operations and upstream production-
distribution efficiency.Hikvision's Hik-Cloud platform enables remote visual management of all stores through networked video
solutions. Trade and commerce-specific large models analyze employee uniform operational procedures sanitation
standards and food safety protocols to ensure compliance and streamline inspections. Centralized digital signage
and audio systems synchronize marketing campaigns and announcements across locations. Customer flow cameras
support multi-dimensional data analysis for footfall assessments and marketing optimization. Visual traceability
platforms links personnel materials and orders to resolve disputes and quality issues with credible evidence. PDA
devices accelerate inventory management while digital dock and yard management systems (YMS) increase
logistics efficiency with higher utilization rates.Hikvision's comprehensive AIoT portfolio drives digital transformation for trade and commercial enterprises.As of the end of 2024 Hik-Cloud Chain serves approximately 700000 chain stores with over 6 million connected
devices maintaining rapid growth in both user adoption and ecosystem scale.
4) Real estate and property management: Advancing digitalization of property services through technology
85Hikvision 2024 Annual Report
and enhancing residential quality
Hikvision leverages technology to serve communities offering integrated solutions spanning marketing
facility support and smart home services across the entire property lifecycle. These solutions support the
development of high-quality residential projects by aligning with the full lifecycle of housing construction.During construction AI-powered cameras deployed on-site document construction progress and assist
managers in monitoring timelines. Crane monitoring sensors prevent overload risks during hoisting operations.Commercial displays and irregular-shaped screens in sales centers showcase location advantages floor plans and
smart community features driving digital customer engagement. Integrated smart public area and home solutions
cover multiple living spaces featuring smart access control AI-enhanced security applications and nine-category
smart home services. Interactive tech experiences highlight project premiumness boosting technological branding
and market value. Smart home demo rooms provide immersive tech interactions enhancing purchase experiences
and decision-making efficiency. AI-powered inspection platforms standardize property services while reducing on-
site workloads achieving quality and efficiency improvements.Hikvision has deepened its expertise in real estate through strategic collaborations with Binjiang Real Estate
Group Shanghai Poly Property Services and Yongsheng Property Management fostering mutually beneficial
partnerships and innovation.
5) Cultural and museum venues: Preserving cultural heritage through digital-intelligence integration
China's five-thousand-year cultural treasures demand not only preservation of heritage but also technological
safeguarding. Hikvision focuses on the preservation of cultural relics while enabling public access to the splendor
of traditional culture through innovative digital solutions.Archaeologists utilize 3D super-depth microscopes to magnify surface structures of ceramics bronzes and
textiles analyzing craftsmanship and degradation patterns to guide restoration plans. Multispectral fire detectors
86Hikvision 2024 Annual Report
protect ancient architecture by identifying fire risks at ultra-early stages pinpointing ignition sources and triggering
instant responses. In humid or rainy regions portable thermal imagers detect water seepage and hollowing in ancient
walls uncovering hidden structural risks. Intelligent security gates at museum entrances identify prohibited metal
items (e.g. restricted knives) and alert staff for manual checks ensuring visitor safety and order. An AIoT hub
integrates museum security systems creating a digital twin through data interoperability. This 3D visualized security
monitoring system consolidates all safety parameters onto a single interface enabling holistic oversight.Hikvision remains dedicated to preserving cultural heritage through digital-intelligence integration. Its solutions
have been deployed at the Palace Museum Henan Museum and other partner institutions advancing the
preservation and inheritance of cultural legacy.
6) Tourism attractions: Crafting comfortable travel experiences through multi-dimensional enhancements
The integration of culture and tourism serves as a vital pathway to fulfill people's aspirations for quality living
in the modern era with digital technologies driving high-quality development in cultural tourism as a new quality
productive force. Hikvision develops integrated intelligent solutions spanning service experience safety and
management domains for tourist attraction scenarios.At visitor service centers interconnected ticketing systems and validation devices streamline entry processes—
from reservation and online purchase to on-site pickup and multi-mode verification—reducing wait times. To
safeguard natural resources in scenic areas AIoT solutions enable geological displacement monitoring thermal
imaging and water quality analysis to identify risks including geologic hazards forest fires floods/droughts and
hydrological anomalies. This technological integration elevates operational efficiency in environmental monitoring
and hazard mitigation. Sound-vibration-temperature monitoring products monitor cableway motor health and detect
anomalies in cableway facility operations. Smart meters automate equipment status checks during routine
87Hikvision 2024 Annual Report
inspections. Environmental/meteorological and tilt sensors track weather impacts on outdoor cableway operations.At operational command centers Hikvision's solution aggregates multi-dimensional perception data (visitor flow
vehicle tracking perimeter security fire control) to establish a 3D digital twin-powered command platform. This
system enables real-time precision monitoring equipment control data analytics emergency response coordination
and operational task management via an intuitive interface.Hikvision's smart tourism solutions optimize destination management and services through scenario-based
digital applications elevating travel experiences. In collaboration with partners including Mount Tai in Shandong
and the Sand Lake in Ningxia the Company empowers intelligent sustainable growth in the cultural tourism sector.
7) Financial services: Focusing on the "Five Key Financial Initiatives" to enable new service models
The "Five Key Financial Initiatives" — Technology Finance Green Finance Inclusive Finance Elderly Care
Finance and Digital Finance — serve as critical pillars for financial institutions to support high-quality economic
growth. Leveraging its technological strengths Hikvision empowers financial institutions to enhance internal-
external scenario management and drive business innovation.Hikvision integrates LCD video walls LED displays and multi-format smart screens with theme-based designs
such as dual-carbon energy efficiency senior-adaptive interfaces rural revitalization and wealth management.These solutions enable banks to establish specialized branches—green branches elderly care branches inclusive
finance outlets and wealth centers—facilitating channel transformation and delivering specialized and tailored
financial services.Hikvision's financial smart inspection system deploys edge computing devices such as compliance risk-control
terminals powered by large vision models covering dozens of security and operational scenarios across financial
institutions and office facilities. This system replaces traditional manual inspection methods with digital solutions
achieving significant cost reduction and efficiency gains.Amid China's deepening aging population trends Hikvision collaborates with banks and insurers to enhance
88Hikvision 2024 Annual Report
elderly financial services. Through devices such as life health radars fall detection sensors smart care terminals
and homecare wristbands the Company supports insurers in digitizing community-based and in-home elderly care
models under the "Insurance + Wellness" framework elevating customer experiences.These solutions have been deployed by institutions including Agricultural Bank of China Industrial and
Commercial Bank of China China Postal Savings Bank China Merchants Bank Pacific Insurance and Taikang
Insurance accelerating the implementation of the "Five Key Financial Initiatives".
3.3 Domestic Public Service Business: Facilitating Digital Transformation in Governance Methods
The digital transformation of governance has become an irreversible trend in the digital age with e-government
initiatives entering an accelerated development phase globally. Advancements in IoT perception large models big
data and cloud computing are driving intelligent digital governance now recognized as a critical enabler for societal
digitalization and national governance modernization. Hikvision grounded in its AIoT technological framework
continuously strengthens four foundational platforms - Perception Base Intelligence Base Data Base and
Fusion Empowerment capabilities and expands its five core industry verticals: security mobility ecology
governance and service striving to realize six strategic objectives: smarter cities safer communities more
efficient mobility precision governance targeted service delivery and livable ecological environments.Hikvision deepens and enhances its foundational platform capabilities. In developing its perception base
Hikvision continuously advances full-spectrum and multi-dimensional perception technologies expanding its
89Hikvision 2024 Annual Report
product portfolio. Guided by scientific deployment principles it enhances scenario-specific perception terminals to
address operational challenges building intelligent multi-layered urban IoT perception systems. To strengthen its
intelligence base Hikvision integrates domain knowledge to develop industry-specific large models based on large
IoT perception models large language models and multi-modal large models. Its centralized AI model hub powers
the scenario-optimized Wensou series improving detection accuracy for urban safety incidents anomalous
behaviors and smart scenarios while enhancing interactive experiences. The platform supports GPU compatibility
unified model management and autonomous algorithm training for new scenarios. In terms of its data base
Hikvision focuses on deep integration of visual and operational data. It enhances data governance efficiency and
quality through automated tools deeply mines data value via analytical automation and builds a graph-data
convergence system encompassing data aggregation processing governance mining and service delivery. To
enhance its fusion empowerment capability Hikvision entered on collaborative development resource sharing
and cross-domain integration integrates multi-source perception AI and data resources across industries and urban
systems. This enables cross-sector cross-department and cross-level coordination in infrastructure deployment
video sharing algorithm co-management capacity sharing computing power integration and event co-governance
driving rapid smart scenario implementation in diverse industries.Leveraging deep industry insights and practical expertise Hikvision strengthens its professional service
capabilities in AI engineering data management system operations and solution maintenance. Through nationwide
service support teams it enhances customer engagement across vertical markets. Hikvision continuously enhances
its PIDAM (Perception-Intelligence-Data-Application-Maintenance) framework capabilities covering systems
design development integration and project management. Through strategic collaboration with system integrator
partners it delivers full-cycle project assurance for end users across industries.Hikvision broadens and deepens its industry applications. Hikvision continues to expand and solidify its
presence in security mobility ecology governance and service sectors. Leveraging industry-specific business
scenarios as implementation frameworks and building upon its AIoT capabilities the Company delivers end-to-end
solutions through continuous advancements in its Guanlan Large Model and image-data integration technologies
enabling cross-industry intelligent innovation and operational efficiency enhancement. To date the Company has
deployed more than 2000 business scenarios over 100 large model algorithms more than 150 business models
over 500 intelligent industry applications and more than 300 industry solutions. These achievements span smart
cities public safety emergency management traffic control social governance smart parking and smart water
90Hikvision 2024 Annual Report
conservancy offering robust technological support for modernized urban governance.
1) Smarter cities
In the smart city sector Hikvision integrates IoT and AI technologies to build an end-to-end intelligent
governance system encompassing "perception-analysis-decision-execution". This system precisely monitors urban
operational details provides scientific decision-making support for city administrators drives the transformation of
urban governance into data-driven models and advances the development of smarter cities.Leveraging multi-modal foundation models the Company enhances its fusion empowerment product suite to
build secure reliable and interoperable city-level intelligent hubs. These systems enable dynamic catalog
management and cross-domain resource orchestration for million-scale IoT devices. Through advanced perception
data cognition capabilities they improve accuracy in detecting regulatory violations and safety risks while
establishing intelligent incident dispatch mechanisms to meet multi-industry operational demands and empower
scenario-based smart applications.
91Hikvision 2024 Annual Report
Furthermore Hikvision provides comprehensive and diverse solutions for grassroots urban administrators at
village neighborhood and community levels.In the digital village sector Hikvision advances its Five-Pillar Revitalization framework: industrial growth
ecological sustainability governance modernization service enhancement cultural preservation. Focusing on rural
industries the Company delivers scenario-specific applications including crop growth monitoring systems and
smart tourism platforms driving quality development in rural agriculture and tourism. Regarding rural ecology
Hikvision deploys intelligent monitoring systems for water quality management and automated village landscape
inspections enhancing ecological protection and residential environment enhancement. In rural governance the
Company implements intelligent systems for drowning prevention monitoring and community behavior scoring
optimizing rural governance operations. For rural services Hikvision deploys smart elderly care systems and e-bike
charging infrastructure expanding service accessibility across daily life education healthcare and elderly care
thereby elevating rural living standards. To promote rural culture Hikvision provides solutions for cultural resource
management and agricultural skill training supporting the sustainable inheritance of rural cultural heritage.
92Hikvision 2024 Annual Report
In the smart township sector Hikvision continues to optimize its solutions with road condition monitoring
systems and scene analysis tools effectively improving municipal management efficiency. Focusing on public
safety initiatives the Company provides fire safety supervision and dispute mediation applications to enhance
security management. For public services smart publicity systems and intelligent broadcasting solutions strengthen
community service capabilities. In ecological protection flood prevention monitoring and forest fire surveillance
systems improve environmental conservation. Through law enforcement team management and evidence tracking
tools the Company supports the modernization of integrated grassroots law enforcement operations.In the smart community sector Hikvision continues to advance its integrated management system solutions.In community governance the Company provides scenario-based applications including non-motorized vehicle
management and high-rise littering management promoting more precise intelligent and efficient governance. For
community safety intelligent access control systems and critical facility protection solutions help establish
comprehensive safety-fire prevention supervision systems enhancing residents' security. Regarding community
services elderly care support and digital service guidance applications improve residents' well-being and service
accessibility. In integrated community management centralized management dashboards and work order systems
strengthen operational efficiency and service capabilities.
2) Safer communities
93Hikvision 2024 Annual Report
In the public safety domain by following the core development path of "perception + intelligence" Hikvision
is committed to providing comprehensive "video-image intelligence-based" solutions and products. Empowered by
the Guanlan Large Model Hikvision expands industry application scenarios and actively integrates video
surveillance with radar infrared vibration and audio sensors to enhance environmental perception and early
warning capabilities in complex scenarios driving intelligent public safety upgrades and safeguarding the Safe
China initiative.In the road traffic safety sector Hikvision deeply integrates IoT perception technology and big data analytics
with industry scenarios delivering comprehensive safety solutions for expressways national/provincial highways
and urban/rural roads. By analyzing traffic safety conditions and identifying risk factors the Company implements
refined governance for hazard scenarios and targeted control of key vehicles (e.g. heavy trucks non-motorized
vehicles) supporting authorities in enhancing safety management. Additionally Hikvision provides multi-
dimensional capabilities including refined perception data management and analytical tools to regulate travel
behaviors and ensure operational safety offering robust support for efficient and secure road traffic systems.Taking road hazard management as an example: For highway traffic police stations key vehicle alerts assist
officers in identifying expired inspections and cloned vehicles. On highway sections the system detects speeding
low-speed driving illegal parking emergency lane violations reversing wrong-way driving and illegal lane
changes in tunnels. In adverse weather zones weather monitoring road condition warnings dynamic speed limits
tailgating detection and merging alerts enhance safety. At uncontrolled intersections village-crossing sections
sharp curves and cliffside roads oncoming vehicle alerts speed warnings and pedestrian crossing notifications
mitigate risks. These integrated capabilities establish comprehensive hazard management improving traffic
governance and road safety.
94Hikvision 2024 Annual Report
Furthermore for regulating vehicle driving behaviors Hikvision's traffic violation detection system
integrates violation identification data transmission visual alerts and application processing. At urban intersections
it detects red-light running lane crossing wrong-way driving improper lane usage and traffic restriction violations.On road segments it monitors speeding illegal parking failure to yield to pedestrians and phone use while driving.The system additionally identifies truck overloading overcrowded vans illegal honking and license violations
providing real-time evidence for on-site safety education to standardize driving behaviors and ensure road safety
and efficiency.In emergency management Hikvision provides IoT connectivity risk monitoring and intelligent early
warning applications for hazardous chemicals fireworks and firecrackers non-coal mines and industry and trade
enterprises alongside specialized operation management tools for high-risk scenarios like hot work and confined
spaces to enhance safety oversight. For natural disasters such as forest/grassland fires typhoons floods and
geological hazards the system offers disaster risk monitoring comprehensive assessment early warning and
situational analysis to strengthen disaster prediction capabilities. For risk-prone locations such as construction sites
small-scale commercial premises dilapidated houses and gas stations multi-domain risk monitoring assessment
and closed-loop control applications enable remote dynamic supervision mitigating risks and supporting resilient
urban safety. For sudden incidents end-to-end emergency command capabilities including comprehensive analysis
95Hikvision 2024 Annual Report
dispatch coordination and post-event evaluation are deployed. Scenario-specific analysis tools further improve
emergency response for hazardous chemical accidents forest fires urban waterlogging and other critical disasters.
3) More efficient mobility
Hikvision integrates IoT perception technology with transportation scenarios including infrastructure
digitalization operational reliability traffic management hub logistics and mobility services. The Company
provides refined perception capabilities and data-driven decision-making mechanisms to ensure secure and efficient
transportation systems.For congestion diagnosis and management Hikvision deploys a variety of perception devices control systems
and computing platforms to collect multi-dimensional intersection data forming a digital perception base through
multi-source fusion. Leveraging its traffic cognition engine the Company provides control strategies decision-
making models performance evaluation and simulation tools. Traffic pattern analysis identifies recurrent
congestion points while operational diagnostics analyze intersection inefficiencies to generate signal timing
adjustments and lane configuration recommendations. Integrated intelligent systems including traffic signal control
traffic flow optimization and dynamic route guidance regulate traffic demand through travel time allocation lane
utilization and route planning. Signal timing optimization services with standardized workflows enhance urban
traffic management precision through system-service integration achieving congestion mitigation goals.Hikvision's smart traffic signal control platform delivers targeted capabilities across scenarios: For isolated
intersections actuated control and adaptive algorithms resolve improper signal timing. For urban arterials
dynamic/fixed green wave coordination and short-zone coordination improve overall traffic flow efficiency. For
regional multi-intersection coordination dynamic optimization achieves network-wide traffic flow maximization.For queue spillover risks overflow prevention protocols maintain intersection functionality. For uneven turning
flows dynamic lane allocation balances lane utilization to reduce congestion.
96Hikvision 2024 Annual Report
Additionally Hikvision provides comprehensive solutions for traffic management operations across diverse
sectors to ensure safe and efficient transportation systems.In highway transportation Hikvision integrates multi-dimensional perception AI and large model
technologies to advance intelligent applications across construction management maintenance and service
operations. The Guanlan Large Model enhances AI-driven precision monitoring for bridges slopes tunnels service
areas construction sites toll stations mountain roads and low-visibility zones. Project management tools
streamline workflows while AI-powered road inspection devices and maintenance decision systems optimize
infrastructure upkeep. Multi-channel traveler information services improve journey safety and comfort supporting
efficient transportation networks.For integrated transportation hubs Hikvision addresses stakeholders' management and service needs by
delivering full-scenario monitoring and control capabilities for key areas including drop-off zones ride-hailing/taxi
lots public parking and transfer concourses. Tailored to passenger arrival/departure flows the system provides
ride-hailing dispatch alerts taxi queue predictions parking availability updates and emergency assistance.
97Hikvision 2024 Annual Report
Scenario-specific IoT perception technologies empower hubs to function as critical urban mobility anchors.In port management Hikvision focuses on safety management intelligent operations equipment
maintenance and terminal zone governance. By integrating video audio radar thermal imaging and other multi-
dimensional perception technologies with AI capabilities it delivers comprehensive monitoring for hazard detection
conveyor belt inspections crane CCTV/remote control and gate management. These solutions accelerate digital
transformation ensure operational safety optimize cargo handling efficiency and advance the development of next-
generation secure smart and sustainable ports.In rail transit Hikvision leverages multi-dimensional and AI technologies to address operational needs
including station passenger flow management facility maintenance rail corridor patrols and control center
coordination. The solutions feature abnormal behavior detection crowd control smart security screening work
safety monitoring automated corridor inspections and operation status oversight. These capabilities support safe
and efficient urban rail operations while enhancing passenger safety and comfort.
98Hikvision 2024 Annual Report
4) Precision governance
For critical urban infrastructure including gas pipelines drainage systems bridges water supply networks
heating systems and utility tunnels Hikvision integrates IoT perception risk assessment decision support digital
twins and scenario-specific applications. Through pipeline network modeling and multi-modal large models the
Company develops digital monitoring platforms to enable precision management of underground utility networks.Hikvision delivers a comprehensive risk assessment system for urban lifelines enabling risk indicator
management through intelligent warnings and risk inventory control. Its digital twin applications support 3D
99Hikvision 2024 Annual Report
pipeline modeling real-time data visualization and predictive analysis via simulation engines. The decision
command system integrates pipeline data mapping risk data overlay and statistical analysis for real-time risk
detection supported by a unified operational dashboard and emergency dispatch for visual and efficient incident
management in underground utility networks. In drainage management Hikvision deploys subsurface level and
flow sensors to monitor drainage network operations in real time providing urban waterlogging information
management applications to support flood monitoring early warnings and situation analysis. For gas safety fixed
laser methane detectors enable real-time gas concentration monitoring with pipeline operation management tools
to facilitate risk identification. For bridge management visual deformation sensors and traffic checkpoints correlate
structural data with vehicle traffic information offering structural anomaly detection capabilities to enhance bridge
safety. For water supply heating systems and underground utility tunnels leakage pressure flow and water quality
monitoring devices provide comprehensive operational monitoring and risk early warnings across critical
infrastructure.Additionally Hikvision offers comprehensive solutions for diverse urban governance needs. In urban
operations management its smart city management platform integrates urban management dome cameras urban
management panoramic PTZ cameras AI analytics servers and other devices to enable intelligent inspections of
urban appearance urban waterlogging monitoring illegal construction detection construction waste transport
tracking centralized operations monitoring and other applications. The platform provides warning and algorithmic
scheduling capabilities for nearly 70 types of regulatory violations ranging from fixed-point monitoring to mobile
patrols and from single-scenario to complex-area coverage helping to create a clean tidy and orderly urban
environment. In terms of environmental sanitation supervision Hikvision provides a smart environmental sanitation
platform with a focus on scenarios such as sanitation worker and vehicle operation garbage collection and
transportation station management and garbage classification.The platform allows worker and vehicle operation
supervision garbage collection and transportation management garbage classification management station
operation supervision and other applications through the use of intelligent vehicle terminals garbage classification
cameras intelligent analysis supercomputers and other devices facilitating refined supervision of urban appearance
and environmental sanitation.
5) Targeted service delivery
Hikvision integrates industry-specific software platforms such as the smart elderly care platform online market
supervision platform and urban parking operation management platform to provide complete solutions for business
100Hikvision 2024 Annual Report
areas including civil administration-led elderly support market supervision and smart parking helping enhance
service precision.In the field of civil administration-led elderly support with a focus on scenarios such as institutional elderly
care elderly caregiving and service supervision Hikvision implements applications such as smart caregiving and
smart wards through devices including nurse station hosts bedside terminals fall detection radars and smart care
terminals facilitating the intelligent transformation of elderly care services.Hikvision provides an intelligent elderly care application that conducts intelligent analysis of scenarios such
as falls prolonged sitting/standing and hand-raising assistance requests delivers continuous health monitoring for
the elderly and builds health profiles helping to create safer care environments. It offers a smart ward system
tailored to elderly care facility requirements providing bed management bedside call functions and intelligent
reminders to facilitate timely communication between medical staff and patients. Additionally it delivers a safety
management system for elderly care institutions featuring safety management archives self-inspections and
preventive measures to enhance institutional safety management standards.In the field of market supervision Hikvision has built an online market supervision platform for catering
businesses elevators agricultural markets and other scenarios through the use of elevator health monitoring
cameras elevator safety gateways anti-oil cameras and other products facilitating refined supervision services.The Company provides a catering online supervision application that conducts intelligent analysis of kitchen staff
attire pest control measures and standardized operations delivering visible traceable and transparent production
process services for regulators and the public to help create safer more hygienic and standardized catering
environments. Its elevator online supervision application enables oversight of elevator faults maintenance quality
and annual inspections to support operational service upgrades while also implementing video inspections and e-
bike entry detection services to enhance elevator safety. In the area of smart parking Hikvision provides a
101Hikvision 2024 Annual Report
management platform for urban parking operations with a focus on roadside parking off-road closed parking lots
and other scenarios.The platform allows resource management operation management customer service
management financial management operation and maintenance management public services and other urban
parking business applications through the use of parking space detection cameras radar-video assisted parking posts
geomagnetic instruments entrance and exit control equipment and other devices providing professional parking
operations services and promoting more efficient and convenient parking experience.
6) Livable ecological environments
Hikvision leverages technologies including multi-dimensional perception large model-based intelligent
analysis and digital twins to establish comprehensive ecological monitoring management and service systems for
sectors such as natural resources forestry and grassland water resources water management ecological
environment and meteorology aiming to make ecosystems more livable.In smart water governance Hikvision leverages technologies such as digital twin water conservancy "Sky-
Space-Earth-Water-Project" integrated monitoring and perception multi-scale data platform construction multi-
modal large model intelligent analysis and simulation to deepen its expertise in business areas including
hydrological monitoring and management flood and drought disaster prevention water resources management and
allocation water conservancy project construction and operation management rural water infrastructure
management and urban-rural water supply and drainage management further advancing scenario-based
applications of digital twin technology in water governance.
102Hikvision 2024 Annual Report
Hikvision provides a digital twin hydrological management platform that dynamically monitors rainfall water
levels flow rates and other hydrological elements enabling flood prediction and forecasting threshold-exceeding
alerts pre-simulation modeling and digital contingency plan management to support scientific decision-making for
flood control and drought prevention. The smart river-lake management platform automatically detects "four
violations" (illegal sand mining shoreline damage waste dumping water pollution) through AI analysis enhancing
long-term river-lake protection and dynamic governance capabilities. The digital twin water conservancy project
management platform implements applications including safety monitoring and early warning systems for
reservoirs sluice-pump stations and dikes; electromechanical equipment status monitoring alerts; rainfall and water
condition monitoring alerts; an engineering safety status integrated dashboard; flood prevention across four
measures (prediction warning pre-simulation contingency planning) and other applications for real-time
operational safety oversight during flood seasons. The mountain torrent disaster early warning platform and flood
control command system deliver dynamic monitoring alert notifications GIS-based dispatching conference-based
coordination and video-enabled command functions through "full-system access network-wide connectivity and
single-screen visualization" ensuring immediate transmission of flood alerts and hazards to frontline units vertical
coordination across command levels and horizontal collaboration between departments The digital twin irrigation
district platform supports water measurement management safety inspections and water allocation functions
(prediction warning pre-simulation contingency) to support infrastructure expansion and modernization upgrades
in irrigation districts. The intelligent water plant safety platform enables smart inspections and secures secondary
water supply pump rooms ensuring production safety across water treatment facilities.As the construction of digital economy society and governments gains speed IoT perception large models
big data and other technologies are rapidly integrating into urban and industrial application scenarios gradually
fulfilling their value. Safety applications have expanded beyond traditional public security to encompass multi-
dimensional safety management and digital governance scenarios such as public spaces municipal facilities traffic
management emergency response and natural resource conservation with an increasingly mature intelligent
application system based on all-scenario round-the-clock omnidirectional perception capabilities.To better serve users Hikvision adheres to a user value-centric approach building a full-value-chain closed-
loop ecosystem. Collaborating with partners across the AIoT domain including research institutes product providers
algorithm developers independent software vendors system integrators and distributors Hikvision deeply analyzes
user value migration trends and precisely identifies core value demands. By opening foundational capabilities such
103Hikvision 2024 Annual Report
as perception base intelligence base and data base the Company drives multi-dimensional collaboration in
technology products solutions and services. This enables continuous iterative upgrades across products systems
and services ultimately delivering superior solutions for users in the public service sector.
3.4 Domestic SMB business: Advancing the digital transformation of SMB marketing-sales-service
operations to enhance industry-wide service capabilities
Hikvision is advancing the digital transformation of marketing sales and services for its SMB (Small and
Medium-sized Business) segment leveraging digital tools and platforms to better serve distributors and collaborate
with them in supporting installers of all types. This initiative helps distributors and installer clients improve service
quality reduce costs and increase efficiency fostering healthy industry development. Together with ecosystem
partners the Company delivers cost-effective lightweight and customized solutions tailored to the specific needs
of SMB users.
1) Capability building: Establishing a customer workbench to enhance full-chain collaboration efficiency
Leveraging Hikvision SMBG E-commerce and Hikvision SMBG HikLink Hikvision connects and empowers
distributors and installers to reach and serve SMB users through digital marketing. This initiative builds an AIoT
industry collaboration network driving industrial prosperity and accelerating digital transformation and upgrading.Hikvision SMBG E-commerce: This is a digital empowerment platform for marketing-sales-service in the
security industry that primarily serves distributors and installers enhancing efficiency across marketing pre-sales
delivery and operations and maintenance. Throughout the year the platform has continuously optimized features
enabling professionals to swiftly search and compare products and solutions. It supports AI-driven intelligent
marketing scenario-based product selection and configuration rapid batch debugging and project management
currently boasting millions of registered users. Simultaneously the platform assists distributors in refining
104Hikvision 2024 Annual Report
omnichannel digital operations while building a service matching ecosystem between active service providers and
qualified local distributors exploring upgrades to new channel models to elevate SMB user experiences.Hikvision SMBG HikLink: This is an AIoT cloud platform that serves SMB users. The platform mainly
provides general IoT capabilities such as video surveillance access control alarm systems attendance management
visitor management public address network management smart fire protection and information release. Through
collaborations with ecosystem partners it delivers scenario-specific solutions for SMBs in residential communities
factories schools construction sites industrial parks farms and other settings. Leveraging human/vehicle detection
algorithms as the foundation the platform offers intelligent scenario algorithms and smart notifications to drive
digital and intelligent transformation for SMBs democratizing intelligent technologies.
2) Business focus: Building a smart service network upgrading channel models and empowering partners
to deliver efficient professional services to end-users.Driving digital transformation for security professionals to enhance service capabilities
Hikvision SMBG E-commerce empowers security professionals across pre-sales in-process and post-sales
processes through modules like configuration tools product documentation solution galleries service hubs and
device setup/debugging. These features enhance content marketing and service support already serving millions of
professionals with key functions utilized over tens of millions of times. The Company will further expand
professional channels and build a nationwide service network to provide customers with diverse product options
and timely local professional services.Delivering one-stop solutions and services to empower SMB digital transformation
In response to SMBs' needs for lightweight and user-friendly products and systems Hikvision has created
Hikvision SMBG HikLink an AIoT cloud platform that provides compact yet efficient solutions and standardized
services to make digital transformation more accessible efficient and cost-effective for SMBs. The platform
integrates multi-terminal capabilities expands lightweight AI algorithms and collaborates with ecosystem partners
to deploy vertical small scenario-specific solutions nationwide with device deployments and user base maintaining
rapid growth throughout the year.Looking ahead Hikvision will uphold its collaborative win-win philosophy working closely with partners to
develop more market-driven competitive solutions. The Company will continue to connect and serve SMB users
comprehensively supporting their digital transformation from optimizing operational processes to innovating
105Hikvision 2024 Annual Report
business models ultimately building an interconnected IoT ecosystem to unlock new growth possibilities.
3.5 International business: Continuously enhancing global product and marketing-sales-service systems and
building a more open global collaboration ecosystem
Positioning its international operations as a "leading global provider of AIoT products and solutions"
Hikvision implements country-specific and product-specific marketing strategies. Adapting to local conditions
based on national development stages the Company advances localized marketing strategies to continuously
enhance overseas product competitiveness and localization alignment. Hikvision's business now spans more than
180 countries and regions delivering localized services to clients and end-users worldwide.
1） Continuously building a solid and comprehensive AIoT product-technology-solution framework for
global operations
While consolidating its core video-centric business Hikvision actively develops a second growth curve in
overseas markets. Centered on imaging technologies AI capabilities and multi-dimensional perception the
Company continuously enhances its AIoT product portfolio tailored to international demands. With robust
distribution channels and strong brand influence Hikvision steadily expands project markets while enriching
industry-specific solutions. The synergistic development of channel-driven and project-driven markets establishes
a sustainable long-term development path for its global business.
24/7 all-environment imaging technology: Leveraging next-gen AI-ISP technology Hikvision continues to
launch innovative products including ColorVu 3.0 and DarkerFighter 2.0 front-end devices delivering ultra-clear
color images with rich details under ultra-low illumination. The Company offers environmentally adaptive cameras
featuring polymer anti-corrosion coatings non-powered and network-independent operation extreme temperature
resistance self-cleaning anti-vibration stabilization and macro/telephoto capabilities ensuring stable high-
definition imaging in harsh conditions.Precision AI applications: Powered by its Guanlan Large Model Hikvision has debuted overseas-oriented AI
products including DeepinView cameras and DeepinMind back-end systems. These solutions significantly improve
target detection accuracy and reduce false alarms in perimeter security scenarios.Expanding multi-dimensional perception capabilities: Building on visible light perception Hikvision
continuously expands into multi-dimensional perception technologies including infrared millimeter-wave radar X-
ray and acoustic wave further enriching IoT perception capabilities. The Company has launched a comprehensive
106Hikvision 2024 Annual Report
portfolio of perception products such as radar systems thermal imaging devices alarm systems fiber-optic sensors
and X-ray solutions. By fusing visual perception technology with other perception technologies the Company
continues to enhance scenario-specific AIoT capabilities to develop innovative solutions such as radar-vision fusion
2.0 for ultra-long-range traffic incident detection and vibration-sensing fiber solutions for precise anomaly
localization in perimeters and pipelines.Catering to SMBs' needs for lightweight and user-friendly products and systems Hikvision delivers
comprehensive yet easy-to-deploy scenario-specific solutions. These integrate multi-terminal capabilities through
unified platform management of CCTV access control/attendance systems intercoms alarms and network
deployment enabling efficient and cost-effective digital transformation. In video-centric business the Company
maintains sustained high-quality growth by consolidating channel foundations and optimizing product portfolios.For non-video domains while effectively leveraging existing channels the Company actively expands into new
ones with market share continuing to expand. Products including networking equipment interactive displays and
LED solutions have achieved rapid growth.In overseas project markets Hikvision capitalizes on viable opportunities by enhancing solution quality and
delivery capabilities to ensure large-scale project implementation. The Company proactively extends industry-
specific AIoT solutions across transportation commercial retail education healthcare manufacturing and energy
sectors globally.In the transportation sector leveraging visible light perception and radar technologies the Company delivers
precise traffic flow analysis prediction and control solutions widely adopted across Southeast Asia Central Asia
and the Americas effectively alleviating congestion optimizing management and enhancing mobility efficiency.For retail it pioneers AI-powered loss prevention solutions deploying advanced algorithms to detect anomalies
like unattended item removal and unpaid exits achieving rapid response capabilities. Partnerships with leading
retailers in multiple countries have significantly improved operational efficiency establishing strong brand
recognition in local loss prevention markets. In education focusing on classroom innovation Hikvision refines
interactive displays and lesson-sharing platforms to drive digital transformation of education. The Company is
working with K-12 schools and higher education institutions in over 100 countries to explore new ecosystem
partnerships that elevate teaching quality and efficiency. In the sports venue sector the Company implements
AIoT technologies to integrate lighting HVAC and security systems for centralized intelligent management
significantly reducing operational costs. Simultaneously the deployment of smart navigation systems and
107Hikvision 2024 Annual Report
interactive displays greatly enhances spectator experiences while improving venue operational efficiency and user
satisfaction. In data centers the Company employs multi-dimensional monitoring sensors to achieve precise
monitoring and regulation of environmental parameters ensuring stable equipment operation and reduced energy
consumption. Meanwhile leveraging intelligent security systems it conducts real-time monitoring of personnel
access and equipment operational status effectively safeguarding data security. Across manufacturing and energy
industries customized comprehensive campus solutions spanning perimeter security to personnel/vehicle
management serve over 300 enterprises. Multi-dimensional perception technologies deeply integrate with
production workflows and equipment monitoring ensuring operational safety and efficiency gains.
2） Accelerating the development of an international digital marketing-sales-service system to further
enhance operational capabilities
Guided by the Company's overarching digital transformation strategy Hikvision's international business adopts
a customer-centric approach. Focusing on the entire value chain of core operations it continuously develops and
optimizes digital platforms to improve end-to-end operational efficiency from the Company to clients and end-users.The Company persists in decentralizing channel networks to empower partners and build a collaborative
ecosystem shifting its marketing-sales-service focus toward secondary clients and installers. Leveraging the HPP
(Hik-Partner-Pro) initiative it simplifies operational interfaces across installers' business workflows refines toolkits
for pre-sales in-process and post-sales stages and strengthens promotional operations to continuously enhance
digital marketing sales and service capabilities. A global content management platform has been established to
108Hikvision 2024 Annual Report
create an omnichannel content marketing matrix enabling efficient content creation management collaboration
distribution and analytics. Additionally the Company will advance standardized and systematic client management
frameworks improve data governance and increase marketing precision through higher-quality client data.Internationally the Company prioritizes operational service quality by enhancing digital tools to optimize
overseas warehouse and logistics management. It actively mobilizes resources to address volatile international
logistics conditions ensuring order fulfillment satisfaction.With 18 call centers and over 500 authorized service points deployed globally the Company strengthens
localized repair capabilities and accelerates technical response efficiency. Through its eLearning platform it
empowers clients with hybrid training programs combining online and offline modules. The Company will further
upgrade AI-powered customer service solutions and expand self-service capabilities using large models to
streamline support processes.
3） Building an international ecosystem collaboration framework through open product technologies and
cooperative resources
As a global leader in AIoT products and solutions Hikvision has been leveraging its localized global sales and
service networks and comprehensive product portfolio to deeply engage with overseas vertical industry clients
including system integrators independent software vendors and algorithm providers. While delivering proprietary
end-to-end solutions the Company enhances partners' comprehensive competitiveness by offering tiered access to
its technological capabilities and resources enabling precise adaptation to diverse application scenarios.In 2024 the Company continues to strengthen its capabilities in device platform and application openness.For device openness it has expanded from video surveillance devices to AIoT devices establishing a comprehensive
IoT device openness framework. Regarding platform openness addressing intelligent transformation trends in the
industry and fragmented algorithm demands Hikvision actively promotes its HEOP (Hardware Enabled Open
Platform) and AI Open Platform to global clients with over 100 registered HEOP partners by the end of 2024. In
application openness Hikvision supports overseas partners including alarm monitoring service providers fleet
management operators and smart building maintenance specialists through localized and cloud platform integration
capabilities.
109Hikvision 2024 Annual Report
In recent years Hikvision has enhanced its digital capabilities to serve broader client segments. Through the
Technology Partner Program (TPP) it offers overseas partners product protocol resources development support
and technical knowledge bases while facilitating business expansion via co-listing and joint solution promotion.The platform added over 5000 new users in 2024 with particularly rapid growth in access control and attendance
partners. By improving data connectivity from products to end-users and leveraging localized teams the Company
drives online-to-offline synergies for partners advancing the AIoT ecosystem.Amid accelerating global digital and intelligent transformation Hikvision will sustain resource investments to
deepen overseas sales networks and expand open capabilities with a focus on actionable vertical industries. The
Company empowers cross-sector clients with scenario-based AIoT solutions to optimize management effectiveness
and operational efficiency.
3.6 Innovative business services: Cultivating new growth drivers by exploring AIoT technologies products
and business formats
Hikvision's continuous efforts in technical reserves and expanding business reach provide a robust foundation
for innovative business development. While both its core operations and innovative ventures align with the strategic
focus on AIoT they differ in technical architectures product development and business strategies forming a
mutually reinforcing ecosystem that empowers the digital transformation of economies and societies.The innovative business portfolio currently comprising HikRobot EZVIZ Network HikMicro HikAuto
HikSemi HikFire HikRayin and HikImaging has consistently injected new momentum into the Company's long-
term sustainable development through its robust growth.Combining multi-dimensional perception AI navigation control and decision-making technologies
HikRobot focuses on industrial IoT smart logistics and intelligent manufacturing with solid algorithm expertise
110Hikvision 2024 Annual Report
robust software and hardware development capabilities and a complete marketing service system. HikRobot
continues to invest in machine vision and robotics to improve quality reduce costs and increase efficiency and
promote the digital and intelligent transformation of manufacturing and logistics.In 2024 the Company strengthened its machine vision capabilities by focusing on AI-powered industrial
quality inspection and 3D technologies launching products such as 2.5D imaging systems industry-specific large
models and point-line-surface laser sensor series to enhance the VM-centric visual ecosystem. In the mobile
robotics domain it introduced the 5th-generation AMR intelligent base with significantly improved autonomy
alongside the STU solution for e-commerce logistics to boost storage density and order-picking efficiency.Additionally the Company unveiled serialized articulated robots completing its strategic "hand-eye-foot"
coordination framework and establishing an embodied intelligent architecture with perception decision-making
mobility and execution capabilities comprehensively addressing smart manufacturing demands across industrial
scenarios while improving production flexibility.
111Hikvision 2024 Annual Report
Committed to becoming a trusted provider of smart home and IoT cloud platform services EZVIZ Network
stands out as one of the few AIoT companies in the industry with complete vertical service capabilities including
hardware design R&D manufacturing and IoT cloud platform services. Leveraging proprietary technologies in
smart hardware cloud platforms AI and intelligent robots it delivers AI-driven smart living solutions for
residential users and offers an open AIoT cloud platform for enterprise developers.In 2024 the EZVIZ ecosystem has been comprehensively upgraded to a "2+5+N" architecture centering on
smart video and visual technologies. Driven by the two core drivers—AI and the EZVIZ IoT Cloud—it integrates
five flagship self-developed AI-enabled product lines: smart home cameras intelligent access control smart control
systems service robots and wearables. Simultaneously through open ecosystem controllers it connects N-type
peripheral product lines across subsystems including environmental control and smart entertainment delivering
differentiated smart home products addressing security access control cleaning health monitoring and
companionship scenarios thereby enabling intelligent transformation for residential and adjacent spaces.HikMicro rooted in infrared thermal imaging technologies advances high-value MEMS optoelectronic
components and sensor technologies to build multi-dimensional perception capabilities covering temperature
pressure flow and level. Targeting AIoT industrial outdoor and embedded solutions markets it delivers core
components detectors modules thermal imagers and process instrumentation products and overall solutions to the
world. By focusing on temperatures HikMicro is developing multi-dimensional technology and product solutions
expanding the boundaries of human perception.
112Hikvision 2024 Annual Report
In 2024 Hikmicro launched its 8μm high-sensitivity infrared core components detectors and systems in the
thermal imaging field alongside shutter-free imaging algorithms and large-model AI-powered image algorithms
driving broader adoption of thermal imaging. In smart digital manufacturing the Company introduced a series of
smart instrumentation products—including pyrometers ultrasonic/electromagnetic/mass flow meters radar level
gauges and pressure transmitters—by integrating MEMS sensing and high-precision algorithms. Synergizing with
its thermal imaging portfolio these solutions enable end-to-end industrial intelligence spanning process control
efficiency optimization and safety assurance creating a holistic perception network for enterprises.HikAuto centered on vision and millimeter-wave radar technologies has become a leading intelligent driving
sensor supplier in the passenger vehicle OEM market in China advancing intelligent driving adoption while serving
commercial vehicle and aftermarket sectors to enhance road safety and freight efficiency. The Company extends
AI-enhanced radar perception into AIoT applications across industrial transportation and perimeter security sectors.
113Hikvision 2024 Annual Report
Following its 2024 integration of Sensortech HikAuto strengthened its R&D scale and capabilities
maintaining domestic market leadership in vehicle-mounted cameras and millimeter-wave radars. Leveraging its
accumulated full-stack in-house R&D capabilities the Company has achieved sustained breakthroughs in new
product development and customer-designated mass production securing projects for products including 4D
imaging millimeter-wave radars L2+ integrated driving-parking systems and cabin-parking solutions aligning
with the industry-wide acceleration of intelligent driving adoption. For commercial vehicles HikAuto delivers
scenario-based smart systems addressing safety and efficiency amid industry trends of electrification and smart
transformation. Globally it develops compliant ADAS products aligned with regional safety regulations and works
with partners to expand market reach. Concurrently the Company advances in-vehicle video applications for
consumer markets with lightweight smart features and miniaturized functionalities to safeguard journey safety for
vehicle owners.HikSemi specializes in providing professional storage products and solutions for enterprise clients and end-
users. It focuses on data centers in-vehicle applications industrial controls smart security consumer electronics
and PC assembly continuously enhancing competitiveness in vertical markets. HikSemi possesses full-stack
capabilities spanning product design firmware algorithm development packaging and testing to intelligent
manufacturing mass production and delivery. By continuously expanding its product portfolio advancing
technological upgrades and enhancing operational efficiency the Company aims to become China's leading
integrated storage solution provider empowering enterprises and organizations in their digital transformation.
114Hikvision 2024 Annual Report
HikFire operates across general and industrial fire protection sectors as an intelligent fire IoT and smart
management solution provider centered on fire detection multi-dimensional perception wireless IoT and AI video
analytics. It supports urban fire IoT deployment and enterprise digital transformation delivering one-stop fire safety
systems and management services for public facilities industrial parks SMBs and households while building a
comprehensive fire safety ecosystem with its four-dimensional smart system integrating perception prevention
management and emergency response.HikRayin is focusing on X-ray imaging technologies dedicated to becoming a leading technology R&D
manufacturing sales and leasing services provider of invisible light detection equipment. The Company maintains
in-house production capabilities for security inspection machines security doors industrial X-ray equipment and
a full range of supporting products. With long-standing expertise in X-ray technology AI equipment IoT etc.HikRayin continuously empowers industries through technological innovation and value creation in smart security
inspection and intelligent manufacturing sectors.HikImaging deeply rooted in the medical technology sector delivers OEM/ODM solutions for medical
endoscopy systems globally. Focused on multi-dimensional sensing intelligent analytics and audiovisual
115Hikvision 2024 Annual Report
transmission technologies in healthcare it partners with medical device manufacturers to deliver rigid/flexible
endoscope solutions and surgical video management systems advancing digital and intelligent transformation in
operating rooms and clinical settings. HikImaging focuses on advancing multi-dimensional perception intelligent
analytics and audio-visual transmission/computing/display/control technologies for medical scenarios. The
Company provides medical device manufacturers with comprehensive solutions including rigid/flexible endoscopes
and surgical audiovisual management systems collaborating with partners to drive digital and intelligent
transformation in operating rooms and clinical diagnostic environments.
116Hikvision 2024 Annual Report
II. Analysis of Core Competitiveness
In the context of the deepening societal digital transformation the breakthrough advancements in artificial
intelligence (AI) technology have imparted a strong impetus to the digitalization process. Hikvision continuously
drives the implementation of cutting-edge technologies in the AIoT domain striving to balance the fulfillment of
customer personalized needs the development of scenario-based solutions and the realization of its own scale
advantages. Hikvision maintains industry-leading positions in technology accumulation marketing strategies
manufacturing capabilities operational efficiency and talent reserves. The Company is dedicated to refining its
business processes and organizational structures to better address fragmented demand adheres to innovation in
technology and advances the digital transformation of its marketing and service operations. Hikvision promotes
profound operational upgrades internally consistently reinforcing its competitive edge in the industry. By
empowering diverse industries Hikvision contributes to improving quality reducing costs and enhancing
efficiency across society..
1. Maintain High-Level R&D Investment and Deepening Empowerment with AI Large Model Technology
Since its inception Hikvision has consistently been dedicated to technological innovation continually
integrating general technologies (hardware technology materials and processes embedded software system-level
software development big data technology and cybersecurity) with application-specific technologies to foster
product innovation and build a comprehensive product portfolio ranging from detectors modules devices to
systems. As an AIoT company sensing technology has been a strategic focus of long-term investment for Hikvision.The Company has expanded sensing technology beyond visible light into domains such as millimeter waves
infrared X-rays lasers and ultraviolet rays while integrating acoustic waves vibrations temperature and humidity
pressure and magnetic field sensing methods. This approach enables the Company to develop multi-dimensional
sensing fusion applications. Hikvision is advancing the innovative applications of AI across society and the
economy developing the Hikvision Guanlan Large AI Model to enhance the accurate understanding of dynamic
scenarios and the effective handling of complex tasks. This innovation empowers software and hardware solutions
with more precise sensing capabilities and more robust cognitive abilities driving continuous upgrade in security
business and scalable implementation of scene-specific digital transformation.Hikvision has maintained a high-level R&D investment with cumulative R&D expenses reaching RMB47.702
billion over the past five years. Beyond its Hangzhou headquarters which houses research institutes hardware
product R&D centers and software product R&D centers the Company has established numerous local R&D
117Hikvision 2024 Annual Report
centers both domestically and internationally forming a multi-tiered R&D system centered at the headquarters and
radiating to regional offices. Hikvision will continue to invest strongly in R&D reinforcing and consolidating its
AIoT technology foundation deepening research and application of large AI models and expanding the variety of
smart IoT devices. By seizing opportunities in digital transformation Hikvision aims to solidify its market
leadership in the AIoT industry.During this reporting period Hikvision leveraged its deep technical capabilities and industry insights to deeply
integrate cutting-edge large AI model technology. The Company has driven the iterative optimization of new digital
products enriched its digital product portfolio and accelerated the expansion of scenario-bases digital
transformation business.
2. Continuous Improvement of Domestic and International Marketing Sales and Service Networks and
Enhancement of Digital Capabilities
Hikvision is committed to establishing a comprehensive global marketing sales and service network to ensure
rapid responses to customer needs. Within China the Company has developed a marketing and service network
centered on cities. Through 32 provincial business centers and over 300 city branches and offices the network spans
the entire country forming a hierarchical marketing structure organized at the city level. Internationally Hikvision
has advanced its "localization" strategy decentralizing operational decision-making across four major regions: Pan-
Asia Pacific Middle East and Africa Pan-Europe and the Americas. The Company adheres to the strategy of "one
country one policy" and "one product one strategy" achieving business presence in over 180 major countries and
regions worldwide providing localized services to local customers and end-users.In terms of service capabilities Hikvision has a three-tiered vertical service system comprising the Hangzhou
Global Technical Support and Service Center regional service centers and authorized customer service stations.This structure enables global locally embedded and in-depth service delivery. Within China the Company has
established 32 provincial technical service departments over 300 regional service centers and has partnered with
over 3000 key partners and authorized service providers. Internationally Hikvision has set up 30 direct after-sales
service centers and over 400 authorized customer service stations. Additionally the Company offers a "replacement
instead of repair" service for certain products and has optimized local delivery chains by expanding the coverage of
overseas localized warehouses improving their inventory turnover and delivery efficiency thereby enabling faster
response to customer needs.Hikvision is also fully advancing its digital marketing and service strategy encompassing the entire marketing
118Hikvision 2024 Annual Report
and service process. This is achieved through initiatives such as the development of a digital marketing and service
platform application of AI technologies and digital operations. These efforts enhance promotional activities and
facilitate customer and user engagement. The Company continues to enhance its digital capabilities and share them
externally with partners empowering them to better serve users. This in turn improves the Company's overall
operational efficiency from end to end—from the Company to its customers and end-users—while strengthening
its core competitiveness in marketing and services..
3. Continuous Development of a Flexible Manufacturing System to Strengthen Supply Chain Resilience
The AIoT industry is characterized by diverse and personalized customer demands with Hikvision offering
over 30000 distinct hardware products. Production must thus cater to the requirements of small-volume multi-
batch and large-scale customized orders. To tackle these challenges Hikvision has consistently focused on building
a flexible and efficient manufacturing system. This effort involves enhancing lean production automation
capabilities and leveraging AI technology to improve production scheduling efficiency and the consistency of
output quality. The company operates manufacturing bases in locations such as Hangzhou Tonglu Chongqing and
Wuhan while steadily advancing plans to establish and expand new bases. Additionally through its overseas
facilities in India Brazil and the UK Hikvision implements localized manufacturing to ensure continuous global
product supply.Hikvision has always prioritized the establishment of long-term stable partnerships with suppliers. The
Company collaborates closely with suppliers to iteratively upgrade raw materials and components transferring its
accumulated expertise in digitalizing the supply chain to industry partners. This collaboration fosters a healthy
supplier ecosystem thereby strengthening the overall industry supply chain stability.The Company promotes the deep application of scenario-based digital products within its production campuses
utilizing its own operations as a model for continuous iteration. By driving innovative applications of automation
digitization and intelligent technologies Hikvision improves supply quality enhances operational efficiency and
reduces production costs.
4. Continuous Advancement of Management System Reform and Comprehensive Promotion of Internal
Digital Transformation
In the ever-evolving market competition a company's ability to efficiently allocate internal resources reduce
internal communication costs and achieve high-efficiency collaboration is a crucial aspect of its competitiveness.As the Company's business continues to grow and evolve its resource organization methods and management
119Hikvision 2024 Annual Report
approaches are also being continuously optimized.In terms of business direction and target setting the Company employs the BLM strategic planning
methodology to refresh its strategic planning and annual business plan on a rolling basis each year. This ensures
that all business teams and departments are well-aligned targets are clearly defined and responsibilities are assigned
effectively. In terms of internal management the Company is strengthening its governance and organizational
capabilities in change management focusing on the continuous improvement of business profitability and
management capabilities and steadily advancing its internal digital transformation efforts. In terms of the direction
of the Company's transformation efforts are being made to align and integrate resources across the Company with
a focus on five key areas: enterprise-level marketing digitization enterprise-level R&D and quality digitization
enterprise-level operational analysis and refinement enterprise-level data governance capability-building and
enterprise-level AI capability-building. Additionally the Company is developing digital capabilities across various
domains to drive high-quality transformation execution through high-quality planning. Relying on IT system
development the Company is continuously optimizing and improving business processes and enhancing system
efficiency to build refined operational capabilities. In terms of risk management the Company has established a
robust risk management system with its global compliance governance and risk management capabilities steadily
improving.
5. Continuous Development of Talent Ecosystem and Igniting Organizational Innovation Vitality
The Company firmly believes that talent is a key driver of sustainable enterprise development and a core
element of its competitiveness. Guided by the people-oriented philosophy of "empowering individuals and growing
together" the Company actively attracts and cultivates talent from around the globe. By continuously refining its
talent identification and performance evaluation mechanisms the Company adopts scientific methods to identify
evaluate and utilize talent fully motivating employees' enthusiasm and creativity while enhancing organizational
capabilities. With its business strategy as the driving force the Company is committed to building agile and efficient
organizations. It ensures a steady supply of talent for critical positions achieving effective alignment between
people and roles to support profitable business growth.The Company integrates compensation and benefits with equity follow-investment for innovative business
creating a comprehensive employee return system. A mature mechanism for employee participation in and sharing
of the Company's growth has been established. Employees who participate in equity follow-investments contribute
to the Company's performance and in turn receive long-term personal rewards. This creates a mutually reinforcing
relationship between the Company's long-term development and the continuous growth of its talent.
120Hikvision 2024 Annual Report
III. Core Business Analysis
1. Overview
The continuous evolution of societal demands has consistently created opportunities for industrial
transformation. Over the past two decades the development of social safety systems has driven the rapid growth of
the security industry. Currently enhancing industrial efficiency is a key factor for China as a manufacturing
powerhouse to further strengthen its competitiveness. Since its founding over twenty years ago Hikvision has
seized the opportunities presented by the rapid development of the security industry emerging as a global leader in
the field. Throughout this journey the Company has built a robust ecosystem of AIoT technologies and products.By leveraging scenario-based digital solutions Hikvision has played a significant role in driving industrial upgrades
and improving various aspects of social governance and people's daily lives enhancing quality reducing costs and
boosting efficiency.In 2024 amid a complex domestic and international environment Hikvision remained steadfast in its approach
responding to uncertainties with a proactive yet prudent mindset. During the reporting period the Company
achieved an operating income of RMB92.50 billion reflecting a year-on-year increase of 3.53%. The net profit
attributable to shareholders of the listed Company amounted to RMB11.98 billion representing a year-on-year
decline of 15.10%. The proportion of innovative businesses in the overall business mix continued to rise with key
divisions such as HikRobot Ezviz and HikMicro achieving leading positions in their respective fields providing
strong support for the Company's business growth. Overlooking the lucrative growth of its overseas main business
Hikvision adopted region-specific strategies in its four major global regions leading to a steady increase in market
share for its channel business as well as the accumulation of project capabilities and experience. In the face of
significant domestic business environment pressures the development of scenario-based digital business helped
open up new avenues for the domestic main business establishing a second growth curve for the Company.Guided by its strategic positioning in AIoT Hikvision made positive progress across various domains
including its technological and product ecosystems domestic and international marketing systems production and
manufacturing capabilities and innovative business units. The Company is steadily advancing in the AIoT sector.
1. Maintain R&D Investment and Strengthen AIoT Technology and Product Ecosystem. Over the past
decade Hikvision has accumulated significant advancements in multi-dimensional sensing and perception fusion
technologies. The Company's research and development in artificial intelligence has also reached a certain scale.
121Hikvision 2024 Annual Report
The iterative evolution of various technology sets has brought a positive cluster effect to Hikvision's product
development. Furthermore the advancement of large model technology has expanded the boundaries of perceptual
intelligence and cognitive intelligence delivering substantial improvements to both the hardware and software
products and solutions of Hikvision. Building on these achievements the Company has rapidly advanced its
innovation in digital products and large model applications. In 2024 Hikvision continued to launch a wide range of
new products tailored to new scenarios and demands featuring significantly enhanced functionalities. These efforts
have comprehensively elevated the intelligence level of its products and continuously expanded the boundaries of
its AIoT business.
2. Continuous Evolution of Marketing Organizations to Adapt Resource Allocation to Business
Development Needs. Hikvision has continuously refined its regional market penetration strategy optimizing its
business layout. Domestically the Company operates 32 provincial business centers and over 300 city-level
subsidiaries. Internationally it adopts a localized approach with the strategy of "one country one policy" and "one
product one strategy" embedding business operations at the grassroots level to ensure marketing activities closely
align with user needs and deeply understand their requirements. Building on this regional strategy Hikvision
integrates industry and regional resources for vertical industries such as the financial sector and other sectors
requiring similar vertical management. This allows the Company to adapt its marketing organization structures to
ongoing business changes. Additionally based on business differences Hikvision has adopted independent
operations and performance evaluations for certain product lines industry lines and innovative businesses. This
approach enables the Company to strengthen smaller product categories and industries ensuring organizational
development adapts to business evolution. Furthermore Hikvision is comprehensively advancing the digital
transformation of its marketing systems to enhance the end-to-end operational efficiency of its customer-facing
services.
3. Continuously Polishing Supply Chain Flexibility to Drive Cost Reduction and Efficiency
Improvement. The AIoT industry is characterized by multi-category small-batch and multi-batch production
requiring a manufacturing system that ensures product quality while also allowing flexible switching of production
capacity. Hikvision has long been dedicated to building a flexible and efficient manufacturing system widely
adopting the Company's self-developed automation and intelligent production solutions to continuously enhance
manufacturing capabilities. In 2024 Hikvision vigorously promoted the practical verification of digital products
within its own factories. By innovatively applying automated digitalized and intelligent technologies and products
122Hikvision 2024 Annual Report
the Company improved supply quality strengthened operational efficiency and reduced production costs.
4. Diversified Innovation Business Layout Supporting the Implementation of the Intelligent IoT
Strategy. In 2024 the total revenue from innovative businesses reached RMB22.48 billion accounting for 24.31%
of the Company's overall income. HikRobot focuses on industrial IoT smart logistics and intelligent manufacturing
continuously deepening its investment in machine vision and mobile robots and newly adding a full series of joint
robots gradually completing the strategic layout of "hand eye and foot" collaboration establishing itself as a
leading company in the domestic industry. Ezviz possesses comprehensive capabilities from hardware design R&D
and manufacturing to IoT cloud platforms becoming one of the few AIoT companies in the industry with complete
vertical integrated service capabilities. HikMicro specializes in high-value-added MEMS optoelectronic
components and sensor technologies building multi-dimensional sensing capabilities in temperature pressure flow
and material level becoming a leading domestic enterprise in thermal imaging. Other innovative businesses are in
a high-growth phase with market competitiveness continuously improving. The innovative businesses and the main
business collectively revolve around the AIoT business direction with a unified and divided business layout jointly
supporting the Company's sustained and stable growth driving the Company to steadily advance towards its goals.
123Hikvision 2024 Annual Report
2. Revenue / cost of sales and services
(1) Revenue structure
Unit: RMB
2024 2023 (Restated)
YoY Change
Proportion to Proportion to
Amount Amount (%)
revenue revenue
Revenue 92495525118.30 100.00% 89341177610.40 100.00% 3.53%
Classified by industry
AIoT products and services 92495525118.30 100.00% 89341177610.40 100.00% 3.53%
Classified by product
Products and services for
67963258099.8373.48%68781078704.9276.99%-1.19%
main business (Note 1)
Constructions for main
2048116006.902.21%2007188913.812.25%2.04%
business
Subtotal 70011374106.73 75.69% 70788267618.73 79.23% -1.10%
Robotic business 5928825303.14 6.41% 4940495688.57 5.53% 20.00%
Smart home business 5190222359.58 5.61% 4686023001.37 5.25% 10.76%
Thermal imaging business 4191132575.45 4.53% 3284778727.13 3.68% 27.59%
Auto electronics business 3919493044.46 4.24% 2706680020.16 3.03% 44.81%
Storage business 2314389221.29 2.50% 1931387706.41 2.16% 19.83%
Other innovative businesses
940088507.651.02%1003544848.031.12%-6.32%
(Note 2)
Subtotal (Note 3) 22484151011.57 24.31% 18552909991.67 20.77% 21.19%
Classified by region
Domestic 60601005007.24 65.52% 60373572006.00 67.58% 0.38%
Overseas 31894520111.06 34.48% 28967605604.40 32.42% 10.10%
Note 1: Main business refers to the business parts other than the innovative businesses.Note 2: Other innovative businesses include the products and services of the innovative business subsidiaries such as HikFire Rayin
and HikImaging. Same below.Note 3: The data listed in the subtotals may differ slightly from the aggregated results of the relevant individual data due to rounding.Revenue structure (note 4)
Unit: RMB 100mn
124Hikvision 2024 Annual Report
2024 2023 (Restated) YoY Change (%) 2022 (Restated)
PBG 134.67 153.54 -12.29% 161.35
EBG 176.51 178.45 -1.09% 165.05
Domestic main SMBG 119.71 126.79 -5.58% 124.97
business
Other products and
services for main 9.33 9.33 0.00% 9.28
business
Overseas main Products and services
259.89239.778.39%220.32
business for main business
Innovative businesses (note5) 224.84 185.53 21.19% 150.70
Total 924.96 893.41 3.53% 831.67
Note 4: The operating income from domestic main business (including three major business groups in domestic and other products
and services for main business) and overseas main business only include Hikvision's main business's products and services
excluding revenue from innovative businesses.Note 5: Innovative businesses' revenue includes its domestic and overseas revenue
Note 6: The data listed in the subtotals may differ slightly from the aggregated results of the relevant individual data due to rounding.
(2) Industries products or regions accounting for more than 10% of the Company's revenue or operating
profit
√ Applicable □ Inapplicable
Unit: RMB
YoY Change YoY Change
Cost of sales and YoY Change
Revenue Gross margin (%) of operating (%) of gross
services (%) of revenue
cost margin
Classified by industry
AIoT products and
92495525118.3051953857912.2143.83%3.53%4.47%-0.50%
services
Classified by product
Products and
services for main 67963258099.83 36860856267.41 45.76% -1.19% -0.31% -0.48%
business
Constructions for
2048116006.901624213884.6620.70%2.04%6.17%-3.08%
main business
Innovative
22484151011.5713468787760.1440.10%21.19%19.95%0.62%
businesses
Subtotal 92495525118.30 51953857912.21 43.83% 3.53% 4.47% -0.50%
Classified by region
Domestic 60601005007.24 34769215813.85 42.63% 0.38% 2.34% -1.10%
125Hikvision 2024 Annual Report
YoY Change YoY Change
Cost of sales and YoY Change
Revenue Gross margin (%) of operating (%) of gross
services (%) of revenue
cost margin
Overseas 31894520111.06 17184642098.36 46.12% 10.10% 9.05% 0.52%
When the statistical caliber of the Company's main business data is adjusted during the reporting period the
Company's main business data would be adjusted according to the end of the reporting period in the most recent
period.□ Applicable √ Inapplicable
(3) If revenue from physical products sales greater than revenue from providing services
√ Yes □ No
Industry Item Unit 2024 2023 YoY Change (%)
Sales volume Per unit 245393303 227487010 7.87%
AIoT products and
services
Output volume Per unit 256348512 240073553 6.78%
Explanation on why the related data varied by more than 30% on a YoY basis
□Applicable √Inapplicable
(4) Fulfillment of signed significant sales contracts and procurement contracts by the reporting period
□ Applicable √Inapplicable
(5) Cost of sales and services structure
Classified by industry
Unit: RMB
2024 2023 (Restated)
Proportion to Proportion to YoY Change
Industry Item
Amount cost of sales Amount cost of sales (%)
and services and services
AIoT products Cost of sales
51953857912.21100.00%49732768547.57100.00%4.47%
and services and services
Classified by product
Unit: RMB
2024 2023 (Restated)
Proportion to Proportion to YoY Change
Product Item
Amount cost of sales Amount cost of sales (%)
and services and services
Products and Cost of sales
services for main and services 36860856267.41 70.95% 36974434806.35 74.35% -0.31%
business
Constructions for Cost of sales
and services 1624213884.66 3.13% 1529858191.39 3.08% 6.17% main business
Innovative Cost of sales
businesses and services
13468787760.1425.92%11228475549.8322.58%19.95%
126Hikvision 2024 Annual Report
2024 2023 (Restated)
Proportion to Proportion to YoY Change
Product Item
Amount cost of sales Amount cost of sales (%)
and services and services
Cost of sales
Subtotal and services 51953857912.21 100.00% 49732768547.57 100.00% 4.47%
Note: The data listed in the subtotals may differ slightly from the aggregated results of the relevant individual data due to rounding.
(6) Any change in consolidation scope during the reporting period
√Yes □ No
During the reporting period the Group established 4 domestic subsidiaries 3 overseas subsidiaries and gained
actual control of 1 subsidiary through entrusted management agreements. All of this result in changes in the scope
of its consolidation scope. For details please refer to changes in the consolidation scope in Note (VI) to the financial
statements.
(7) Significant change or adjustment of the Company's business products or services during the reporting
period:
□ Applicable √ Inapplicable
(8) Major customers and suppliers:
Sales to major customers of the Company
Sales to top five customers (RMB) 2343413902.30
Total sales to top five customers as a percentage of the total sales for the year (%) 2.53%
Total sales to the related parties in top five customers as a percentage of the total
0.00%
sales for the year (%)
Information on top five customers
No. Name of customer Sales amount (RMB) Percentage of total sales for the year
1 First 575507193.15 0.62%
2 Second 513745986.05 0.56%
3 Third 479382722.27 0.52%
4 Fourth 411281576.78 0.44%
5 Fifth 363496424.05 0.39%
Total -- 2343413902.30 2.53%
Other information of major customers
□Applicable √Inapplicable
Major suppliers of the Company
127Hikvision 2024 Annual Report
Total purchases from top five suppliers (RMB) 6247846592.09
Total purchases from top five suppliers as a percentage of the total purchases for the year (%) 12.79%
Total purchases from the related parties in the top five suppliers as a percentage of the total
6.32%
purchases for the year (%)
Information on top five suppliers of the Company
No. Supplier name Purchase amount (RMB) Percentage of total purchase for the year
1 First 1897826757.19 3.89%
2 Second 1189548670.24 2.43%
3 Third 1088587794.52 2.23%
4 Fourth 1086560559.94 2.22%
5 Fifth 985322810.20 2.02%
Total -- 6247846592.09 12.79%
Other information of major suppliers
√ Applicable □ Inapplicable
Some of the top five suppliers are related parties of the Company and the Company strictly operates within the pre-
approved estimated limits for routine related-party transactions. In addition directors supervisors senior
management key technical personnel shareholders with more than 5% equity actual controllers and other related
parties of the Company do not have any direct or indirect interests in major suppliers. For further details please
refer to "Section X (11) - Related Party Relationships and Transactions."
3. Expenses
Unit: RMB
YoY Change
2024 2023 (Restated) Note of significant change
(%)
Selling expenses 12051218102.62 10746788076.01 12.14% No significant change
Administrative expenses 3095939643.92 2770781203.45 11.74% No significant change
R&D expenses 11864013392.27 11392948404.47 4.13% No significant change
Affected by foreign exchange rate fluctuations
Financial expenses -114817493.16 -749800283.79 84.69%
foreign exchange loss increased
4. R&D Investment
√Applicable □Inapplicable
R&D personnel of the Company
2024 2023 Change Percentage
Number of R&D staff (ppl) 28272 28479 -0.73%
128Hikvision 2024 Annual Report
2024 2023 Change Percentage
R&D staff as percentage of Total
47.37%48.65%-1.28%
headcount
Education structure of R&D staff —— —— ——
Bachelor degree 16954 17502 -3.13%
Master's degree 8903 8602 3.50%
Master's degree or above 179 161 11.18%
others 2236 2214 0.99%
Age composition of R&D staff —— —— ——
Under 30 years old 13484 14967 -9.91%
30-40 years old 13747 12655 8.63%
Over 40 years old 1041 857 21.47%
R&D investment of the Company
2024 2023 Change Percentage
Amount of R&D expenses (RMB) 11864013392.27 11392948404.47 4.13%
R&D expenses as a percentage of
12.83%12.75%0.08%
revenue
Capitalized R&D expenses (RMB) 0.00 0.00 0.00%
Capitalized R&D expenses as a
0.00%0.00%0.00%
percentage of R&D expenses
Reason and effect of significant change in the composition of the Company's R&D personnel
□ Applicable √ Inapplicable
Reason of significant change of total R&D expenses as a percentage of revenue as compared to last year
□ Applicable √ Inapplicable
Reason and explanation of its reasonableness of significant change of the capitalized R&D expenses
□ Applicable √ Inapplicable
5. Cash Flow
Unit: RMB
Item 2024 2023 (Restated) YoY Change (%)
Subtotal of cash inflows from
104471470619.9299392083915.655.11%
operating activities
Subtotal of cash outflows from
91207378597.1982769874194.6010.19%
operating activities
Net cash flows from operating
13264092022.7316622209721.05-20.20%
activities
129Hikvision 2024 Annual Report
Item 2024 2023 (Restated) YoY Change (%)
Subtotal of cash inflows from
3173062938.174907512153.30-35.34%
investing activities
Subtotal of cash outflows from
7720603935.278894812143.31-13.20%
investing activities
Net cash flows from investing
-4547540997.10-3987299990.01-14.05%
activities
Subtotal of cash inflows from
7365413894.2111109937859.61-33.70%
financing activities
Subtotal of cash outflows from
29444402679.8414255369357.73106.55%
financing activities
Net cash flows from financing
-22078988785.63-3145431498.12-601.94%
activities
Net increase in cash and cash
-13374924975.499602843248.26-239.28%
equivalents
Explanation of why the related data varied significantly on a YoY basis
√ Applicable □ Inapplicable
The main reason for the change in net cash flow from financing activities was the increase in expenditures for
repaying loans and repurchasing shares this year.Explanation of reasons leading to the material difference between cash flow from operating activities during the
reporting period and net profit for the year
□ Applicable √ Inapplicable
IV. Non-core Business Analysis
□Applicable √Inapplicable
V. Analysis of Assets and Liabilities
1. Material changes of asset items
Unit: RMB
December 31 2024 December 31 2023 (Restated)
YoY
Percentage Percentage Change Note of significant change
Amount of total Amount of total (%)
assets assets
The reduction in cash and
cash equivalents is due to
Cash and bank balances 36271488337.03 27.48% 49638158662.54 35.75% -8.27%
share repurchases and
loan repayments
Accounts receivable 37910128735.42 28.72% 35816573511.44 25.79% 2.93% No significant change
Contract assets 985822785.69 0.75% 1173312415.20 0.84% -0.09% No significant change
Inventories 19110711958.11 14.48% 19211444296.82 13.84% 0.64% No significant change
130Hikvision 2024 Annual Report
December 31 2024 December 31 2023 (Restated)
YoY
Percentage Percentage Change Note of significant change
Amount of total Amount of total (%)
assets assets
The increase in
investment income from
Long-term equity
1527223390.79 1.16% 1151104887.85 0.83% 0.33% associates and joint
investment
ventures as well as other
changes in equity
Projects such as Xi'an
Science and Technology
Fixed assets 15063752296.49 11.41% 11508312342.17 8.29% 3.12%
Park Project were
transferred to fixed assets
Construction in process 4699473381.21 3.56% 4307651074.46 3.10% 0.46% No significant change
Right-of-use assets 530138023.79 0.40% 521061396.66 0.38% 0.02% No significant change
Lease liabilities 375432749.68 0.28% 344005866.13 0.25% 0.03% No significant change
Contract liabilities 3353943054.24 2.54% 2977990775.40 2.14% 0.40% No significant change
The need for working
Short-term borrowings 1031895812.62 0.78% 2118952026.06 1.53% -0.75%
capital has decreased and
Non-current liabilities part of the long-term and
767030688.910.58%5814660214.964.19%-3.61%
due within one year short-term loans has been
Long-term borrowings 5119185000.00 3.88% 8940122961.01 6.44% -2.56% repaid.High proportion of overseas assets
□ Applicable √ Inapplicable
131Hikvision 2024 Annual Report
2. Assets and liabilities measured at fair value
√ Applicable □ Inapplicable
Unit: RMB
Provision
Profit or loss from for decline
Cumulative fair Purchased
change in fair in value Sales during
Item Opening balance value changes amount during Other changes Closing balance
value during the during the the period
included in equity the period
period current
period
Financial assets
1. Derivative financial assets 37380.00 26738543.93 26775923.93
2. Other non-current financial assets 472184937.66 -15184854.90 15000000.00 472000082.76
3. Receivables for financing 1594219832.62 697428411.43 2291648244.05
Subtotal of financial assets 2066442150.28 11553689.03 15000000.00 697428411.43 2790424250.74
Derivative financial liabilities 38079755.04 36205413.40 1874341.64
Whether there were any material changes on the measurement attributes of major assets of the Company during the reporting period:
□ Yes √ No
132Hikvision 2024 Annual Report
3. Assets right restrictions as of the end of the reporting period
Unit: RMB
Item Closing book value (RMB) Reasons for being restricted
Cash and bank balances 218445956.74 Various cash deposits and other restricted funds
Endorsed to suppliers discounted to banks and pledged for
Notes receivable 1274931981.36
the issuance of the banker's acceptance
Accounts receivable 352621694.25 Pledge for long-term debts
Contract assets 128422846.09 Pledge for long-term debts
Fixed assets 54026704.89 Fixed assets leased out under operating leases
Intangible assets 12166524.79 Pledge for long-term debts
Other non-current assets 1276495354.49 Pledge for long-term debts
Total 3317111062.61
VI. Investments
1. Overview
√Applicable □ Inapplicable
Investment in 2024 (RMB) Investment in 2023 (RMB) YoY (%)
5704894189.404935643770.1515.59%
2. Significant equity investment during the current reporting period
□Applicable √Inapplicable
133Hikvision 2024 Annual Report
3. Significant non-equity investment during the current reporting period
√ Applicable □ Inapplicable
Unit: RMB
Reasons
for not
Cumulative
Fixed reaching
Investment during amount of
Invest assets Project Source of Project planned Disclosure Date
Project name the current reporting investment by the Disclosure Index (if applicable)
method investme industry funds schedule progress (if applicable)
period end of the current
nt or not and
reporting period
expected
benefits
AIoT Announcement on Investment and
Wuhan Science and products Self- October 23 Construction Progress of Wuhan
Purchase Yes 1657233983.77 1657649090.38 87.31% None
Technology Park Project and financing 2021 Science and Technology Park
services Project (No. 2021-065)
AIoT Announcement on Investment and
Xi'an Science and products Self- September 23 Construction of Xi'an Science and
Self-built Yes 271269582.66 1460580233.39 100.00% None
Technology Park Project and financing 2017 Technology Park in Xi'an (No.services 2017-031)
Announcement on the Investment
EZVIZ Intelligent AIoT Self- and Construction of EZVIZ
Manufacturing Chongqing products financing/ August 11 Intelligent Manufacturing
Self-built Yes 516118684.43 1144333377.23 97.80% None
Base Project(Infrastructure and Raise 2021 (Chongqing) Base Project by
Part) services funds Holding Subsidiaries (No. 2021-
052)
134Hikvision 2024 Annual Report
Reasons
for not
Cumulative
Fixed reaching
Investment during amount of
Invest assets Project Source of Project planned Disclosure Date
Project name the current reporting investment by the Disclosure Index (if applicable)
method investme industry funds schedule progress (if applicable)
period end of the current
nt or not and
reporting period
expected
benefits
Announcement on the Investment
AIoT
HikRobot Intelligent and Construction of HikRobot
products Self- January 19
Manufacturing (Tonglu) Self-built Yes 478500853.12 498800343.68 46.57% None Intelligent Manufacturing (Tonglu)
and financing 2022
Base Project Base Project by a Holding
services
Subsidiary (No. 2022-009)
AIoT Announcement on Investment and
Shijiazhuang Science and
products Self- March 22 Construction of Shijiazhuang
Technology Park Project Self-built Yes 80666336.75 356913939.48 100.00% None
and financing 2018 Science and Technology Park in
(Phase II)
services Shijiazhuang (No. 2018-016)
Announcement on the Investment
AIoT
HikRobot Product and Construction of HikRobot
products Self- January 19
Industrialization Base Self-built Yes 138335361.50 199752968.31 19.71% None Product Industrialization Base
and financing 2022
Construction Project Construction Project by Holding
services
Subsidiary (No. 2022-007)
Announcement on the Investment
AIoT and Construction of the
Industrialization Base of
products Self- January 19 Industrialization Base of Infrared
Infrared Thermal Imaging Self-built Yes 95736171.04 166668535.02 18.47% None
and financing 2022 Thermal Imaging Products by the
Products
services Holding Subsidiary (No. 2022-
008)
135Hikvision 2024 Annual Report
Reasons
for not
Cumulative
Fixed reaching
Investment during amount of
Invest assets Project Source of Project planned Disclosure Date
Project name the current reporting investment by the Disclosure Index (if applicable)
method investme industry funds schedule progress (if applicable)
period end of the current
nt or not and
reporting period
expected
benefits
AIoT Announcement on Investment and
Wuhan Intelligence Industry products Self- September 23 Construction of Wuhan
Self-built Yes 8183414.95 13854531.11 0.99% None
Park Project (Phase II) and financing 2017 Intelligence Industry Park in
services Wuhan (No. 2017-036)
Total -- -- -- 3246044388.22 5498553018.60 -- -- -- -- --
Note: In accordance with the Company's Authorization Management System new investments on fixed assets of Xi'an Science and Technology Park Project
Shijiazhuang Science and Technology Park Project and Wuhan Intelligence Industry Park Project were approved by the Strategy Committee of the Board of Directors.
4. Financial asset investment
(1) Securities Investments
□ Applicable √ Inapplicable
There no such case in the reporting period.
(2) Derivatives Investments
√ Applicable □ Inapplicable
136Hikvision 2024 Annual Report
1) Derivative investments for hedging purposes during the reporting period
√ Applicable □ Inapplicable
Unit: 0000 RMB
Gain or loss on Changes in Proportion of closing
Purchased amount Sold amount
Type of derivatives Initial investment Opening changes in fair value cumulative fair Closing investment amount to the
during the during the
investment amount amount during the reporting value included in amount Company's net assets at the
reporting period reporting period
period equity end of the reporting period
Forward foreign exchange
176133.92176133.926294.40-382710.45-143549.681.78%
contract
Total 176133.92 176133.92 6294.40 - 382710.45 - 143549.68 1.78%
Accounting policies and specific accounting
In accordance with the provisions of Accounting Standards for Business Enterprises (hereinafter referred to as "ASBE") No. 22 - Recognition
principles for hedging business during the reporting
and Measurement of Financial Instruments ASBE No. 37 - Presentation of Financial Instruments and other relevant regulations and guides
period and explanations on whether there have been
the Company accounted for and disclosed its forward foreign exchange contracts. There was no significant changes from the previous
significant changes from the previous reporting
reporting period.period
Explanations on actual gain or loss during the
There was a total of RMB6.00 million actual losses during the reporting period.reporting period
The Company's purpose was to avoid and prevent risks of exchange rate or interest rate fluctuations and prohibited any speculative
Explanations on the effect of hedging business actions further improving the Company's ability to cope with risks of foreign exchange fluctuations better avoiding and preventing risks
of foreign exchange rate and interest rate fluctuations and enhancing its financial stability.Capital source of derivatives investment The Company's own fund.Risk analysis and control measures (including but
not limited to market risk liquidity risk credit risk For details of the risk analysis and control measures please refer to the Announcement on Carrying out Foreign Exchange Hedging
operational risk legal risk etc.) of holding Business in 2024 (Announcement No. 2024-015) disclosed by the Company on April 20 2024.derivatives during the reporting period
Change of market price or fair value of invested The Company recognized and measured the fair value of derivatives in accordance with the Accounting Standards for Business
137Hikvision 2024 Annual Report
Gain or loss on Changes in Proportion of closing
Purchased amount Sold amount
Type of derivatives Initial investment Opening changes in fair value cumulative fair Closing investment amount to the
during the during the
investment amount amount during the reporting value included in amount Company's net assets at the
reporting period reporting period
period equity end of the reporting period
derivatives during the reporting period; specific Enterprises Article 22 - Recognition and Measurement of Financial Instruments. During the reporting period a total of RMB62.94 million
methods related assumptions and parameter setting of gains from changes in fair value of forward foreign exchange contract were recognized and the fair value is determined according to
of the derivatives' fair value analysis should be the exchange rate and interest rate provided by banks and other pricing service institutions measured and recognized on a monthly basis.disclosed
Prosecution (if applicable) None
Announcement date for approvals of derivatives
April 20 2024
investment from the Board of Directors (if any)
Announcement date for approvals of derivatives
investment from the general meeting of shareholders Inapplicable
(if any)
2) Derivative investments for speculative purposes during the reporting period
□Applicable √ Inapplicable
There is no derivative investments for speculative purposes during the reporting period.
5. Use of raised funds
□ Applicable √ Inapplicable
During the reporting period there was no use of raised fund.The details of the use of funds raised by EZVIZ Network the Company's holding subsidiary was disclosed on April 12 2025 in Annual Report of Hangzhou EZVIZ
Network Co. Ltd Section VI (14) - Progress of the Use of Funds Raised on the website of Shanghai Stock Exchange ( www.sse.com.cn).
138Hikvision 2024 Annual Report
VII. Disposal of Significant Assets and Equity
1. Disposal of significant assets
□ Applicable √ Inapplicable
There is no disposal of significant asset for the Company during the current reporting period.
2. Sale of significant equity
□ Applicable √ Inapplicable
139Hikvision 2024 Annual Report
VIII. Analysis of Major Subsidiaries and Holding Companies
Information about obtaining and disposal of subsidiaries during the reporting period
√ Applicable □ Inapplicable
Equity acquisition and disposal
Company name Impact on overall production results
method during the reporting period
Management Entrustment
Hangzhou Furui Technology Ltd. Business development
Agreement
Hangzhou Hikimaging Electronics Ltd. Cash contribution Business development
Hangzhou Rayin Detection Tecnology Ltd. Cash contribution Business development
EZVIZ Vietnam LLC Co. Ltd Cash contribution Expand overseas sales channels
Hangzhou Micro Sensing Electronics Ltd. Cash contribution Business development
Guoneng Haikang Yaoshi Technology (Hangzhou)
Cash contribution Business development
Ltd.EZVIZ Trading FZE. Cash contribution Expand overseas sales channels
Hikrobot Japan KK Cash contribution Expand overseas sales channels
IX. Structural Entities Controlled by the Company
□ Applicable √ Inapplicable
X. Outlook for the Future Development of the Company
1. Development Trends for the Industry
IoT perception AI and big data are the core technologies of the AIoT industry and key drivers for digital
transformation. The development of the AIoT industry will drive various industries and bring unprecedented
changes to the entire society.The Company has long-standing technical expertise and first-mover advantage in the field of AIoT and is
confident to seize the industrial opportunities brought by innovations in large models. It will collaborate with
partners to advance the digital transformation of various industry scenarios contributing to the broader societal
digital transformation.
2. Development Strategy of the Company
Hikvision is committed to serving various industries with IoT perception AI and big data technologies leading
the future of AIoT. Through comprehensive perception technologies we aim to help people better connect with the
140Hikvision 2024 Annual Report
world around them. With a wealth of intelligent products we strive to identify and satisfy diverse demands by
delivering intelligence at your fingertips. Through innovative AIoT applications we are dedicated to empowering
every individual to enjoy a better future by building an intelligent world that is more convenient efficient and secure.
3. Key Priorities in 2025
(1) Seize the opportunity of the whole society's digital transformation accelerate the implementation of large-scale
model technologies focus on product and technological development and promote the growth of scenario-based
digital business.
(2) Drive organizational transformation and refined management to achieve long-term profitable growth.
(3) Accelerate the Company's internal digital transformation to improve operational efficiency.
(4) Continue to deepen marketing strategies and fully advance the digitalization of marketing sales and service.
(5) Enhance manufacturing capabilities to ensure supply security and continuously improve a flexible and efficient
supply chain.
(6) Expand the scale of innovative businesses strengthen competitiveness and strive for superior market positions
in respective sectors.XI. Reception of Activities including Research Communication and Interviews during the
Report Period
√ Applicable □ Inapplicable
The main content of
Type of
Time of Location of Method of the discussion and Index of basic situation of the
reception Reception object
reception reception reception the information research
object
provided
Headquarters Investors The Company's
Performance Institutional CNINF Investor Relations
meeting room including Guotai operations in 2023
April 20 2024 result investors; Activity Record on April 20
of the Junan Securities- and the first quarter
conference call individuals 2024
Company Liu Xiao of 2024
Investors
Headquarters
Site Research including Caitong The Company's CNINF Investor Relations
May 7 2024 – meeting room Institutional
and telephone Securities operating conditions Activity Record: From May 7
May 31 2024 of the investors
communication Management-Wu and future prospects 2024 – May 31 2024
Company
Jiaochen
Headquarters Performance Institutional Investors The Company's CNINF Investor Relations
August 17
meeting room result investors; including operating conditions Activity Record on August 17
2024
of the conference call individuals Chang'an Fund- in the first half of 2024
141Hikvision 2024 Annual Report
The main content of
Type of
Time of Location of Method of the discussion and Index of basic situation of the
reception Reception object
reception reception reception the information research
object
provided
Company Xu Xiaoyong 2024
Investors
Headquarters
Performance Institutional including The Company's CNINF Investor Relations
October 26 meeting room
result investors; Northeast operations in the Activity Record on October
2024 of the
conference call individuals Securities Co. third quarter of 2024 26 2024
Company
Ltd.-Huang Jing
Octorber 29 Headquarters Investors CNINF Investor Relations
Site Research Institutional The Company's
2024 – meeting room including Fuhua Activity Record: From
and telephone investors; operating conditions
December 6 of the Investment Trust- Octorber 29 2024 –
communication i ndividuals and future prospects
2024 Company Gong Xiaowei December 6 2024
XII. The Formulation and Implementation of Market Value Management Systems and
Valuation Enhancement Plans
Whether or not the Company has established the market value management system
√ Applicable □ Inapplicable
On April 17 2025 the Company's 6th Board of Directors convened its 5th meeting and reviewed and approved the
Market Value Management System. The system aims to legally and compliantly utilize various methods to enhance
its investment value thereby ensuring that the Company's investment value reasonably reflects its quality on the
basis of continuous improvement of the Company's operational standards and quality.Whether or not the Company has disclosed valuation enhancement plans
□ Applicable √ Inapplicable
142Hikvision 2024 Annual Report
Section IV Corporate Governance
I. Basic Situation of Corporate Governance
Since the inception of the Company we have been strictly following relevant laws and regulations such as the
Company Law Securities Law Code of Corporate Governance of Listed Companies Rules Governing the Listing
of Shares on Shenzhen Stock Exchange and Shenzhen Stock Exchange Listed Companies Self-Regulatory
Supervision Guidelines No. 1 - Standardized Operation of Main Board Listed Companies as well as the requirements
of the regulations and regulatory documents of the regulatory authorities and continuously improving the "3+1"
corporate governance structure comprising shareholders' meeting the Board of Directors the Board of Supervisors
and the management taking into consideration the actual situation of the Company and strictly follow the principle
of disclosing information in a true accurate complete timely and impartial manner; we have also established and
improved internal management and control system promoted the standardized operation of the Company and
ensured the legitimate rights and interests of the Company and investors. During the reporting period the basic
details of corporate governance is as follows:
1. Shareholders and shareholders' meeting
All shareholders of the Company have the equal status and full rights especially small and medium
shareholders. During the reporting period the Company held a total of 3 general meetings of shareholders which
was convened by the Company's Board of Directors and witnessed by lawyers on-site with legal opinions issued.Proposals of general meetings of shareholders were reviewed in compliance with legal procedures to ensure that all
shareholders have the right to know participate and vote on major issues of the Company and to fully exercise their
legal rights.
2. The controlling shareholders and listed company
The Company's controlling shareholders had no improper conduct and have never directly or indirectly
interfered with the Company's decision-making and operating activities overriding shareholders' meeting. There are
no such cases that controlling shareholders illegally occupy the Company's funds or the Company illegally provides
guarantees for controlling shareholders. The Company with its own complete business system and management
capabilities has been independent of controlling shareholders in terms of business personnel assets organizations
and finances. The Company's Board of Directors Board of Supervisors and internal institutions has been operating
separately and major company decisions are made and implemented by the Company.
143Hikvision 2024 Annual Report
3. Directors and the Board of Directors
The Company's Board of Directors operating in a normalized way has exercised its authority invested by the
Articles of Association and relevant laws and regulations and implemented the relevant decisions of the
shareholders' meeting. The number and composition of the Company's Board of Directors comply with the
requirements of laws and regulations. There are four committees for strategy audit nomination remuneration and
appraisal and risk and compliance under it. Each committee has a clear division of labor clear powers and
responsibilities and effective operation ensuring the Board's professionalization and efficiency of deliberation and
decision-making. All directors of the Company have performed their duties with integrity loyalty diligence
professionalism and due diligence and earnestly safeguard the legitimate rights and interests of the Company and
shareholders with a view to the interests of the Company and shareholders. Complying with the relevant provisions
of the Measures for the Administration of Independent Directors of Listed Companies regarding independence the
independent directors of the Company fulfilled their duties independently and objectively provided guidance and
advice and played their due role in improving the company's supervisory mechanisms. They ensured the interests
of the Company and its shareholders especially the shareholders of public shares were safeguarded promoted the
improvement of the Board's decision-making level and ensured the standardized operation of the Company.
4. Supervisors and Board of Supervisors
The Company's Board of Supervisors operating in a normalized way has exercised its authority invested by
the Articles of Association and relevant laws and regulations The number and composition of the Company's Board
of Supervisors meet the requirements of laws and regulations; the Company's supervisors have diligently performed
their duties and obligations and carried out supervision and inspection functions being responsible to shareholders
and supervised the Company's financial status operating conditions and related transactions and the performance
of duties by directors and senior managers to fully protect the legal rights and interests of the Company and all
shareholders.
5. Performance appraisal and incentive and restraint mechanism
The Company has established a complete performance appraisal system and remuneration system. The
appointment procedures for senior management personnel are open and transparent and comply with relevant laws
and regulations. The remuneration and appraisal committee under the Company's Board of Directors is responsible
for performance appraisal of the Company's senior management at the end of the year to determine their
remuneration. To further set up and improve the Company's incentive mechanism and strengthen the concept of
sustainable development of both the Company and employees the Company has adopted the plan of core staff's co-
144Hikvision 2024 Annual Report
investment into innovation business to achieve its development strategy and business objectives and realize
sustainable health development.
6. Information disclosure and transparency
The Company has strictly followed the relevant laws and regulations and the Information Disclosure
Management System to disclose relevant information truthfully accurately completely timely and impartially and
thoroughly implemented the Information Insider Management System to register insiders and file to further
standardize inside information management and to ensure that all shareholders and other stakeholders of the
Company have equal access to company information. The Company's information disclosure has been recognized
by the regulatory authorities: the Company has been rated as Level A by the Shenzhen Stock Exchange for 14
consecutive years in the main board listed company information disclosure assessment.
7. Continue to improve the internal management system
In accordance with relevant laws and regulations such as the Company Law and Securities Law as well as the
rules and normative documents from regulatory authorities and in accordance with the requirements of the
Company's Articles of Association the Company has established a set of internal management systems including
Deliberation Regulation for the shareholders' meeting board of directors and board of supervisors as well as
Working Rules of specific committees of the board of directors. These systems also include the Code of Conduct
for Independent Directors Rules for the General Manager's Work Authorization Management System Related
Party Transaction Management System External Guarantee Management System and Investor Relations
Management System. The Company continually strengthens internal management refines the governance structure
enhances the level of standard operations and safeguards the legitimate rights and interests of the Company and its
shareholders.
8. Investor relations activities
The Company has proactively organized result briefing conferences and investor research activities after the
disclosure of regular reports to actively listen to investors' opinions and suggestions and released the Investor
Relations Activity Record after the event to ensure fair access to company information by all investors. In daily
work the Company has kept in touch with investors through multiple channels such as telephone e-mail and
irm.cninfo.com.cn to effectively interact and communicate with investors. The Company has been honored with the
"China Listed Company Investor Relations Management Shareholder Returning Tianma Award" by the Securities
Times the "Best Board of Directors of Listed Companies in 2024" by the Economic Observer and the "Best IR
Team with the Best Institutional Coverage in 2023" by Finenter among other accolades.
145Hikvision 2024 Annual Report
Any significant incompliance for the laws administrative regulations and the relevant regulatory documents
issued by China Securities Regulatory Commission in respect of the Company's corporate governance:
□ Yes √ No
There is no significant incompliance for the laws administrative regulations and the relevant regulatory
documents issued by China Securities Regulatory Commission in respect of the Company's corporate governance.II. Company's Independence in Assets Personnel Finances Organizations and Businesses
from Controlling Shareholders and Actual Controller
The Company is completely independent in business personnel assets organizations and finances from its
shareholders. The Company has established a sound internal control system being capable of operating
independently with its complete and independent business.
1. Business independence: The Company has own production purchases and sales systems which are
completely independent from controlling shareholders. Therefore there is no competition among the Company
controlling shareholders and related parties.
2. Personnel independence: The Company has independent personnel. The management has set up various
independent departments including R&D production administration finance and operation management
divisions etc. and established complete management methods for labor personnel and salary management.Personnel of the Company is independent from controlling shareholders e.g. the chairman is elected through the
general meetings of the Board. In addition the general manager senior deputy general managers CFO the
secretary of the Board and other senior management personnel of the Company are work full-time in the Company
and receive remuneration and do not receive remuneration in the controlling shareholders nor do they hold any
administrative positions other than directors and supervisors in the controlling shareholders. Directors supervisors
and senior management personnel are appointed through legal procedures strictly in accordance with relevant
regulations stipulated in Company Law and Articles of Association. There is no controlling shareholder illegal
intervention in the Company's personnel decisions in general meetings of the Board or shareholders.
3. Asset Completeness: The property rights of assets are explicitly between the Company and the controlling
shareholders and no assets funds or other resources owned by the Company are illegally and irregularly occupied
or controlled by the controlling shareholders. Assets of the Company are integrated including complete property
146Hikvision 2024 Annual Report
rights of fixed assets for production supporting assets for production and intangible assets of patents etc. The
Company has the full control and ownership of all assets.
4. Independence in organizations: The Company's Board of Directors Board of Supervisor management
and other internal organizations operate independently and each functional department is independent from
controlling shareholders in duty and personnel. There is no superior-subordinate relation between functional
departments of controlling shareholders and those of the Company which would have an impact on the Company's
independent operations.
5. Financial Independence: The Company has established an independent financial department as well as a
sound and independent financial and accounting system. The Company makes financial decisions independently.There is a standardized financial accounting system and a financial management system for the Company's
branches and subsidiaries and there is no controlling shareholder intervention in the Company's financial and
accounting activities. The Company has maintained accounts with banks independently of and do not share any
bank account with our Controlling Shareholders. The Company has undertaken independent tax registration in
accordance with applicable laws and paid tax independently.III. Horizontal Competition
□ Applicable √ Inapplicable
IV. Annual General Meeting and Extraordinary General Meetings Convened during the
Reporting Period
1. General Meetings Convened during the Reporting Period
Proportion
of
Meeting Nature Convened Date Disclosure Date Resolution of the Meeting
participating
investors
21 proposals including the
2023 Annual Report and Its
Summary were
Annual General reviewedvoted and
2023 Annual General Meeting 65.7518% May 10 2024 May 11 2024
Meeting approved. For details
please refer to the
Company's announcement:
No. 2024-002.
147Hikvision 2024 Annual Report
6 proposals including the
Resolution on the Election
of Non-Independent
Directors for the 6th Board
2024 First Extraordinary Extraordinary of Directors were
62.3135% August 2 2024 August 3 2024
General Meeting General Meeting reviewedvoted and
approved. For details
please refer to the
Company's announcement:
No. 2024-041.The proposal on The
Company's Share
Repurchase Plan" was
2024 Second Extraordinary Extraordinary December 25 reviewedvoted and
68.4275 % December 26 2024
General Meeting General Meeting 2024 approved item by item. For
details please refer to the
Company's announcement:
No. 2024-068.
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with Resumed
Voting Rights:
□ Applicable √ Inapplicable
148Hikvision 2024 Annual Report
V. Information about Directors Supervisors Senior Management
1. Basic Situation
Shares Other
increased increase or
Termination Shares held at the Shares decreased Shares held at Reasons for
Tenure Commencement during decrease of
Name Gender Age Title of term of beginning of the during the Period the end of the increase or
status of term of office the shares
office Period (Shares) (Shares) Period (Shares) decrease of shares
Period (Share)
(shares)
Chairman of
the Board of Incumbent August 2 2024 --
Directors
Hu Increase of shares
Male 60 Director 155636477 360000 0 0 155996477
Yangzhong during the Period
General Term December 28 August 2
Manager Expired 2001 2024
(CEO)
Fu Baijun Male 53 Director Incumbent August 2 2024 -- 0 0 0 0 0 --
Xu Lixing Male 54 Director Incumbent August 2 2024 -- 0 0 0 0 0 --
Director
General The repurchase
Incumbent August 2 2024 --
Manager and cancellation
(CEO)
Xu Peng Male 49 108622 0 0 -70000 38622 of the Company's
Senior
2021 restricted
Deputy Term March 12 August 2
General Expired 2021 2024 shares
Manager
149Hikvision 2024 Annual Report
Shares Other
increased increase or
Termination Shares held at the Shares decreased Shares held at Reasons for
Tenure Commencement during decrease of
Name Gender Age Title of term of beginning of the during the Period the end of the increase or
status of term of office the shares
office Period (Shares) (Shares) Period (Shares) decrease of shares
Period (Share)
(shares)
Wang
Male 74 Director Incumbent March 5 2021 -- 35000 0 0 0 35000 --
Qiuchao
Wu Independent
Male 65 Incumbent March 5 2021 -- 0 0 0 0 0 --
Xiaobo Director
Independent
Hu Ruimin Male 61 Incumbent March 5 2021 -- 0 0 0 0 0 --
Director
Lv
Independent
Changjian Male 60 Incumbent August 2 2024 -- 0 0 0 0 0 --
Director
g
Tan Independent
Male 47 Incumbent August 2 2024 -- 0 0 0 0 0 --
Xiaofen Director
Chairman of
Lu
Male 71 the Board of Incumbent March 5 2021 -- 0 0 0 0 0 --
Jianzhong
Supervisors
Huang
Female 41 Supervisor Incumbent August 2 2024 -- 0 0 0 0 0 --
Employee
Pan Jia Male 45 Incumbent August 2 2024 -- 54625 0 0 0 54625 --
Supervisor
Senior
Deputy December 18
He Hongli Female 52 Incumbent -- 331500 0 0 0 331500 --
General 2005
Manager
150Hikvision 2024 Annual Report
Shares Other
increased increase or
Termination Shares held at the Shares decreased Shares held at Reasons for
Tenure Commencement during decrease of
Name Gender Age Title of term of beginning of the during the Period the end of the increase or
status of term of office the shares
office Period (Shares) (Shares) Period (Shares) decrease of shares
Period (Share)
(shares)
The repurchase
Senior and cancellation
Pu Deputy
Male 48 Incumbent March 21 2018 -- 355900 0 0 -90000 265900 of the Company's
Shiliang General
Manager 2021 restricted
shares
Senior
Guo Deputy March 12 Increase of shares
Male 53 Incumbent -- 21140 30000 0 0 51140
Xudong General 2021 during the Period
Manager
Increase of shares
during the Period
and the
Senior
Deputy October 11 repurchase and
Xu Ximing Male 52 Incumbent -- 227900 10000 0 -90000 147900
General 2016 cancellation of
Manager
the Company's
2021 restricted
shares
Senior
Chen Deputy
Male 54 Incumbent March 21 2018 -- 0 0 0 0 0 --
Junke General
Manager
Senior Increase of shares
Huang
Female 43 Deputy Incumbent April 8 2016 -- 449500 30000 0 -80000 399500 during the Period
Fanghong
General and the
151Hikvision 2024 Annual Report
Shares Other
increased increase or
Termination Shares held at the Shares decreased Shares held at Reasons for
Tenure Commencement during decrease of
Name Gender Age Title of term of beginning of the during the Period the end of the increase or
status of term of office the shares
office Period (Shares) (Shares) Period (Shares) decrease of shares
Period (Share)
(shares)
Manager repurchase and
cancellation of
the Company's
2021 restricted
shares
Senior
The repurchase
Deputy
General and cancellation
Jin Yan Female 46 Manager Incumbent July 22 2015 -- 331000 0 0 -80000 251000 of the Company's
Person in 2021 restricted
Charge of
shares
Finance
Senior
Cai Deputy
Male 54 Incumbent April 8 2016 -- 109500 0 0 0 109500 --
Changyang General
Manager
Senior
Deputy
General October 25
Feng Wei Male 46 Incumbent -- 0 0 0 0 0 --
Manager 2024
Board
Secretary
Chairman of Term
Chen August 2
Male 60 the Board of Expired and June 19 2008 0 0 0 0 0 --
Zongnian 2024
Directors Resigned
152Hikvision 2024 Annual Report
Shares Other
increased increase or
Termination Shares held at the Shares decreased Shares held at Reasons for
Tenure Commencement during decrease of
Name Gender Age Title of term of beginning of the during the Period the end of the increase or
status of term of office the shares
office Period (Shares) (Shares) Period (Shares) decrease of shares
Period (Share)
(shares)
Term August 2
Qu Liyang Male 61 Director Expired and March 7 2018 15750 0 0 0 15750 --
2024
Resigned
Director
Standing
Term
Deputy August 2
Wu Weiqi Male 61 Expired and March 1 2003 8685789 0 0 0 8685789 --
General 2024 Resigned
Manager
Term August 2
Independent
Li Shuhua Male 54 Expired and March 5 2021 0 0 0 0 0 --
Director 2024 Resigned
Term August 2
Guan Independent
Male 48 Expired and March 5 2021 0 0 0 0 0 --
Qingyou Director 2024
Resigned
Chairman of Term August 2
Hong
Male 59 the Board of Expired and March 5 2021 0 0 0 0 0 --
Tianfeng 2024
Supervisors Resigned
Term August 2
Xu Lirong Male 62 Supervisor Expired and March 21 2018 303000 0 0 0 303000 --
2024
Resigned
Senior
Term
Deputy August 2
Jin Duo Male 60 Expired and March 10 2015 109500 0 0 0 109500 --
General 2024
Resigned
Manager
Senior
Deputy October 11 August 2
Bi Huijuan Female 54 Resigned 236100 0 0 236100 --
General 2016 2024
Manager
153Hikvision 2024 Annual Report
Shares Other
increased increase or
Termination Shares held at the Shares decreased Shares held at Reasons for
Tenure Commencement during decrease of
Name Gender Age Title of term of beginning of the during the Period the end of the increase or
status of term of office the shares
office Period (Shares) (Shares) Period (Shares) decrease of shares
Period (Share)
(shares)
Total -- -- -- -- -- -- 167011303 430000 0 -410000 167031303 --
Note: 1. The number of shares held at the beginning of the period shares increased during the period shares decreased during the period other increase or decrease
of shares and shares held at the end of the period for directors supervisors and senior management personnel above are all shares directly held by them accordingly
including restricted shares.
2. On August 2 2024 Hu Yangzhong was elected as the Company's chairman; Fu Bojun Xu Lixing and Xu Peng were elected as directors; Lv Changjiang and Tan
Xiaofen were elected as independent directors; and Huang Xing and Pan Jia were elected as supervisors. On October 25 2024 Feng Wei was appointed as a senior
executive of the Company.On August 2 2024 Chen Zongnian Qu Liyang and Wu Weiqi completed their terms and left from their positions as directors of the Company. Li Shuhua and Guan
Qingyou completed their terms and left from their positions as independent directors of the Company. Hong Tianfeng and Xu Lirong completed their terms and left
from their positions as supervisors of the Company. Wu Weiqi and Jin Duo completed their terms and left from their positions as senior management of the Company.On October 25 2024 Bi Huijuan left from her position as senior management of the Company.
3. During the reporting period the initial number of shares held by newly appointed Directors Supervisors and Senior Management is the number of shares held as
of their appointment date.Any resignation of directors or supervisors and dismissals of senior management personnel during their term of office during the reporting period.√Yes □No
On October 25 2024 Ms. Bi Huijuan a senior management member of the Company applied to resign from her position as senior deputy general manager of the
Company for personal reasons. For further details please refer to the Company's announcement Announcement on the Resignation of a Senior Management Member
published on October 26 2024 on the cninfo website (www.cninfo.com.cn).
154Hikvision 2024 Annual Report
Change of directors supervisors and senior management personnel
√Applicable □Inapplicable
Name Title Type Date Reason
Appointment and
Hu Yangzhong Chairman August 2 2024 Rotation
Removal
Fu Baijun Director Election August 2 2024 Rotation
Xu Lixing Director Election August 2 2024 Rotation
Appointment and
Xu Peng Director CEO August 2 2024 Rotation
Removal
Lv Changjiang Independent Director Election August 2 2024 Rotation
Tan Xiaofen Independent Director Election August 2 2024 Rotation
Lu Jianzhong Supervisor Chairman Election August 2 2024 Rotation
Huang Xing Supervisor Election August 2 2024 Rotation
Pan Jia Employee Supervisor Election August 2 2024 Rotation
Senior Deputy General
Feng Wei Appointment October 25 2024 Appointment
Manager
Chen Zongnian Chairman Expiration of term August 2 2024 Rotation
Qu Liyang Director Expiration of term August 2 2024 Rotation
Director
Wu Weiqi Standing Deputy Expiration of term August 2 2024 Rotation
General Manager
Li Shuhua Independent Director Expiration of term August 2 2024 Rotation
Guan Qingyou Independent Director Expiration of term August 2 2024 Rotation
Hong Tianfeng Supervisor Chairman Expiration of term August 2 2024 Rotation
Xu Lirong Employee Supervisor Expiration of term August 2 2024 Rotation
Senior Deputy General
Jin Duo Expiration of term August 2 2024 Rotation
Manager
Senior Deputy General
Bi Huijuan Resignation October 25 2024 Personal Reason
Manager
2. Positions and Incumbency
1) Directors
Mr. Hu Yangzhong (胡扬忠): Born in 1965 master of engineering a senior research engineer. He served as an
engineer of 52nd Research Institute at China Electronics Technology Group Corporation (hereinafter referred to as
"52nd Research Institute") from June 1989 to December 2001. From December 2013 to April 2022 he served as a
director of China Electronics Technology HIK Group Ltd. (hereinafter referred to as "CETHIK"). From December
2001 to August 2024 he served as a director and the general manager of the Company. Hu currently serves as the
155Hikvision 2024 Annual Report
Chairman of the Board of Directors of the Company.Mr. Fu Bajun (傅柏军): Born in 1972 bachelor of economics a senior accountant. He successively held positions
such as senior deputy general manager of Hikvision and assistant general manager of China Electronics Technology
HIK Group Co. Ltd. He is currently a director of Hikvision.Mr. Xu Lixing (徐立兴): Born in 1971 bachelor of economics a senior accountant. He has successively served as
the chief accountant of the 55th Research Institute of China Electronics Technology Group Ltd. China Electronics
National Basic Southern Group Co. Ltd. the 14th Research Institute of China Electronics Technology Group Ltd.and China Electronics Guo Rui Group Co. Ltd. He is currently the chief accountant of China Electronics
Technology HIK Group Co. Ltd. and a director of Hikvision.Mr. Xu Peng (徐鹏): Born in 1976 bachelor of engineering a senior engineer. From 1998 to 2004 he successively
held positions such as assistant engineer and engineer at the 52nd Research Institute of China Electronics Technology
Group Ltd. He joined Hikvision in 2004 and successively served as a camera R&D manager R&D director product
director general manager of the front-end product business department deputy general manager and senior deputy
general manager of Hikvision. He is currently a director and general manager of Hikvision.Mr. Wang Qiuchao (王秋潮): Born in 1951 master of Law. He successively served as the general director of
Zhejiang Tiance Law Firm president of Lawyers Association of Zhejiang and vice president of the Zhejiang Law
Society. He is currently an Honorary Partner of Zhejiang Tiance Law Firm an arbitrator of the China International
Economic and Trade Arbitration Commission an arbitrator of the Shanghai International Arbitration Center an
arbitrator of the Shenzhen International Arbitration Center and a director of Hikvision.Mr. Wu Xiaobo (吴晓波): Born in 1960 a PhD of business administration Professor Ph.D. Tutor. In February
1982 he joined the Energy Saving Office of the Ministry of Forestry Zhejiang Energy Conservation Technology
Service Center and joined the School of Management of Zhejiang University in July 1992 successively served as
an executive vice dean and dean. He is currently the Director of the Department of Social Sciences of Zhejiang
University the director of the National Philosophy and Social Science Innovation Base - Research on Innovation
Management and Sustainable Competitiveness of Zhejiang University the Chinese director of the Joint Research
Center for Global Manufacturing and Innovation Management of Zhejiang University-Cambridge University the
co-director of the Ruihua Institute of Innovation Management an independent director of UCloud Technology Co.Ltd. and an independent director of the Company.Mr. Hu Ruimin (胡瑞敏): Born in 1964 a PhD in engineering second-level professor doctoral tutor Luojia
156Hikvision 2024 Annual Report
distinguished scholar recipient of Special Government Grants from the State Council Senior Member of IEEE
(Institute of Electrical and Electronics Engineers) fellow of China Institute of Communications distinguished
member of China Computer Federation. He has successively served as vice chairman of the Academic Committee
of Wuhan University director of the National Multimedia Software Engineering Technology Research Center
director of Hubei Provincial Key Laboratory of Multimedia Network Communication Engineering First Executive
Dean of National Cyber Security College and Dean of School of Computer Science of Wuhan University. From
December 2007 to December 2013 he served as an independent director of Wuhan Tienyu Information Industry
Co. Ltd. From January 2010 to January 2016 he served as the first dean of Hikvision Research Institute. He is
currently a professor of Wuhan University and an independent director of the Company.Mr. Lv Changjiang (吕长江): Born in 1965 a PhD in Economics a national high-level talent and a recipient of
the special government allowance of the State Council. He has successively served as an independent director of
East Money Information Co. Ltd. China Tianying Inc. and Montage Technology Co. Ltd. He is currently the
deputy dean of the School of Management a professor and doctoral supervisor of accounting at Fudan University
the co-editor-in-chief of "China Accounting Review" and "China Management Accounting" an independent
director of Youngor Group Co. Ltd. and an independent director of Hikvision.Mr. Tan Xiaofen (谭小芬): Born in 1978 holding Bachelor and Master degree from the School of Economics and
Business Administration at Beijing Normal University and a Doctorate from the Chinese Academy of Social
Sciences. His research areas include finance macroeconomics and international economics. He is a doctoral
supervisor a visiting scholar at Columbia University in the United States the chief expert of major projects of the
National Social Science Fund the chief expert of key projects of the National Natural Science Fund and the chief
expert of major projects of the Ministry of Education's Philosophy and Social Science Late-stage Funding. He
successively served as a professor and deputy dean of the School of Finance director of the Personnel Department
director of the Talent Work Office minister of the Teacher Work Department director of the Development Planning
Department and director of the Discipline Construction Office at Central University of Finance and Economics. He
is currently a professor of finance at the School of Economics and Management at Beihang University an
outstanding young scholar of Bluesky Plan a Changjiang Young Scholar of the Ministry of Education an
independent director of Minsheng Royal Fund Management Co.Ltd. and Sunshine Life Insurance Co. Ltd. and
an independent director of Hikvision.
2) Supervisors
157Hikvision 2024 Annual Report
Mr. Lu Jianzhong (陆建忠): Born in 1954 holds bachelor degree in economics and CPA certificate. Lu served as
a lecturer and an associate professor of finance and accounting department at Shanghai Maritime University from
September 1986 to September 1997; he was a CPA and a partner of the auditing department of
PricewaterhouseCoopers from October 1997 to June 2012; he was a chartered accountant of Shanghai De'an
Certified Public Accountants LLP from July 2012 to July 2013; he was a chartered accountant of the Shanghai
branch of PKF Daxin Certified Public Accountants LLP from August 2013 to July 2014;he was a partner and a
chartered accountant and a partner of Zhongxinghua Certificated Public Accountants LLP from August 2014 to
January 2016; he was a chartered accountant of Dahua Certificated Public Accountants LLP from January 2016 to
December 2021. Lu currently serves as a chartered accountant of Zhongxinghua Certificated Public Accountants
LLP Shanghai Branch and the chairman of the Board of Supervisors of the Company.Ms. Huang Xing (黄星): Born in 1984 bachelor of management an accountant. She has served as the deputy
director (in charge of work) and director of the Audit Department and deputy minister of the supervision and audit
department at China Electronics Technology HIK Group Co. Ltd. She is currently the deputy minister (in charge
of work) of the supervision and audit department director of the Supervision Department and director of the audit
department of China Electronics Technology HIK Group Co. Ltd. and a supervisor of Hikvision.Mr. Pan Jia (潘佳): Born in 1980 master of engineering. From July 2006 to March 2013 he served as a customer
manager in the Semiconductor Division of Texas Instruments Semiconductor Technology (Shanghai) Co. Ltd. He
joined Hikvision in April 2013 and held positions such as manager of the Procurement Management Department
director of the Procurement Management Department and director of the Planning Department of the Supply Chain
Center. He currently serves as a staff representative supervisor of the Company and General Manager of the
Hangzhou Production Base of the Supply Chain Center.
3) Senior Management Personnel
Mr. Xu Peng (徐鹏): Please refer to his profile in preceding part of the report.Ms. He Hongli (何虹丽): Born in 1973 master of business administration. She joined Hikvision in December 2001
and served as an assistant to the general manager and a deputy general manager of the Company. Ms. He currently
serves as a senior deputy general manager of the Company.Mr. Pu Shiliang (浦世亮): Born in 1977 doctor of engineering a senior engineer. He joined Hikvision in April
2006 and held various positions in the Company including R&D engineer R&D manager R&D director chief
expert and dean of the R&D institute. He currently serves as a senior deputy general manager of the Company.
158Hikvision 2024 Annual Report
Mr. Guo Xudong (郭旭东): Born in 1972 bachelor of engineering. In July 2002 he joined Hikvision and
successively served as general manager of Shenzhen Branch marketing director of domestic marketing center and
deputy general manager of domestic marketing center. He is currently the senior deputy general manager of the
Company.Mr. Xu Ximing (徐习明): Born in 1973 bachelor of engineering. From July 1996 to September 2016 he held
various positions in IBM including engineer department manager director partner of consulting service senior
partner of consulting service and a vice president. He joined Hikvision in September 2016 and served as a deputy
general manager of the Company. Mr. Xu currently serves as a senior deputy general manager of the Company.Mr. Chen Junke (陈军科): Born in 1971 bachelor of engineering a senior engineer. Chen held various positions
in the 52nd Research Institute from 1994 to 2001 including assistant engineer engineer and senior engineer. He
joined the Company in 2001 and served as the technology director of the Digital Video Recorder (DVR) Division
of the Technology Management Center general manager of supply chain management center employee
representative supervisor. Chen currently serves as senior deputy general manager of the Company.Ms. Huang Fanghong (黄方红): Born in 1982 bachelor of law. She joined Hikvision in June 2009 and held various
positions at the Company including legal department manager internal audit manager internal control director and
a deputy general manager and the board secretary. Ms. Huang currently serves as a senior deputy general manager.Ms. Jin Yan (金艳): Born in 1979 master of management an accountant. She joined Hikvision in 2004 and held
various positions at the Company including financial manager the general manager of the Financial Management
Center and a deputy general manager and the person in charge of finance and accounting. Ms. Jin currently serves
as a senior deputy general manager and the person in charge of finance and accounting of the Company.Mr. Cai Changyang (蔡昶阳): Born in 1971 bachelor of engineering. He joined Hikvision in 2004 and held
various positions of the Company including general manager of Beijing branch director for government and
enterprise corporation department director of investment department director of strategy and marketing department
and a deputy general manager of the Company. Mr. Cai currently serves as senior deputy general manager of the
Company.Mr. Feng Wei (奉玮): Born in 1979 master of engineering. From January 2005 to June 2010 he served as an
international management trainee supply chain quality engineer and market information manager at the German
ZF Group. From July 2010 to November 2013 he was an industry analyst at China Everbright Securities Co. Ltd.From November 2013 to October 2019 he served as the managing director of the research division and the chief
analyst for the automotive and auto parts industry at China International Capital Corporation Limited (CICC). From
159Hikvision 2024 Annual Report
November 2019 to July 2024 he was the Chief Financial Officer of NIO Group. In October 2024 he joined
Hikvision and is currently the Company's senior deputy general manager and Board secretary.Position held in shareholders' entities
√Applicable □ Inapplicable
Position in shareholders' Commencement
Termination of the Compensation and
Name Shareholder's entity term allowance from the
entities of the term
shareholders' entity
Chen China Electronics Chairman of the Board of
November 2013 Y
Zongnian Technology HIK Group Ltd. Directors
China Electronics Deputy Secretary of the
Fu Baijun February 2023 Y
Technology HIK Group Ltd. Committee
China Electronics
Xu Lixing Chief Accountant February 2023 Y
Technology HIK Group Ltd.China Electronics Deputy Minister (in charge
Huang Xing of work) of the Supervision December 2023 Y
Technology HIK Group Ltd.and Audit Department
China Electronics
Xu Lirong Supervisor December 2013 N
Technology HIK Group Ltd.Positions held in other entities
√Applicable □ Inapplicable
Compensation and
Position in other Commencement Termination of
Name Name of other Entity allowance from the other
entity of the term the term
entities
China Electronics Technology
Xu Lixing Supervisor April 2022 N
Financial Co. Ltd.Xu Lixing Phoenix Optics Ltd. Director December 2023 N
Zhejiang Chituo Technology
Xu Lixing Director January 2021 N
Co. Ltd.Maxiot Technology
Xu Peng Director December 2021 N
(Hangzhou) Co. Ltd.Wang Qiuchao Zhejiang T&C Law Firm Partner June 1986 Y
Shanghai Kehui Value
Wang Qiuchao Director July 2009 N
Investment Management Ltd.Yalongxing Investment
Wang Qiuchao Director February 2012 January 2024 N
Development Ltd.Shanghai Yirui Management
Wu Xiaobo Director April 2004 April 2024 N
Consultants Ltd.Hangzhou Co-Rui Enterprise
Wu Xiaobo Director April 2011 N
Management Consulting Ltd.
160Hikvision 2024 Annual Report
Compensation and
Position in other Commencement Termination of
Name Name of other Entity allowance from the other
entity of the term the term
entities
Ningbo Industrial Internet
Wu Xiaobo Director May 2018 Y
Research Institute Ltd.Independent November
Wu Xiaobo Eddy Co. Ltd. August 2018 Y
Director 2024
Zhongliang Holdings Group Independent
Wu Xiaobo June 2019 Y
Ltd. Director
Ruihua Innovation
Wu Xiaobo Management Research Director November 2019 N
Institute (Hangzhou) Ltd.Independent
Wu Xiaobo UCloud Technology Co. Ltd. June 2020 Y
Director
Zhongtian Holding Group Independent
Wu Xiaobo July 2021 Y
Ltd. Director
Montage Technology Group Independent
Lv Changjiang October 2018 June 2024 Y
Co. Ltd. Director
Independent
Lv Changjiang Youngor Fashion Co. Ltd. May 2020 Y
Director
China Minsheng Bank Fund Independent
Tan Xiaofen January 2023 Y
Management Co. Ltd. Director
Yangguang Life Insurance Independent
Tan Xiaofen March 2024 Y
Co. Ltd. Director
Huatai Baoxing Fund
Lu Jianzhong Director July 2016 Y
Management Co. Ltd.COSCO SHIPPING Independent
Lu Jianzhong January 2018 July 2024 Y
Development Co. Ltd. Director
Shanghai Xinnanyang Only Independent
Lu Jianzhong Education & Technology Co. Director January 2019 January 2025 Y
Ltd.Shanghai Instrumentation &
Lu Jianzhong Director December 2019 N
Electrical (Group) Co. Ltd.Shanghai Vico Precision Independent
Lu Jianzhong May 2021 June 2024 Y
Mold & Plastics Co. Ltd. Director
BOMESC Offshore Independent
Lu Jianzhong Engineering Company Director December 2021 Y
Limited
Lu Jianzhong Zhongxinghua Certified Certified Public January 2022 N
161Hikvision 2024 Annual Report
Compensation and
Position in other Commencement Termination of
Name Name of other Entity allowance from the other
entity of the term the term
entities
Public Accountants (Special Accountant
General Partnership)
Shanghai Branch
Independent
Lu Jianzhong Bank of Tianjin Co. Ltd. August 2022 Y
Director
Zhejiang Haikang Science &
Huang Xing Supervisor December 2019 N
Technology Co. Ltd.Beijing Hehai Technology
Huang Xing Supervisor April 2020 N
Co. Ltd.Zhejiang Yibo High-Tech
Huang Xing Supervisor January 2023 N
Technology Co. Ltd.Zhejiang Chituo Technology
Huang Xing Supervisor January 2024 N
Co. Ltd.Chairman of the
Hangzhou Hongyan Electric
Huang Xing Board of June 2024 N
Co. Ltd.Supervisors
Zhejiang AIoT Technology Legal
Chen Zongnian May 2009 N
Magazine Representative
Chairman of the
Chen Zongnian Phoenix Optics Ltd. December 2019 N
Board of Directors
Hangzhou Pukang Equity
Wu Weiqi Investment Partnership Executive Partner April 2011 N
(Limited Partnership)
Xi'an ShaanGu Power Co. Independent
Li Shuhua May 2018 July 2024 Y
Ltd. Director
Luoyang Yuchuan Yuye Independent
Li Shuhua August 2018 June 2024 Y
Group Co. Ltd. Director
Chairman of the
Changzhou Guangyang
Li Shuhua Board of Directors December 2022 N
Holdings Ltd.and CEO
Chairman of the
Li Shuhua Changzhou NRB Co. Ltd. October 2019 Y
Board of Directors
Chairman of the
Li Shuhua Weihai Shiyi Electronics Ltd. December 2020 N
Board of Directors
Independent
Li Shuhua Juzhengyuan Co. Ltd. December 2020 Y
Director
162Hikvision 2024 Annual Report
Compensation and
Position in other Commencement Termination of
Name Name of other Entity allowance from the other
entity of the term the term
entities
CIMC-TianDa Holdings Independent
Li Shuhua May 2021 Y
Company Ltd. Director
Guangdong Shengyi Independent
Li Shuhua October 2021 June 2024 Y
Technology Co. Ltd. Director
TianJin TianHai Precision Chairman of the
Li Shuhua December 2022 N
Forging Co. Ltd. Board of Directors
Independent
Li Shuhua Yingda Securities Co.Ltd. July 2023 Y
director
Yangzhou Goyoan Seiichi
Chairman of the
Li Shuhua Intelligent Technology Co. April 2024 N
Board of Directors
Ltd.Beijing Rushi Chengjin
Guan Qingyou Information Consulting CEO October 2016 N
Services Ltd.Beijing Rushiwo Research
Executive Director
Guan Qingyou Information Consulting December 2017 Y
and CEO
Service Ltd.Independent
Guan Qingyou Midea Group Co. Ltd. August 2018 July 2024 Y
Director
Beijing Xincai Zhibei
Guan Qingyou Supervisor October 2018 N
Information Technology Ltd.Independent
Guan Qingyou South China Futures Co. Ltd. March 2019 July 2024 Y
Director
Beijing Moviebook Independent
Guan Qingyou March 2019 January 2024 N
Technology Co. Ltd. Director
Shanxi International Trust Independent
Guan Qingyou July 2019 July 2024 Y
Co. Ltd. Director
Beijing Rushiwo Research
Executive Director
Guan Qingyou Institute of Science and May 2020 N
and CEO
Technology Ltd.Beijing Rushi Wancheng
Executive Director
Guan Qingyou Technology Development June 2020 N
and CEO
Ltd.Hainan Wuyongtang Executive Director
Guan Qingyou July 2020 N
Information Technology Ltd. and CEO
Guan Qingyou Beijing Yaocen Yuanmu Executive director July 2020 N
163Hikvision 2024 Annual Report
Compensation and
Position in other Commencement Termination of
Name Name of other Entity allowance from the other
entity of the term the term
entities
Information Technology Ltd. & CEO
Beijing Ruoan Jiatai Executive Director
Guan Qingyou December 2020 N
Technology Ltd. and CEO
Zhongchancheng Investment
Guan Qingyou Supervisor March 2021 N
(Shenzhen) Ltd.Qingdao Rushiwo Research
Guan Qingyou Supervisor November 2021 N
Investment Management Ltd.Shenzhen Jiuzhoutongyu
Guan Qingyou Supervisor January 2022 N
Technology Ltd.Ucap Cloud Information Independent
Guan Qingyou September 2022 Y
Technology Co.Ltd. Director
Shanghai Fangguang Executive Director
Hong Tianfeng February 2012 Y
Investment Management Ltd. and CEO
Shenzhen Yunzhixun
Hong Tianfeng Director May 2014 N
Network Technology Ltd.Shenzhen Fangguang
Executive Director
Hong Tianfeng Enterprise Management May 2016 N
and CEO
Consulting Ltd.CETC Huayun Information
Hong Tianfeng Director March 2017 N
Technology Ltd.Shanghai Daxian Intelligent
Hong Tianfeng Director June 2018 January 2024 N
Science and Technology Ltd.Quanzhi Technology
Hong Tianfeng Director June 2020 N
(Hangzhou) Ltd.Shanghai Fanglan Enterprise Executive Director
Hong Tianfeng March 2021 January 2024 N
Management Center and CEO
Shanghai Fangguang
Hong Tianfeng Enterprise Management Executive director November 2022 N
Consulting Ltd.Nantong Fangjun Enterprise
Hong Tianfeng Supervisor March 2023 N
Management Co. Ltd.Nantong Fangyuan Enterprise
Hong Tianfeng Executive Director March 2023 N
Management Co. Ltd.Hunan Zerafber New
Hong Tianfeng Director August 2022 N
Materials Co. Ltd.Hong Tianfeng Shanghai Fangkeng Supervisor March 2024 June 2024 N
164Hikvision 2024 Annual Report
Compensation and
Position in other Commencement Termination of
Name Name of other Entity allowance from the other
entity of the term the term
entities
Enterprise Management Co.Ltd.Shenzhen Wangyu Security
Xu Ximing Service Science and Director November 2019 N
Technology Ltd.Chengdu Guoshengtianfeng
Xu Ximing Director August 2020 N
Network Technology Ltd.Hangzhou Confirmware
Xu Ximing Director August 2021 N
Technology Co. Ltd.Zhejiang Fast Line data
Guo Xudong fusion Information Director January 2021 N
Technology Co. Ltd.Legal representative
Zhejiang Haishi Huayue
Jin Duo and Chairman of the January 2020 Febuary 2025 N
Digital Technology Ltd
Board of Directors
Incumbent and off-office directors supervisors and senior management personnel during the reporting period that
have been imposed administrative penalties by the CSRC during the last three years.□ Applicable √ Inapplicable
3. Remuneration of Directors Supervisors and Senior Management Personnel
The decision-making program determination basis and actual remuneration payment of directors supervisors and
senior management personnel:
The remuneration of directors supervisors and senior management personnel will be received preliminarily by
the Remuneration and Appraisal Committee of the Board among them remuneration of independent directors
and external supervisors would be further reviewed and approved by general meeting of shareholders. As for those
directors (exclude independent directors) supervisors (exclude external supervisors) and senior management
personnel who receive remuneration from the Company directly they will receive remuneration according to the
Company's current Salary System and Performance Appraisal Schemes.Explanations on other situations.□ Applicable √ Inapplicable
Remuneration of directors supervisors and senior management personnel
Unit: RMB 0000
165Hikvision 2024 Annual Report
Total
remuneration Remuneration
Name Gender Age Title Tenure status from the from related
Company parties (Y/N)
(RMB'0000)
Hu
M 60 Chairman of the Board of Directors Incumbent 215.53 N
Yangzhong
Fu Baijun M 53 Director Incumbent 0 Y
Xu Lixing M 54 Director Incumbent 0 Y
Xu Peng M 49 Director and CEO Incumbent 247.99 N
Wang Incumbent
M 74 Director 30.00 N
Qiuchao
Wu Xiaobo M 65 Independent Director Incumbent 30.00 N
Hu Ruimin M 61 Independent Director Incumbent 30.00 N
Lv Incumbent
M 60 Independent Director 12.50 N
Changjiang
Tan Xiaofen M 47 Independent Director Incumbent 12.50 N
Lu Incumbent
M 71 Chairman of the Board of Supervisors 20.00 N
Jianzhong
Huang Xing F 41 Supervisor Incumbent 0 Y
Pan Jia M 45 Employee Supervisor Incumbent 51.82 N
He Hongli F 52 Senior Deputy General Manager Incumbent 255.50 N
Pu Shiliang M 48 Senior Deputy General Manager Incumbent 257.18 N
Guo Xudong M 53 Senior Deputy General Manager Incumbent 222.84 N
Xu Ximing M 52 Senior Deputy General Manager Incumbent 282.66 N
Chen Junke M 54 Senior Deputy General Manager Incumbent 229.72 N
Huang
F 43 Senior Deputy General Manager Incumbent 229.75 N
Fanghong
Senior Deputy General Manager Person
Jin Yan F 46 Incumbent 229.75 N
in Charge of Finance and Acounting
Cai
M 54 Senior Deputy General Manager Incumbent 231.32 N
Changyang
Senior Deputy General Manager
Feng Wei M 46 Incumbent 54.42 N
Board Secretary
Chen Term Expired and
M 60 Chairman of the Board of Directors 0 Y
Zongnian Resigned
Term Expired and
Qu Liyang M 61 Director 0 Y
Resigned
Wu Weiqi M 61 Director Standing Deputy General Term Expired and 117.32 N
166Hikvision 2024 Annual Report
Total
remuneration Remuneration
Name Gender Age Title Tenure status from the from related
Company parties (Y/N)
(RMB'0000)
Manager Resigned
Term Expired and
Li Shuhua M 54 Independent Director 17.50 N
Resigned
Guan Term Expired and
M 48 Independent Director 17.50 N
Qingyou Resigned
Hong Term Expired and
M 59 Chairman of the Board of Supervisors 11.67 N
Tianfeng Resigned
Term Expired and
Xu Lirong M 62 Supervisor 71.40 N
Resigned
Term Expired and
Jin Duo M 60 Senior Deputy General Manager 117.40 N
Resigned
Bi Huijuan F 54 Senior Deputy General Manager Resigned 194.04 N
Total -- -- -- -- 3190.31 --
Note 1: Directors (excluding independent directors) supervisors (excluding non-employee representative
supervisors) and senior managers who serve in the Company and receive remuneration with the numeration structure
composed of 50% of basic salary 50% of bonuses linked to the Company's performance and social insurance and
provident fund paid in accordance with the statutory proportion.Note 2: The compensation for current directors supervisors and senior management during the reporting period
reflects the total remuneration accrued during their tenure. For former directors supervisors and senior management
who have left their positions the disclosed compensation represents the total remuneration received during their
tenure within the reporting period.Note 3: On August 2 2024 Fu Baijun and Xu Lixing were elected as company directors; Lv Changjiang and Tan
Xiaofen were elected as independent directors; Huang Xing and Pan Jia were elected as supervisors. On October
25 2024 Feng Wei was appointed as a senior management of the Company.
On August 2 2024 Chen Zongnian Qu Liyang and Wu Weiqi resigned as directors of the Company at the end of
their terms; Li Shuhua and Guan Qingyou resigned as independent directors of the Company at the end of their
terms; Hong Tianfeng and Xu Lirong resigned as supervisors of the Company at the end of their terms; Wu Weiqi
and Jin Duo resigned as senior management of the Company at the end of their terms. On October 25 2024 Bi
Huijuan resigned as senior management of the Company
167Hikvision 2024 Annual Report
VI. Performance of Duties by Directors during the Reporting Period
1. The Board of Directors during the Reporting Period
Meeting Session Convening Date Disclosure Date Meeting Resolutions
39 proposals were deliberated and approved at
The 20th meeting of the 5th session the meeting including 2023 Annual Report and
April 18 2024 April 20 2024
of the Board Its Summary. For details please refer to the
Company's announcement: No. 2024-009.
6 proposals were deliberated and approved at the
meeting including the Proposal on the
The 21st meeting of the 5th session Nomination of Non-Independent Director
July 17 2024 July 18 2024
of the Board Candidates for the Sixth Session of the Board.For details please refer to the Company's
announcement: No. 2024-028.
6 proposals were deliberated and approved at the
meeting including the Proposal on the Election
The 1st meeting of the 6th session
August 2 2024 August 3 2024 of the Chairman of the Sixth Session of Board of
of the Board
Directors. For details please refer to the
Company's announcement: No. 2024-043.
2 proposals were deliberated and approved at the
The 2nd meeting of the 6th session meeting including the 2024 Half Year Report
August 16 2024 August 17 2024
of the Board and Its Summary. For details please refer to the
Company's announcement: No. 2024-046.
2 proposal were deliberated and approved at the
The 3rd meeting of the 6th session meeting including the 2024Q3 Report and Its
October 25 2024 October 26 2024
of the Board Summary. For details please refer to the
Company's announcement: No. 2024-053.
2 proposal were deliberated and approved at the
meeting including the Proposal on the
The 4th meeting of the 6th session
December 9 2024 December 10 2024 Repurchase Plan of the Company's Shares. For
of the Board
details please refer to the Company's
announcement: No. 2024-060.
2. Attendance of Directors in Board Meetings and General Meetings
Attendance of directors in board meetings and general meetings
Presence of
Board meeting Board Board meeting Board meeting
Board meeting Board meeting independent
presence meeting presence by not attend in
Name of Director presence through absence directors in
required in the presence telecom- person for two
a proxy (times) (times) general
reporting on site communication consecutive
meetings
168Hikvision 2024 Annual Report
period (times) (times) (times) times (times)
Hu Yangzhong 6 3 3 0 0 N 3
Fu Baijun 4 2 2 0 0 N 2
Xu Lixing 4 2 2 0 0 N 2
Xu Peng 4 2 2 0 0 N 2
Wang Qiuchao 6 2 4 0 0 N 3
Wu Xiaobo 6 2 4 0 0 N 3
Hu Ruimin 6 3 3 0 0 N 3
Lv Changjiang 4 2 2 0 0 N 2
Tan Xiaofen 4 2 2 0 0 N 2
Chen Zongnian 2 1 1 0 0 N 2
Qu Liyang 2 1 1 0 0 N 2
Wu Weiqi 2 1 1 0 0 N 2
Li Shuhua 2 1 1 0 0 N 2
Guan Qingyou 2 1 1 0 0 N 2
1. On August 2 2024 the Company convened its 2024 First Extraordinary General Meeting completing the
election process. Fu Baijun Xu Lixing and Xu Peng were elected as directors of the 6th Session of the Board of
Explanation of the Directors while Lv Changjiang and Tan Xiaofen were elected as independent directors of the 6th Session of the
Situation Board of Directors.
2. During the reporting period the 5th Session of the Board of Directors of the Company held 2 board meetings
while the 6th Session of the Board of Directors of the Company held 4 board meetings.
3. Objections from Directors on Related Issues of the Company
Were there any objections on related issues of the Company from directors
□ Yes √ No
During the reporting period there is no objections on related issues of the Company from directors.
4. Other Details about the Performance of Duties by Directors
Were there any suggestions from directors accepted by the Company
√ Yes □ No
During the Reporting Period directors strictly followed related rules regulations including Company Law
Rules Governing the Listing of Shares on Shenzhen Stock Exchange Shenzhen Stock Exchange Listed Companies
Self-Regulatory Supervision Guidelines No. 1 - Standardized Operation of Main Board Listed Companies and
Articles of Association. They focused on the Company operation carefully review the Company's relevant meeting
169Hikvision 2024 Annual Report
materials reviewed and approved a number of board resolutions and have no objection to all the proposals; At the
same time the directors of the Company put forward relevant constructive suggestions based on their professional
abilities and the actual situation of the Company which had a positive impact on the standardized operation of the
Company and fulfilled their duties as directors.The Company's independent directors strictly followed Measures for the Administration of Independent
Directors of Listed Companies and related rules/ regulations carried out their duties and attended the shareholders'
general meetings the board meeting and meetings of the board's special committees. The special committee of in
dependent directors studied and deliberated matters such as financial statement related-party transactions the hiring
accounting firms and foreign exchange hedging. To improve the Company supervisory systems and to protect the
legal rights of the Company and shareholders especially public shareholders as a whole independent directors
provided professional and subjective advices enhancing the board's management capability ensuring the
Company's standardized operations. For details please refer to Independent Directors' 2024 Debriefings disclosed
on www.cninfo.com.cn.VII. The Special Committees under the Board during the Reporting Period
Important
Number of
Committee Name Members Convening Date Meeting Content comments and
meetings held
suggestions
Reviewed and approved 3
Strategy Committee
Chen Zongnian proposals including the 2023 All expressed
of the 5th session of April 18 2024 to
(convener) Wu 2 Annual Work Report of the concurring
the Board of June 11 2024
Xiaobo Hu Ruimin Strategy Committee of the opinions
Directors
Board of Directors
Reviewed and approved 11
Li Shuhua
Audit Committee of proposals including Proposal All expressed
(convener) Wang January 19 2024 to
the 5th session of the 3 on 2024 Reappointment of concurring
Qiuchao Guan April 18 2024
Board of Directors Certificated Public opinions
Qingyou
Accountants LLP
Remuneration and Reviewed and approved 8
Appraisal Guan Qingyou proposals including the 2023 All expressed
March 22 2024 to
Committee of the 5th (convener) Wu 3 Annual Report of the concurring
July 17 2024
session of the Board Xiaobo Wu Weiqi Remuneration and Appraisal opinions
of Directors Committee
Nomination Hu Ruimin April 18 2024 to Reviewed and approved 3 All expressed
2
Committee of the 5th (convener) Qu July 17 2024 proposals including the the concurring
170Hikvision 2024 Annual Report
Important
Number of
Committee Name Members Convening Date Meeting Content comments and
meetings held
suggestions
session of the Board Liyang Li shuhua 2023 Annual Report of the opinions
of Directors Nomination Committee
Reviewed and approved the
Strategy Committee Proposal on the Investment by
Hu Yangzhong All expressed
of the 6th session of the Controlled Subsidiary to
(convener) Hu 1 September 9 2024 concurring
the Board of Establish Hangzhou Micro
Ruimin Wu Xiaobo opinions
Directors Sensing Technology Ltd.(Provisional Name)
Reviewed and approved 4
Audit Committee of Lv Changjiang All expressed
August 2 2024 to proposals including the
the 6th session of the (convener) Tan 3 concurring
October 25 2024 Proposal on the Appointment
Board of Directors Xiaofen Xu Lixing opinions
of the Chief Financial Officer
Nomination Reviewed and approved 4
Wu Xiaobo All expressed
Committee of the 6th August 2 2024 to proposals including the
(convener) Tan 2 concurring
session of the Board October 14 2024 Proposal on the Appointment
Xiaofen Xu Lixing opinions
of Directors of the CEO
Risk and
Reviewed and approved the
Compliance Wang Qiuchao All expressed
Work Plan of the Risk and
Committee of the 6th (convener) Xupeng 1 August 22024 concurring
Compliance Committee of the
session of the Board Fu Baijun opinions
Board of Directors
of Directors
VIII. Performance of Duties by the Supervisory Committee
Were there any risks to the Company identified by Board of Supervisors when performing its duties during the
reporting period
□ Yes √ No
The Board of Supervisors has no objection to the supervision matters during the reporting period.IX. Staff in the Company
1. Statistics of Employees Professional Structure of the Staff and Educational Background
Number of incumbent employees in the parent Company at the end of the reporting period 17861
Number of incumbent employees in major subsidiaries at the end of the reporting period 41828
Number of incumbent employees at the end of the reporting period 59689
171Hikvision 2024 Annual Report
Number of employees receiving salaries in current period 59689
Number of retired employees requiring the parent Company and its subsidiaries to bear costs 0
Professional structure
Tier Number of employees
Managerial personnel 993
Production staff 18302
Sales staff 10151
Technical staff 28272
Financial staff 415
Administrative Staff 1556
Total 59689
Educational background
Education background Number of employees
Master and/or doctor/or above 11448
Bachelor 28740
Junior College (professional training) 7177
Other 12324
Total 59689
2. Staff Remuneration Policy
Hikvision applies scientific talent cultivation methods effective talent incentive mechanisms and fair
competition platforms to recruit talents and continuously optimizes the talent structure. The Company provides
employees with remuneration packages which are competitive in the industry. In addition to endowment insurance
medical insurance unemployment insurance employment injury insurance maternity insurance and housing
provident funds the Company also provides employees with the supplementary commercial insurance special
allowances and other benefits and creates a fairer and more humanized working environment for each employee;
so that each employee is able to demonstrate his/her value and create value to satisfy increasing demands for a good
life.
3. Staff Training Plans
The Company is driven by its long-term development strategy and aims to support business growth and talent
172Hikvision 2024 Annual Report
development by planning and implementing a series of training programs and courses. Adhering to the dual
strategies of "system building" and "resource development" we leverage a digital training platform to
comprehensively address training needs across all levels enhancing efficiency and effectiveness. Simultaneously
the Company actively explores agile and diversified talent development models focusing on key positions and core
talents to tailor customized learning solutions that facilitate business strategy execution.In 2025 the Company will further strengthen its talent development system. By designing and delivering talent
development initiatives and core business talent cultivation programs it aims to elevate workforce capabilities and
ensure a robust pipeline of critical talents for key roles and pivotal business campaigns.
4. Labor Outsourcing
□ Applicable √ Inapplicable
X. Profit Distribution and Capitalization of Capital Reserves
Profit distribution policy in the reporting period especially the formulation implementation and adjustment of
cash dividend policy
√Applicable □Inapplicable
Special explanation of cash dividend policy
Whether it complies with the provisions of the Company's articles of association or the requirements of
Yes
the resolution of the shareholders' meeting:
Whether the dividend standard and dividend ratio are clear: Yes
Whether the relevant decision-making procedures and mechanisms are complete: Yes
Whether independent directors performed their duties and played their due roles: Yes
For companies with no cash dividend disclose detailed reasons and further measures to improve Inapplicable
investment return for shareholders:
Whether minority shareholders have the opportunity to fully express their opinions and demands and Yes
whether their legitimate rights and interests are fully protected:
If the cash dividend policy is adjusted or changed whether the conditions and procedures are
Inapplicable
compliant and transparent:
The 20th meeting of the 5th session of the Board of Directors of the Company reviewed and approved the 2023
Annual Profit Distribution Proposal and was reviewed and approved by the Company's 2023 annual general
meeting: based on the Company's current total share capital of 9 330600931 shares the Company proposed to
173Hikvision 2024 Annual Report
distribute cash dividend of RMB 9 (tax inclusive) per each 10 shares to all shareholders bonus share and share
distribution from capital reserve is nil. The date of record for this profit distribution is May 20 2024 the ex-
rights/ex-dividend date is May 21 2024 and the total cash dividends (tax inclusive) is RMB8397540837.90.The above-mentioned profit distribution policy conforms to the provisions of the Company's articles of
association and the review procedures and fully protects the legitimate rights and interests of small and medium
investors and the independent directors have expressed their agreement.During the reporting period the Company was profitable and the distributable profits to shareholders of the
parent company was positive but the Company did not propose a cash dividend distribution plan.□ Applicable √ Inapplicable
Profit distribution and capitalizing of capital reserves for the current reporting period
√ Applicable □ Inapplicable
Bonus issue per 10 shares (share) 0
Cash dividend per 10 shares (RMB) (tax
7.00
inclusive)
Additional shares converted from capital reserves
0
for 10 shares (share)
Based on the total number of shares outstanding as of the record date for the
Total capital shares as the basis for the distribution
implementation of the 2024 annual profit distribution plan minus the number of
proposal (share)
shares held in the company's repurchase account.The Company plans to distribute cash dividend of RMB7.00 (tax inclusive) per
10 shares to all shareholders based on the total number of shares outstanding as
Total cash dividend (RMB) (tax inclusive) of the record date for the future implementation of the 2024 annual profit
distribution plan minus the number of shares held in the company's repurchase
account.Amount of cash dividends in other methods (such
310017794.90
as share repurchase) (RMB)
The sum of the company's share repurchases in 2024 RMB 310017794.90 and
the cash dividend of RMB7.00 per 10 shares (tax inclusive) distributed to all
Total cash dividends (including other methods) shareholders based on the total number of shares outstanding as of the record
(RMB) date for the implementation of the 2024 annual profit distribution plan (after
deducting shares held in the company's repurchase account)
Distributable profits (RMB) 44480765952.49
Percentage of cash dividends in the total
100.00%
distributed profit (%)
Cash dividend policy:
The Company is in the development stage and has a substantial plan of cash expenditure. In the current profit distribution cash
174Hikvision 2024 Annual Report
dividends shall account for at least 20%.Details about the plan for profit distribution and capitalizing capital reserves into share capital
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP in 2024 the parent company of the Company realized
net profit of RMB9484641144.09 with no withdrawal of statutory surplus reserve adding the undistributed profit of the parent
company at the beginning of the year of RMB43150159133.80 deducting the cash dividends of RMB8309878493.40 adding
back RMB155844168.00 of the unpaid dividends in past years for the repurchased restricted shares as of December 31 2024 the
profits distributable to shareholders of the parent company amounted to RMB44480765952.49 and the profits distributable to
shareholders in the consolidated statement were RMB60959912942.15. To sum up according to the principle of "whichever is
lower" the profits distributable to shareholders this year was RMB44480765952.49.
2024 annual profit distribution plan: The Company plans to distribute cash dividend of RMB7.00 (tax inclusive) per 10 shares to all
shareholders based on the total number of shares outstanding as of the record date for the future implementation of the 2024 annual
profit distribution plan minus the number of shares held in the Company's repurchase account and bonus share and share distribution
from capital reserve is nil. The remaining undistributed profits will be transferred to the next year.XI. The Implementation of an Equity Incentive Plan Employee Stock Incentive Plan or other
Incentive Plans
√Applicable □Inapplicable
1. Share Incentive
During the reporting period the Company terminated the implementation of the 2021 Restricted Stock Plan
and repurchased and canceled the relevant restricted shares.On April 18 2024 and May 10 2024 the 20th meeting of the 5th session of the Board of Directors the 18th
meeting of the 5th session of the Board of Supervisors and 2023 Annual General Meeting reviewed and approved
Proposal on Terminating the Implementation of the 2021 Restricted Stock Plan and Repurchasing and Canceling
Relevant Restricted Shares and agreed the company terminate the implementation of the 2021 Restricted Stock
Plan and repurchase and cancel all restricted stocks granted but not yet unlocked. The number of restricted stocks
proposed to be repurchased and cancelled this time totals 97402605 shares accounting for 1.0439% of the
company's total share capital (9330600931 shares) before the repurchase and cancellation. On August 15 2024
the aforementioned restricted stocks have completed the repurchase and cancellation procedures at the Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited. As of the reporting day the Company
does not have any outstanding restricted shares.For details please refer to the Announcement on Terminating the Implementation of the 2021 Restricted Stock
Plan and Repurchasing and Canceling Relevant Restricted Shares and the Announcement on the Completion of
Repurchase and Cancellation of Restricted Stocks Related to the 2021 Restricted Stock Plan published by the
175Hikvision 2024 Annual Report
Company on www.cninfo.com.cn on April 20 2024 and August 17 2024.The Company carries out accounting treatment related to the restricted stock plan in accordance with the
requirements of accounting standards such as "Enterprise Accounting Standards No. 11 — Share-based Payment".For specific details please refer to the notes to the financial statements (XII. Share-based payments).Equity incentives obtained by the directors and senior management of the Company
√Applicable □Inapplicable
Unit: Share
Price for
Restricted
Shares vested in Shares newly restricted Restricted
Shares held at
Name Title the current granted in the shares granted Shares held at
the beginning
period current period (RMB per period-end
of the period
share)
Xu Peng Board Director CEO 70000 70000 - - 0
Senior Deputy General
Pu Shiliang 90000 90000 - - 0
Manager
Senior Deputy General
Xu Ximing 90000 90000 - - 0
Manager
Senior Deputy General
Huang Fanghong 80000 80000 - - 0
Manager
Senior Deputy General
Jin Yan Manager Person in 80000 80000 - - 0
Charge of Finance
Total -- 410000 410000 -- -- 0
Note: During the reporting period the 2021 Restricted Stock Plan were completely repurchased and canceled among which senior
managers collectively repurchased and canceled to 410000 shares. As of the reporting day the Company does not have any
outstanding restricted shares.Assessment and incentive mechanism for the senior management
The Company has established a fairly sophisticated mechanism on employees' evaluation and incentive
restraint and has established a fair and transparent appraisal and incentive mechanism on senior management
personnel and other various level management personnel and employees. The Company's Board of Directors has
carried out annual appraisals of senior management members mainly based on annual target achievement index.The Board is responsible for appraisals of the general manager on the general manager's duty capacity and
performance of operation; and the general manager carried out appraisals of other senior management members on
their operational management and implementation of relevant assignments. In 2024 senior management personnel
176Hikvision 2024 Annual Report
carried out their duties diligently with good performance. In the face of complex and changing business environment
better of internal management improve operating efficiency and continue to promote the steady development of the
Company.
2. The Implementation of Employee Stock Incentive Plan
□Applicable √Inapplicable
3. Other Incentive Plans
□Applicable √Inapplicable
XII. Construction and Implementation of Internal Control System during the Reporting Period
1. Construction and Implementation of Internal Control
The Company has established a scientifically designed and effectively implemented internal control system
and continuously strengthen internal audit supervision in accordance with the Basic Standard for Enterprise
Internal Control and its associated Guidelines and other internal control supervision requirements. The Audit
Committee under the Board of Directors and the Board of Supervisors supervise and comment the Company's
implementation of internal control and the management is responsible for organizing and leading the daily internal
controls of the Company.The Audit Committee under the Board of Directors inspects and supervises the scientificity rationality
effectiveness and implementation of the Company's internal control system. At the same time the Audit Committee
has organized special work meetings to follow up on the implementation of major matters by the financial center
and internal audit department and puts forward relevant requirements on the normativeness of internal control of
the Company. The Company has set up an internal audit department under the Audit Committee of the Board of
Directors which is equipped with full-time personnel to independently carry out internal audits supervise and
inspect the effectiveness and rationality of internal control. The internal audit department is accountable and reports
to the Audit Committee and reports on their work regularly. The internal audit department audits the risk profiles
of the Company's business areas according to an annual audit plan. It highlights internal control defects and gives
rational suggestions and standardizes and supervises the operation and management of the Company. Through the
operation analysis and evaluation of its internal control system the Company has effectively mitigated operational
177Hikvision 2024 Annual Report
and management risks and facilitated the achievement of internal control objectives.During the reporting period the Company continuously strengthened its self-evaluation and self-improvement
on internal control. It continued to improve and thoroughly implement internal control in its departments and
strengthened the awareness of compliance management to ensure the effective implementation of the internal
control system improve the standard of the Company's operations and promote the healthy and sustainable
development of the Company. For more details please refer to the 2024 Internal Control Self-Evaluation Report
disclosed by the Company on CNINFO website (www.cninfo.com.cn).
2. Any Significant Internal Control Deficiencies during the Reporting Period
□ Yes √ No
XIII. The Company's Management and Control of Subsidiaries during the Reporting Period
In strict adherence to the relevant laws and regulations such as the Authorization Management System and the
regulations and normative documents of regulatory authorities the Company considers and approves proposals on
the acquisition and cancellation the registration of new subsidiaries and exercises management powers over major
matters of the subsidiaries in accordance with the requirements regarding assets control over the subsidiaries and
the standard operations of the Company. At the same time subsidiaries shall provide timely complete and accurate
information to the Company such as operating results financial position and operating prospects so that the
Company can conduct scientific decision-making supervision and coordination.During the reporting period the Company established four domestic subsidiaries and three overseas
subsidiaries and gained actual control of 1 subsidiary through entrusted management agreements. All of this result
in changes in the scope of its consolidation scope. For details please refer to changes in the consolidation scope in
Note (VI) to the financial statements.XIV. Self-evaluation Report on Internal Control or Internal Control Audit Report
1. Self-evaluation Report on Internal Control
Disclosure date of full text of self-evaluation report on internal control April 19 2025
Disclosure index of full text of self-evaluation report on internal control www.cninfo.com.cn
Proportion of assets evaluated in total assets 100.00%
178Hikvision 2024 Annual Report
Proportion of revenue evaluated in total revenue per consolidated financial statement 100.00%
Recognition standard of deficiencies
Nature Financial report level Non-financial report level
Significant deficiency:
A deficiency or a combination of deficiencies in internal control
may prevent significant errors in financial reports from being
identified or prevented e.g.:
A. Invalid internal control environment; Internal control deficiencies at non-
B. Fraud of directors supervisors and senior management financial report level are mainly identified
personnel on the financial report ; by the likelihood of occurrence and the
C. Significant errors identified by external auditors but not extent of impacts on operating effective in
identified during the Company is operating; business.D. Invalid supervision of audit committee and internal audit
Significant deficiency: the high likelihood
system;
leading to significant reduction of working
E. Other deficiencies that may lead to the wrong judgement of
efficiency or significant increase of
financial statement reporter.uncertainty or significant deviation from
Important deficiency: the expected target;
Qualitative criteria A deficiency or a combination of deficiencies in internal control Important deficiency: a higher likelihood
may prevent errors in financial report from being identified or leading to remarkable reduction of
prevented although such deficiency is not significant but working efficiency or remarkable increase
require attention of the Board and Management e.g.: of uncertainty or remarkable deviation
A. Application of accounting policies does not follow the from the expected target;
enterprise accounting standard; Normal deficiency: a low likelihood
B. No internal control systems for fraud; leading to reduction of working efficiency
C. No control systems or system not effective for unusual or or increase of uncertainty or deviation
special transactions or no compensatory relevant control; from the expected target;
D. One or more deficiencies which prevent the preparation of
true and fair financial statements.Normal deficiency: Not significant and not important
deficiency.Significant deficiency: direct losses of
Significant deficiency: potential errors 5% or more of total
assets is 5% or more of total profits
profits
Important deficiency: direct losses of
Important deficiency: potential errors 2% or more but below
Quantitative criteria assets is2% or more but below 5% of total
5% of total profits
profits
Normal deficiency: potential errors is 2% or less of total
Normal deficiency: direct losses of assets
profits
is below 2% of total profits
Number of significant deficiencies in financial report level 0
Number of significant deficiencies in non-financial report level 0
Number of important deficiencies in financial report level 0
Number of important deficiencies in non-financial report level 0
2. Internal Control Audit Report
√Applicable □Inapplicable
179Hikvision 2024 Annual Report
Deliberation Opinion Paragraph in Internal Control Audit Report
We believe that Hangzhou Hikvision Digital Technology Co. Ltd. maintained effective internal control over financial reporting in
all material aspects as of December 31st 2024 in accordance with the Basic Standard for Enterprise Internal Control and other
related regulations.Disclosure of internal control audit
Disclose
report
Disclosure date of the full text of
April 19 2025
the internal control audit report
Disclosure index of full text of
www.cninfo.com.cn 2024 Internal Control Audit Report
internal control audit report
Internal control audit opinion Standard unqualified audit opinion
Whether there are material
No
weakness of non-financial report
Whether the accounting firm issued an internal control audit report with a non-standard opinion
□ Yes √ No
Whether the internal control audit report issued by the accounting firm is consistent with the opinion of the self-evaluation report from
the Board of Directors
√ Yes □No
180Hikvision 2024 Annual Report
Section V Environmental and Social Responsibility
I. Significant Environmental Issues
Whether the Company or any of its subsidiaries should be categorized as a critical pollutant enterprises published
by environmental protection department
□Yes √No
II. Social Responsibilities
For details please refer to the Company's 2024 Environment Social and Governance Report disclosed on CNINFO
(www.cninfo.com.cn).III. The Achievements of Poverty Alleviation and Rural Revitalization
For details please refer to the Company's 2024 Environment Social and Governance Report disclosed on CNINFO
(www.cninfo.com.cn).
181Hikvision 2024 Annual Report
Section VI Significant Events
I. Performance of Commitments
1. Complete and Incomplete Commitments of the Company and Its Actual Controller Shareholders Related parties Acquirers and Other Related
Parties for the Commitments by the End of the Reporting Period.√ Applicable □ Inapplicable
Date of Term of
Commitments Giver of commitments Commitment type Details of commitments Performance
commitments commitments
1. Commitments in non-competition within the industry: In the period as
controlling shareholders of the Hikvision CETHIK and its controlling
subsidiaries (excluding Hikvision and its subsidiaries the same below) will not
be engaged in such business that is competitive to Hikvision and its
subsidiaries directly or indirectly.
2. Commitments in decrease and regulation of transactions with related party:
Zhejiang Haikang Group Co. Ltd. (hereinafter referred to as Haikang Group
or actual controller) as the controlling shareholders of Hangzhou Hikvision
Commitments in Commitments Digital Technology Co. Ltd. (hereinafter referred to as "Hikvision" or "Listed
offering regarding horizontal Company") are committed as below for the transactions with Hikvision:
October 29 Strict
documents or CETHIK competition and (1) Haikang Group will not make use of the controlling power to offer more Long-term
2013 performance
shareholding related party favorable conditions to Hikvision than those to any independent third party in
alterations transactions any fair market transactions in the cooperation with Hikvision.
(2) Haikang Group will not make use of the controlling power to obtain the
prior right to complete the transaction with Hikvision.
(3) Haikang Group will not deal with Hikvision in not fair terms comparing to
the market prices to prejudice the Company's interests.For unavoidable related transactions the Company will observe the
principles of justice and fairness to determine prices according to the market
on the basis of equality voluntarily. The Company will obey the Articles of
Association and other regulatory documents related to the avoiding of issues
182Hikvision 2024 Annual Report
Date of Term of
Commitments Giver of commitments Commitment type Details of commitments Performance
commitments commitments
about related transactions. The related transactions will go through approval
procedures in accordance with related rules and complete legal procedures
fulfilling the information disclosure obligations in respect to the related
transactions
3. Commitment to the maintenance of the independence of the listed Company
3.1 Commitment to Personnel Independence of the listed Company
(1) Commitment that our general manager deputy general manager chief
financial officer secretary of the board and other members of senior
management shall not assume any positions other than directors and
supervisors or get any remuneration in CETHIK and/or any of its controlled
entities; (2) Commitment in keeping the management of labor human
resources and issues related to remuneration of the listed Company
independent from that of CETHIK;
3.2 Commitment to the independence of the asset of the listed Company
(1) Commitment to independent and complete asset of the listed Company
(2) Commitment free of unlawful use of cash and asset of the listed Company
by the controlling shareholders
3.3 Commitment to financial independence of the listed Company
(1) Commitment to an independent finance department with a team and
accounting system;
(2) Commitment to a regulated independent accounting system and financial
management system of the branches and subsidiaries
(3) Commitment to maintaining accounts with banks independently of and not
sharing any bank account with our controlling shareholders
(4) Commitment that the financial staff shall not assume any positions in
CETHIK
(5) Commitment to paying taxes independently according to the law;
(6) Commitment to implementing financial decisions independently
3.4 The Company has set up an independent organizational structure which
maintains its independent operations which is independent from that of
CETHIK.
3.5 Commitment to business Independence of the listed Company
(1) The Company has the asset personnel aptitude and management capability
183Hikvision 2024 Annual Report
Date of Term of
Commitments Giver of commitments Commitment type Details of commitments Performance
commitments commitments
for independent and complete business operation. The Company has the ability
to operate independently in the market.
(2) Commitment in independence in both business and operations
4. Regarding plans for the development and relevant commitment for the listed
Company Haikang Group has committed as below for the subsequent
development of Hikvision according to the Securities Acts and relevant laws
and rules
4.1 Currently the Company has no plan to change or make significant
adjustments for principal business in the next 12 months;
4.2 Currently the Company has no plan to sell merge or operate with another
Company for the assets and business of the listed Company or its subsidiaries
in the next 12 months.
4.3 Currently the Company has no plan to alter the Board of the Directors and
senior management and no agreement with other shareholders about the
appointment and removal of the directors or senior management. The team of
Board of Directors and senior management will remain unchanged for the
foreseeable future.
4.4 Currently the Company has no plan to make significant changes to the
Articles of Association for the listed Company.
4.5 Currently the Company has no plan to make significant changes to the
existing employee recruitment for the listed Company.
4.6 Currently the Company has no plan to make significant changes for the
dividend distribution plan for the listed Company.
4.7 Currently the Company has no plan to make significant changes for
business and organizational structure for the listed Company.Commitments in Hangzhou Weixun Equity Share restriction During Hu Yangzhong Wu Weiqi Jiang Haiqing Zhou Zhiping Xu Lirong May 17 Strict
Long term
Initial Public Investment Partnership commitment Cai Dingguo He Hongli Zheng Yibo Hu Dan Jiang Yufeng Liu Xiang 2010 performance
184Hikvision 2024 Annual Report
Date of Term of
Commitments Giver of commitments Commitment type Details of commitments Performance
commitments commitments
Offering or re- (Limited Partnership) Wang Ruihong Chen Junke's tenure of the Company's Board of Directors
financing
supervisors and senior management personnel the annual transfer of
Hikvision's total shares should not exceed 25% of total number of shares held
under Weixun; within 6 months after abovementioned personnel's demission
should not transfer Hikvision's shares held under Weixun.During Hu Yangzhong Wu Weiqi Gong Hongjia's tenure of the Company's
Hangzhou Pukang Equity Board of Directors supervisors and senior management personnel the annual
Share restriction May 17 Strict
Investment Partnership transfer of Hikvision's total shares should not exceed 25% of total number of Long term
commitment 2010 performance
(Limited Partnership) shares held under Pukang; within 6 months after abovementioned personnel's
demission should not transfer Hikvision's shares held under Pukang.The Company's directors
supervisors and executive:
HuYangzhong Wu Weiqi
During their tenure of the Company's Board of Directors supervisors and
Jiang Haiqing Zhou
Share restriction senior management personnel the annual shares transfer should not exceed May 17 Strict
Zhiping Xu Lirong Cai Long term
commitment 25% of total number of shares held under Weixun; within 6 months after their 2010 performance
Dingguo He Hongli Zheng
demission they should not transfer their shares held under Weixun.Yibo Hu Dan Jiang
Yufeng Liu Xiang Wang
Ruihong Chen Junke
During their tenure of the Company's Board of Directors supervisors and
Directors executive officers
Share restriction senior management personnel the annual shares transfer should not exceed May 17 Strict
of the Company: Hu Long term
commitment 25% of total number of shares held under Pukang; within 6 months after their 2010 performance
Yangzhong Wu Weiqi
demission they should not transfer their shares held under Pukang.The Company's director During Gong Hongjia's tenure of the Company's Board of Directors
Share restriction Strict
Gong Hongjia's spouse supervisors and senior management personnel Chen's annual shares transfer May 17 Long-term
commitment performance
Chen Chunmei should not exceed 25% of total number of shares held under Pukang; within 6 2010
185Hikvision 2024 Annual Report
Date of Term of
Commitments Giver of commitments Commitment type Details of commitments Performance
commitments commitments
months after the demission of Gong Hongjia Chen should not transfer her
shares held under Pukang.To avoid any loss of the Company and other shareholders arising from any
China Electronics Commitment to
competing business China Electronics Technology Group Corporation the September Strict
Technology Group avoid horizontal Long term
actual controller of the Company issued Letters of non-competition on 18 18 2008 performance
Corporation competition
September 2008.Gong Hongjia; Hangzhou
Weixun Equity Investment To avoid any loss of the Company and other shareholders arising from any
Partnership (Limited competing business Gong Hongjia Hangzhou WeiXun I Equity Investment
Commitment to Partnership (Limited Partnership) ZheJiang Orient Holdings Co. Ltd. and Partnership); Hangzhou Strict
avoid horizontal Hangzhou Pukang Equity Investment Partnership (Limited Partnership) the Long term
Pukang Equity Investment
competition promoters of the Company issued Commitment Letters of non-competition in
July 10 2008 performance
Partnership (Limited the same industry on July 10 2008.Partnership); ZheJiang
Orient Holdings Co. Ltd.Within 36
Arrangement on trading restriction and commitement to voluntarily restrict
months from
shares relating to the spin-off of EZVIZ Network to be listed on the Science
Other
and Technology Innovation Board for details please refer to the appendix Ⅵ the date of
commitments December Strict
of the Prospectus on the Initial Public Share Offering and Listing on the STAR issuing and
(commitments Commitment 28 2022 performance
Market of the Shanghai Stock Exchange of Hangzhou EZVIZ Network Co.relating to the relating to the spin- listing of
Ltd. published by EZVIZ Network on the website of Shanghai Stock Exchange
spin-off of Hangzhou Hikvision Digital off of EZVIZ EZVIZ (www.sse.com.cn): commitments relating to investor protection.EZVIZ Network Network to be listed
Technology Co. Ltd. Network
to be listed on on the Science and
the Science and Technology Commitment relating to the intention to hold shares and the intention to reduce Within 2 years
Technology Innovation Board holdings of shares of EZVIZ Network of the spin-off of EZVIZ Network to be
Innovation listed on the Science and Technology Innovation Board for details please refer
from the end
December Strict
Board) to the appendix Ⅵ of the Prospectus on the Initial Public Share Offering and date of shares 28 2022 performance
Listing on the STAR Market of the Shanghai Stock Exchange of Hangzhou restriction
EZVIZ Network Co. Ltd. published by EZVIZ Network on the website of
period of
Shanghai Stock Exchange (www.sse.com.cn): commitments relating to investor
186Hikvision 2024 Annual Report
Date of Term of
Commitments Giver of commitments Commitment type Details of commitments Performance
commitments commitments
protection. EZVIZ
Network
Commitments and initiatives to stabilize the stock price of EZVIZ Network to
repurchase shares of EZVIZ Network to guarantee no fraud in listing of EZVIZ
Network to make compensation for diluted spot return to undertake
compensation or liability in accordance with the law to have constraints for
failing to fulfill commitments to avoid intra-industry competition to regulate
and reduce related party transactions to avoid capital occupation and to keep December Strict
Long term
system independent after the spin-of of EZVIZ Network to be listed on the 28 2022 performance
Science and Technology Innovation Board. For details please refer the
Prospectus on the Initial Public Share Offering and Listing on the STAR Market
of the Shanghai Stock Exchange of Hangzhou EZVIZ Network Co. Ltd.published by EZVIZ Network on the website of Shanghai Stock Exchange
(www.sse.com.cn): commitments relating to investor protection.Whether the
commitments is Yes
fulfilled in time
187Hikvision 2024 Annual Report
2. Where Any Profit Forecast Was Made for Any of the Company's Assets or Projects and the Current
Reporting Period Is Still Within the Forecast Period the Company Shall Explain Whether the
Performance of the Asset or Project Reaches the Profit Forecast and Why:
□ Applicable √ Inapplicable
II. The Company's Funds Used by the Controlling Shareholder or Other Related Parties for
Non-operating Purposes
□ Applicable √ Inapplicable
No such case during the current reporting period.III. Illegal Provision of Guarantees for External Parties
□ Applicable √ Inapplicable
No such case in the current reporting period.IV. Explanation Given by the Board of Directors regarding the Latest "Non-standard Auditor's
Report"
□ Applicable √ Inapplicable
V. Explanation Given by the Board of Directors Supervisory Committee and Independent
Directors (if applicable) regarding the "Non-standard Auditor's Report" Issued by the CPA
Firm for the Current Reporting Period
□ Applicable √ Inapplicable
VI. For Changes in Accounting Policies Accounting Estimates or Correction of Significant
Accounting Errors Compared with the Financial Report for the Prior Year
√ Applicable □Inapplicable
For details please refer to the Note (III) 35.VII. Explanation for Changes in Scope of the Consolidated Financial Statements as Compared
to the Financial Report for the Prior Year
√ Applicable □ Inapplicable
During the reporting period the Company established four domestic subsidiaries and three overseas
188Hikvision 2024 Annual Report
subsidiaries and gained actual control of 1 subsidiary through entrusted management agreements. All of this result
in changes in the scope of its consolidation scope. For details please refer to changes in the consolidation scope in
Note (VI) to the financial statements.VIII. Engagement and Disengagement of the CPA firm
CPA firm engaged at present
Name of the domestic CPA firm Deloitte Touche Tohmatsu Certified Public Accountants LLP
Remuneration for the domestic CPA firm (RMB'0000) 440
Consecutive years of the audit service provided by the
9
domestic CPA firm
Name of the certified public accountants from the
Chen Yan Liu Ying
domestic CPA firm
Consecutive years of the audit service provided by the Chen Yan has provided audit service for 2 year;
certified public accountants from the domestic CPA
firm Liu Ying has provided audit service for 2 year.Whether the CPA firm was changed in the current period
□ Yes √ No
Whether to reappoint a CPA firm during the audit
□ Yes √ No
Engagement of internal control audit CPA firm financial advisor or sponsor
√Applicable □ Inapplicable
During the reporting period the Company hired Deloitte Touche Tohmatsu Certified Public Accountants LLP
as the internal control audit accounting firm and paid a total of RMB 630000 of internal control audit fees during
the period.IX. Delisting after Disclosure of this Annual Report
□ Applicable √ Inapplicable
X. Bankruptcy and Restructuring
□ Applicable √ Inapplicable
No such case during the reporting period.
189Hikvision 2024 Annual Report
XI. Material Litigations and Arbitration
□ Applicable √ Inapplicable
The Company had no material litigation or arbitration during the current reporting period.XII. Punishments and Rectifications
□ Applicable √ Inapplicable
No such case during the reporting period.XIII. Integrity of the Company and its Controlling Shareholders and Actual Controllers
□ Applicable √ Inapplicable
190Hikvision 2024 Annual Report
XIV. Significant Related-party Transaction
1. Related-party Transactions Arising from Routine Daily Operations
√ Applicable □Inapplicable
Pricing Proportion
Whether
Type of Content of principles Related party to the Approved
exceed the Settlement Disclosure Disclosure
Related party Relationship related related for related transaction amount of trading quota
approved method date reference
transaction transaction party amount(0'000 RMB) similar (0'000 RMB)
quota
transactions transactions.Subsidiaries or Under the common
Payment on
research institutes control of the Company's 189782.68 3.89% 350000.00 No
Purchasing delivery
of CETC actual controller Reference
of raw
Joint ventures held by the market Payment on
Joint ventures materials 765.20 0.02% 2200.00 No April 20
Company Procurement price delivery
receiving 2024
Associated Associated companies agreed by Payment on
services and 28161.30 0.58% 61900.00 No
companies held by the Company both parties delivery Announcement
others
Other related Payment on on the forecast
See Note 1 for details 118964.55 2.44% 200200.00 No
parties delivery of daily
Subsidiaries or Under the common related-party
Payment on
research institutes control of the Company's Providing 21928.03 0.24% 50000.00 No transactions in
delivery
of CETC actual controller. services Reference 2024 (No.Joint ventures held by the selling market Payment on 2024-014)
Joint ventures 3487.95 0.04% 18600.00 No April 20
Company Sales products price delivery
2024
Associated Associated companies commercial agreed by Payment on
3447.41 0.04% 15700.00 No
companies held by the Company goods and both parties delivery
Other related others Payment on
See Note 1 for details 2200.44 0.02% 10300.00 No
parties delivery
191Hikvision 2024 Annual Report
Pricing Proportion
Whether
Type of Content of principles Related party to the Approved
exceed the Settlement Disclosure Disclosure
Related party Relationship related related for related transaction amount of trading quota
approved method date reference
transaction transaction party amount(0'000 RMB) similar (0'000 RMB)
quota
transactions transactions.Reference
Renting
Subsidiaries or Under the common market April 20
house from Based on
research institutes control of the Company's Lease price 167.06 0.37% 500.00 No 2024
related contract
of CETC actual controller. agreed by
parties
both parties
Total 368904.61 - 709400 - - - -
Details on significant sales return None
Total amount of related transactions projected based on The aforementioned estimated amount includes the additional amount that was added during the actual execution. According to the
different categories and the actual performance during the relevant rules and the Company's Management System of Related Transaction this additional amount has been approved by the
current reporting period (if any) Company's chairman.Reasons on significant difference between trading price and
Not applicable
market referencing price (if applicable)
Note 1: Enterprises controlled jointly controlled or serving as directors or senior management personnel by affiliated natural persons of the Company (including
directors supervisors senior management of the Company shareholders holding more than 5% of the shares of the Company and their close family members).Note 2: The data shown in the totals may differ slightly from the sum of the relevant individual data due to rounding.
192Hikvision 2024 Annual Report
2. Related-party Transactions regarding Purchase and Disposal of Assets or Equity
□Applicable √Inapplicable
No such case in the reporting period.
3. Significant Related-party Transactions Arising from Joint Investments on External Parties
□Applicable √Inapplicable
No such case in the reporting period.
4. Related Credit and Debt Transactions
□ Applicable √Inapplicable
No related-parties' creditor's rights or debts during the reporting period.
5. Transactions with Related Financial Companies
√Applicable □Inapplicable
Deposit business
Amount incurred (0000 RMB)
Maximum Opening
Closing
daily deposit Deposit interest balance Total
Related Party Relationship Total deposit Balance (0000
limit (0000 rate range (restated) withdrawal
amount for the RMB)
RMB) (0000 RMB) amount for the
current period
current period
(0000 RMB)
(0000 RMB)
Under the
common
CETC Finance control of the
1643272.240.1%-1.75%401364.74538540.57539886.94400018.37
Co. Ltd. Company's
actual
controller
Loan business
Related Party Relationship Amount incurred (0000
Opening RMB)
Loan Quota Loan Interest Closing
Balance Total Loan Total Balance
(0000 RMB) Rate Range
(0000 RMB) Amount for Repayment
(0000 RMB)
the Current Amount for
Period (0000 the Current
193Hikvision 2024 Annual Report
RMB) Period (0000
RMB)
Under the
common
CETC Finance control of the
500000.002.8%-15000.00-15000.00
Co. Ltd. Company's
actual
controller
Credit or other financial services
Total Amount Actual amount incurred
Related Party Relationship Business Type
(0000 RMB) (0000 RMB)
CETC Finance Co. Ltd. Under the common control of the Other financial
600000.00415600.00
Company's actual controller services
Note: 1. The above amount is the amount of entrusted loans issued by the Company to its subsidiaries through China Electronics
Technology Finance Co. Ltd. during the year.
2. The Company's renewable credit line with CETC Finance Co. Ltd. in the current year shall not exceed RMB 5 billion (inclusive)
with actual utilized amount reaching RMB 150 million all of which are loan businesses (see the table above).
6. Transactions between the Financial Company Controlled by the Company and Related Parties
□ Applicable √Inapplicable
7. Other Significant Related Party Transactions
□Applicable √Inapplicable
There is no other significant related party transactions during the reporting period.XV. Significant Contracts and Their Execution
1. Trusteeship Contracting and Leasing
(1) Trusteeship
□ Applicable √ Inapplicable
No such case in the reporting period.
(2) Contracting
□ Applicable √ Inapplicable
No such case in the reporting period.
(3) Leasing
□Applicable √Inapplicable
No such case in the reporting period.
194Hikvision 2024 Annual Report
2. Significant Guarantees
√Applicable □ Inapplicable
Unit: RMB'0000
Guarantees provided by the Company to its subsidiaries
Guarantee
Disclosure date of for a
Guarantee Actual Actual guaranteed Type of Fulfilled
Guaranteed party announcement of Guarantee expiration date related
cap occurrence date amount guarantee or not
the guarantee cap party or
not
Joint
Hangzhou Hikvision Technology Ltd. April 20 2024 1088400.00 July 26 2021 294596.32 May 9 2029 No No
guarantee
LuoPu HaiShi DingXin Electronic Joint
April 20 2024 29000.00 March 26 2019 19520.00 March 3 2025 Yes No
Technology Ltd. guarantee
PiShan HaiShi YongAn Electronic Joint
April 20 2024 28000.00 M arch 26 2019 18678.00 March 27 2025 Yes No
Technology Ltd. guarantee
Joint
Moyu HaiShi Electronic Technology Ltd. April 20 2024 24000.00 M arch 26 2019 15440.00 March 27 2025 Yes No
guarantee
Hangzhou Hikvision System Technology Joint
April 20 2024 80000.00 M arch 23 2021 13351.44 March 31 2026 No No
Ltd. guarantee
Urumqi HaiShi Xin'An Electronic Joint
April 20 2024 37000.00 M arch 26 2019 9542.00 January 13 2025 Yes No
Technology Ltd. guarantee
October 23 Joint
Hangzhou Hikvision Electronic Ltd. April 20 2024 21500.00 4200.00 March 31 2026 No No
2023 guarantee
Joint
Nanjing Hikvision Digital Technology Ltd. April 20 2024 11000.00 June 30 2022 3853.70 July 31 2025 No No
guarantee
Joint
Chongqing Hikvision Technology Ltd. April 20 2024 25000.00 May 10 2024 2400.00 March 31 2026 No No
guarantee
195Hikvision 2024 Annual Report
Guarantees provided by the Company to its subsidiaries
Guarantee
Disclosure date of for a
Guarantee Actual Actual guaranteed Type of Fulfilled
Guaranteed party announcement of Guarantee expiration date related
cap occurrence date amount guarantee or not
the guarantee cap party or
not
Chongqing Hikvision System Technology Joint
April 20 2024 2000.00 March 30 2023 173.95 July 24 2025 No No
Ltd. guarantee
Yutian HaiShi Meitian Electronic Joint
April 20 2024 30000.00 M arch 26 2019 - December 23 2024 Yes No
Technology Ltd. guarantee
September 29 Joint
Xi'an Hikvision Digital Technology Ltd. April 20 2024 18000.00 - July 31 2025 Yes No
2022 guarantee
December 4 Joint
Wuhan Haorong Technology Ltd. April 20 2024 33000.00 - July 31 2025 Yes No
2023 guarantee
October 18 Joint
Shijiazhuang Hikvision Technology Ltd. April 20 2024 12000.00 - July 31 2025 Yes No
2023 guarantee
Hikvision International Co.Limited April 20 2024 85000.00 Not happened during the reporting period
HIKVISION TECHNOLOGY PTE. LTD April 20 2024 10000.00 Not happened during the reporting period
Zhengzhou Hikvision Digital Technology
April 20 2024 6100.00 Not happened during the reporting period
Ltd.Chengdu Hikvision Digital Technology Ltd. April 20 2024 6000.00 Not happened during the reporting period
Nanchang Hikvision Digital Technology
April 20 2024 4500.00 Not happened during the reporting period
Ltd.Hefei Hikvision Digital Technology Ltd. April 20 2024 3500.00 Not happened during the reporting period
Hikvision Digital Technology (Shanghai)
April 20 2024 3000.00 Not happened during the reporting period
Ltd.Fuzhou Hikvision Digital Technology Ltd. April 20 2024 2500.00 Not happened during the reporting period
196Hikvision 2024 Annual Report
Guarantees provided by the Company to its subsidiaries
Guarantee
Disclosure date of for a
Guarantee Actual Actual guaranteed Type of Fulfilled
Guaranteed party announcement of Guarantee expiration date related
cap occurrence date amount guarantee or not
the guarantee cap party or
not
Wuhan Hikvision Technology Ltd. April 20 2024 1000.00 Not happened during the reporting period
Total guarantee cap for subsidiaries approved during the Total actual guarantee amount for
1560500.00 s ubsidiaries during the reporting 1195187.89
reporting period (B1)
period (B2)
Total actual guarantee balance for
Total approved guarantee cap for subsidiaries at the end of the
1560500.00 s ubsidiaries at the end of the 381755.41
reporting period (B3)
reporting period (B4)
Guarantees provided by the Company's subsidiary to another subsidiary
Disclosure date of Guarantee
Guarantee Actual Actual guaranteed Type of Fulfilled
Guaranteed party announcement of Guarantee expiration date for a
cap occurrence date amount guarantee or not
the guarantee cap related
Hangzhou Haikang Machine Intelligence Joint
April 20 2024 23000.00 June 13 2023 2373.92 2025.04.12 No No
Ltd. guarantee
Hangzhou Hikmicro Intelligent Technology November 2 Joint
April 20 2024 11000.00 1935.15 2025.04.12 No No
Ltd. 2023 guarantee
Hangzhou Haikang Intelligent Technology Joint
April 20 2024 32000.00 M arch 14 2022 1297.51 2026.02.27 No No
Ltd. guarantee
August 29 Joint
Hikrobot Europe B.V. April 20 2024 5000.00 515.82 2026.07.19 No No
2024 guarantee
September 11 Joint
Chongqing EZVIZ Electronic Ltd. April 20 2024 17000.00 - 2024.09.11 Yes No
2023 guarantee
Zhangjiang Hikfire Technology Ltd. April 20 2024 10000.00 Not happened during the reporting period
197Hikvision 2024 Annual Report
Guarantees provided by the Company to its subsidiaries
Guarantee
Disclosure date of for a
Guarantee Actual Actual guaranteed Type of Fulfilled
Guaranteed party announcement of Guarantee expiration date related
cap occurrence date amount guarantee or not
the guarantee cap party or
not
Hikrobot Korea Limited April 20 2024 5000.00 Not happened during the reporting period
Wuhan Hikfire Technology Ltd. April 20 2024 3000.00 Not happened during the reporting period
Hangzhou EZVIZ Software Ltd. April 20 2024 1000.00 Not happened during the reporting period
Total actual guarantee amount for
Total guarantee cap for subsidiaries approved during the
107000.00 subsidiaries during the reporting 32322.40
reporting period (C1)
period (C2)
Total actual guarantee balance for
Total approved guarantee cap for subsidiaries at the end of the
107000.00 subsidiaries at the end of the 6122.40
reporting period(C3)
reporting period(C4)
The total amount of Company's guarantees (that is the total of the first three items)
Total actual guarantee amount
Total guarantee cap approved during the reporting
1667500.00 during the reporting 1227510.29
period(A1+B1+C1)
period(A2+B2+C2)
Total actual guarantee balance at
Total approved guarantee cap at the end of the reporting
1667500.00 the end of the reporting 387877.81
period(A3+B3+C3)
period(A4+B4+C4)
Portion of the total actual guarantee (A4+B4+C4) amount in net
4.81%
assets of the Company
Of which:
The balance of guarantee for shareholders actual controllers and
0
their affiliates. (D)
198Hikvision 2024 Annual Report
Guarantees provided by the Company to its subsidiaries
Guarantee
Disclosure date of for a
Guarantee Actual Actual guaranteed Type of Fulfilled
Guaranteed party announcement of Guarantee expiration date related
cap occurrence date amount guarantee or not
the guarantee cap party or
not
Amount of debt guarantees provided directly or indirectly for
367752.42
entities with a liability-to-asset ratio over 70% (E)
Total amount of guarantee exceeding 50% of net assets (F) 0
Total guarantee amount of the above-mentioned 3 kinds of
367752.42
guarantees (D+E+F)
Disclosure regarding outstanding guarantee contracts during the
reporting period where guarantee obligations have been triggered
None
or there is evidence indicating potential joint and several liability
(if applicable).Disclosure regarding external guarantees provided in violation of
None
established procedures (if applicable).
3. Entrusted Others to Manage Cash Assets
(1) Entrusted financial management
□ Applicable √ Inapplicable
No such case during the reporting period
(2) Entrusted loan management
□ Applicable √ Inapplicable
No such case during the reporting period
199Hikvision 2024 Annual Report
4. Other Significant Contracts
□ Applicable √ Inapplicable
No such case during the reporting period
XVI. Other Significant Events
√ Applicable □ Inapplicable
1. During the reporting period the Company re-elected the board of directors supervisors and senior
management personnel.On August 2 2024 the company convened the 1st First Extraordinary General Meeting of Shareholders in
2024 electing the 6th Board of Directors and 6th Board of Supervisors.
The 6th Board of Directors consists of 9 members: 5 Non-independent Directors Mr. Hu Yangzhong Mr. Fu
Baijun Mr. Xu Lixing Mr. Xu Peng Mr. Wang Qiuchao) and 4 Independent DirectorsMr. Wu Xiaobo Mr. Hu
Ruimin Mr. Lv Changjiang (Accounting Professional) Mr. Tan Xiaofen.The 6th Board of Supervisors comprises 3 members: Mr. Lu Jianzhong Ms. Huang Xing and Mr. Pan Jia
(Employee Representative Supervisor elected through the Employee Representative Assembly).
On August 2 2024 the Company held the 1st Meeting of the 6th Board of Directors electing Mr. Hu Yangzhong
as Chairman of the Bboard of Directors and appointing Mr. Xu Peng as General Manager along with other senior
management personnel.On August 2 2024 the company convened the 1st Meeting of the 6th Board of Supervisors electing Mr. Lu
Jianzhong as Chairman of the Board of Supervisors.On October 25 2024 the company held the 3rd Meeting of the 6th Board of Directors appointing Mr. Feng Wei
as Senior Deputy General Manager and concurrently Board Secretary.For details please refer to Announcement on Resolutions of the 1st Extraordinary General Meeting of 2024
Announcement on Resolutions of the 1st Meeting of the 6th session of the Board of Directors Announcement on the
Election of Employee Representative Supervisors for the 6th Supervisory Board Announcement on Resolutions of
the 1st Meeting of the 6th session of the Board of Supervisors and Announcement on Resolutions of the 3st Meeting
of the 6th session of the Board of Directors which were published by the Company on www.cninfo.com.cn on
August 3 2024 and October 25 2024.
2. The Company's controlling shareholder and persons acting in concert have completed the plan to
200Hikvision 2024 Annual Report
increase their shareholdings.The Company received a notice from China Electronics Technology HIK Group Ltd. (hereinafter referred to as
"CETHIK") the Company's controlling shareholder and its concerted actor CETC Investment Holdings Co. Ltd.(hereinafter referred to as "CETC Investment") on October 18 2024 that CETHIK and CETC Investment intended
to increase its shareholdings of the Company's shares through the trading system of the Shenzhen Stock Exchange
through centralized bidding within 6 months from October 19 2024. The total amount of the increased
shareholdings by CETHIK would not be less than RMB200 million and not more than RMB300 million while the
total amount of the increased shareholdings by CETC Investment would not be less than RMB100 million and not
more than RMB200 million. The funding sources for CETHIK include its own funds and special loans for stock
acquisition whereas CETC Investment's funding comes from its own capital.By the close of 8 April 2025 CETHIK cumulatively acquired 6845600 shares through centralized bidding
transactions on the Shenzhen Stock Exchange representing 0.0741% of the company's total share capital at the time
with a total investment of RMB 200182737.28 (excluding transaction fees). By the close of 8 April 2025 CETC
Investment cumulatively acquired 12853665 shares through centralized bidding transactions on the Shenzhen
Stock Exchange representing 0.0347% of the company's total share capital at the time with a total investment of
RMB 100016373.80 (excluding transaction fees).The Company has duly fulfilled its disclosure obligations in accordance with relevant regulations upon
reaching the halfway point and completion of the aforementioned share increase plan and its completion. For details
please refer to the announcements published on the CNINFO website: the Announcement on the Share Increase
Plan by the Company's Controlling Shareholder and Its Concerted Parties (October 19 2024) the Announcement
on the Controlling Shareholder Obtaining a Special Loan Commitment Letter for Share Increase (December 14
2024) the Progress Announcement at the Midpoint of the Share Increase Plan by the Controlling Shareholder and
Its Concerted Parties (January 18 2025) and the Announcement on Implementation Completion (April 9 2025).In addition to the above plan CETHIK disclosed a share increase plan on October 17 2023 which was
completed on January 9 2024 while CETC Investment disclosed a plan on January 17 2024 completed on
February 6 2024. For details refer to the announcements published on the CNINFO website: the Announcement on
Completion of Share Increase Plan by the Controlling Shareholder (January 10 2024) and the Announcement on
Completion of Share Increase Plan by Concerted Parties of the Controlling Shareholder (February 7 2024).
3. The Company's share repurchase plan and its implementation progress.
201Hikvision 2024 Annual Report
Based on the firm confidence in the Company's future development prospects and the high recognition of its
long-term value the Chairman of the board proposed a share repurchase on October 18 2024. The proposal was
reviewed and approved at the 4th Meeting of the 6th Board of Directors on December 9 2024 and the 2024 2nd
Extraordinary General Meeting on December 25 2024 through the Share Repurchase Plan Proposal. The company
is authorized to repurchase a portion of its domestically issued RMB ordinary shares (A-shares) via centralized
bidding on the Shenzhen Stock Exchange. The total repurchase amount shall not exceed RMB 2.5 billion (inclusive)
and shall be no less than RMB 2.0 billion (inclusive) with a maximum repurchase price of RMB 40 per share
(inclusive). Funding sources include the company's own capital and a dedicated share repurchase loan. The
repurchase period shall not exceed 12 months from the date of shareholder approval. The repurchased shares will
be canceled to reduce registered capital. For details refer to the announcements published on October 19 December
10 and December 26 2024: Announcement on the Chairman of the board's Share Repurchase Proposal Resolution
of the Fourth Meeting of the Sixth Board of Directors Announcement on the Share Repurchase Plan Resolution of
the 2024 Second Extraordinary General Meeting and Share Repurchase Report.On December 26 2024 the Company completed its first repurchase of 4003019 shares via a dedicated
securities account through centralized bidding representing 0.0434% of the total shares outstanding. The highest
and lowest transaction prices were RMB 31.50/share and RMB 31.06/share respectively with a total share value
of RMB 125613283.27 (excluding fees).As of the market close on March 31 2025 the Company has implemented the share repurchase through the
dedicated securities account for share repurchases via centralized bidding cumulatively repurchasing 40504219
shares which represents 0.4387% of the Company's current total issued share capital. The highest transaction price
was RMB32.70 per share and the lowest transaction price was RMB27.53 per share. The total transaction amount
was RMB1235479288.81 (excluding transaction fees).The Company strictly complies with regulatory requirements follows lawful procedures and discloses
repurchase progress announcements within the first three trading days of each month. For details refer to the
Announcement on the First Share Repurchase published on December 27 2024 on the CNINFO website and the
monthly Announcement on Share Repurchase Progress.XVII. Significant Events of the Company's Subsidiaries
√ Applicable □Inapplicable
202Hikvision 2024 Annual Report
Matters Relating to Steady Promotion of the Spin-off of HikRobot to be Listed on the SZSE ChiNext
Market
On March 7 2023 Hangzhou Hikrobot Co. Ltd. (hereinafter referred to as "HikRobot") received Notice on
Accepting the Application Documents for the Initial Public Offering of Shares and Listing on the SZSE ChiNext
Market of Hangzhou Hikrobot Co. Ltd. (SZSE Listing Review [2023] No. 252) issued by Shenzhen Stock Exchange
and SZSE considered that application documents were completed and decided to accept. For details please refer to
the Announcement on the Application for the Initial Public Offering of Shares and Listing on the SZSE ChiNext
Market of Hangzhou Hikrobot Co. Ltd. a Subsidiary of the Company is Accepted by the SZSE (Announcement
No.: 2023-008) published by the Company on CNINFO website (www.cninfo.com.cn) on March 8 2023. Shenzhen
Stock Exchange issued the Inquiry Letter on the Review of Application Documents for the Initial Public Share
Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co. Ltd. (Inquiry Letter (2023)
No. 010121) on March 30 2023 and HikRobot has submitted the Reply to the Inquiry Letter on the Review of
Application Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext Market of
Hangzhou Hikrobot Co. Ltd. on May 17 2023. Shenzhen Stock Exchange issued the Second Inquiry Letter on the
Review of Application Documents for the Initial Public Share Offering of Shares and Listing on the SZSE ChiNext
Market of Hangzhou Hikrobot Co. Ltd. (Inquiry Letter (2023) No. 010218) on June 30 2023 and HikRobot has
submitted the Reply to the Second Inquiry Letter on the Review of Application Documents for the Initial Public
Share Offering of Shares and Listing on the SZSE ChiNext Market of Hangzhou Hikrobot Co. Ltd. on July 27
2023. Shenzhen Stock Exchange issued the Review Opinions Implementation Letter for the Application of
Hangzhou Hikrobot Co. Ltd. for the Initial Public Offering of Shares and Listing on the ChiNext Board (Review
Letter (2024) No. 010010) on January 15 2024 and subsequently announced Hikrobot's submission of the Reply
to the Review Opinions Letter from the Application Documents Review Center for the Initial Public Offeringof
Shares and Listing on the ChiNext Board of Hangzhou Hikrobot Co. Ltd. on January 2 2025.
203Hikvision 2024 Annual Report
Section VII Changes in Shares and Information about Shareholders
I. Changes in Share Capital
1. Table of Changes in Share Capital
Unit: Share
Before the change Changes in the period (+ -) After the change
Share
New Shares Bonus transferred
Shares Ratio Others Sub-total Shares Ratio
Issued share from capital
reserve
1. Shares subject to conditional restriction(s) 222167673 2.38% -94639161 -94639161 127528512 1.38%
1) State holdings
2) Shares held by state-owned corporates
3) Shares held by other domestic investors 222031673 2.38% -94503161 -94503161 127528512 1.38%
Including: held by domestic corporations
held by domestic individuals 222031673 2.38% -94503161 -94503161 127528512 1.38%
4) Shares held by overseas investors 136000 0.00% -136000 -136000 0 0.00%
Including: held by overseas corporations
held by overseas individuals 136000 0.00% -136000 -136000 0 0.00%
2. Shares without restriction 9108433258 97.62% -2763444 -2763444 9105669814 98.62%
1) RMB ordinary shares 9108433258 97.62% -2763444 -2763444 9105669814 98.62%
2) Domestically listed foreign shares
204Hikvision 2024 Annual Report
Before the change Changes in the period (+ -) After the change
Share
New Shares Bonus transferred
Shares Ratio Others Sub-total Shares Ratio
Issued share from capital
reserve
3) Foreign shares listed overseas
4) Others
3. Total 9330600931 100.00% -97402605 -97402605 9233198326 100.00%
Reason for the changes in share capital
√Applicable □Inapplicable
(1) During the reporting period the number of senior managers' locked-up shares changed due to senior managers' increase in shareholdings and leadership re-
election of the Company. For details please refer to the table from "V. Information about Directors Supervisors and Senior Management" in Section IV "Corporate
Governance" of this report.
(2) During the reporting period the Company terminated the 2021 Restricted Stock Plan and repurchased and canceled all relevant restricted shares.
On April 18 2024 and May 10 2024 the 20th meeting of the 5th session of the Board of Directors the 18th meeting of the 5th session of the Board of Supervisors
and 2023 Annual General Meeting reviewed and approved Proposal on Terminating the Implementation of the 2021 Restricted Stock Plan and Repurchasing and
Canceling Relevant Restricted Shares and agreed the company terminate the implementation of the 2021 Restricted Stock Plan and repurchase and cancel all restricted
stocks granted but not yet unlocked. The number of restricted stocks proposed to be repurchased and cancelled this time totals 97402605 shares accounting for 1.0439%
of the company's total share capital (9330600931 shares) before the repurchase and cancellation. On August 15 2024 the aforementioned restricted stocks have
completed the repurchase and cancellation procedures at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. As of the reporting
day the Company does not have any outstanding restricted shares.
205Hikvision 2024 Annual Report
For details please refer to the Announcement on Terminating the Implementation of the 2021 Restricted Stock Plan and Repurchasing and Canceling Relevant
Restricted Shares and the Announcement on the Completion of Repurchase and Cancellation of Restricted Stocks Related to the 2021 Restricted Stock Plan published
by the Company on www.cninfo.com.cn on April 20 2024 and August 17 2024.Approval for changes in share capital
√Applicable □Inapplicable
On April 18 2024 and May 10 2024 the 20th meeting of the 5th session of the Board of Directors the 18th meeting of the 5th session of the Board of Supervisors
and 2023 Annual General Meeting reviewed and approved Proposal on Terminating the Implementation of the 2021 Restricted Stock Plan and Repurchasing and
Canceling Relevant Restricted Shares and agreed the company terminate the implementation of the 2021 Restricted Stock Plan and repurchase and cancel all restricted
stocks granted but not yet unlocked.Transfer for changes in share capital
√Applicable □Inapplicable
On August 15 2024 the Company completed the repurchase and cancellation procedures for 97402605 restricted shares under its 2021 Restricted Share
Incentive Plan through China Securities Depository and Clearing Corporation Limited (Shenzhen Branch). Consequently the total share capital was adjusted from
9330600931 shares to 9233198326 shares. As of the reporting day the Company does not have any outstanding restricted shares.
Effects of changes in share capital on the basic earnings per share ("EPS") diluted EPS net assets per share attributable to common shareholders of the
Company and other financial indexes over the last year and last period
□Applicable √Inapplicable
206Hikvision 2024 Annual Report
Other contents that the Company considers necessary or required by the securities regulatory authorities to disclose
□ Applicable √ Inapplicable
2. Changes in Restricted Shares
√ Applicable □ Inapplicable
Unit: Share
Opening restricted Increased in current Vested in current
Name of shareholder Closing restricted shares Note for restricted shares Unlock date
shares period period
Grantees of restricted August 15 2024 2021
share incentive plan 97402605 0 97402605 0 Equity Incentive Restricted Shares Restricted Stock Plan
(consolidated) repurchased and canceled
Hu Yangzhong 116727358 270000 0 116997358 Restricted shares for senior executives
Xu Peng 11466 0 0 11 466 Restricted shares for senior executives
Wang Qiuchao 26250 0 0 26250 Restricted shares for senior executives
Pan Jia 40969 0 0 40969 Restricted shares for senior executives
He Hongli 248625 0 0 248625 Restricted shares for senior executives
Pu Shiliang 176925 0 0 176925 Restricted shares for senior executives In accordance with
relevant regulations on
Guo Xudong 15855 22500 0 38355 Restricted shares for senior executives
the management of shares
Xu Ximing 80925 7500 0 88425 Restricted shares for senior executive held by senior executives.Huang Fanghong 257125 22500 0 279625 Restricted shares for senior executives
Jin Yan 188250 0 0 188250 Restricted shares for senior executives
Cai Changyang 82125 0 0 82125 Restricted shares for senior executives
Qu Liyang 11812 3938 0 15750 Restricted shares for senior executives
Wu Weiqi 6514342 2171447 0 8685789 Restricted shares for senior executives
207Hikvision 2024 Annual Report
Opening restricted Increased in current Vested in current
Name of shareholder Closing restricted shares Note for restricted shares Unlock date
shares period period
Xu Lirong 227250 75750 0 303000 Restricted shares for senior executives
Jin Duo 82125 27375 0 109500 Restricted shares for senior executives
Bi Huijuan 177075 59025 0 236100 Restricted shares for senior executives
Total 222271082 2660035 97402605 127528512 -- --
Note:
1) Executives who are grantees under incentive restricted shares scheme his/her holding incentive restricted shares are counted within the "Grantees of restricted
share incentive plan (consolidated)" on the second row.
2) The total amount of vested shares of the "Grantees of restricted share incentive plan (consolidated)" in the current reporting period is 97402605 shares which
results from the repurchase and cancellation of restricted shares granted but not unlocked of the Company's 2021 Restricted Stock Plan in the current period (including
the repurchase and cancellation of the corresponding restricted shares held by the above senior executives).
3) The chairman of the board Hu Yangzhong and senior managers Guo Xudong Xu Ximing Huang Fanghong increased their holdings of the Company. These shares
are classified as restricted shares for senior managers in accordance with the relevant rules. Qu Liyang Wu Weiqi Xu Lirong and Jin Duo retired upon expiration of
their terms while Bi Huijuan resigned from her executive position during the reporting period. All shares held by them are fully classified into executive restricted
shares within 6 months of her resignation in accordance with relevant equity restriction rules.
4) For newly appointed directors supervisors and senior management during the reporting period their initial restricted shares are the number of shares classified as
restricted shares at the time of appointment in accordance with relevant equity restriction rules.II. Issuance and Listing of Securities
1. Securities (exclude Preferred Share) Issued during the Reporting Period
□Applicable √Inapplicable
2. Explanation on Changes in Total Share Capital the Structure of Shareholders and the Structure of Assets and Liabilities of the Company
√ Applicable □ Inapplicable
On August 15 2024 the company completed the repurchase and cancellation procedures for 97402605 restricted shares under its 2021 Restricted Share Incentive
208Hikvision 2024 Annual Report
Plan through China Securities Depository and Clearing Corporation Limited (Shenzhen Branch). Consequently the total share capital was adjusted from 9330600931
shares to 9233198326 shares. As of the reporting day the Company does not have any outstanding restricted shares.After the completion of the above matters there has been no significant change in the shareholder structure asset and liability structure of the Company.
3. Existent Shares Held by Internal Staff of the Company
□ Applicable √ Inapplicable
III. Particulars about the Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: Share
Total number of common shareholders at the The total number of ordinary shareholders at the end of the previous month before
401004340254
end of the reporting period the disclosure date of the annual report
Particulars about shares held by shareholders with a shareholding percentage over 5% or the Top 10 of them (Excluding shares lent through refinancing)
Total ordinary The number Pledged or marked or frozen
Share-holding Increase/decreas The number of shares
Nature of shares held at the of shares held
Name of shareholder percentage e during the held without trading
shareholder end of the reporting with trading
reporting period Status Amount (%) restrictions
period restrictions
China Electronics Domestic state-
Technology HIK Group owned 36.93% 3410150909 6271400 0 3410150909 Pledged 50000000
Ltd. corporation
Overseas
Gong Hongjia 10.42% 962504814 0 0 962504814 Pledged 231058200
individual
Hangzhou Weixun Equity Domestic non-
Investment Partnership state-owned 4.88% 450795176 0 0 450795176 Pledged 22200000
(Limited Partnership) corporation
209Hikvision 2024 Annual Report
Shanghai Perseverance
Asset Management
Partnership (Limited
Partnership) - Other 4.18% 385950050 -41049950 0 385950050 - -
Perseverance Adjacent
Mountain 1 Yuanwang
Fund
Domestic state-
CETC Investment
owned 2.66% 245484168 13176265 0 245484168 - -
Holdings Co. Ltd.corporation
Hangzhou Pukang Equity Domestic non-
Investment Partnership state-owned 1.98% 182510174 0 0 182510174 Pledged 51980000
(Limited Partnership) corporation
The 52nd Research
Domestic state-
Institute at China
owned 1.96% 180775044 0 0 180775044 - -
Electronics Technology
corporation
Group Corporation
Domestic
Hu Yangzhong 1.69% 155996477 360000 116997358 38999119 - -
individual
Domestic state-
Central Huijin Investment
owned 0.70% 64700691 0 0 64700691 - -
Co. Ltd.corporation
Industrial and
Commercial Bank of
China Co. Ltd. - Huatai
other 0.69% 63851856 35931100 0 63851856 -
Pinebridge CSI 300 ETF
Securities Investment
Fund
210Hikvision 2024 Annual Report
Among the above shareholders China Electronics Technology HIK Group Ltd. CETC Investment Holdings Co. Ltd. and the 52nd Research
Institute at China Electronics Technology Group Corporation are acting-in-concert parties. Mr. Gong Hongjia and Hangzhou Pukang Equity
Explanation on associated relationship or
Investment Partnership (Limited Partnership) are acting-in-concert parties. Mr. Hu Yangzhong and Hangzhou Weixun Equity Investment
concerted actions among the above-mentioned
Partnership (Limited Partnership) are acting-in-concert parties. Except for these the Company does not know whether the other shareholders
shareholders:
are related parties or whether they are acting-in-concert parties in accordance with the Administrative Measures for Acquisitions of Listed
Companies.Shareholding details of the top 10 unrestricted shareholders (excluding shares lent out through securities lending arrangements and management locked-in shares).Number of shares without trading Type of shares
Name of shareholder
restrictions held at the period-end Type Number
China Electronics Technology HIK Group Co. Ltd. 3410150909 RMB ordinary shares 3410150909
Gong Hongjia 962504814 RMB ordinary shares 962504814
Hangzhou Weixun Equity Investment Partnership (Limited Partnership) 450795176 RMB ordinary shares 450795176
Shanghai Perseverance Asset Management Partnership (Limited
385950050 RMB ordinary shares 385950050
Partnership) - Perseverance Adjacent Mountain 1 Yuanwang Fund
CETC Investment Holdings Co. Ltd. 245484168 RMB ordinary shares 245484168
Hangzhou Pukang Equity Investment Partnership (Limited Partnership) 182510174 RMB ordinary shares 182510174
The 52nd Research Institute at China Electronics Technology Group
180775044 RMB ordinary shares 180775044
Corporation
Central Huijin Investment Co. Ltd. 64700691 RMB ordinary shares 64700691
Industrial and Commercial Bank of China Co. Ltd. - Huatai Pinebridge
63851856 RMB ordinary shares 63851856
CSI 300 ETF Securities Investment Fund
Hong Kong Securities Clearing Company Ltd.(HKSCC) 49563620 RMB ordinary shares 49563620
Explanation on associated relationship and Among the above shareholders China Electronics Technology HIK Group Co. Ltd. CETC Investment Holdings Co. Ltd. and the 52nd
concerted actions among Top 10 shareholders Research Institute at China Electronics Technology Group Corporation are acting-in-concert parties. Mr. Gong Hongjia and Hangzhou
holding shares without trading restrictions and Pukang Equity Investment Partnership (Limited Partnership) are acting-in-concert parties. Hangzhou Weixun Equity Investment Partnership
among Top 10 shareholders and Top 10 (Limited Partnership) and Mr. Hu Yangzhong chairman of the board are acting-in-concert parties. Except for these the Company does not
shareholders holding shares without trading know whether the other shareholders are related parties or whether they are acting-in-concert parties in accordance with the Administrative
restrictions Measures for Acquisitions of Listed Companies.
211Hikvision 2024 Annual Report
Details of share lending activities through securities lending arrangements by shareholders holding more than 5% of shares top 10 shareholders and top 10 holders
of unrestricted circulating shares.√ Applicable□ Inapplicable
Unit: shares
Details of share lending activities through securities lending arrangements by shareholders holding more than 5% of shares top 10 shareholders and top 10
holders of unrestricted circulating shares.Period-beginning
Period-beginning common Period-end refinancing lending
refinancing lending shares Period-end common account
account and credit account shares that have not yet been
Name of shareholder that have not yet been and credit account holdings holdings returned
returned
Shares Percentage Shares Percentage Shares Percentage Shares Percentage
Industrial and Commercial Bank of China Co. Ltd. -
Huatai Pinebridge CSI 300 ETF Securities Investment 27920756 0.30% 15900 0.00% 63851856 0.69% 0 0.00%
Fund
Any changes of the Company's top 10 common shareholders or top 10 non-restricted common shareholders were due to refinancing lending/repayment issues compared
with the previous period
□ Applicable √ Inapplicable
Any of the Company's top 10 common shareholders or top 10 non-restricted common shareholders conducted any agreed buy-back in the reporting period
□ Yes √ No
No such case during the current reporting period.
2. Particulars about Controlling Shareholder of the Company
Nature of the controlling shareholder: Central State-owned
Type of the actual controller: Corporation
212Hikvision 2024 Annual Report
Name of controlling Legal Representative
Date of establishment Organization code Business scope
shareholder /People in charge
Industrial investment; R&D of environmental protection products network
China Electronics Technology products intelligent products and electronic products; technology transfer
Chen Zongnian November 29 2002 9133000014306073XD
HIK Group Ltd. technical services manufacturing and sales; business consulting services
rental services of self-owned real estate; import and export businesses.Shares held by the controlling
shareholder in other listed Directly holds 47.16% shares of domestic listed company Phoenix Optical Co. Ltd. and directly holds 13.50% shares of domestic listed company Anbang
companies through controlling or Save-guard Group Co. Ltd. and indirectly holds 17. 73% shares of domestic listed company Hangzhou EZVIZ Network Co. Ltd. (China Electronics
holding during the reporting Technology HIK Group Ltd. holds 36.93% shares of the Company and the Company holds 48.00% shares of Hangzhou EZVIZ Network Co. Ltd).period
Change of the controlling shareholder during the reporting period
□ Applicable √ Inapplicable
The Company's controlling shareholder has not changed during the reporting period.
213Hikvision 2024 Annual Report
3. Particulars about the Company's Actual Controller & Concerted Parties
Nature of the actual controller: Central state-owned assets management agency
Type of the actual controller: Corporation
Engaged in the construction of national major electronic information system projects as well as the research development production and
sales of equipment civil electronic information software materials components complete machines system integration and related
common technologies.Name of the Legal
Date of Organization
actual Representative Business scope
establishment code
controller /People in charge
Engaged in the construction of national major electronic
information system projects as well as the research
China Electronics development production and sales of equipment civil
February 25
Technology Group Wang Haibo 91110000710929498G electronic information software materials components
2002
Corporation complete machines system integration and related
common technologies.Shares held by the
actual controlling
China Electronics Technology Group Corporation is the actual controller of 18 domestic listed companies including Sun
shareholder in Create Electronic Co. Ltd CETC Digital Technology Co. Ltd CETC Cyberspace Security Technology Co. Ltd. CETC
other listed Putian Technology Co. Ltd. Tai'ji Computer Corporation Limited GLARUN Technology Co. Ltd. Phoenix Optics Co.companies Ltd. Chengdu Spaceon Electronics Co.Ltd. CETC Chip Technology Inc. Hebei Sinopack Electronic Technology Co.through Ltd. Eastern Communications Co.Ltd. Eastcompeace Technology Co.Ltd. Nanjing Potevio Telecommunications Co.Ltd. Chengdu Siwi Science and Technology Co. Ltd. Nanjing Guobo Electronics Co. Ltd. Hangzhou EZVIZ Network
controlling or
Co. Ltd. Nanjing Les Information Technology Co. Ltd. Beijing E-hualu Information Technology Co. Ltd. and etc.holding during the
reporting period
Change of the actual controller during the reporting period
□ Applicable √ Inapplicable
No such change during the reporting period.The ownership and controlling relationship between the actual controller of the Company and the Company is detailed
as follows:
The actual controller controls the Company through trust or other asset management methods
□ Applicable √Inapplicable
214Hikvision 2024 Annual Report
4. The Company's Controlling Shareholder or the Largest Shareholder and its Concerted Action Person's
Cumulative Pledged Shares Account for 80% of the Company's Shares Held by Them
□ Applicable √ Inapplicable
5. Particulars about Other Corporate Shareholders with Shareholding Proportion over 10%
□ Applicable √ Inapplicable
6. Particulars on Shareholding Decrease Restrictions for the Controlling Shareholders Actual Controller
Restructurer or Other Committing Parties
□ Applicable √ Inapplicable
IV. The Specific Implementation of Share Repurchase during the Reporting Period
Implementation progress of share repurchase
√ Applicable □Inapplicable
The number of
repurchased
shares as a
Planned Planned Amount of
Proportion to proportion of
Disclosure repurchase amount of Repurchase Use of repurchased
total share the underlying
Date amount of repurchase period repurchase shares
capital stock covered
shares fund (share)
by the share
incentive
scheme
Calculated
Calculated
based on that
based on that
the repurchase
the repurchase
price shall not
price shall not
exceed RMB40
exceed RMB40
per share. The Shall not
per share. The Cancel and
amount shall exceed
repurchased December 25 reduce
not exceed RMB2.5 billion
December 10 portion of 2024 – registered
62500000 (inclusive) and 10000219 Inapplicable
2024 shares shall not December 24 capital in
shares and not not less than
exceed 0.68% 2025 accordance
less than RMB 2 billion
and not less with law
50000000 (inclusive)
than 0.54%
share and the
and final result
final result is
is subject to the
subject to the
actual
actual
repurchase.repurchase.Note: The number of shares repurchased presented in the table reflects the actual repurchased shares as of the close of
trading on December 31 2024.Based on the firm confidence in the Company's future development prospects and the high recognition of its long-
term value the Chairman of the board proposed a share repurchase on October 18 2024. The proposal was reviewed and
approved at the 4th Meeting of the 6th Board of Directors on December 9 2024 and the 2024 2nd Extraordinary General
Meeting on December 25 2024 through the Share Repurchase Plan Proposal. The Company is authorized to repurchase
a portion of its domestically issued RMB ordinary shares (A-shares) via centralized bidding on the Shenzhen Stock
Exchange. The total repurchase amount shall not exceed RMB 2.5 billion (inclusive) and shall be no less than RMB 2.0
215Hikvision 2024 Annual Report
billion (inclusive) with a maximum repurchase price of RMB 40 per share (inclusive). Funding sources include the
Company's own capital and a dedicated share repurchase loan. The repurchase period shall not exceed 12 months from the
date of shareholder approval. The repurchased shares will be canceled to reduce registered capital. For details refer to the
announcements published on October 19 December 10 and December 26 2024: Announcement on the Chairman of the
board's Share Repurchase Proposal Resolution of the Fourth Meeting of the Sixth Board of Directors Announcement on
the Share Repurchase Plan Resolution of the 2024 Second Extraordinary General Meeting and Share Repurchase Report.On December 26 2024 the Company completed its first repurchase of 4003019 shares via a dedicated securities
account through centralized bidding representing 0.0434% of the total shares outstanding. The highest and lowest
transaction prices were RMB 31.50/share and RMB 31.06/share respectively with a total share value of RMB
125613283.27 (excluding fees).
As of the close of March 31 2025 the Company had cumulatively repurchased 40504219 shares through the
dedicated securities account accounting for 0.4387% of the total shares outstanding. The highest and lowest transaction
prices were RMB 32.70/share and RMB 27.53/share respectively with a total share value of RMB 1235479288.81
(excluding fees).The Company strictly complies with regulatory requirements follows lawful procedures and discloses repurchase
progress announcements within the first three trading days of each month. For details refer to the Announcement on the
First Share Repurchase published on December 27 2024 on the CNINFO website and the monthly Announcement on
Share Repurchase Progress.Implementation progress of reduce holdings of repurchased shares by means of centralized bidding
□Applicable√ Inapplicable
216Hikvision 2024 Annual Report
Section VIII Information of Preferred Shares
□ Applicable √ Inapplicable
There is no preferred share existed for the Company during the current reporting period.
217Hikvision 2024 Annual Report
Section IX Bonds
□ Applicable √ Inapplicable
218Hikvision 2024 Annual Report
Section X Financial Report
Audit Report
Audit Opinion Standard unqualified audit opinion
Audit Report sign-off Date April 17 2025
Audit Institution Name Deloitte Touche Tohmatsu Certified Public Accountants LLP
Audit Report Number Deloitte Auditors' Report (Audit) No. 25- P04523
Certified Public Accounts Name Chen yan Liu ying
To all shareholders of Hangzhou Hikvision Digital Technology Co. Ltd.:
1. Audit Opinion
We have audited the accompanying financial statements of Hangzhou Hikvision Digital Technology Co. Ltd.(hereinafter referred to as "Hikvision" or "The Group") including consolidated and parent company's balance sheet as of
December 31 2024 consolidated and parent company's income statement cash flow statement and statement of changes
in owners' equity of 2024 as well as relevant financial notes to financial statements.In our opinion the financial statements annexed have been prepared in accordance with Accounting Standards for
Business Enterprises in all material respects and they present fairly the consolidated and parent company's financial
position of Hikvision as of December 31 2024 and consolidated and parent company's financial performance and cash
flows of 2024.
2. Basis of Opinion
We have conducted our audit in accordance with the Auditing Standards for Chinese Certified Public Accountants."Responsibilities of Certified Public Accountants for Financial Statements Audit" in the audit report further states our
responsibilities under the standards. As per the code of ethics of Chinese certified public accountants we are independent
from Hikvision and have implemented other responsibilities as required by the code of ethics. We believe that the audit
evidence we have acquired is sufficient and appropriate to provide a basis for our audit opinion.
3. Key Matters
Key matters are matters we deem the most significant to the financial statements audit for this year based on our
professional judgment. These matters are handled based on the financial statements audit as a whole and the audit opinion
formed accordingly. We don't present opinions separately on these matters. We confirm that the following matters are key
matters to be communicated through in the audit report.
(1) Recognition of Sales Revenues
Description:
219Hikvision 2024 Annual Report
As shown in Note (V) 45 the operating revenue in the consolidated financial statements of the Group for the year
ended December 31 2024 is RMB92495525118.30. The product sales revenue a key performance indicator reaches
RMB87408184677.06 accounting for 94.50% of the operating revenue which is a significant indicator of the Group
and has a significant influence on results of business operations. The product sales revenue include different sales models
such as product domestic sales and product export sales by domestic companies and the overseas sales of overseas
subsidiaries and the revenue recognition is complicated. Therefore we regard the occurrence of product sales revenue as
a key audit matter.Audit Measures:
Main audit procedures that we perform for the aforesaid key audit matters include:
(1) Understanding and evaluating design and implementation of key internal control in relation to revenue recognition
and testing the effectiveness of its operation;
(2) For revenues under different sales models selecting a sample to check the sales contract reviewing its main
transaction terms evaluating whether revenue recognition complies with requirements of accounting policies of the
Group and the Accounting Standards for Business Enterprises;
(3) Analyzing revenues and gross profits based on product types to understand whether there are abnormal fluctuations
in the revenues and gross profits for the year and conducting a test of details for identified specific transactions
through systematic analysis of revenue data and reviewing relevant supporting documents;
(4) Selecting sample(s) from product sales revenues recorded for the year checking invoices sales contracts or orders
shipping orders signature forms and other supporting documents; for the sample(s) of income under the export model
of the selected domestic companies additional inspections will be made to the customs declaration record and
shipment record.
(2) Provision for Credit Loss of Accounts Receivable
Description:
As disclosed in Note (V) 4 to the consolidated financial statements of the Group as of December 31 2024 the balance
of accounts receivable amounted to RMB41824083460.37 and the balance of provision for credit losses of accounts
receivable amounted to RMB3 913954724.95. The book value of the Group's accounts receivable is relatively high and
the provision for credit loss of accounts receivable has a significant impact on the financial statements. As shown in Note
(III) 11.2 Note (III) 13 and Note (III) 35 of the financial statements the Group makes provisions for credit losses for
accounts receivable at an amount equivalent to expected credit losses during the entire duration. For accounts receivable
with significant individual amount and when the debtor has major financial difficulties etc. the Group recognizes its credit
losses based on individual assets and classifies other accounts receivable into different combinations based on common
credit risk characteristics and calculates expected credit losses on a portfolio basis.For accounts receivable classified into portfolios the Group uses impairment matrix to determine the expected credit
loss provision for accounts receivable. The expected credit loss provision ratio for each portfolio is determined based on
the Group's historical overdue ratio and default and with reference to the forward-looking information of the industry. The
accounting estimates above are subject to a high level of uncertainties. Therefore we identify the recognition of credit loss
provision for accounts receivable on a portfolio basis as a key audit matter.Audit Measures:
220Hikvision 2024 Annual Report
Main audit procedures that we perform for the aforesaid key audit matters include:
(1) Understanding and evaluating design and implementation of key internal control in relation to expected credit loss
provision for accounts receivable by the Group and testing the effectiveness of its operation;
(2) Understanding the Group's accounting policies for expected credit loss on accounts receivable; for the model credit
loss provision for accounts receivable on a portfolio basis the following main procedures were performed
-Assessing the rationality of measurement method by using impairment matrix model and the rationality of the key
parameters and assumptions used in the impairment matrix model including classification of different portfolios
classification of stage forward-looking adjustment etc.;
- Obtaining the historical default data used by the Group's management in determining the historical loss rate of
accounts receivable and evaluating the accuracy thereof;
- Selecting samples to test the accuracy of the classification of portfolio and stage by the Group's management;
- Recalculating the expected credit loss provision based on default loss percentage.
4. Other Information
Management of Hikvision shall be responsible for other information. Other information includes the information
covered in the annual report excluding the financial statements and our audit report.Our audit opinion on the financial statements does not cover other information and we do not express any form of
authentication conclusion on other information.In connection with our audit of the financial statements our responsibility is to read other information and to consider
whether other information is significantly misstated or materially inconsistent with the financial statements or the
information we learned during the audit.Based on the works we have performed if we determine that there is a material misstatement in other information
we should report the fact. In this respect we have nothing to report.
5. Responsibility of the Management and Governance for the Financial Statements
The management of Hikvision is responsible for the preparation of financial statements in accordance with
Accounting Standards for Business Enterprises to achieve fair presentation and design implementation and maintenance
of necessary internal control to enable the financial statements are free from material misstatement whether due to fraud
or error.When preparing the financial statements the management is responsible for assessing the going-concern ability of
Hikvision disclosing issues related to going-concern as applicable and applying going-concern assumptions unless the
management plans to liquidate Hikvision terminate operation or has no other realistic choice.The governance is responsible for supervising financial reporting processes of Hikvision.
6. Responsibility of Certified Public Accountants on Audit of the Financial Statements
Our objective is to obtain reasonable assurance as to whether the overall financial statements are free from material
misstatement whether due to fraud or error and to issue audit report that contain audit opinions. Reasonable assurance is
a high level of assurance but could not guarantee that an audit performed in accordance with the Auditing Standards can
always figure out any existing material misstatements. Misstatements may be caused by fraud or error. Misstatement is
221Hikvision 2024 Annual Report
generally considered to be material if it is reasonably expected that the misstatement alone or aggregated may affect the
users' financial decisions based on the financial statements.In performing the audit in accordance with the Auditing Standards we applied professional judgment and maintained
professional skepticism. Meanwhile we also perform the following duties:
(1) Identify and evaluate the risk of material misstatement of financial statements due to fraud or error; design and
implement audit procedures to cope with these risks and obtain adequate and appropriate audit evidence as the basis
for expressing audit opinions. As fraud may involve collusion forgery willful omission misrepresentation or
override of internal control the risk of not discovering a material misstatement due to fraud is higher than the risk of
not discovering a material misstatement due to error.
(2) Understand the internal control related to auditing as a way to design appropriate audit procedures.
(3) Evaluate the properness of accounting policy selected by the management and the rationality of accounting estimate
and related disclosure.
(4) Reach a conclusion on whether the going concern assumption adopted by the management is appropriate. Meanwhile
based on the audit evidence obtained reach a conclusion on whether there are material uncertainties in the events or
conditions that may cast significant doubts on Hikvision's ability to continue as a going concern. If we reach a
conclusion that there is a material uncertainty the Auditing Standards require us to call the attention of the users of
the report to the relevant disclosures in the financial statements in the audit report. If the disclosure is insufficient we
should issue modified audit opinions. Our conclusion is based on the information available up to the date of the audit
report. However future events or conditions may result in the failure of Hikvision to continue as a going concern.
(5) Evaluate the overall presentation (including the disclosure) structure and content of the financial statements and
evaluate whether the financial statements fairly reflect the related transactions and events.
(6) Obtain adequate and appropriate audit evidence on the financial information of entity or business activities of
Hikvision so as to express audit opinions on the financial statements. We are responsible for directing supervising
and executing the audit on the Group and assume full responsibility for the audit opinions.We communicated with the governance about the scope of the audit the schedule and major audit findings including
the notable shortcomings of internal control identified during the auditing.We also provide statement to the governance on the independence-related work ethics we follow and communicate
with the governance on all relations and other matters that might be reasonably deemed to influence our independence as
well as relevant precautionary measures (as applicable).We determine which of the matters we communicated with the governance are of the greatest importance to the audit
of financial statements of the current period so as to make them key matters. We describe the matters in the audit report.We decide not to communicate on such matters in the audit report unless the laws and regulations forbid the public
disclosure of such matters or in rare circumstances if the negative consequence of communication of matters in the audit
report is reasonably expected to exceed the benefit of the public interest.
222Hikvision 2024 Annual Report
On December 31 2024
Consolidated Balance Sheet
Unit: RMB
Item Notes On December 31 2024 On December 31 2023(Restated)
Current Assets:
Cash and bank balances (V)1 36271488337.03 49638158662.54
Derivative financial assets (V)2 26775923.93 37380.00
Notes receivable (V)3 2722596142.46 2606071375.74
Accounts receivable (V)4 37910128735.42 35816573511.44
Receivables for financing (V)6 2291648244.05 1594219832.62
Prepayments (V)7 664602593.01 508151405.92
Other receivables (V)8 531344606.50 571912035.93
Inventories (V)9 19110711958.11 19211444296.82
Contract assets (V)5 985822785.69 1173312415.20
Non-current assets due within one year (V)10 894327647.82 1079721006.23
Other current assets (V)11 1071066653.10 961593616.75
Total Current Assets 102480513627.12 113161195539.19
Non-current Assets:
Long-term receivables (V)12 380453188.09 538698618.76
Long-term equity investment (V)13 1527223390.79 1151104887.85
Other non-current financial assets (V)14 472000082.76 472184937.66
Fixed assets (V)15 15063752296.49 11508312342.17
Construction in progress (V)16 4699473381.21 4307651074.46
Right-of-use assets (V)17 530138023.79 521061396.66
Intangible assets (V)18 1828287135.99 1810476551.45
Goodwill (V)19 312165129.29 311353640.88
Long-term deferred expenses (V)20 162841758.91 177361533.93
Deferred tax assets (V)21 2206191157.06 1978373012.15
Other non-current assets (V)22 2353160984.64 2920349344.39
Total Non-current Assets 29535686529.02 25696927340.36
Total Assets 132016200156.14 138858122879.55
On December 31 2024
Consolidated Balance Sheet-continued
Unit: RMB
Item Notes On December 31 2024 On December 31 2023 (Restated)
Current Liabilities:
Short-term borrowings (V)24 1031895812.62 2118952026.06
Derivative financial liabilities (V)25 1874341.64 38079755.04
223Hikvision 2024 Annual Report
Notes payable (V)26 1197128746.56 1163687279.58
Accounts payable (V)27 20185303107.69 19163485888.09
Contract liabilities (V)28 3353943054.24 2977990775.40
Payroll payable (V)29 5666415834.10 6120471280.78
Taxes payable (V)30 1535936096.02 1622550187.86
Other payables (V)31 3528359044.48 3911612841.06
Including: dividend payables (V)31.2 186793.11 253957413.29
Non-current liabilities due within one year (V)32 767030688.91 5814660214.96
Other current liabilities (V)33 377117275.65 1481222044.19
Total Current Liabilities 37645004001.91 44412712293.02
Non-current Liabilities:
Long-term borrowings (V)34 5119185000.00 8940122961.01
Lease liabilities (V)35 375432749.68 344005866.13
Long-term payables 9780220.80 15526169.45
Provisions (V)36 305250049.71 213084038.31
Deferred income (V)37 874512073.53 966259592.34
Deferred tax liabilities (V)21 112711363.52 129866978.18
Other non-current liabilities (V)38 74029948.84 1672933103.20
Total Non-current Liabilities 6870901406.08 12281798708.62
Total Liabilities 44515905407.99 56694511001.64
Owners' Equity
Share capital (V)39 9233198326.00 9330600931.00
Capital reserves (V)40 6181644265.06 7864903763.52
Less: Treasury shares (V)41 310044296.12 2737987226.55
Other comprehensive income (V)42 (111510486.21) 44667516.16
Surplus reserves (V)43 4715460312.00 4715460312.00
Retained earnings (V)44 60959912942.15 57136620244.01
Total Owners' Equity Attributable to Owner
80668661062.8876354265540.14
of the Company
Minority equity 6831633685.27 5809346337.77
Total Owners' Equity 87500294748.15 82163611877.91
Total Liabilities and Owners' Equity 132016200156.14 138858122879.55
The accompanying notes form part of the financial statements.The financial statements were signed by the following:
Legal Representative: Hu Yangzhong; Person in charge of the accounting work: Jin Yan;
Person in Charge of the Accounting Department: Zhan Junhua
224Hikvision 2024 Annual Report
On December 31 2024
Balance Sheet of the Parent Company
Unit: RMB
Item Notes On December 31 2024 On December 31 2023
Current Assets:
Cash and bank balances 22813537991.27 36366610163.17
Notes receivable 226470150.02 214433654.20
Accounts receivable (XVI)1 25733620869.95 19016777665.77
Receivables for financing 50535530.46 44650466.33
Prepayments 234363667.93 53649708.62
Other receivables (XVI)2 4405567174.71 3061246174.74
Including: dividend receivables (XVI)2.2 - 41423446.39
Inventories 143812782.98 199049157.84
Contract assets 18901004.71 10490078.61
Non-current assets due within one year 106879332.17 157086525.60
Other current assets 1720538797.37 1676541190.03
Total Current Assets 55454227301.57 60800534784.91
Non-current Assets:
Long-term accounts receivable 1204913267.41 3633588076.55
Long-term equity investment (XVI)3 9486970485.01 8681387048.75
Other non-current financial assets 307130117.76 338767764.24
Fixed assets 3415196347.85 3392288906.32
Construction in progress 79844913.85 17377463.50
Right-of-use assets 84298386.18 124744108.19
Intangible assets 173965691.99 96021508.25
Long-term deferred expenses 37381601.80 39437083.99
Deferred tax assets 298084602.58 322869398.52
Other non-current assets 62355873.60 146216939.94
Total Non-current Assets 15150141288.03 16792698298.25
Total Assets 70604368589.60 77593233083.16
225Hikvision 2024 Annual Report
On December 31 2024
Balance Sheet of the Parent Company - continued
Unit: RMB
Item Notes On December 31 2024 On December 31 2023
Current Liabilities:
Short-term borrowings 200075833.33 -
Accounts payable 1184469965.39 1050518329.53
Contract liabilities 191877808.28 218875534.52
Payroll payable 3247226282.17 3644152847.04
Taxes payable 574239387.19 944807901.59
Other payables 635628127.73 738553487.03
Non-current liabilities due within one year 210197535.44 1523328743.28
Other current liabilities 44720937.37 1134059460.70
Total Current Liabilities 6288435876.90 9254296303.69
Non-current Liabilities:
Long-term borrowings 1827000000.00 5887380000.00
Lease liabilities 46955785.74 66330125.99
Provisions 107030168.03 97586882.51
Deferred Income 365813574.47 410243110.75
Other non-current liabilities - 1642792335.93
Total Non-current Liabilities 2346799528.24 8104332455.18
Total Liabilities 8635235405.14 17358628758.87
Owners' Equity
Share capital 9233198326.00 9330600931.00
Capital reserves 3849752890.09 5776371174.04
Less: Treasury shares 310044296.12 2737987226.55
Surplus reserves 4715460312.00 4715460312.00
Retained earnings 44480765952.49 43150159133.80
Total Owners' Equity 61969133184.46 60234604324.29
Total Liabilities and Owners' Equity 70604368589.60 77593233083.16
226Hikvision 2024 Annual Report
For the reporting period from January 1 2024 to December 31 2024
Consolidated Income Statement
Unit: RMB
Amount for the current Amount for the prior
Item Notes
period period (Restated)
I. Total Revenue (V)45 92495525118.30 89341177610.40
Less: Total operating costs (V)45 51953857912.21 49732768547.57
Business taxes and surcharges (V)46 692285927.36 704641378.69
Selling expenses (V)47 12051218102.62 10746788076.01
Administrative expenses (V)48 3095939643.92 2770781203.45
Research and Development (R&D) expenses (V)49 11864013392.27 11392948404.47
Financial expenses (V)50 (114817493.16) (749800283.79)
Including: Interest expenses 391404187.13 457605119.59
Interest income 878035430.32 1067169946.60
Add: Other Income (V)51 2653682810.87 2559523242.99
Investment income (V)52 187021018.77 63302304.25
Including: Investment gains (Losses) in associated
30668990.87(29966477.85)
enterprise and joint-venture enterprise
Gains (losses) from changes in fair values (V)53 47759102.43 22679257.89
Credit impairment gains (losses) (V)54 (1068789505.74) (879922773.25)
Impairment gains (losses) of assets (V)55 (445914387.59) (463382275.12)
Asset disposal income (losses) (14539975.31) (5674511.78)
II. Operating Profit 14312246696.51 16039575528.98
Add: Non-operating income (V)56 63737582.35 87573120.04
Less: Non-operating expenses (V)57 32490638.86 27933016.91
III. Total Profit 14343493640.00 16099215632.11
Less: Income tax expenses (V)58 1202471579.49 943313868.90
IV. Net Profit 13141022060.51 15155901763.21
(I) Classification by continuous operation
(a) Net profit on continuous operation 13141022060.51 15155901763.21
(b) Net loss on terminated operation - -
(II) Classification by attribution of ownership
(a) Net profit attributable to owners of parent company 11977327023.54 14107726276.26
(b) Profit or loss attributable to minority shareholders 1163695036.97 1048175486.95
V. Other Comprehensive Income Net of Income Tax (V)42 (285156327.33) 183798707.05
Other comprehensive income attributable to owners of the
(156178002.37)87254674.97
Company net of tax
(I) Items that will not be reclassified subsequently to profit or
--
loss
(II) Other comprehensive income to be reclassified to profit or
(156178002.37)87254674.97
loss in subsequent periods
1. Exchange differences arising on conversion of financial
(156178002.37)87254674.97
statements denominated in foreign currencies
Other comprehensive income attributable to minority interests
(128978324.96)96544032.08
net of tax
VI. Total Comprehensive Income 12855865733.18 15339700470.26
227Hikvision 2024 Annual Report
Amount for the current Amount for the prior
Item Notes
period period (Restated)
Total comprehensive income attributable to owners of the parent
11821149021.1714194980951.23
company
Total comprehensive income attributable to minority
1034716712.011144719519.03
shareholders
VII. Earnings per Share
(I) Basic earnings per share (RMB/share) (XVII)2 1.297 1.520
(II) Diluted earnings per share (RMB/share) (XVII)2 1.297 1.520
In the current year for business combinations under common control the net loss realized by the combined party prior
to the combination was: RMB 295677.15 while the net profit realized by the combined party in the previous year was:
RMB 218576.25.
228Hikvision 2024 Annual Report
For the reporting period from January 1 2024 to December 31 2024
Income Statement of the Parent Company
Unit: RMB
Amount for the Amount for the prior
Item Notes
current period period (Restated)
I. Total Revenue (XVI)4 24148421603.36 25547794166.85
Less: Total operating Cost (XVI)4 4483355526.93 4557434594.05
Business taxes and surcharges 288929873.36 315430824.67
Selling expenses 3729196616.91 3866288945.36
Administrative expenses 885742669.64 911095185.51
Research and Development (R&D) expenses 7164260715.25 7500668818.36
Financial expenses (460591487.54) (642865974.82)
Including : Interest expenses 134657024.82 161668592.71
Interest income 578070079.98 865373583.65
Add: Other income 1671483871.95 1634201874.22
Investment income (XVI)5 428959177.60 499611155.15
Including: Investment gains(Losses) in associated
26003020.74(36401170.84)
enterprise and joint-venture enterprise
Gains (losses) from changes in fair values (31637646.48) 2475310.72
Credit impairment gains (losses) (114296061.01) (98343814.70)
Impairment gains (losses) of assets (98433.91) 2652989.00
Asset disposal income (losses) (7215529.29) 1072329.19
II. Operating profit 10004723067.67 11081411617.30
Add: Non-operating income 8474270.33 15820653.67
Less: Non-operating expenses 1565470.96 1821528.02
III. Total profit 10011631867.04 11095410742.95
Less: Income tax expenses 526990722.95 543355227.07
IV. Net profit 9484641144.09 10552055515.88
V. Other comprehensive income net of income tax - -
VI. Total comprehensive income 9484641144.09 10552055515.88
229Hikvision 2024 Annual Report
For the reporting period from January 1 2024 to December 31 2024
Consolidated Cash Flow Statement
Unit: RMB
Amount for the
Amount for the
Item Notes prior period
current period
(Restated)
I. Cash Flows from Operating Activities:
Cash receipts from sale of goods or rendering of services 98512386004.95 93594226079.25
Receipts of tax refunds 4198239416.84 3991363648.68
Other cash receipts relating to operating activities (V)59(1) 1760845198.13 1806494187.72
Sub-total of ash inflows from operating activities 104471470619.92 99392083915.65
Cash payments for goods purchased and services received 56858146890.75 52008690617.35
Cash paid to and on behalf of employees 20140688302.14 17978448952.57
Payments of various types of taxes 6679316991.20 6494801736.38
Other cash payments relating to operating activities (V)59(1) 7529226413.10 6287932888.30
Sub-total of cash outflows from operating activities 91207378597.19 82769874194.60
Net Cash Flows from Operating Activities (V)60(1) 13264092022.73 16622209721.05
II. Cash Flows from Investing Activities:
Cash receipts from recovery of investments (V)59(2) 3002416092.15 4688412447.25
Cash receipts from investment income 67333430.58 67123840.33
Net cash receipts from disposals of fixed assets intangible assets and
18893652.3030738410.30
other long-term assets
Other cash receipts relating to investing activities (V)59(2) 84419763.14 121237455.42
Sub-total of cash inflows from investing activities 3173062938.17 4907512153.30
Cash payments to acquire or construct fixed assets intangible assets
(V)59(2) 4665742203.72 4047816024.05
and other long-term assets
Cash payments to acquire investments (V)59(2) 3046421031.55 4803003467.44
Net cash paid for obtaining subsidiaries and other business units (V)60(2) 8440700.00 43992651.82
Sub-total of cash outflows from investing activities 7720603935.27 8894812143.31
Net Cash Flows from Investing Activities (4547540997.10) (3987299990.01)
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 149000000.00 72570000.00
Including: cash receipts from capital contributions from minority
149000000.0072570000.00
owners of subsidiaries
Cash receipts from borrowings 7214406837.74 11032367859.61
Other cash receipts from financing activities (V)59(3) 2007056.47 5000000.00
Sub-total of cash inflows from financing activities 7365413894.21 11109937859.61
Cash repayments of borrowings 17073833780.12 6174788332.85
Cash payments for distribution of dividends or profits or settlement
8993845346.347083299395.46
of interest expenses
Including : Dividends and profits paid by subsidiaries to minority
327176023.62194009629.27
shareholders
Other cash payments relating to financing activities (V)59(3) 3376723553.38 997281629.42
Sub-total of cash outflows from financing activities 29444402679.84 14255369357.73
Net Cash Flows from Financing Activities (22078988785.63) (3145431498.12)
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
(12487215.49)113365015.34
Equivalents
V. Net Increase (Decrease) in Cash and Cash Equivalents (V)60(1) (13374924975.49) 9602843248.26
Add: Opening balance of Cash and Cash Equivalents (V)60(3) 49427967355.78 39825124107.52
VI. Closing Balance of Cash and Cash Equivalents (V)60(3) 36053042380.29 49427967355.78
230Hikvision 2024 Annual Report
For the reporting period from January 1 2024 to December 31 2024
Cash Flow Statements of the Parent Company
Unit: RMB
Amount for the Amount for the
Item Notes
current period prior period
I. Cash Flows from Operating Activities::
Cash receipts from the sale of goods and the rendering of services 20183364498.46 33798989613.55
Receipts of tax refunds 1437778163.22 1484786334.10
Other cash receipts relating to operating activities 904245500.67 1003715734.81
Sub-total of cash inflows from operating activities 22525388162.35 36287491682.46
Cash payments for goods acquired and services received 5072134963.21 5141659409.02
Cash paid to and on behalf of employees 7948378555.58 7743837239.02
Payments of various types of taxes 3393746907.86 2810558011.92
Other cash payments relating to operating activities 4427556481.06 4018574345.87
Sub-total of cash outflows from operating activities 20841816907.71 19714629005.83
Net Cash Flows from Operating Activities (XVI)8(1) 1683571254.64 16572862676.63
II. Cash Flows from Investing Activities:
Cash receipts from recovery of investments 4114000000.00 876506386.63
Cash receipts from investment income 449576192.54 559285378.22
Net cash receipts from disposals of fixed assets intangible assets and
20287904.2759072378.14
other long-term assets
Other cash receipts relating to investing activities 74971218190.24 66769850832.31
Sub-total of cash inflows from investing activities 79555082287.05 68264714975.30
Cash payments to acquire or construct fixed assets intangible assets
521185569.34319040089.07
and other long-term assets
Cash payments to acquire investments 4529752620.00 3569972354.33
Other cash payments relating to investing activities 73178198874.61 70028455422.77
Sub-total of cash outflows from investing activities 78229137063.95 73917467866.17
Net Cash Flows from Investing Activities 1325945223.10 (5652752890.87)
III. Cash Flows from Financing Activities
Cash receipts from borrowings 1650000000.00 5481410000.00
Other cash receipts relating to financing activities 13326445447.45 11356826127.58
Sub-total of cash inflows from financing activities 14976445447.45 16838236127.58
Cash repayments of borrowings 6785400600.00 473648200.00
Cash payments for distribution of dividends or profits or settlement of
8424721408.996590228195.38
interest expenses
Other cash payments relating to financing activities 16338194784.59 12107588596.15
Sub-total of cash outflows from financing activities 31548316793.58 19171464991.53
Net Cash Flows from Financing Activities (16571871346.13) (2333228863.95)
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
(2076162.95)(3379613.83)
Equivalents
V. Net Increase (Decrease) in Cash and Cash Equivalents (XVI)8(1) (13564431031.34) 8583501307.98
Add: Opening balance of cash and cash equivalents (XVI)8(2) 36354702554.38 27771201246.40
VI. Closing Balance of Cash and Cash Equivalents (XVI)8(2) 22790271523.04 36354702554.38
231Hikvision 2024 Annual Report
For the reporting period from January 1 2024 to December 31 2024
Consolidated Statement of Changes in Owners' Equity
Unit: RMB
2024
Owner's equity attributable to the parent company
Items Other Minority Total owners'
Less: Treasury
Share capital Capital reserves comprehensive Surplus reserve Retained profits interests equity
share
income
I. Closing balance of the prior
9330600931.007864903763.522737987226.5544667516.164715460312.0057136620244.015809346337.7782163611877.91
year
Due to the changes in
--------
accounting policies
II. Opening balance of current
9330600931.007864903763.522737987226.5544667516.164715460312.0057136620244.015809346337.7782163611877.91
year
III. Increase or decrease in the
(97402605.00)(1683259498.46)(2427942930.43)(156178002.37)-3823292698.141022287347.505336682870.24
current period
(I) Total comprehensive
---(156178002.37)-11977327023.541034716712.0112855865733.18
income
(II) Owners' contributions
(97402605.00)(1683259498.46)(2583787098.43)---222426339.631025551334.60
and reduction in capital
1. Capital contribution
------149000000.00149000000.00
from shareholders
2. Share-based payment
recognized in owners' - 782354064.37 - - - - 83074508.22 865428572.59
equity
3. Others (97402605.00) (2465613562.83) (2583787098.43) - - - (9648168.59) 11122762.01
(III) Profit distribution - - 155844168.00 - - (8154034325.40) (234855704.14) (8544734197.54)
1. Transfer to surplus
--------
reserves
2. Distributions to
-----(8309878493.40)(234855704.14)(8544734197.54)
shareholders
3. Others - - 155844168.00 - - 155844168.00 - -
IV. Closing balance of the
9233198326.006181644265.06310044296.12(111510486.21)4715460312.0060959912942.156831633685.2787500294748.15
current period
232Hikvision 2024 Annual Report
For the reporting period from January 1 2024 to December 31 2024
Consolidated Statement of Changes in Owners' Equity-continued
Unit: RMB
2023 (Restated)
Owner's equity attributable to the parent company
Items Other Minority Total owners'
Less: Treasury
Share capital Capital reserves comprehensive Surplus reserve Retained profits interests equity
share
income
I. Closing balance of the prior year 9430920624.00 10141153435.32 5316033650.24 (42587158.81) 4715460312.00 49460240986.49 4580999418.82 72970153967.58
Due to the changes in accounting
-----182975.561391408.521574384.08
policies
II. Opening balance of current year 9430920624.00 10141153435.32 5316033650.24 (42587158.81) 4715460312.00 49460423962.05 4582390827.34 72971728351.66
III. Increase or decrease in the
(100319693.00)(2276249671.80)(2578046423.69)87254674.97-7676196281.961226955510.439191883526.25
current period
(I) Total comprehensive income - - - 87254674.97 - 14107726276.26 1144719519.03 15339700470.26
(II) Owners' contributions and
(100319693.00)(2609860174.19)---243095948.04476386757.43
reduction in capital (2276249671.80)
1. Capital contribution from
------72570000.0072570000.00
shareholders
2. Share-based payment
-169682759.53----37934118.40207616877.93
recognized in owners' equity
3. Others (100319693.00) (2445932431.33) (2609860174.19) - - - 132591829.64 196199879.50
(III) Profit distribution - - 31813750.50 - - (6431529994.30) (160859956.64) (6624203701.44)
1. Transfer to surplus reserves - - - - - - - -
2. Distributions to
--(91514124.10)--(6554752952.30)(160746296.99)(6623985125.19)
shareholders
3. Others - - 123327874.60 - - 123222958.00 (113659.65) (218576.25)
IV. Closing balance of the current
9330600931.007864903763.522737987226.5544667516.164715460312.0057136620244.015809346337.7782163611877.91
period
233Hikvision 2024 Annual Report
For the reporting period from January 1 2024 to December 31 2024
Statement of Changes in Owners' Equity of the Parent Company
Unit: RMB
2024
Item
Share capital Capital reserves Less: Treasury share Surplus reserve Retained profits Total owners' equity
I. Closing balance of the prior year 9330600931.00 5776371174.04 2737987226.55 4715460312.00 43150159133.80 60234604324.29
Due to the changes in accounting policies - - - - - -
II. Opening balance of current year 9330600931.00 5776371174.04 2737987226.55 4715460312.00 43150159133.80 60234604324.29
III. Increase or decrease in the current period (97402605.00) (1926618283.95) (2427942930.43) - 1330606818.69 1734528860.17
(I) Total comprehensive income - - - - 9484641144.09 9484641144.09
(II) Owners' contributions and reduction in capital (97402605.00) (1926618283.95) (2583787098.43) - - 559766209.48
1. Capital contribution from shareholders - - - - - -
2. Share-based payment recognized in owners' equity - 652558986.86 - - - 652558986.86
3. Others (97402605.00) (2579177270.81) (2583787098.43) - - (92792777.38)
(III) Profit distribution - - 155844168.00 - (8154034325.40) (8309878493.40)
1. Transfer to surplus reserves - - - - - -
2. Distributions to shareholders - - - - (8309878493.40) (8309878493.40)
3. Others - - 155844168.00 - 155844168.00 -
IV. Closing balance of the current period 9233198326.00 3849752890.09 310044296.12 4715460312.00 44480765952.49 61969133184.46
2023
Item
Share capital Capital reserves Less: Treasury share Surplus reserve Retained profits Total owners' equity
I. Closing balance of the prior year 9430920624.00 8264384780.30 5316033650.24 4715460312.00 39030437901.96 56125169968.02
Due to the changes in accounting policies - - - - (909206.34) (909206.34)
II. Opening balance of current year 9430920624.00 8264384780.30 5316033650.24 4715460312.00 39029528695.62 56124260761.68
III. Increase or decrease in the current period (100319693.00) (2488013606.26) (2578046423.69) - 4120630438.18 4110343562.61
(I) Total comprehensive income - - - - 10552055515.88 10552055515.88
(II) Owners' contributions and reduction in capital (100319693.00) (2488013606.26) (2609860174.19) - - 21526874.93
1. Capital contribution from shareholders - - - - - -
2. Share-based payment recognized in owners' equity - 73548755.72 - - - 73548755.72
234Hikvision 2024 Annual Report
3. Others (100319693.00) (2561562361.98) (2609860174.19) - - (52021880.79)
(III) Profit distribution - - 31813750.50 - (6431425077.70) (6463238828.20)
1. Transfer to surplus reserves - - - - - -
2. Distributions to shareholders - - (91514124.10) - (6554752952.30) (6463238828.20)
3. Others - - 123327874.60 - 123327874.60 -
IV. Closing balance of the current period 9330600931.00 5776371174.04 2737987226.55 4715460312.00 43150159133.80 60234604324.29
235Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
I. Basic Information about the Company
1. Overview of the Company
Hangzhou Hikvision Digital Technology Co. Ltd. (hereinafter referred to as "Company" or "the Company" or
"Hikvision") is a Sino-foreign equity joint venture company formerly known as "Hangzhou Hikvision Digital Technology
Ltd" established on November 30 2001 in Hangzhou upon the approval letter of Hangzhou High-tech No. 604 [2001]
issued by Hangzhou High-tech Industrial Development Zone Management Committee. On June 25 2008 with approval
of document No. 598 [2008] issued by the MOFCOM (The Ministry of Commerce of the People's Republic of China) the
Company was renamed as "Hangzhou Hikvision Digital Technology Co. Ltd." headquartered in Hangzhou. On May 28
2010 the Company was listed on the Shenzhen Stock Exchange.
The main business activities of the Company and its subsidiaries (hereinafter referred to as "the Group") include the
manufacture and sale of security equipment network equipment and intelligent equipment the manufacture and wholesale
of auto parts and accessories the sale of electronic products the provision of construction projects technical services
technology development technical consulting software development information system integration services data
processing and storage support services etc.
2. Date of Approval for Issuance of Financial Statements
The Company's consolidated financial reports were approved for issuance by the 5th meeting of the 6th session of the
Board of Directors of the Company on April 17 2025.II. Basis of Preparation of Financial Statements
Basis of preparation of financial statements
The Group have adopted the Accounting Standards for Business Enterprises ("ASBE") and relevant provisions issued by
the Ministry of Finance ("MoF"). In addition the Group has disclosed relevant financial information in accordance with
Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15－ General
Provisions on Financial Reporting (revised in 2023).Going concern
The Group has evaluated its going concern for 12 months going forward starting from December 31 2024 and there is no
factor that may cast significant doubt on the entity's ability to continue as a going concern. Therefore the financial
statements have been prepared on a going concern basis.Bookkeeping base and valuation principles
236Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The Group measures the accounting elements in accordance with the accrual accounting basis. Except certain financial
instruments are measured by fair value these financial statements are prepared in accordance with the measurements basis
of historical costs. If the asset decreases in value the provision for impairment of assets should be made according to
relevant regulations.According to the historical cost measurement the assets shall be measured as per the amount of cash or cash equivalent
paid at the time of purchase or the fair value of consideration paid for the purchase of such assets. The liabilities shall be
measured in accordance with the amount of funds or assets actually received when undertaking current obligations or the
contract amount when undertaking the current obligations or the amount of cash or cash equivalents required for paying
back the debts in daily activities.The fair value is a price received by the market participants from selling asset or transferring liability during orderly
transaction at the measurement date. No matter the fair value is observable or estimated by using valuation technique the
measured and disclosed fair value in the financial statement shall be determined on this basis.When measuring non-financial assets at fair value the assets shall be measured considering the ability of market
participants to use the assets for optimal use to generate economic benefits or to sell the assets to other market participants
to use the assets for optimal use to generate economic benefits.For the financial assets measured with transaction price at the initial recognition and the use of valuation techniques
involving unobservable inputs in the subsequent fair value measurement the valuation technique is corrected in the
valuation process in order to make the initial recognition results confirmed by valuation techniques equal to the transaction
price.Based on the observable extent of the input value of the fair value and the importance of such input value to the fair value
measurement the fair value measurement is divided into three levels:
* Level 1: The input value is the unadjusted offer of the same assets or liabilities on active market acquired on measurement
date;
* Level 2: The input value is the input value of relevant assets or liabilities observable directly or indirectly in addition to
level 1 input value;
* Level 3: The input value is the non-observable input value of relevant assets or liabilities.III. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates suggests:
237Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The Group has formulated specific accounting policies and accounting estimates for the method of determining materiality
standards and the basis of selection provision for credit losses on accounts receivable provision for inventory depreciation
depreciation of fixed assets and revenue recognition according to the actual production and operation characteristics. The
significant judgements and accounting estimates and their key assumptions applied by the Group in identifying significant
accounting policies are detailed in Notes (III) 35.
1. Statement for Compliance with Accounting Standards for Business Enterprises (ASBE)
The financial statements of the Company have been prepared in accordance with ASBE and present truly and completely
the Company's and consolidated financial position as of December 31 2024; and the Company's and consolidated results
of operations and the Company's and consolidated changes in owners' equity and the Company's and consolidated cash
flows for 2024.
2. Accounting Period
The Group has adopted the calendar year as its accounting year from January 1st to December 31st each year.
3. Business Cycle
The business cycle refers to the period from purchase of assets used for processing to realization of cash or cash equivalents.The Group business cycle is usually 12 months.
4. Functional Currency
Renminbi ("RMB") is the currency in the primary economic environments in which the Company and its domestic
subsidiaries are operated. The Company and its domestic subsidiaries take RMB as their functional currency. Overseas
subsidiaries of the Company determine their functional currency on the basis of the primary economic environment in
which it operates. The Group adopts RMB to prepare its financial statements.
5. Methodology for determining materiality criteria and basis for selection
Item Materiality Criteria
Significant single-item receivabls with bad debt provision Single amount accounts for 10% of accounts receivable balance
Significant single-item contract assets with bad debt provision Single amount accounts for 10% of contract asset balance
Single amount of investment of construction in progress accounts for
Significant construction in progress
2% of net assets balance
Significant accounts payable other payables and contract Accounts payable other payables and contract liabilities aged more
liabilities aged over 1 year than one year account for 5% of the balance of liabilities
Minority interests representing 10% of consolidated shareholders'
Significant non-wholly owned subsidiaries
equity
238Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Investment income of individual joint ventures/associates accounts for
10% of consolidated net profit or the year-end balance of long-term
Significant joint ventures or associates
equity investment in the enterprise accounts for 10% of the total
consolidated assets
Cash received or paid in connection with significant The amount of cash inflow or outflow from a single investing activity
investment activities accounts for 10% of cash inflow or outflow from investing activities
6. The Accounting Treatment of Business Combinations Involving Enterprises under Common Control and
Business Combinations Not Involving Enterprises under Common Control
Business combinations are classified into business combinations involving enterprises under common control and business
combinations not involving enterprises under common control.
6.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are actual controlled by the same party or parties both before and after the combination and that
control is not transitory.Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the combining entities
at the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying
amount of the consideration paid for the combination is adjusted to the share premium in capital reserve. If the share
premium is not sufficient to absorb the difference any excess shall be adjusted against retained earnings.Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are incurred.
6.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business combination in which all of the
combining enterprises are not actual controlled by the same party or parties before and after the combination.The cost of combination is the aggregate of the fair values at the acquisition date of the assets given liabilities incurred
or assumed and equity securities issued by the acquirer in exchange for control of the acquiree. If a business combination
not under the common control is realized step by step through multiple transactions the cost of the combination is the sum
of the consideration paid on the purchase date and the fair value of the equity of the purchase already held before the
purchase date on the purchase date. The intermediary expenses incurred by the acquirer in respect of auditing legal
239Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
services valuation and consultancy services etc. and other associated administrative expenses attributable to the business
combination are recognized in profit or loss when they are incurred.The acquiree's identifiable assets liabilities and contingent liabilities acquired by the acquirer in a business combination
that meet the recognition criteria shall be measured at fair value at the acquisition date.Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets the
difference is treated as an asset and recognized as goodwill which is measured at cost on initial recognition. Where the
cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets the acquirer
firstly reassesses the measurement of the fair values of the acquiree's identifiable assets liabilities and contingent liabilities
and measurement of the cost of combination. If after that reassessment the cost of combination is still less than the
acquirer's interest in the fair value of the acquiree's identifiable net assets the acquirer recognizes the remaining difference
immediately into profit or loss for the current period.Goodwill arising on a business combination is measured at cost less accumulated impairment losses and is presented
separately in the consolidated financial statements.
7. Criteria for determining control right and Preparation Method of Consolidated Financial Statements
7.1 Criteria for determining control right
Control right means that an investor may control an investee; the investor may participate in relevant activities of the
investee to obtain variable rewards and also be able to use the control rights for the investee to influence its amount of
returns. The Group will re-evaluate if the change of the relevant facts and circumstances leading to the change of the
relevant elements involved in the above definition of control.
7.2 Preparation method of consolidated financial statements
The scope of consolidated financial statements shall be confirmed based on the control.The merger of subsidiary starts from the Group obtaining the control power of the subsidiary and terminates when the
Group loses the control power of the subsidiary.
240Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
As for subsidiaries disposed by the Group operating results and cash flows prior to the disposal date (the date of losing
control right) have been properly included in the consolidated profit statement and consolidated cash flow statement.For a subsidiary acquired through a business combination not involving enterprises under common control the operating
results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income
statement and consolidated statement of cash flows.No matter when the business combination occurs in the reporting period subsidiaries acquired through a business
combination involving enterprises under common control are included in the Group's scope of consolidation as if they had
been included in the scope of consolidation from the date when they first came under the common control of the actual
controlling party. Their operating results and cash flows from the beginning of the earliest reporting period are included
in the consolidated income statement and consolidated statement of cash flows as appropriate.The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the
uniform accounting policies and accounting periods set out by the Company.All significant intra-group balances and transactions are eliminated on consolidation.The portion of subsidiaries' equity that is not attributable to the Company is treated as minority interests and presented as
"minority equity" in the consolidated balance sheet. The portion of net profits or losses of subsidiaries for the period
attributable to minority interests is presented as "minority interests" in the consolidated income statement below the "net
profit" line item.When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority
shareholders' portion of the opening balance of owners' equity of the subsidiary the excess amount are still allocated
against minority interests.Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the loss of control over the
subsidiary is accounted for as equity transactions. The carrying amounts of the total owners' equity attributable to owner
of the Company and minority equity are adjusted to reflect the changes in their relative interests in the subsidiary. The
difference between the amount by which the minority interests are adjusted and the fair value of the consideration paid or
received is adjusted to capital reserve under owners' equity. If the capital reserve is not sufficient to absorb the difference
the excess is adjusted against retained earnings.
241Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
In the case that the equity of the acquiree is obtained through multiple deals in stages to finally form the business
combination not under the common control the business combination shall be handled differently based on whether it is
"package deal": where it is package deal the Company accounts each deal as a deal to obtain the control. If the deal is not
a "package deal" a deal where the control is obtained on the acquisition date will be subject to accounting. The acquiree's
equity held before the acquisition date will be re-measured based on the fair value of the equity on the acquisition date
and the difference between the fair value and book value will be included in the profit or loss in the current period. If the
acquiree's equity held before the acquisition date involves any changes in the other comprehensive income or in any other
owner's equity accounted by the equity method then it is transferred to income for the period in which it belongs at the
date of purchase.
8. Joint Arrangement Classification and Joint Operation Accounting
Joint arrangements include joint operation and joint ventures. Such classification is defined based on the rights and
obligations of the joint parties in the joint arrangement taking into account the structure and legal form of such
arrangement and also the contractual provisions.The Groups investment in any joint venture is accounted by the equity method. See the details in Note (III) "18.3.2 Long-
term equity investment accounted under the equity method".
9. Recognition Criteria of Cash and Cash Equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are the Group's
short-term (Generally refers to due within three months from the purchase date) highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
10. Conversion of Transactions and Financial Statements Denominated in Foreign Currencies.
10.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded on initial recognition by applying an exchange rate that approximates the
actual spot exchange rate on the date of transaction; The exchange rate that approximates the actual spot exchange rate on
the date of transaction is calculated according to the middle price of market exchange rate at the beginning of the month
in which the transaction happened.At the balance sheet date foreign currency monetary items are translated into [RMB] using the spot exchange rates at the
balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the
242Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
balance sheet date and those on initial recognition or at the previous balance sheet date are recognized in profit or loss for
the period except for exchange differences related to a specific-purpose borrowing denominated in foreign currency that
qualify for capitalization are capitalized as part of the cost of the qualifying asset during the capitalization period.When the consolidated financial statements include foreign operation(s) if there is foreign currency monetary item
constituting a net investment in a foreign operation exchange difference arising from changes in exchange rates are
recognized as "exchange differences arising on conversion of financial statements denominated in foreign currencies " in
other comprehensive income and in profit and loss for the period upon disposal of the foreign operation.Foreign currency non-monetary items measured at historical cost are converted to the amounts in functional currency at
the spot exchange rates on the dates of the transactions.
10.2 Conversion of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements financial statements of a foreign operation are
converted from the foreign currency into RMB using the following method: assets and liabilities on the balance sheet are
translated at the spot exchange rate prevailing at the balance sheet date; shareholders' equity items are converted at the
spot exchange rates at the dates on which such items arose; all items in the income statement as well as items reflecting
the distribution of profits are translated at exchange rates that approximate the actual spot exchange rates on the dates of
the transactions; The difference between the converted assets and the aggregate of liabilities and shareholders' equity items
is recognized into other comprehensive income and shareholders' equity.The foreign currency cash flows and cash flows of overseas subsidiaries adopt the exchange rate similar to the spot rate at
the date of cash flows for conversion. The affected amount of cash and cash equivalents due to the change of exchange
rate as an adjustment item shall be separately listed as "the impact of cash and cash equivalents due to the change of
exchange rate" in the cash flow statement.The closing balances of the prior year and the actual amount of the prior year are presented at the converted amounts of
the prior year's financial statements.On disposal of the Group's entire interest in a foreign operation or upon a loss of control over a foreign operation due to
disposal of certain interest in it or other reasons the Group transfers the accumulated exchange differences arising on
conversion of financial statements of this foreign operation attributable to the owners' equity of the Company and presented
under shareholders' equity to profit or loss in the period in which the disposal occurs.
243Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
In case of a disposal or other reason that does not result in the Group losing control over a foreign operation but only a
decrease in proportion of overseas business interests the proportionate share of accumulated exchange differences arising
on conversion of financial statements are re-attributed to minority interests and are not recognized in profit and loss under
current period. For partial disposals of equity interests in foreign operations which are associates or joint ventures the
proportionate shares of the accumulated exchange differences arising on conversion of financial statements of foreign
operations is reclassified to profit or loss under current period.
11. Financial Instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to a contract of financial instrument.For the purchase or sale of a financial asset in conventional manner the asset to be received and the liability to be assumed
will be recognized on the trading day or the asset sold will be derecognized on the trading day.Financial assets and financial liabilities are measured by fair value upon initial recognition (The method of determining
the fair value of financial assets and financial liabilities is described in the related disclosure of the basis of accounting
and valuation principles in note (ii). For financial assets and financial liabilities at fair value through profit and loss the
relevant trading costs will be directly charged to profit and loss of the current period. For other types of financial assets
and financial liabilities the relevant trading costs will be booked into the initial recognition amount. Upon initial
recognition of accounts receivable which have no material financing components or have not taken into consideration the
financing components in contracts with a term not exceeding one year according to Accounting Standards for Business
Enterprise No. 14 – Revenue ("Revenue Standard") such initial amount is measured by the transaction price as defined
under the Revenue Standard.Effective interest rate method refers to the method of calculating the amortized cost of financial asset or financial liability
and apportioning interest income or interest expenses to each accounting period.Effective interest rate refers to the interest rate used for discounting the estimated future cash flows of a financial asset or
a financial liability for an expected subsisting period into the balance of book value of the financial asset or the amortized
cost of the financial liability. When determining the effective interest rate the expected cash flows are estimated on the
basis of considering all contractual terms of the financial asset or financial liability (such as early repayment extended
term call option or other similar option) but without considering the expected credit loss.
244Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The amortized cost of a financial asset or a financial liability refers to the initial recognition amount of such financial asset
or financial liability less the repaid amount of principal plus or minus the accrued amortized amount calculated by
amortization of the difference between the initial recognition amount and the amount on maturity by using the effective
interest rate method and then deducts the accrued provision for losses (only applicable to financial assets).
11.1 Classification Confirmation and Measurement of Financial Assets
After initial recognition the Group will adopt amortized cost fair value through other comprehensive income or fair value
through profit and loss for subsequent measurement depending on different categories of financial assets.The Group will classify a financial asset into a financial asset measured at amortized cost if the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding and the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows. Financial assets classified by the Group as financial asset measured by amortized
cost include cash and cash equivalents notes receivables and accounts receivable other receivables long-term receivables
and other non-current assets.The Group will classify a financial asset into a financial asset measured by fair value through other comprehensive income
if the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding and the financial asset is held within a business model whose objective
is achieved by both collecting contractual cash flows and selling the financial assets. This category of financial assets
mainly includes financial assets with a maturity of more than one year from the date of acquisition and which are presented
under other debt investments financial assets maturing within one year (inclusive) from the balance sheet date and which
are presented under non-current assets maturing within one year as well as the notes receivable classified as fair value at
the time of acquisition and their changes are included in other comprehensive income are listed in the receivables for
financing and for those have acquisition period within one year (including one year) are listed in other current assets.At the time of initial recognition the Group may on the basis of a single financial asset irrevocably designate an
investment in an equity instrument held for non-trading purpose recognized or without consideration in a business
combination of enterprises not under the same control as a financial asset at fair value through other comprehensive income.This type of financial assets is presented as investment in other equity instruments.Financial assets which have satisfied one of the following conditions indicate that such financial assets are held for trading
purpose by the Group:
* The purpose of acquiring the relevant financial asset is mainly for sale in recent period.* At the time of initial recognition the relevant financial asset is a part of an identifiable portfolio of financial
245Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
instruments under collective management and there is objective evidence showing a recent and actual existence of short-
term profitable mode.* The relevant financial assets are derivatives.Financial assets at fair value through profit and loss include financial assets which are classified as financial assets at fair
value through profit and loss and financial assets designated at fair value through profit and loss:
* Financial assets which do not satisfy the conditions of being classified as financial assets measured at amortized cost
or as financial assets at fair value through other comprehensive income they will be classified as financial assets at fair
value through profit and loss.* At the time of initial recognition in order to eliminate or substantially reduce mismatch in accounting the Group
may irrevocably designate a financial asset as a financial asset measured at fair value with changes through profit and loss.Financial assets measured at fair value with changes recognized in profit or loss other than derivative financial assets are
presented as trading financial assets. If such financial assets have a maturity of more than one year from the balance sheet
date (or without a fixed maturity) and which are expected to be held for more than one year they will be presented under
other non-current financial assets.
11.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost adopt the effective interest rate method for subsequent measurement according
to amortized cost the profit or loss when impairment occurs or upon derecognition will be accounted in profit and loss of
the current period.The Group recognizes interest income by using effective interest rate method for financial assets measured at amortized
cost. The Group determines interest income by multiplying the balance of book value of financial assets with the effective
interest rate except under the following circumstances:
* For acquired or generated financial assets which incurred credit impairment already their interest income will be
determined by using the amortized cost of such financial asset calculated with the credit adjusted effective interest rate.* For acquired or generated financial assets which have not incurred credit impairment but incur credit impairment in
the subsequent period the Group will determine their interest income by using the amortized cost of such financial assets
multiplied with the effective interest rate in the subsequent period. If such financial asset ceases to have credit impairment
due to improvement in credit risk in the subsequent period then the Group should change to multiply the effective interest
rate with the balance of book value of such financial asset instead to determine the interest income.
11.1.2 Financial asset at fair value through other comprehensive income
The impairment loss or profit or interest income calculated by using the effective interest rate method relating to financial
246Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
asset at fair value through other comprehensive income should be accounted in the profit and loss of the current period
and other changes in fair value of such financial assets will be accounted in other comprehensive income. The amount
charged by such financial asset to the profit and loss of each period is deemed to be equal to the amount which has been
measured by amortized cost and charged to the profit and loss of each period. Upon derecognition of such financial asset
the accumulated profit or loss previously charged to other comprehensive income will be reversed from other
comprehensive income and charged to profit and loss of the current period.For non-trading equity instrument investment designated at fair value through other comprehensive income its changes
in fair value will be recognized in other comprehensive income. Upon derecognition of such financial asset the
accumulated profit or loss charged to other comprehensive income will be reversed from other comprehensive income and
charged to retained earnings. During the period when such investment in equity instruments for non-trading purpose are
held by the Group the right to receive dividends by the Group has been established and economic benefits related to
dividends are likely to flow into the Group and if the amount of dividends may be measured reliably the dividend income
is recognized and accounted in the profit and loss of the current period.
11.1.3 Financial asset at fair value through profit and loss
For financial asset at fair value through profit and loss subsequent measurement will be calculated at fair value the profit
or loss arising from changes in fair value and the dividend and interest income relating to such financial asset will be
accounted in the profit and loss of the current period.
11.2 Impairment of Financial Assets
For financial assets measured at amortized cost financial assets that are classified as financial asset at fair value through
other comprehensive income lease receivables and contract assets the Group will handle impairment on the basis of
expected credit loss and recognize loss provision.The Group's consideration of contract assets notes receivable and accounts receivable that are generated by transactions
regulated by revenue standards and do not contain significant financing components or that do not consider financing
components in contracts that are not more than one year old as well as those lease receivables formed from transactions
that are defined by the Accounting Standards for Business Enterprises No. 21-Leasing the loss reserve shall be measured
based on the amount of the expected credit loss during the entire duration.For other financial instruments other than acquired or generated financial assets which have incurred credit impairment
already the Group will assess on each balance sheet date the changes in credit risk of the relevant financial instruments
since initial recognition. If the credit risk of such financial asset has significantly increased after initial recognition the
Group will calculate its loss provision based on the amount equivalent to the expected credit loss for the entire subsisting
247Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
period. If the credit risk of such financial asset since initial recognition has not increased significantly the Group will
calculate its loss provision according to the expected credit loss amount of such financial asset for the next 12 months.The amount of increase or reversal in the provision for credit loss apart from financial assets classified as financial asset
at fair value through other comprehensive income is accounted in the profit and loss of the current period. For financial
asset classified as measured at fair value through other comprehensive income the Group will recognize its credit loss
provision in other comprehensive income and charged the impairment loss or gain to the profit and loss of the current
period and will not decrease the book value of such financial asset presented in the balance sheet.The Group has calculated the loss provision equivalent to the expected credit loss amount for the entire subsisting period
of the financial instrument in the preceding accounting period but at the balance sheet date of the current period such
financial instrument is no longer under the condition of significant increase in credit risk since initial recognition the
Group calculates the loss provision for such financial instrument on the balance sheet date of the current period according
to an amount equivalent to the expected credit loss for the next 12 months and the resulting loss provision reversal amount
will be counted as impairment gain and booked into the profit and loss of the current period.
11.2.1 Significant increase in credit risk
The Group uses available and reasonable forward-looking information with justification by comparing the default risk of
the financial instrument at the balance sheet date with the default risk on the initial recognition date to confirm whether
the credit risk of the financial instrument has significantly increased after initial recognition.The Group considers the following factors when assessing whether the credit risk has significantly increased:
(1) Whether a significant change has been caused to the internal price indicator due to changes in credit risk.
(2) Whether the external credit rating of financial instrument has actual or expected significant changes.
(3) Whether the actual or expected internal credit rating of the debtor has been downgraded.
(4) Whether adverse changes have occurred in the business finance or economic conditions which are expected to cause
significant changes in the capability of the debtor to perform debt repayment obligations.
(5) Whether actual or expected significant changes have occurred in the operating results of the debtor.
(6) Whether significant adverse changes have occurred in the supervision economic or technical environment in which
the debtor operates.
(7) Whether significant changes have occurred in the value of security pledged for the debt or the quality of guarantee
or credit enhancement provided by third parties. Such changes are expected to reduce the debtor's economic
motivation of repayment according to contractual term or influence the probability of default.
(8) Whether significant changes have occurred in the economic motivation which will lower the expectation of
repayment by the borrower according to the contractual term.
(9) Whether significant changes have occurred in the expected performance and repayment behavior of the debtor.
248Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Whether or not the credit risks increase significantly after the foregoing assessments if any contractual payment for any
financial instrument that overdue for over (including) 30 days it indicates the credit risks of that financial instrument have
increased significantly.On the balance sheet date if the Group determines that the financial instrument only carries low credit risks then it assumes
that the credit risks of the financial instrument have not increased significantly since the initial recognition. If the risk of
default on financial instruments is low the borrower is highly able to perform its contractual cash flow obligations in the
short term and even if the economic situation and operating environment are adversely changed over a long period of time
but not necessarily reducing the borrower's performance of its contractual cash obligations the financial instrument is
considered as having a lower credit risk.
11.2.2 Financial assets which have incurred credit impairment already
When one or more events which will have adverse effect on the expected future cash flows from the financial asset of the
Group have occurred such financial asset will become a financial asset which have incurred credit impairment already.The evidence of credit impairment occurred in a financial asset includes the following observable information:
(1) Material financial difficulties have occurred in the issuer or debtor;
(2) Breach of contract by the debtor such as default or overdue for the payment of interest or repayment of principal;
(3) Due to economic or contractual considerations relating to financial difficulties of the debtor the creditor has granted
concession to the debtor under no other circumstances;
(4) The debtor is likely to go bankrupt or carry out other financial restructuring;
(5) The financial difficulties of the issuer or debtor have caused the disappearance of the active market for the financial
asset;
(6) The purchase or generation of a financial asset at a large discount such discount reflects the fact of occurrence of credit
loss.
11.2.3 Confirmation of expected credit loss
The Group confirms the expected credit loss of the relevant financial instrument according to the following method:
* In respect of financial asset and lease receivables the credit loss is the present value of the difference between the
contractual cash flow that the group should receive and the cash flow that it expects to receive.* In respect of financial assets with credit impairment on the balance sheet date but they are not acquired or generated
financial assets with credit impairment the credit loss represents the difference between the balance of the book value
of such financial asset and the present value of the estimated future cash flows discounted by the original effective
interest rate.The factors reflected by the method used for calculating expected credit loss of financial instruments by the Group include:
249Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
an unbiased weighted average amount determined by assessing a series of probable outcomes; time value of currency;
reasonable and justifiable information relating to past events prevailing conditions and forecast of future economic
conditions obtained on the balance sheet date without incurring unnecessary additional cost or effort.
11.2.4 Write-off on financial asset
When the Group ceases to have reasonable expectation on the possible collection of all or part of the contractual cash
flows from the financial asset the balance of book value of such financial asset will be written off directly. Such a write-
off constitutes a derecognition of the relevant financial asset.
11.3 Transfer of financial asset
A financial asset that fulfills one of the following conditions will be de-recognized: (1) termination of contractual rights
to receive cash flows from the financial asset; (2) upon transfer of such financial asset and transfer of substantially all the
risks and rewards in respect of the ownership of such financial asset to the transferee; (3) upon transfer of such financial
asset though the Group has not transferred nor retained substantially all the risks and rewards in respect of the ownership
of such financial asset yet it has not retained the control over such financial asset.If the Group has not transferred nor retained substantially all the risks and rewards in respect of the ownership of such
financial asset and has retained the control over such financial asset then such transferred financial asset will continue to
be recognized and the relevant liabilities will continue to be recognized according to the level of the Group's continuous
involvement in such transferred financial asset. The relevant liabilities will be measured by the Group according to the
following method:
* If the transferred financial asset is measured by amortized cost the book value of the relevant liabilities is equivalent
to the book value of the transferred asset of continuous involvement less the amortized cost of the rights retained by the
Group (if the Group has retained the relevant rights due to transfer of the financial asset) and plus the amortized cost of
the obligations undertaken by the Group (if the Group has undertaken the relevant obligations due to transfer of the
financial asset) and the relevant liabilities are not designated as financial liabilities at fair value through profit and loss of
the current period.* If the transferred financial asset is measured by fair value the book value of the relevant liabilities is equivalent to
the book value of the transferred asset of continuous involvement less the fair value of the rights retained by the Group (if
the Group has retained the relevant rights due to transfer of the financial asset) and plus the fair value of the obligations
undertaken by the Group (if the Group has undertaken the relevant obligations due to transfer of the financial asset) and
the fair value of the rights and obligations shall be measured at the fair value on a separate basis.For full transfer which satisfies the conditions of derecognition of the financial assets the difference between the sum of
the book value of the transferred financial assets as at the date of derecognition and the consideration received from such
250Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
transfer and the accumulated amount of change in fair value originally included in other comprehensive income which
corresponds to the amount in respect of derecognition shall be recognized in the profit and loss for the current period. If
the transfer of the financial assets by the Group is designated as investment in equity instrument held for non-trading
purpose measured at fair value through other comprehensive income the accumulated gains or losses previously included
in other comprehensive income shall be transferred out from other comprehensive income and be included in retained
earnings.For transfer in part which satisfies the conditions of derecognition of the financial assets the book value of the entire
financial assets before the transfer shall be shared between the derecognized portion and the continuous recognition portion
at their respective relative fair value on the date of transfer and the difference between the sum of the consideration
received from derecognition and the accumulated amount of change in fair value originally included in other
comprehensive income which corresponds to the amount in respect of derecognition and the book value of the
derecognized portion as at the date of derecognition shall be included in the profit and loss of the current period. If the
transfer of the financial assets by the Group is designated as investment in equity instrument for non-trading purpose
measured at fair value through other comprehensive income the accumulated gains or losses previously included in other
comprehensive income shall be transferred out from other comprehensive income and be included in retained earnings.For full transfer which does not satisfy the conditions of derecognition of the financial assets the Group will continue to
recognize the entire financial assets transferred and the consideration received as a result of the asset transfer is recognized
as a liability when received.
11.4 Classification confirmation and measurement of financial liabilities and equity instruments
Pursuant to the contractual terms of the issued financial instruments and the substantive economic condition as reflected
but not in legal terms only combined with the definitions of financial liabilities and equity instruments the Group has
classified such financial instruments or the components thereof as financial liabilities or equity instruments upon initial
recognition.
11.4.1 Classification confirmation and measurement of financial liabilities
Financial liabilities are classified into financial liabilities at fair value through profit and loss of the current period and
other financial liabilities upon initial recognition.
11.4.1.1 Financial liabilities at fair value through profit and loss of the current period
Financial liabilities at fair value through profit and loss of the current period comprise of financial liabilities held for
trading purpose (including derivatives of financial liabilities) and financial liabilities designated as measured at fair value
251Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
through profit and loss of the current period. Except for derivatives of financial liabilities which are presented separately
financial liabilities at fair value through profit and loss of the current period are presented as financial liabilities held for
trading.Financial liabilities that fulfill one of the following conditions suggest that the Group assumes such financial liabilities for
trading purpose:
* Assumption of the relevant financial liabilities is mainly for the purpose of the recent repurchases.* The relevant financial liabilities upon initial recognition are part of a portfolio of identifiable financial instruments
under centralized management and available objective evidence shows the recent and actual existence of a short-
term profit-making model.* The relevant financial liabilities are derivatives.Financial liabilities can be designated upon initial recognition by the Group as financial liabilities at fair value through
profit and loss of the current period provided that they have satisfied one of the following conditions: (1) such designation
can eliminate or substantially reduce accounting mismatches; (2) managing and evaluating the performance of portfolios
of financial liabilities or portfolios of financial assets and financial liabilities on fair value basis and reporting internally
to key personnel of the Group on this basis in accordance with the risk management or investment strategies specified in
formal written documents of the Group; (3) hybrid contracts with embedded derivatives have satisfied the conditions.Financial liabilities held for trading purpose use fair value for subsequent measurement gains or losses arise from changes
in fair value and the dividends or interest expenses relating to such financial liabilities are accounted in the profit and loss
of the current period.
11.4.1.2 Other financial liabilities
Excluding transfer of financial assets not complying with derecognition conditions or financial liabilities as a result of
continuous involvement in transferred financial assets as well as the financial guarantee contracts the other financial
liabilities will be classified as financial liabilities measured at amortized cost subsequent measurement will be based on
amortized cost gains or losses on derecognition or amortization will be accounted in the profit and loss of the current
period.If the Group and the counterparty have revised or renegotiated the contract this has not resulted in the derecognition of
financial liabilities measured at amortized cost for subsequent measurement but has caused changes in the contractual
cash flows then the Group should recalculate the book value of such financial liabilities and the relevant gains or losses
shall be accounted in the profit and loss of the current period. The recalculated book value of such financial liabilities will
be determined by the Group by discounting the cash flows from the renegotiated or revised contract with the original effect
interest rate of the financial liabilities. All costs or expenses incurred in the revision or renegotiation of the contract will
252Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
be reflected in the adjusted book value of financial liabilities after such revision and will be amortized during the
remaining period of the revised financial liabilities.
11.4.2 Derecognition of financial liabilities
When the existing obligations of a financial liability have been wholly or partially discharged such financial liability or
such part of it will be derecognized. When the Group (as borrower) and the lender enter into an agreement to undertake
new financial liabilities for replacing the original financial liabilities if substantive difference exists in the contractual
terms between the new financial liabilities and the original financial liabilities the Group should derecognize the original
financial liabilities while at the same time recognizes the new financial liabilities.When a financial liability is wholly or partially derecognized the difference between the book value of the derecognized
portion and the consideration paid (including non-cash asset transferred out or new financial liabilities undertaken) will
be accounted in the profit and loss of the current period.
11.4.3 Equity instrument
Equity instrument refers to a contract which can prove the ownership of remainder interest in assets after deducting all
liabilities of the Group. The Group issues (including refinances) repurchases sells or cancels equity instruments for
treatment of changes in equity. The Group will not recognize changes in the fair value of equity instruments. Trading
expenses relating to equity transactions will be deducted from equity.The Group's distribution to holder of equity instrument is treated as profit distribution the share dividends paid out will
not affect the total equity of shareholders.
11.5 Derivatives
Derivatives include foreign exchange forward contract among others. Derivatives are measured at fair value initially on
the date of signing the relevant contract and will be measured at fair value for subsequent measurement.
11.6 Offsetting between financial assets and financial liabilities
When the Group has legal right to offset the recognized financial assets and financial liabilities and such legal right is
enforceable currently while at the same time the Group plans to perform netting settlement or to liquidate the financial
asset and repay the financial liability at the same time the amount after offsetting between the financial asset and financial
253Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
liability will be presented in the balance sheet. Save as said above the financial asset and financial liability are presented
separately in the balance sheet without offsetting each other.
11.7 Reclassification of financial instruments
When the Group changes its business model for managing financial assets all affected underlying financial assets will be
reclassified. All financial liabilities are not reclassified.The Group reclassifies financial assets and applies the prospective application method for relevant accounting treatment
from the date of reclassification (i.e. the first day of the first reporting period after the change in the business model that
led to the reclassification of financial assets).If the Group reclassifies a financial asset measured at amortized cost to a financial asset at fair value through other
comprehensive income it is measured at the fair value of the financial asset at the date of reclassification. The difference
between the original carrying amount and the fair value is recognized in other comprehensive income.
12. Notes receivable
12.1 Combination category and determination basis of bad debt provision according to credit risk characteristics
Except for the notes receivable for which individual credit risk assessments are conducted the Group classifies notes
receivable into different portfolios based on the nature of the acceptor.Portfolio categories Determination basis
Bank acceptance bill Notes receivable with acceptors are banks
Non-bank acceptance bill Notes receivable with acceptors are non-banks
12.2 The criteria for determining individual provisioning for bad debts
The Group separately assesses the credit risk of the notes receivable with a single significant amount and the debtor with
severe financial difficulties
13. Accounts receivable financial lease receivables and installment receivables in long-term receivables
13.1 Combination category and determination basis of bad debt provision according to credit risk characteristics
Except for the accounts receivable for which individual credit risk assessments are conducted the Group categorizes
accounts receivable into Portfolio A Portfolio B and Portfolio C based on shared risk characteristics. Common credit risk
characteristics adopted by the Group include the geographical location and business object.
254Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
For long-term receivables the common credit risk profile adopted by the Group includes business objects.
13.2 Calculation of ageing based on age-based recognition of a portfolio of credit risk characteristics
The Group uses the ageing as a credit risk characteristics and use impairment matrix to determine the credit losses of its
accounts receivable and long-term receivables related to the financial lease and installment collection business. The ageing
is calculated from the end of the credit period. The ageing is calculated on a continuous basis when the terms and conditions
of accounts receivables and long-term receivables are modified but do not result in derecognition of them.
13.3 The criteria for determining individual provisioning for bad debts
The Group assesses the credit risk of accounts receivable with significant individual amounts and significant financial
difficulties of debtors and financial lease receivables and installment receivables in long-term receivables individually
14. Receivables for Financing
14.1 Combination category and determination basis of bad debt provision according to credit risk characteristics
Except for the receivables for financing for which individual credit risk assessments are conducted the rest of receivables
for financing includes bank acceptance bills and certificates of accounts receivable claims. Given the low likelihood of
incurring significant losses due to default the Group considers that the bank acceptance bills and certificates of accounts
receivable claims it holds do not pose significant credit risk.
14.2 The criteria for determining individual provisioning for bad debts
This Group individually assesses the credit risk of financing of accounts receivable where the amount is material and the
debtor has encountered severe financial difficulties.
15. Other receivables
15.1 Combination category and determination basis of bad debt provision according to credit risk characteristics
Except for other receivables for which individual credit risk assessments have been conducted the Group categorizes other
receivables into different groups according to the nature of the amounts and determines credit losses on a portfolio basis.
255Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
15.2 The criteria for determining individual provisioning for bad debts
The Group individually assesses the credit risk of other receivables that are material in amount and where the debtor has
encountered severe financial difficulties.
16. Inventories
16.1 Categories of inventories valuation method count system amortization method for low cost and short-lived
consumable items and packaging materials
16.1.1 Categories of inventories
The Group's inventory mainly includes finished products products in process raw materials and contract performance
costs. Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.
16.1.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the moving weighted average method.
16.1.3 Inventory count system
The perpetual inventory system is maintained for stock system.
16.1.4 Amortization method for low cost and short-lived consumable items and packaging materials
Packaging materials and low cost and short-lived consumable items are amortized using the immediate write-off method.
16.2 The recognition standard and accounting method of inventory falling price reserves
At the balance sheet date inventory is measured at the lower of cost or net realizable value. When the net realizable
value is lower than the cost the inventory falling price reserves is withdrawn.
256Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Net realizable value is the amount of the estimated selling price of inventory in day-to-day activities less the estimated
costs to be incurred at completion estimated selling expenses and related taxes. The determination of net realizable
value of inventories is based on firm evidence obtained taking into account the purpose for which the inventories are
held and the effect of events after the balance sheet date.After the provision for inventory depreciation if the factors affecting the previous reduction of inventory value have
disappeared resulting in the net realizable value of the inventory being higher than its carrying value the amount of the
original provision for inventory depreciation shall be reversed and the amount of the reversal shall be included in the
current profit or loss.
16.3 The combination category and the basis for determining the inventory falling price reserves and the basis for
determining the net realizable value of different categories of inventories
The Group makes provision for inventory falling price reserves by inventory category for inventories with a large
quantity and low unit price. For inventories manufactured and sold in the same region having the same or similar use or
purpose and difficult to measure separately from other items provision for inventory depreciation shall be made on a
consolidated basis. The Group makes provision for inventory falling price reserves according to the nature and status of
inventories.
17. Contract Assets
17.1 Method and standard for determination of contract assets
Contract assets refer to the Group's right to consideration in exchange for goods or services that the Group has transferred
to a customer when that right is conditioned on something other than the passage of time. The Group's unconditional (i.e.depending on the passage of time only) right to receive consideration from the customer is separately presented as
receivables.
17.2 Combination category and determination basis of bad debt provision according to credit risk characteristics
Consistent with accounts receivable based on common risk characteristics the Group provides for credit losses on a
portfolio basis and the common credit risk characteristics adopted include the geographical location and business object.
17.3 The criteria for determining individual provisioning for bad debts
The Group individually assesses the credit risk of contract assets that are material in amount and where the debtor has
encountered significant financial difficulties.
257Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
18. Long-term Equity Investment
18.1 Basis for determining joint control and significant influence over investee
Control is the power to govern an entity through participating in relevant activities of the investee; the investor is able to
obtain variable benefits from its activities and at same time to use the control rights on the investee to influence the
amount of returns. Joint control means that joint control for certain arrangement in accordance with relevant agreements;
activities relevant to the arrangement cannot be decided until obtaining the unanimous consent of parties sharing control
right. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is
not control or joint control over those policies. When determining whether an investing enterprise is able to exercise
control or significant influence over an investee the effect of potential voting rights of the investee such as current
convertible debts current executable warrants etc. held by the investing enterprises or other parties shall be considered.
18.2 Determination of initial investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control
the shares of merged party's book value of owners' equity in the final controlling party consolidated financial statements
obtained on the merger date shall be considered as the initial investment cost of long-term equity investment. The
differences between the initial investment cost of long-term equity investment and the paid cash the transferred non-cash
assets and the book value of the assumed debts are adjusted against the capital surplus; if the capital surplus is not sufficient
to be offset the remaining balance is adjusted against retained earnings. In the case of issued equity securities treated as
consolidation consideration share of book value of owner's equity of merged party in the final controlling party
consolidated financial statements is regarded as initial investment cost of long-term equity investments on the date of
consolidation; capital reserve shall be adjusted in accordance with taking total nominal value of issued share as capital
share the difference between the initial investment cost of long-term equity investments and total book value of issued
shares; In case the capital reserve is not enough for writing down the retained earnings shall be adjusted.For a long-term equity investment acquired through business combination not involving enterprises under common control
and the merging cost confirmed on the purchased date are regarded as the initial investment cost. In the case that the equity
of the acquiree is obtained through multiple deals in stages to finally form the business combination not under the common
control the business combination shall be handled differently based on whether it is "package deal": where it is package
deal the Company accounts each deal as a deal to obtain the control. If the deal is not a "package deal" the sum of the
carrying amount of the equity investment of the acquiree plus the cost of the new investment shall be used as the initial
investment cost of the long-term equity investment calculated according to the cost method. The equity originally held is
258Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
accounted for by the equity method and the relevant other comprehensive income will not be accounted for the time being.The intermediate expenses made by the combining party or purchaser for audit legal service assessment and other
management related expenses during the business merger should be included into the current profit and loss as it happens.Long-term equity investment obtained by other means other than long-term equity investment formed by business
combination shall be initially measured at cost.
18.3 Subsequent measurement and recognition of profit or loss
18.3.1 Long-term equity investment accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the Company's financial
statements. A subsidiary is an investee that is controlled by the Group.The long-term equity investment accounted by the cost method shall be measured at its initial investment cost. If there are
additional investments or disinvestments the long-term equity investment cost shall be adjusted. Income from the
investment in the current period shall be recognized in accordance with the cash dividends or profits declared and issued
by the investee.
18.3.2 Long-term equity investment accounted for using the equity method
Except for investments in associates and joint ventures that are wholly or partly classified as holding assets for sale the
Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over
which the Group has significant influence and a joint venture is an entity over which the Group can only exercise joint
control along with other investors on the investee's net assets.Under the equity method where the initial investment cost of a long-term equity investment exceeds the Group's share of
the fair value of the investee's identifiable net assets at the time of acquisition no adjustment is made to the initial
investment cost. Where the initial investment cost is less than the Group's share of the fair value of the investee's
identifiable net assets at the time of acquisition the difference is recognized in profit or loss for the period and the cost of
the long-term equity investment is adjusted accordingly.
259Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Under the equity method the Group recognizes its share of the net profit or loss and other comprehensive income of the
investee for the period as investment income or loss and comprehensive income for the period meanwhile the book value
of the long-term equity investment shall be adjusted; The Group shall accordingly reduce the book value of the long-term
equity investment in terms of the part that shall be enjoyed according to the profit or cash dividends declared by the
invested unit to be distributed; For other changes in the owners' equity of the invested unit other than net profits and losses
other comprehensive incomes and the profit distribution the book value of long-term equity investment shall be adjusted
and be included into the capital reserves. The Group shall on the ground of the fair value of all identifiable assets of the
invested entity when it obtains the investment recognize the attributable share of the net profits and losses of the invested
entity after it adjusts the net profits of the invested entity. If the accounting policies and accounting periods adopted by the
invested unit are different from those adopted by the Group the adjustment shall be made for the financial statements of
the invested unit in accordance with the accounting policies and accounting periods of the Group to recognize the
investment income and other comprehensive incomes. For the transaction incurred between the group and associated
enterprises and joint ventures invested or sold assets don't constitute a business the part that doesn't achieve internal
transaction profit or loss or belongs to the Group calculated according to the enjoyed ratio will be offset and the profit or
loss on investment will be confirmed on this basis. But for the unrealized loss arising from the internal transaction between
the Group and the invested unit if such transaction loss is defined as the impairment loss of the transferred asset they
cannot be offset.When the Group determines the net loss of the invested unit that shall be shared it is necessary to write-down the book
value of the long-term equity investment and other long-term equities substantially constituting the net investment of the
invested unit to zero as a limit. Besides if the Group is obliged to bear extra loss for the invested unit it shall be necessary
to determine provisions and record them to current investment loss in compliance with obligations expected to be assumed.If the invested unit realizes any net profits later the Group shall after the amount of its attributable share of profits offsets
its attributable share of the un-confirmed losses resume recognizing its attributable share of profits.
18.4 Disposal of long-term equity investments
On disposal of a long term equity investment the difference between the proceeds actually received and the carrying
amount is recognized in profit or loss for the period.
19. Fixed Assets
19.1 Recognition criteria for fixed assets
260Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Fixed assets are tangible assets that are held for use in the production or supply of goods or services for rental to others
or for administrative purposes and have useful lives of more than one accounting year. A fixed asset is recognized only
when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be
measured reliably. Fixed assets are initially measured at cost.Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that
economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured
reliably. Meanwhile the carrying amount of the replaced part is derecognized. Other subsequent expenditures are
recognized in profit or loss in the period in which they are incurred.
19.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method since the month subsequent to the one in
which it is ready for intended use. The depreciation method depreciation period estimated residual value rate and annual
depreciation rate of each category of fixed assets are as follows:
Depreciation
Item Depreciation period Residual value rate (%) Annual depreciation rate (%)
method
Straight-line
Buildings and Constructions 20 years 10 4.5
depreciation
Straight-line
General-purpose equipment 3-5 years 10 18.0-30.0
depreciation
Straight-line
Special-purpose equipment 3-5 years 10 18.0-30.0
depreciation
Straight-line
Transportation vehicles 5 years 10 18.0
depreciation
Estimated net residual value of a fixed asset is the estimated amount that the Group would currently obtain from disposal
of the asset after deducting the estimated costs of disposal if the asset were already of the age and in the condition
expected at the end of its useful life.
19.3 Other explanations
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal the
fixed asset is derecognized. When a fixed asset is sold transferred retired or damaged the amount of any proceeds on
261Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
disposal of the asset net of the carrying amount and related taxes is recognized in profit or loss for the period.The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at
least once at each financial year-end and account for any change as a change in an accounting estimate.
20. Construction in Process
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures during
the construction period borrowing costs capitalized before it is ready for intended use and other relevant costs.Construction in progress is not depreciated. Construction in progress is transferred to a fixed asset when it is ready for
intended use. The standards and time points for carrying forward various types of projects under construction to fixed
assets are as follows:
Item Standards and timing of carry-over as fixed assets
The main construction project and supporting projects have been substantially completed
Buildings and Constructions
and reached a state of practical usability.Equipments to be installed and Relevant equipment and other supporting facilities have been installed; after debugging the
commissioned equipment can maintain normal and stable operation for a period of time.
21. Borrowing Costs
Borrowing costs directly attributable to the acquisition & construction or production of assets eligible for capitalization
shall be capitalized when assets expenditure borrowing costs and necessary construction or production for bringing assets
to expected conditions for use or marketing have taken place; when construction or production of assets ready for
capitalization reach to expected conditions for use or marketing capitalization shall be ceased. Other borrowing expenses
are recognized as expenses in the current period.Where funds are borrowed under a specific-purpose borrowing the amount of interest to be capitalized is the actual interest
expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before
being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed
under general-purpose borrowings the Group determines the amount of interest to be capitalized on such borrowings by
applying a capitalization rate to the weighted average of the excess of cumulative expenditures on the asset over the
amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest rates applicable to
the general-purpose borrowings. During the capitalization period exchange differences related to a specific-purpose
262Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
borrowing denominated in foreign currency are all capitalized. Exchange differences in connection with general-purpose
borrowings are recognized in profit or loss in the period in which they are incurred.
22. Intangible Assets
22.1 Service life and its basis for determination estimate amortization method or review procedure
Intangible assets include land use right intellectual property (IP) application software and franchise etc.An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for use its
original cost is amortized over its estimated useful life using the straight-line method. The amortization method service
life and net residual value of various intangible assets are shown as follows:
Salvage value
Class Amortization method Service life (year) Determination basis
rate (%)
Land use right Straight-line method 40 or 50 years Term of use of property rights -
IP Right Straight-line method 5-10 Years Expected economic benefit life -
Application Software Straight-line method 5-10 years Expected economic benefit life -
Franchised operating
Franchise Straight-line method Franchise contract duration -
period
The fees charged by the Group to those who acquire public products and services during the project operation period do
not constitute an unconditional right to receive cash. When the PPP project assets are ready for their intended use the
difference between the consideration amount of the relevant PPP project assets or the amount of confirmed construction
income and the amount of cash (or other financial assets) that is entitled to receive a determinable amount will be
recognized as intangible assets.For an intangible asset with a finite useful life the Group reviews the useful life and amortization method at the end of the
year and makes adjustments when necessary.
22.2 The accounting treatment methods and the collection scope of research and development expenditure
Expenditure during the research phase is recognized as an expense in the period in which it is incurred.
263Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Expenditure during the development phase that meets all of the following conditions at the same time is recognized as
intangible asset. Expenditure during development phase that does not meet the following conditions is recognized in profit
or loss for the period.
(1) It is technically feasible to complete the intangible asset so that it will be available for use or sale;
(2) The Group has the intention to complete the intangible asset and use or sell it;
(3) The Group can demonstrate the ways in which the intangible asset will generate economic benefits including the
evidence of the existence of a market for the output of the intangible asset or the intangible asset itself or if it is to be used
internally the usefulness of the intangible asset;
(4) The availability of adequate technical financial and other resources to complete the development and the ability to use
or sell the intangible asset; and
(5) The expenditure attributable to the intangible asset during its development phase can be reliably measured.
If the expenditures cannot be distinguished between the research phase and development phase the Group recognizes all
of them in profit or loss for the period. The costs of the intangible assets generated by internal development activities only
include the total expenditure incurred from the time point when the capitalization conditions are available to the point
when the intangible assets are used for their intended purposes; for the expenditure that already becomes an expenditure
in the profit and loss statement before the capitalization conditions are available during development of the same intangible
asset no adjustment will be made.The aggregate scope of the Group's R&D expenses includes employee compensation for personnel directly engaged in
R&D activities materials and service fees directly consumed by R&D activities depreciation expenses and amortization
expenses of intangible assets for equipment and equipment used in R&D activities intermediate testing expenses for R&D
activities new product design expenses and travel transportation and communication expenses required for research and
test development. The Group uses the passing of feasibility studies and the completion of R&D project projects after
evaluation as the specific criteria for classifying R&D projects into research and development phases.
23. Long-term Assets Impairment
The Group assesses at each balance sheet date whether there is any indication that the long-term equity investment fixed
assets construction in process and intangible assets with a finite useful life may be impaired. If there is any indication
that such assets may be impaired recoverable amounts are estimated for such assets. Intangible assets with indefinite
useful life and intangible assets not yet available for use are tested for impairment annually irrespective of whether there
is any indication that the assets may be impaired.Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an
individual asset the recoverable amount of the asset group to which the asset belongs will be estimated. The recoverable
264Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
amount is determined by the higher of 1) net amount of fair value of the asset or asset group deducted by the disposal
expenses; or 2) the present value of the expected future cash flows of the asset or asset group.If the recoverable amount of an asset or an asset group is less than its carrying amount the deficit is accounted as an
impairment provision and is recognized in profit or loss for the period.Goodwill impairment test shall be conducted at the end of each year at least. Goodwill impairment test shall be conducted
in accordance with the concerned asset group or asset portfolio. That is to allocate the book value of goodwill to the asset
group or asset portfolio that is expected to benefit from the synergies of the combination in a reasonable way from the date
of purchasing. When recoverable amount of apportion-included asset group or asset portfolio of goodwill is less than book
value of goodwill impairment loss shall be recognized. Firstly amount of impairment loss shall be apportioned to the
book value of goodwill of the said asset group or asset portfolio and then book value of other assets except for goodwill
in asset group or asset portfolio shall be abated in proportion.Once the impairment loss of such assets is recognized it cannot be reversed in any subsequent period.
24. Long-term Deferred Expenses
Long-term deferred expenses are the expenses that are already incurred but will be shared in the current reporting period
and later periods with amortization term of more than one year mainly for the expenses on betterment of leased fixed
assets and employee housing loan deferred interest. Long-term deferred expenses are evenly amortized in installments in
three to five years during the expected benefit period.
25. Contract Liabilities
Contract liabilities refer to the obligation of the Group to transfer goods or services to customers for consideration received
or receivable from customers. Contract assets and contract liabilities under the same contract are presented in net terms.
26. Employee Compensation
26.1 Accountant Arrangement Method of Short-term Remuneration
During accounting period when the Group's employees provide services actual short-term remuneration shall be
recognized as the liabilities and current profit and loss or relevant asset cost. The Group's employee benefits and welfare
265Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
are included into current profit and loss or relevant asset cost according to actual amount occurred during the period. If
the employee benefits and welfare is non-monetary it shall be measured according to its fair value.During the accounting period that the employees service the Group the Group pays social insurance premiums such as
medical insurance premium industrial injury insurance premium maternity insurance premium and housing accumulation
fund for its employees as well as labor union expenditure and employee education expenses calculated and withdrawn
according to the regulations corresponding employee remuneration amount shall be calculated and determined in
accordance with specified calculation and withdrawal basis and proportion to recognize corresponding liabilities and
included into the current profit and loss or relevant asset cost.
26.2 Accountant Arrangement Method of Post-employment Benefits
All post-employment benefits shall be considered as the defined contribution plan.In the accounting period when the employee serves for the Group the deposited amount calculated based on defined
contribution plan shall be recognized as liabilities and included in the current profit and loss or relevant asset cost.
26.3 Accountant Arrangement Method of the Termination Benefits
Where the Group provides termination benefits the employee remuneration liabilities caused by such termination benefits
will be determined as the following date whichever is earlier and will be included in the current profit and loss: 1) When
the Group cannot unilaterally withdraw the termination benefits provided due to labor relation cancellation plan or
employee lay-off suggestion; or 2)when the Group determines costs or expenses in relation with the restructuring of the
paid termination benefits.
27. Provisions
Provisions are recognized when the Group has a present obligation related to a contingency such as products quality
assurance etc. And it is probable that an outflow of economic benefits will be required to settle the obligation and the
amount of the obligation can be measured reliably.The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at
the balance sheet date taking into account factors pertaining to a contingency such as the risks uncertainties and time
value of money. Where the effect of the time value of money is material the amount of the provision is determined by
266Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
discounting the related future cash outflows.The Group estimates product quality guarantee deposits based on expected claim rates maintenance and replacement costs
etc.
28. Share-based Payment
Share-based payment refers to a transaction in which the Group grants the equity instruments or undertakes the equity-
instrument-based liabilities in return for services from employees. The Group's share-based payment is an equity-settled
share-based payment.
28.1 Equity-settled share-based payments
Equity-settled share-based payments in exchange for services rendered by employees are measured at the fair value of the
equity instruments granted to employees at the grant date. Such amount is recognized as related costs or expenses on a
straight-line basis over the vesting period with a corresponding increase in capital reserve.At each balance sheet date during the vesting period the Group makes the best estimate according to the subsequent latest
information of change in the number of employees who are granted with options that may vest etc. and revises the number
of equity instruments expected to vest. The effect of the above estimate is recognized as related costs or expenses with a
corresponding adjustment to capital reserve.
28.2. Accounting treatment related to implementation modification and termination of share-based payment arrangement
In case the Group modifies a share-based payment arrangement if the modification increases the fair value of the equity
instruments granted the Group will include the incremental fair value of the equity instruments granted in the measurement
of the amount recognized for services received. If the modification increases the number of the equity instruments granted
the Group will include the fair value of additional equity instruments granted in the measurement of the amount recognized
for services received. The increase in the fair value of the equity instruments granted is the difference between fair value
of the equity instruments before and after the modification on the date of the modification. If the Group modifies the terms
or conditions of the share-based payment arrangement in a manner that reduces the total fair value of the share-based
payment arrangement or is not otherwise beneficial to the employee the Group will continue to account for the services
received as if that modification had not occurred other than a cancellation of some or all the equity instruments granted.
267Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
If cancellation of the equity instruments granted occurs during the vesting period the Group will account for the
cancellation of the equity instruments granted as an acceleration of vesting and recognize immediately the amount that
otherwise would have been recognized over the remainder of the vesting period in profit or loss for the period with a
corresponding recognition in capital reserve. When the employee or counterparty can choose whether to meet the non-
vesting condition but the condition is not met during the vesting period the Group treats it as a cancellation of the equity
instruments granted.
29. Revenue
The Group's revenue consists of product sales revenue engineering construction revenue and cloud services and other
service revenue.When (or as) a performance obligation in a contract was satisfied i.e. when (or as) the customer obtains control of relevant
goods or services the Group recognizes as revenue the amount of the transaction price that is allocated to that performance
obligation. A performance obligation is the Group's commitment to transfer to a customer a good or service (or a bundle
of goods or services) that is distinct in a contract with the customer.The Group evaluates the contract on the commencement date of the contract identifies the individual performance
obligations contained in the contract and determines whether each individual performance obligation is to be performed
over a certain period of time or at a certain point in time. Revenue is recognized over time by reference to the progress
towards complete satisfaction of the relevant performance obligation if one of the following criteria is met: (1) the customer
simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs; (2) the
Group's performance creates or enhances an asset that the customer controls as the Group performs; or (3) the Group's
performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to
payment for performance completed to date. Otherwise revenue is recognized at a point in time when the customer obtains
control of the distinct good or service.If the contract contains two or more performance obligations the Group allocates the transaction price to each single
performance obligation on the contract start date in accordance with the relative proportion of the individual selling price
of the goods or services promised by each single performance obligation. However if there is strong evidence that the
contract discount or variable consideration is only related to one or more (but not all) performance obligations in the
contract the Group allocates the contract discount or variable consideration to the relevant one or more performances
obligation. Individual selling price refers to the price at which the Group sells goods or services to customers separately.Where the individual selling price cannot be directly observed the Group comprehensively considers all relevant
information that can be reasonably obtained and uses the observable input value to the maximum to estimate the individual
selling price.
268Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The Group judges whether the Group's identity is the principal or agent when engaging in transactions based on whether
it has control over the goods or services before transferring the goods or services to customers. If the Group is able to
control the goods or services before transferring them to customers the Group is the principal responsible person and
revenue is recognized based on the total amount of consideration received or receivable. Otherwise the Group acts as an
agent and recognizes revenue based on the amount of commission or handling fee to which it is expected to be entitled
which is determined based on the net amount of the total consideration received or receivable less the consideration payable
to other related parties or based on a predetermined commission amount or proportion etc.
29.1 Revenue from sale of products
Product sales revenue is the revenue from sales of video surveillance products smart home products robotics products
and other products of the Group.According to the contract the Group recognizes revenue when the control of the product is transferred that is when the
product is handed over to the agreed carrier or delivered to the place designated by the other party for receipt. As the
delivery of the products to the customer represents the right to receive the contract consideration unconditionally and the
maturity of the payment is only subject to the passage of time the Group recognises a receivable when the product is
delivered to the customer. When a customer prepays for a purchase the Group recognises the transaction amount received
as a contractual liability until revenue is recognized when the product is delivered to the customer.There is variable consideration in the product sales contracts between the Group and its distributors. The Group determines
the best estimate of the variable consideration based on the expected delivery time quantity and price of the products. The
transaction price including variable consideration does not exceed the amount by which the accrued recognized revenue
is unlikely to be materially reversed at the time the relevant uncertainty is eliminated. At each balance sheet date the
Group re-estimates the amount of variable consideration that should be included in the transaction price.When the Group sells products to distributors it provides an additional purchase option under sales incentives i.e. the
Group's distributors can accumulate sales rebates when purchasing specific products from the Group and use them to offset
the price of goods in future purchases. These sales rebates provide resellers with discounts on their future purchases that
are not available to similar customers. As a result the commitment to provide the dealer with a credit for future purchases
is a separate performance obligation that is recognized as a contractual liability at the time of the sale transaction at the
transaction price apportioned to the fair value of the rebate and revenue is recognized when the reseller uses the sales
rebate offset.The Group provides quality assurance for the products sold and the quality assurance related to the products sold by the
Group cannot be purchased separately but is to assure customers that the products sold meet the established standards so
the Group carries out accounting treatment in accordance with the provisions of Accounting Standard for Business
Enterprises No. 13 - Contingencies.
269Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
For product sales of the Group with sales return terms attached as the customer obtains ownership of related products the
Group recognizes revenue in accordance with the consideration (excluding expected refund amounts due to sales returns)
that the Group is expected to receive due to the transfer of products or services to the customer and recognizes expected
liabilities in accordance with expected refund amounts due to sales returns. The remaining amount subsequent to
deduction of expected costs from collecting the products (including the decrease in value of the returned products) is
recognized as an asset in accordance with the carrying amount during the expected transfer of returned products after
deducting the costs of the above net assets carried forward.Some of the Group's product sales contracts have instalment payment clauses and there is a significant financing
component in the contract the Group determines the transaction price based on the amount payable in cash when the
customer assumes control of the products. The difference between the transaction price and the contract consideration is
amortized using the effective interest rate method during the contract period. On the contract commencement date the
Group does not consider the significant financing components in the contract if the interval between the customer obtaining
control of the products and the price being paid by the customer is not more than one year.
29.2 Project construction revenue
Project construction revenue is the revenue from constructions related to intelligent security solution projects and PPP
Projects provided by the Group.For project construction the customer is able to control the assets under construction in the course of the Group's
performance and the Group regards them as a performance obligation to be performed within a certain period of time and
the revenue is recognized according to the performance progress unless the performance progress cannot be reasonably
determined.The Group uses the output method to determine the progress of performance which is to determine the progress of
performance based on the value of engineering construction services transferred to customers. If the progress of
performance cannot be reasonably determined and the costs incurred by the Group are expected to be compensated
revenue is recognized according to the amount of costs incurred until the progress of performance can be reasonably
determined.The Group's customers make milestone payments with the Group in respect of projects in accordance with the terms of
the contract. The Group first recognizes the completed performance obligations as contract assets and reclassifies them as
accounts receivable when the payment milestone is reached; if the contract price received or receivable by the Group
exceeds the accumulated performance obligations completed the excess part is recognized as a contract liability. The
Group's contract assets and contractual liabilities under the same contract are presented on a net basis.Some of the Group's construction contracts have long-term payment clauses and there are significant financing elements
in the contracts. The Group determines the transaction price on the basis of the amount payable in cash on the assumption
270Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
that the customer will take control of the asset-building. The difference between the transaction price and the contract
consideration is amortized over the life of the contract using the effective interest method. At the commencement date of
the contract the Group expects that the interval between the customer obtaining control of the service and the customer
paying the price will not exceed one year regardless of the significant financing component existing in the contract.The Group as a private capital entered into a PPP project contract with the government and provided construction
operation maintenance and other services. The Group identifies construction services operation services and maintenance
services as individual performance obligations in the contract and allocates the transaction price to each performance
obligation based on the relative proportion of the stand-alone selling price of each performance obligation. When providing
construction services or outsourcing projects to other parties The identity of the Group is the principal responsible person
and then accounting for construction revenue to confirm the contract assets is made. After the PPP project is ready for use
the Group recognizes revenue related to operation and maintenance services.
29.3 Cloud service and other service revenue
Revenue from cloud services and other services refers to cloud services such as storage services video services and
telephone services provided by the Group maintenance services related to security projects and other services etc.For cloud services and other services the economic benefits brought by the customer are obtained and consumed at the
time of the Group's performance and the Group regards them as a performance obligation to be performed within a certain
period and the revenue is recognized according to the performance progress during the period of providing services. The
Group adopts the output approach to determine the performance progress i.e. the performance progress is determined
based on the value of the services transferred to the customer to the customer. The customer paid for the cloud services in
advance at the time of purchase so the Group recognized the cloud service payment received at the time of the transaction
as a contractual liability and recognized the revenue according to the performance progress during the period of the
provision of the services. The Group presents contract assets and contract liabilities under the same contract on a net basis.For the provision of operation and maintenance services to customers the economic benefits obtained and consumed by
the customers at the same time as the performance of the contract by the Group shall be regarded as the performance
obligation to be performed within a certain period of time and the revenue shall be recognized according to the
performance progress. The Group's customers make milestone payments with the Group for O&M services in accordance
with the terms of the contract. The Group first recognizes completed performance obligations as contract assets and
reclassifies them as accounts receivable when payment milestones are reached and if the contract price received or
receivable by the Group exceeds the accumulated performance obligations completed the excess part is recognized as a
contract liability. The Group's contract assets and contractual liabilities under the same contract are presented on a net
basis.For the provision of operation and maintenance services to customers the economic benefits obtained and consumed by
the customers at the same time as the performance of the contract by the Group shall be regarded as the performance
271Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
obligation to be performed within a certain period of time and the revenue shall be recognized according to the
performance progress. The Group's customers make milestone payments with the Group for O&M services in accordance
with the terms of the contract. The part of the Group that has obtained the unconditional right to receive payment is
recognized as accounts receivable and the remainder is recognized as contract assets and if the contract price received or
receivable by the Group exceeds the accumulated performance obligations completed the excess part is recognized as a
contract liability. The Group's contract assets and contractual liabilities under the same contract are presented on a net
basis.
30. Cost of Contract
30.1 Cost of obtaining a contract
Incremental costs incurred by the Group to obtain a contract (that is costs that would not have occurred without a contract)
and expected to be recovered are recognized as an asset and amortized using the same basis as revenue recognition for
the goods or services to which the asset relates and included in current profit or loss. If the amortization period of the
asset does not exceed one year it is included in current profit or loss when it occurs. Other expenses incurred by the Group
in order to obtain the contract shall be included in current profit or loss when incurred unless it is clearly borne by the
customer.
30.2 Cost of contract fulfillment
The cost of the Group's performance of a contract that does not fall within the scope of accounting standards other than
the revenue standard and meets the following conditions is recognized as an asset: (1) The cost is directly related to a
current or anticipated contract; (2) The cost increases the Group's resources for fulfilling performance obligations in the
future; (3) The cost is expected to be recovered. The aforesaid assets are amortized on the same basis as the recognition
of income from goods or services related to the assets and are included in the current profit or loss.The Group's asset in relation to contract costs are mainly contract performance costs and they are included in inventories
based on their current nature.
30.3 Impairment losses on assets related to contract costs
In determining impairment losses on assets related to contract costs impairment losses are first determined for other assets
recognized in accordance with other relevant ASBEs and related to the contract. Then for assets related to contract costs
whose carrying value is higher than the difference between the following two items the Group makes provision for
impairment for the excess to be recognized as asset impairment losses: (1) the remaining amount of consideration expected
to be obtained by the Group for the transfer of goods or services related to the asset; (2) the estimated costs to be incurred
in connection with the transfer of such relevant goods or services.
272Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
After provision for impairment is made for the asset related to contract costs if the difference between the above two items
is higher than the carrying value of the asset due to changes in the factors of impairment in previous periods the original
provision for impairment of the asset is reversed and included in the current profit or loss but the carrying value of the
asset after the reversal shall not exceed the carrying value of the asset on the reversal date assuming no provision for
impairment is made.
31. Governmental Subsidies
Government subsidies refer to the monetary and non-monetary assets obtained by the Group from the government for free.Government subsidies are recognized when they can meet the conditions attached to the government subsidies and can be
received.If a government subsidy is a monetary asset it shall be measured at the amount received or receivable.
31.1 Judgment basis and Accountant treatment of government subsidy related to assets
The government subsidies for some special subsidies and etc. are used for constructions and forms long-term assets and
therefore are categorized as government subsidy related to assets.A government grant related to an asset is recognized as deferred income and it should be evenly amortized to profit or
loss over the useful life of the related asset.
31.2 Judgment basis and accountant treatment of government subsidy related to income
The Group receives government subsidies including subsidies for special projects and Value-Added-Tax refund etc. which
are used to compensate the group-related costs or losses and therefore are categorized as government subsidy related to
income.For a government grant related to income if the subsidy is a compensation for related expenses or losses to be incurred in
subsequent periods it is recognized as deferred income and recognized in profit or loss over the periods in which the
related costs or losses are recognized; If the subsidy such as VAT refund is a compensation for related expenses or losses
already incurred it is recognized immediately in profit or loss for the period.
273Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
For government subsidies related to the Group's daily operations shall be booked into other income; for those not related
to the Group's daily operations shall be booked into non-operating income/expense.The policy-based preferential loan interest subsidy obtained by our group is directly allocated by the government to our
group and the corresponding interest subsidy offsets the relevant borrowing costs.
32. Deferred Tax Assets / Deferred Tax Liabilities
The income tax expenses include current income tax and deferred income tax.
32.1. Current Income Tax
At the balance sheet date current income tax liabilities (or assets) for the current and prior periods are measured at the
amount expected to be paid (or recovered) according to the requirements of tax laws.
32.2 Deferred Tax Assets and Deferred Tax Liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base or between the
nil carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined
according to tax laws deferred tax assets and liabilities are recognized through the balance sheet liability method.In general all temporary differences are recognized as the relevant deferred income tax. However for deductible
temporary differences the Group recognizes the relevant deferred tax assets to the extent that it is likely to obtain the
taxable income to offset the deductible temporary differences. In addition deferred tax assets or liabilities relating to the
initial recognition of goodwill as well as those arising from transactions that are neither a business combination nor affect
accounting profits and taxable income (or deductible losses) and do not result in equal taxable and deductible temporary
differences are not recognized.For deductible losses and tax credits that can be carried forward deferred tax assets are recognized to the extent that it is
probable that future taxable profits will be available against which the deductible losses and tax credits can be utilized.Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries except
where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the
274Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary
differences associated with such investments are only recognized to the extent that it is probable that there will be taxable
profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable
future.On the balance sheet date the deferred income tax assets and deferred income tax liabilities are measured at the applicable
tax rates in the period in which the related assets are recovered or the related liabilities are recovered in accordance with
the tax laws.Current and deferred tax expenses or income are recognized in profit or loss for the period except when they arise from
transactions or events that are directly recognized in other comprehensive income or in shareholders' equity in which case
they are recognized in other comprehensive income or in shareholders' equity; and when they arise from business
combinations in which case they adjust the carrying amount of goodwill.At the balance sheet date the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable
that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilized. Such
reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
32.3 Offset of Income Tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets
and settle the liabilities simultaneously current tax assets and current tax liabilities are offset and presented on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis and deferred tax assets and
deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets
and liabilities simultaneously in each future period in which significant amounts of deferred tax assets or liabilities are
expected to be reversed deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
33. Lease
Lease refers to a contract that conveys the right to use an asset for a period of time in exchange for consideration.
275Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The Group assesses whether a contract is or contains a lease at the inception date. The Group does not re-assess whether
a contract contains a lease unless the terms and conditions of the contract are changed.
33.1 The Group as the lessee
33.1.1 Separating components of lease
In case the contract contains one or more lease and non-lease components the Group separates each lease component and
non-lease component and allocates the consideration to the lease and non-lease components based on the proportion of
relative stand-alone prices of the components.
33.1.2 Right-of-use assets
The Group recognizes the right-of-use assets for leases on the commencement date of the lease term except for short-term
lease and lease of low-value assets. The commencement date of the lease term refers to the date from which the lessor
makes the leased assets available for use by the Group. Right-of-use assets are initially measured at cost. The cost includes:
Initial measurement amount of lease liabilities;
Amount of lease payment made at or before the commencement date of the lease less any lease incentives received;
Initial direct costs incurred by the Group;
An estimate of any costs to be incurred by the Group in dismantling and removing the underlying asset or restoring
the site on which it is located or restoring the leased assets to the conditions as agreed under the terms of the lease
excluding costs incurred to produce inventories.The Group calculates depreciation of the right-of-use assets in accordance with the relevant depreciation provisions of
Accounting Standards for Business Enterprises No. 4 - Fixed Assets. The right-of-use asset is depreciated over the shorter
of the lease term and the useful life of the right-of-use asset unless there is a transfer of ownership or purchase option
which is reasonably certain to be exercised at the end of the lease term.The Group determines whether the right-of-use assets are impaired and accounts for the identified impairment loss in
accordance with the provisions of Accounting Standards for Business Enterprises No. 8 - Impairment of Assets.
33.1.3 Lease liabilities
The Group initially measures the lease liability on the commencement date at an amount equal to the present value of the
lease payments during the lease term that are not paid at that date except short-term lease and lease of low-value assets.In calculating the present value of the lease payments the Group adopts the interest rate implicit in the lease as the discount
rate. The Group uses its incremental borrowing rate if the interest rate implicit in the lease cannot be readily determined.
276Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Lease payments refer to the payments made by the Group to the lessor in connection with the right to use the leased asset
during the lease term including:
Fixed payments including in-substance fixed payments less any lease incentives receivable;
The exercise price of a purchase option if the Group is reasonably certain to exercise that option;
Payments for terminating the lease if the lease term reflects the lessee exercising the option to terminate the lease;
Amounts expected to be payable by the Group under residual value guarantees.After the commencement date of the lease term the Group calculates interest expense of lease liabilities in each period of
lease term at fixed periodic rate and recognizes in the current loss and profit or relevant asset costs.After the commencement date of the lease term the Group remeasures the lease liability and adjusts the corresponding
right-of-use assets under the following circumstances. If the carrying value of the right-of-use assets has been reduced to
zero while the lease liability needs to be further reduced the Group will recognize the difference into the current loss and
profit:
In case of any change of the lease term or any change in the valuation of the purchase option the Group remeasures
the lease liability at the present value calculated based on the modified lease payments and the revised discount rate;
In the event of any change in the amount expected to be payable based on the residual value guarantees the Group
remeasures the lease liability at the present value calculated based on the changed lease payments and the original
discount rate.
33.1.4 Basis for judgment and accounting treatment of the lessee's simplified treatment of short-term leases and leases
of low-value assets
The Group has elected not to recognize the right-of-use assets and lease liabilities for short-term leases and leases of low-
value assets. Short-term lease refers to lease with a term no more than 12 months from the commencement date of lease
term and without purchase option. Lease of low-value assets refers to lease for single lease asset with low value when it
is new. The Group recognizes lease payments under short-term leases and leases of low-value assets as the current loss
and profit or the relevant asset costs on a straight-line basis over each period during the lease term.
33.1.5 Lease modification
In case of lease modification the Group makes accounting treatment of such lease change as a separate lease if all of the
following conditions are met:
Such lease modification increases the scope of the lease by adding the right to use one or more lease assets;
The increased consideration is commensurate with the stand-alone price for the increase in scope and any appropriate
adjustments to reflect the circumstances of the particular contract.
277Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Where accounting treatment is not made for lease modification as a separate lease at the effective date of lease
modification the Group reallocates the contract consideration after the modification redetermines the lease term and
remeasures the lease liability based on the present value calculated according to the modified lease payments and the
revised discount rate.In the event that the lease scope is decreased or the lease term is shortened as a result of the lease modification the Group
reduces the carrying amount of the right-of-use assets and recognizes the relevant gains or losses relating to the partial or
full termination of the lease in the income statement; for the lease liabilities remeasured due to other lease modifications
the Group adjusts the carrying amount of the right-of-use assets accordingly.
33.2 The Group as the lessor
33.2.1 Separating components of lease
In case the contract contains both lease and non-lease components the Group allocates the contract consideration in
accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenue on portion of
transaction prices based on the respective stand-alone prices of the lease component and the non-lease component.
33.2.2 Classification criteria and accounting treatment for leases as lessors
Finance lease is a lease that substantially transfers all the risks and rewards of incidental to ownership of an underlying
asset. Operating lease refers to the leases other than finance lease.
33.2.2.1 The Group records the operating lease business as the lessor
The Group recognizes the lease payments from operating leases as rental income on a straight-line basis for all periods
over the lease term. The Group's initial direct costs incurred in connection with operating leases is capitalized as incurred
recognized in the income statement over the lease term on the same basis as the lease income.
33.2.2.2 The Group records the finance lease business as the lessor
On the commencement date of the lease term the Group uses the net lease investment as the carrying value of the finance
lease receivables and derecognizes the finance lease assets. Net lease investment is the sum of present value of
unguaranteed residual value and lease payments receivable discounted at the interest rate implicit in lease on the
commencement date of the lease term.
278Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Lease payments receivable which refer to amounts receivable by the Group from the lessee for conveying the right to use
the leased assets during the lease term include:
Fixed payment including in-substance fixed payments by the lessee less any lease incentives payable;
The exercise price of a purchase option if the lessee is reasonably certain to exercise that option;
Payments for terminating the lease (if the lease term reflects the lessee exercising the option to terminate the lease;
Residual value guarantees provided to the Group by the lessee a party related to the lessee or a third party unrelated
to the lessor that is capable of discharging the obligations under the guarantee.The Group calculates and recognizes the interest income in each period of the lease term according to the fixed periodic
interest rate.In financial leases in which the Group acts as a manufacturer or distributor as the lessor on the commencement date of
the lease term the Group recognizes revenue based on the lower of the fair value of the leased assets and the present value
of the lease receipts discounted at the market rate and carries forward the cost of sales based on the balance of the carrying
amount of the leased assets after deducting the present value of the unsecured residual value.The costs incurred by the Group acting as a manufacturer or distributor as a lessor to obtain a financial lease are recognized
in profit or loss for the current period on the commencement date of the lease term.
33.2.3 Lease modification
In case of modification of the operating lease the Group accounts for it as a new lease as of the effective date of the
modification any prepaid or accrued lease payments relating to the original lease are considered as payments for the new
lease .In case of modification of the finance lease the Group accounts for the modification of a finance lease as a separate lease
if all of the following conditions are met:
The modification increases the scope of the lease by adding the right to use one or more lease assets;
The consideration for the lease increases by an amount that is commensurate with the stand-alone price for the
increase in scope and any appropriate adjustments to that price to reflect the circumstances of the particular contract.If a modification of finance lease is not accounted for as a separate lease the Group accounts for the changed lease under
the following circumstances:
If the modification becomes effective on the commencement date of the lease and the lease is classified as an
operating lease the Group accounts for it as a new lease from the effective date of the lease modification and measures
as the net lease investment prior to the effective date of the lease modification as the carrying value of the leased
asset.
279Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
If the modification becomes effective on the commencement date of the lease and the lease is classified as a finance
lease the Group accounts for it in accordance with the provisions of Accounting Standards for Business Enterprises
No. 22 - Recognition and Measurement of Financial Instruments regarding the modification or renegotiation of
contracts.
34. Debt Restructuring
34.1 Recognize debt restructuring obligation as a creditor
For debt restructuring carried out by modifying other terms the Group recognizes and measures the restructured claims in
accordance with the provisions of ASBE No. 22 - Recognition and Measurement of Financial Instruments.
35. Important Judgments while Applying Accounting Policy and Key Assumptions and Uncertainty Factors
Applied for Accounting Estimate
During the process of using accounting policy described in note (III) due to the uncertainty in operation activities the
group should judge estimate and assume the book value of the report items which may not be metered reliably. These
judgments estimates and assumptions are based on the historical experience of the Group's management and other related
factors. Differences may exist between the actual results and the Group's estimate.The Group regularly reviews the above judgments assumptions and estimations on the basis of continuous operation. If
the changes of accounting estimate only influence current period the influence amount will be affirmed during the
changing period; if it influences the current period and subsequent periods the influence amount will be recognized in the
current period and future period.- Key assumptions and uncertainties used in accounting estimate
On balance sheet date key assumptions and uncertainties for performing accounting estimates on book value of assets and
liabilities in subsequent future periods are:
Impairment provision for inventories
Except for contract performance costs inventories are measured at the lower of cost or net realizable value. For raw
materials the latest or future actual purchase price is used as the basis for determining the net realizable value; For products
in progress the net realizable value is determined by the actual selling price of the most recent or post-period finished
product less the estimated costs of the current similar type at the time of completion of the product the estimated sales
expenses and related taxes; For finished products the actual selling price of the latest or future finished product minus the
estimated selling expenses and related taxes will be incurred is used as the basis for determining the net realizable value.
280Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The Group will regularly conduct a comprehensive stocktaking to review the impairment circumstances on defective
obsoleted or slow-moving inventory if any; in addition the Group's management will regularly review the impairment
circumstance of inventory with long storage time according to the inventory aging.. Based on the above procedure the
Group's management deems that the full provision amounts have been withdrawn for inventory. For details please refer
to Note (V) 9.Impairment of accounts receivable
Except for accounts receivable whose credit losses are determined on the basis of individual basis the Group adopts an
impairment matrix on a portfolio basis to determine its expected credit loss of the relevant accounts receivable. The Group
divides the risk characteristics according to the region and object of its business and divides the relevant accounts
receivable into different portfolios. Based on the historical loss rate and consider reasonable and well-founded forward-
looking information in the industry the Group determines the proportion of corresponding loss reserves for different
portfolios of various types of accounts receivable. As of December 31 2024 based on the historically loss rate and consider
reasonable and well-founded forward-looking information in the industry the Group determines the corresponding
proportion of loss provision for accounts receivable. The amount of the provision for expected credit losses will change
as the estimation of the Group. The details on the provision for expected credit losses of the accounts receivable of the
Group are given in Note (V) 4.Useful life and predicted net residual value of fixed asset
The Group's estimation of fixed assets useful life is based on the historical experience of actual usable term of fixed assets
with similar properties and functions the estimation of predicted net residual value is the amount obtained currently by
the Group from the assets after deducting the anticipated disposal expense based on the anticipated status assuming the
conditions that fixed assets' predicted useful life expires and fixed assets are at the end of useful life. The Group shall
conduct the review on the predicted service life and predicted net residual value of fixed assets at least annually. For the
current reporting period the Group's management did not see signs either indicating a shortened or extended useful life of
the Group's fixed asset or indicating a change in predicted net residual value.Accrued liabilities of product quality warranty
Accrued liabilities of product quality assurance are costs and expenses incurred to meet the established standards of
product quality assurance obligations to customers in accordance with the product contract; the Group made such an
estimation according to the predicted claim rate repair and replacement cost of relevant products. The management deems
that the current estimation on accrued liabilities of product quality warranty is reasonable however the Group will
281Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
continue to review the conditions of product repairs and will conduct adjustment if any sign indicating the need to make
adjustments on accounting estimates.Deferred tax assets and deferred tax liabilities
Deferred income tax assets and deferred income tax liabilities are measured at the applicable income tax rate during the
period when the relevant asset is expected to be recovered or the relevant debt is expected to be paid off. The expected
applicable income tax rate is determined according to the relevant current tax regulations and the actual situation of the
Group. If the estimated income tax rate is different from the original estimate the management of the Group will adjust it.The realization of deferred income tax assets mainly depends on the actual future taxable income taxable temporary
differences and the effective tax rate of temporary difference in the future applicable years. If the actual taxable income
and taxable temporary differences in the future is less than the estimation or actual tax rate is lower than the estimation
then the confirmed deferred income tax assets will be reversed and confirmed in the income statement during the
corresponding period. If the actual taxable income and taxable temporary differences in the future is more than the
estimation or actual tax rate is higher than the estimation then the deferred tax assets that are partially unrecognized
deductible losses and deductible temporary differences will be recognized and confirmed in the income statement during
the corresponding period.Goodwill impairment
When testing goodwill for impairment a pre-tax interest discount rate that appropriately reflects the current market time
value of money and asset-specific risk is determined and the present value of the projected future cash flows of the relevant
asset group or combination of asset groups containing goodwill is calculated. When the future actual result is different
from the original estimation the result of the goodwill impairment test will alter.
36. Significant Alternation in Accounting Policy and Accounting Estimations
The Ministry of Finance issued the Interpretation No. 17 of Accounting Standards for Business Enterprises (the
"Interpretation No. 17") and No. 18 of Accounting Standards for Business Enterprises (the "Interpretation No. 18") on
Octorber 25 2023 and December 6 2024
Interpretation No. 17 of Accounting Standards for Business Enterprises
282Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Interpretation No. 17 standardizes the classification of current liabilities and non-current liabilities and the accounting
treatment of sale and leaseback transactions which is effective from January 1 2024.Regarding the classification of current liabilities and non-current liabilities
Interpretation No. 17 has revised and improved the principles for classifying current and non-current liabilities in
Accounting Standard for Business Enterprises No. 30 - Presentation of Financial Statements: It clarifies that if an enterprise
does not have the substantive right to defer the settlement of a liability beyond one year from the balance sheet date the
liability shall be classified as a current liability. The subjective possibility of whether the enterprise will exercise the above
right does not affect the classification of the liability's liquidity; It clarifies that for liabilities arising from loan
arrangements of an enterprise if the enterprise's right to defer the settlement of the liability beyond one year from the
balance sheet date depends on contractual terms the contractual terms to be followed by the enterprise before and on the
balance sheet date and those to be followed after the balance sheet date should be distinguished and whether there is the
right to defer the settlement of the liability on the balance sheet date should be considered; It clarifies that if the
counterparty to the enterprise's liability has the option to settle the liability with the enterprise's own equity instruments
and this option is classified as an equity instrument and recognized separately the relevant settlement terms are irrelevant
to the classification of the liability's liquidity; and it clarifies the information disclosure requirements for loan arrangements
subject to contractual terms and classified as non-current liabilities. Enterprises are also required to adjust comparative
period information when first applying this provision.After assessment the Group believes that the adoption of the above provisions will not have a material impact on the
Group's financial statements.Regarding the accounting treatment of sale and leaseback transactions
Interpretation No. 17 stipulates that where the transfer of assets in a sale and leaseback transaction is deemed a sale after
the commencement of the lease term the lessee shall not recognize gains or losses related to the right to use obtained from
the leaseback when determining the lease payments or the changed lease payments in the subsequent measurement of the
lease liability arising from the sale and leaseback. Where a lease modification results in a reduction of the scope of the
lease or a shortening of the lease term the lessee shall recognize any gains or losses related to the partial or full termination
of the lease in the current period profit or loss which is not subject to the above restriction. When an enterprise first applies
this provision it shall retrospectively adjust the sale and leaseback transactions conducted after the first application of
Accounting Standard for Business Enterprises No. 21 - Leases.
283Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
After assessment the Group believes that the adoption of the above provisions will not have a material impact on the
Group's financial statements.Interpretation No. 18 of Accounting Standards for Business Enterprises
Interpretation No. 18 standardizes the accounting treatment of warranty-type quality guarantees that do not constitute a
separate performance obligation which will be effective from December 6 2024 and allows enterprises to apply it in
advance from the year of issuance.Regarding the accounting treatment of warranty-type quality guarantees that do not constitute a separate performance
obligation
Interpretation No. 18 stipulates that in accordance with Accounting Standard for Business Enterprises No. 14 - Revenue
when accounting for the provision recognized due to warranty-type quality guarantees that do not constitute a separate
performance obligation enterprises shall follow the relevant provisions of Accounting Standard for Business Enterprises
No. 13 - Contingencies. The determined amount of the provision shall be debited to accounts such as "Cost of Main
Business" or "Other Business Costs" and credited to the "Provision" account. Correspondingly it shall be presented in the
items of "Total Operating Costs" in the income statement and "Other Current Liabilities" "Non-current Liabilities Due
within One Year" and "Provisions" in the balance sheet. When an enterprise first applies this interpretation if the original
recognition of warranty-type quality guarantees was recorded in "Selling Expenses" the changes in the accounting
accounts and financial statement items involved in the accounting treatment of such warranty-type quality guarantees shall
be retrospectively adjusted as a change in accounting policy. The Group originally recorded the warranty-type quality
guarantees in "Selling Expenses" and has applied this provision in advance this year. The impact on the relevant items of
the Group's consolidated income statement for the year 2023 is presented as follows:
Unit: RMB
Item Before restatement Adjustment After restatement
Total operating costs 49637055845.33 95712702.24 49732768547.57
Selling expenses 10842500778.25 (95712702.24) 10746788076.01
In accordance with the Compilation of Application Guidelines for Accounting Standards for Business Enterprises 2024
the Group has changed the presentation of derivative financial instruments that were previously classified as "Financial
Assets at Fair Value through Profit or Loss" or "Financial Liabilities at Fair Value through Profit or Loss" to separate line
items and has retrospectively adjusted the comparative data in the financial statements accordingly. The specific impacts
are presented as follows:
284Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The impact on the relevant items of the Group's consolidated balance sheet as of January 1 2024 is presented as follows:
Unit: RMB
Item January 1 2024 Adjustment January 1 2024
Held for trading financial assets 37380.00 (37380.00) -
Derivative financial assets - 37380.00 37380.00
Held for trading financial liabilities 38079755.04 (38079755.04) -
Derivative financial liabilities - 38079755.04 38079755.04
285Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
IV. Taxes
Major Categories of Taxes and Tax Rates
Category of tax Basis of tax computation Tax rate
Enterprise income tax Taxable income 25% (Note 1)
For the taxable product sales revenue or taxable labor revenue the Company and its domestic subsidiaries are ordinary 6% 9% 13% and simple collection rate of
VAT
Value-added Tax payers; the VAT payable is the balance of input tax after deducting the deductible output tax. 5% 3% (Note 2-4)
City maintenance and construction tax Actual payable turnover tax 7% 5%
Education surcharges Actual payable turnover tax 3%
Local education surcharges Actual payable turnover tax 2%
Note 1: Except that this Company and subsidiaries in China are applicable to the following tax preference this Company's other subsidiaries in China are applicable to 25% of enterprise
income tax rate the overseas subsidiaries are applicable to corresponding local tax rate.
(1) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation Agency in 2023 issued by the Leading Group Office of National
High-tech Enterprise Identification Management on December 28 2023 the Company was identified as the high-tech enterprise and valid term is 3 years and the preferential tax
period is from 2023 to 2025. Therefore the enterprise income tax is calculated and paid on the basis of a reduced tax rate of 15% in the current reporting period (2023:15%).According to the Announcement on the Enterprise Income Tax Policies for Promoting the High-quality Development of Integrated Circuit Industry and Software Industry (Ministry
of Finance State Administration of Taxation National Development and Reform Commission Ministry of Industry and Information Technology Announcement [2020] No. 45)
(hereinafter referred to as " Preferential Tax Policies for Integrated Circuit and Software Industries") the Company was approved by the tax authorities in May 2024 to pay the 2023
annual corporate income tax at the rate of 10%. As of the approval date of this report the Company's preferential income tax in 2024 has not been verified and approved. Therefore
the Company's enterprise income tax in 2024 is calculated and paid at the rate of 15% (2023: 10%).
(2) According to the Announcement on Continuation of the Corporate Income Tax Policy for the Western Development (Ministry of Finance State Administration of Taxation National
Development and Reform Commission Announcement [2020] No.23) the subsidiaries of the Company Chongqing Hikvision Technology Co. Ltd. (hereinafter referred to as
"Chongqing Technology") Chongqing Hikvision System Technology Co. Ltd. (hereinafter referred to as "Chongqing System") and Chongqing EZVIZ Electronics Ltd. have enjoyed
preferential tax policies for the development of the western region. Therefore the current enterprise income tax is calculated and paid on the basis of a reduced tax rate of 15% in the
current reporting period (2023:15%).
286Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
(3) According to the Recording List of the First Batch of identified High-tech Enterprises of Zhejiang Province in 2021 and the list of High-tech Enterprises Identified and Reported by
the Zhejiang Provincial Accreditation Agency in 2024 issued by the Leading Group Office of National High-tech Enterprise Identification Management Work on January 24 2022
and December 26 2024 Hangzhou Fuyang Haikang Baotai Surveillance Technology Service Ltd. (hereinafter referred to as "Fuyang Baotai") and Hangzhou Hikstorage Technology
Ltd. ("Hikstorage Technology") subsidiaries of the Company are identified as high-tech enterprises and the valid terms of the identification for both are 3 years and the preferential
tax period is from 2021 to 2023 and from 2024 to 2026. Therefore the enterprise income tax is calculated and paid on the basis of a reduced tax rate of 15% in the current reporting
period (2023:15%).
(4) In accordance with the List of High-tech Enterprises Identified by the Zhejiang Provincial Accreditation Agency in 2022 issued by the leading group office of Zhejiang high-tech
enterprise identification management work on January 17 2022 the Company's subsidiaries Hangzhou Hikvision System Technology Ltd. (hereinafter referred to as "Hangzhou
System") Hangzhou Rayin Technology Ltd. (hereinafter referred to as "Hangzhou Rayin Technology") and Hangzhou Hikfire Technology Ltd. (hereinafter referred to as "HikFire
Technology") were recognized as high-tech enterprises with a valid term of 3 years and the preferential tax period is from 2022 to 2024. Therefore the enterprise income tax is
calculated and paid on the basis of a reduced tax rate of 15% in the current reporting period (2023:15%).
(5) In accordance with the List of Second Batch of High-tech Enterprises Identified and Reported by Shanghai Accreditation Agency in 2023 issued by Shanghai High-tech Enterprise
Identification Office on January 4 2024 the Company's subsidiary Shanghai Goldway Intelligent Transportation System Ltd. was identified as the high-tech enterprise and valid
term is 3 years and the preferential tax period is from 2023 to 2025. Therefore the enterprise income tax is calculated and paid on the basis of a reduced tax rate of 15% in the current
reporting period (2023:15%).
(6) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation Agency in 2023 issued by the Leading Group Office of National
High-tech Enterprise Identification Management on December 28 2023 the Company's subsidiaries Hangzhou Hikauto Software Ltd. (hereinafter referred to as "HikAuto Software")
and Hangzhou Hikimaging Technology Ltd. (hereinafter referred to as "HikImaging Technology") were identified as the high-tech enterprise and valid term is 3 years and the
preferential tax period is from 2023 to 2025. Therefore the enterprise income tax is calculated and paid on the basis of a reduced tax rate of 15% in the current reporting period
(2023:15%).
(7) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation Agency in 2023 issued by the Leading Group Office of National
High-tech Enterprise Identification Management on December 28 2023 the Company's subsidiary Hangzhou Hikrobot Technology Co. Ltd. (hereinafter referred to as "HikRobot")
was identified as the high-tech enterprises and valid term is3 years and the preferential tax period is from 2023 to 2025.According to the preferential tax policies for the integrated circuit industry and the software industry and the Announcement No. 10 of 2021 of the Ministry of Industry and Information
Technology of the People's Republic of China the National Development and Reform Commission the Ministry of Finance and the State Administration of Taxation Hikrobot is a
qualified software enterprise. and is exempted from enterprise income tax in the first and second years after start of profiting and pays enterprise income tax at half of the 25%
287Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
statutory tax rate in the third to fifth years. The year of 2024 is the second year of HikRobot making profits and is exempted from enterprise income tax (2023: tax-exempted).
(8) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation Agency in 2022 issued by the Leading Group Office of National
High-tech Enterprise Identification Management on January 17 2023 the Company's subsidiary Hangzhou Hikmicro Sensing Technology Ltd. (hereinafter referred to as "Hikmicro
Sensing") was identified as the high-tech enterprise with a valid term of 3 years and the preferential tax period is from 2022 to 2024.In accordance with the Preferential Tax Policies for Integrated Circuit and Software Industries Hikmicro Sensing is a qualified intergrated circuit company and is exempted from
enterprise income tax in the first and second years after start of profiting and pays enterprise income tax at half of the 25% statutory tax rate in the third to fifth years. The year of
2024 is the fourth year of Hikmicro Sensing making profits and enjoyed enterprise income tax at half of the 25% statutory tax rate (2023: half of the 25% statutory tax rate).
(9) In accordance with the Announcement on the Filing of High-tech Enterprises Recognized by Zhejiang Provincial Identification Institution in 2022 issued by the Leading Group Office
of National High-tech Enterprise Identification Management on January 17 2023 the Company's subsidiary Hangzhou Hikmicro Software Ltd. (hereinafter referred to as "Hangzhou
Hikmicro Software") was identified as the high-tech enterprise with a valid term of 3 years and the preferential tax period is from 2022 to 2024.According to the preferential tax policies for the integrated circuit industry and the software industry and the Announcement No. 10 of 2021 of the Ministry of Industry and Information
Technology of the People's Republic of China the National Development and Reform Commission the Ministry of Finance and the State Administration of Taxation Hangzhou
Hikmicro Software is a qualified software enterprise. and is exempted from enterprise income tax in the first and second years after start of profiting and pays enterprise income tax
at half of the 25% statutory tax rate in the third to fifth years. The year of 2024 is the fifth year of Hangzhou Hikmicro Software making profits and enjoyed enterprise income tax at
half of the 25% statutory tax rate.According to the preferential tax policies for the integrated circuit industry and the software industry Hangzhou Hikmicro Software obtained approval from the tax authorities in May
2024 for exemption from corporate income tax for the year 2023.
(10) In accordance with the Recording List of the Second Batch of identified High-tech Enterprises of Hebei Province in 2022 issued by the Leading Group Office of Hebei Province's
High-tech Enterprise Identification Management on December 26 2022 the Company's subsidiary Sensortech Hebei Technology Ltd. (hereinafter referred to as "Hebei Sensortech
") was identified as the high-tech enterprises with a valid term of 3 years and the preferential tax period is from 2022 to 2024. Therefore the enterprise income tax is calculated and
paid on the basis of a reduced tax rate of 15% in the current reporting period. (2023:15%)
(11) In accordance with the list of High-tech Enterprises Identified and Reported by the Zhejiang Provincial Accreditation Agency in 2023 issued by the Leading Group Office of National
High-tech Enterprise Identification Management on December 28 2023 the Company's subsidiary Hangzhou EZVIZ Software Ltd. (hereinafter referred to as "EZVIZ Software")
288Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
was identified as the high-tech enterprise and valid term is 3 years and the preferential tax period is from 2023 to 2025.According to the preferential tax policies for the integrated circuit industry and the software industry and the Announcement No. 10 of 2021 of the Ministry of Industry and Information
Technology of the People's Republic of China the National Development and Reform Commission the Ministry of Finance and the State Administration of Taxation EZVIZ Software
is a qualified software enterprise and is exempted from enterprise income tax in the first and second years after start of profiting and pays enterprise income tax at half of the 25%
statutory tax rate in the third to fifth years. The year of 2024 is fifth year of EZVIZ Software making profits and enjoyed the preferential enterprise income tax at half of the 25%
statutory tax rate (2023: half of the 25% statutory tax rate).
(12) In accordance with the provisions of the Announcement on Further Supporting the Development of Small and Micro-sized Enterprises and Individual Businesses (Announcement No.
12 of 2023 by the Ministry of Finance and the State Taxation Administration) Hangzhou Furui Technology Ltd. ("Furui Technology") Henan Hua'an Security Services Co. Ltd.
(hereinafter referred to as "Henan Hua'an Security Services") Hangzhou Hikimaging Electronics Ltd. Zhengzhou Hikvision Technology Ltd. Anhui Hikvision Urban Operation
Service Co. Ltd. Shijiazhuang Haishi Digital Technology Ltd. Hangzhou Rayin Detection Technology Ltd. and Hangzhou Xingrong Information Technology Ltd. qualify as small
and micro-sized profitable enterprises and are eligible for the preferential corporate income tax policy for small and micro-sized enterprises. The taxable income up to CNY 3 million
is reduced to 25% of the taxable income and is subject to a corporate income tax rate of 20%. Therefore the corporate income tax for this year is calculated and paid at a reduced rate
of 5%.Note 2: In accordance with the requirements of the Notice on Software Product Value-added Tax Policy (Cai Shui [2011] No. 100) promulgated by the Ministry of Finance and the State
Administration of Taxation as for self-developed software products sales of the Company Hangzhou System HikRobot HikAuto Software Hangzhou EZVIZ Software Hikstorage
Technology Hikimaging Technology HikFire Technology Hangzhou Rayin Technology Hangzhou Microimage Software Henan Haikang Hua'An BaoQuan Electronics Co. Ltd.(hereinafter referred to as "Hua'An BaoQuan Electronics") Hangzhou Kuangxin Technology Ltd. Fuyang Baotai Zhejiang Hailai Yunzhi Technology Co. Ltd. and Hebei Sensortech
the VAT shall be calculated and paid with tax rate of 13% at first then the portion with actual tax bearing excess 3% shall be refunded after State Administration of Taxation reviews.Note 3: In accordance with the Several Policies on Promoting the Recovery and Development of Difficult Industries in the Service Industry Fa Gai Cai Jin [2022] No. 271 in 2022
taxpayers in the production and life service industries will be deducted by 10% and 15% respectively according to the deductible input tax deductible for the current period (hereinafter
referred to as the "Additional Deduction Policy"). In accordance with the Announcement on clarifying policies such as VAT reduction and exemption for small-scale taxpayers (Ministry
of Finance State Administration of Taxation Announcement [2023] No. 1) In 2023 the current deductible input tax for production and living services taxpayers will continue to be
deducted by 5% and 10% of the tax payable respectively. The policy is valid until December 31 2023.The Company's part of branches and the subsidiaries Hangzhou Hikvision Technology Ltd.'s part of branches Chongqing System Hangzhou Hikvision Financial Leasing Ltd. ( formerly
known as Hangzhou Hikvision Security Equipment Leasing Service Co. Ltd.) Anhui Hikvision Urban Operation Service Co. Ltd. a part of Hangzhou EZVIZ Network Co.Ltd.(hereinafter referred to as "EZVIZ Network")'s branches Zhejiang Haikang City Service Co. Ltd. Luliang Branch Henan HuaAn Bao Quan Intelligent Development Co.Ltd.( hereinafter reffered to as "Hua'an Bao Quan Intelligent") and its Luoyang Branch Hua'an Security Services Urumqi HaiShi Xin'An Electronic Technology Ltd. Chengdu Hikvision
Digital Technology Ltd. Hangzhou EZVIZ Software Hangzhou branch of Zhejiang Hikfire Technology Ltd. Wuhan Hikvision Technology Ltd. some branches of Hangzhou Haikang
Intelligent Technology Ltd. and Guizhou Haikang Transport Big Data Ltd. met the provisions of the VAT Additional Deduction Policy and were entitled to additional deduction preferential
tax policy of input tax in 2023 and ceased the related preferential treatment in 2024.
289Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Note 4: In accordance with the Notice of the Ministry of Finance and the State Administration of Taxation on the Additional VAT Deduction Policy for Integrated Circuit Enterprises
(Finance and Taxation [2023] No. 17) from January 1 2023 to December 31 2027 enterprises in integrated circuit design production packaging and testing equipment and materials
are allowed to deduct an additional 15% of the current deductible input tax to deduct the tax payable. The Company's subsidiary Hikmicro Sensing complies with the provisions of the
policy and deducts an additional 15% of the current deductible input tax to deduct the tax payable.V. Notes to Items in the Consolidated Financial Statements
1. Cash and Bank Balances
Unit: RMB
Closing balance Opening balance (Restated)
Item Exchange rate for Foreign currency Exchange rate for
Foreign currency amount RMB amount RMB amount
conversion amount conversion
Cash:
RMB - - 2759.07 - - 1678.63
EUR 32977.56 7.5257 248180.23 147128.30 7.8592 1156310.77
USD 19048.11 7.1884 136926.36 30104.54 7.0827 213221.43
Other currencies 294157.68 - - 414544.09
Bank balance:
RMB - - 30906055381.57 - - 45212743399.98
USD 525069475.29 7.1884 3774409416.15 348625559.51 7.0827 2469210250.34
EUR 71544059.18 7.5257 538419126.19 113802623.62 7.8592 894397579.52
Other currencies 715042893.37 - - 824341197.50
Other currency funds:
RMB - - 293311312.74 - - 179985499.57
USD 1925634.95 7.1884 13842234.25 2700309.07 7.0827 19125479.05
290Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Closing balance Opening balance (Restated)
Item Exchange rate for Foreign currency Exchange rate for
Foreign currency amount RMB amount RMB amount
conversion amount conversion
EUR 159997.07 7.5257 1204089.92 565119.25 7.8592 4441385.18
Other currencies - - 28521859.50 - - 32128116.48
Total 36271488337.03 49638158662.54
Including: deposited in overseas banks 796652984.09 942602817.26
Details of other currency funds:
Unit: RMB
Closing balance Opening balance
ItemItem Foreign currency Exchange rate for Exchange rate for
RMB amount Foreign currency amount RMB amount
amount conversion conversion
Capitals with limitations:
Deposits for letter of credit - - - - - 5807814.00
Bank acceptance bill - - 4342362.58 - - 5729976.08
Deposits for letter of guarantee - - 187030125.71 - - 150406759.09
Other security deposits - - 15572718.45 - - 17821752.36
Other capitals with limitations - - 11500750.00 - - 30425005.23
Subtotal 218445956.74 210191306.76
Capitals without limitations:
Deposit in payment instrument provided by third-party and
--118364276.15--25453125.41
in securities account
Other currency funds in USD 1309.50 7.1884 9413.21 - - -
Other currency funds in EUR 7952.79 7.5257 59850.31 4586.74 7.8592 36048.11
Subtotal 118433539.67 25489173.52
Total 336879496.41 235680480.28
291Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
2. Derivative Financial Assets
Unit: RMB
Item Closing balance Opening balance
Forward foreign exchange contract 26775923.93 37380.00
Total 26775923.93 37380.00
On December 31 2024 derivative financial assets are forward foreign exchange contracts and they are not designated as hedging instruments and the gains or losses arising from changes
in their fair values are directly included in the current profit and loss.
3. Notes Receivable
(1) Categories of notes receivable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance bill 2365648400.91 2199710776.69
Finance company acceptance bill 150839104.68 123274741.72
Commercial acceptance bill 206108636.87 283085857.33
Total 2722596142.46 2606071375.74
(2) At the end of the current reporting period the Group had no pledged notes receivable.
(3) At the end of the current reporting period notes receivable endorsed or discounted by the Group but not yet due at the balance sheet day
Unit: RMB
Item Amount not derecognized as of December 31 2024
Bank acceptance bill 1227896081.96
Finance company acceptance bill 46990625.40
Commercial acceptance bill 45274.00
Total 1274931981.36
292Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
As of December 31 2024 the Group gave RMB1193485939.57 (2023: RMB1 075118808.52) undue bank acceptance bills to suppliers for endorsement RMB46990625.40 (2023:
RMB47808575.05) undue acceptance bill of the finance company to suppliers for endorsement RMB45274.00 (2023: RMB500000.00) undue commercial acceptance bill to suppliers
for endorsement. Discounted RMB34410142.39 (2023: RMB34566243.97) undue bank acceptance to banks. Since the Group has not transferred almost all the risks and rewards of
ownership of financial assets the Group has not terminated its confirmation. For details please refer to Note (V) 24 and Note (V) 31.3.
(4) Classified disclosure by method of provision for bad debts.
Unit: RMB
Closing balance
Category Carrying amount Credit loss provision Book value
Amount Proportion (%) Amount Proportion (%) Amount
Provision for bad debts of notes receivables on a single basis - - - - -
Provision for bad debts of notes receivables by portfolios 2725650950.56 100.00 3054808.10 0.11 2722596142.46
Total 2725650950.56 100.00 3054808.10 0.11 2722596142.46
Unit: RMB
Opening balance
Category Carrying amount Credit loss provision Book value
Amount Proportion (%) Amount Proportion (%) Amount
Provision for bad debts of notes receivables on a single basis - - - - -
Provision for bad debts of notes receivables by portfolios 2608563766.39 100.00 2492390.65 0.10 2606071375.74
Total 2608563766.39 100.00 2492390.65 0.10 2606071375.74
Provision for bad debts of notes receivables by portfolios
Unit: RMB
Closing balance
Category
Carrying amount Credit loss provision Proportion (%)
Bank acceptance bill 2365648400.91 - -
Non-bank acceptance bill 360002549.65 3054808.10 0.85
Total 2725650950.56 3054808.10 0.11
Explanation of provision for bad debts of notes receivables by portfolios:
293Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The Group classifies notes receivable into different portfolios based on the characteristics of the acceptors.The Group believes that there is no significant credit risk to the acceptors of
bank acceptance bills held by the Group so no loss provision is made.
(5) Provision for bad debts of notes receivables.
Unit: RMB
Provision for bad debts Expected credit loss for the entire duration
Balance as of January 1 2024 2492390.65
Provision for/ Reverse of the current year 562417.45
Balance as at December 31 2024 3054808.10
(6) Situation of provision
Unit: RMB
Amount of changes changed in the current reporting period
Category Opening balance Closing balance
Provision or reverse Transfer or write-off
Notes receivable 2492390.65 562417.45 - 3054808.10
Total 2492390.65 562417.45 - 3054808.10
4. Accounts Receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance (restated)
Within credit period 21885251680.47 21238508394.91
Within 1 year after exceeding credit period 13413302524.64 12622668221.07
1-2 years after exceeding credit period 3351710793.78 2520053396.18
2-3 years after exceeding credit period 1353841038.81 1029311890.05
3-4 years after exceeding credit period 664972595.95 579297343.23
294Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Aging Closing balance Opening balance (restated)
Over 4 years after exceeding credit period 1155004826.72 1018167722.39
Total 41824083460.37 39008006967.83
Less: Credit impairment provision 3913954724.95 3191433456.39
Book value 37910128735.42 35816573511.44
(2) Classified disclosure of credit loss by provision methods
Unit: RMB
Closing balance
Category Carrying amount Credit loss provision Book value
Amount Proportion (%) Amount Proportion (%) Amount
Provision for credit loss on a single basis - - - - -
Provision for credit loss by portfolios 41824083460.37 100.00 3913954724.95 9.36 37910128735.42
Total 41824083460.37 100.00 3913954724.95 9.36 37910128735.42
Unit: RMB
Opening balance (restated)
Category Carrying amount Credit loss provision Book value
Amount Proportion (%) Amount Proportion (%) Amount
Provision for credit loss on a single basis - - - - -
Provision for credit loss by portfolios 39008006967.83 100.00 3191433456.39 8.18 35816573511.44
Total 39008006967.83 100.00 3191433456.39 8.18 35816573511.44
Provision for credit loss by portfolios for accounts receivable
Unit: RMB
Closing balance
Customer
Carrying amount Credit loss provision Proportion (%)
Portfolio A 3382037568.78 84935468.35 2.51
Portfolio B 28763549515.79 3562845181.45 12.39
Portfolio C 9678496375.80 266174075.15 2.75
Total 41824083460.37 3913954724.95 9.36
Description of credit loss provision by portfolios for accounts receivable
295Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
As part of the Group's credit risk management the Group uses an impairment matrix to determine expected credit losses based on the ageing of accounts receivable beyond the credit
period and divides the risk characteristics account receivables into portfolio A portfolio B and portfolio C according to the risk characteristics of business areas and objects. And the
Company uses an impairment matrix to determine expected credit losses of each portfolio based on the ageing of accounts receivable beyond the credit period. These three portfolios
involve a large number of customers with the same risk characteristics. Aging information is able to reflect the solvency of these three types of customers when the accounts receivable
are due.As of December 31 2024 and January 1 2024 the credit risk and expected credit losses during the duration of accounts receivable from portfolio A are as follows:
Unit: RMB
Closing balance Opening balance (Restated)
Aging Expected average Bad debt Expected average Bad debt
Carrying value Book value Carrying value Book value
loss rate (%) provision loss rate (%) provision
Within credit period 0.07 2705323605.53 1944444.46 2703379161.07 0.02 3907968313.68 852571.17 3907115742.51
Within 1 year after exceeding credit period 2.26 554426756.05 12545412.20 541881343.85 1.90 676630538.84 12829329.20 663801209.64
1-2 years after exceeding credit period 32.98 71438423.74 23559515.25 47878908.49 30.36 50103162.12 15213054.67 34890107.45
2-3 years after exceeding credit period 70.25 13320979.94 9358292.92 3962687.02 63.25 12070966.60 7635014.88 4435951.72
3-4 years after exceeding credit period 100.00 11703561.65 11703561.65 - 100.00 20084869.22 20084869.22 -
Over 4 years after exceeding credit period 100.00 25824241.87 25824241.87 - 100.00 11222150.03 11222150.03 -
Total 2.51 3382037568.78 84935468.35 3297102100.43 1.45 4678080000.49 67836989.17 4610243011.32
As of December 31 2024 and January 1 2024 the credit risk and expected credit losses during the duration of accounts receivable from portfolio B are as follows:
Unit: RMB
Closing balance Opening balance
Aging Expected average Bad debt Expected average Bad debt
Carrying value Book value Carrying value Book value
loss rate (%) provision loss rate (%) provision
Within credit period 0.88 10826359201.03 94976583.91 10731382617.12 0.80 10001831444.99 80372286.33 9921459158.66
Within 1 year after exceeding credit period 5.21 11759406126.15 612261723.49 11147144402.66 4.69 10816276812.71 506914857.87 10309361954.84
1-2 years after exceeding credit period 21.84 3187571282.52 696103763.26 2491467519.26 23.34 2416434272.21 564052271.46 1852382000.75
2-3 years after exceeding credit period 48.51 1321386954.11 640970300.26 680416653.85 42.77 993475956.99 424940431.68 568535525.31
3-4 years after exceeding credit period 76.24 632604288.10 482311146.65 150293141.45 69.63 522837171.09 364030874.76 158806296.33
296Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Over 4 years after exceeding credit period 100.00 1036221663.88 1036221663.88 - 100.00 920056259.62 920056259.62 -
Total 12.39 28763549515.79 3562845181.45 25200704334.34 11.14 25670911917.61 2860366981.72 22810544935.89
As of December 31 2024 and January 1 2024 the credit risk and expected credit losses during the duration of accounts receivable from portfolio C are as follows:
Unit: RMB
Closing balance Opening balance
Aging Expected average Bad debt Expected average
Carrying value Book value Carrying value Bad debt provision Book value
loss rate (%) provision loss rate (%)
Within credit period 0.25 8353568873.91 21130742.84 8332438131.07 0.28 7328708636.24 20812836.46 7307895799.78
Within 1 year after exceeding credit period 6.05 1099469642.44 66495406.43 1032974236.01 6.19 1129760869.52 69879355.77 1059881513.75
1-2 years after exceeding credit period 51.18 92701087.52 47448581.31 45252506.21 50.85 53515961.85 27212412.79 26303549.06
2-3 years after exceeding credit period 91.34 19133104.76 17475677.40 1657427.36 92.83 23764966.46 22060264.82 1704701.64
3-4 years after exceeding credit period 100.00 20664746.20 20664746.20 - 100.00 36375302.92 36375302.92 -
Over 4 years after exceeding credit period 100.00 92958920.97 92958920.97 - 100.00 86889312.74 86889312.74 -
Total 2.75 9678496375.80 266174075.15 9412322300.65 3.04 8659015049.73 263229485.50 8395785564.23
(3) Bad debt provision
Unit: RMB
Amount of changes changed in the current reporting period Difference due to
Category Opening balance foreign currency Closing balance
Provision Recollect or reverse Transfer or write-off
statement translation
Accounts receivable 3191433456.39 976548145.21 47789545.95 203689533.26 (2547797.44) 3913954724.95
Total 3191433456.39 976548145.21 47789545.95 203689533.26 (2547797.44) 3913954724.95
(4) Top five debtors based on corresponding closing balance of accounts receivable and contract assets (including the part included in other non-current assets)
At the end of the current period the aggregate amount of the Group's accounts receivable and contract assets (including the part included in other non-current assets) of top five companies
amounted to RMB2630005597.63 (of which the total amount of accounts receivable is RMB1252553158.90 and the amount of contract assets is RMB1377452438.73) accounting
for 5.86% of the total year-end balance of accounts receivable and contract assets (including the part included in other non-current assets) and the amount of provision for bad debts was
RMB265120104.87.
297Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
5. Contract Assets
(1) Details of contract assets
Unit: RMB
Closing balance Opening balance
Item Provisions for Provisions for
Carrying amount Book value Carrying amount Book value
impairment impairment
Constructions 2821485040.98 23550579.80 2797934461.18 2847993321.71 21993021.25 2826000300.46
Maintenance
253714700.922071050.36251643650.56227366849.251945550.21225421299.04
services
Less:
Contract
assets that are
included in 2081248707.05 17493381.00 2063755326.05 1893506565.03 15397380.73 1878109184.30
other non-
current assets
(Note (V) 22)
Total 993951034.85 8128249.16 985822785.69 1181853605.93 8541190.73 1173312415.20
(2) The classification and disclosure of the method of provision for impairment of contract assets (including the part
included in other non-current assets)
Unit: RMB
Closing balance
Carrying amount Provisions for impairment Book value
Item
Proportion Provision
Amount Amount Amount
(%) proportion (%)
Provision for impairment on a single item - - - - -
Provision for impairment by portfolio 3075199741.90 100.00 25621630.16 0.83 3049578111.74
Total 3075199741.90 100.00 25621630.16 0.83 3049578111.74
Opening balance
Carrying amount Provisions for impairment Book value
Item
Proportion Provision
Amount Amount Amount
(%) proportion (%)
Provision for impairment on a single item - - - - -
Provision for impairment by portfolio 3075360170.96 100.00 23938571.46 0.78 3051421599.50
Total 3075360170.96 100.00 23938571.46 0.78 3051421599.50
(3) Provision for bad debts of contract assets (including the part included in other non-current assets) in the current period
Unit: RMB
Amount of changes changed in the current reporting Difference due
period to foreign
Opening Closing
Category currency
balance Transfer or balance
Provision statement
write-off
translation
Contract assets 23938571.46 1680465.16 - 2593.54 25621630.16
Total 23938571.46 1680465.16 - 2593.54 25621630.16
298Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
6. Receivables for Financing
(1) Receivables for financing by categories
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 2128242910.57 1594219832.62
Certificates of accounts receivable claims 163405333.48
Total 2291648244.05 1594219832.62
(2) At the end of the reporting period the Group had no pledged receivables for financing.
(3) At the end of the reporting period receivables for financing endorsed or discounted by the Group that have not yet
expired on the balance sheet date.Unit: RMB
Item Derecognized amount as of December 31 2024
Bank acceptance bill 2344850710.82
Certificates of accounts receivable claims 10546904.23
Total 2355397615.05
As of December 31 2024 the Group endorsed to suppliers bank acceptance bills amounting to RMB2098075845.62
that had not yet matured and certificates of accounts receivable claims amounting to RMB10546904.23 that had not yet
matured and discounted to banks bank acceptance bills amounting to RMB246774865.20that had not yet matured.
(4) The Group believes that the likelihood of non-payment upon maturity of the bank acceptance bills and certificates of
accounts receivable claims it holds to be very low and there is no significant credit risk so no loss provision is made.
7. Prepayment
(1) Prepayments by aging analysis
Unit: RMB
Closing balance Opening balance
Aging
Carrying amount Proportion (%) Carrying amount Proportion (%)
Within 1 year 624943424.42 94.03 439229846.71 86.44
1-2 years 24319470.26 3.66 54598580.98 10.74
2-3 years 11026833.66 1.66 9132956.08 1.80
Over 3 years 4312864.67 0.65 5190022.15 1.02
Total 664602593.01 100.00 508151405.92 100.00
(2) Closing balances of top five prepayments parties
As of December 31 2024 the Group's top five balances of prepayments amounted to RMB101949950.71 accounting
for 15.34% of total closing balance of prepayments.
299Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
8. Other Receivables
(1) Other receivables by aging
Unit: RMB
Aging Closing balance Opening balance (restated)
Within contract period 438536805.11 497353510.04
Within 1 year 71996644.17 58190602.54
1-2 years 19987742.95 20606423.68
2-3 years 14942465.41 4357328.94
3-4 years 3327986.69 3216083.19
Over 4 years 15860010.64 20110646.73
Total 564651654.97 603834595.12
Less: Credit impairment provision 33307048.47 31922559.19
Book value 531344606.50 571912035.93
(2) Other receivables by nature of the payment
Unit: RMB
Item Closing balance of carrying amount Opening balance of carrying amount (restated)
Guarantee deposits 240519111.89 217477539.62
Tax rebates 130609720.61 27765998.37
Temporary payments for receivables 116667509.52 109941412.72
Repurchase payments for restricted share - 169968816.44
Others 76855312.95 78680827.97
Total 564651654.97 603834595.12
300Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
(3) Accrual for bad debts of other receivables
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debts allowance Expected credit loss for the entire Expected credit loss for the entire Expected credit losses in the Total
duration (credit impairment has not duration (credit impairment has
next 12 months
incurred) occurred)
Balance on January 1 2024 2161771.42 5709846.71 24050941.06 31922559.19
Balance on January 1 2024
In the current reporting period:
--Transfer into stage 2 (312940.96) 312940.96 - -
-- Transfer into stage 3 - (2505851.45) 2505851.45 -
--Accrual/( recollect or reverse) in the current
(43350.56)3759139.41(1899179.64)1816609.21
reporting period
Derecognition of financial assets (including direct
--(213993.50)(213993.50)
write-downs) and transfer out
Other changes (218126.43) - - (218126.43)
Balance on December 31 2024 1587353.47 7276075.63 24443619.37 33307048.47
(4) Provision for bad debts of other receivables
Unit: RMB
Amount of changes in the current reporting period Difference resulted from foreign
Category Opening balance Closing balance
Provision Recollect or reverse Transfer or write-off currency statements conversion
Other receivables 31922559.19 7212313.69 5395704.48 213993.50 (218126.43) 33307048.47
Total 31922559.19 7212313.69 5395704.48 213993.50 (218126.43) 33307048.47
Top five debtors based on corresponding closing balance of other receivables
At the end of current period the aggregate amount of other receivables of the top five debtors of the Group was RMB146450707.35 accounting for 25.94% of the total balance of other
receivables at the end of the year and the provision for bad debts amounted to RMB114373.25.
301Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
9. Inventories
(1) Categories of inventories
Unit: RMB
Closing balance Opening balance(restated)
Provision for decline in value of Provision for decline in value of
Category
Carrying amount inventories/ Impairment provision Book value Carrying amount inventories/ Impairment provision Book value
for contract performance cost for contract performance cost
Raw materials 6112813706.01 321520672.33 5791293033.68 7912250689.30 368431917.68 7543818771.62
Work-in-progress 722550293.30 - 722550293.30 561630556.81 - 561630556.81
Finished goods 13151518051.53 990672547.73 12160845503.80 11653219740.75 950498742.24 10702720998.51
Contract performance cost 444030393.50 8007266.17 436023127.33 409869715.64 6595745.76 403273969.88
Total 20430912444.34 1320200486.23 19110711958.11 20536970702.50 1325526405.68 19211444296.82
(2) Provision for decline in value of inventories
Unit: RMB
The amount accrued in the The amount reversed or resold in the current Effect on conversion of financial statements
Category Opening balance Closing balance
current reporting period reporting period denominated in foreign currencies
Raw materials 368431917.68 77907559.96 124805923.85 (12881.46) 321520672.33
Finished goods 950498742.24 373644906.42 289327664.23 (44143436.70) 990672547.73
Contract performance cost 6595745.76 5185172.85 3773652.44 - 8007266.17
Subtotal 1325526405.68 456737639.23 417907240.52 (44156318.16) 1320200486.23
The write-offs of provision for inventories in the current reporting period are due to use or sale of inventories.
(3) Descriptions of the amortization amount of the contract performance cost for the current reporting period
For the contract performance cost recognized as an asset the Group adopts the same basis as the recognition of revenue related to the asset and includes it in the profit or loss for the
current period when commercial goods or service have been transferred in accordance with the contract requirements and the acceptance certificate of the other party has been obtained.The amount included in profit or loss for the current period in 2024 is RMB711095338.26.
302Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
10. Non-current Assets Due within One Year
Unit: RMB
Item Closing balance Opening balance
Long-term receivables due within one year (Note (V) 12) 894327647.82 1079721006.23
Total 894327647.82 1079721006.23
11. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Deductible VAT input 901841078.74 733273484.32
Prepaid corporate income tax 90832918.17 132978082.06
Prepaid tariff 18347927.67 32945213.90
Others 60044728.52 62396836.47
Total 1071066653.10 961593616.75
12. Long-term Receivables
(1) Details of long-term receivables
Unit: RMB
Closing balance Opening balance
Item Provision for
Carrying amount Book value Carrying amount Provision for impairment Book value
impairment
Financial leases receivables 286093285.46 77540673.10 208552612.36 265985187.99 53601885.63 212383302.36
Including: Unrealized income from financing 5907102.54 - 5907102.54 7730078.24 - 7730078.24
Installments business 1051389224.08 349486719.21 701902504.87 1191642272.96 235773626.86 955868646.10
Including: Unrealized income from financing 13619170.58 - 13619170.58 26937454.05 - 26937454.05
303Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Closing balance Opening balance
Item Provision for
Carrying amount Book value Carrying amount Provision for impairment Book value
impairment
Employee housing loan 364325718.68 - 364325718.68 450167676.53 - 450167676.53
Including: Unrealized income from financing 31285136.32 - 31285136.32 42598988.47 - 42598988.47
Subtotal 1701808228.22 427027392.31 1274780835.91 1907795137.48 289375512.49 1618419624.99
Less: Non-current assets due within one year (Note (V) 10) 1320172837.77 425845189.95 894327647.82 1367395229.26 287674223.03 1079721006.23
Total 381635390.45 1182202.36 380453188.09 540399908.22 1701289.46 538698618.76
(2) Disclosure by method of provision for bad debts
Unit: RMB
Closing balance Opening balance
Item Provision for Provision for
Carrying amount Book value Carrying amount Book value
impairment impairment
Provision for bad debts by portfolio (including the portion 1701808228.22 427027392.31 1274780835.91 1907795137.48 289375512.49 1618419624.99
due within one year)
Including: portfolio of employees 364325718.68 - 364325718.68 450167676.53 - 450167676.53
Portfolio of financial leasing and installment 1337482509.54 427027392.31 910455117.23 1457627460.95 289375512.49 1168251948.46
collection customers
Total 1701808228.22 427027392.31 1274780835.91 1907795137.48 289375512.49 1618419624.99
Portfolio of employees
The Group believes that the employees corresponding to the long-term receivable employee housing loans held by the Group all have labor relations with the Group and the Group
assesses that the relevant debtors have good credit records and the Group believes that there is no significant credit risk and therefore no loss of provision is made.Portfolio of financial leasing and installment collection customers
As of December 31 2024 the credit risk and expected credit losses of long-term receivables relevant to financial leasing and installment collection customers are as follows:
Unit: RMB
Closing balance
Aging
Amounts Credit loss provision Estimated average loss rate (%)
Within credit period 379383102.82 2656826.86 0.70
Within 1 year after exceeding credit period 208713298.89 9609275.09 4.60
304Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Closing balance
Aging
Amounts Credit loss provision Estimated average loss rate (%)
1-2 years after exceeding credit period 198492819.37 39460372.49 19.88
2-3 years after exceeding credit period 227883932.22 94708562.23 41.56
3-4 years after exceeding credit period 147897491.66 105480491.06 71.32
Over 4 years after exceeding credit period 175111864.58 175111864.58 100.00
Total 1337482509.54 427027392.31 31.93
(3) Provision for bad debts
Unit: RMB
Amount of changes in the current reporting period Difference resulted from foreign
Category Opening balance Closing balance
Provision Recollect or reverse Transfer or write-off currency statements conversion
Long term receivables 289375512.49 138280648.52 628768.70 - - 427027392.31
Total 289375512.49 138280648.52 628768.70 - - 427027392.31
13. Long-term Equity Investment
Unit: RMB
Increase/ Decrease in the current reporting period
Closing
balance
Opening
The invested entity Adjustment to Other Declaration of
balance Additional Investment profit (loss)
Closing balance for
Investment other changes cash dividends Impairment
investments recognized under the others impairment
reduction comprehensive in equity or profit provision
(note2) equity Method provision
income (note1) distribution
1. Joint venture companies
Hangzhou Haikang 791356253.1
Intelligent Industrial Equity 4 - - 19685451.64 - 57022183.13 - - - 868063887.91 -
Investment Fund Partnership
305Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Increase/ Decrease in the current reporting period
Closing
balance
Opening
The invested entity Adjustment to Other Declaration of
balance Additional Investment profit (loss)
Closing balance for
Investment other changes cash dividends Impairment
investments recognized under the others impairment
reduction comprehensive in equity or profit provision
(note2) equity Method provision
income (note1) distribution
(L.P.)
Zhejiang City Digital
29635485.61--(3765849.98)--(5792258.59)--20077377.04-
Technology Ltd.Zhejiang Haishi Huayue
14067281.65--(362700.73)-----13704580.92-
Digital Technology Ltd.Guangxi Haishi Urban
12450335.88--(1000853.49)-----11449482.39-
Operation Management Ltd.Xuzhou Kangbo Urban
Operation Management 11052348.36 - - (206602.05) - - - - - 10845746.31 -
Service Ltd.Others 5172387.15 10500000.00 - (11155902.19) - - - - - 4516484.96 -
Subtotal 863734091.79 10500000.00 - 3193543.20 - 57022183.13 (5792258.59) - - 928657559.53 -
2. Associated companies
Beijing Taifang Technology
36942210.69--(3332699.09)-----33609511.60-
Co. Ltd. (Note 1)
Jiaxin Haishi JiaAn Zhicheng
27941495.40--1120872.94-----29062368.34-
Technology Ltd.Zhiguang Hailian Big Data
23245373.00--1452571.42--(300000.00)--24397944.42-
Technology Ltd.Terapark (Nanjing) Ltd. 18257785.52 - - (1806705.74) - 1090599.45 - - - 17541679.23 -
306Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Increase/ Decrease in the current reporting period
Closing
balance
Opening
The invested entity Adjustment to Other Declaration of
balance Additional Investment profit (loss)
Closing balance for
Investment other changes cash dividends Impairment
investments recognized under the others impairment
reduction comprehensive in equity or profit provision
(note2) equity Method provision
income (note1) distribution
Others 180983931.45 3000000.00 - 30041408.14 - 279928988.08 - - - 493954327.67 -
Subtotal 287370796.06 3000000.00 - 27475447.67 - 281019587.53 (300000.00) - - 598565831.26 -
1151104887.8
Total 13500000.00 - 30668990.87 - 338041770.66 (6092258.59) - - 1527223390.79 -
5
Note 1: Changes in other equities during the reporting period was due to the changes in equity caused by increasing or decreasing capital of the investee by other shareholders.Note 2: During the reporting period the Group made an additional investment of RMB 10500000.00 in a joint venture while maintaining its subscribed equity interest ratio unchanged.Additionally the Group newly invested RMB 3000000.00 in an associate acquiring a 30% equity stake.
14. Other Non-current Financial Assets
Unit: RMB
Item Closing balance Opening balance
Investments in equity instruments (Note) 472000082.76 472184937.66
Total 472000082.76 472184937.66
Note: It refers to the Group's equity investments. The Group has no control joint control or significant influence over these invested companies. During the current reporting period the
Group received a cash dividend of RMB61241171.99 from the investees. (2023: RMB65923840.33) and recognized it as current profit and loss. Please refer to Note (V) 52 for details.
307Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
15. Fixed Assets
(1) Details of fixed assets
Unit: RMB
Buildings and General-purpose Special-purpose Transportation
Item Total
constructions equipment equipment vehicles
I. Total original carrying amount
1. Opening balance (restated) 10718244713.16 2063240112.41 3621135777.30 106962561.92 16509583164.79
2. Increase in the current
3622041774.04473070615.961021757163.8810825607.945127695161.82
reporting period
1) purchase 116585618.70 469875616.21 566266251.04 10825607.94 1163553093.89
2) transferred to
3505456155.343194999.75454850445.12-3963501600.21
construction in progress
3) transferred from
inventory - - 640467.72 - 640467.72
3. Decrease in the current
14141833.4149272757.13124019016.327472082.60194905689.46
reporting period
1) disposal or write-off 14141833.41 49272757.13 87374960.15 7472082.60 158261633.29
2) transferred from
--36644056.17-36644056.17
construction in progress
4. Effect on conversion of
financial statements
(23734108.54)(22032397.28)(1379985.60)(3550912.44)(50697403.86)
denominated in foreign
currencies
5. Closing Balance 14302410545.25 2465005573.96 4517493939.26 106765174.82 21391675233.29
II. Accumulated depreciation
1. Opening balance
1900211554.761066700552.921961192410.1673166304.785001270822.62
(restated)
2. Increase in the current
532988200.72317336506.25631103472.8010303545.241491731725.01
reporting period
1) accrual 532988200.72 317336506.25 631103472.80 10303545.24 1491731725.01
3. Decrease in the current
6814691.0041220698.4997054551.455978344.74151068285.68
reporting period
1) disposal or write- off 6814691.00 41220698.49 69587837.31 5978344.74 123601571.54
2) transferred to
--27466714.14-27466714.14
construction in progress
4. Effect on conversion of
financial statements
(1864088.94)(9636345.23)(758033.48)(1752857.50)(14011325.15)
denominated in foreign
currencies
5. Closing balance 2424520975.54 1333180015.45 2494483298.03 75738647.78 6327922936.80
III. Total book value
Closing balance on book value 11877889569.71 1131825558.51 2023010641.23 31026527.04 15063752296.49
Opening balance on book value
8818033158.40996539559.491659943367.1433796257.1411508312342.17
(restated)
(2) As of December 31 2024 the book value of the special-purpose equipment rent out through operating leasing by the
Group is RMB54026704.89.
(3) Fixed assets of which certificates of title have not been granted as of December 31 2024
Unit: RMB
Carrying
Item Reason for certificates of title not granted
amount
Office space for branch offices 128504791.84 In the process of obtaining the real estate certificates
Wuhan Intelligence Industrial Park (Phase I) 912530497.27 In the process of obtaining the real estate certificates
Xi'an Science and Technology Park Project 1455012196.03 In the process of obtaining the real estate certificates
Total 2496047485.14
308Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
16. Construction in Progress
(1) Details of construction in progress
Unit: RMB
Closing balance Opening balance
Item
Carrying amount Provision Book value Carrying amount Provision Book value
Wuhan Science and Technology Park Project 1657649090.38 - 1657649090.38 415106.61 - 415106.61
EZVIZ Intelligent Manufacturing Chongqing Base
1144333377.23-1144333377.23628214692.80-628214692.80
Project(Infrastructure Part)
HikRobot Intelligent Manufacturing (Tonglu) Base
498800343.68-498800343.6820299490.56-20299490.56
Project
HikRobot Product Industrial Base Construction
199752968.31-199752968.3161417606.81-61417606.81
Project
Infrared Thermal Imaging Complete Machine
166668535.02-166668535.0270932363.98-70932363.98
Products Industrial Base
Wuhan Intelligence Industry Park Project (Phase II) 13854531.11 - 13854531.11 5671116.16 - 5671116.16
Xi'an Science and Technology Park Project - - - 1189310650.73 - 1189310650.73
Shijiazhuang Science and Technology Park Project
---276247602.73-276247602.73
(Phase II)
Chongqing Science and Technology Park Project
---257682402.52-257682402.52
(Phase III)
Others 1018414535.48 - 1018414535.48 1797460041.56 - 1797460041.56
Total 4699473381.21 - 4699473381.21 4307651074.46 - 4307651074.46
309Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
(2) Changes in significant construction in progress during the current reporting period
Unit: RMB
Transferred to fixed Amount invested as Construction
Budget Increase in the current
Item Opening balance assets during the current Closing balance a proportion of in Progress Source of funds
(RMB 0000) reporting period
reporting period budget amount (%) (%)
Wuhan Science and
189850.00 415106.61 1657233983.77 - 1657649090.38 87.31% 87.31% Self-financing
Technology Park Project
EZVIZ Intelligent
Manufacturing Self-financing/
117011.00628214692.80516118684.43-1144333377.2397.80%97.80%
Chongqing Base Project raised fund
(Infrastructure Part)
HikRobot Intelligent
Manufacturing (Tonglu) 107105.00 20299490.56 478500853.12 - 498800343.68 46.57% 46.57% Self-financing
Base Project
HikRobot Product
Industrial Base 101346.00 61417606.81 138335361.50 - 199752968.31 19.71% 19.71% Self-financing
Construction Project
Infrared Thermal
Imaging Complete
90216.00 70932363.98 95736171.04 - 166668535.02 18.47% 18.47% Self-financing
Machine Products
Industrial Base
Wuhan Intelligence
Industry Park Project
140460.00 5671116.16 8183414.95 - 13854531.11 0.99% 0.99% Self-financing
Hangzhou Innovation
Industry Park (Phase II)
Xi'an Science and
152557.00 1189310650.73 271269582.66 1460580233.39 - 95.74% 100.00% Self-financing
Technology Park Project
Shijiazhuang Science and
Technology Park Project 37483.00 276247602.73 80666336.75 356913939.48 - 95.22% 100.00% Self-financing
(Phase II)
310Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
17. Right-of-use Assets
Unit: RMB
Building and General-purpose Special-purpose Transportation
Items Total
construction equipment equipment vehicles
I. Total original carrying amount
1. Opening balance 923239274.81 11431418.12 117800728.19 23818132.30 1076289553.42
2. Increased 390546590.79 110068.19 - 10935529.58 401592188.56
(1) New lease 390546590.79 110068.19 - 10935529.58 401592188.56
3. Decreased 249670336.47 265028.82 91934144.20 5493686.57 347363196.06
(1) The lease contract
249670336.47265028.8291934144.205493686.57347363196.06
expires or terminates early
4. Effect on conversion of
financial statements denominated (29252683.11) (1813757.19) - (1302241.17) (32368681.47)
in foreign currencies
5. Closing balance 1034862846.02 9462700.30 25866583.99 27957734.14 1098149864.45
II. Accumulated depreciation
1. Opening balance 450980701.22 300315.09 89996638.11 13950502.34 555228156.76
2. Increased 272174025.72 10228679.30 4524164.49 8155978.82 295082848.33
(1) Provisions 272174025.72 10228679.30 4524164.49 8155978.82 295082848.33
3. Decreased 167186335.82 265028.82 91934144.20 5493686.57 264879195.41
(1) The lease contract
167186335.82265028.8291934144.205493686.57264879195.41
expires or terminates early
4. Effect on conversion of
financial statements denominated (15924975.16) (907058.96) - (587934.90) (17419969.02)
in foreign currencies
5. Closing balance 540043415.96 9356906.61 2586658.40 16024859.69 568011840.66
III. Total book value
1. Closing balance on book value 494819430.06 105793.69 23279925.59 11932874.45 530138023.79
2. Opening balance on book value 472258573.59 11131103.03 27804090.08 9867629.96 521061396.66
18. Intangible Assets
(1) Details of construction in progress
Unit: RMB
Intellectual property
Item Land use right Application software Franchise Total
right
I. Total original carrying amount
1. Opening balance 1715411561.60 274154371.83 416681260.92 110245727.75
2516492922.10
2. Increased 68190841.13 4479079.11 43681536.86 1822301.03 118173758.13
(1) Purchase 68190841.13 4479079.11 43681536.86 1822301.03 118173758.13
3. Decreased - - 6195110.29 - 6195110.29
(1)Disposal or write-off - - 6195110.29 - 6195110.29
4. Effect on conversion of financial
statements denominated in foreign - (83282.97) (1388667.85) (25608.79) (1497559.61)
currencies
5. Closing balance 1783602402.73 278550167.97 452779019.64 112042419.99 2626974010.33
II. Total accumulated amortization
1. Opening balance 170369804.14 98491176.89 370414597.74 24706728.39 663982307.16
2. Increased 37592424.49 35357858.45 21241730.18 5807880.50 99999893.62
(1)Accrual 37592424.49 35357858.45 21241730.18 5807880.50 99999893.62
311Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Intellectual property
Item Land use right Application software Franchise Total
right
3. Decreased - - 5983159.56 - 5983159.56
(1)Disposal or write-off - - 5983159.56 - 5983159.56
4. Effect on conversion of financial
statements denominated in foreign - (72405.05) (1254181.26) (19644.06) (1346230.37)
currencies
5. Closing balance 207962228.63 133776630.29 384418987.10 30494964.83 756652810.85
III. loss provision
1. Opening balance - - - 42034063.49 42034063.49
2. Closing balance - - - 42034063.49 42034063.49
Ⅳ. Total book value
1. Closing balance on book value 1575640174.10 144773537.68 68360032.54 39513391.67 1828287135.99
2. Opening balance on book value 1545041757.46 175663194.94 46266663.18 43504935.87 1810476551.45
(2) At the end of the current reporting period the land use right of the Group that has not completed the title certificate is
nil.
19. Goodwill
(1) Goodwill book value
Unit: RMB
Effect on conversion of
The name of the investee or the matter Opening Increased Decreased financial statements Closing
that forming a goodwill balance denominated in foreign balance
currencies
Wuhu Sensortech Intelligent Technology
Ltd. (hereinafter referred to as the
92088117.87---92088117.87
"Wuhu Sensortech") and Hebei
Sensortech
SISTEMAS Y SERVICIOS DE
81236394.36--1212346.5482448740.90
COMUNICACIóN S.A. DE C.V.Henan HuaAn Baoquan Intelligence
61322871.63---61322871.63
development Ltd. and its subsidiaries
Hangzhou Kuangxin Technology Ltd. 59060454.06 - - - 59060454.06
Zhejiang Zhiyuan Fire Safety
8199253.77---8199253.77
Engineering Ltd.BK EESTI AKTSIASELTS 4726554.16 - - (200568.23) 4525985.93
SIA "BK Latvia" 4719995.03 - - (200289.90) 4519705.13
Total 311353640.88 - - 811488.41 312165129.29
(2) Information about the asset group or asset group combination to which the goodwill belongs
The composition and basis of the asset group or Whether it is consistent with
Name
portfolio to which it belongs previous years
Wuhu Sensortech and Hebei Sensortech Yes
SISTEMAS Y SERVICIOS DE
Yes
COMUNICACIóN S.A. DE C.V.Henan HuaAn Baoquan Intelligence Yes
The portfolio of the assets generates cash inflows
development Ltd. and its subsidiaries
independently.Hangzhou Kuangxin Technology Ltd. Yes
Zhejiang Zhiyuan Fire Safety Engineering Ltd. Yes
BK EESTI AKTSIASELTS Yes
SIA "BK Latvia" Yes
312Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
(3) Goodwill impairment provision
When the Group conducts impairment test on goodwill at the end of the reporting period the key assumptions adopted
and their basis are as follows:
The recoverable amount of asset group portfolios containing apportioned goodwill is determined according to the present
value of the estimated future cash flow of the relevant asset group portfolios. The forecast period for future cash flows is
5 years. The projection of future cash flows is based on management's estimate of sales revenue cost of sales and operating
expenses for the expected period based on past performance and expectations of market developments. The cash flow
growth rate over 5 years is 0-2%.During the reporting period the Group did not find that the recoverable amount of the relevant asset group portfolios
including the apportioned goodwill was lower than its book value so it is considered that there is no need to accrue
impairment loss for goodwill.
20. Long-term Deferred Expenses
Unit: RMB
Difference of
Opening Other decreased
Invested unit Increased Amortized foreign currency Closing balance
Balance amount
translation
Improvement
expenditure for 134762545.46 78489865.00 79816489.15 - (1879298.72) 131556622.59
leased fixed asset
Employee
housing loan 42598988.47 6476901.90 17299277.22 491476.83 - 31285136.32
deferred interest
Total 177361533.93 84966766.90 97115766.37 491476.83 (1879298.72) 162841758.91
21. Deferred Tax Assets/ Deferred Tax Liabilities
(1) Deferred tax assets that are not presented on net off basis
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for impairment
1069364511.58262572804.771127769340.63278268231.18
losses of assets
Provision for credit loss 4124476014.55 871658710.55 3364947416.28 704178085.23
Share-based payments - - 93168926.31 16404683.77
Provisions 222850155.25 42567907.88 135644054.99 24189557.95
Accrued but unsettled
2328549255.13397756108.862515576691.84426431441.31
liabilities
Unrealized profit from inter-
3007410744.33451057918.472578365430.99367414352.61
group transactions
Changes in the fair value of
derivative financial 1874341.64 468585.41 38079755.04 9519938.76
instruments
Deferred income 868928757.73 138068886.25 940537242.40 127045105.84
Changes in fair value of
other non-current financial 64034397.24 9605159.59 32396750.76 4859512.61
assets
Difference in depreciation of
fixed assets and difference
186042413.5630689292.90199086488.7532012352.33
in amortization of intangible
assets
Tax deductible losses 1104881983.80 174500339.85 1205938357.65 184742525.11
Lease liabilities 542520611.31 79492726.88 517071628.81 81703353.99
313Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Others 151226802.47 47687727.75 79735281.12 23121972.50
Total 13672159988.59 2506126169.16 12828317365.57 2279891113.19
(2) Deferred tax liabilities that are not presented on net off basis
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Difference in depreciation of
fixed assets and difference in
1404309520.48245623102.731446155125.82257662359.02
amortization of intangible
assets
Long term investment –
partnership accounted by the 268063887.91 40209583.19 191356253.14 28703437.97
equity method
Changes in the fair value of
derivative financial 26775923.93 6693980.98 37380.00 9345.00
instruments
Changes in the fair value of
other non-current financial 19420700.00 4855175.00 19420700.00 4855175.00
assets
Right-of-use assets 530138023.79 77298681.61 521061396.66 80828988.24
Valuation and appreciation of
assets of business
139474285.6834868571.42174342857.1643585714.29
combinations not under
common control
Others 11688743.69 3097280.69 47107004.45 15740059.70
Total 2399871085.48 412646375.62 2399480717.23 431385079.22
(3) Deferred tax assets or deferred tax liabilities that are presented at the net amount after offset
Unit: RMB
Closing balance Opening balance
Deferred tax assets or Offset amount at the Deferred tax assets or Item Offset amount at the end
liabilities at the net beginning of the liabilities at the net
of the reporting period
amount after offset reporting period amount after offset
Deferred tax assets 299935012.10 2206191157.06 301518101.04 1978373012.15
Deferred tax liabilities 299935012.10 112711363.52 301518101.04 129866978.18
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 348425118.87 342665221.23
Deductible loss 4872004375.75 3281013576.44
Total 5220429494.62 3623678797.67
314Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
(5) Deductible losses for unrecognized deferred tax assets will expire in the following years
Unit: RMB
Year Closing balance Opening balance
2024-15999871.35
20255064844.906519258.67
202621423245.8124119133.46
202733535700.0738699273.23
2028305106077.53382611825.49
2029 and beyond 4506874507.44 2813064214.24
Total 4872004375.75 3281013576.44
22. Other Non-current Assets
Unit: RMB
Closing balance Opening balance
Item
Carrying amount Provision Book value Carrying amount Provision Book value
Contract assets 2081248707.05 17493381.00 2063755326.05 1893506565.03 15397380.73 1878109184.30
Prepayments for
135783923.33-135783923.33962718172.95-962718172.95
real estate
Prepayments for
acquisition of 89318973.58 - 89318973.58 1049973.59 - 1049973.59
land
Prepayments for
61129209.00-61129209.0068421659.50-68421659.50
equipment
Prepayments for
3122181.73-3122181.738032635.16-8032635.16
infrastructure
Others 51370.95 - 51370.95 2017718.89 - 2017718.89
Total 2370654365.64 17493381.00 2353160984.64 2935746725.12 15397380.73 2920349344.39
23. Assets with Restriction in Ownership or Use Rights
Unit: RMB
Item Book value at the end of the current reporting period Cause of restriction
Cash and bank balances 218445956.74 Various guarantee deposits and other restricted funds
Notes receivable 1274931981.36 Endorsed to the supplier or discounted to the bank
Accounts receivable 352621694.25 Pledged for long-term borrowings
Contract assets 128422846.09 Pledged for long-term borrowings
Fixed assets 54026704.89 Fixed assets leased out under operating leases
Intangible assets 12166524.79 Pledged for long-term borrowings
Other non-current assets 1276495354.49 Pledge for long-term borrowings
Total 3317111062.61
Unit: RMB
Book value at the beginning of the current reporting
Item Cause of restriction
period
Cash and bank balances 210191306.76 Various guarantee deposits and other restricted funds
Endorsed to the supplier discounted to the bank and
Notes receivable 1172749062.48
pledged for issuing bank acceptance bills
Receivables for financing 42274830.03 Pledged for issuing bank acceptance bills
Accounts receivable 320648995.89 Pledged for long-term borrowings
Contract assets 129223004.39 Pledged for long-term borrowings
Fixed assets 79633944.01 Fixed assets leased out under operating leases
315Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Book value at the beginning of the current reporting
Item Cause of restriction
period
Intangible assets 37374930.65 Pledged and mortgage for long-term borrowings
Other non-current assets 1500999221.99 Pledge for long-term debts
Total 3493095296.20
24. Short-term Borrowings
(1) Categories of short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Credit loan 997485670.23 2084385782.09
Discounted but not expired notes (Note (V) 3) 34410142.39 34566243.97
Total 1031895812.62 2118952026.06
(2) As of December 31 2024 the Group did not have any overdue short-term loans that were failed to repay.
25. Derivative Financial Liabilities
Unit: RMB
Item Closing balance Opening balance
Forward foreign exchange contracts 1874341.64 38079755.04
total 1874341.64 38079755.04
As of December 31 2024 derivative financial liabilities are forward foreign exchange contracts which are not designated
as hedging instruments measured at fair value and their changes are recognized in profit and loss for the current period.
26. Notes Payable
List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 1197128746.56 1163687279.58
Total 1197128746.56 1163687279.58
As of December 31 2024 the Group did not have any unpaid matured notes payable.
27. Accounts Payable
(1) List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Payments for goods 19158300660.13 18669058955.74
Payables on project equipment 1027002447.56 494426932.35
Total 20185303107.69 19163485888.09
(2) As of December 31 2024 the Group did not have any significant accounts payable with aging above one year.
316Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
28. Contract Liabilities
(1) List of contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advanced receipts from product sales 2541743559.81 2411948613.09
Advanced receipts from construction settlement payment 342197373.57 267231078.24
Advanced receipts from other services payment 544032069.70 328951851.34
Subtotal 3427973003.08 3008131542.67
Less: Contract liabilities included in other non-current liabilities
74029948.8430140767.27
(Note (V) 38)
Total 3353943054.24 2977990775.40
(2) As of the end of the 2024 the Group has no significant contract liabilities with an aging period exceeding one year.
(3) Qualitative and Quantitative Analysis on the Above Contract Liabilities:
Advanced receipts from product sales are prepayments for goods by customers and sales rebates provided to distributors.Revenue will be recognized when the goods are shipped to or delivered to the customer and sales rebates provided to
resellers will be recognized when resellers use sales rebates to offset the price.Advanced receipts from construction settlement payment are the part of the contract price received or receivable from the
customer for the construction project according to the contract according to the contract provisions in excess of the
cumulative completed performance obligations and the revenue will be recognized according to the performance progress
during the contract period.Advanced receipts from other services payment are the cloud service fees paid in advance by some customers and the part
of the contract price received or receivable from customers for operation and maintenance according to the contract
provisions that exceeds the cumulative completed performance obligations and the revenue will be recognized according
to the performance progress during the service period.
(4) The amount of RMB 2977990775.40 in the contract liabilities at the beginning of the year has been recognized as
revenue during this year. It is expected that RMB 30140767.27 will be recognized as revenue in 2025 and beyond. The
year-end contract liabilities are expected to recognize RMB 3353943054.24 as revenue within the next year and RMB
74029948.84 in 2026 and beyond.
29. Payroll Payable
(1) Details of payroll payable
Unit: RMB
Increase in the Decrease in the
Opening balance
Item current reporting current reporting Closing balance
(restated)
period period
1. Short-term remuneration 6031274769.74 18261307521.20 18737146923.04 5555435367.90
2. Termination benefits – defined
89196511.041470873139.521449089184.36110980466.20
contribution scheme
Total 6120471280.78 19732180660.72 20186236107.40 5666415834.10
317Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
(2) List of Short-term remuneration
Unit: RMB
Opening balance Increase in the current Decrease in the current
Item Closing balance
(restated) reporting period reporting period
1. Wages or salaries
bonuses allowances and 5563702232.42 15194989269.67 15805423620.56 4953267881.53
subsidies
2. Staff welfare 612991.96 624569199.47 594563244.14 30618947.29
3. Social insurance
38766515.01756566713.74748481673.2046851555.55
contributions
Including:
36814275.30717254802.38710325452.1843743625.50
Medical insurance
Injury insurance 1744358.44 35358160.08 34063784.28 3038734.24
Maternity insurance 207881.27 3953751.28 4092436.74 69195.81
4. Housing funds - 1408489560.73 1404655026.62 3834534.11
5. Labor union and
428193030.35276692777.59184023358.52520862449.42
education fund
Subtotal 6031274769.74 18261307521.20 18737146923.04 5555435367.90
(3) List of defined contribution plan
Unit: RMB
Opening balance Increase in the Decrease in the
Item Closing balance
(restated) current period current period
1. Basic pension insurance 87283204.70 1416767806.77 1397068691.06 106982320.41
2. Unemployment insurance 1913306.34 54105332.75 52020493.30 3998145.79
Subtotal 89196511.04 1470873139.52 1449089184.36 110980466.20
Note: The Group participates in pension insurance and unemployment insurance plans established by government agencies
in accordance with regulations. According to these plans the Group pays monthly fees to these plans in proportion to the
payment base. The Group has no other material obligation for the payment of pension benefits beyond the contributions
described above and corresponding expenses were booked into current profits and losses or corresponding assets.In 2024 the Group shall pay RMB1416767806.77 and RMB54105332.75 to the pension insurance plan and
unemployment insurance plan respectively (2023: RMB1148680658.64 and RMB43814265.77). As of December 31
2024 the Group had fees payables of RMB106982320.41 and RMB3998145.79 (December 31 2023:
RMB87283204.70 and RMB1913306.34) which were due but not paid during the reporting period for pension and
unemployment insurance plans.
30. Taxes Payable
Unit: RMB
Item Closing balance Opening balance (restated)
Corporate income tax 913040846.83 990235254.45
Value-added tax 404940647.59 476152883.91
City construction and maintenance tax 26303950.83 28555595.11
Education surcharges 11664982.93 11969432.94
Local education surcharges 8323731.96 8314407.76
Others 171661935.88 107322613.69
Total 1535936096.02 1622550187.86
318Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
31. Other Payables
31.1 Categories
Unit: RMB
Item Closing balance Opening balance
Dividend payables 186793.11 253957413.29
Other payables 3528172251.37 3657655427.77
Total 3528359044.48 3911612841.06
31.2 Dividend payables
Unit: RMB
Item Closing balance Opening balance
Dividends of incentive restricted shares - 155844168.00
Dividends payable to minority shareholders 186793.11 98113245.29
Total 186793.11 253957413.29
31.3 Other payables
(1) List of other payables according to the nature of the payment
Unit: RMB
Item Closing balance Opening balance
Unexpired commercial acceptance bills that were endorsed (Note
1240521838.971123427383.57
(V) 3)
Accrued expenses 1527405326.55 1682496005.40
Guarantee and deposit fees 477797205.49 445461469.36
Collection and payment on behalf 209269289.66 294323679.79
Other expense payable 73178590.70 111946889.65
Total 3528172251.37 3657655427.77
(2) As of December 31 2024 the Group did not have any significant other payables aging over one year.
32. Non-current Liabilities Due within One Year
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings due within one year (Note (V) 34) 586589318.45 5627525836.16
Lease liabilities due within one year (Note (V) 35) 180403223.06 184722447.43
Long-term payables due within one year 38147.40 2411931.37
Total 767030688.91 5814660214.96
319Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
33. Other Current Liabilities
Unit: RMB
Item Closing balance Opening balance
Subscription payment of restricted shares - 1095194890.62
Output VAT to be transferred 377117275.65 386027153.57
Total 377117275.65 1481222044.19
34. Long-term Borrowings
Unit: RMB
Item Closing balance Opening balance
Pledged loan (Note 1) 1033059164.49 1259495605.29
Mortgage loan - 320694296.02
Credit loan (Note 2) 4672715153.96 12959458895.86
Other borrowing (Note 3) - 28000000.00
Less: Long-term loans due within one year (Note (V) 32) 586589318.45 5627525836.16
Total 5119185000.00 8940122961.01
Note 1: As of December 31 2024 the pledged loan was mainly obtained by the Group with all the rights and benefits
pledged under relevant PPP Projects. The maturity period is from June 20 2028 to March 26 2040 the above annual
interest rate of the loan is variable interest rate ranging from 3.61% to 4.25%.Note 2: As of December 31 2024 the maturity period of credit loan is from July 22 2025 to Feburary 8 2028 and the
annual interest rate ranges from 1.75% to 3.40%
Note 3: During 2016 the Group and CDB Development Fund Ltd. (CDBDF) jointly injected capital into Hangzhou
Hikvision Electronics Co. Ltd. ("Hangzhou Electronics") a subsidiary of the Group. Pursuant to the capital injection
agreement CDBDF would not participate in senior management personnel such as directors and it would either take part
in decision-making or make significant influence on Hangzhou Electronics. The Group shall pay a 1.2% annualized return
to CDBDF through dividends or interest payments and the Group is required to redeem its equity holdings from CDBDF
in installments each year from 2021 to 2024. Therefore the capital injection by CDBDF is treated as a long-term loan. As
the end of the reporting period the Group has cumulatively redeemed the equity of Hangzhou Electronics held by CEBDF
for a total amount of RMB 190 million and the balance of the loan is zero (December 31 2023: RMB 28 million).
35. Lease Liabilities
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 555835972.74 528728313.56
Less: Lease liabilities due within one year (Note (V) 32) 180403223.06 184722447.43
Total 375432749.68 344005866.13
The Group's lease liabilities are analysed according to the maturity period of the remaining undiscounted contractual
obligations as follows:
Unit: RMB
Item Closing balance Opening balance
Within 1 year 191378600.65 197066597.67
1- 5 years 375285265.86 324095420.30
320Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Item Closing balance Opening balance
Over 5 years 29402566.24 41329449.20
Total 596066432.75 562491467.17
36. Provisions
Unit: RMB
Item Closing balance Opening balance
Product quality warranty 283376593.23 197386826.08
Return payment payable 21873456.48 15697212.23
Total 305250049.71 213084038.31
37. Deferred Income
Unit: RMB
Increase in current Decrease in current
Item Opening balance Closing balance
reporting period reporting period
Government Subsidies (Note (VIII) 1) 966259592.34 291742286.11 383489804.92 874512073.53
Total 966259592.34 291742286.11 383489804.92 874512073.53
38. Other Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Subscription for restricted stocks - 1642792335.93
Contract liabilities (Note (V) 28) 74029948.84 30140767.27
Total 74029948.84 1672933103.20
39. Share Capital
Unit: RMB
Changes for the current reporting period
Opening balance New issue Bonus Restricted Closing balance
Others Subtotal
of shares issue repurchased shares
Total shares 9330600931.00 - - (97402605.00)) - (97402605.00) 9233198326.00
Note: According to the Proposal on Terminating the Implementation of the 2021 Restricted Stock Plan and Repurchasing
and Canceling Relevant Restricted Shares that is reviewed and approved by the 20th meeting of the 5th session of the
Board of Directors the 18th meeting of the 5th session of the Board of Supervisors and 2023 Annual General Meeting it is
agreed the company terminate the implementation of the 2021 Restricted Stock Plan and repurchase and cancel all
restricted stocks granted but not yet unlocked. In 2024 the Company reduced its share capital by RMB97402605.00 and
its capital reserve by RMB2796377189.55. The Company completed the deregistration on August 15 2024.
321Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
40. Capital Reserves
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance reporting period reporting period Closing balance
(Note 1) (Note 2)
Share capital
6989138129.401383877950.502812856534.905560159545.00
premium
Other capital
875765634.121127958356.121382239270.18621484720.06
reserves
Total 7864903763.52 2511836306.62 4195095805.08 6181644265.06
Note 1: The increase of RMB1382239270.18 in the share capital premium in the current period was due to the transfer
of other capital reserves to share capital premiums due to the exercise of equity-settled share-based payments.During the current period the Group received an international operation subsidy of RMB 2007056.47 from its actual
controlling party China Electronics Technology Group Corporation (hereinafter referred to as "CETC"). This increased
the Group's share capital premium by RMB 1517235.64 and minority interests by RMB 489820.83. Please refer to Note
(XI) 5(4) for details.The increase in share capital premium in the current reporting period of RMB121 444.68 is due to the Group's acquisition
of the original minority shareholders' equity in its subsidiaries Hua'an Security Electronics Hua'an Security Intelligence
and Hua'an Security Services resulting in the Group's ownership increasing to 100%. Please refer to Note (VII) 2(1).The increase in other capital reserves in the current reporting period of RMB798833409.72 is due to the equity-settled
share-based payment; RMB329124946.40 was due to changes in other equity of the investees in the long-term equity
investments accounted for by the equity method.Note 2: The decrease of RMB2796377189.55 in share capital premium in the current reporting period was due to the
repurchase and cancellation of 97402605 restricted shares by the Company. Please refer to Note (V) 39.The decrease of RMB 16479345.35 in the share premium in the current reporting period was due to the portion of equity-
settled share-based payments shared by the non-controlling interests.
41. Treasury Shares
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
reporting period reporting period
Restricted shares
2737987226.55-2737987226.55-
incentive scheme
Outstanding shares - 310044296.12 - 310044296.12
Total 2737987226.55 310044296.12 2737987226.55 310044296.12
Note: The increase of 310044296.12 shares in treasury shares during the current reporting period is due to the repurchase
of 10000219 shares through centralized bidding using its own funds and the repurchased shares are held in the special
securities account for share repurchase.The decrease in treasury shares includes the repurchase and cancellation of 97402605 restricted shares reducing treasury
shares by RMB 2737987226.55. For more details see Note (V) 39..
322Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
42. Other Comprehensive Income
Unit: RMB
Amounts occurred in the current reporting period
Less:
The before- transfer to
income-tax current
amount Attributable to Opening
Item period P/L
Less: Attributable to
balance incurred income the parent minority
Closing balance
from
during the tax company (after shareholders
current previous expense tax) (after tax)
reporting other
period comprehens
ive income
Other incomes
that may be
reclassified 44667516.16 (285156327.33) - - (156178002.37) (128978324.96) (111510486.21)
subsequently to
profit or loss
Including: Effect
on conversion of
financial
44667516.16(285156327.33)--(156178002.37)(128978324.96)(111510486.21)
statements
denominated in
foreign currencies
Other
comprehensive 44667516.16 (285156327.33) - - (156178002.37) (128978324.96) (111510486.21)
income
43. Surplus Reserves
Unit: RMB
Increase in the Decrease in the
current current
Item Opening balance Closing balance
reporting reporting
period period
Statutory surplus reserves 4715460312.00 - - 4715460312.00
Total 4715460312.00 - - 4715460312.00
Note: According to the Company Law of the People's Republic of China and the Articles of Association of the Company The Company shall
withdraw the statutory surplus reserve fund at 10% of the annual net profit of the parent company and when the accumulated amount of the
statutory surplus reserve fund reaches more than 50% of the registered capital it may not be withdrawn. The statutory surplus reserve can be
used to make up for losses or increase the share capital after approval. The accumulated amount of the Company's statutory surplus reserve is
RMB 4715460312.00 which exceeds 50% of the Company's share capital.
44. Retained Earnings
Unit: RMB
Item 2024 2023 (Restated)
Retained Earnings at the close of the prior reporting period
57136620244.0149460240986.49
before adjustments
Adjustments on retained earnings at the open of the
-182975.56
current reporting period
Retained Earnings at the close of current he reporting
57136620244.0149460423962.05
period after adjustments
Add: Net profit attributable to the parent company for the
11977327023.5414107726276.26
reporting period
Less: withdraws on the statutory surplus reserve - -
Dividends payable on common shares (Note 1) 8154034325.40 6431425077.70
323Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Item 2024 2023 (Restated)
Others (Note 2) 104916.60
Retained earnings at the end of the current reporting
60959912942.1557136620244.01
period
Note 1: According to the resolution of 2023 Annual General Meeting dated on May 10 2024 based upon the total capital share of the
Company on the equity distribution date for each 10 ordinary shares the Company distributed cash dividends of RMB 9 (tax inclusive) the
rest of retained earnings were all carried forward for future distributions.Note 2: The subsidiary company EZVIZ Network of the Group signed a management entrustment agreement with the parent company
CETHIK Group Ltd. (hereinafter referred to as "CETHIK") for Furui Technology this year. This transaction constitutes a business
combination under common control. For details see Note (VI) 1. According to the management entrustment agreement the net profit
generated by Furui Technology in the previous year actually belongs to CETHIK.
45. Revenue / cost of sales and services
(1) Revenue and cost of sales and services
Unit: RMB
2024 2023 (Restated)
Item
Revenue Cost Revenue Cost
Major business 91848150416.12 51450813344.31 88735530906.73 49331525439.10
Other business 647374702.18 503044567.90 605646703.67 401243108.47
Total 92495525118.30 51953857912.21 89341177610.40 49732768547.57
(2) Revenue (by product or business type)
Unit: RMB
Item 2024 2023 (Restated)
Products and services for main business (Note) 67963258099.83 68781078704.92
Constructions of main business 2048116006.90 2007188913.81
Innovative businesses 22484151011.57 18552909991.67
Including: Robotic business 5928825303.14 4940495688.57
Smart home business 5190222359.58 4686023001.37
Thermal imaging business 4191132575.45 3284778727.13
Auto electronics business 3919493044.46 2706680020.16
Storage business 2314389221.29 1931387706.41
Other innovative businesses 940088507.65 1003544848.03
Total 92495525118.30 89341177610.40
Note: Main business refers to the business parts other than the innovative businesses.
(3) Major business (by business type)
Unit: RMB
2024
Item
Revenue Cost
Product sales 87408184677.06 48876816169.66
Construction contract 2048116006.90 1624213884.66
Provide services 2391849732.16 949783289.99
Total 91848150416.12 51450813344.31
(4) Major business (by the time of revenue recognition)
324Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Unit: RMB
2024
Item
Revenue Cost
Recognized at a point in time 87408184677.06 48876816169.66
Recognized over time 4439965739.06 2573997174.65
Total 91848150416.12 51450813344.31
46. Business Taxes and Surcharges
Unit: RMB
Item 2024 2023
City construction and maintenance tax 289723169.24 314257068.06
Education surcharges 127072888.33 136548924.16
Real estate tax 93318578.98 68387163.53
Local education surcharges 84715259.14 91032619.45
Stamp duty 78856150.38 83472191.23
Tax on use of land 14983870.80 7973676.69
Vehicle and vessel tax 133510.29 142212.47
Others 3482500.20 2827523.10
Total 692285927.36 704641378.69
47. Selling Expenses
Unit: RMB
Item 2024 2023 (Restated)
Payroll 7332316817.36 6810618419.65
Marketing Expenses 1925239948.86 1451289954.94
Travelling expenses 629945028.62 535865115.05
Shipping transportation and vehicle expense 442927059.62 399732317.41
Office expenses 360077188.10 292733211.13
Depreciation and amortization expenses 323848822.04 278842930.03
Business hospitality expenses 306984860.46 299654749.49
Professional Intermediary expenses 293901523.38 204146036.74
Rental expenses 55316900.89 97873220.30
Others 380659953.29 376032121.27
Total 12051218102.62 10746788076.01
325Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
48. Administrative Expenses
Item 2024 2023 (Restated)
Payroll 1896569807.90 1695038546.31
Depreciation and amortization expenses 435391420.72 331435183.33
Office expenses 308564147.69 300578446.48
Professional Intermediary expenses 97689845.38 109043766.60
Shipping transportation car expense 63738885.26 62205098.49
Travelling expenses 57416967.08 48698135.31
Business hospitality expenses 14512396.60 12101649.04
Others 222056173.29 211680377.89
Total 3095939643.92 2770781203.45
49. R&D Expenses
Unit: RMB
Item 2024 2023
Payroll 9199042429.59 9106625103.96
Consumables and service fees 1080897304.01 827535055.34
Depreciation and amortization expenses 420528831.63 396521961.36
Intermediate testing fees 378195302.14 279447277.60
Office expenses 316503443.21 294212819.79
Travelling expenses 197483910.19 186837407.75
New product design fees 172623502.86 197702784.59
Others 98738668.64 104065994.08
Total 11864013392.27 11392948404.47
50. Financial Expenses
Unit: RMB
Item 2024 2023 (restated)
Interest expenses 355616402.34 443682056.79
Interest expense on lease liabilities 41603299.47 20277211.42
Less: Interest income 878035430.32 1067169946.60
Foreign exchange losses (gains) 291278463.86 (201813404.51)
Less: Capitalized specific loan interests and foreign
5815514.686354148.62
exchange differences on specific loan
Others 80535286.17 61577947.73
Total (114817493.16) (749800283.79)
326Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
51. Other Income
Unit: RMB
Item 2024 2023 (restated)
VAT refund 1874624340.02 1905727477.36
Special subsidies 688670655.22 594438518.34
Others 90387815.63 59357247.29
Total 2653682810.87 2559523242.99
52. Investment Income
Unit: RMB
Item 2024 2023
Long-term equity investment gains (losses) based on the equity
30668990.87(29966477.85)
method
Investment income from other non-current financial assets during
61241171.9965923840.33
the holding period
Investment income (losses) from disposal of derivative financial
(5998577.35)(90195333.19)
assets
Income (losses) from multi-transactions business combination of
-116433610.45
enterprises not under the same control
Income from Debt Restructuring 101109433.26 -
Others - 1106664.51
Total 187021018.77 63302304.25
Note: During the reporting year the Group and its debtor restructured accounts receivable with book value of RMB 49360966.74 by adjusting
the principal amount and changing the repayment terms. This reduced the original value of accounts receivable by RMB 180617041.15 and
decreased the allowance for bad debts by RMB 131256074.41. The debt forgiveness amounted to RMB 30146641.15. The total gain
recognized due to the debt restructuring this year was RMB 101109433.26.
53. Gains (Losses) from Changes in Fair Values
Unit: RMB
Sources of gains (losses) from changes in fair values 2024 2023
Gains (losses) from changes in fair value of derivative financial assets 26738543.93 (12770058.36)
Gains (losses) from changes in fair value of other non-current financial
(15184854.90)5229385.72
assets
Gains (losses) on the changes in fair value of derivative financial liabilities 36205413.40 30219930.53
Total 47759102.43 22679257.89
54. Credit Impairment Gains (Losses)
Unit: RMB
Item 2024 2023
Credit impairment gains (losses) on notes receivable (562417.45) (2492390.65)
Credit impairment gains (losses) on accounts receivable (928758599.26) (743585106.95)
Credit impairment reverses gains (losses) on other receivables (1816609.21) (1453975.50)
Credit impairment gains (losses) on long-term receivables (137651879.82) (132391300.15)
Total (1068789505.74) (879922773.25)
327Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
55. Impairment Gains (Losses) of Assets
Unit: RMB
Item 2024 2023
Gains (losses) on inventory depreciation (444233922.43) (467275356.52)
Gains (losses) on impairment of contract assets (including the portion
(1680465.16)3893081.40
recognized in other non-current assets)
Total (445914387.59) (463382275.12)
56. Non-operating Income
Unit: RMB
The amount booked into current
Item 2024 2023 period non-recurring profits and
losses
Fines and confiscations 45474188.29 71548457.58 45474188.29
Government subsidies 829499.67 630722.79 829499.67
Others 17433894.39 15393939.67 17433894.39
Total 63737582.35 87573120.04 63737582.35
57. Non-operating Expenses
Unit: RMB
2023 The amount booked into current period Item 2024
non-recurring profits and losses
Local water conservancy construction fund 2862778.24 2682863.47 -
Donation expenses 2796454.31 2078792.44 2796454.31
Losses on disposal of non-current assets 322794.37 4832681.02 322794.37
Others 26508611.94 18338679.98 26508611.94
Total 32490638.86 27933016.91 29627860.62
58. Income Tax Expenses
(1) Details of income tax expenses
Unit: RMB
Item 2024 2023 (Restated)
Income tax for the current reporting period 1797231764.17 1839138688.39
Deferred income tax expenses (262111502.20) (535918231.15)
Differences in filing and payment of income tax in previous
(332648682.48)(359906588.34)
reporting years
Total 1202471579.49 943313868.90
(2) Reconciliation of income tax expenses to the accounting profit
328Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Unit: RMB
Item 2024 2023 (Restated)
Total profit 14343493640.00 16099215632.11
Income tax expenses calculated at applicable tax rates of
2151524046.002414882344.80
15%
Impact of non-deductible costs expenses and losses 191981349.17 34413929.90
Tax effect of non-taxable income (1504602.82) (98174019.29)
Impact of deductible temporary differences or deductible
losses for which no deferred income tax assets is 294369183.13 172197460.01
recognized for the current period
Impact of using deductible temporary differences or
deductible losses for which no deferred income tax assets (33438275.11) (117780210.38)
was recognized for the prior periods
Differences of income tax annual filing (332648682.48) (359906588.34)
Impact by different tax rates applicable to different
273802509.46184279068.80
subsidiaries
Impact of additional deduction of R&D expenses (1327003879.64) (1272836446.36)
Others (14610068.22) (13761670.24)
Income tax expenses 1202471579.49 943313868.90
59. Notes to Consolidated Cash Flow Statement Items
(1) Cash flow from operating activities
Other cash receipts relating to operating activities
Unit: RMB
Item 2024 2023 (Restated)
Interest income 750781420.97 938159935.34
Government subsidies 597752636.08 598933415.73
Withdrawal of restricted currency funds 234681725.23 115110998.04
Others 177629415.85 154289838.61
Total 1760845198.13 1806494187.72
Other cash payments relating to operating activities
Unit: RMB
Item 2024 2023 (Restated)
Office expenses and business expenses 2022766137.12 1714220908.73
R&D expense 1631755731.65 1310339918.88
Advertising and selling service 1295809508.16 1100850473.21
Travelling expense 884845905.89 771400658.11
Outsourcing service fees fees for hiring intermediaries etc. 514516193.91 457158581.72
Shipping and transportation expense 506665944.88 461937415.90
Deposits to restricted monetary funds 242936375.21 123808399.08
Rental expense 59220236.26 118308723.14
Others 370710380.02 229907809.53
Total 7529226413.10 6287932888.30
(2) Cash flow from investing activities
Cash receipts relating to important investing activities
329Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Unit: RMB
Item 2024 2023
Forward foreign exchange contract 3002416092.15 4687808134.25
Total 3002416092.15 4687808134.25
Cash payments relating to important investing activities
Unit: RMB
Item 2024 2023
Forward foreign exchange contract payments 3017921031.55 4778003467.44
Cash paid for the purchase and construction of fixed assets
4665742203.724047816024.05
intangible assets and other long-term assets
Total 7683663235.27 8825819491.49
Other cash receipts relating to investing activities
Unit: RMB
Item 2024 2023
Receipts of financing lease payments 84419763.14 121237455.42
Total 84419763.14 121237455.42
(3) Cash flow from financing activities
Other cash receipts relating to financing activities
Unit: RMB
Item 2024 2023
Cash receipts from project fund (refer to XI 5(4) for details) 2007056.47 5000000.00
Other cash payments relating to financing activities
Unit: RMB
Item 2024 2023
Repurchase of restricted shares 2723810978.11 655807536.16
Repayment of lease liabilities 332488237.61 285474093.26
Repurchase of outstanding shares 310044296.12 -
Consideration paid for the acquisition of minority shareholder
10380041.5456000000.00
equity
Total 3376723553.38 997281629.42
Changes in liabilities from financing activitiess
Unit: RMB
2024
Item December 31 2023 December 31 2024
Cash changes Non-cash changes
Lease liabilities (including lease
528728313.56(332488237.61)359595896.79555835972.74
liabilities due within one year)
Long-term borrowings (including
loan due within one year) and short- 16686600823.23 (10216217771.70) 267287079.54 6737670131.07
term borrowings
Dividend payables 253957413.29 (8637054517.02) 8383283896.84 186793.11
Total 17469286550.08 (19185760526.33) 9010166873.17 7293692896.92
330Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
60. Supplementary Information about Cash Flow Statement
(1) Supplementary information about cash flow statement
Unit: RMB
Supplementary information 2024 2023 (Restated)
1. Reconciliation of net profit to cash flows from
operating activities:
Net profit 13141022060.51 15155901763.21
Add: Impairment of assets 445914387.59 463382275.12
Provision for credit losses 1068789505.74 879922773.25
Fixed assets depreciation 1491731725.01 1302911665.68
Amortization of right-of-use assets 295082848.33 316765782.26
Amortization of intangible assets 99999893.62 98924636.89
Long-term deferred expenses amortization 97115766.37 84144427.77
Losses on disposal of fixed assets intangible
14539975.315674511.78
assets and other long-term assets
Fixed asset scrapping losses 322794.37 4832681.02
Losses (gains) from changes in fair value (47759102.43) (22679257.89)
Financial expenses 256441388.18 325040311.15
Investment losses (gains) (85911585.51) (63302304.25)
Share-based payment based on equity
865428572.59207616877.93
settlement
Decrease (increase) of restricted funds (8254649.98) (8697401.04)
Decrease (increase) in deferred tax assets (236371472.37) (507175433.89)
Increase (decrease) in deferred tax liabilities (17155614.66) (54853902.30)
Decrease (increase) in inventories (299985733.29) (365476343.55)
Decrease (increase) of other operating non-
(185775794.08)340718688.36
current assets
Decrease (increase) in operating receivables (4018940188.01) (6132832357.74)
Increase (decrease) in operating payables 479604764.25 4587526152.69
Increase (decrease) in deferred income (91747518.81) 3864174.60
Net cash flows from operating activities 13264092022.73 16622209721.05
2. Net changes in cash and cash equivalents:
Closing balance of cash 36053042380.29 49427967355.78
Less: Opening balance of cash 49427967355.78 39825124107.52
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net Increase (decrease) in cash and cash
(13374924975.49)9602843248.26
equivalents
(2) Net cash paid for obtaining subsidiaries during the current year
Unit: RMB
Amounts
Cash or cash equivalents paid for the business combination in previous years 8440700.00
Including: Zhejiang Zhiyuan Fire Safety Engineering Co. Ltd. 8440700.00
Net cash paid for obtaining the subsidiary 8440700.00
(3) Constituents of cash and cash equivalents
331Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Unit: RMB
Item Closing balance Opening balance (restated)
Cash 36053042380.29 49427967355.78
Including: Cash on hand 682023.34 1785754.92
Bank deposit for payment at any time 35933926817.28 49400692427.34
Other monetary capital for payment at any time 118433539.67 25489173.52
Cash equivalents - -
Closing balance of cash and cash equivalents 36053042380.29 49427967355.78
61. Monetary Items of Foreign Currencies
Unit: RMB
Balance in foreign currency at Exchange rate for Balance of RMB converted at
Item
the end of the reporting period conversion the end of the reporting period
Cash and bank balances
Including: USD 521635040.48 7.1884 3749721325.00
EUR 54445885.15 7.5257 409743397.87
Accounts receivable
Including: USD 329067851.99 7.1884 2365471347.24
EUR 162993618.06 7.5257 1226641071.43
Accounts payable
Including: USD 68397350.51 7.1884 491667514.41
EUR 878420.96 7.5257 6610732.62
62. Lease
(1) As lessee
The company leases a number of assets including houses and buildings general equipment special purpose equipment and
transport vehicles ranging from 1 month to 13 years. Such assets cannot be used for loan mortgage guarantee and other
purposes.The total amount of short-term lease expenses and lease expenses of low-value assets included in profit or loss for the period
was RMB80310605.02 (2023: RMB133767688.72).Total lease-related cash outflows for the year is RMB 412798842.63 (2023: RMB 419241781.98)
(2) As a lessor
Operating lease as a lessor
Unit: RMB
Among which: income related to variable lease payments not
Item Lease income
included in lease collections
Special-purpose equipment lease 101545490.69 -
Total 101545490.69 -
The Company's operating leases as a lessor relate to special-purpose equipment.
332Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Financial lease as a lessor
Unit: RMB
Income related to variable lease
Item Profit or loss on sales Financing proceeds payments that are not included in
net lease investments
Special-purpose equipment lease 23159788.34 5480145.59 -
Total 23159788.34 5480145.59 -
As a lessor the Group entered into financial lease contracts with customers in relation to special-purpose equipment.VI. Changes in Consolidation Scope
1. Business Combination of Enterprises under the Same Control
(1) Business combination of enterprises under the same control
Furui Technology
On April 10 2024 the Group's subsidiary EZVIZ Network signed a management entrustment agreement with the parent
company CETCHIK and thus EZVIZ Network has achieved control over Furui Technology. Since CETCHIK is the
controlling shareholder of both the Group and Furui Technology and EZVIZ Network is a subsidiary of the Group this
management entrustment of Furui Technology constitutes a business combination under common control.Unit: RMB
Equity Reason for the Income of
Net profit (loss) Income of Net profit of
Basis for
Name of acquisiti transaction acquiree from
of acquiree from acquire during acquire during
Date of determining
the constituting a business acquisition data acquisition data comparison comparison on ratio acquisition the
acquiree combination under to the end of the to the end of the period period
(note) acquisition
common control. reporting period reporting period
date
Before and after the
business combination
the controlling Effective
Hangzhou shareholder of both date of the
Furui
48% the Group and Furui April 10 2024 management - (295677.15) 1320754.72 218576.25
Technolog
y Co Ltd. Technology is entrustment
CETCHIK and this agreement.control is not
temporary.Note: The Group collectively holds 48% of the equity in EZVIZ which is the consolidated party.
(2) Cost of business combination and goodwill
Unit: RMB
Cost of business combination Furui Technology
- Long-term payables 9749569.60
(3) The book value of assets and liabilities of the acquiree on the date of purchase
Unit: RMB
Furui Technology
Fair value on the date of acquisition Fair value on the date of acquisition
Assets:
Cash and bank balances 9642829.41 8689008.08
333Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Furui Technology
Fair value on the date of acquisition Fair value on the date of acquisition
Accounts receivables - 1400000.00
Other receivables 6387.00 6387.00
Inventories 9911.50 9911.50
Fixed assets 8845.06 10024.42
Total assets 9667972.97 10115331.00
Liabilities:
Payroll payable 65107.62 216788.50
Tax payable 148972.90 148972.90
Total liabilities 214080.52 365761.40
Net assets: 9453892.45 9749569.60
2. Changes of Consolidation Scope due to Other Causes
The subsidiaries newly established and incorporated in the consolidation scope during the current reporting period
as follows:
Company Name Time of establishment Registered capital
Hangzhou Hikimaging Electronics Ltd. March 2024 RMB 10 million
Hangzhou Rayin Detection Technology Co.April 2024 RMB 50 million
Ltd.EZVIZ Vietnam LLC Co. Ltd August 2024 USD 0.8 million
Hangzhou Micro Sensing Electronics Ltd. September 2024 RMB 100 million
Guoneng Haikang Yaoshi Technology
October 2024 RMB 100 million
(Hangzhou) Co. Ltd.EZVIZ Trading FZE (Note) November 2024 USD 0.5 million
Hikrobot Japan KK (Note) December 2024 JPY 70 million
Note: As of the end of this year EZVIZ Trading FZE and Hikrobot Japan KK have not yet completed their paid-in capital.VII. Interest in Other Entities
1. Equity in Subsidiaries
(1) Composition of the corporate group
Location of Place of Acquisition
Name Nature of business
operation registration method
System integration
Hangzhou Hikvision System Technology Hangzhou
Hangzhou Technology Establishment
Ltd. Zhejiang
development
Hangzhou Hikvision Technology Co. Hangzhou
Hangzhou Manufacture Establishment
Ltd. Zhejiang
Hangzhou EZVIZ Network Co. Ltd. Hangzhou Hangzhou Technology Establishment
334Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Location of Place of Acquisition
Name Nature of business
operation registration method
Zhejiang development
Hangzhou Technology
Hangzhou EZVIZ Software Ltd. Hangzhou Establishment
Zhejiang development
Hangzhou Technology
Hangzhou Hikrobot Technology Co. Ltd. Hangzhou Establishment
Zhejiang development
Hangzhou Technology
Hangzhou Hikrobot Intelligence Ltd. Hangzhou Establishment
Zhejiang development
2. Changes in the share of owners' equity in subsidiaries and still controls the transactions of subsidiaries.
(1) Description of the change in the share of owners' equity in subsidiaries
Acquisition of minority stakes in Hua'an Security Intelligence Hua'an Security Electronics and Hua'an Security Services.On April 30 2024 the Group and the original minority shareholders of its subsidiary companies Hua'an Security Intelligent and Hua'an
Security Electronics jointly signed the "Equity Transfer Agreement for Henan Hua'an Security Intelligent Development Co. Ltd. and Henan
Hikvision Hua'an Security Electronics Co. Ltd." The agreement stipulates the acquisition of 6.14% of the minority equity in Hua'an Security
Intelligent and Hua'an Security Electronics from the original minority shareholders for RMB 5.83 million and RMB 4.42 million respectively.Upon completion of the acquisition the Group will hold 100% of the equity in both Hua'an Security Intelligent and Hua'an Security Electronics.The equity transfer was completed on May 31 2024. By the end of the year the Group had fully paid the acquisition amount.On April 30 2024 Hua'an Security Intelligence a subsidiary of the Group entered into a Share Transfer Agreement with the original minority
shareholders of Hua'an Security Services a subsidiary of Hua'an Security Intelligence. The agreement stipulates the acquisition of 10% equity
in Hua'an Security Services held by the original minority shareholders for RMB 127400. After the acquisition Hua'an Security Intelligence
will hold 100% equity in Hua'an Security Services. Since the Group holds 100% equity in Hua'an Security Intelligence the Group holds 100%
equity in Hua'an Security Services. On May 31 2024 both parties completed the equity transfer. As of the end of the year the Group has
completed the payment for the equity acquisition.Unit: RMB
Hua'an Security Hu'an Security Hua'an Security
Cost of purchase Intelligence and its Electronics and its Service and its
subsidiaries subsidiaries subsidiaries
Cash 5831820.00 4420800.00 127421.54
Total cost of purchase 5831820.00 4420800.00 127421.54
Less: net assets of subsidiaries according to the proportion of
5549503.734845770.23106212.26
equity acquired
Adjustment of the difference to capital reserve 282316.27 (424970.23) 21209.28
3. Equity in Joint Ventures or Associates
(1) Aggregated financial information of insignificant joint-ventures and associates
Unit: RMB
Closing balance / Amount for Opening balance / Amount for
20242023
Associates:
The aggregate carrying amount of investments in associates 598565831.26 287370796.06
The aggregate amount of the following items calculated based on the
Company's equity share percentage of the associates
- Net income 27475447.67 15006433.70
- Other comprehensive income - -
--Total comprehensive income 27475447.67 15006433.70
Joint Ventures:
Total investment book value 928657559.53 863734091.79
The sum of the following items calculated according to the
shareholding ratio
335Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Closing balance / Amount for Opening balance / Amount for
20242023
- Net income (loss) 3193543.20 (44972911.55)
- Other comprehensive income - -
- Total comprehensive income (loss) 3193543.20 (44972911.55)
(2) There are no significant restrictions on the ability of the joint ventures or associates to transfer funds to the Group.
(3) The Group has no nrecognized commitments relating to investments in joint ventures.
(4) The Group has no contingent liabilities related to investments in joint ventures or associates.
VIII. Government subsidy
1. Liabilities relating to government subsidy
Unit: RMB
Amount at the open Amount at the close Asset-related
Liabilities Increase in 2024 Other income 2024
of 2024 of 2024 /revenue-related
Special subsidy 741121772.61 195769448.77 122672090.78 814219130.60 Asset-related
Special subsidy 225137819.73 95972837.34 260817714.14 60292942.93 Revenue-related
Total 966259592.34 291742286.11 383489804.92 874512073.53
2. Government subsidy recognized as gain or loss in the reporting period
Unit: RMB
Subsidy item 2024 2023
VAT collected and refunded 1874624340.02 1905727477.36
Special subsidy 689500154.89 595069241.13
Total 2564124494.91 2500796718.49
IX. Risks Associated with Financial Instrument
The Company's principal financial instruments include cash and bank balances other non-current financial assets notes
receivable accounts receivable receivables for financing other receivables long-term receivables part of the other non-
current assets borrowings notes payable accounts payable other payables part of the other current liabilities long-term
payables part of other non-current liabilities derivative financial instruments etc. Details of these financial instruments
are set out in Note (V). Below are the risks associated with such financial instruments and the risk management policies
adopted by the Group to mitigate such risks. The management of the Group manages and monitors such risk exposures to
ensure such risks are contained within a prescribed scope.
336Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Unit: RMB
Item Closing balance of 2024 Closing balance of 2023 (restated)
Financial assets:
Measured at fair value through current profit and loss
Derivative financial assets 26775923.93 37380.00
Other non-current financial assets 472000082.76 472184937.66
Measured at fair value through other comprehensive
income
Receivables for financing 2291648244.05 1594219832.62
Measured at amortized cost
Cash and bank balances 36271488337.03 49638158662.54
Notes receivable 2722596142.46 2606071375.74
Accounts receivable 37910128735.42 35816573511.44
Other receivables 531344606.50 571912035.93
Other non-current assets 51370.95 2017718.89
Long-term receivables (including those due within one year) 1274780835.91 1618419624.99
Financial liabilities
Measured at fair value through current profit and loss
Derivative financial liabilities 1874341.64 38079755.04
Measured at amortized cost
Short-term borrowings 1031895812.62 2118952026.06
Notes payable 1197128746.56 1163687279.58
Accounts payable 20185303107.69 19163485888.09
Other payables 3528359044.48 3911612841.06
Other current liabilities - 1095194890.62
Long-term borrowings (including those due within one year) 5705774318.45 14567648797.17
Long-term payables (including those due within one year) 9818368.20 17938100.82
Other non-current liabilities - 1642792335.93
The Group adopts sensitivity analysis techniques to analyze the possible effects of rational and probable changes in risk
variables to profit or loss for the period or to the interests of shareholders. Since risk variables seldom change on a stand-
alone basis while the correlation between variables may have significant influence to the ultimate amount of change
effected by the change in a single risk variable the analysis below is based on the assumption that the changes in each
variable occurred separately.
1. Objectives Policies and Procedures of Risk Management and changes in the reporting period
The Group engages in risk management with the aim of achieving an appropriate balance between risk and return where
the negative effects of risks against the Group's operating results are minimized in order to maximize the benefits of
shareholders and other stakeholders. Based on such objective in risk management the underlying strategy of the Group's
risk management is to ascertain and analyze all types of risks exposures of the Group establish appropriate risk tolerance
337Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
thresholds carry out risk management procedures and perform risk monitoring on all kinds of risks in a timely and reliable
manner thus containing risk exposures within a prescribed scope.
1.1 Market risks
1.1.1 Foreign exchange risks
Foreign exchange risks refer to the risk that losses will occur because of changes in foreign exchange rates. The Company
is primarily exposed to risks relating to the currencies such as USD EUR and etc. The Group's subsidiaries in the mainland
of China whose procurement sales and financing are denominated in RMB USD and EUR. Other principal activities are
settled in RMB. The Group's subsidiaries in Hong Kong and outside China are principally engaged in procurement sales
financing and other major business activities in local currencies such as USD EUR and etc.As of December 31 2024 except for monetary items of foreign currencies set out in Note (V) 61 the Group mainly
adopted the functional currency of each of its subsidiary to present the balance of its assets and liabilities. The foreign
exchange risks arising from assets and liabilities denominated in USD and EUR (which has been converted into RMB) as
follows may generate significant impact on the operating results of the Group.Unit: RMB
Assets Liabilities
Currency
Closing balance Opening balance Closing balance Opening balance
USD 6115192672.24 3459224512.51 491667514.41 325809696.61
EUR 1636384469.30 3068403192.93 6610732.62 1908485738.15
The Group has been paying close attention to the effect of fluctuation in exchange rate on the foreign exchange risks of
the Group and has purchased various financial derivative instruments such as forward foreign exchange contracts to
mitigate the foreign exchange risk exposure.Sensitivity analysis on exchange rate risk
The sensitivity analysis of the Group's foreign exchange risk includes only monetary items denominated in foreign
currencies and does not consider the impact of the purchased derivative financial instruments.With other variables unchanged the exchange rate might float within a reasonable range and has the following before-
tax effect on profit or loss and shareholders' equity for the current period:
Unit: RMB
20242023
Change in foreign exchange rates Effect on Effect on
Effect on profit Effect on profit
shareholders' equity shareholders' equity
5% appreciation of USD against functional currency 281176257.89 281176257.89 156670740.80 156670740.80
5% depreciation of USD against functional currency (281176257.89 (281176257.89) (156670740.80) (156670740.80)
5% appreciation of EUR against functional currency 81488686.83) 81488686.83 57995872.74 57995872.74
5% depreciation of EUR against functional currency (81488686.83) (81488686.83) (57995872.74) (57995872.74)
1.1.2. Interest rate risk
The risk of changes in cash flow of financial instruments due to changes in interest rates exposed to the Group are primarily
related to bank borrowings bearing floating interest rate (please refer to Note (V) 24) and Note (V) 34) and bank deposits
338Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
bearing floating interest rate. The Group's risks of changes in the fair value of financial instruments due to changes in
interest rates are related to fixed-rate bank borrowings (please refer to Note (V) 24 and Note (V) 34) and fixed-rate bank
deposits.The Group determines the relative proportion of fixed interest rate contracts and floating interest rate contracts based on
the prevailing market environment. On December 31 2024 the Group's total long-term and short-term interest-bearing
debts bearing fixed interest rates amounted to RMB 5538078464.46 (December 31 2023: RMB 11105877902.09).The total amount of long-term and short-term interest-bearing debts bearing floating interest rates is RMB
1165181524.22 (December 31 2024: RMB5546156677.17).
At present the Group does not have any interest rate swap arrangements and will continue to pay close attention to the
impact of changes in borrowing interest rates on the interest rate risk of the Group and will make timely adjustments
according to the latest market conditions.The Group expects that the exposure to cash flow risk arising from floating-rate bank deposits and the exposure to changes
in fair value arising from fixed-rate bank deposits are not significant.
1.1.3. Other price risks
The Group's price risk mainly arises from investments in held-for-trading equity instruments and derivative financial
instruments. Held-for-trading equity instrument investments are all investments in unlisted held-for-trading equity
instruments.The Group is exposed to price risk due to the holding of financial assets measured at fair value. The fair value of certain
financial instruments is determined by the general pricing model based on discounted future cash flow method or other
valuation techniques while the valuation techniques are based on certain valuation assumptions. Therefore the valuation
results are highly sensitive to valuation assumptions. However at the end of the current reporting period the amount of
investment in held-for-trading equity instruments and derivative financial instruments is not significant and the changes
of the amount due to changes in price of financial instruments as a result of change in valuation assumptions is limited
accordingly no sensitivity analysis is conducted.
1.2 Credit Risk
As of December 31 2024 the largest credit risk exposure that may result in financial losses of the Group is mainly due to
the loss of the Group's financial assets arising from the failure of the counterparty to perform its obligations including:
cash and bank balances (Note (V) 1) notes receivable (Note (V) 3) accounts receivable (Note (V) 4) receivables for
financing (Note (V) 6) other receivables (Note (V) 8) contract assets (Note (V) 5 and Note (V) 22) non-current assets
due within one year (Note (V) 10) long-term receivables (Note (V) 12) etc. and derivative financial assets that are not
included in the scope of impairment assessment and are measured at fair value through current profit or loss (Note (V) 2).As of the balance sheet date the book value of the Group's financial assets represents its maximum credit risk exposure.In order to reduce credit risk the Group has arranged a team to determine the credit limit conduct credit approval and
implement other monitoring procedures to ensure that necessary measures are taken to recover over-due debt. In addition
the Group reviews the recovery of financial assets on each balance sheet date to ensure that sufficient credit loss provisions
are made for relevant financial assets. Therefore the management of the Group believes that the credit risk exposure of
the Group has been reduced significantly.The credit risk on cash and bank balances of the Group is low as they are deposited with banks with high credit ratings.For accounts receivable contract assets and long-term receivables the Group has put in place relevant policies to control
credit risk exposure. The Group assesses credit quality of customers and sets corresponding credit period based on the
customer's financial status the possibility of obtaining guarantees from third parties credit history and other factors such
as current market conditions. The Group will regularly monitor the credit history of its customers. For customers with
poor credit history the Group takes various measures such as written payment reminders shorten or cancel the credit
period to ensure that the overall credit risk of the Group is maintained in a controllable range. For accounts receivable
339Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
and contract assets the Group uses a simplified method that is to measure the loss provision based on the amount
equivalent to the expected credit loss for the entire duration. For details of the relevant expected credit loss measurement
see (Note (V) 4 & Note (V) 5). For long-term receivables the Group calculates the expected credit losses based on the
expected credit loss rate in the next 12 months or the entire duration based on the default risk exposure. For details of the
related expected credit loss measurement see (Note (V) 12).For bank acceptance bills and certificates of accounts receivable claims the Company believes that there is no significant
credit risk and will not incur any significant losses. For financial company acceptance bills and commercial acceptance
bills the Company has set relevant policies to control credit risk exposure. The Company evaluates the credit status of the
acceptor based on its financial position credit history and other factors such as current market conditions and sets an
internal credit rating for the acceptor. The Company regularly monitors the credit records of the acceptors and for the
acceptors with bad credit records the Company adopts written reminders and other means to ensure that the overall credit
risk is within a controllable range. For the acceptance bills and commercial acceptance bills receivable from financial
companies the Group calculates the expected credit loss based on the default risk exposure based on the expected credit
loss ratio in the entire duration and the relevant expected credit loss measurement is detailed in (Note (V) 3).For other receivables the Group regularly monitors the debtor's credit history. For debtors with poor credit history the
Group takes various measures such as written payment reminders to ensure that the Group's overall credit risk is
maintained in a controllable range. For other receivables the Group calculates the expected credit loss based on the
expected credit loss ratio in the next 12 months or the entire duration based on the default risk exposure. For details of the
relevant expected credit loss measurement see (Note (V) 8).The Group's risk exposure is distributed among multiple contractors and multiple customers so the Group has no
significant credit concentration risk.
1.3. Liquidity risk
The Group maintains and monitors a level of cash and cash equivalents deemed adequate by the management to meet the
operation needs of the Group and to reduce the effect of cash flow movements when managing liquidity risk. The
management of the Group monitors the usage of bank borrowings and ensures compliance with borrowing agreements.According to the term to maturity of non-discounted and remaining contract obligations the financial liabilities held by
the Group are analyzed as below:
Unit: RMB
December 31 2024
Within one year 1-5 years More than 5 years Total
Non-derivative financial liabilities
Short-term borrowings 1047801022.97 - - 1047801022.97
Notes payable 1197128746.56 - - 1197128746.56
Accounts payable 20185303107.69 - - 20185303107.69
Other payables 3528359044.48 - - 3528359044.48
Long-term borrowings (including
732114066.414820841448.18518433071.376071388585.96
those due within one year)
Long-term payables (including
40025.6031436.70-71462.30
those due within one year)
Derivative financial liabilities 1874341.64 - - 1874341.64
340Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
X. Fair Value Disclosure
1. The Financial Assets and Financial Liabilities Measured at Fair Value at the end of the Reporting Period
Unit: RMB
Closing fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value measurement - 2316549826.34 472000082.76 2788549909.10
(I) Derivative financial assets - 26775923.93 - 26775923.93
1. Financial assets measured at fair
-26775923.93-26775923.93
value through profit and loss
(II) Other non-current financial assets - - 472000082.76 472000082.76
1. Financial assets at fair value
-472000082.76472000082.76
through profit or loss
(III) Receivables for financing 2291648244.05 - 2291648244.05
1. Financial assets at fair value
through other comprehensive - 2291648244.05 - 2291648244.05
income
Total assets measured continuously at
-2318424167.98472000082.762790424250.74
fair value
(IV) Derivative financial liabilities - 1874341.64 - 1874341.64
1. Financial liabilities measured at
1874341.64-1874341.64
fair value through profit and loss
Total liabilities measured
-1874341.64-1874341.64
continuously at fair value
2. Information on the Estimation Technique and Important Parameters Adopted as for Continuous Level 2 Fair
Value Measurement Items
Unit: RMB
Fair value at
Estimation technique Inputs December 31 2024
Forward exchange rate
Discounted cash flow
Derivative financial assets 26775923.93 Discounted rate that reflects the credit risk
approach
of counterparty
Forward exchange rate
Discounted cash flow
Derivative financial liabilities 1874341.64 Discounted rate that reflects the credit risk
approach
of counterparty
Discounted cash flow Discounted rate that reflects the credit risk
Receivables for financing 2291648244.05
approach of counterparty
3. The Third Level of Fair Value Measurement Item the Valuation Techniques and Important Parameters Used
Unit: RMB
Fair value on
Items Valuation techniques Inputs
December 31 2024
Comparable public companies' PB
Other non-current financial assets--
Market approach (price/book value) ratio within the same
Investment in equity instruments of 472000082.76
/Income approach industry companies
/Future cash flows Discount rate
4. The Third Level of Fair Value Measurement Item Adjustment Information between the Opening and Closing
Book Value
Unit: RMB
Other non-current financial assets Amount
Book value on January 1 2024 472184937.66
Increase in the current reporting period 15000000.00
Changes in fair value booked into profit and loss during the current reporting period (15184854.90)
Book value on December 31 2024 472000082.76
341Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
The total amount of profit or loss in 2024 includes unrealized losses related to financial assets measured at fair value at
the end of the year is RMB 15184854.90(2023 unrealized losses: RMB5229385.72) and such gains or losses are
included in changes in fair value; the realized gains of financial assets measured at fair value at the end of the current
reporting period which were included in investment income was RMB61241171.99 (2023: RMB65923840.33).
5. Items Measured at Continuous Fair Value. There Were No Transfers between Levels for the Current
Reporting Period. There was No Estimation Technique Change for the Current Reporting Period
6. Fair Values of Financial Assets and Financial Liabilities that not Measured at Fair Value
The Group's management team believes that financial assets and financial liabilities measured at amortized cost mainly
include cash and bank balances notes receivable accounts receivable other receivables some other non-current assets
non-current assets due within one year long-term receivables short-term borrowings notes payable accounts payable
other payables part of other current liabilities non-current liabilities due within one year long-term borrowings long-
term payables and part of other non-current liabilities etc. carrying value of which approximates to its fair value.XI. Related Party Relationships and Transactions
1. Information on Parent Company of the Company
Percentage of
Shareholding ratio
Name of parent voting rights of
Place of registration Nature of business Registered capital of parent company
company parent company to
in the Company (%)
the Company (%)
China Electronics
Technology HIK Industrial
Hangzhou Zhejiang RMB 845 million 36.93 36.93
Group Ltd. investment
(CETHIK)
The actual controlling party of the Company is CETC.
2. Information on the Subsidiaries of the Company
For details of the main subsidiaries of the Company see Note ((VII)1).
3. Information on the Joint Ventures and Associated Companies of the Company
Joint ventures and associates that had related party transactions with the Group in the current reporting period or in the
prior periods and formed balances are as follows:
Name of the associates or joint ventures Relationship with the Company
Wuhu Sensortech and Hebei Sensortech (Note1) Associated company
Maxio Technology (Hangzhou) Co. Ltd. and its subsidiaries (Note2) Associated company
Zhiguang Hailian Big Data Technology Ltd. and its subsidiaries (Note2) Associated company
Jiaxin Haishi JiaAn Zhicheng Technology Ltd. (Note2) Associated company
Sanmenxia Xiaoyun Vision Technology Ltd. (Note2) Associated company
Beijing Taifang Technology Ltd. (Note2) Associated company
Jiangsu Haishi Kaitai Technology Co. Ltd. (Note2) Associated company
Guangxi Haishi Urban Operation Management Ltd. and its subsidiaries
Joint venture
(Note3)
Shenzhen Haishi Urban Service Operation Ltd. and its subsidiaries (Note3) Joint venture
Xuzhou Kangbo Urban Operation Management Service Ltd. (Note3) Joint venture
Yunnan Yinghai Parking Service Ltd. (Note3) Joint venture
342Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Zhejiang City Digital Technology Ltd. (Note3) Joint venture
Zhejiang Haishi Huayue Digital Technology Ltd. (Note3) Joint venture
Note 1: During the period from December 2016 to February 2023 Wuhu Sensortech and Hebei Sensortech were associates
of the Company. On February 28 2023 Wuhu Sensortech and Hebei Sensortech were included in the scope of the
consolidated financial statements. During the period from January 2023 to February 2023 these two companies were still
regarded as the Company's related parties.Note 2: Those companies are collectively referred to as "associated companies" in the following disclosures of related
party transactions receivables from related parties and payable from related parties.Note 3: Those companies are collectively referred to as "joint ventures" in the following disclosures of related party
transactions receivables from related parties and payable from related parties.
4. Information on Other Related Parties
Name (Note1) Relationship
The related close family members of shareholder(s) that
Shanghai Fullhan Microelectronics Co. Ltd. and its subsidiaries hold(s) more than 5% shares of the Company act in
concert with the actual controller of the Company
The related close family members of shareholder(s) that
Guandong Hutong Technology Co. Ltd. hold(s) more than 5% shares of the Company act as a
director from board of this company.Shareholder(s) that hold(s) more than 5% shares of the
Shenzhen Guotengan Vocational Education Technology Ltd.Company serve(s) as the director(s) of this company
The Group's senior management serve(s) as director(s) of
Confirmware Technology (Hangzhou) Co. Ltd. and its subsidiaries
this company
Zhejiang Fast Line data fusion Information Technology Co. Ltd. and its The Group's senior management serve(s) as director(s) of
subsidiaries this company
The Group's senior management serve(s) as director(s) of
Chengdu Guoshengtianfeng Network Technology Ltd. and its subsidiaries
this company
The Group's senior management serve(s) as director(s) of
Shenzhen Wanyu Security Service Co. Ltd. and its subsidiaries
this company
The Group's independent director(s) serve(s) as
Ningbo Industrial Internet Research Institute Co. Ltd.director(s) of this company
The Group's chairman(chairmen) of Board of the
INESA (Group) Ltd. and its subsidiaries
Supervisors serve(s) as director(s) of this company
The Group's chairman(chairmen) of Board of the
Shanghai Vico Precision Mold & Plastics Co.Ltd. (Note2) Supervisors was(were) independent director(s) of this
company
The Group's chairman(chairmen) of Board of the
Bank of Tianjin Co. Ltd. and its subsidiaries Supervisors serve(s) as independent director(s) of this
company
The Group's former chairman(chairmen) of Board of the
Shenzhen Zhongtu Instrument Co. Ltd. (Note3)
Supervisors was(were) the director(s) of this company
Under common control of the actual controlling party of
Subsidiaries of CETC (Note 4)
the Company
Note 1: Those companies (excluding subsidiaries of CETC) are collectively referred to as "other related parties" in the
following disclosures of related party transactions receivables from related parties and payable from related parties.Note 2: Lu Jianzhong the chairman of Board of the Supervisors of our Group once served as an independent director of
the corresponding company. As he departed from his position as a director of the corresponding company in June 2024
and this year marks his first year of departure. Therefore this company is considered a related party to our Group for this
year.Note 3: Hong Tianfeng the former chairman of Board of the Supervisors of the Company once served as a director of the
corresponding company. As he departed from his position as a director of the corresponding company in April 2022 the
corresponding company was recognized as a related party of the Company between January 2023 and April 2023.Note 4: Subsidiaries and affiliated research institutes of CETC excluding Hikvision and its subsidiaries.
343Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
5. Related Party Transactions
(1) Related party transactions regarding sales and purchases of goods provision of services and receiving services
Purchase of commodities / receiving of services:
Unit: RMB
Related party Transaction type 2024 2023
Purchase of materials and
Subsidiaries of CETC 1897826757.19 2411065827.96
receiving of services
Purchase of materials and
Joint ventures 7651968.58 2839703.41
receiving of services
Purchase of materials and
Associated companies 281612997.63 271039815.54
receiving of services
Purchase of materials and
Other related parties 1189645482.17 1286613375.22
receiving of services
Total 3376737205.57 3971558722.13
Sales of commodities / rendering of services:
Unit: RMB
Related party Transaction content 2024 2023
Sales of products and
Subsidiaries of CETC 219280317.07 269454480.67
rendering of services
Sales of products and
Joint ventures 34879502.21 69056009.44
rendering of services
Sales of products and
Associated companies 34474131.86 66706135.61
rendering of services
Sales of products and
Other related parties 22004352.43 24122066.41
rendering of services
Total 310638303.57 429338692.13
Fixed Asset Purchase and Sales:
Unit: RMB
Related party Transaction content 2024 2023
Subsidiaries of CETC Purchase of fixed assets 1317219.10 -
Total 1317219.10 -
(2) Related party lease
Unit: RMB
Lessor Type of leased assets Rental fee confirmed in 2024 Rental fee confirmed in 2023
Subsidiaries of CETC Equipment - 10375908.82
Subsidiaries of CETC House 1670579.23 2324068.08
Total 1670579.23 12699976.90
(3) Compensation for key managers
Unit: RMB
Item 2024 2023
Compensation for key managers 31903090.50 42555350.07
(4) Other related party transactions
Statement of capital deposits:
Unit: RMB
Content of related Amount occurred in Balance at the end of the Amount occurred in Opening balance
Related party
party transaction 2024 current reporting period 2023 (restated) (restated)
Deposit (withdraw
Subsidiaries of CETC (13463687.38) 4000183725.74 5482952.03 4013647413.12
from)
344Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Content of related Amount occurred in Balance at the end of the Amount occurred in Opening balance
Related party
party transaction 2024 current reporting period 2023 (restated) (restated)
Total (13463687.38) 4000183725.74 5482952.03 4013647413.12
Note: This represents the deposits made by the Group with China Electronics Technology Finance Co. Ltd. The balance of
time deposits at the end of this year is RMB4000000000.00 (end of last year: RMB1000000000.00) and the balance of
demand deposits is RMB 183725.74 (end of last year: RMB3013647413.12). The interest income from deposits for this year
is RMB 47756631.71. (last year: RMB81945762.01)
Information on entrusted loans:
In 2024 the Company issued entrusted loans to its subsidiaries through China Electronics Technology Finance Co. Ltd.in the amount of RMB4156000000.00 (last year: RMB2523000000.00) and the amount of handling fees confirmed to
China Electronics Technology Finance Co. Ltd. was RMB415600.00 (last year: RMB277300.00).Information on Working Capital Borrowing:
In 2024 Hikvision Automotive Technology Co. Ltd. a subsidiary of the Group borrowed RMB150000000.00 in
working capital from China Electronics Technology Finance Co. Ltd.(last year: nil). The interest expense recognized for
China Electronics Technology Finance Co. Ltd. was RMB 128333.33 (last year: nil).Information on Related Entrusted Management
On April 10 2024 EZVIS Network a subsidiary of the Group signed a agreement with the parent company CETCHIK
for the entrustment management of Furui Technology. This transaction constituted a business combination under common
control see Note (VI) 1. Therefore according to the agreement EZVIS Network would pay management fee to CETCHIK.During the reporting year the capital occupation fee of this transaction amounted to RMB 380731.68.Others:
During the reporting year the Group received an international business subsidy of RMB 2007056.47 from the actual
controlling party CETC.
6. Receivables from Related Parties and Payables to Related Parties
(1) Receivables from related parties
Unit: RMB
Closing balance Opening balance
Item Related party
Carrying balance Credit loss provision Carrying balance Credit loss provision
Note receivables and 52626277.73 374735.27 176267380.85 1197255.34
Subsidiaries of
account receivables
CETC
financing
Note receivables and 13352890.19 - 400000.00 -
account receivables Joint ventures
financing
Note receivables and 4392879.50 - 22277196.50 -
Associated
account receivables
companies
financing
Note receivables and 1908892.17 - 1215030.00 -
Other related
account receivables
parties
financing
Total 72280939.59 374735.27 200159607.35 1197255.34
Unit: RMB
Closing balance Opening balance
Item Related Party
Carrying balance Credit loss provision Carrying balance Credit loss provision
Subsidiaries of
Account receivables 486103594.64 150460535.70 640493055.77 220124781.15
CETC
Account receivables Joint ventures 26582054.99 2439410.80 59425217.10 1625142.58
Associated
Account receivables 67058711.03 10008346.67 72319683.18 8556237.95
companies
345Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Other related
Account receivables 5254943.87 209669.50 7442685.65 154865.50
parties
Total 584999304.53 163117962.67 779680641.70 230461027.18
Unit: RMB
Item Related party Closing balance Opening balance
Prepayments Subsidiaries of CETC 1357188.83 7831067.74
Prepayments Associated companies 667500.73 118402.50
Total 2024689.56 7949470.24
Unit: RMB
Closing balance Opening balance
Item Related party
Carrying balance Credit loss provision Carrying balance Credit loss provision
Other Subsidiaries of
675015.40503901.991649910.00561932.90
receivables CETC
Other
Joint ventures 45506.53 373.15 191713.33 6768.82
receivables
Other Associated
--4387500.0030273.75
receivables companies
Total 720521.93 504275.14 6229123.33 598975.47
Unit: RMB
Closing balance Opening balance
Item Related party
Carrying balance Credit loss provision Carrying balance Credit loss provision
Long-term
receivables Subsidiaries of CETC 119906.12 983.23 47210.22 325.75
(including those due
within one year)
Long-term
receivables
Joint ventures 27457234.23 1153621.48 35381700.20 1144327.88
(including those due
within one year)
Total 27577140.35 1154604.71 35428910.42 1144653.63
(2) Payables to related parties
Unit: RMB
Item Related party Closing balance Opening balance
Short-term borrowings Subsidiaries of CETC 150128333.33 -
Total 150128333.33 -
Unit: RMB
Item Related party Closing balance Opening balance
Notes payables Subsidiaries of CETC 5438628.32 1224954.15
Notes payables Other related parties 1570383.71 4390639.49
Total 7009012.03 5615593.64
Unit: RMB
Item Related party Closing balance Opening balance
Account payables Subsidiaries of CETC 593917797.74 877667364.69
Account payables Joint ventures 1224799.99 4068366.04
Account payables Associated companies 114410719.92 43869241.50
Account payables Other related parties 442181100.83 410242953.80
346Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Item Related party Closing balance Opening balance
Total 1151734418.48 1335847926.03
Unit: RMB
Item Related party Closing balance Opening balance
Contract liabilities Subsidiaries of CETC 4070684.79 6277318.83
Contract liabilities Joint ventures 293305.79 1300172.80
Contract liabilities Associated companies 601534.30 -
Contract liabilities Other related parties 13583.70 30042.00
Total 4979108.58 7607533.63
Unit: RMB
Item Related party Closing balance Opening balance
Other payables Subsidiaries of CETC 6619267.43 8230611.43
Other payables Joint ventures 59892.75 -
Other payables Associated companies 696315.00 20527386.00
Other payables Other related parties 413000.00 250000.00
Total 7788475.18 29007997.43
Unit: RMB
Item Related party Closing balance Opening balance
Lease liabilities (including those -
Subsidiaries of CETC 5215883.84
due within one year)
Total - 5215883.84
Unit: RMB
Opening balance
Item Related Party Closing balance
(restated)
Long-term payables Subsidiaries of CETC 9749569.60 9749569.60
Total 9749569.60 9749569.60
XII. Share-based Payments
1. Overview of Share-based Payments
Restrictive Share Incentive Scheme
According to the Approval of the Implementation of the Restrictive Share Incentive Scheme of Hangzhou Hikvision Digital
Technology Co. Ltd. (Guo Zi Fen Pei [2012] No. 426) issued by the State-owned Assets Supervision and Administration
Commission of the State Council and the Opinion the Restrictive Share Incentive Scheme of Hangzhou Hikvision Digital
Technology Co. Ltd. (Shang Shi Bu Han [2012] No. 353) issued by China Securities Regulatory Commission the
Company convened the ninth meeting of the second session of the Board of Directors on July 25 2012 and the first
extraordinary general meeting for 2012 on August 13 2012 whereat the Proposal Relating to the Restrictive Share Scheme
(Amendments to the Draft) of the Company and Highlights was reviewed and passed. The purpose of the Share Incentive
Scheme is to: further improve the Company's governance structure to establish a good and balanced value allocation
system; establish a profit-sharing and restriction mechanism among shareholders the Company and its employees so as
to provide shareholders with sustainable return; fully mobilize the positivity of core employees to support the Company
in realizing its strategies and long-term sustainable development; attract and retain core employees to ensure the
Company's long-term development.The Scheme shall be effective for a term of 10 years commencing from the date of approval by general meeting of the
Company during which the Company may grant restricted shares to grantees under the Scheme. In principle each grant
347Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
should be at an interval of two years. After the expiry of the Scheme no restricted shares could be granted to grantees
under the Scheme. However all the provisions of the Scheme remain valid to the restricted shares granted under the
Scheme.Each batch of restricted shares shall not be unlocked unless fulfilling each time by the Company its unlock performance
criteria (including net asset yield revenue growth rate and economic value added) and by grantees' individual
performance criteria simultaneously. Where during the unlocking period any one or more unlock criteria for the Company
or individuals is or are not fulfilled such portion of subject shares shall be cancelled. The cancelled restricted shares will
be repurchased by the Company based on the relevant regulations under the scheme.On January 18 2022 authorized by the 1st extraordinary general meeting of 2022 and reviewed by the Board of Directors
the Company granted 97402605 restricted shares to grantees at a grant price of RMB29.71 per share ("2021 Share
Incentive Scheme"). The Lock-up Period of the Subject Shares shall last for a period of 24 months commencing on the
grant date during which the Subject Shares granted to grantees under the scheme shall be subject to lock-up and are not
transferable. The Unlocking Period shall be the 24 to 60 months following the grant of restricted shares (including Lock-
up Period) during which grantees may subject to unlocking conditions stipulated by the scheme being satisfied apply for
unlocking in 3 tranches: the first unlocking period shall be the 24 to 36 months following the grant date and the number
of shares to be unlocked shall be 40% of the aggregate number of the Subject Shares granted; the second unlocking period
shall be the 36 to 48 months following the grant date and the number of shares to be unlocked shall be 30% of the aggregate
number of the Subject Shares granted; the third unlocking period shall be the 48 to 60 months following the grant date and
the number of shares to be unlocked shall be 30% of the aggregate number of the Subject Shares granted. The Company
has completed the equity registration work in February 2022.Unit: share
2021 Share Incentive Scheme 2024 2023
Total of equity instruments outstanding at the beginning of the
5844156397402605
reporting period
Total of equity instruments granted (share dividend) during the current
--
reporting period
Total of equity instruments vested during the current reporting period - -
Total of equity instruments forfeited during the current reporting
5844156338961042
period (Note)
Total of equity instruments outstanding at the end of the reporting
-58441563
period
The exercise price (ex-rights) of the outstanding Share-based payments
of the Company at the end of the reporting period and the remaining Inapplicable 29.71/share and 36 months
period of the contract
Note: The termination of share-based payments for the year is detailed in Note (XII) 4.Share Incentive Scheme of Staff Co-Investment in Innovative Businesses
On October 22 2015 the Company considered and approved Management Measures for Core Staff Co-Investment in
Innovative Businesses (Draft) (hereafter referred to as "Management Measures") at the 2nd extraordinary general meeting.On March 7 2016 representative congress of labor union of Hikvision passed Implementation Provisions for Management
Measures for Core Staff Investment in Innovative Businesses (hereafter referred to as "Provisions") to initiate and
implement the incentive mechanism of staff co-investment (hereafter referred to as "Staff Co-Investment Plan") in
innovative business subsidiaries. Staff who participate in the Staff Co-Investment Plan (hereafter referred to as "Co-
Investment Staff") signed an Entrusted Investment Agreement with the labor union committee of Hikvision (hereafter
referred to as "Hikvision Labor Union") to entrust Hikvision Labor Union to make investments. Hikvision Labor Union
as a principal shall cooperate with a trust company which shall be a limited partner (LP) of a partnership enterprise to
establish a trust plan and to invest trust funds into innovative business subsidiaries. (Investment form described above is
referred to as "Co-Investment Platform").Staff Investment Plan is classified as plan A and plan B according to applicable grantees. Grantees of plan A are comprised
of medium-and-senior level management personnel and core competent staff from the Company and its subsidiaries are
able to invest in all innovative businesses. Grantees of plan B are comprised of core and full-time staff from innovative
business subsidiaries and could participate in investment on innovative business subsidiaries and their subsidiaries where
they serve. The Co-Investment Platform will increase capitals annually the corresponding increased equity of which will
be distributed to core staff who meets investment conditions pursuant to particular rules. The waiting period shall be five
348Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
years after equity of Co-Investment Platform is held by the staff. Within the waiting period if the labor relationship
between the grantees and the Company or its subsidiaries is released or terminated equity of Co-Investment Platform held
by the grantees shall be refunded and settled by the labor union at an agreed price pursuant to the Provisions.The Co-Investment Platform grants Co-Investment Staff additional equity annually. The Company determines whether
share-based payment shall be constituted based on the fair value of equity instruments newly obtained by the Group's staff
in Co-Investment Platform on each granting date. On December 25 2020 the Company held the 20th meetings of 4th
session of the Board of Directors which reviewed and approved the Proposal on Revising Management Measures for Core
Staff Co-Investment in Innovative Businesses. The updated version of Management Measures for Core Staff Co-Investment
in Innovative Businesses (hereinafter referred to as "updated version of Management Measures") The new version adds
rules relating to the confirmation of shares held directly by employees under Staff Co-Investment Plan and equities of
innovative business subsidiaries held indirectly by employees clarifies the treatment of shares under Co-Investment Plan
after the disqualification about co-investment of employees adds rules of management committee.On December 31 2020 the Executive management committee of the Co-Investment Plan approved the Provisions for
Management Measures for Core Staff Investment in Innovative Businesses (hereafter referred to as "New Provisions". In
accordance of the New Provisions for the confirmed Plan A shares the waiting period is five years since the employee
has worked for the Company or its subsidiaries and for the confirmed share of Plan B the waiting period is five years
since the employee has worked for the innovative business subsidiary corresponding to the Plan B or its subsidiaries.
2. Information of the Share-based Payment through Equity Settlements
Restrictive Share Incentive Scheme
Unit: RMB
2021 Share Incentive Scheme
Determined based on stock price at the grant date and the
Method of determine the fair value of equity instruments at the grant date
costs of restricted shares during Lock-up Period
Recognition basis of the number of the equity instruments qualified for Determined based on the results estimation of each
vesting vesting period and turnover rate
Reasons of the significant difference between the estimates of the current
None
reporting period with that of the prior year
Accumulative amount of share-based payment through equity settlement and 1111285178.76
further included in the capital reserve
Total amount of the expenses recognized according to share-based payment 542914217.71
through equity settlement in the current reporting period
Share Incentive Scheme of Staff Co-Investment in Innovative Businesses
Unit: RMB
Share Incentive Scheme of Staff Co-Investment in
Innovative Businesses
Evaluated and determined based on income method at the
Method of determining the fair value of equity instruments at the grant date
grant date
Recognition basis of the number of the equity instruments qualified for Estimated based on the turnover rate of each vesting period
vesting
Accumulative amount of share-based payment through equity settlement and
951891607.26
further included in the capital reserve
Total amount of the expenses recognized according to share-based payment
322514354.88
through equity settlement in the current reporting period
RMB83074508.22 of the total expenses of paid and confirmed by equity settlements was shared by minority shareholders.
3. There is no share-based payment through cash settlements
4. Information on modification or termination of share-based payment during the current reporting period
Restrictive Share Incentive Scheme
Given the current operating environment which has changed significantly since the 2021 Restricted Stock Plan was
349Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
formulated continuing to implement this plan to achieve the expected incentive objectives and effects has become more
challenging. On April 18 2024 the Company convened the 20th meeting of the 5th Board of Directors and the 18th meeting
of the 5th Board of Supervisors and on May 10 2024 the 2023 Annual General Meeting was held. These meetings
reviewed and approved the Proposal on the Termination of the 2021 Restricted Stock Plan and Repurchase and
Cancellation of Related Restricted Stocks. The Company agreed to terminate the 2021 Restricted Stock Plan and
repurchase and cancel all restricted stocks that have been granted but not yet unlocked under the 2021 Restricted Stock
Plan. The cancellation registration was completed on August 15 2024. According to the relevant provisions of the
Enterprise Accounting Standards the company has processed the accelerated exercise of this termination of the restricted
stock plan and recognized a share-based payment expense of RMB 471167293.91.XIII. Commitments and Contingencies
1. Significant Commitments
(1) Capital commitments
Unit: RMB'000
Closing balance Opening balance
Contracted but not yet recognized in financial statements
- Commitment on construction of long-term assets 4782225 12527408
- Commitment on external investments 2440 12940
Total 4784665 12540348
2. Contingencies
There are no material contingencies that need to be disclosed by the Group.XIV. Events after the Balance Sheet Date
1. Significant Unadjusted Events
As of April 17 2025 the company has no material post-balance sheet events to disclose.
2. Profit Distribution
Pursuant to the proposal of the 5th meeting of the 6th session of the Board of Directors on April 17 2025 the Company
proposed to distribute cash dividend of RMB7.00 (tax inclusive) per each 10 shares to all shareholders. The above dividend
distribution plan is still subject to the approval of the general meeting of shareholders.XV. Other Significant Events
1. Segment Information
1.1 Report segment determining and accounting policy
According to the Group's internal organization structure management requirements and internal report principles the
Group has only one operating segment which is the research and development production and sales of AIoT products and
services.External revenue by geographical area & non-current assets by geographical location
Unit: RMB
350Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Item 2024 2023 (Restated)
External revenue generated in domestic area 60601005007.24 60373572006.00
External revenue generated in overseas area 31894520111.06 28967605604.40
Total 92495525118.30 89341177610.40
Unit: RMB
Item (Note) On December 31 2024 On January 1 2024 (restated)
Non-current assets in domestic area 24071063742.13 20706538602.69
Non-current assets in overseas area 878754968.19 850027281.25
Total 24949818710.32 21556565883.94
Note: the non-current assets above did not include other non-current financial assets long-term receivables long-term
equity investment and deferred tax assets.
351Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
XVI. Notes to Major Items of Financial Statements of the Parent Company
1. Accounts Receivable
(1) Disclosure by aging
Unit: RMB
Book balance on December 31 2024 Book balance on January 1 2024
Within credit period 2290185031.06 9090405506.46
Within 1 year after exceeding credit period 22956416334.33 9384300440.80
1-2 years after exceeding credit period 445308144.39 508157816.90
2-3 years after exceeding credit period 276803705.22 311172302.13
3-4 years after exceeding credit period 220698222.82 177209156.93
Over 4 years after exceeding credit period 304329300.13 215593619.38
Subtotal 26493740737.95 19686838842.60
Less: bad debts provisions 760119868.00 670061176.83
Book value 25733620869.95 19016777665.77
(2) Classification and disclosure of by bad debts provision methods
Unit: RMB
Closing balance Opening balance
Carrying balance Credit loss provision Book value Carrying balance Credit loss provision Book value
Category
Percentage Percentage Percentage Percentage
Amount Amount Amount Amount Amount Amount
(%)(%)(%)(%)
Provision
for bad - - - - - - - - - -
debts on a
3 52Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Closing balance Opening balance
Carrying balance Credit loss provision Book value Carrying balance Credit loss provision Book value
Category
Percentage Percentage Percentage Percentage
Amount Amount Amount Amount Amount Amount
(%)(%)(%)(%)
single basis
Provision
for bad 26493740737.9 760119868.0 25733620869.9
100.002.8719686838842.60100.00670061176.833.4019016777665.77
debts by 5 0 5
portfolios
26493740737.9760119868.025733620869.919686838842.619016777665.7
Total 100.00 2.87 100.00 670061176.83 3.40
50507
Accounts receivable provision for bad debts by portfolios
Unit: RMB
Closing balance
Customer
Carrying balance Bad debts provision Proportion (%)
Subsidiaries in the Group 22467680384.77 - -
Portfolio A 627695.51 285820.56 45.53
Portfolio B 4025308111.44 759709501.21 18.87
Portfolio C 124546.23 124546.23 100.00
2.87
Total 26493740737.95 760119868.00
Description of accounts receivable for bad debts provision by portfolios
As part of the Company's credit risk management the Company's accounts receivable are divided into portfolio A portfolio B and portfolio C according to the regional
and object risk characteristics of the business and the impairment matrix is used to determine the expected credit loss of each portfolio based on the aging of accounts
receivable over credit period. For the accounts receivable generated by the Group's subsidiaries because the payment time is arranged by the Group according to the
353Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
cash flow of the companies in the Group the Company believes that the credit risk is low and no provision for bad debts is required. The aging information can reflect
the solvency of these three types of customers when the accounts receivable are due.
(3) Bad debts provision
Unit: RMB
Changes in the year Translation differences
Amount at the opening Amount at the closing
Item Provision /Recollect or for foreign currency
balance Accrual Transfer or write-off balance
Reverse statements
Account receivables 670061176.83 112125417.00 - 22066725.83 - 760119868.00
Total 670061176.83 112125417.00 - 22066725.83 - 760119868.00
(4) Top five debtors based on corresponding closing balance of accounts receivable and contract assets (including the part included in other non-current assets)
At the end of the year the aggregate amount of the Company's top five accounts receivable and contract assets was RMB22424089493.28 (including account
receivables of RMB 22423905493.31 and contract assets of RMB183999.97) accounting for 84.47% of the total balance of accounts receivable and contract assets
at the end of the year and the provision for bad debts amounted to RMB62873002.90.
2. Other Receivables
2.1 By ccategories
Unit: RMB
Category Closing balance Opening balance
Dividend receivables - 41423446.39
Other receivables 4405567174.71 3019822728.35
Total 4405567174.71 3061246174.74
354Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
2.2 Dividend receivables
Unit: RMB
Investees Closing balance Opening balance
Subsidiaries of Hikvision - 41423446.39
Total - 41423446.39
2.3 Other receivables
(1) Other receivables by aging
Unit: RMB
Aging Closing balance Opening balance
Within contract period 4373247408.09 2989035526.46
Within 1 year 24122882.75 24581596.42
1-2 years 7395888.61 8955049.99
2-3 years 6172540.83 1282544.62
3-4 years 1215236.36 120699.57
Over 4 years 754319.10 961843.47
Subtotal 4412908275.74 3024937260.53
Less: bad debts provision 7341101.03 5114532.18
Book value 4405567174.71 3019822728.35
(2) Other receivables by nature of the payment
3 55Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Unit: RMB
Nature Closing balance Opening balance
Payments of subsidiaries within the Group 4305122194.83 2761272567.36
Guarantee deposit 59508337.34 54134994.62
Temporary payments for receivables 38710852.68 24622620.38
Restricted stock repurchase payments - 169968816.44
Others 9566890.89 14938261.73
Total 4412908275.74 3024937260.53
(3) Provision for bad debts of other receivables
Unit: RMB
Changes in the year Translation differences
Amount at the opening Amount at the closing
Item Provision/ Recollect for foreign currency
balance Accrual Transfer or write-off balance
or Reverse k statements
Other receivables 5114532.18 2286568.85 - 60000.00 - 7341101.03
total 5114532.18 2286568.85 - 60000.00 - 7341101.03
(4) Top 5 debtors of other receivables in terms of closing balance
At the end of the year the total amount of the top five other receivables of the Company was RMB3457501957.43 accounting for 78.35% of the total balance of
other receivables at the end of the year without provision for bad debts.
3. Long-term Equity Investment
3 56Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Unit: RMB
Closing balance Opening balance
Item
Carrying balance Provisions Book value Carrying balance Provisions Book value
Investment in subsidiaries 8234997797.96 - 8234997797.96 7687757432.17 - 7687757432.17
Investments in associated enterprises and joint ventures 1251972687.05 - 1251972687.05 993629616.58 - 993629616.58
Total 9486970485.01 - 9486970485.01 8681387048.75 - 8681387048.75
(1) Investment in main subsidiaries
Unit: RMB
Increase during Decrease during Write-off of impairment Balance of impairment loss
Name of investee Opening balance the current the current Closing balance provision during the current provision at the end of the
reporting period reporting period reporting period current reporting period
Hangzhou Hikvision System
871010043.2832755718.20-903765761.48--
Technology Ltd.Hangzhou Hikvision
1094395525.0121719081.66-1116114606.67--
Technology Ltd.Hangzhou EZVIZ Network
60702158.47499663.48-61201821.95--
Co. Ltd.Hangzhou EZVIZ Software
32363130.04255276.01-32618406.05--
Ltd.Hangzhou Hikrobot
137754908.941663630.09-139418539.03--
Technology Co. Ltd.Hangzhou Haikang 8546368.08 485830.22 - 9032198.30 - -
3 57Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Increase during Decrease during Write-off of impairment Balance of impairment loss
Name of investee Opening balance the current the current Closing balance provision during the current provision at the end of the
reporting period reporting period reporting period current reporting period
Intelligence Ltd.Note: the increase this year is due to the participation of subsidiary employees in the restricted stock incentive plan.
(2) Investments in associated enterprises and joint ventures
Unit: RMB
Increase/ Decrease in the current reporting period Balance of
Investment income Other Declared cash impairment loss
Name of Provision
Opening balance Additional Reduced (losses) recognized comprehensive Other changes in dividends or Closing balance provision at the
investee for Others
investments investments under the equity income equity profit end of the current
impairment
method adjustment distribution reporting period
1. Joint Ventures
Hangzhou
Haikang
Intelligent
791356253.14--19685451.64-57022183.13---868063887.91-
Industrial Equity
Investment Fund
Partnership (L.P.)
Zhejiang City
Digital 29635485.61 - - (3765849.98) - - (5792258.59) - - 20077377.04 -
Technology Ltd.Zhejiang Haishi
Huayue Digital 14067281.65 - - (362700.73) - - - - - 13704580.92 -
Technology Ltd.
3 58Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Increase/ Decrease in the current reporting period Balance of
Investment income Other Declared cash impairment loss
Name of Provision
Opening balance Additional Reduced (losses) recognized comprehensive Other changes in dividends or Closing balance provision at the
investee for Others
investments investments under the equity income equity profit end of the current
impairment
method adjustment distribution reporting period
Guangxi Haishi
Urban Operation 12450335.88 - - (1000853.49) - - - - - 11449482.39 -
Management Ltd.Xuzhou Kangbo
Urban Operation
11052348.36--(206602.05)-----10845746.31-
Management
Service Ltd.Others 5172387.15 10500000.00 - (11155902.19) - - - - - 4516484.96
Subtotal 863734091.79 10500000.00 - 3193543.20 - 57022183.13 (5792258.59) - - 928657559.53 -
2. Associated Companies
Zhiguang Hailian
Big Data 23245373.00 - - 1452571.42 - - (300000.00) - - 24397944.42 -
Technology Ltd.Others 106650151.79 3000000.00 - 21356906.12 - 167910125.19 - - - 298917183.10
Subtotal 129895524.79 3000000.00 - 22809477.54 - 167910125.19 (300000.00) - - 323315127.52 -
Total 993629616.58 13500000.00 - 26003020.74 - 224932308.32 (6092258.59) - - 1251972687.05 -
359Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
4. Revenue/cost of sales and services
Unit: RMB
2024 2023 (Restated)
Item
Revenue Cost Revenue Cost
Major business 20681004485.86 4216128688.84 21953642926.65 4391881105.71
Other business 3467417117.50 267226838.09 3594151240.20 165553488.34
Total 24148421603.36 4483355526.93 25547794166.85 4557434594.05
5. Investment Income
Unit: RMB
Item 2024 2023
Long-term equity investment income calculated by the cost
292456924.76424509196.39
method
Investment income of other non-current financial assets
61241171.9965923840.33
during the holding period
Investment income from debt investments 45379372.42 30076287.42
Long-term equity investment income(losses) measured by
26003020.74(36401170.84)
the equity method
Income from debt restructuring 3878687.69 -
Investment income from disposal of business assets - 15902073.63
Others - (399071.78)
Total 428959177.60 499611155.15
6. Related Party Transactions
(1) Sales and purchase of goods provision of services and receiving services
Purchase of goods/ receiving of services:
Unit: RMB
Related party Transaction type 2024 2023
Subsidiaries of Hikvision Purchase of materials and
5395302179.335307205803.18
(Note) receiving of services
Purchase of materials and
Subsidiaries of CETC 32664227.51 51579706.89
receiving of services
Purchase of materials and
Joint ventures 807264.14 547169.80
receiving of services
Purchase of materials and
Associated companies 469026.55 71939278.00
receiving of services
Purchase of materials and
Other related parties 17127.81 20000000.00
receiving of services
Total 5429259825.34 5451271957.87
Note: Subsidiaries of Hikvision are subsidiaries of the Company.
360Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Sales of goods/ rendering of services:
Unit: RMB
Related party Transaction type 2024 2023
Sales of products and
Subsidiaries of Hikvision 19131105118.11 20445938282.22
rendering of services
Sales of products and
Subsidiaries of CETC 24866715.09 53550416.34
rendering of services
Sales of products and
Joint ventures 1673502.60 7910493.83
rendering of services
Sales of products and
Other related parties 5753689.86 5660404.06
rendering of services
Total 19163399025.66 20513059596.45
(2) Related party lease
Unit: RMB
Lessor Lease type Lease fee recognized in 2024 Lease fee recognized in 2023
Subsidiaries of CETC House 1670579.23 2324068.08
Total 1670579.23 2324068.08
(3) Guarantees with related parties
In the current reporting period the Company has provided guarantees for its 31 subsidiaries in an amount not
exceeding an equivalent of RMB16.68 billion (2023: RMB21.74 billion).
(4) Funding to related parties
To meet the funding needs for research and development the Company together with the Group's subsidiaries
Hangzhou System Hangzhou Rayin Technology HikStorage Technology HikMicro Sensing HikRobot HikAuto
Software and Hangzhou Hikvision Technology Co. Ltd. (hereinafter referred to as the "loan user companies") and
several banks have signed a long-term loan agreement for unified borrowing and repayment. Under this loan
arrangement the Company acts as the borrower the loan user companies act as the users and several banks are the
lenders. The loan user companies apply for loans through the Company based on their own comprehensive funding
needs including R&D projects which are then approved by the banks. After approval the loans are disbursed from
the Company to the loan user companies. The loan term runs from December 31 2021 to December 2 2026. As of
December 31 2024 RMB 1066600000.00 (previous year: RMB 3427994954.00) of the Company's long-term
receivables represents loans that have been applied for by the loan user companies. In 2024 interest income
recognized was RMB 56565166.27 (previous year: RMB 75642852.46).
361Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
(5) Other related party transactions
Statement of capital deposits
Unit: RMB
Closing balance at Opening balance at
Amount occurred Amount occurred
Content of related party the end of the the beginning of
Related Party (Note) during the current during the prior
transaction current reporting the current
reporting period reporting period
period reporting period
Deposit into (withdraw 4005019349
Subsidiaries of CETC (4918334.06) 4000101015.82 4985831.20
from) current deposits .88
4005019349
Total (4918334.06) 4000101015.82 4985831.20.88
Note: For the deposit that the Company deposited into China Electronics Technology Finance Co. Ltd. the total
fixed deposit amount by the end of 2024 is RMB4000000000.00 (2023: RMB1000000000.00) the current
deposit amount by the end of 2024 is RMB101015.82 (2023: RMB3005019349.88) and the deposit interest
income is RMB47752259.82 in 2024 (2023: RMB81941288.77).Statement of entrusted lending
In April 2024 the Company convened the 20th meeting of the 5th Board of Directors which deliberated and approved
the Proposal on Providing Financial Assistance to Subsidiaries. The Company will provide related-party loan limits
of up to RMB 800 million each to Hangzhou HikImaging Electronics Ltd. and Zhejiang HikFire Technology Co.Ltd. (hereafter referred to as "Zhejiang Hikfire"). These loans are intended to meet the operating capital needs of
each innovative business subsidiary with specific loan amounts provided based on actual business requirements.The proposal was approved by the Company's shareholders' meeting on May 10 2024. The validity period of the
related-party loan limits is three years from the date of approval by the shareholders' meeting and the limits
(balances) can be used in batches and cycled within the validity period. The annual interest rate for related-party
loans will be determined through negotiation between the parties in compliance with relevant laws and regulations
and will be set according to market principles with specific terms outlined in the contract. Upon the effectiveness
of this proposal any unused portion of the related-party loan limit obtained by Zhejiang HikFire on April 15 2023
automatically become invalid
In April 2023 the Company convened the 17th meeting of the 5th Board of Directors which reviewed and approved
the Proposal on Providing Financial Assistance to Subsidiaries. The proposal includes providing affiliated loan
limits of up to RMB 600 million to HikImaging Technology RMB 600 million to Hangzhou Rayin Techonology
RMB 400 million to Hikfire Technology RMB 200 million to Zhejiang HikFire and RMB 500 million to Wuhu
Sensortech. These funds are intended to meet the operational funding needs of each innovative business subsidiary
with specific loan amounts determined based on actual business requirements. The resolution was approved by the
company's shareholders on April 15 2023. The validity period of the affiliated loan limits is three years from the
362Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
date of approval by the shareholders and the limits (balances) can be used in batches and recycled within the validity
period. The annual interest rate for affiliated loans will be determined through negotiation between the parties in
compliance with relevant laws and regulations and will be set according to market principles with specific terms
specified in the contract. Upon the effectiveness of this resolution any unused affiliated loan limits obtained by
HikImagingTechnology Hangzhou Rayin Technology and HikFire Technology on May 13 2022 automatically
become invalid.During the current reporting year the Company issued entrusted loans to its subsidiaries through China Electronics
Technology Finance Co. Ltd. in the amount of RMB 4156000000.00 (previous year: RMB 2523000000.00).The investment income recognized from entrusted loans was RMB 45379372.42 (previous year: RMB
30076287.42) and the handling fees recognized for China Electronics Technology Finance Co. Ltd. were RMB
415600.00 (previous year: RMB 277300.00). At the end of the reporting year the balance of entrusted loans issued
by the Company through China Electronics Technology Finance Co. Ltd. to its subsidiaries was RMB
1705000000.00 (end of previous year: RMB 1663000000.00).
Other
During the year the Company received RMB 820937.88 as an international operation subsidy from its actual
controlling party CETC.
7. Receivables from Related Parties and Payables to Related Parties
(1) Receivables from related parties
Unit: RMB
Closing balance Opening balance
Item Related party Bad debts Bad debts
Carrying balance Carrying balance
provision provision
Notes receivable and Subsidiaries
37741590.86-78686478.44-
receivables for financing of Hikvision
Notes receivable and Subsidiaries
10513675.0086212.1430036696.08207253.20
receivables for financing of CETC
Notes receivable and
Associates 552692.21 - - -
receivables for financing
Total 48807958.07 86212.14 108723174.52 207253.20
Unit: RMB
363Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Closing balance Opening balance
Item Related party Bad debts Bad debts
Carrying balance Carrying balance
provision provision
Subsidiaries of
Account receivables 22467680384.77 - 15710430253.38 -
Hikvision
Account receivables Subsidiaries of CETC 178548603.77 83196754.77 239193519.53 93713214.14
Account receivables Joint ventures 6892208.90 902328.46 8035455.55 368023.86
Account receivables Associates 9332521.72 6872408.87 8012788.72 4626280.98
Account receivables Other related parties 3223980.57 82171.25 2789778.82 54524.86
Total 22665677699.73 91053663.35 15968461796.00 98762043.84
Unit: RMB
Item Related party Closing balance Opening balance
Prepayments Subsidiaries of Hikvision 168075014.96 1849870.06
Prepayments Subsidiaries of CETC 546123.27 2023660.38
Total 168621138.23 3873530.44
Unit: RMB
Closing balance Opening balance
Item Related party Bad debts Bad debts
Carrying balance Carrying balance
provision provision
Other receivables (not
Subsidiaries of
including dividend 4305122194.83 - 2761272567.36 -
Hikvision
receivables)
Other receivables (not
Subsidiaries of
including dividend 125015.40 1256.99 1149910.00 218482.90
CETC
receivables)
Other receivables (not
including dividend Joint ventures 10630.33 87.17 16837.13 116.18
receivables)
Other receivables (not
including dividend Associates - - 1012500.00 6986.25
receivables)
Total 4305257840.56 1344.16 2763451814.49 225585.33
Unit: RMB
364Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Closing balance Opening balance
Item Related party Bad debts Bad debts
Carrying balance Carrying balance
provision provision
Subsidiaries of
Dividend receivable - - 41423446.39 -
Hikvision
Total - - 41423446.39 -
Unit: RMB
Item Related party Closing balance Opening balance
Other current assets Subsidiaries of Hikvision 1705000000.00 1663000000.00
Total 1705000000.00 1663000000.00
Unit: RMB
Closing balance Opening balance
Item Related party Bad debts Bad debts
Carrying balance Carrying balance
provision provision
Long-term
receivables Subsidiaries of
1066600000.00-3427994954.00-
(including those due Hikvision
within one year)
Long-term
receivables
Subsidiaries of CETC 119906.12 983.23 47210.22 325.75
(including those due
within one year)
Total 1066719906.12 983.23 3428042164.22 325.75
(2) Payables to related parties
Unit: RMB
Item Related party Closing balance Opening balance
Accounts payable Subsidiaries of Hikvision 689778641.24 723182432.60
Accounts payable Subsidiaries of CETC 10610293.12 9360219.51
Total 700388934.36 732542652.11
Unit: RMB
Item Related party Closing balance Opening balance
Contract liabilities Subsidiaries of Hikvision 1120699.61 6294170.87
Contract liabilities Subsidiaries of CETC 433257.00 382321.75
Contract liabilities Other related parties 1000.50 2052.00
365Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Item Related party Closing balance Opening balance
Total 1554957.11 6678544.62
Unit: RMB
Item Related party Closing balance Opening balance
Other payables Subsidiaries of Hikvision 247950838.31 105286603.62
Other payables Subsidiaries of CETC 529940.00 640040.00
Other payables Joint ventures 6000.00 -
Other payables Associates 10000.00 19996880.00
Other payables Other related parties 113000.00 100000.00
Total 248609778.31 126023523.62
Unit: RMB
Item Related party Closing balance Opening balance
Lease liabilities (including
Subsidiaries of CETC - 5215883.84
those due within one year)
Total - 5215883.84
8. Supplementary Information to the Cash Flow Statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information 2024 2023
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit 9484641144.09 10552055515.88
Add: Assets impairment provision 98433.91 (2652989.00)
Credit loss provision 114296061.01 98343814.70
Depreciation of fixed assets 400803736.88 394552937.63
Amortization of intangible assets 11963785.89 19203854.89
Depreciation of right of use assets 43289525.77 60032344.15
Amortization of long-term deferred expenses 21896303.07 18328579.31
Losses (gains) on disposal of fixed assets
7215529.29(1072329.19)
intangible assets and other long-term assets
Financial expenses 37079820.87 113727235.45
Losses(gains)from change in fair value 31637646.48 (2475310.72)
Investment losses(gains (425080489.91) (499611155.15)
Share-based payment through equity settlement 465571241.07 87813763.64
Decrease (increase) in restricted funds (11358859.44) 43774289.78
366Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Supplementary information 2024 2023
Decrease (increase) in deferred income tax assets 16231468.48 (152253958.67)
Decrease in inventories 55453299.85 91007632.42
Decrease (increase) in operating receivables (7821898315.65) 4966174990.63
Increase (decrease) in operating payables (703839540.74) 838972476.93
Increase (decrease) in deferred income (44429536.28) (53059016.05)
Net cash flow from operating activities 1683571254.64 16572862676.63
2. Net change in cash and cash equivalents:
Closing balance of cash 22790271523.04 36354702554.38
Less: Opening balance of cash 36354702554.38 27771201246.40
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase (decrease) in cash and cash equivalents (13564431031.34) 8583501307.98
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 22790271523.04 36354702554.38
Including: Cash on hand 252041.30 311652.18
Bank deposit for payment at any time 22699753574.91 36354378020.77
Other currency funds for payment at any time 90265906.83 12881.43
II. Cash equivalents - -
III. Closing balance of cash and cash equivalents 22790271523.04 36354702554.38
On December 31 2024 the Company's closing balance of other currency funds was RMB 113532375.06
(December 31 2023: RMB 11920490.22) of which RMB 23266468.23 (December 31 2023: RMB
11907608.79) were various guarantee deposits other restricted funds and etc. not cash or cash equivalents.
XVII. Supplementary Information
1. Details of Non-Recurring Profit or Loss
Unit: RMB
Item Amount Description
Profit or loss from disposal of non-current assets (14862769.68) /
The government subsidies recognized in the current period's
profit or loss except for those closely related to the company's 566828064.11 /
normal operations in compliance with national policy and
367Hikvision 2024 Annual Report
Notes to Financial Statements
For the reporting period from January 1 2024 to December 31 2024
Item Amount Description
enjoyed according to established standards which have a
sustained impact on the company's profit or loss.Apart from the effective hedging activities related to the
company's normal business operations the fair value changes in
financial assets and financial liabilities held by non-financial 41760525.08 /
enterprises as well as the gains or losses from the disposal of
these financial assets and liabilities.The current period net income of subsidiaries constituting
business combination under common control from the start of (295677.15) /
the period to the combination date
Income or loss from debt restructuring 101109433.26 /
The share-based payment expenses recognized in one-time due
(471167293.91)/
to the cancellation or amendment of the equity incentive plan
Other non-operating income and expense except the items
53766054.09/
mentioned above
Impact of income tax (20093234.14) /
The impact of minority equity (94579719.28) /
Total 162465382.38 /
The Basis for Preparing the Schedule of Non-recurring Gains and Losses:
According to the provisions of the China Securities Regulatory Commission's "Announcement No. 1 on the Interpretation
of Information Disclosure for Publicly Issued Securities - Non-recurring Gains and Losses (2023 Revision)" non-
recurring gains and losses refer to the gains and losses arising from transactions and events that are not directly related to
the company's normal business operations or although related to normal business operations are of a special nature and
occur infrequently thereby affecting the ability of financial statement users to make correct judgments about the
company's operating performance and profitability.
2. Return on Net Assets and Earnings per Share
The return on net assets and earnings per share have been prepared by Hangzhou Hikvision Digital Technology Co. Ltd.in accordance with the Information Disclosure and Presentation Rules for Companies Making Public Offering of
Securities No. 9 – Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revised in 2010) issued
by China Securities Regulatory Commission.Unit: RMB
Weighted Earnings per share
Profit for the reporting period average return on
Basic earnings per Diluted earnings per
net assets (%)
share share
Net profit attributable to ordinary shareholders of the
15.341.2971.297
Company
Net profit excluding non-recurring items of profit or loss
15.141.2801.280
attributable to ordinary shareholders of the Company
368Hikvision 2024 Annual Report
Section XI Documents Available for Reference
1. The financial report was signed and sealed by the person in charge of the Company the person in
charge of accounting work and person in charge of accounting organization (Accounting Supervisor);
2. The original audit report containing the seal of the accounting firm and the signature and seal of
the certified public accountant;
3. Original versions and copies of all the Company's documents and announcements that were
publicly disclosed on the website designated by CSRC during the reporting period.The above documents are completely placed at the Company's board of directors' office.Hangzhou Hikvision Digital Technology Co. Ltd.Chairman: Hu Yangzhong
April 19 2025
Note:
This document is a translated version of the Chinese version 2024 Annual Report ("2024 年年度报
告") and the published announcements in the Chinese version shall prevail. The complete published
Chinese 2024 Annual Report may be obtained at www.cninfo.com.cn.
369
沪公网安备31011802005267号
