Hangzhou Hikvision Digital Technology Co. Ltd.

2025 Half Year Report

January to June 2025

August 2 2025Hikvision 2025 Half Year Report

Section I Important Notes Contents and Definitions

The Board of Directors Board of Supervisors directors supervisors and senior management of

Hangzhou Hikvision Digital Technology Co. Ltd. (hereinafter referred to as the "Company") hereby

guarantee that the information presented in this report shall be together be wholly liable for the

truthfulness accuracy and completeness of its contents and free of any false records misleading

statements or material omissions and will undertake individual and joint legal liabilities.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 half year report are

authentic accurate and complete.All directors of the Company have attended the board meeting to review this report.The half year proposal of profit distribution or share distribution from capital reserve passed upon

deliberation at the meeting of the Board of Directors (not applicable): The Company will not

distribute cash dividend distribute bonus shares or distribute shares from capital reserve during the

current reporting period.Note:

This document is a translated version of the Chinese version 2025 Half Year Report (2025 年半年度

报告) and the published announcements in the Chinese version shall prevail. The complete published

Chinese 2025 Half Year Report may be obtained at www.cninfo.com.cn.

1Hikvision 2025 Half Year Report

Please read the half year report and pay particular attention to the following risk factors:

(1) Risks of domestic economic transformation: Continuous adjustments in fiscal spending and real estate

investment markets the expectation for healthy economic development across society still needs to be

strengthened and trade protectionist policies implemented by some overseas countries pose challenges to

domestic enterprises’ export capabilities. The economy is still in the process of transformation and upgrading.The Company empowers economic and social digital transformation with AIoT technologies and products

promoting new productivity development. However transformation and upgrading cannot be achieved

overnight and structural pressures in the economy and society will persist over the long term. Fluctuations

during this process will continue to impact the Company’s business operations.

(2) Global economic downside risks: Individual countries intensifying trade protection policies some major

economies experiencing slower growth uneven development across regions and continuous fluctuations in

the macroeconomic environment. The Company diversifies its operational risks across a wide range of business

operations and conducts business according to the specific conditions of each country and region. However if

a global economic recession occurs the Company’s business will also be affected to some extent.

(3) Geopolitical risks: The global political system is evolving toward a multipolar structure with continuously

declining stability and predictability and ongoing intractable local conflicts. In recent years the Company has

continuously strengthened risk control enhanced response capabilities and adjusted resource allocation based

on the business environment. However if the geopolitical environment suddenly deteriorates the Company’s

operations in certain countries and regions may still be adversely affected.

(4) Technology upgrading risks: With the rapid development of AI big data IoT cloud computing and other

technologies technological applications are iterating quickly. The Company has some strength in technology

fields such as IoT perception AI and big data and maintains technological iteration through extensive

commercial practices. However if it fails to closely track updates in cutting-edge technologies or sustain

innovation and expansion of its technical system the uncertainty of the Company's future development will

increase.

(5) Risks of internal management: The Company's continual business expansion and development of new

products and business services add complexity to internal management posing new challenges to our

management capabilities. The Company accumulates management experience through the development of

2Hikvision 2025 Half Year Report

systems and procedures with a focus on talent cultivation and construction. However the Company's operations

will be adversely affected if our management capabilities cannot keep up with the business expansion.

(6) Financial risks caused by customers' reduced ability to pay: The flow of funds in commercial transactions

is affected by the economic environment. The Company’s financial operations are closely tied to the

performance of partners upstream and downstream in the value chain. The Company has accumulated a certain

level of cash reserves through diligent and prudent operations and has relatively low financing costs. However

if overall market liquidity risk increases the Company’s cash collection may still slow down adversely

affecting its operations.

(7) Legal and compliance risks: The world's multilateral trading system is greatly impacted by politics and

business activities are required to comply with the complex laws and regulations of various regions. The

Company has constantly strengthened the legal compliance system since countries around the world have

stricter requirements for data supervision and legal compliance capabilities. The Company has established a

set of effective legal and compliance management systems that have been tested through multiple domestic

and international business practices. However if the Company’s legal and compliance capabilities fail to adapt

to evolving circumstances in a timely manner it may still have an adverse impact on its operations.

(8) Supply chain risks: Some countries have increasingly used supply chains as a key tool for international

competition and the global supply system has been continuously impacted by geopolitical tensions in recent

years. The Company strives to develop a diversified supply network and maintain reasonable inventory levels

but a widespread disruption in the supply chain could still affect the stability of its business operations.

(9) Risks of cybersecurity: The Company has always emphasized cybersecurity and taken active measures to

enhance the security of our products and systems. However computer viruses malicious software hacker

attacks and other security incidents that deliberately attempt to damage the Company's systems or products

may take place causing potential cybersecurity issues.

(10) Risks of exchange rate fluctuations: The Company operates in multiple countries and regions where

transactions are mainly settled in non-RMB currencies. Although the Company uses appropriate financial

instruments to hedge risks exchange rate fluctuations will affect our financial performance due to the foreign

currency exposure arising from sales procurement and financing.

3Hikvision 2025 Half Year Report

(11) Risks of intellectual property (IP) rights: The Company has maintained considerable investment in R&D

and made significant technological achievements. We have also implemented robust IP protection measures.However the risk of IP disputes and infringement still exists.The above-mentioned alerts do not include all the potential risks for the Company. Investors are advised to invest

with caution.

4Hikvision 2025 Half Year Report

CONTENTS

Section I Important Notes Contents and Definitions... 1

Section II Corporate Profile & Key Financial Data ... 7

Section III Management Discussion and Analysis ..... 11

Section IV Corporate Governance Environmental and .. 29

Section V Significant Events ....................... 30

Section VI Changes in Shares and Information about.. 43

Section VII Bonds .................................. 51

Section VIII Financial Report ...................... 52

Section IX Documents Available for Reference ...... 178

5Hikvision 2025 Half Year Report

Definitions

Term Definition

Reporting Period From January 1 2025 to June 30 2025

Articles of Association Articles of Associations for Hangzhou Hikvision Digital Technology Co. Ltd

Hikvision our Company the

Hangzhou Hikvision Digital Technology Co. Ltd

Company the Group our Group

CETC China Electronics Technology Group Corporation the actual controller of the Company

CETHIK China Electronics Technology HIK Group Co. Ltd. the controlling shareholder of the Company

Hangzhou EZVIZ Network Co. Ltd.(According to the context also refers to the corresponding

EZVIZ EZVIZ Network

business)

Hangzhou Hikrobot Co. Ltd. (According to the context also refers to the corresponding

HikRobot

business)

Shijiazhuang Sensor-Tech Intelligence Technology Co. Ltd. (According to the context also

WHST HikAuto

refers to the corresponding business)

HikMicro Micro Sensing Hangzhou Hikmicro Sensing Technology Co. Ltd. (According to the context also refers to the

Thermal Imaging corresponding business)

Wuhan Hikstorage Technology Co. Ltd. (According to the context also refers to the

HikSemi

corresponding business)

Hangzhou Hikimaging Technology Co. Ltd. (According to the context also refers to the

HikImaging

corresponding business)

Hangzhou Hikfire Technology Co. Ltd. (According to the context also refers to the

HikFire

corresponding business)

HikRayin Hik Security Check (According to the context also refers to the 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

Innovative Business

Staff Investment in Innovative Business (www.cninfo.com.cn).In this report innovative business also refers to EZVIZ HikRobot HikAuto HikMicro

HikSemi HikImaging HikFire HikRayin and their related products.

6Hikvision 2025 Half Year 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 HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO. LTD

Abbr. of the Company name in English HIKVISION

Legal representative Hu Yangzhong

II. Contacts and contact information

Board Secretary Securities Affairs Representative

Name Feng Wei Cai Chao

No. 518 WuLianWang Street Binjiang No. 518 WuLianWang Street Binjiang

Address

District 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. Other relevant information

1. Company's contact information

Whether there is any change in the Company's registered address office address zip code company website or

company email address during the reporting period.□Applicable √ Inapplicable

There is no change in the Company's registered address office address zip code company website or company

email address during the reporting period. Please refer to 2024 Annual Report for details.

2. Information disclosure and place of the report

Whether there is alteration in information disclosure and place of the report during the current reporting period.□ Applicable √ Inapplicable

7Hikvision 2025 Half Year Report

The media website and the securities exchange website for the disclosure of the Company Half Year report and

the place where the Half Year Report is available for inspection remained unchanged during the reporting period.For details please refer to the 2024 Annual Report.

3. Other relevant information

Whether other relevant information has changed during the current reporting period

□ Applicable √ Inapplicable

IV. Key accounting data and financial indicators

Whether the Company performed a retrospective adjustment or restatement of previous accounting data

□ Yes√ No

First half of 2025 First half of 2024 YoY Change (%)

Revenue (RMB) 41818040088.44 41209096206.36 1.48%

Net profit attributable to shareholders

5657349798.685064118857.2911.71%

of the Company (RMB)

Net profit attributable to shareholders

of the Company excluding non- 5489000328.37 5243005903.72 4.69%

recurring gains and losses (RMB)

Net cash flows from operating

5343019637.89-189636040.902917.51%

activities (RMB)

Basic earnings per share (RMB/share) 0.615 0.539 14.10%

Diluted earnings per share

0.6150.53914.10%

(RMB/share)

Weighted average ROE 6.85% 6.51% 0.34%

Change(%) between

On June 30 2025 On December 31 2024 December 31 2024 and

June 30 2025

Total assets (RMB) 124414765281.12 132016200156.14 -5.76%

Net assets attributable to shareholders

78552358426.8680668661062.88-2.62%

of the Company (RMB)

The total share capital of the Company as of the previous trading day of the report disclosure:

The total share capital of the Company as of the previous trading day of the report disclosure (share) 9233198326

Fully diluted earnings per share calculated with the latest share capital:

Fully diluted earnings per share (RMB/share) calculated with the latest share capital 0.613

8Hikvision 2025 Half Year Report

V. 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

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

VI. Items and amounts of non-recurring gains and losses

√ Applicable □ Inapplicable

Unit：RMB

Item Amount

Profit or loss from disposal of non-current assets (including the write-off for the impairment

7349132.16

provision of assets)

The government subsidies included in the current profits and losses (excluding the government

subsidy closely related to regular course of business of the Company and government subsidy based 267638685.22

on standard quota or quantitative continuous application according to the state industrial policy)

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 (84646697.58)

well as the gains or losses from the disposal of these financial assets and liabilities.Investment income generated from the disposal of long-term equity investments 224079.88

Other non-operating income and expenditures except the items mentioned above 29239300.73

Less: Impact of income tax 17869448.69

Impact of the minority interests (after tax) 33585581.41

Total 168349470.31

The specific situation of other profit and loss items that meet the definition of non-recurring gains and losses：

□ Applicable √ Inapplicable

9Hikvision 2025 Half Year Report

The company does not have any specific situations of profit and loss items that meet the definition of non-

recurring gains and losses.Explanation of the situation where the non-recurring gains and losses items listed in the 'Interpretative

Announcement No. 1 on Information Disclosure of Companies Issuing Securities Publicly — Non-recurring Gains

and Losses' are defined as recurring gains and losses items.□ Applicable √ Inapplicable

The Company does not have any instances where the non-recurring gains and losses items listed in the 'Interpretative

Announcement No. 1 on Information Disclosure of Companies Issuing Securities Publicly — Non-recurring Gains

and Losses' are classified as recurring gains and losses items.

10Hikvision 2025 Half Year Report

Section III Management Discussion and Analysis

I. The principal business of the Company during the reporting period

There was no significant change for the principal business of the Company during the current reporting period.Please refer to 2024 Annual Report for details.II. Core competitiveness analysis

There was no significant change in the Company's core competitiveness during the current reporting period. For

details please refer to 2024 Annual Report.III. Core business analysis

Whether consistent with the Company's core business disclosure during the current reporting period

√Yes □ No

In the first half of 2025 global economic recovery remained uneven with overseas trade disputes intertwined

with geopolitical risks and external uncertainties remaining prominent. Domestically while multiple policies aimed

at stabilizing the economy were implemented the economy demonstrated a certain resilience albeit with low

visibility. The process of digital transformation and upgrading for enterprises and society is moving forward amidst

fluctuations. In the face of a complex and changing domestic and international environment Hikvision persisted in

adopting a steady and cautious approach to address various uncertainties focused on profitability as the core of

operations emphasized performance improvement continuously promoted organizational transformation and

meticulous management and strived to achieve high-quality and sustainable growth.During the reporting period the Company achieved revenue of RMB41.82 billion with year over year growth

of 1.48%; the net profits attributable to shareholders of the Company was RMB5.66 billion an increase of 11.71%

over the same period of the previous year.

(1) Strengthen the technological foundation and enhance innovation-driven growth

Hikvision has always adhered to technical innovation as its core driving force maintaining R&D investment

intensity and continuously enhancing sustainable development capabilities. The Company continues to develop

11Hikvision 2025 Half Year Report

multi-dimensional sensing artificial intelligence and big data technologies; promotes the innovative development

of digital products and the effective implementation of large model applications consistently launching new

products diverse in functionality and form to adapt to emerging scenarios and demands comprehensively elevating

product intelligence levels and continuously expanding the boundaries of the Company’s AIoT business.

(2) Optimize operational systems and enhance business efficiency

During the reporting period the Company continuously implemented location-specific adjustments to its

business structure deepened process transformation optimized organizational collaboration mechanisms and

ensured efficient business operations. The Company strengthened cost control enhanced the correlation between

expenditures and business performance and effectively improved operational efficiency. Committed to effective

growth the Company maintained rigorous quality oversight over business operations continuously strengthened

management of operational assets refined risk control mechanisms and consolidated the institutional foundation

for regulatory compliance providing robust safeguards for sustainable development.

(3) Cultivate main businesses and enhance core capabilities

During the reporting period the Company proactively seized development opportunities brought by

breakthroughs in large AI model technology driving the sustained release of business potential. The Company

continued to expand scenario-based digitalization business creating new growth opportunities for domestic main

businesses. Meanwhile adhering to its global development strategy the Company further increased investment in

overseas marketing to boost its international revenue share. Leveraging profound expertise in the AIoT industry

Hikvision persistently extended the boundaries of sensing capabilities implemented multimodal large model

technologies established application closed loops through big data and software capabilities and advanced digital

transformation across society.

(4) Expand diversified structure and inject development momentum

During the reporting period the overall revenue of innovative businesses reached RMB11.77 billion

representing a year-on-year increase of 13.92% and accounting for 28.14% of the Company’s total revenue. The

proportion of innovative businesses continues to rise with major businesses such as HikRobot EZVIZ HikAuto

12Hikvision 2025 Half Year Report

and HikMicro having already achieved leading positions in their respective fields becoming a strong guarantee for

the Company’s business growth. The Company’s main business and innovative businesses advance synergistically

jointly forming an AIoT ecosystem network. The business structure is well-coordinated and clearly divided

providing solid support for the Company’s long-term sustainable development.YoY changes in key financial data

Unit: RMB

First half of 2024

First half of 2025 YoY (%) Note of Change

(restated)

Total revenue 41818040088.44 41209096206.36 1.48% No significant change

Total operating costs 22919499439.04 22732341841.73 0.82% No significant change

Selling expenses 5708759811.30 5473891751.46 4.29% No significant change

Administrative expenses 1386257017.69 1464347813.80 -5.33% No significant change

Increase in foreign currency exchange gains

Financial expenses -739368414.40 -250188701.72 -195.52%

due to fluctuation in foreign exchange rate

Income Tax Expenses 759413973.74 660855881.81 14.91% No significant change

R&D investments 5669772011.51 5698043754.07 -0.50% No significant change

Net cash flows from Increase in sales collections during the

5343019637.89-189636040.902917.51%

Operating Activities reporting period

Net cash flows from

-1878812149.09 -1903226404.50 1.28% No significant change

Investment Activities

Decrease in expenditures such as repayment

Net cash flows from

-8550575930.17 -13360325362.71 36.00% of loans and cash dividends during the

Financing Activities

reporting period

Net decrease in cash and Increase in cash inflows from operating

-5054494535.50-15473769254.3567.34%

cash equivalents activities during the reporting period

Revenue structure

Unit：RMB

First half of 2025 First half of 2024

YoY Change

Proportion to total Proportion to total

Amount Amount (%)

revenue revenue

Total revenue 41818040088.44 100.00% 41209096206.36 100.00% 1.48%

Classified by industry

AIoT products and services 41818040088.44 100.00% 41209096206.36 100.00% 1.48%

13Hikvision 2025 Half Year Report

First half of 2025 First half of 2024

YoY Change

Proportion to total Proportion to total

Amount Amount (%)

revenue revenue

Classified by product/business

Products and services for

29271794689.3770.00%30229701063.8873.36%-3.17%

main business1

Constructions for main

780316256.461.87%651214618.731.58%19.82%

business

Subtotal 30052110945.83 71.86% 30880915682.61 74.94% -2.68%

Robotic business 3138354805.04 7.50% 2744389603.14 6.66% 14.36%

Smart home business 2752441041.15 6.58% 2448684604.42 5.94% 12.40%

Auto electronics business 2352287642.16 5.63% 1605885368.24 3.90% 46.48%

Thermal imaging business 2008057842.03 4.80% 1829997676.77 4.44% 9.73%

Storage business 1033275636.44 2.47% 1311887493.34 3.18% -21.24%

Other innovative businesses2 481512175.79 1.15% 387335777.84 0.94% 24.31%

Subtotal 11765929142.61 28.14% 10328180523.75 25.06% 13.92%

Classified by region

Domestic 26393423147.63 63.11% 27029231758.69 65.59% -2.35%

Overseas 15424616940.81 36.89% 14179864447.67 34.41% 8.78%

Revenue structure3

Unit: RMB 100mn

YoY Change

First half of 2025 First half of 2024

(%)

PBG 55.73 56.93 -2.11%

Domestic main EBG 74.62 74.89 -0.36%

business SMBG 40.67 57.89 -29.75%

Other products and services for main business 7.19 4.69 53.30%

Overseas main

Products and services for main business 122.31 114.41 6.90%

business

Innovative businesses4 117.66 103.28 13.92%

Total5 418.18 412.09 1.48%

1 Main business refers to the business parts other than innovative businesses

2 Other innovative businesses include the products and services of the innovative business subsidiaries such as HikFire Rayin and

HikImaging. Same below.

3 The revenue from domestic main business and overseas main business only include Hikvision's main business's products and

services excluding revenue from innovative businesses.

4 Innovative businesses' revenue includes its domestic and overseas revenue.

5 The data listed in the footnote may differ slightly from the sum of the related individual data due to rounding.

14Hikvision 2025 Half Year Report

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

Gross YoY Change (%)

Revenue Operating costs (%) of (%) of gross

margin of operating costs

revenue margin

Classified by industry

AIoT products and

41818040088.4422919499439.0445.19%1.48%0.82%0.35%

services

Classified by product/business

Products and services

29271794689.3715069807832.8348.52%-3.17%-7.12%2.19%

for main business

Constructions for

780316256.46587229933.6224.74%19.82%14.24%3.68%

main business

Innovative businesses 11765929142.61 7262461672.59 38.28% 13.92% 21.19% -3.70%

Subtotal 41818040088.44 22919499439.04 45.19% 1.48% 0.82% 0.35%

Classified by region

Domestic 26393423147.63 14784367186.17 43.98% -2.35% -3.45% 0.63%

Overseas 15424616940.81 8135132252.87 47.26% 8.78% 9.63% -0.41%

When the statistical caliber of the Company's major business data is adjusted during the reporting period the

Company's major business data would be adjusted according to the end of the reporting period in the most recent

period.□Applicable √ Inapplicable

Total operating costs structure

Classified by industry

Unit: RMB

First half of 2025 First half of 2024 (restated)

Proportion to Proportion to YoY

Industry Item

Amount operating Amount operating Change (%)

costs costs

AIoT products and

Operating costs 22919499439.04 100.00% 22732341841.73 100.00% 0.82%

services

Classified by product/business

15Hikvision 2025 Half Year Report

Unit: RMB

First half of 2025 First half of 2024 (restated)

Proportion to Proportion to YoY

Product/business Item

Amount operating Amount operating Change (%)

costs costs

Products and Services

Operating costs 15069807832.83 65.75% 16225702750.78 71.38% -7.12%

for main business

Constructions for main

Operating costs 587229933.62 2.56% 514054139.49 2.26% 14.24%

business

Innovative businesses Operating costs 7262461672.59 31.69% 5992584951.46 26.36% 21.19%

Subtotal Operating costs 22919499439.04 100.00% 22732341841.73 100.00% 0.82%

IV. Non-core business analysis

□Applicable √ Inapplicable

V. Analysis of assets and liabilities

1. Material changes of asset items

Unit：RMB

June 30 2025 December 31 2024 Change between

Percentage Percentage December 31

Note of significant change

Amount to total Amount to total 2024 and June

assets assets 30 2025

Cash dividend distributions

Cash and bank

31286076526.36 25.15% 36271488337.03 27.48% -2.33% lead to a decrease in cash and

balances

bank balances

Accounts

34838491117.63 28.00% 37910128735.42 28.72% -0.72% No significant change

receivable

Contract assets 916055435.78 0.74% 985822785.69 0.75% -0.01% No significant change

Inventories 19124924891.72 15.37% 19110711958.11 14.48% 0.89% No significant change

Long-term

equity 1491371496.71 1.20% 1527223390.79 1.16% 0.04% No significant change

investment

EZVIZ Intelligent

Fixed assets 16883791179.01 13.57% 15063752296.49 11.41% 2.16%

Manufacturing Chongqing Base

16Hikvision 2025 Half Year Report

June 30 2025 December 31 2024 Change between

Percentage Percentage December 31

Note of significant change

Amount to total Amount to total 2024 and June

assets assets 30 2025

Project transferred to fixed

Construction in

4007765610.39 3.22% 4699473381.21 3.56% -0.34% assets

process

Right-of-use

465741605.700.37%530138023.790.40%-0.03%

assets No significant change

Lease liabilities 316505423.75 0.25% 375432749.68 0.28% -0.03%

Contract

3380938673.00 2.72% 3353943054.24 2.54% 0.18% No significant change

liabilities

Short-term

1530631987.861.23%1031895812.620.78%0.45%

borrowings

Non-current

liabilities due 4058425783.08 3.26% 767030688.91 0.58% 2.68%

No significant change

within one year

Long-term

1227788621.450.99%5119185000.003.88%-2.89%

borrowings

2. Main overseas assets

□ Applicable √ Inapplicable

17Hikvision 2025 Half Year Report

3. Assets and liabilities measured at fair value

√ Applicable □ Inapplicable

Unit: RMB

Provision for

Cumulative Sold

Foreign decline in Purchased

Profit or loss from change fair value amount

Currency value during amount

Item Opening balance in fair value during the changes during Other changes Closing balance

Translation the current during the

current reporting period included in the

Adjustment reporting period

equity period

period

Financial assets

1. Derivative financial assets 26775923.93 (26750323.93) 25600.00

2. Other non-current

472000082.7637607852.795000000.00514607935.55

financial assets

3. Receivables for financing 2291648244.05 (42204946.05) 2249443298.00

Subtotal of financial assets 2790424250.74 10857528.86 5000000.00 (42204946.05) 2764076833.55

Financial Liabilities 1874341.64 (53974972.19) (9431.43) 55839882.40

Whether there were any material changes on the measurement attributes of major assets of the Company during the reporting period:

□ Yes √ No

4. Assets right restrictions as of the end of reporting period

Unit: RMB

Item Closing book value Reasons for being restricted

Cash and bank balance 287528681.57 Various cash deposits and other restricted funds

18Hikvision 2025 Half Year Report

Item Closing book value Reasons for being restricted

Notes receivable 1328641069.96 Endorsed to suppliers discounted to the bank

Accounts receivable 109887827.72 Pledge for long-term borrowings

Contract assets 40952482.25 Pledge for long-term borrowings

Fixed assets 44642772.24 Fixed assets leased by operating leases

Intangible assets 11450846.86 Pledge and collateral for long-term borrowings

Other non-current assets 484125599.18 Pledge for long-term borrowings

Total 2307229279.78

VI. Analysis of investments

1. Overview

√Applicable □ Inapplicable

Investment during the first half of 2025 (RMB) Investment during the first half of 2024 (RMB) YoY (%)

1845516540.771778530933.523.77%

2. Significant equity investment during the current reporting period

□Applicable √ Inapplicable

3. Significant non-equity investment during the current reporting period

√ Applicable □ Inapplicable

19Hikvision 2025 Half Year Report

Unit: RMB

Cumulative Reasons for not

Fixed

Investment during amount of reaching planned Disclosure

Invest assets Project Project Disclosure Index (if

Project name the current investment by the Source of funds progress and Date (if

method investme industry schedule applicable)

reporting period end of the current expected benefits applicable)

nt or not

reporting period

Announcement on

AIoT

Investment and Construction

Wuhan Science and products October 23

Purchase YES 4061834.28 1661710924.66 Self-fund 87.41% None Progress of Wuhan Science

Technology Park Project and 2021

and Technology Park Project

services

(No. 2021-065)

Announcement on

AIoT Investment and Construction

EZVIZ Intelligent

Self- products Self-fund / August 11 of EZVIZ Intelligent

Manufacturing Chongqing YES 401540305.37 1545873682.60 100.00% None

built and raised fund 2021 Manufacturing Chongqing

Base Project

services Base by the holding

subsidiary (No. 2021-052)

Announcement on

AIoT Investment and Construction

HikRobot Intelligent

Self- products January 19 of HikRobot Intelligent

Manufacturing (Tonglu) YES 128825615.73 627625959.41 Self-fund 58.60% None

built and 2022 Manufacturing (Tonglu)

Base Project

services Base Project by the holding

subsidiary (No. 2022-009)

Announcement on

AIoT Investment and Construction

Infrared Thermal Imaging

Self- products January 19 of Infrared Thermal Imaging

Complete Machine Products YES 98314144.45 264982679.47 Self-fund 33.94% None

built and 2022 Complete Machine Products

Industrial Base Project

services Industrial Base by the

holding subsidiary (No.

20Hikvision 2025 Half Year Report

Cumulative Reasons for not

Fixed

Investment during amount of reaching planned Disclosure

Invest assets Project Project Disclosure Index (if

Project name the current investment by the Source of funds progress and Date (if

method investme industry schedule applicable)

reporting period end of the current expected benefits applicable)

nt or not

reporting period

2022-008)

Announcement on

Investment and Construction

AIoT

HikRobot Product of HikRobot Product

Self- products January 19

Industrialization Base YES 41891879.33 241644847.64 Self-fund 23.84% None Industrialization Base

built and 2022

Construction Project Construction Project by the

services

holding subsidiary (No.

2022-007)

Announcement on

AIoT

Investment and Construction

Wuhan Intelligence Industry Self- products September

YES 66411815.67 80266346.78 Self-fund 6.82% None of Wuhan Intelligence

Park Project (Phase II) built and 23 2017

Industry Park in Wuhan (No.services

2017-036)

Total -- -- -- 741045594.83 4422104440.56 -- -- -- -- --

Note: In accordance with the Company's Authorization Management System new fixed asset investments in Wuhan Intelligence Industry Park Project were approved

by the Strategy Committee of the Board of Directors.

4. Financial asset investment

4.1 Securities Investments

□ Applicable √ Inapplicable

There no such case in the reporting period.

21Hikvision 2025 Half Year Report

4.2 Derivatives Investments

√ Applicable □ Inapplicable

1) Derivative investments for the purpose of hedging within the reporting period.

√ Applicable □ Inapplicable

Unit: 0000 RMB

Gain or loss

on changes Sold amount Proportion of closing

Changes in cumulative Purchased amount

Type of derivatives Initial investment Opening in fair value during the investment amount to the

fair value included in during the reporting Closing amount

investment amount amount during the reporting Company’s net assets at the

equity period

reporting period end of the reporting period

period

Foreign exchange

143549.68143549.68-8072.53-352389.30-194472.662.48%

contract

Total 143549.68 143549.68 -8072.53 - 352389.30 - 194472.66 2.48%

In accordance with the provisions of Accounting Standards for Business Enterprises (hereinafter referred to as "ASBE") No. 22 - Recognition and

Accounting policies and specific accounting

Measurement of Financial Instruments ASBE No. 24 - Hedge Accounting ASBE No. 37 - Presentation of Financial Instruments and other relevant

principles for hedging business during the

regulations and guides the Company correspondingly conducted accounting and reporting for foreign exchange derivatives business carried out.reporting period and explanations on

The Company conducted initial and subsequent measurements on contracts of foreign exchange derivatives by held- for-trading financial assets/

whether there have been significant changes

held-for-trading financial liabilities and the fair value for held-for-trading financial assets and held-for-trading financial liabilities is determined by

from the previous reporting period

financial institutions based on trading data of open market. There was no significant changes from the previous reporting period.Explanations on actual gain or loss during

There was a total of RMB41.58 million actual losses during the reporting period.the reporting period

The Company's purpose was to avoid and prevent risks of foreign exchange rate fluctuations and prohibited any speculative actions further

Explanations on the effect of hedging

improving the Company's ability to cope with risks of foreign exchange fluctuations better avoiding and preventing risks of foreign exchange rate

business

fluctuations and enhancing its financial stability.

22Hikvision 2025 Half Year Report

Capital source of derivatives investment The Company's own fund.Risk analysis and control measures

(including but not limited to market risk

For details of the risk analysis and control measures please refer to the Announcement on Carrying out Foreign Exchange Hedging Business in

liquidity risk credit risk operational risk

2025(Announcement No. 2025-015) disclosed by the Company on April 19 2025.

legal risk etc.) of holding derivatives

during the reporting period

Change of market price or fair value of

invested derivatives during the reporting The Company recognized and measured the fair value of derivatives in accordance with the Accounting Standards for Business Enterprises Article

period; specific methods related 22 - Recognition and Measurement of Financial Instruments. During the reporting period a total of RMB80.73 million of losses from changes in

assumptions and parameter setting of the fair value of derivatives were recognized and the fair value is determined according to the exchange rate provided by banks and other pricing service

derivatives’ fair value analysis should be institutions measured and recognized on a monthly basis.disclosed

Prosecution (if applicable) None

Announcement date for approvals of

derivatives investment from the Board of April 19 2025

Directors (if any)

Announcement date for approvals of

derivatives investment from the general Inapplicable

meeting of shareholders (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

23Hikvision 2025 Half Year Report

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 August 2 2025 in 2025 Half Year Report of Hangzhou

EZVIZ Network Co. Ltd. on the website of Shanghai Stock Exchange ( www.sse.com.cn).VII. Disposal of significant assets and equity

1. Disposal of significant assets:

□ Applicable √ Inapplicable

There is no disposal of significant assets for the Company during the current reporting period.

2. Sale of significant equity:

□ Applicable √ Inapplicable

24Hikvision 2025 Half Year Report

VIII. Analysis of major subsidiaries and holding companies

□Applicable √Inapplicable

The Company has no important holding company information that should be disclosed during the current

reporting period.Information about obtaining and disposal of subsidiaries during the reporting period

√ Applicable □ Inapplicable

Equity acquisition and disposal Impact on overall production

Company name

method during the reporting period results

Zhejiang Haishihuayue Digital Technology Ltd. Voting rights change Business development

Guangzhou Hikvision Digital Technology Ltd. Equity acquisition in cash Business development

Hangzhou Micro Imaging Intelligent Control Technology

Equity acquisition in cash Business development

Ltd.Hikvision Kyrgyzstan Limited Liability Company Equity acquisition in cash Expand overseas sales channels

IX. Structural entities controlled by the Company

□ Applicable √ Inapplicable

X. Risks of the Company and risk response solutions

During the reporting period the Company has been striving to identify various risk exposures and actively adopting

mitigation measures to avoid and reduce risks:

(1) Domestic economic transformation risk: Continuous adjustments in fiscal spending and real estate

investment markets the expectation for healthy economic development across society still needs to be

strengthened and trade protectionist policies implemented by some overseas countries pose challenges to

domestic enterprises' export capabilities. The economy remains in the process of structural upgrading.Hikvision leverages AIoT technologies and products to empower economic and societal digital transformation

promoting new productivity development. Meanwhile we flexibly adjust market strategies to address

restrictions imposed by trade protection policies continuously expand into diversified markets to reduce

dependency on any single market and actively cope with the long-term challenges brought by economic

structural transformation.

25Hikvision 2025 Half Year Report

(2) Global economic downside risks: Individual countries intensifying trade protection policies some major

economies experiencing slower growth uneven development across regions and continuous fluctuations in

the macroeconomic environment. The Company diversifies its operational risks across a wide range of business

operations and conducts business according to the specific conditions of each country and region

(3) Geopolitical risks: The global political system is evolving toward a multipolar structure with continuously

declining stability and predictability and ongoing intractable local conflicts. In recent years the Company has

continuously strengthened risk control enhanced response capabilities and adjusted resource allocation based

on the business environment.

(4) Technology upgrading risks: With the rapid development of AI big data IoT cloud computing and other

technologies technological applications are iterating quickly. The Company has some strength in technology

fields such as IoT perception AI and big data and maintains technological iteration through extensive

commercial practices. We closely track updates in cutting-edge technologies and maintain innovation and

expansion of our technical system.

(5) Risks of internal management: The Company's continual business expansion and development of new

products and business services add complexity to internal management posing new challenges to our

management capabilities. The Company accumulates management experience through the development of

systems and procedures with a focus on talent cultivation and construction.

(6) Financial risks caused by customers' reduced ability to pay: The flow of funds in commercial transactions

is affected by the economic environment. The Company’s financial operations are closely tied to the

performance of partners upstream and downstream in the value chain. The Company has accumulated a certain

level of cash reserves through diligent and prudent operations and has relatively low financing costs.Meanwhile it continuously optimizes funds management and improves capital utilization efficiency to ensure

the stability of its cash flow chain.

(7) Legal and compliance risks: The world's multilateral trading system is greatly impacted by politics and

business activities are required to comply with the complex laws and regulations of various regions. The

Company has constantly strengthened the legal compliance system since countries around the world have

stricter requirements for data supervision and legal compliance capabilities. Hikvision continuously enhances

its legal compliance management system strengthens global governance capabilities closely monitors changes

26Hikvision 2025 Half Year Report

in laws and regulations in various countries and improves internal training and risk management to ensure

lawful and compliant business operations in response to the evolving legal environment.

(8) Supply chain risks: Some countries have increasingly used supply chains as a key tool for international

competition and the global supply system has been continuously impacted by geopolitical tensions in recent

years. A large-scale supply chain interruption could impact the stability of The Company’s operations.Hikvision is actively developing a diversified supplier network maintaining reasonable inventory levels and

enhancing the resilience and flexibility of its supply chain. Additionally the Company is improving its ability

to respond to unexpected disruptions through localized production layouts and digital management practices.

(9) Risks of cybersecurity: Computer viruses malware and hacker attacks may still occur potentially

compromising the Company’s systems or products and creating cybersecurity vulnerabilities. The Company

continuously enhances its cybersecurity capabilities improves its defense mechanisms and actively employs

advanced technologies to strengthen product and system security ensuring a stable and reliable network

environment.

(10) Risks of exchange rate fluctuations: The Company operates in multiple countries and regions in overseas

markets and primarily conducts transactions in foreign currencies. Foreign exchange exposures arising from

sales procurement and financing activities objectively exist and currency fluctuations may affect the

Company’s financial performance. The Company prudently utilizes financial instruments to hedge risks and

optimizes foreign currency fund management to mitigate the impact of currency fluctuations on its financial

performance.

(11) Risks of intellectual property (IP) rights: The Company has maintained considerable investment in R&D

and made significant technological achievements. We have also implemented robust IP protection measures.However the risk of IP disputes and infringement still exists.The above-mentioned alerts do not include all the potential risks for the Company. Investors are advised to invest

with caution.XI. 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

27Hikvision 2025 Half Year Report

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

28Hikvision 2025 Half Year Report

Section IV Corporate Governance Environmental and Social

Responsibility

I. Changes of directors supervisors and senior management personnel

□ Applicable √ Inapplicable

There were no changes in the Company's directors supervisors and senior management during the reporting period.For details please refer to the 2024 annual report.II. Profit distribution and capitalizing of capital reserves for the current reporting period

□ Applicable √ Inapplicable

The Company did not plan to distribute cash dividends send bonus shares or convert capital reserve into share

capital during the first half of this year.III. The implementation of an equity incentive plan employee stock incentive plan or other

incentive plans

□ Applicable √ Inapplicable

During the reporting period the Company had no equity incentive plans employee stock incentive plans or other

employee incentive measures and their implementation.IV. The disclosure of environmental information

□ Applicable √ Inapplicable

V. Information of social responsibilities

□ Applicable √ Inapplicable

29Hikvision 2025 Half Year Report

Section V Significant Events

I. Complete and incomplete commitments of the Company and its actual controller

shareholders related parties acquirers and other related parties for the commitments during

the current reporting period.□ Applicable √ Inapplicable

No such case during the current reporting period.II. The Company's funds used by the controlling shareholder or its 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. Engagement and disengagement of the CPA firm

Has the half year report been audited

□ Yes √ No

The Company's half year report has not been audited.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. Explanation given by the Board of Directors regarding the "non-standard auditor's report"

for the prior reporting period

□ Applicable √ Inapplicable

VII. Bankruptcy and restructuring

□ Applicable √ Inapplicable

No such case during the reporting period.

30Hikvision 2025 Half Year Report

VIII. Material litigations

Material litigation and arbitration

□ Applicable √ Inapplicable

The Company had no material litigation or arbitration during the current reporting period.Other litigation matters

□ Applicable √ Inapplicable

IX. Punishments and rectifications

□ Applicable √ Inapplicable

No such case during the reporting period.X. Integrity of the Company and its controlling shareholders and actual controllers

□ Applicable √ Inapplicable

XI. Significant related-party transaction

1. Related-party transactions arising from routine daily operations

√ Applicable □ Inapplicable

31Hikvision 2025 Half Year Report

Pricing Proportion to Approved Whether

Type of Content of Trading amount

principles for the amount trading exceed the Settlement Disclosure DisclosureRelated party Relationship related related （0'000related party of similar quota (0'000 approved method date referencetransaction transaction RMB）transactions transactions. RMB） quota

Under the common

Subsidiaries or

control of the Payment on

research institutes of 103427.88 4.81% 350000.00 No

Company's actual delivery Announcement

CETC

controller. on the forecast

Procurement Both parties

Joint ventures in which of daily related-

receiving agree jointly Payment on April 19

Joint ventures the Company holds Procurement 435.34 0.02% 2000.00 No party

services and based on the delivery 2025

shares transactions in

others market price

Associates in which the Payment on 2025 (No. 2025-

Associates 9957.75 0.46% 62700.00 No

Company holds shares delivery 014)

Refer to note 1 for Payment on

Other related parties 38008.54 1.77% 200400.00 No

details delivery

Under the common

Subsidiaries or

control of the Payment on

research institutes of 6036.86 0.14% 50000.00 No

Company's actual delivery Announcement

CETC Selling

controller on the forecast

commercial Both parties

Joint ventures in which of daily related-

goods agree jointly Payment on April 19

Joint ventures the Company holds Sales 719.81 0.02% 13800.00 No party

providing based on the delivery 2025

shares transactions in

services and market price

Associates in which the Payment on 2025 (No. 2025-

Associates others 933.19 0.02% 15700.00 No

Company holds shares delivery 014)

Refer to note 1 for Payment on

Other related parties 1184.76 0.03% 7500.00 No

details delivery

32Hikvision 2025 Half Year Report

Pricing Proportion to Approved Whether

Type of Content of Trading amount

principles for the amount trading exceed the Settlement Disclosure DisclosureRelated party Relationship related related （0'000related party of similar quota (0'000 approved method date referencetransaction transaction RMB）transactions transactions. RMB） quota

Announcement

on the forecast

Under the common Renting Both parties

Subsidiaries or of daily related-

control of the house from agree jointly Based on April 19

research institutes of Lease - 0.00% 500.00 No party

Company's actual related based on the contract 2025

CETC transactions in

controller parties market price

2025 (No. 2025-

014)

Announcement

on the forecast

Under the common Renting Both parties

Subsidiaries or of daily related-

control of the house to agree jointly Based on April 19

research institutes of Lease 5.63 0.00% 500.00 No party

Company's actual related based on the contract 2025

CETC transactions in

controller parties market price

2025 (No. 2025-

014)

Total 160709.77 - 703100.00

Details on significant sales return None

Total amount of related transactions projected based on

different categories and the actual performance during the Not applicable

current reporting period (if any)

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.

33Hikvision 2025 Half Year 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. Deals with related-party financial companies

√ Applicable □ Inapplicable

Deposit business

Amount incurred

Maximum daily Deposit Total deposit Total amount

Related Opening balance Closing balance

Relationship deposit limit interest amount in the withdrawn in the

party (0000 RMB) (0000 RMB)

(0000 RMB) rate range current period current period

(0000 RMB) (0000 RMB)

Under the

CETC

common control 0.1%-

Finance 1750005.89 400018.37 191698.39 191705.82 400010.94

of the Company's 1.75%

Co. Ltd.actual controller

Loan services

Amount incurred

Loan Total loan Total repayment

Related Loan limit Opening balance Closing balance

Relationship interest amount in the amount in the

party (0000 RMB) (0000 RMB) (0000 RMB)

rate rang current period current period

(0000 RMB) (0000 RMB)

Under the

CETC

common control

Finance 500000.00 2.8% 15000.00 - 15000.00 -

of the Company's

Co. Ltd.actual controller

Credit and other financial business

34Hikvision 2025 Half Year Report

Total amount Actual amount incurred

Related party Relationship Business type

(0000 RMB) (0000 RMB)

Under the common control of Other financial

CETC Finance Co. Ltd 600000.00 234500.00

the Company's actual controller business

Note: 1. The above-mentioned transaction amount refers to the entrusted loan provided by the Company through CETC Finance Co.Ltd to its subsidiary companies during the current year.

2. The Company’s revolving credit facility with CETC Finance Co. Ltd during the current year was no more than RMB 5 billion

(inclusive) with an actual transaction amount of RMB 150 million all of which were loan transactions (see 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

No such case in the reporting period.XII. Significant contracts and their execution

1. Trusteeship contracting and leasing

1.1 Trusteeship

□ Applicable √ Inapplicable

No such case in the reporting period.

1.2 Contracting

□ Applicable √ Inapplicable

No such case in the reporting period.

1.3 Leasing

□ Applicable √ Inapplicable

No such case in the reporting period.

35Hikvision 2025 Half Year Report

2. Significant guarantees

√Applicable □ Inapplicable

Unit: 0000 RMB

Guarantees provided by the Company to its subsidiaries

Guarantee

Disclosure date of for a

Guarantee Actual occurrence Actual guaranteed Type of Expiration date of Fulfilled

Guaranteed party announcement of the related

cap date amount guarantee guarantee or not

guarantee cap party or

not

Hangzhou Hikvision Technology Ltd. April 19 2025 853100.00 Nov 15 2022 228421.79 Joint guarantee May 9 2029 No No

Hangzhou Hikvision System April 19 2025

57000.00 March 23 2021 15450.59 Joint guarantee April 17 2026 No No

Technology Ltd.Hangzhou Hikvision Electronics Ltd. April 19 2025 26500.00 Nov 17 2024 4200.00 Joint guarantee March 31 2026 No No

Nanjing Hikvision Digital Technology April 19 2025

5000.00 June 30 2022 3853.70 Joint guarantee July 31 2025 No No

Ltd.Chongqing Hikvision Technology Ltd. April 19 2025 25000.00 May 10 2024 2100.00 Joint guarantee April 17 2026 No No

Chongqing Hikvision System April 19 2025

2000.00 March 30 2023 173.95 Joint guarantee July 24 2025 No No

Technology Ltd.Urumqi HaiShi Xin'An Electronic April 20 2024

37000.00 March 26 2019 - Joint guarantee January 13 2025 Yes No

Technology Ltd

Luopu HaiShi Ding Xin Electronic April 20 2024

29000.00 March 26 2019 - Joint guarantee March 3 2025 Yes No

Technology Ltd.Pishan HaiShi Yong An Electronic April 20 2024

28000.00 March 26 2019 - Joint guarantee March 27 2025 Yes No

Technology Ltd.Moyu HaiShi Electronic Technology April 20 2024

24000.00 March 26 2019 - Joint guarantee March 27 2025 Yes No

Ltd.

36Hikvision 2025 Half Year Report

Hikvision International Co.Limited April 19 2025 46500.00 Not happened during the reporting period

Wuhan Haorong Technology Ltd April 19 2025 35000.00 Not happened during the reporting period

Xi’an Hikvision Digital Technology April 19 2025

18000.00 Not happened during the reporting period

Ltd.Shijiazhuang Hikvision Technology April 19 2025

12000.00 Not happened during the reporting period

Ltd.HIKVISION TECHNOLOGY PTE. April 19 2025

10000.00 Not happened during the reporting period

LTD.Hikvision Europe B.V. April 19 2025 7800.00 Not happened during the reporting period

Chengdu Hikvision Ditigal Technology April 19 2025

6000.00 Not happened during the reporting period

Ltd.Zhengzhou Hikvision Digital April 19 2025

5000.00 Not happened during the reporting period

Technology Ltd.Zhengzhou Hikvision Technology Ltd. April 19 2025 5000.00 Not happened during the reporting period

Hikvision UK Limited April 19 2025 3900.00 Not happened during the reporting period

Hefei Hikvision Digital Technology April 19 2025

3500.00 Not happened during the reporting period

Ltd.Hikvision Digital Technology April 19 2025

3000.00 Not happened during the reporting period

(Shanghai) Ltd.Fuzhou Hikvision Digital Technology April 19 2025

2500.00 Not happened during the reporting period

Ltd.Nanchang Hikvision Digital April 19 2025

2000.00 Not happened during the reporting period

Technology Ltd.Wuhan Hikvision Technology Ltd. April 19 2025 1000.00 Not happened during the reporting period

Hikvision Italy S.r.l. April 19 2025 800.00 Not happened during the reporting period

37Hikvision 2025 Half Year Report

Total guarantee cap for subsidiaries approved during the reporting Total actual guarantee amount for

1248600.00 subsidiaries during the reporting period 419349.69

period (B1)

(B2)

Total actual guarantee balance for

Total approved guarantee cap for subsidiaries at the end of the

1130600.00 subsidiaries at the end of the reporting 254200.03

reporting period (B3)

period (B4)

Guarantees provided by subsidiaries of the Company to their subsidiaries

Guarantee

Disclosure date of

Guarantee Actual occurrence Actual guaranteed Type of Fulfilled for a

Guaranteed party announcement of the Term of guarantee

cap date amount guarantee or not related

guarantee cap

party or not

Hangzhou Hikrobot Intelligence Ltd. April 19 2025 36000.00 Sep 27 2023 5086.65 Joint guarantee April 17 2026 No No

Hangzhou Haikang Intelligent April 19 2025

5500.00 April 10 2023 1439.93 Joint guarantee February 27 2026 No No

Technology Ltd.Hikrobot Europe B.V. April 19 2025 17000.00 Aug 29 2024 553.33 Joint guarantee July 19 2026 No No

Hangzhou Hikmicro Intelligent April 19 2025

11000.00 Nov 12 2024 450.00 Joint guarantee April 17 2026 No No

Technology Ltd.Hikrobot Korea Limited April 19 2025 5000.00 Not happened during the reporting period

Hikrobot Singapore Pte. Ltd. April 19 2025 1500.00 Not happened during the reporting period

Hikrobot Japan K.K. April 19 2025 1500.00 Not happened during the reporting period

Hangzhou EZVIZ Software Ltd. April 19 2025 400.00 Not happened during the reporting period

Total actual guarantee amount for

Total guarantee cap for subsidiaries approved during the reporting

77900.00 subsidiaries during the reporting period 11066.32

period (C1)

(C2)

Total approved guarantee cap for subsidiaries at the end of the Total actual guarantee balance for

77900.007529.91reporting period (C3） subsidiaries at the end of the reporting

38Hikvision 2025 Half Year Report

period (C4)

The total amount of Company's guarantees (that is the total of the first three items)

Total guarantee cap approved during the reporting period Total actual guarantee amount during

1326500.00430416.01

(A1+B1+C1) the reporting period（A2+B2+C2）

Total actual guarantee balance at the

Total approved guarantee cap at the end of reporting period

1208500.00 end of the reporting period 261729.94

(A3+B3+C3)

（A4+B4+C4）

Portion of the total actual guarantee (A4+B4+C4) amount in net

3.33%

assets of the Company

Of which:

The balance of guarantee for shareholders actual controllers and

-

their affiliates. (D)

Amount of debt guarantees provided directly or indirectly for

239805.40

entities with a liability-to-asset ratio over 70% (E)

Total amount of guarantee exceeding 50% of net assets (F) -

Total guarantee amount of the above-mentioned 3 kinds of

239805.40

guarantees (D+E+F)

39Hikvision 2025 Half Year Report

3. Entrusted financial management

□Applicable √Inapplicable

No such case during the reporting period

4. Other significant contracts

□Applicable √ Inapplicable

The Company has no other significant contracts in the reporting period.XIII. Other significant events

√Applicable □ Inapplicable

1. The controlling shareholder of the Company and the person acting in concert have completed the plan to

increase the Company's shares.On October 18 2024 the Company received a notice from the Company's controlling shareholder China

Electronics Technology HIK Group Co. Ltd. (hereinafter referred to as "CETHIK") and the person acting in concert

with CETHIK CETC Investment Holdings Co. Ltd. (hereinafter referred to as "CETC Investment") that CETHIK

and CETC Investment intended to increase their holdings of the Company's shares by centralized bidding through

Shenzhen Stock Exchange trading system within 6 months from October 19 2024. CETHIK planned to increase

its shareholding with an amount of no less than RMB200 million and no more than RMB300 million and CETC

Investment planned to increase its shareholding with an amount of no less than RMB100 million and no 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.As of the closing on April 8 2025 CETHIK cumulatively increased its shareholding in the Company by

6845600 shares by centralized bidding transactions through Shenzhen Stock Exchange accounting for 0.0741%

of the Company’s total share capital at the time of the increase with a total investment of RMB200182737.28

(excluding transaction fees). By the close of 8 April 2025 CETC Investment cumulatively acquired 3204700

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 RMB100016373.80 (excluding transaction

fees). CETHIK and CETC Investment have completed the plan to increase the Company's shares.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

40Hikvision 2025 Half Year Report

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).

2. The Company's share repurchase plan and its implementation progress.

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 RMB2.50 billion (inclusive)

and shall be no less than RMB2.00 billion (inclusive) with a maximum repurchase price of RMB 406 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 at the time of

the repurchase. 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 transaction fees).As of the market close on July 31 2025 the Company has implemented the share repurchase through the

dedicated securities account for share repurchases via centralized bidding cumulatively repurchasing 62791259

shares which represents 0.6801% of the Company's current total issued share capital. The highest transaction price

was RMB32.70 per share and the lowest transaction price was RMB27.06 per share. The total transaction amount

was RMB1858599601.06 (excluding transaction fees).

6 Due to the implementation of the 2024 dividend distribution the upper limit of the repurchase price has been adjusted to RMB

39.30 per share starting from May 20 2025.

41Hikvision 2025 Half Year Report

The Company strictly complies with regulatory requirements follows lawful procedures and discloses

repurchase progress announcements at the initial share repurchase and 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 Announcement on Share Repurchase Progress disclosed at the beginning of each

month.XIV. Significant events of the Company's subsidiaries

√Applicable □ Inapplicable

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 on March 8 2023. Shenzhen Stock Exchange issed

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 Letter on the Implementation of the Opinions of the Review Center on the Application of

Hangzhou Hikrobot Co. Ltd. for Initial Public Offering of Shares and Listing on the ChiNext board (Inquiry 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 Offering of Shares

and Listing on the ChiNext Board of Hangzhou Hikrobot Co. Ltd. on January 2 2025.

42Hikvision 2025 Half Year Report

Section VI Changes in Shares and Information about Shareholders

I. Changes in share capital

1. Table of changes in share capital

Unit: Share

Changes in the period (+ -)

Before the change 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) 127528512 1.38% -9090564 -9090564 118437948 1.28%

1)State holdings

2)Shares held by State-owned corporate

3) Other domestic shares 127528512 1.38% -9090564 -9090564 118437948 1.28%

Including: held by domestic corporates

held by domestic natural person 127528512 1.38% -9090564 -9090564 118437948 1.28%

4) Foreign shares

Including: held by overseas corporates

held by overseas natural person

2. Shares without restriction 9105669814 98.62% 9090564 9090564 9114760378 98.72%

1) RMB common shares 9105669814 98.62% 9090564 9090564 9114760378 98.72%

2) Domestically listed foreign shares

3) Foreign shares listed overseas

4) Others

3. Total 9233198326 100.00% 0 0 9233198326 100.00%

Reason for the changes in share capital

43Hikvision 2025 Half Year Report

□Applicable √ Inapplicable

Approval for changes in share capital

□Applicable √ Inapplicable

Transfer for changes in share capital

□Applicable √ Inapplicable

Information about the implementation of share repurchase

√Applicable □Inapplicable

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 RMB2.5 billion (inclusive) and shall be no less than RMB2.0 billion (inclusive) with

a maximum repurchase price of RMB40 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 July 31 2025 the Company has implemented the share repurchase through the dedicated securities account for share repurchases via centralized bidding

cumulatively repurchasing 62791259 shares which represents 0.6801% of the Company's current total issued share capital. The highest transaction price was RMB32.70 per share and

the lowest transaction price was RMB27.06per share. The total transaction amount was RMB1858599601.06 (excluding transaction fees).The Company strictly complies with regulatory requirements follows lawful procedures and discloses repurchase progress announcements at the initial share repurchase and 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.The implementation progress of reducing and repurchasing shares by centralized bidding

44Hikvision 2025 Half Year Report

□Applicable √ Inapplicable

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

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

Number of restricted Number of

Number of restricted Number of restricted

shares at the restricted shares at

Name of shareholder shares unlocked shares increased Restriction reasons Unlock date

beginning of the the end of the

during the period during the period

period period

Hu Yangzhong 116997358 0 0 116997358 Restricted shares for senior executives

Xu Peng 28966 0 0 28966 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 199425 0 0 199425 Restricted shares for senior executives

Guo Xudong 38355 0 0 38355 Restricted shares for senior executives

According to the relevant

Xu Ximing 110925 0 0 110925 Restricted shares for senior executives provisions of shares

management for directors

Huang Fanghong 299625 0 0 299625 Restricted shares for senior executives

supervisors and senior

Jin Yan 188250 0 0 188250 Restricted shares for senior executives executives

Cai Changyang 82125 0 0 82125 Restricted shares for senior executives

Qu Liyang 15750 15750 0 0 Restricted shares for senior executives

Wu Weiqi 8685789 8685789 0 0 Restricted shares for senior executives

Xu Lirong 303000 303000 0 0 Restricted shares for senior executives

Jin Duo 109500 109500 0 0 Restricted shares for senior executives

Bi Huijuan 236100 59025 0 177075 Restricted shares for senior executives

Total 127611012 9173064 0 118437948 -- --

45Hikvision 2025 Half Year Report

Note: The Company has completed the re-election process by August 2 2024 and Qu Liyang Wu Weiqi Xu Lirong and Jin Duo have reached the end of their terms and left their

positions for more than 6 months. Bi Huijuan resigned from her executive position on October 25 2024 and has also been out of office for more than 6 months. According to the relevant

rules on share lock-up for directors supervisors and senior management the shares held by the aforementioned individuals are now partially or fully unlocked from restrictions.II. Issuance and listing of securities

□Applicable √ Inapplicable

There were no securities issues during the reporting period

III. Total number of shareholders and their shareholdings

Unit: Share

Total number of common shareholders at the end of the Total number of preferred shareholders with voting rights restored at the end of the

4139330

reporting period current reporting period (if any)

Particulars about shares held by common shareholders with a shareholding percentage over 5% or the Top 10 of them (Excludes shares lent through refinancing)

Share-

Total number of Increase/ The number of The number of shares Pledged marking or frozen

holding

Name of shareholder Nature of shareholder shares at the end of

percentage decrease during the

shares with trading without trading

Shares'

the reporting period reporting period restrictions restrictions Amount (%) Status

China Electronics Technology State-owned

37.01% 3416996509 6845600 0 3416996509 Pledged 50000000

HIK Group Co. Ltd. corporation

Gong Hongjia Overseas individual 10.42% 962504814 0 0 962504814 Pledged 249668200

Hangzhou Weixun Equity Domestic

Investment Partnership non-state-owned 4.88% 450795176 0 0 450795176 Pledged 14000000

(Limited Partnership) corporation

Shanghai Perseverance Asset

Management Partnership

(Limited Partnership) - Other 3.66% 338000000 -47950050 0 338000000 - -

Perseverance Adjacent

Mountain 1 Yuanwang Fund

CETC Investment Holdings

State-owned corporation 2.69% 248366268 2882100 0 248366268 -

Co. Ltd.Hangzhou Pukang Equity Domestic

Investment Partnership non-state-owned 1.98% 182510174 0 0 182510174 Pledged 56790000

(Limited Partnership) corporation

The 52nd Research Institute at

State-owned

China Electronics Technology 1.96% 180775044 0 0 180775044 - -

corporation

Group Corporation

46Hikvision 2025 Half Year Report

Hu Yangzhong Domestic Individual 1.69% 155996477 0 116997358 38999119 - -

Industrial and Commercial

Bank of China Co. Ltd. -

Huatai Pinebridge CSI 300 Overseas corporation 0.71% 65941856 2090000 0 65941856 - -

ETF Securities Investment

Fund

Central Huijin Investment Co.State-owned corporation 0.70% 64700691 0 0 64700691 - -

Ltd.Among the above shareholders China Electronics Technology HIK Group Co. 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 concerted actions

Investment Partnership (Limited Partnership) are acting-in-concert parties. Mr. Hu Yangzhong and Hangzhou Weixun Equity Investment Partnership

among the above-mentioned shareholders:

(Limited Partnership) are acting-in-concert parties. Except for these the Company does not know whether the other shareholders are related parties

or whether they are acting-in-concert parties in accordance with the Administrative Measures for Acquisitions of Listed Companies.Particulars about shares held by the Top 10 shareholders holding shares that are not subject to trading restriction

(Excludes loaned shares through refinancing and lock-up shares of senior executives)

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. 3416996509 RMB common shares 3416996509

Gong Hongjia 962504814 RMB common shares 962504814

Hangzhou Weixun Equity Investment Partnership (Limited Partnership) 450795176 RMB common shares 450795176

Shanghai Perseverance Asset Management Partnership (Limited Partnership) - Perseverance

338000000 RMB common shares 338000000

Adjacent Mountain 1 Yuanwang Fund

CETC Investment Holdings Co. Ltd. 248366268 RMB common shares 248366268

Hangzhou Pukang Equity Investment Partnership (Limited Partnership) 182510174 RMB common shares 182510174

The 52nd Research Institute at China Electronics Technology Group Corporation. 180775044 RMB common shares 180775044

Industrial and Commercial Bank of China Co. Ltd. - Huatai Pinebridge CSI

65941856 RMB common shares 65941856

300 ETF Securities Investment Fund

Central Huijin Investment Co. Ltd. 64700691 RMB common shares 64700691

China Construction Bank Corporation - E Fund CSI 300 ETF Securities Investment Fund

46914328 RMB common shares 46914328

(Initiated Type)

47Hikvision 2025 Half Year Report

Explanation on associated relationship and concerted actions Among the above shareholders China Electronics Technology HIK Group Co. Ltd. CETC Investment Holdings Co. Ltd. and the 52nd Research

top ten common shareholders holding shares without trading Institute at China Electronics Technology Group Corporation are acting-in-concert parties. Mr. Gong Hongjia and Hangzhou Pukang Equity

restrictions and among top ten shareholders and top ten Investment Partnership (Limited Partnership) are acting-in-concert parties. Mr. Hu Yangzhong and Hangzhou Weixun Equity Investment Partnership

common shareholders holding shares without trading (Limited Partnership) are acting-in-concert parties. Except for these the Company does not know whether the other shareholders are related parties

restrictions or whether they are acting-in-concert parties in accordance with the Administrative Measures for Acquisitions of Listed Companies.As of the end of the reporting period among the top 10 non-restricted shareholders there exists a buyback account: "Hikvision Digital Technology

Special note on the presence of a buy-back account among the

Co. Ltd. Buyback Special Securities Account". The company’s buyback special securities account holds 62418859 shares of the company

Top 10 non-restricted shareholders.accounting for 0.68% of the total share capital of the company as of the end of the reporting period.Shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participate in the lending of shares in the refinancing

business

□Applicable √Inapplicable

Changes of the top 10 shareholders and the top 10 shareholders that are not subject to trading restriction compared with the previous period due to refinancing lending/repayment issues

□ 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

□ Applicable √ Inapplicable

No such case during the current reporting period.IV. Shareholding changes of directors supervisors senior management personnel

√ Applicable □ Inapplicable

Number of

Shares Number of Number of

Shares Shares held at restricted

Shares held at the decreased restricted stocks restricted

increased during the end of the stocks granted

Tenure beginning of the during the granted at the stocks granted

Name Title the current current at the end of the

status current reporting current beginning of the in the current

reporting period reporting period current

period (shares) reporting period current reporting reporting

(shares) (shares) reporting

(shares) period (shares) period (shares)

period (shares)

Hu Yangzhong Chairman Incumbent 155996477 0 0 155996477 0 0 0

Fu Baijun Director Incumbent 0 0 0 0 0 0 0

Xu Lixing Director Incumbent 0 0 0 0 0 0 0

Xu Peng Director and General Manager Incumbent 38622 0 0 38622 0 0 0

Wang Qiuchao Director Incumbent 35000 0 0 35000 0 0 0

Wu Xiaobo Independent Director Incumbent 0 0 0 0 0 0 0

48Hikvision 2025 Half Year Report

Number of

Shares Number of Number of

Shares Shares held at restricted

Shares held at the decreased restricted stocks restricted

increased during the end of the stocks granted

Tenure beginning of the during the granted at the stocks granted

Name Title the current current at the end of the

status current reporting current beginning of the in the current

reporting period reporting period current

period (shares) reporting period current reporting reporting

(shares) (shares) reporting

(shares) period (shares) period (shares)

period (shares)

Hu Ruimin Independent Director Incumbent 0 0 0 0 0 0 0

Lv Changjiang Independent Director Incumbent 0 0 0 0 0 0 0

Tan Xiaofen Independent Director Incumbent 0 0 0 0 0 0 0

Lu Jianzhong Supervisor Chairman Incumbent 0 0 0 0 0 0 0

Huang Xing Supervisor Incumbent 0 0 0 0 0 0 0

Pan Jia Employee Supervisor Incumbent 54625 0 0 54625 0 0 0

He Hongli Senior Deputy General Manager Incumbent 331500 0 0 331500 0 0 0

Pu Shiliang Senior Deputy General Manager Incumbent 265900 0 0 265900 0 0 0

Guo Xudong Senior Deputy General Manager Incumbent 51140 0 0 51140 0 0 0

Xu Ximing Senior Deputy General Manager Incumbent 147900 0 0 147900 0 0 0

Chen Junke Senior Deputy General Manager Incumbent 0 0 0 0 0 0 0

Huang Fanghong Senior Deputy General Manager Incumbent 399500 0 0 399500 0 0 0

Senior Deputy General Manager

Jin Yan Incumbent 251000 0 0 251000 0 0 0

and Person in Charge of Finance

Cai Changyang Senior Deputy General Manager Incumbent 109500 0 0 109500 0 0 0

Senior Deputy General Manager

Feng Wei Incumbent 0 0 0 0 0 0 0

and Board Secretary

Total -- -- 157681164 0 0 157681164 0 0 0

Note 1: Number shares held at the beginning of the period shares increased during the period shares decreased during the period for directors supervisors and senior management personnel above are all shares

directly held by them accordingly.V. Changes in controlling shareholders or actual controllers

Change of the controlling shareholder during the reporting period

□ Applicable √ Inapplicable

The Company's controlling shareholder has not changed during the reporting period.Change of the actual controller during the reporting period

□ Applicable √ Inapplicable

No such change during the reporting period.

49Hikvision 2025 Half Year Report

VI. Information of Preferred Shares

□ Applicable √ Inapplicable

There is no preferred share existed for the Company during the current reporting period.

50Hikvision 2025 Half Year Report

Section VII Bonds

□ Applicable √ Inapplicable

51Hikvision 2025 Half Year Report

Section VIII Financial Report

Audit report

Whether audit has been performed on the half year report

□ Yes √ No

The Company's 2025 Half Year Report has not been audited

52Hikvision 2025 Half Year Report

On June 30 2025

Consolidated Balance Sheet

Unit: RMB

Item Notes On June 30 2025 On December 31 2024

Current Assets:

Cash and bank balances (V)1 31286076526.36 36271488337.03

Derivative financial assets (V)2 25600.00 26775923.93

Notes receivable (V)3 2418540558.05 2722596142.46

Accounts receivable (V)4 34838491117.63 37910128735.42

Receivables for financing (V)6 2249443298.00 2291648244.05

Prepayments (V)7 620080202.34 664602593.01

Other receivables (V)8 447648290.70 531344606.50

Inventories (V)9 19124924891.72 19110711958.11

Contract assets (V)5 916055435.78 985822785.69

Non-current assets due within one year (V)10 755509234.02 894327647.82

Other current assets (V)11 1313157836.09 1071066653.10

Total Current Assets 93969952990.69 102480513627.12

Non-current Assets:

Long-term receivables (V)12 303911420.46 380453188.09

Long-term equity investment (V)13 1491371496.71 1527223390.79

Other non-current financial assets (V)14 514607935.55 472000082.76

Fixed assets (V)15 16883791179.01 15063752296.49

Construction in progress (V)16 4007765610.39 4699473381.21

Right-of-use assets (V)17 465741605.70 530138023.79

Intangible assets (V)18 1868610859.97 1828287135.99

Goodwill (V)19 312877102.51 312165129.29

Long-term deferred expenses (V)20 142041346.64 162841758.91

Deferred tax assets (V)21 2318790171.33 2206191157.06

Other non-current assets (V)22 2135303562.16 2353160984.64

Total Non-current Assets 30444812290.43 29535686529.02

Total Assets 124414765281.12 132016200156.14

53Hikvision 2025 Half Year Report

On June 30 2025

Consolidated Balance Sheet-continued

Unit: RMB

Item Notes On June 30 2025 On December 31 2024

Current Liabilities:

Short-term borrowings (V)24 1530631987.86 1031895812.62

Derivative financial liabilities (V)25 55839882.40 1874341.64

Notes payable (V)26 552245205.69 1197128746.56

Accounts payable (V)27 15820376447.17 20185303107.69

Contract liabilities (V)28 3380938673.00 3353943054.24

Payroll payable (V)29 4933259903.09 5666415834.10

Taxes payable (V)30 1567672499.01 1535936096.02

Other payables (V)31 3348369395.60 3528359044.48

Including: dividends payable (V)31.2 19882185.64 186793.11

Non-current liabilities due within one year (V)32 4058425783.08 767030688.91

Other current liabilities (V)33 329937625.83 377117275.65

Total Current Liabilities 35577697402.73 37645004001.91

Non-current Liabilities:

Long-term borrowings (V)34 1227788621.45 5119185000.00

Lease liabilities (V)35 316505423.75 375432749.68

Long-term payables 9783791.48 9780220.80

Provisions (V)36 354066140.77 305250049.71

Deferred income (V)37 844220403.74 874512073.53

Deferred tax liabilities (V)21 132413747.69 112711363.52

Other non-current liabilities (V)38 143410893.98 74029948.84

Total Non-current Liabilities 3028189022.86 6870901406.08

Total Liabilities 38605886425.59 44515905407.99

Owners' Equity

Share capital (V)39 9233198326.00 9233198326.00

Capital reserves (V)40 6243380907.40 6181644265.06

Less: Treasury shares (V)41 1848531198.07 310044296.12

Other comprehensive income (V)42 21828827.70 (111510486.21)

Surplus reserves (V)43 4715460312.00 4715460312.00

Retained earnings (V)44 60187021251.83 60959912942.15

Total owners' equity attributable to owner of the

78552358426.8680668661062.88

Company

Minority equity 7256520428.67 6831633685.27

Total Owners' Equity 85808878855.53 87500294748.15

Total Liabilities and Owners' Equity 124414765281.12 132016200156.14

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

54Hikvision 2025 Half Year Report

On June 30 2025

Balance Sheet of the Parent Company

Unit: RMB

Item Notes On June 30 2025 On December 31 2024

Current Assets:

Cash and bank balances 20405120468.61 22813537991.27

Notes receivable 199891296.78 226470150.02

Accounts receivable (XVI)1 26160985643.47 25733620869.95

Receivables for financing 63196150.82 50535530.46

Prepayments 273941767.43 234363667.93

Other receivables (XⅥ)2 5071965721.54 4405567174.71

Inventories 141893198.60 143812782.98

Contract assets 21683662.66 18901004.71

Non-current assets due within one year 80763649.68 106879332.17

Other current assets 1740545483.62 1720538797.37

Total Current Assets 54159987043.21 55454227301.57

Non-current Assets:

Long-term accounts receivable 1106324651.42 1204913267.41

Long-term equity investment (XⅥ)3 9328801678.13 9486970485.01

Other non-current financial assets 344737970.55 307130117.76

Fixed assets 3525904179.91 3415196347.85

Construction in progress 129394409.75 79844913.85

Right-of-use assets 74589976.67 84298386.18

Intangible assets 496821157.52 173965691.99

Long-term deferred expenses 29239644.50 37381601.80

Deferred tax assets 297578623.34 298084602.58

Other non-current assets 46074293.25 62355873.60

Total Non-current Assets 15379466585.04 15150141288.03

Total Assets 69539453628.25 70604368589.60

55Hikvision 2025 Half Year Report

On June 30 2025

Balance Sheet of the Parent Company - continued

Unit: RMB

Item Notes On June 30 2025 On December 31 2024

Current Liabilities:

Short-term borrowings 1000550750.00 200075833.33

Accounts payable 1135257088.96 1184469965.39

Contract liabilities 214302254.52 191877808.28

Payroll payable 2732509887.92 3247226282.17

Taxes payable 907314615.41 574239387.19

Other payables 2101774356.37 635628127.73

Non-current liabilities due within one year 1550203279.15 210197535.44

Other current liabilities 37357392.01 44720937.37

Total Current Liabilities 9679269624.34 6288435876.90

Non-current Liabilities:

Long-term borrowings 499000000.00 1827000000.00

Lease liabilities 39298983.40 46955785.74

Provisions 110428595.79 107030168.03

Deferred income 332335257.24 365813574.47

Total Non-current Liabilities 981062836.43 2346799528.24

Total Liabilities 10660332460.77 8635235405.14

Owners' Equity

Share capital 9233198326.00 9233198326.00

Capital reserves 3879711222.49 3849752890.09

Less: Treasury shares 1848531198.07 310044296.12

Surplus reserves 4715460312.00 4715460312.00

Retained earnings 42899282505.06 44480765952.49

Total Owners' Equity 58879121167.48 61969133184.46

Total Liabilities and Owners' Equity 69539453628.25 70604368589.60

56Hikvision 2025 Half Year Report

For the reporting period from January 1 2025 to June 30 2025

Consolidated Income Statement

Unit: RMB

Amount for the

Amount for the

Item Notes prior period

current period

(restated)

I. Total Revenue (V)45 41818040088.44 41209096206.36

Less: Total operating costs (V)45 22919499439.04 22732341841.73

Business taxes and surcharges (V)46 378912693.73 359300410.42

Selling expenses 5708759811.30 5473891751.46

Administrative expenses 1386257017.69 1464347813.80

Research and Development (R&D) expenses 5669772011.51 5698043754.07

Financial expenses (V)47 (739368414.40) (250188701.72)

Including: Interest expenses 107112248.08 251713545.47

Interest income 281621810.18 617390094.88

Add: Other income (V)48 1180671233.88 1234679673.52

Investment income (losses) (V)49 (36631451.99) (104162185.92)

Including: Investment gains (losses) in associated enterprise

4673722.38(78368251.31)

and joint-venture enterprise

Termination recognition gains (losses) on financial assets

49420.00-

measured at amortized cost

Gains (losses) from changes in fair values (V)50 (43117443.33) 50389142.62

Credit impairment gains (losses) (V)51 (378694171.37) (419420246.23)

Impairment gains (losses) of assets (V)52 (208566206.64) (204108927.43)

Asset disposal income (losses) 7386351.06 (11772875.69)

II. Operating Profit 7015255841.18 6276963917.47

Add: Non-operating income (V)53 32957197.92 36803721.87

Less: Non-operating expenses (V)54 7322434.53 12247046.91

III. Profit Before Taxes 7040890604.57 6301520592.43

Less: Income tax expenses (V)55 759413973.74 660855881.81

IV. Net Profit 6281476630.83 5640664710.62

4.1 Classification by continuous operation

(a) Net profit on continuous operation 6281476630.83 5640664710.62

(b) Net loss on terminated operation - -

4.2 Classification by attribution of ownership

(a) Net profit attributable to owners of parent company 5657349798.68 5064118857.29

(b) Profit or loss attributable to minority interests 624126832.15 576545853.33

V. Other Comprehensive Income Net of Income Tax (V)42 200301615.25 (97804683.71)

Other comprehensive income attributable to owners of the

133339313.91(44500963.60)

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

133339313.91(44500963.60)

loss in subsequent periods

1. Exchange differences arising on conversion of financial

133339313.91(44500963.60)

statements denominated in foreign currencies

57Hikvision 2025 Half Year Report

Amount for the

Amount for the

Item Notes prior period

current period

(restated)

Other comprehensive income attributable to minority interests net

66962301.34(53303720.11)

of tax

VI. Total Comprehensive Income 6481778246.08 5542860026.91

Total comprehensive income attributable to owners of the parent

5790689112.595019617893.69

company

Total comprehensive income attributable to minority interests 691089133.49 523242133.22

VII. Earnings Per Share

(I) Basic earnings per share (RMB/share) (XVII)2 0.615 0.539

(II) Diluted earnings per share (RMB/share) (XⅦ)2 0.615 0.539

58Hikvision 2025 Half Year Report

For the reporting period from January 1 2025 to June 30 2025

Income statement of the parent company

Unit: RMB

Amount for the

Amount for the

Item Notes prior period

current period

(restated)

I. Total Revenue (XVI)4 10918172590.70 10889673181.86

Less: Total operating costs (XⅥ)4 1761451025.61 1895817748.51

Business taxes and surcharges 127709740.15 129252038.04

Selling expenses 1584703807.43 1923983188.09

Administrative expenses 341696756.42 393153953.37

Research and development (R&D) expenses 3038343230.98 3192983560.32

Financial expenses (121288497.66) (392850941.84)

Including: Interest expenses 35147253.23 101425072.09

Interest income 144754417.42 467654103.79

Add: Other income 777572208.70 732986740.12

Investment income (XⅥ)5 338412218.62 181907046.48

Including: Investment gains (losses) in associated enterprise

1486825.45(74947950.25)

and joint-venture enterprise

Gains (losses) from changes in fair values 37607852.79 12581839.26

Credit impairment gains (losses) (4572299.45) (61208801.49)

Impairment gains (losses) of assets (3960333.90) (404775.02)

Asset disposal income (losses) 10564493.15 (5767598.87)

II. Operating Profit 5341180667.68 4607428085.85

Add: Non-operating income 5545382.36 6163369.20

Less: Non-operating expenses 1370006.75 547316.92

III. Profit Before Taxes 5345356043.29 4613044138.13

Less: Income tax expenses 496598001.72 376960164.61

IV. Net Profit 4848758041.57 4236083973.52

V. Other Comprehensive Income Net of Income Tax - -

VI. Total Comprehensive Income 4848758041.57 4236083973.52

59Hikvision 2025 Half Year Report

For the reporting period from January 1 2025 to June 30 2025

Consolidated Cash Flow Statement

Unit: RMB

Amount for the Amount for the

Item Notes

current period prior period

I. Cash Flows from Operating Activities:

Cash received from sale of goods or rendering of services 49701456543.93 43685841357.81

Receipts of tax refunds 2107945151.93 1923827807.30

Other cash receipts relating to operating activities (V)56(1) 812956336.79 1081675311.98

Sub-total of cash inflows from operating activities 52622358032.65 46691344477.09

Cash payments for goods purchased and services received 30095263185.08 29083745897.22

Cash paid to and on behalf of employees 10757613386.80 11179470547.06

Payments of various types of taxes 3064520777.31 3144916924.84

Other cash payments relating to operating activities (V)56(1) 3361941045.57 3472847148.87

Sub-total of cash outflows from operating activities 47279338394.76 46880980517.99

Net Cash Flows from Operating Activities (V)57(1) 5343019637.89 (189636040.90)

II. Cash Flows from Investing Activities:

Cash receipts from recovery of investments 2065280790.61 1448420444.02

Cash receipts from investment income 49248130.84 -

Net cash receipts from disposals of fixed assets intangible assets and

35758008.994440202.05

other long-term assets

Other cash receipts relating to investing activities (V)56(2) 58311055.86 43213496.63

Sub-total of cash inflows from investing activities 2208597986.30 1496074142.70

Cash payments to acquire or construct fixed assets intangible assets

1977761423.321918115772.39

and other long-term assets

Cash paid to acquire investments 2109648712.07 1481184774.81

Sub-total of cash outflows from investing activities 4087410135.39 3399300547.20

Net Cash Flows from Investing Activities (1878812149.09) (1903226404.50)

III. Cash Flows from Financing Activities:

Cash receipts from borrowings 2498536695.29 5056939782.59

Sub-total of cash inflows from financing activities 2498536695.29 5056939782.59

Cash repayments of borrowings 2608183590.81 6769443615.22

Cash payments for distribution of dividends or profits or settlement of

6798273559.098770143921.98

interest expenses

Including: Dividends and profits paid by subsidiaries to minority

276437692.96227685337.21

shareholders

Other cash payments relating to financing activities (V)56(3) 1642655475.56 2877677608.10

Sub-total of cash outflows from financing activities 11049112625.46 18417265145.30

Net Cash Flows from Financing Activities (8550575930.17) (13360325362.71)

IV. Effect of Foreign Exchange Rate Changes on Cash and Cash

31873905.87(20581446.24)

Equivalents

V. Net Increase (Decrease) in Cash and Cash Equivalents (V)57(1) (5054494535.50) (15473769254.35)

Add: Opening balance of cash and cash equivalents (V)57(3) 36053042380.29 49427967355.78

VI. Closing Balance of Cash and Cash Equivalents (V)57(3) 30998547844.79 33954198101.43

60Hikvision 2025 Half Year Report

For the reporting period from January 1 2025 to June 30 2025

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 11805102023.42 5802621350.99

Receipts of tax refunds 588786958.46 640459310.31

Other cash receipts relating to operating activities 353492572.20 762033834.24

Sub-total of cash inflows from operating activities 12747381554.08 7205114495.54

Cash payments for goods acquired and services received 2146780185.63 2531474071.63

Cash payments to and on behalf of employees 4211903114.69 4767733359.12

Payments of various types of taxes 1244789824.01 1618060086.39

Other cash payments relating to operating activities 1651056892.77 2889471304.92

Sub-total of cash outflows from operating activities 9254530017.10 11806738822.06

Net Cash Flows from Operating Activities 3492851536.98 (4601624326.52)

II. Cash Flows from Investing Activities:

Cash receipts from recovery of investments 2480000000.00 2614000000.00

Cash receipts from investment income 386558613.54 204500079.51

Net cash receipts from disposals of fixed assets intangible assets and

31773549.41593172.97

other long-term assets

Other cash receipts relating to investing activities 34938498922.64 35687843665.65

Sub-total of cash inflows from investing activities 37836831085.59 38506936918.13

Cash payments to acquire or construct fixed assets intangible assets and

738537831.04293896986.69

other long-term assets

Cash payments to acquire investments 2363300000.00 2370752620.00

Other cash payments relating to investing activities 35005948843.50 33804567230.17

Sub-total of cash outflows from investing activities 38107786674.54 36469216836.86

Net Cash Flows from Investing Activities (270955588.95) 2037720081.27

III. Cash Flows from Financing Activities

Cash receipts from borrowings 829010000.00 1241000000.00

Other cash receipts relating to financing activities 10037423571.45 6653381408.49

Sub-total of cash inflows from financing activities 10866433571.45 7894381408.49

Cash repayments of borrowings 11010000.00 2138781600.00

Cash payments for distribution of dividends or profits or settlement of

6457105400.288397792104.62

interest expenses

Other cash payments relating to financing activities 10030085125.15 8053515462.64

Sub-total of cash outflows from financing activities 16498200525.43 18590089167.26

Net Cash Flows from Financing Activities (5631766953.98) (10695707758.77)

IV. Effect of Foreign Exchange Rate Changes on Cash and Cash

1537782.08(1262457.91)

Equivalents

V. Net Increase (Decrease) in Cash and Cash Equivalents (2408333223.87) (13260874461.93)

Add: Opening balance of cash and cash equivalents 22790271523.04 36354702554.38

VI. Closing Balance of Cash and Cash Equivalents 20381938299.17 23093828092.45

61Hikvision 2025 Half Year Report

For the reporting period from January 1 2025 to June 30 2025

Consolidated Statement of Changes in Owners' Equity

Unit: RMB

Amount for the first half of 2025

Owner's equity attributable to the parent company

Items Minority

Less: Treasury Other comprehensive Total owners' equity

Share capital Capital reserves Surplus reserve Retained earnings interests

share income

I. Opening Balance of the

9233198326.006181644265.06310044296.12(111510486.21)4715460312.0060959912942.156831633685.2787500294748.15

Current Period

II. Increase or Decrease in the

-61736642.341538486901.95133339313.91-(772891690.32)424886743.40(1691415892.62)

Current Period

(I) Total comprehensive income - - - 133339313.91 - 5657349798.68 691089133.49 6481778246.08

(II) Owners' contributions and

-61736642.341538486901.95---29110665.46(1447639594.15)

reduction in capital

1. Capital contribution from

--------

shareholders

2. Share-based payment

-41311523.21----15319808.8756631332.08

recognized in owners' equity

3. Others - 20425119.13 1538486901.95 - - - 13790856.59 (1504270926.23)

(III) Profit distribution - - - - - (6430241489.00) (295313055.55) (6725554544.55)

1. Transfer to surplus reserves - - - - - - - -

2. Distributions to shareholders - - - - - (6430241489.00) (295313055.55) (6725554544.55)

III. Closing Balance of the

9233198326.006243380907.401848531198.0721828827.704715460312.0060187021251.837256520428.6785808878855.53

Current Period

Amount for the first half of 2024

Owner's equity attributable to the parent company

Items Minority

Less: Treasury Other comprehensive Total owners' equity

Share capital Capital reserves Surplus reserve Retained earnings interests

share income

I. Opening Balance of the

9330600931.007864903763.522737987226.5544667516.164715460312.0057136620244.015809346337.7782163611877.91

Current Period

II. Increase or Decrease in the

-688001923.02(87662344.50)(44500963.60)-(3333421980.61)386152677.85(2216105998.84)

Current Period

(I) Total comprehensive income - - - (44500963.60) - 5064118857.29 523242133.22 5542860026.91

(II) Owners' contributions and

-688001923.02----49160544.63737162467.65

reduction in capital

1. Capital contribution from

--------

shareholders

2. Share-based payment

-672863123.68----59662030.85732525154.53

recognized in owners' equity

3. Others - 15138799.34 - - - - (10501486.22) 4637313.12

(III) Profit distribution - - (87662344.50) - - (8397540837.90) (186250000.00) (8496128493.40)

1. Transfer to surplus reserves - - - - - - - -

2. Distributions to shareholders - - (87662344.50) - - (8397540837.90) (186250000.00) (8496128493.40)

III. Closing Balance of the

9330600931.008552905686.542650324882.05166552.564715460312.0053803198263.406195499015.6279947505879.07

Current Period

62Hikvision 2025 Half Year Report

For the reporting period from January 1 2025 to June 30 2025

Statement of Changes in Owners' Equity of the Parent Company

Unit: RMB

Amount for the first half of 2025

Item

Share capital Capital reserves Less: Treasury share Surplus reserve Retained earnings Total owners' equity

I. Opening Balance of the Current Period 9233198326.00 3849752890.09 310044296.12 4715460312.00 44480765952.49 61969133184.46

II. Increase or Decrease in the Current Period - 29958332.40 1538486901.95 - (1581483447.43) (3090012016.98)

(I) Total comprehensive income - - - - 4848758041.57 4848758041.57

(II) Owners' contributions and reduction in capital - 29958332.40 1538486901.95 - - (1508528569.55)

1. Owners' contributions in capital - - - - - -

2. Share-based payment recognized in owners' equity - 11502722.66 - - - 11502722.66

3. Others - 18455609.74 1538486901.95 - - (1520031292.21)

(III) Profit distribution - - - - (6430241489.00) (6430241489.00)

1. Distributions to shareholders - - - - (6430241489.00) (6430241489.00)

III. Closing Balance of the Current Period 9233198326.00 3879711222.49 1848531198.07 4715460312.00 42899282505.06 58879121167.48

Amount for the first half of 2024

Item

Share capital Capital reserves Less: Treasury share Surplus reserve Retained earnings Total owners' equity

I. Opening Balance of the Current Period 9330600931.00 5776371174.04 2737987226.55 4715460312.00 43150159133.80 60234604324.29

II. Increase or Decrease in the Current Period - 613640640.99 (87662344.50) - (4161456864.38) (3460153878.89)

(I) Total comprehensive income - - - - 4236083973.52 4236083973.52

(II) Owners' contributions and reduction in capital - 613640640.99 - - - 613640640.99

1. Owners' contributions in capital - - - - - -

2. Share-based payment recognized in owners' equity - 600198684.30 - - - 600198684.30

3. Others - 13441956.69 - - - 13441956.69

(III) Profit distribution - - (87662344.50) - (8397540837.90) (8309878493.40)

1. Distributions to shareholders - - (87662344.50) - (8397540837.90) (8309878493.40)

III. Closing Balance of the Current Period 9330600931.00 6390011815.03 2650324882.05 4715460312.00 38988702269.42 56774450445.40

63Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 scope of the Company and its subsidiaries (hereinafter referred to as "the Group") include

manufacturing and selling security equipment network equipment and smart devices; manufacturing and wholesaling

automotive parts and accessories; selling electronic products; providing construction engineering services; 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 and consolidated financial reports were approved for issuance by the 6th meeting of the 6th session of the

Board of Directors of the Company on August 1 2025.II. Basis of preparation of financial statements

Basis of preparation of financial statements

The Group has 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 June 30 2025 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.

64Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Bookkeeping base and valuation principles

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 Disclosure:

65Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

The Group has established specific accounting policies and estimates based on the actual production and operational

characteristics targeting the determination methods and selection basis for the materiality standard provision for credit

losses on accounts receivable inventory write-down fixed asset depreciation and revenue recognition. The important

judgments and accounting estimates applied by the Group in recognizing significant accounting policies as well as their

key assumptions are detailed in Note Ⅲ (35) of the financial statements.

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 the Company's and

consolidated financial position as of June 30 2025 the Company's and consolidated results of operations the Company's

and consolidated changes in shareholders' equity and the Company's and consolidated cash flows for the first half of 2025

truly and completely.

2. Accounting period

The Group has adopted the calendar year as its accounting year from January 1 to December 31 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's 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 receivables 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 at the end of the reporting period

66Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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. Accounting treatment methods for business combinations under common control and non-common control

Business combinations are divided into those under common control and those not 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 ultimately 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 book value as recorded by the combining entities at

the date of the combination. The difference between the book value of the net assets obtained and the book value 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 involving enterprises under non-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 ultimately 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 in stages 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

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.

67Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 methods for preparing 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.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.

68Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 is 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 book value 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.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

69Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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

qualifies 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.

70Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 period and the actual amount of the prior period 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.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 are reclassified to profit or loss under current period.

11. Financial instruments

71Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 account balance 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.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

72Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 and 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 receivables 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 merger

not under common 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

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.

73Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 account balance 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 account balance 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

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

74Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 operating 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

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

75Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.

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.

76Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 assets 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 account

balance 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:

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 account balance 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

77Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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

78Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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

79Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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

80Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 foreign exchange option contract and interest rate swap contract

etc. 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

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 book value and the fair value is recognized in other comprehensive income.

12. Notes receivables

12.1 Combination category and determination basis of bad debt provision according to credit risk characteristics

81Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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

82Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 by their nature and determines credit losses on a portfolio basis.

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

83Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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 book 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.

84Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.

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.

85Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

account balance 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

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

86Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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 book value is

recognized in profit or loss for the period.

19. Fixed assets

87Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

19.1 Recognition criteria for fixed assets

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 book value 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:

Residual value rate Annual depreciation rate

Class Depreciation method Depreciation period

(%)(%)

Buildings and constructions Straight-line depreciation 20 years 10 4.5

General-purpose equipment Straight-line depreciation 3-5 years 10 18.0-30.0

Special-purpose equipment Straight-line depreciation 3-5 years 10 18.0-30.0

Means of transportation Straight-line depreciation 5 years 10 18.0

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

disposal of the asset net of the book value 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.

88Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 and reached

Buildings and Constructions

a state of practical usability.Equipment to be installed and Relevant equipment and other supporting facilities have been installed; after debugging the equipment

commissioned can maintain normal and stable operation for a period of time.

21. Borrowing costs

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

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 Determination basis

rate (%)

89Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

period 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.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

90Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 rental expenses for R & D sites

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

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 book value 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.

91Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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.

92Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 oremployee 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

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

93Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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

94Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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.

95Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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 book value 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.

96Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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

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Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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

98Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 book 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 book value 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.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 book 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 book value of the asset

after the reversal shall not exceed the book 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 asset

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.

99Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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 book value of certain assets or liabilities and their tax base or between the nil book

value 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

100Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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 book value of goodwill.At the balance sheet date the book value 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

101Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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

102Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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 re-measures the lease liability and adjusts the corresponding

right-of-use assets under the following circumstances. If the book 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 re-measures

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

re-measures the lease liability at the present value calculated based on the changed lease payments and the original

discount rate.

33.1.4 Short-term lease and lease 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.

103Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 re-

measures 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 book value 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 re-measured due to other lease modifications the

Group adjusts the book value 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 initial book 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.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;

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Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 book value 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 a medication 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 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 book value of the leased asset.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.

105Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.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.

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Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 June 30 2025 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

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.

107Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.IV. Taxes

1. 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 6% 9% 13% and simple

VAT and its domestic subsidiaries are ordinary Value-added Tax payers; the VAT collection rate of 5% 3%

payable is the balance of input tax after deducting the deductible output tax. (Note 2-3)

City maintenance and

Actual payable turnover tax 7% 5%

construction tax

Education surcharges Actual payable turnover tax 3%

Local education

Actual payable turnover tax 2%

surcharges

Note 1: Except that the Company and subsidiaries in China are applicable to the following tax preference the 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 with a valid term of 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 (2024: 15%).

108Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 2025 to pay the 2024 annual corporate income tax at the rate of 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.Chongqing Hikvision System Technology Co. Ltd. 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 (2024: 15%).

(3) According to 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 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 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 (2024:15%).

(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 2023 Hangzhou Hikvision System Technology Ltd. (hereinafter referred to as "Hangzhou System") Hangzhou

Rayin Technology Co. Ltd. (hereinafter referred to as "HikRayin") and Hangzhou Hikfire Technology Co. Ltd.(hereinafter referred to as "HikFire") were recognized as high-tech enterprises with a valid term of 3 years and the

preferential tax period is from 2022 to 2024. As of the approval date of this report Hangzhou Systems HikRayin and

HikFire are still in the reapplication stage for the High-Tech Enterprise qualification in 2025. According to the

Announcement of the State Taxation Administration on Issues Concerning the Implementation of the Income Tax

Preferential Policies for High-Tech Enterprises in the year when the High-Tech Enterprise qualification expires

before passing the reevaluation enterprises can temporarily pay income tax at a preferential rate of 15%. Therefore

income tax for this period is calculated and paid at a rate of 15% (2024:15%).

(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

109Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

income tax is calculated and paid on the basis of a reduced tax rate of 15% in the current reporting period (2024: 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 Co. Ltd. (hereinafter referred to as "HikImaging") 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 (2024: 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 Co. Ltd. was identified as the high-tech

enterprises 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 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% statutory tax rate in the third to fifth

years. The year of 2025 is the third year of HikRobot making profits and enjoyed enterprise income tax at half of the

25% statutory tax rate (2024: 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 Co. 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. As of the approval date of this report Hikmicro Sensing is still in the reapplication

stage for the High-Tech Enterprise qualification in 2025.In accordance with the Preferential Tax Policies for Integrated Circuit and Software Industries and Announcement No.

9 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 Hikmicro

Sensing is a qualified integrated 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 2025 is the fifth year of Hikmicro Sensing making profits and enjoyed enterprise income tax at half

of the 25% statutory tax rate.

110Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

In accordance with the Preferential Tax Policies for Integrated Circuit and Software Industries Hikmicro Sensing was

approved by the tax authorities in May 2025 for exemption from corporate income tax for the year 2024.

(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. As of the approval date of this report Hangzhou Hikmicro Software is

still in the reapplication stage for the High-Tech Enterprise qualification in 2025. According to the Announcement of

the State Taxation Administration on Issues Concerning the Implementation of the Income Tax Preferential Policies

for High-Tech Enterprises in the year when the High-Tech Enterprise qualification expires before passing the

reevaluation enterprises can temporarily pay income tax at a preferential rate of 15%. Therefore income tax for this

period is calculated and paid at a rate of 15%

In accordance with the Preferential Tax Policies for Integrated Circuit and Software Industries Hangzhou Hikmicro

Software was approved by the tax authorities in May 2025 for exemption from corporate income tax for the year 2024.

(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 Whst Hebei Co. Ltd. (hereinafter referred to as "Whst Hebei") was

identified as the high-tech enterprises with a valid term of 3 years and the preferential tax period is from 2022 to 2024.As of the approval date of this report Whst Hebei is still in the reapplication stage for the High-Tech Enterprise

qualification in 2025. According to the Announcement of the State Taxation Administration on Issues Concerning the

Implementation of the Income Tax Preferential Policies for High-Tech Enterprises in the year when the High-Tech

Enterprise qualification expires before passing the reevaluation enterprises can temporarily pay income tax at a

preferential rate of 15%. Therefore income tax for this period is calculated and paid at a rate of 15%. (2024: 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") was identified as the high-tech enterprise and valid term is 3 years and the preferential tax period is from

2023 to 2025. Therefore income tax for this period is calculated and paid at a rate of 15%. (2024: 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

111Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Digital Technology Ltd. Hangzhou Xingrong Information Technology Ltd. Xinjiang Zhongdian Yihai Information

Technology Ltd. and Guizhou Haikang Transportation Big Data Ltd. are qualified 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 RMB3 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 HikFire HikRayin Hangzhou Microimage Software Henan Haikang Hua'An BaoQuan

Electronics Co. Ltd. (hereinafter referred to as "Hua'An BaoQuan Electronics") Hangzhou Hikvision Yuanwu

Intelligence Technology Co. Ltd. (formerly known as "Hangzhou Kuangxin Technology Ltd.") Fuyang Baotai and Whst

Hebei 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 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 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.

112Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

V. Notes to items in the consolidated financial statements

1. Cash and bank balances

Unit: RMB

Closing balance Opening balance

Item Exchange Exchange Foreign currency Foreign currency

rate for RMB amount rate for RMB amount

amount amount

conversion conversion

Cash：

RMB - - 2988.12 - - 2759.07

USD 59489.70 7.1586 425863.00 19048.11 7.1884 136926.36

EUR 20446.60 8.4024 171800.52 32977.56 7.5257 248180.23

Other

--278795.32--294157.68

currencies

Bank balance：

RMB - - 26169640358.69 - - 30906055381.57

USD 446427014.10 7.1586 3195792423.11 525069475.29 7.1884 3774409416.15

EUR 70166577.45 8.4024 589567650.36 71544059.18 7.5257 538419126.19

Other

--902335503.18715042893.37

currencies

Other

currency

funds:

RMB - - 349526121.11 - - 293311312.74

USD 2529963.67 7.1586 18110997.93 1925634.95 7.1884 13842234.25

EUR 1789419.76 8.4024 15035420.60 159997.07 7.5257 1204089.92

Other

--45188604.42--28521859.50

currencies

Total 31286076526.36 36271488337.03

Including:

deposited in 1293787535.61 796652984.09

overseas banks

Details of other currency funds:

Unit: RMB

Closing balance Opening balance

Item Foreign Exchange Foreign Exchange

currency rate for RMB amount currency rate for RMB amount

amount conversion amount conversion

Capitals with limitations：

Bank acceptance bills - - 2196987.60 - - 4342362.58

Deposits for letter of

--257724474.07--187030125.71

guarantee

Other security deposits - - 16106719.90 - - 15572718.45

Other capitals with limitations - - 11500500.00 - - 11500750.00

Subtotal 287528681.57 218445956.74

113Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Capitals without

limitations:

Deposits in payment

instrument provided by third-

--138478637.61--118364276.15

party and in securities

account

Others - - 1853824.88 - - 69263.52

Subtotal 140332462.49 118433539.67

Total 427861144.06 336879496.41

2. Derivative financial assets

Unit: RMB

Item Closing balance Opening balance

Forward foreign exchange contract 25600.00 26775923.93

Total 25600.00 26775923.93

3. Notes receivable

3.1 Categories of notes receivable

Unit：RMB

Category Closing balance Opening balance

Bank acceptance bill 2163682034.44 2365648400.91

Finance company acceptance bill 97022754.16 150839104.68

Commercial acceptance bill 157835769.45 206108636.87

Total 2418540558.05 2722596142.46

3.2 At the end of the current reporting period the pledged notes receivable by the Group is nil.

3.3 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 June 30 2025

Bank acceptance bill 1289379489.66

Finance company acceptance bill 39251776.30

Commercial acceptance bill 9804.00

Total 1328641069.96

As of June 30 2025 the Group gave RMB1248642833.37 (2024: RMB1193485939.57) undue bank acceptance bill to

suppliers for endorsement RMB39251776.30 (2024: RM46990625.40) undue acceptance bill of the finance company

to suppliers for endorsement. RMB9804.00 (2024: RMB45274.00) undue commercial acceptance bill to suppliers for

endorsement. Discounted RMB40736656.29 (2024: RMB34410142.39) undue bank acceptance to banks. Since the

114Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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.

3.4 Classified disclosure by method of provision for bad debts

Unit：RMB

Closing balance

Category Account balance Credit loss provision Book value

Proportion Proportion

Amount Amount Amount

(%)(%)

Provision for bad debts of notes receivables

-----

on a single basis

Provision for bad debts of notes receivables

2419985687.95100.001445129.900.062418540558.05

by portfolios

Total 2419985687.95 100.00 1445129.90 0.06 2418540558.05

Unit：RMB

Opening balance

Category Account balance Credit loss provision Book value

Proportion Proportion

Amount Amount Amount

(%)(%)

Provision for bad debts of notes receivables

-----

on a single basis

Provision for bad debts of notes receivables

2725650950.56100.003054808.100.112722596142.46

by portfolios

Total 2725650950.56 100.00 3054808.10 0.11 2722596142.46

Provision for bad debts of notes receivables by portfolios

Unit：RMB

Closing balance

Category

Account balance Credit loss provision Proportion (%)

Bank acceptance bill 2163682034.44 - -

Non-bank acceptance bill 256303653.51 1445129.90 0.56

Total 2419985687.95 1445129.90 0.06

Explanation of provision for bad debts of notes receivables by portfolios:

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.

3.5 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 2025 3054808.10

Provision for/ Reverse of the current year (1609678.20)

Balance as at June 30 2025 1445129.90

115Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

3.6 Situation of provision.

Unit：RMB

Amount of changes changed in the current reporting period

Category Opening balance Transfer or Closing balance

Provision or reverse

write-off

Notes receivable 3054808.10 (1609678.20) - 1445129.90

Total 3054808.10 (1609678.20) - 1445129.90

4. Accounts receivable

4.1 Disclosure by aging

Unit: RMB

Aging Closing account balance Opening account balance

Within credit period 18398478364.29 21885251680.47

Within 1 year after exceeding credit period 13525612305.01 13413302524.64

1-2 years after exceeding credit period 3590337271.49 3351710793.78

2-3 years after exceeding credit period 1366540544.21 1353841038.81

3-4 years after exceeding credit period 896665604.23 664972595.95

Over 4 years after exceeding credit period 1289500921.05 1155004826.72

Accounts receivable 39067135010.28 41824083460.37

Less: Credit impairment provision 4228643892.65 3913954724.95

Book value 34838491117.63 37910128735.42

4.2 Classified disclosure of credit loss provision by methods

Unit: RMB

Closing balance

Category Account balance Credit loss provision Book value

Amount Proportion (%) Amount Proportion (%) Amount

Provision for credit loss on a single basis - - - - -

Provision for credit loss by portfolios 39067135010.28 100.00 4228643892.65 10.82 34838491117.63

Total 39067135010.28 100.00 4228643892.65 10.82 34838491117.63

Opening balance

Category Account balance 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

Provision for credit loss by portfolios for accounts receivable

Unit: RMB

Closing balance

Customer

Account balance Credit loss provision Proportion (%)

116Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Portfolio A 1380472916.05 12471730.29 0.90

Portfolio B 27869035945.24 3875300715.00 13.91

Portfolio C 9817626148.99 340871447.36 3.47

Total 39067135010.28 4228643892.65 10.82

Description of credit loss provision by portfolios for accounts receivable:

As part of the Group's credit risk management the Group uses an impairment matrix to determine expected credit losses

based on the aging 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. 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.

117Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

As of June 30 2025 and January 1 2025 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

Aging Expected average Bad debt Expected average Bad debt

Account balance Book value Account balance Book value

loss rate (%) provision loss rate (%) provision

Within credit period 0.07 1102158520.36 824513.30 1101334007.06 0.07 2705323605.53 1944444.46 2703379161.07

Within 1 year after exceeding credit period 2.76 268861437.58 7419788.92 261441648.66 2.26 554426756.05 12545412.20 541881343.85

1-2 years after exceeding credit period 34.82 7730159.78 2691875.90 5038283.88 32.98 71438423.74 23559515.25 47878908.49

2-3 years after exceeding credit period 70.68 638629.48 451383.32 187246.16 70.25 13320979.94 9358292.92 3962687.02

3-4 years after exceeding credit period 100.00 858272.88 858272.88 - 100.00 11703561.65 11703561.65 -

Over 4 years after exceeding credit period 100.00 225895.97 225895.97 - 100.00 25824241.87 25824241.87 -

Total 0.90 1380472916.05 12471730.29 1368001185.76 2.51 3382037568.78 84935468.35 3297102100.43

As of June 30 2025 and January 1 2025 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

Account balance Book value Account balance Book value

loss rate (%) provision loss rate (%) provision

Within credit period 0.75 9271610646.91 69435760.39 9202174886.52 0.88 10826359201.03 94976583.91 10731382617.12

Within 1 year after exceeding credit period 5.26 11764176480.69 619033114.35 11145143366.34 5.21 11759406126.15 612261723.49 11147144402.66

1-2 years after exceeding credit period 22.16 3444722265.09 763419854.25 2681302410.84 21.84 3187571282.52 696103763.26 2491467519.26

2-3 years after exceeding credit period 44.34 1326299164.47 588042548.25 738256616.22 48.51 1321386954.11 640970300.26 680416653.85

3-4 years after exceeding credit period 74.20 879169910.29 652311959.97 226857950.32 76.24 632604288.10 482311146.65 150293141.45

Over 4 years after exceeding credit period 100.00 1183057477.79 1183057477.79 - 100.00 1036221663.88 1036221663.88 -

Total 13.91 27869035945.24 3875300715.00 23993735230.24 12.39 28763549515.79 3562845181.45 25200704334.34

As of June 30 2025 and January 1 2025 the credit risk and expected credit losses during the duration of accounts receivable from portfolio C are as follows:

118Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit: RMB

Closing balance Opening balance

Aging Expected average Bad debt Expected average Bad debt

Account balance Book value Account balance Book value

loss rate (%) provision loss rate (%) provision

Within credit period 0.25 8024709197.02 20103468.79 8004605728.23 0.25 8353568873.91 21130742.84 8332438131.07

Within 1 year after exceeding credit period 6.04 1492574386.74 90208413.78 1402365972.96 6.05 1099469642.44 66495406.43 1032974236.01

1-2 years after exceeding credit period 51.78 137884846.62 71400143.25 66484703.37 51.18 92701087.52 47448581.31 45252506.21

2-3 years after exceeding credit period 91.67 39602750.26 36304453.19 3298297.07 91.34 19133104.76 17475677.40 1657427.36

3-4 years after exceeding credit period 100.00 16637421.06 16637421.06 - 100.00 20664746.20 20664746.20 -

Over 4 years after exceeding credit period 100.00 106217547.29 106217547.29 - 100.00 92958920.97 92958920.97 -

Total 3.47 9817626148.99 340871447.36 9476754701.63 2.75 9678496375.80 266174075.15 9412322300.65

4.3 Bad debt provision

Unit: RMB

Amount of changes changed in the current reporting period Difference due to foreign

Category Opening balance currency statement Closing balance

Provision / Reversal or Recovery Transfer or write-off translation

Accounts receivable 3913954724.95 326139164.92 14971371.51 3521374.29 4228643892.65

Total 3913954724.95 326139164.92 14971371.51 3521374.29 4228643892.65

119Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

4.4 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 RMB2 684353418.35 (of which the total amount of accounts receivable is RMB1321945098.46 and the amount of contract assets is RMB1362408319.89) accounting

for 6.39% of the total closing 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

RMB340039496.28.

5. Contract assets

5.1 Details of contract assets

Unit: RMB

Closing Balance Opening Balance

Item Provisions for

Account balance Provisions for impairment Book value Account balance Book value

impairment

Constructions 2646885016.10 22098932.77 2624786083.33 2821485040.98 23550579.80 2797934461.18

Maintenance services 290321252.23 2341714.61 287979537.62 253714700.92 2071050.36 251643650.56

Less:

Contract assets that are

included in other non- 2013382764.98 16672579.81 1996710185.17 2081248707.05 17493381.00 2063755326.05

current assets (Note (V)

22)

Total 923823503.35 7768067.57 916055435.78 993951034.85 8128249.16 985822785.69

5.2 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

Item Account balance Provisions for impairment Book value

Amount Proportion (%) Amount Provision proportion (%) Amount

Provision for impairment on a single item - - - - -

Provision for impairment by portfolio 2937206268.33 100.00 24440647.38 0.83 2912765620.95

Total 2937206268.33 100.00 24440647.38 0.83 2912765620.95

120Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Opening Balance

Item Account balance Provisions for impairment Book value

Amount Proportion (%) Amount Provision proportion (%) Amount

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

5.3 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 period Difference due to

Category Opening balance foreign currency Closing balance

Provision / Reversal or Recovery Transfer or write-off

statement translation

Contract assets 25621630.16 (1178355.48) - (2627.30) 24440647.38

Total 25621630.16 (1178355.48) - (2627.30) 24440647.38

6. Receivables for financing

6.1 Receivables for financing by categories

Unit: RMB

Item Closing balance Opening balance

Bank acceptance bill 2157419547.76 2128242910.57

Certificate of creditor’s right of account receivables 92023750.24 163405333.48

Total 2249443298.00 2291648244.05

121Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

6.2 At the end of the current reporting period the Group had no pledged receivables for financing.

6.3 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 June 30 2025

Bank acceptance bill 1680042774.61

Total 1680042774.61

As of June 30 2025 the Group endorsed to suppliers bank acceptance bills amounting to RMB1373309446.69 that had not yet matured and discounted to banks bank acceptance bills

amounting to RMB306733327.92 that had not yet matured.

6.4 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. Prepayments

7.1 Prepayments by aging analysis

Unit: RMB

Closing balance Opening balance

Aging

Amount Proportion (%) Amount Proportion (%)

Within 1 year 594896780.73 95.94 624943424.42 94.03

1-2 years 11698520.02 1.89 24319470.26 3.66

2-3 years 9892751.77 1.59 11026833.66 1.66

Over 3 years 3592149.82 0.58 4312864.67 0.65

Total 620080202.34 100.00 664602593.01 100.00

122Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

7.2 Details of closing balances of top five prepayments parties

As of June 30 2025 the Group's top five balances of prepayments amounted to RMB114679580.37 accounting for 18.49% of total closing balance of prepayments.

8. Other receivables

8.1 Other receivables by aging

Unit: RMB

Aging Closing balance Opening balance

Within contract period 330163707.44 438536805.11

Within 1 year 102236062.79 71996644.17

1-2 years 17998282.53 19987742.95

2-3 years 9547784.29 14942465.41

3-4 years 7589135.72 3327986.69

Over 4 years 16009107.90 15860010.64

Total 483544080.67 564651654.97

Less: Credit impairment provision 35895789.97 33307048.47

Book value 447648290.70 531344606.50

8.2 Details of other receivables by nature of the payment

Unit: RMB

Nature Closing balance Opening balance

Guarantee deposits 251491693.36 240519111.89

Temporary payments for receivables 151645143.16 116667509.52

certificate of creditor’s right of account receivables - 130609720.61

Others 80407244.15 76855312.95

123Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Nature Closing balance Opening balance

Total 483544080.67 564651654.97

8.3 Accrual for bad debts of other receivables

Unit: RMB

Stage 1 Stage 2 Stage 3

Provision for credit loss 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 2025 1587353.47 7276075.63 24443619.37 33307048.47

Balance on January 1 2025

in the current reporting period

--Transfer into stage 2 (368049.83) 368049.83 - -

--Transfer into stage 3 - (1898099.52) 1898099.52 -

--Accrual/(recovery or reversal) in the current

75784.912451450.31(910436.82)1616798.40

reporting period

Derecognition of financial assets (including direct

--(166740.61)(166740.61)

write-downs) and transfer out

Other changes 1138683.71 - - 1138683.71

Balance on June 30 2025 2433772.26 8197476.25 25264541.46 35895789.97

8.4 Provision for bad debts of other receivables

Unit: RMB

Amount of changes in the current reporting period Difference resulted from foreign currency

Category Opening balance Closing balance

Provision/ Recollect or reverse Transfer or write-off statements conversion

Other receivables 33307048.47 1616798.40 166740.61 1138683.71 35895789.97

Total 33307048.47 1616798.40 166740.61 1138683.71 35895789.97

124Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

8.5 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 RMB22879596.39 accounting for 4.73% of the total balance of other

receivables at the end of the reporting period and the provision for bad debts amounted to RMB525575.13.

125Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

9. Inventories

9.1 Categories of inventories

Unit: RMB

Closing balance Opening balance

Provision for decline in value of Provision for decline in value of

Category

Account balance inventories/ Impairment provision Book value Account balance inventories/ Impairment provision Book value

for contract performance cost for contract performance cost

Raw materials 6041672147.64 320950116.18 5720722031.46 6112813706.01 321520672.33 5791293033.68

Work-in-progress 1005502691.62 - 1005502691.62 722550293.30 - 722550293.30

Finished goods 12975727080.43 1058342747.37 11917384333.06 13151518051.53 990672547.73 12160845503.80

Contract performance cost 487911581.34 6595745.76 481315835.58 444030393.50 8007266.17 436023127.33

Total 20510813501.03 1385888609.31 19124924891.72 20430912444.34 1320200486.23 19110711958.11

9.2 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 321520672.33 45488480.79 46122982.35 63945.41 320950116.18

Finished goods 990672547.73 162209888.49 133758591.88 39218903.03 1058342747.37

Contract performance cost 8007266.17 - 1411520.41 - 6595745.76

Subtotal 1320200486.23 207698369.28 181293094.64 39282848.44 1385888609.31

The write-offs of provision for inventories in the current reporting period are due to use or sale of inventories.

126Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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) 755509234.02 894327647.82

Total 755509234.02 894327647.82

11. Other current assets

Unit: RMB

Item Closing balance Opening balance

Deductible VAT input 1060000968.70 901841078.74

Prepaid corporate income tax 114684374.57 90832918.17

Prepaid tariff 15961242.36 18347927.67

Others 122511250.46 60044728.52

Total 1313157836.09 1071066653.10

12. Long-term receivables

12.1 Details of long-term receivables

Unit: RMB

Closing balance Opening balance

Item

Account balance Loss provision Book value Account balance Loss provision Book value

Financial leases receivables 264705885.59 79510188.83 185195696.76 286093285.46 77540673.10 208552612.36

Including: Unrealized income from financing 5149760.65 - 5149760.65 5907102.54 - 5907102.54

Installments business 986933945.83 586868856.10 1051389224.08 349486719.21 701902504.87

400065089.73

Including: Unrealized income from financing 8613534.32 - 8613534.32 13619170.58 - 13619170.58

Employee housing loan 287356101.62 - 287356101.62 364325718.68 - 364325718.68

127Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Including: Unrealized income from financing 26649334.91 - 26649334.91 31285136.32 - 31285136.32

Subtotal 1538995933.04 479575278.56 1059420654.48 1701808228.22 427027392.31 1274780835.91

Less: Non-current assets due within one year (Note (V) 10) 1234225241.93 755509234.02 1320172837.77 425845189.95 894327647.82

478716007.91

Total 304770691.11 859270.65 303911420.46 381635390.45 1182202.36 380453188.09

12.2 Disclosure by method of provision for bad debts

Unit: RMB

Closing balance Opening balance

Item

Account balance Loss provision Book value Account balance Loss provision Book value

Provision for bad debts by portfolio (including bad debts due

1538995933.04479575278.561059420654.481701808228.22427027392.311274780835.91

within one year)

Including: Portfolio of employee 287356101.62 - 287356101.62 364325718.68 - 364325718.68

Portfolio of financial leasing and installment

1251639831.42479575278.56772064552.861337482509.54427027392.31910455117.23

collection customers

Total 1538995933.04 479575278.56 1059420654.48 1701808228.22 427027392.31 1274780835.91

Portfolio of employee

The Group believes that the employees corresponding to the 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 June 30 2025 the credit risk and expected credit losses of long-term receivables relating to financial leasing and installment collection customers are as follows:

128Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit: RMB

Closing balance

Aging

Account balance Bad debts provision Forecast average loss rate (%)

Within credit period 281952285.07 2001861.22 0.71

Within 1 year after exceeding credit period 171187545.19 7840389.58 4.58

1-2 years after exceeding credit period 194300855.67 37946957.10 19.53

2-3 years after exceeding credit period 207314391.30 84957437.56 40.98

3-4 years after exceeding credit period 169108517.19 119052396.10 70.40

Over 4 years after exceeding credit period 227776237.00 227776237.00 100.00

Total 1251639831.42 479575278.56 38.32

12.3 Bad debt provision

Amount of changes in the current reporting period Difference due to

Aging Opening balance foreign currency Closing balance

Provision / Reversal or Recovery Transfer or write-off statement translation

Long-term receivables 427027392.31 52547886.25 - - 479575278.56

Total 427027392.31 52547886.25 - - 479575278.56

13. Long-term equity investment

129Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit: RMB

Increase/Decrease in the current reporting period

Closing

Investment Profit

Adjustment: Other Declaration of balance

Opening (Loss) Closing

The invested entity Additional Investment Other Changes cash dividends Impairment for

Balance recognized under others Balance

Investments reduction comprehensive in equity (Note or profit provision impairment

the equity

income 1) distribution provision

Method

1. Joint ventures

Hangzhou Haikang Intelligent

Industrial Equity Investment Fund 868063887.91 - - (8130418.39) - 18912591.70 (49248130.84) - - 829597930.38 -

Partnership (L.P.)

Zhejiang City Digital Technology

20077377.04--3589999.81-----23667376.85-

Ltd.Zhejiang Haishihuayue Digital

Technology Ltd. (hereafter referred 13704580.92 - - 449832.08 - - - - (14154413.00) - -

to as Haishihuayue) (Note 2)

Guangxi Haishi Urban Operation

11449482.39--(831824.68)-----10617657.71-

Management Ltd.Xuzhou Kangbo City Operation

10845746.31--(1385270.45)-----9460475.86-

Management Service Ltd.Other 4516484.96 - - (221369.51) - - - - - 4295115.45 -

Subtotal 928657559.53 - - (6529051.14) - 18912591.70 (49248130.84) - (14154413.00) 877638556.25 -

2. Associates

Beijing Taifang Technology LLC 33609511.60 - - (1655196.98) - 574613.25 - - - 32528927.87 -

Jiaxing Haishi JiaAn Zhicheng

29062368.34--(229249.57)-----28833118.77-

Technology Ltd.Zhiguang Hailian Big Data

24397944.42--2845098.32-----27243042.74-

Technology Ltd.Terapark (Nanjing) Ltd. 17541679.23 - - (1162135.57) - - - - - 16379543.66 -

Other 493954327.67 - (576599.12) 11404257.32 - 3966321.55 - - - 508748307.42 -

Subtotal 598565831.26 - (576599.12) 11202773.52 - 4540934.80 - - - 613732940.46 -

Total 1527223390.79 - (576599.12) 4673722.38 - 23453526.50 (49248130.84) - (14154413.00) 1491371496.71 -

Note 1: The changes in other equity in the period were caused by the changes in equity of the investee due to increase or decrease investments from other shareholders.Note 2: During the reporting period the Group incorporated Haishihuayue into its consolidated financial statements and no longer accounted for it as a joint venture. See Note VI. (1).

130Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

14. Other non-current financial assets

Unit: RMB

Item Closing balance Opening balance

Investments in equity instruments (Note) 514607935.55 472000082.76

Total 514607935.55 472000082.76

Note: It refers to the Group's equity investments. The Group has no control joint control or significant influence over

these invested company.

15. Fixed assets

15.1 Details of fixed assets

Unit: RMB

Building and General-purpose Special-purpose Transportation

Item Total

construction equipment equipment vehicles

I. Original cost

1. Opening balance 14302410545.25 2465005573.96 4517493939.26 106765174.82 21391675233.29

2. Increase in the current

1924661116.16344100467.15318383611.701456999.802588602194.81

reporting period

1) purchase 73539492.81 343150852.31 116351136.23 1456999.80 534498481.15

2) transferred from

1851121623.35764430.84201393447.03-2053279501.22

construction in progress

3) transferred from inventory - - 639028.44 - 639028.44

4) Increase due to business

-185184.00--185184.00

combination.

3. Decrease in the current

16979660.1137866262.3111482337.682014669.5568342929.65

reporting period

1) disposal or write-off 16979660.11 37866262.31 11482337.68 2014669.55 68342929.65

4. Difference due to foreign

34072934.8821364406.012349015.402179019.5759965375.86

currency statement translation

5. Closing balance 16244164936.18 2792604184.81 4826744228.68 108386524.64 23971899874.31

II. Accumulated depreciation

1. Opening balance 2424520975.54 1333180015.45 2494483298.03 75738647.78 6327922936.80

2. Increase in the current

326543602.99172395491.56275275480.624439851.78778654426.95

reporting period

1) accrual 326543602.99 172395491.56 275275480.62 4439851.78 778654426.95

3. Decrease in the

current reporting 11781089.25 22873844.40 6170099.08 1725384.77 42550417.50

period

1) disposal or write-off 11781089.25 22873844.40 6170099.08 1725384.77 42550417.50

4. Difference due to foreign

5287596.6811759570.411708876.181080004.1119836047.38

currency statement translation

5. Closing balance 2744571085.96 1494461233.02 2765297555.75 79533118.90 7083862993.63

III. Impairment provision

1. Opening balance

2. Increase in the current

4245701.67---4245701.67

reporting period

3. Decrease in the current

-----

reporting period

4. Closing balance 4245701.67 - - - 4245701.67

IV. Book value

131Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Building and General-purpose Special-purpose Transportation

Item Total

construction equipment equipment vehicles

1. Book value at the end of the

13495348148.551298142951.792061446672.9328853405.7416883791179.01

period

2. Book value at the beginning

11877889569.711131825558.512023010641.2331026527.0415063752296.49

of the period

15.2 As of June 30 2025 the book value of special-purpose equipment leased by the Group through operating leases is

RMB44642772.24.

15.3 Fixed assets of which certificates of title have not been granted as of June 30 2025 are as follows:

Unit: RMB

Item Book value Reason for certificates of title not granted

Office building for branches 10899744.52 In the process of obtaining the real estate certificates

Nanchang Intelligence Industrial Park 299531396.44 In the process of obtaining the real estate certificates

EZVIZ Intelligent Manufacturing Chongqing

1545873682.60 In the process of obtaining the real estate certificates

Base Project

Total 1856304823.56

132Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

16. Construction in progress

16.1 Details of construction in progress

Unit: RMB

Closing balance Opening balance

Item

Account balance Provision Book value Account balance Provision Book value

Wuhan Science and Technology Park Project 1661710924.66 - 1661710924.66 1657649090.38 - 1657649090.38

HikRobot Intelligent Manufacturing (Tonglu) Base

627625959.41-627625959.41498800343.68-498800343.68

Project

Infrared Thermal Imaging Products Industrial Base 264982679.47 - 264982679.47 166668535.02 - 166668535.02

HikRobot Product Industrial Base Construction

241644847.64-241644847.64199752968.31-199752968.31

Project

Wuhan Industrial Park Product (Phase II) 80266346.78 - 80266346.78 13854531.11 - 13854531.11

EZVIZ Intelligent Manufacturing Chongqing Base Project - - - 1144333377.23 - 1144333377.23

Others 1131534852.43 - 1131534852.43 1018414535.48 - 1018414535.48

Total 4007765610.39 - 4007765610.39 4699473381.21 - 4699473381.21

16.2 Changes in significant construction in progress during the current reporting period

Unit: RMB

Transferred to fixed Amount invested as Construction in

Budget Increase in the current

Item Opening balance assets during the current Closing balance proportion of budget Progress

(RMB0000) reporting period Source of funds

reporting period amount (%) (%)

Wuhan Science and Technology 1661710924.6

Park Project 190102.00 1657649090.38 4061834.28 - 87.41% 87.41% Self-fund 6

HikRobot Intelligent

Manufacturing (Tonglu) Base 107105.00 498800343.68 128825615.73 - 6 27625959.41 58.60% 58.60% Self-fund

Project

Infrared Thermal Imaging

78084.00 166668535.02 98314144.45 - 2 64982679.47 33.94% 33.94% Self-fund

Products Industrial Base Product

HikRobot Product Industrial Base

101346.00 199752968.31 41891879.33 - 2 41644847.64 23.84% 23.84% Self-fund

Construction Project

Wuhan Industrial Park Product

117776.00 13854531.11 66411815.67 - 80266346.78 6.82% 6.82% Self-fund

(Phase II)

EZVIZ Intelligent Manufacturing

163000.00 1144333377.23 401540305.37 1545873682.60 - 94.84% 100.00% Self-fund/ raising fund

Chongqing Base

133Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

17. Right-of-use assets

Unit: RMB

Item Houses and Buildings General Equipment Special-purpose equipment Transportation vehicles Total

I. Original cost

1. Opening balance 1034862846.02 9462700.30 25866583.99 27957734.14 1098149864.45

2. Increased 51264183.48 - - 1015797.37 52279980.85

(1) New Lease 51264183.48 - - 1015797.37 52279980.85

3. Decreased 144399305.02 - - 3220341.81 147619646.83

(1) The lease contract expires or terminates early 144399305.02 - - 3220341.81 147619646.83

4. Difference due to foreign currency statement translation 24898042.51 840559.76 - 2741259.82 28479862.09

5. Closing balance 966625766.99 10303260.06 25866583.99 28494449.52 1031290060.56

II. Accumulated depreciation

1. Opening balance 540043415.96 9356906.61 2586658.40 16024859.69 568011840.66

2. Increased 98538190.20 20396.33 1293329.20 3032925.66 102884841.39

(1) Provisions 98538190.20 20396.33 1293329.20 3032925.66 102884841.39

3. Decreased 119893519.18 - - 3220341.81 123113860.99

(1) The lease contract expires or terminates early 119893519.18 - - 3220341.81 123113860.99

4. Difference due to foreign currency statement translation 15288462.26 832590.01 - 1644581.53 17765633.80

5. Closing balance 533976549.24 10209892.95 3879987.60 17482025.07 565548454.86

III. Book value

1. Book value at the end of the period 432649217.75 93367.11 21986596.39 11012424.45 465741605.70

2. Book value at the beginning of the period 494819430.06 105793.69 23279925.59 11932874.45 530138023.79

18. Intangible assets

18.1 Details of intangible assets

Unit: RMB

Item Land use right Intellectual property right Application software Franchise Total

I. Original cost

134Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Item Land use right Intellectual property right Application software Franchise Total

1. Opening balance 1783602402.73 278550167.97 452779019.64 112042419.99 2626974010.33

2. Increased 85883773.58 479922.47 6703046.82 480612.61 93547355.48

(1) Purchase 85883773.58 479922.47 6703046.82 480612.61 93547355.48

3. Decreased - 30798357.37 1764996.81 141776.46 32705130.64

(1) Disposal or write-off - 30798357.37 1764996.81 141776.46 32705130.64

4. Difference due to foreign currency statement translation - 149083.22 3191460.50 22725.34 3363269.06

5. Closing balance 1869486176.31 248380816.29 460908530.15 112403981.48 2691179504.23

II. Accumulated amortization

1. Opening balance 207962228.63 133776630.29 384418987.10 30494964.83 756652810.85

2. Increased 19544046.14 18128593.96 11757505.38 3467824.50 52897969.98

(1) Accrual 19544046.14 18128593.96 11757505.38 3467824.50 52897969.98

3. Decreased - 30798357.37 1337411.91 113667.67 32249436.95

(1) Disposal or write-off - 30798357.37 1337411.91 113667.67 32249436.95

4. Difference due to foreign currency statement translation - 132919.70 3082097.40 18219.79 3233236.89

5. Closing balance 227506274.77 121239786.58 397921177.97 33867341.45 780534580.77

III. Impairment provision

1. Opening balance - - - 42034063.49 42034063.49

2. Closing balance - - - 42034063.49 42034063.49

VI. Book value

1. Book value at the end of the period 1641979901.54 127141029.71 62987352.18 36502576.54 1868610859.97

2. Book value at the beginning of the period 1575640174.10 144773537.68 68360032.54 39513391.67 1828287135.99

18.2 At the end of the current reporting period the Group does not have any land use rights that have not been issued with certificates

135Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

19. Goodwill

Unit: RMB

Difference due to

The name of the investee or the matter Opening foreign currency

Increased Decreased Closing balance

that forming a goodwill balance statement

translation

Whst Co. Ltd. and Whst Hebei Co.

92088117.87---92088117.87

Ltd.SISTEMAS Y SERVICIOS DE

82448740.90--(341796.85)82106944.05

COMUNICACIóN S.A. DE C.V.Henan HuaAn Baoquan Intelligence

61322871.63---61322871.63

development Ltd. and its subsidiaries

Hangzhou Hikvision Yuanwuzhi

59060454.06---59060454.06

Technology Ltd

Zhejiang Zhiyuan Fire Safety

8199253.77---8199253.77

Engineering Ltd

BK EESTI AKTSIASELTS 4525985.93 - - 527250.87 5053236.80

SIA "BK Latvia" 4519705.13 - - 526519.20 5046224.33

Total 312165129.29 - - 711973.22 312877102.51

20. Long-term deferred expenses

Unit: RMB

Difference due to

Other foreign currency

Item Opening balance Increased Amortized Closing balance

decreased statement

translation

Improvement

expenditure for leased 131556622.59 21720017.98 41028978.96 - 3144350.12 115392011.73

fixed asset

Employee housing loan

31285136.321279913.605332132.99583582.02-26649334.91

deferred interest

Total 162841758.91 22999931.58 46361111.95 583582.02 3144350.12 142041346.64

21. Deferred tax assets/deferred tax liabilities

21.1 Deferred tax assets that are not presented on net off basis

Unit: RMB

Closing balance Opening balance

Item Deductible Deductible

temporary Deferred tax assets temporary Deferred tax assets

differences differences

Provision for impairment losses of assets 1104561744.31 273304103.36 1069364511.58 262572804.77

Provision for credit loss 4364731565.67 924303968.86 4124476014.55 871658710.55

Provisions 236267646.66 45433045.10 222850155.25 42567907.88

Accrued but unsettled liabilities 2404230586.96 419535348.00 2328549255.13 397756108.86

Unrealized profit from inter-group

3546236072.06531935410.813007410744.33451057918.47

transactions

Changes in the fair value of derivative

54619883.9013654970.981874341.64468585.41

financial instruments

Deferred income 836314503.19 135295082.12 868928757.73 138068886.25

Changes in the fair value of other non-

26426544.453963981.6764034397.249605159.59

current financial assets

Depreciation difference of fixed assets and

164705056.5128560987.14186042413.5630689292.90

amortization difference of intangible assets

Deductible losses 873491416.22 141477934.16 1104881983.80 174500339.85

136Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Lease liabilities 480707648.22 83737686.43 542520611.31 79492726.88

Others 121598564.29 34658376.26 151226802.47 47687727.75

Total 14213891232.44 2635860894.89 13672159988.59 2506126169.16

21.2 Deferred tax liabilities that are not presented on net off basis

Unit: RMB

Closing balance Opening balance

Item Taxable temporary Deferred tax Taxable temporary Deferred tax

differences liabilities differences liabilities

Depreciation difference of fixed assets and

1592863182.31292230493.391404309520.48245623102.73

amortization difference of intangible assets

Investment in joint venture measured by equity

201067860.7430160179.11268063887.9140209583.19

method - partnership

Changes in the fair value of derivative financial

25600.006400.0026775923.936693980.98

instruments

Changes in the fair value of other non-current

19420700.004855175.0019420700.004855175.00

financial assets

Right-of-use assets 465741605.70 80296274.26 530138023.79 77298681.61

Valuation and appreciation of assets of business

122039999.9230509999.98139474285.6834868571.42

combinations not under common control

Others 39603796.85 11425949.51 11688743.69 3097280.69

Total 2440762745.52 449484471.25 2399871085.48 412646375.62

21.3 Deferred tax assets or deferred tax liabilities that are presented at the net amount after offset

Unit: RMB

Closing balance Opening balance

Item Offset amount at the Deferred tax assets or

Offset amount at the Deferred tax assets or

end of the reporting liabilities at the net beginning of the liabilities at the net

period amount after offset reporting period amount after offset

Deferred tax assets 317070723.56 2318790171.33 299935012.10 2206191157.06

Deferred tax liabilities 317070723.56 132413747.69 299935012.10 112711363.52

22. Other non-current assets

Unit: RMB

Closing balance Opening balance

Item Impairment Impairment

Account balance Book value Account balance Book value

provision provision

Contract assets 2013382764.98 16672579.81 1996710185.17 2081248707.05 17493381.00 2063755326.05

Prepayments for

79796012.81-79796012.8161129209.00-61129209.00

equipment

Prepayments for

54531881.25-54531881.25135783923.33-135783923.33

real estate

Prepayments for

acquisition of 3810038.67 - 3810038.67 89318973.58 - 89318973.58

land

Prepayments for

404073.31-404073.313122181.73-3122181.73

infrastructure

Others 51370.95 - 51370.95 51370.95 - 51370.95

Total 2151976141.97 16672579.81 2135303562.16 2370654365.64 17493381.00 2353160984.64

23. Assets with restriction in ownership or use rights

137Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit: RMB

Book value at the end of the current

Item Cause of restriction

reporting period

Cash and bank balances 287528681.57 Various guarantee deposits and other restricted funds

Notes receivable 1328641069.96 Endorsed to the supplier discounted to the bank

Accounts receivable 109887827.72 Pledged for long-term borrowings

Contract assets 40952482.25 Pledged for long-term borrowings

Fixed assets 44642772.24 Fixed assets leased out under operating leases

Intangible assets 11450846.86 Pledged for long-term borrowings

Other non-current assets 484125599.18 Pledge for long-term borrowings

Total 2307229279.78

Unit: RMB

Book value at the beginning of the

Item Cause of restriction

current reporting period

Cash and bank balances 218445956.74 Various guarantee deposits and other restricted funds

Notes receivable 1274931981.36 Endorsed to the supplier 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

24. Short-term borrowings

24.1 Categories of short-term borrowings

Unit: RMB

Item Closing balance Opening balance

Fiduciary loan 1489895331.57 997485670.23

Discounted but not expired notes (Note(V).3) 40736656.29 34410142.39

Total 1530631987.86 1031895812.62

24.2 As of June 30 2025 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 contract 55839882.40 1874341.64

total 55839882.40 1874341.64

26. Notes payable

List of accounts payable

Unit: RMB

Item Closing balance Opening balance

138Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Bank acceptance bill 552245205.69 1197128746.56

Total 552245205.69 1197128746.56

As of June 30 2025 the Group did not have any unpaid matured notes payable.

27. Accounts payable

27.1 List of accounts payable

Unit: RMB

Item Closing balance Opening balance

Payments for goods 14654178288.39 19158300660.13

Payments for engineering equipment 1166198158.78 1027002447.56

Total 15820376447.17 20185303107.69

27.2 As of June 30 2025 the Group did not have any significant accounts payable with aging above one year.

28. Contract liabilities

28.1 List of contract liabilities

Unit: RMB

Item Closing balance Opening balance

Advanced receipts from sales of products 2461472907.88 2541743559.81

Advanced receipts for construction settlement payment 396988789.11 342197373.57

Advanced receipts from other services 665887869.99 544032069.70

Subtotal 3524349566.98 3427973003.08

Less: contract liabilities included in other non-current liabilities

143410893.9874029948.84

(Note (V) 38)

Total 3380938673.00 3353943054.24

28.2 As of the end of this period the Group has no significant contract liabilities with an age exceeding one year.

28.3 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

139Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

29. Payroll payable

29.1 Details of payroll payable

Unit: RMB

Increase in the current Decrease in the current

Item Opening balance Closing balance

reporting period reporting period

1. Short-term remuneration 5555435367.90 9223073972.94 9963806324.79 4814703016.05

2. Termination benefits – defined

110980466.20765724794.47758148373.63118556887.04

contribution scheme

Total 5666415834.10 9988798767.41 10721954698.42 4933259903.09

29.2 List of short-term remuneration

Unit: RMB

Increase in the current Decrease in the current

Item Opening balance Closing balance

reporting period reporting period

1. Wages or salaries bonuses

4953267881.537831214198.328605604546.254178877533.60

allowances and subsidies

2. Staff welfare 30618947.29 181631502.01 204090112.79 8160336.51

3. Social insurance contributions 46851555.55 373361923.10 373384014.98 46829463.67

Including:

43743625.50352412849.43353023028.2843133446.65

Medical insurance

Injury insurance 3038734.24 19483849.03 18878190.11 3644393.16

Maternity insurance 69195.81 1465224.64 1482796.59 51623.86

4. Housing funds 3834534.11 703061811.65 705603314.43 1293031.33

5. Labor union and education fund 520862449.42 133804537.86 75124336.34 579542650.94

Subtotal 5555435367.90 9223073972.94 9963806324.79 4814703016.05

29.3 List of defined contribution plan

Unit: RMB

Increase in the Decrease in the

Item Opening balance Closing balance

current period current period

1. Basic pension insurance 106982320.41 738869460.01 730885499.68 114966280.74

2. Unemployment insurance 3998145.79 26855334.46 27262873.95 3590606.30

Subtotal 110980466.20 765724794.47 758148373.63 118556887.04

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.

30. Taxes payable

140Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit: RMB

Item Closing balance Opening balance

Enterprise income tax 937360927.40 913040846.83

Value-added tax 460089341.42 404940647.59

City construction and maintenance tax 26482901.02 26303950.83

Education surcharges 11263205.49 11664982.93

Local education surcharges 7818940.74 8323731.96

Others 124657182.94 171661935.88

Total 1567672499.01 1535936096.02

31. Other payables

31.1 By categories

Unit: RMB

Item Closing balance Opening balance

Dividend payable 19882185.64 186793.11

Other payables 3328487209.96 3528172251.37

Total 3348369395.60 3528359044.48

31.2 Dividends payable

Unit: RMB

Item Closing balance Opening balance

Dividends payable to minority shareholders 19882185.64 186793.11

Total 19882185.64 186793.11

31.3 Other payables

31.3.1 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

1287904413.671240521838.97

(Note (V)-3)

Accrued expenses 1268986955.76 1527405326.55

Guarantee and deposit fees 496674084.34 477797205.49

Collection and payment on behalf 211352303.25 209269289.66

Other expense payable 63569452.94 73178590.70

Total 3328487209.96 3528172251.37

31.3.2 As of June 30 2025 the Group did not have any significant other payables aging over one year.

32. Non-current liabilities due within one year

141Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit：RMB

Item Closing balance Opening balance

Long-term borrowings due within one year (Note (V) 34) 3882358841.34 586589318.45

Lease liabilities due within one year (Note (V) 35) 176041852.76 180403223.06

Long-term payables due within one year 25088.98 38147.40

Total 4058425783.08 767030688.91

33. Other current liabilities

Unit: RMB

Item Closing balance Opening balance

Output VAT to be transferred 329937625.83 377117275.65

Total 329937625.83 377117275.65

34. Long-term borrowings

Unit: RMB

Item Closing balance Opening balance

Pledged loan (Note 1) 398403527.78 1033059164.49

Credit loan (Note 2) 4711743935.01 4672715153.96

Less：Long-term loans due within one year (Note (V) 32) 3882358841.34 586589318.45

Total 1227788621.45 5119185000.00

Note 1: At the end of the reporting period the pledged loan was mainly obtained by the Group with all the rights and

benefits under related PPP projects pledged. The maturity date interval is from October 10 2025 to November 5 2031

and the annual interest rate ranges from 3.55% to 3.65%.Note 2: At the end of the reporting period the maturity period of credit loan is from July 1 2025 to February 7 2029 and

the annual interest rate ranges from 1.75% to 3.40%

35. Lease liabilities

Unit: RMB

Item Closing balance Opening balance

Lease liabilities 492547276.51 555835972.74

Less: Lease liabilities due within one year (Note (V) 32) 176041852.76 180403223.06

Total 316505423.75 375432749.68

36. Provisions

Unit: RMB

Item Closing balance Opening balance

Product quality warranty 332953665.17 283376593.23

Return payment payable 21112475.60 21873456.48

Total 354066140.77 305250049.71

37. Deferred income

142Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit: RMB

Increase in current Decrease in current

Item Opening balance Closing balance

reporting period reporting period

Government Subsidies

874512073.53222472816.29252764486.08844220403.74

(Note (VIII) 1)

Total 874512073.53 222472816.29 252764486.08 844220403.74

38. Other non-current liabilities

Unit: RMB

Item Closing balance Opening balance

Contract liabilities (Note (V) 28) 143410893.98 74029948.84

Total 143410893.98 74029948.84

39. Share capital

Unit: RMB

Changes for the current reporting period

Opening

Closing balance

balance New issue Bonus Restricted shares

Others Subtotal

of shares issue buy-back

Total shares 9233198326.00 - - - - - 9233198326.00

40. Capital reserves

Unit: RMB

Increase in the current Decrease in the current

Item Opening balance Closing balance

reporting period reporting period

Share premium 5560159545.00 - - 5560159545.00

Other capital reserves 621484720.06 61736642.34 - 683221362.40

Total 6181644265.06 61736642.34 - 6243380907.40

Note: The increase in other capital reserve for the period of RMB41311523.21 is formed by share-based payment settled

by equity; RMB20425119.13 is formed by the change in other equity interests of the investee in the long-term equity

investment accounted for by the equity method.

41. Treasury shares

Unit: RMB

Increase in the current Decrease in the current

Item Opening balance Closing balance

reporting period reporting period

Outstanding shares 310044296.12 1538486901.95 - 1848531198.07

Total 310044296.12 1538486901.95 - 1848531198.07

Note: The increase in treasury shares by RMB 1538486901.95 is due to the company repurchasing 52418640 shares

through concentrated bidding transactions using its own funds. The repurchased shares are held in the company’s stock

buyback dedicated securities account.

42. Other comprehensive income

Unit: RMB

143Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Amounts occurred in the current reporting period

Less: transfer

The before- to current

income-tax Less: Attributable to Attributable to

Opening period P/L

Item amount incurred income owner of the minority Closing balance

balance from previous

during the tax parent company shareholders

current other expense (after tax) (after tax)

reporting period comprehensiv

e income

Other incomes

that may be

reclassified

(111510486.21)200301615.25--133339313.9166962301.3421828827.70

subsequently

to profit or

loss

Included:

Effect on

translation of

financial

(111510486.21)200301615.25--133339313.9166962301.3421828827.70

statements

denominated

in foreign

currencies

Other

comprehensiv (111510486.21) 200301615.25 - - 133339313.91 66962301.34 21828827.70

e income

43. Surplus reserves

Unit: RMB

Increase in the Decrease in the

Item Opening balance current reporting current reporting Closing balance

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 Company's Articles of Association the

parent company shall withdraw the statutory surplus reserve fund at 10% of the annual net profit and when the

accumulated amount of the statutory surplus reserve fund reaches more than 50% of the registered capital it may not be

withdrew. The statutory surplus reserve can be used to make up for losses or increase the share capital after approval. The

statutory surplus reserves of the Company amount to RMB 4715460312.00 which has reached more than 50% of the

Company’s share capital.

44. Retained earnings

Unit: RMB

Item First half of 2025 First half of 2024

Retained earnings at beginning of period 60959912942.15 57136620244.01

Add: Net profit attributable to owners of the Company for

5657349798.685064118857.29

the current reporting period

Less: Transfer to surplus reserve - -

Dividends payable on common shares (Note) 6430241489.00 8397540837.90

Retained earnings at the end of the current reporting period 60187021251.83 53803198263.40

Note: According to the resolution of 2024 Annual General Meeting held on May 9 2025 based upon the total capital

share of the Company less the total shares held in the company’s repurchase account on the equity distribution date for

each 10 common shares the Company distributed cash dividends of RMB7.00 (tax inclusive) the rest of retained

earnings were all carried forward for future distributions.

144Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

45. Revenue and operating costs

45.1 Revenue and operating cost

Unit: RMB

First half of 2025 First half of 2024

Item

Revenue Cost Revenue Cost

Major business 41525014671.51 22781230283.00 40917942552.86 22556478986.50

Other business 293025416.93 138269156.04 291153653.50 175862855.23

Total 41818040088.44 22919499439.04 41209096206.36 22732341841.73

45.2 Revenue (categorized by product or business type)

Item First half of 2025 First half of 2024 (Restated)

Products and services for main business (Note) 29271794689.37 30229701063.88

Constructions of main business 780316256.46 651214618.73

Innovative businesses 11765929142.61 10328180523.75

Including: Robotic business 3138354805.04 2744389603.14

Smart home business 2752441041.15 2448684604.42

Auto electronics business 2352287642.16 1605885368.24

Thermal imaging business 2008057842.03 1829997676.77

Storage business 1033275636.44 1311887493.34

Other innovative businesses 481512175.79 387335777.84

Total 41818040088.44 41209096206.36

Note: Main business refers to the business parts other than the innovative businesses.

45.3 Major business (by business type)

Unit: RMB

First half of 2025

Item

Revenue Cost

Product sales 39486263262.00 21782593005.45

Construction contract 780316256.46 587229933.62

Provide services 1258435153.05 411407343.93

Total 41525014671.51 22781230283.00

45.4 Major business (by the time of revenue recognition)

Unit: RMB

First half of 2025

Item

Revenue Cost

Recognized at a point in time 39486263262.00 21782593005.45

Recognized over time 2038751409.51 998637277.55

Total 41525014671.51 22781230283.00

145Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

46. Business taxes and surcharges

Unit: RMB

Item First half of 2025 First half of 2024

City construction and maintenance tax 148356355.71 151816573.26

Real estate tax 72692986.17 47598375.46

Education surcharges 64211995.27 66319653.41

Local education surcharges 42807996.85 44213102.45

Stamp duty 36467533.81 36207653.33

Tax on use of land 12725051.59 11506221.38

Tax on use of vehicle and vessel 72047.06 83439.17

Others 1578727.27 1555391.96

Total 378912693.73 359300410.42

47. Financial expenses

Unit: RMB

Item First half of 2025 First half of 2024

Interest expenses 96167687.78 240795611.48

Interest expense on lease liabilities 10944560.30 16733448.67

Less: Interest income 281621810.18 617390094.88

Foreign exchange losses (gains) (606543396.00) 81443309.39

Less: Capitalized specific loan interests and foreign

-5815514.68

exchange differences on specific loan

Others 41684543.70 34044538.30

Total (739368414.40) (250188701.72)

48. Other income

Unit: RMB

Item First half of 2025 First half of 2024

VAT refund 797785002.36 836335027.54

Special subsidies 347251070.73 351147745.61

Others 35635160.79 47196900.37

Total 1180671233.88 1234679673.52

49. Investment income (losses)

Unit: RMB

Item First half of 2025 First half of 2024

Long-term equity investment gains (losses) based on the equity method 4673722.38 (78368251.31)

Investment gains (losses) from disposal of derivative financial assets (41578674.25) (26264330.79)

Investment gains (loss) from the disposal of long-term equity investments. 224079.88 -

Investment gains (loss) from the derecognition of financial assets measured at

49420.00-

amortized cost.Others 470396.18

-

Total (36631451.99) (104162185.92)

50. Gains (losses) from changes in fair values

Unit: RMB

146Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Sources of gains (losses) from changes in fair values First half of 2025 First half of 2024

Gains (losses) on the changes in fair value of derivative financial assets (26750323.93) 6775026.08

Gains (losses) from changes in fair value of other non-current financial assets 37607852.79 12581839.26

Gains (losses) on the changes in fair value of derivative financial liabilities (53974972.19) 31032277.28

Total (43117443.33) 50389142.62

51. Credit impairment gains (losses)

Unit: RMB

Item First half of 2025 First half of 2024

Credit impairment gains (losses) of notes receivable 1609678.20 1022542.63

Credit impairment gains (losses) of accounts receivable (326139164.92) (361907447.88)

Credit impairment gains (losses) of other receivables (1616798.40) (4470550.60)

Credit impairment gains (losses) of long-term receivables (52547886.25) (54064790.38)

Total (378694171.37) (419420246.23)

52. Impairment gains (losses) of assets

Unit: RMB

Item First half of 2025 First half of 2024

Gains (losses) on inventory devaluation (205498860.45) (203890134.45)

Gains (losses) on impairment of fixed assets。 (4245701.67) -Gains (losses) on contract assets impairment (including the portion included in other

1178355.48(218792.98)

non-current assets)

Total (208566206.64) (204108927.43)

53. Non-operating income

Unit: RMB

Item The amount booked into current period First half of 2025 First half of 2024

non-recurring profits and losses

Fines and confiscations 27598142.65 27691136.30 27598142.65

Government subsidies 1294315.29 560762.64 1294315.29

Others 4064739.98 8551822.93 4064739.98

Total 32957197.92 36803721.87 32957197.92

54. Non-operating expenses

Unit: RMB

The amount booked into current period non-

Item First half of 2025 First half of 2024

recurring profits and losses

Local water conservancy construction fund 1721616.80 1655486.04 -

Others 5600817.73 10591560.87 5600817.73

Total 7322434.53 12247046.91 5600817.73

55. Income tax expenses

Unit: RMB

Item First half of 2025 First half of 2024

Current income tax expenses 1213540999.19 1019741807.14

Deferred income tax expenses (95153343.99) (19198745.64)

Differences in filing and payment of income tax in previous reporting years (358973681.46) (339687179.69)

147Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Item First half of 2025 First half of 2024

Total 759413973.74 660855881.81

56. Notes to consolidated cash flow statement items

56.1 Cash relating to operating activities

Other cash receipts relating to operating activities

Unit: RMB

Item First half of 2025 First half of 2024

Interest income 233121669.73 562225054.99

Government subsidies 318253716.23 232080464.37

Others 261580950.83 287369792.62

Total 812956336.79 1081675311.98

Other cash payments relating to operating activities

Unit: RMB

Item First half of 2025 First half of 2024

Office expenses and business expenses 953595728.54 942944604.61

Advertising and Selling services 769106416.13 756539170.44

R&D expenses 644800758.58 708840100.60

Travelling expenses 378323798.80 385658461.60

Shipping and transportation expenses 197908262.99 222787187.81

Rental expenses 43518098.53 36886482.65

Others 374687982.00 419191141.16

Total 3361941045.57 3472847148.87

56.2 Cash relating to investing activities

Other cash receipts relating to investing activities

Unit: RMB

Item First half of 2025 First half of 2024

Receipts of financing lease payments 35361878.15 43213496.63

Net Cash Received from Acquiring Subsidiaries and Other

22949177.71-

Business Units (Notes (V) 57(2))

Total 58311055.86 43213496.63

56.3 Cash relating to financing activities

Other cash payments relating to financing activities

Unit: RMB

Item First half of 2025 First half of 2024

Repurchase of outstanding shares 1538486901.95 -

Repayment of lease liabilities 104168573.61 139467522.24

Consideration paid for acquisition of minority interests - 10380041.54

Repurchase of restricted shares - 2721675044.32

Others - 6155000.00

Total 1642655475.56 2877677608.10

148Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

57. Supplementary information about cash flow statement

57.1 Supplementary information about cash flow statement

Unit: RMB

Supplementary information First half of 2025 First half of 2024

1. Reconciliation of net profit to cash flows from operating activities:

Net profit 6281476630.83 5640664710.62

Add: Impairment losses of assets 208566206.64 204108927.43

Credit impairment losses 378694171.37 419420246.23

Fixed assets depreciation 778654426.95 661432367.20

Amortization of right-of use assets 102884841.39 142360590.66

Amortization of intangible assets 52897969.98 49846847.99

Amortization of Long-term deferred expenses 46361111.95 46913850.89

Losses (gains ) on disposal of fixed assets intangible assets and other long-

(7386351.06)11772875.69

term assets

Obsolescence losses (gains) from fixed assets 37218.90 173873.26

Losses (gains) from changes in fair value 43117443.33 (50389142.62)

Financial expenses 53314962.31 141874947.35

Investment losses (gains) 36680871.99 104162185.92

Share-based payment based on equity settlement 56631332.08 732525154.53

Decrease (increase) of restricted funds (67101426.08) 37887743.86

Decrease (Increase) in deferred income tax assets (114855728.16) (36396098.44)

Increase (decrease) in deferred income tax liabilities 19702384.17 26114618.42

Decrease (increase) in inventories (251612593.04) (12953207.87)

Decrease (increase) in operating receivables 3595520825.49 (1468125265.31)

Increase (decrease) in operating payables (5840272991.36) (6721403222.83)

Increase (decrease) in deferred income (30291669.79) (119628043.88)

Net cash flows from operating activities 5343019637.89 (189636040.90)

2. Net changes in cash and cash equivalents:

Closing balance of cash 30998547844.79 33954198101.43

Less: Opening balance of cash 36053042380.29 49427967355.78

Add: Closing balance of cash equivalents - -

Less: Opening balance of cash equivalents - -

Net increase (decrease) in cash and cash equivalents (5054494535.50) (15473769254.35)

57.2 Constituents of cash and cash equivalents

Unit: RMB

Amount

The cash or cash equivalents paid for the business combination in the current period. -

Among them: Zhejiang Haishihuayue Digital Technology Co. Ltd. -

Less: Cash and cash equivalents held by subsidiaries at the acquisition date 22949177.71

Among them: Zhejiang Haishihuayue Digital Technology Co. Ltd. 22949177.71

Net cash paid for acquisition of subsidiaries (22949177.71)

Included in: Cash received from other investing activities 22949177.71

149Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

57.3 Constituents of cash and cash equivalents

Unit: RMB

Item Closing balance Opening balance

Cash 30998547844.79 36053042380.29

Including: Cash on hand 879446.96 682023.34

Bank deposit for payment at any time 30857335935.34 35933926817.28

Other monetary capital for payment at any time 140332462.49 118433539.67

Cash equivalents - -

Closing balance of cash and cash equivalents 30998547844.79 36053042380.29

58. Monetary items of foreign currencies

Unit: RMB

Balance in foreign currency at Exchange rate for Balance of RMB converted at the

Item

the end of the reporting period conversion end of the reporting period

Cash and bank balances

Including: USD 441931660.24 7.1586 3163611983.02

EUR 52257587.19 8.4024 439089150.62

Accounts receivable

Including: USD 342454590.69 7.1586 2451495432.91

EUR 139676681.38 8.4024 1173619347.63

Accounts payable

Including: USD 29547109.77 7.1586 211515940.00

EUR 429730.65 8.4024 3610768.81

59. Lease

59.1 As lessee

The company leases a number of assets including houses and buildings s general-purpose equipment special-purpose equipment and

transportation 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

RMB53291060.46 (the first half of 2024: RMB47090864.02).The total lease-related cash outflows for the reporting period is RMB 157459634.07 (the first half of 2024: RMB186558386.26).

59.2 As a lessor

Operating lease as a lessor

Unit: RMB

Including: income related to variable lease payments

Item Income from leasing

that are included in lease receipts

Special-purpose equipment 47644977.63 -

Total 47644977.63 -

The Group's operating lease as a lessor relates to Special-purpose equipment.

150Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Finance lease as a lessor

Unit: RMB

Income related to variable lease

Item Profits on sales Profits on financing payments that are not included

in net lease investments

Special-purpose equipment -

7743409.592077132.08

finance lease

Total 7743409.59 2077132.08 -

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 under non-common control

1.1 Business combination under non-common control at the reporting period

Haishihuayue

On January 14 2020 the Group together with Taizhou Huangyan Broadnet Co. Ltd. (hereinafter referred to as

"Huangyan Broadnet") and Taizhou Huangyan Science and Technology Innovation Investment Co. Ltd. (hereinafter

referred to as "Huangyan Sci-Tech") jointly established Haishihuayue with respective equity interests of 51% 29%

and 20%. The equity interests are consistent with the voting rights each shareholder has at the shareholders’ meeting.According to the articles of association of Haishihuayue all matters require approval by shareholders representing

more than two-thirds of the voting rights thus the Group Huangyan Broadnet and Huangyan Sci-Tech jointly

controlled Haishihuayue. On February 14 2025 the Haishihuayue shareholders’ meeting resolved to revise the

articles of association changing the provision that major matters relating to the company’s development strategy

and long-term planning must be approved by shareholders representing more than two-thirds of the voting rights to

approval by shareholders representing more than one-half of the voting rights. As a result the Group can now control

Haishihuayue’s financial and operating decisions and holds substantive control over it. Therefore Haishihuayue has

been included in the consolidated financial statements of the Group.Unit: RMB

Income of Net profit (loss)

Share acquiree from of acquiree from

Basis for

Name of the Month of ration of Methods for Date of the acquisition the acquisition

Cost of acquisition determining the

acquiree acquisition acquisition acquisition acquisition data to the end data to the end

(%) acquisition of the reporting of the reporting

date.period period

Changes in Obtain control

Haishihuayue Feb 2025 14154413.00 51.00 Feb 14 2025 26207524.56 1916840.47

voting rights right

1.2 Cost of business combination and goodwill

Unit: RMB

Cost of business combination Haishihuayue

Cash -

Fair value of equity held before the acquisition date 14154413.00

Total merger cost 14154413.00

Less: Fair value share of identifiable net assets acquired 14154413.00

Goodwill -

151Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

1.3 Identifiable assets and liabilities of the acquiree on the acquisition date.

Unit: RMB

Haishihuayue (Note)

Fair value on the date of acquisition Book value on the date of acquisition

Assets:

Cash and bank balances 24930476.46 24930476.46

Notes receivable 1242250.00 1242250.00

Accounts receivable 40297545.82 40297545.82

Prepayments. 46794.09 46794.09

Other receivable 1070887.39 1070887.39

Inventories 8021077.90 8021077.90

Contract assets 45861982.11 45861982.11

Other current assets 2821926.06 2821926.06

Fixed assets 185184.00 185184.00

Deferred tax assets 580174.88 580174.88

Total assets 125058298.71 125058298.71

Liabilities:

Notes payable 5080235.36 5080235.36

Account payable 78999910.54 78999910.54

Contract liabilities 3640940.95 3640940.95

Payroll payable 591578.22 591578.22

Taxes payable 611150.65 611150.65

Other payable 1076140.12 1076140.12

Other current liabilities 7304591.88 7304591.88

Total liabilities 97304547.72 97304547.72

Net assets acquired: 27753750.99 27753750.99

Less: Minority interest 13599337.99 13599337.99

Net assets obtained 14154413.00 14154413.00

Note: The Group’s management believes that the fair value of Haishihuayue’s identifiable assets and liabilities is close

to their book value therefore the fair value of the relevant identifiable assets and liabilities is determined based on the

book value.

2. Business consolidation for other reasons - scope changes

Newly established subsidiaries which are included in the scope of consolidation in the reporting period are as follows:

Name for the subsidiaries Date of establishment Registration capital

Guangzhou Hikvision Digital Technology Ltd. April 2025 RMB20000000

Hangzhou Micro Imaging Intelligent Control

May 2025 RMB100000000

Technology Ltd.Hikvision Kyrgyzstan Limited Liability

May 2025 KGS8740000

Company

Note: At the end of the period these three companies above had not completed the payment of their registration capital.

152Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

VII. Interest in other entities

1. Equity in subsidiaries

Composition of major subsidiaries of the Group

Name Location of operation Place of registration Nature of business Acquisition method

Hangzhou Hikvision System Technology Ltd. Hangzhou Hangzhou Zhejiang System integration Technology development Establishment

Hangzhou Hikvision Technology Ltd. Hangzhou Hangzhou Zhejiang Manufacture Establishment

Hangzhou EZVIZ Network Co. Ltd. Hangzhou Hangzhou Zhejiang Technology development Establishment

Hangzhou EZVIZ Software Ltd. Hangzhou Hangzhou Zhejiang Technology development Establishment

Hangzhou Hikrobot Co. Ltd. Hangzhou Hangzhou Zhejiang Technology development Establishment

Hangzhou Haikang Intelligent Technology Ltd. Hangzhou Hangzhou Zhejiang Technology development Establishment

2. During the reporting period the Group did not engage in any transactions where the ownership interest in subsidiaries changed but control was still maintained.

3. Equity in joint ventures or associates

3.1 Aggregated financial information of insignificant joint-ventures and associates

Unit：RMB

Closing balance / Amount for the first half of 2025 Opening balance / Amount for the first half of 2024

Associates:

The aggregate book value of investments in associates 613732940.46 598565831.26

The aggregate amount of the following items calculated based on the Company's equity share percentage

of the associates

- Net income 11202773.52 3541678.25

- Other comprehensive income - -

- Total comprehensive income 11202773.52 3541678.25

Joint Ventures:

153Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Closing balance / Amount for the first half of 2025 Opening balance / Amount for the first half of 2024

Total investment book value 877638556.25 928657559.53

The aggregate amount of the following items calculated based on the Company's equity share percentage

of the associates

- Net gain (loss) (6529051.14) (81909929.56)

- Other comprehensive income - -

- Total comprehensive income (loss) (6529051.14) (81909929.56)

3.2 There are no significant restrictions on the ability of the joint ventures or associates to transfer funds to the Group.

3.3 There are no unrecognized commitments related to investment in joint ventures.

3.4 The Group has no contingent liabilities related to investments in joint ventures or associates.

VIII. Government subsidiaries

1. Liabilities relating to government subsidiaries

Unit: RMB

Amount at the open of the Transfer to other income in the Amount at the close of the

Liabilities Increase in the reporting period Asset-related /revenue-related

reporting period reporting period reporting period

Special subsidy 814219130.60 80363799.44 80906700.80 813676229.24 Asset-related

Special subsidy 60292942.93 142109016.85 171857785.28 30544174.50 Revenue-related

Total 874512073.53 222472816.29 252764486.08 844220403.74

2. Government subsidy recognized as gain or loss in the reporting period

154Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit: RMB

Subsidy Projects First half of 2025 First half of 2024

VAT refund 797785002.36 836335027.54

Special subsidy 348545386.02 351708508.25

Total 1146330388.38 1188043535.79

155Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

IX. Risks associated with financial instrument

The Group'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 some of other non-

current assets borrowings notes payable accounts payable other payables long-term payables 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.Unit: RMB

Closing balance of the current Opening balance of the current

Items

reporting period reporting period

Financial assets：

Measured at fair value through current profit and loss

Derivative financial assets 25600.00 26775923.93

Other non-current financial assets 514607935.55 472000082.76

Measured at fair value through other comprehensive income

Receivables for financing 2249443298.00 2291648244.05

Measured at amortized cost

Cash and bank balances 31286076526.36 36271488337.03

Notes receivable 2418540558.05 2722596142.46

Accounts receivable 34838491117.63 37910128735.42

Other receivables 447648290.70 531344606.50

Other non-current assets 51370.95 51370.95

Long-term receivables (including those due within one year) 1059420654.48 1274780835.91

Financial liabilities:

Measured at fair value through current profit and loss

Derivative financial liabilities 55839882.40 1874341.64

Measured at amortized cost

Short-term borrowings 1530631987.86 1031895812.62

Notes payable 552245205.69 1197128746.56

Accounts payable 15820376447.17 20185303107.69

Other payables 3348369395.60 3528359044.48

Long-term borrowings (including those due within one year) 5110147462.79 5705774318.45

Long-term payables (including those due within one year) 9808880.46 9818368.20

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 of the current reporting period

156Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

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 China 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.At the end of the reporting period except for monetary items of foreign currencies set out in Note (V) 58 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

Currencies

Closing balance Opening balance Closing balance Opening balance

USD 5615107415.93 6115192672.24 211515940.00 491667514.41

EUR 1612708498.25 1636384469.30 3610768.81 6610732.62

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 and

etc. 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

First half of 2025 First half of 2024

Change in foreign exchange rates Effect on shareholders' Effect on shareholders'

Effect on profit Effect on profit

equity equity

5% appreciation of USD against

270179573.80270179573.80192964852.87192964852.87

functional currency

5% depreciation of USD against

(270179573.80)(270179573.80)(192964852.87)(192964852.87)

functional currency

5% appreciation of EUR against

80454886.4780454886.4762001009.8862001009.88

functional currency

5% depreciation of EUR against

(80454886.47)(80454886.47)(62001009.88)(62001009.88)

functional currency

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

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.

157Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

The Group determines the relative proportion of fixed interest rate contracts and floating interest rate contracts based on

the prevailing market environment. On June 30 2025 the Group's total long-term and short-term interest-bearing debts

bearing fixed interest rates amounted to RMB5935519860.03 (December 31 2024: RMB5538078464.46). The total

amount of long-term and short-term interest-bearing debts bearing floating interest rates is RMB664522934.33

(December 31 2024: RMB1165181524.22).

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 risk

exposure due to changes in price of financial instruments as a result of change in valuation assumptions is not significant

accordingly no sensitivity analysis is conducted.

1.2 Credit Risk

As of June 30 2025 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 balance (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

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

158Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

related expected credit loss measurement see Note ((V). 12).With respect to bank acceptance bills and receivables debt certificates the Company believes that there is no significant

credit risk and will not incur any significant losses due to the default of the counterparty. 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

June 30 2025

Within one year 1-5 years More than five years Total

Non-derivative financial liabilities

Short-term borrowings 1566225378.14 - - 1566225378.14

Notes payable 552245205.69 - - 552245205.69

Accounts payable 15820376447.17 - - 15820376447.17

Other payables 3348369395.60 - - 3348369395.60

Long-term borrowings (including those due

3990135610.561190223062.1382707550.005263066222.69

within one year)

Long-term payables (including those due

25773.9135156.14-60930.05

within one year)

Derivative financial instruments 55839882.40 - - 55839882.40

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 - 2193629015.60 514607935.55 2708236951.15

159Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

(I) Derivative financial assets - 25600.00 - 25600.00

1. Financial assets measured at fair value

-25600.00-25600.00

through profit and loss

(II) Other non-current financial assets - - 514607935.55 514607935.55

1. Financial assets measured at fair value

--514607935.55514607935.55

through profit and loss

(III) Receivables for financing - 2249443298.00 - 2249443298.00

1. Financial assets measured at fair value

-2249443298.00-2249443298.00

through other comprehensive income

Total assets measured continuously at fair

-2249468898.00514607935.552764076833.55

value

(IV) Derivative financial liabilities - 55839882.40 - 55839882.40

1. Financial liabilities measured at fair

-55839882.40-55839882.40

value through profit and loss

Total liabilities measured continuously at

-55839882.40-55839882.40

fair value

2. The valuation techniques and important parameters used for the Level 2 fair value measurement item

Unit: RMB

Fair value at

Estimation technique Inputs

June 30 2025

Forward exchange rate

Discounted cash flow

Derivative financial assets 25600.00 Discounted rate that reflects the

approach

credit risk of counterparty

Forward exchange rate

Discounted cash flow

Derivative financial liabilities 55839882.40 Discounted rate that reflects the

approach

credit risk of counterparty

Discounted cash flow Discounted rate that reflects the

Receivables for financing 2249443298.00

approach credit risk of counterparty

3. The valuation techniques and important parameters used for the Level 3 fair value measurement item

Unit: RMB

Fair value at

Items Valuation techniques Inputs

June 30 2025

Comparable public companies' PB

Other non-current financial assets-- Market approach/Income (price/book value) ratio within the

514607935.55

Investment in equity instruments approach same industry/Future cash flows

Discount rate

4. The adjustment information between the opening and closing book value of the Level 3 fair value measurement

item

Unit: RMB

Other non-current financial assets Amount

Book value on January 1 2025 472000082.76

Increase in the current reporting period 5000000.00

Changes in fair value booked into profit and loss during the current reporting period 37607852.79

Book value on June 30 2025 514607935.55

The total amount included in profit or loss in the first half of 2025 includes unrealized gains of RMB37607852.79 (first

half of 2024: RMB12581839.26) related to financial assets measured at fair value at the end of the current reporting

period and such gains or losses are included in the gains or losses from changes in fair value.

160Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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 non-current liabilities due within one year long-term borrowings long-term payables etc. book value of

which approximates to its fair value.XI. Related party relationships and transactions

1. Information on parent company of the Company

Shareholding ratio of Percentage of voting

Place of Nature of

Name Registered capital parent company in the rights of parent company

registration business

Company (%) to the Company (%)

China Electronics Technology

Hangzhou Industrial

HIK Group Co. Ltd. RMB845 million 37.01 37.01

Zhejiang investment

(CETHIK)

The actual controlling party of the Company is CETC.

2. Information on the subsidiaries of the Company

For details of the subsidiaries of the Company see (Note (VII.1)).

3. Information on the joint ventures and associates 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

Maxio Technology (Hangzhou) Co. Ltd. and its subsidiaries (Note 1) Associate

Zhiguang Hailian Big Data Technology Ltd. and its subsidiaries (Note 1) Associate

Jiaxing Haishi JiaAn Zhicheng Technology Ltd. (Note 1) Associate

Sanmenxia Xiaoyun Vision Technology Ltd. (Note 1) Associate

Beijing Taifang Technology LLC. and its subsidiaries (Note 1) Associate

Jiangsu Haishi Kaitai Technology Ltd. (Note 1) Associate

Guangxi Haishi City Operation Management Ltd. and its subsidiaries (Note 2) Joint venture

Shenzhen Haishi City Service Operation Ltd. and its subsidiaries (Note 2) Joint venture

Xuzhou Kangbo City Operation Management Service Ltd. (Note 2) Joint venture

Yunnan Yinghai Parking Service Ltd. (Note2) Joint venture

Zhejiang City Digital Technology Ltd. (Note 2) Joint venture

Zhejiang Haishihuayue Digital Technology Ltd. (Note 3) Joint venture

Note 1: Those companies are collectively referred to as "associates" in the following disclosures of related party

transactions receivables from related parties and payable from related parties.

161Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Note 2: 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.Note 3: From January 2020 to February 2025 Haishihuayue was a joint venture of the Company. In February 2025 the

Company included Haishihuayue in its consolidated financial statements. The company remained an affiliate of the Group

during the period from January 2025 to February 2025.

4. Information on other related parties

Name (Note 1) Relationship

Close family member of the Company’s above 5% shareholder(s)

Shanghai Fullhan Microelectronics Co. Ltd. and its subsidiaries act(s) as controller(s) or person(s) acting in concert with the

controller(s) of this company

Close family member of the Company’s above 5% shareholder(s)

Guangdong Hutong Technology Ltd.acts as the director of this company

Shareholder(s) that hold(s) more than 5% shares of the Company

Shenzhen Guoteng'an vocational education Technology Ltd.serve(s) as the director(s) of this company

The Group's senior management serve(s) as director(s) of this

Confirmware Technology (Hangzhou) Co. Ltd. and its subsidiaries

company

Zhejiang Fast Line data fusion Information Technology Co. Ltd. The Group's senior management serve(s) as director(s) of this

and its subsidiaries company

Chengdu Guoshengtianfeng Network Technology Ltd. and its The Group's senior management serve(s) as director(s) of this

subsidiaries company

Shenzhen Wanyu Security Service Technology Ltd. and its The Group's senior management serve(s) as director(s) of this

subsidiaries company

The Group's independent director(s) serve(s) as director(s) of this

Ningbo Industrial Internet Research Institute Ltd.company

The Group's chairman(chairmen) of Board of the Supervisors

INESA Group Ltd. and its subsidiaries

was(were) the director(s) of this company

The Group's chairman(chairmen) of Board of the Supervisors

Shanghai Vico Precision Mold & Plastics Co.Ltd. (Note 2)

was(were) the independent director(s) of this company

The Group's chairman(chairmen) of Board of the Supervisors acts

Bank of Tianjin Co. Ltd. and its subsidiaries

as the independent director(s) of this company

Under common control of the actual controlling party of the

Subsidiaries of CETC (Note3)

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 Group's chairman of Board of the Supervisors once served as an independent director of the

company. Lu Jianzhong departed the company in June 2024. Therefore this company was still recognized as a related

party of the Company during 2024 and from Jan 2025 to June 2025.Note 3: Subsidiaries of CETC excluding Hikvision and its subsidiaries.

5. Related party transactions

5.1 Related party transactions regarding sales and purchases of goods provision of services and receiving services

Purchase of commodities / receiving of services:

Unit: RMB

Amount occurred in the Amount occurred in the first

Related party Transaction type

first half of 2025 half of 2024

Purchase of materials and

Subsidiaries of CETC 1034278846.14 988472383.82

receiving of services

Purchase of materials and

Joint ventures 4353416.21 2663322.56

receiving of services

Purchase of materials and

Associates 99577523.53 103780397.92

receiving of services

162Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Amount occurred in the Amount occurred in the first

Related party Transaction type

first half of 2025 half of 2024

Purchase of materials and

Other related parties 380085408.98 505168081.89

receiving of services

Total 1518295194.86 1600084186.19

Sales of commodities / rendering of services:

Unit: RMB

Amount occurred in the Amount occurred in the first

Related party Transaction content

first half of 2025 half of 2024

Sales of products and

Subsidiaries of CETC 60368573.76 83114384.62

rendering of services

Sales of products and

Joint ventures 7198061.83 22738452.57

rendering of services

Sales of products and

Associates 9331947.22 16232611.27

rendering of services

Sales of products and

Other related parties 11847614.71 10089490.65

rendering of services

Total 88746197.52 132174939.11

Fixed asset purchase and sales:

Amount occurred in the Amount occurred in the first

Related party Transaction content

first half of 2025 half of 2024

Subsidiaries of CETC Purchase fixed assets 5267436.42 -

Total 5267436.42 -

5.2 Related party lease

Unit: RMB

Rental fee confirmed in the first half of Rental fee confirmed in the first half

Lessor Type of leased assets

2025 of 2024

Subsidiaries of CETC House - 1670579.23

Total - 1670579.23

Rental income confirmed in the first Rental income confirmed in the first

Lessee Type of leased assets

half of 2025 half of 2024

Subsidiaries of CETC House 56319.31 -

Total 56319.31 -

5.3 Transactions from other related parties

Statement of capital deposits

Unit: RMB

Balance at the end

Related party Content of related Amount occurred in Amount occurred in

of the current Opening balance

(Note) party transaction the first half of 2025 the first half of 2024 reporting period

(Withdraw)

Subsidiaries of CETC (74324.75) 4000109400.99 (13329055.47) 4000183725.74

Deposit

Total (74324.75) 4000109400.99 (13329055.47) 4000183725.74

Note: Deposits placed by the Group in CETC Finance Co. Ltd. including time deposits of RMB 4000000000.00 at the

end of the period (beginning balance: RMB 4000000000.00) and current deposits of RMB 109400.99 (beginning

163Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

balance: RMB183725.74). Interest income earned on deposits during the period was RMB13230.81 (first half of 2024:

RMB8002865.36).Information on entrusted loan

During the current reporting period the Company issued entrusted loans of RMB2345 million (first half of 2024:

RMB2290 million) to its subsidiaries through CETC Finance Co. Ltd. and paid transaction fee of RMB234500.00 (first

half of 2024: RMB229000.00) to CETC Finance Co. Ltd.Information on entrusted management

On 10 April 2024 EZVIZ Network a subsidiary of the Group and CETHIK the parent company of the Group entered

into an entrusted management agreement. EZVIZ Network paid the entrusted management fee to CETHIK. During the

period the amount of the entrusted management fee was 237453.31 (first half of 2024: RMB117368.41).

6. Receivables from related parties and payables to related parties

6.1 Receivables from related parties

Unit: RMB

Closing balance Opening balance

Item Related Party

Account balance Bad debt provision Book value Bad debt provision

Notes receivable

and accounts Subsidiaries of CETC 27882233.26 146903.78 52626277.73 374735.27

receivable

Notes receivable

and accounts Joint ventures - - 13352890.19 -

receivable

Notes receivable

and accounts Associates 12317260.31 - 4392879.50 -

receivable

Notes receivable

and accounts Other related parties 1533087.37 - 1908892.17 -

receivable

Total 41732580.94 146903.78 72280939.59 374735.27

Unit: RMB

Closing balance Opening balance

Item Related Party

Account balance Bad debt provision Book value Bad debt provision

Account

Subsidiaries of CETC 440795644.14 146827220.35 486103594.64 150460535.70

receivables

Account

Joint ventures 16969252.56 2479529.78 26582054.99 2439410.80

receivables

Account

Associates 48369551.79 11194263.85 67058711.03 10008346.67

receivables

Account

Other related parties 8529485.63 288346.08 5254943.87 209669.50

receivables

Total 514663934.12 160789360.06 584999304.53 163117962.67

Unit: RMB

Item Related Party Closing balance Opening balance

Prepayments Subsidiaries of CETC 906368.11 1357188.83

Prepayments Associates 5133018.32 667500.73

Total 6039386.43 2024689.56

164Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Unit: RMB

Closing balance Opening balance

:Item Related Party

Account balance Bad debt provision Book value Bad debt provision

Other receivables Subsidiaries of CETC 683113.25 501266.82 675015.40 503901.99

Other receivables Joint ventures 30682.30 217.84 45506.53 373.15

Total 713795.55 501484.66 720521.93 504275.14

Unit: RMB

Closing balance Opening balance

Item Related Party

Account balance Bad debt provision Book value Bad debt provision

Long-term receivables Subsidiaries

(including those due within of CETC - - 119906.12 983.23

one year)

Long-term receivables

(including those due within Joint ventures 25180015.49 1259881.31 27457234.23 1153621.48

one year)

Total 25180015.49 1259881.31 27577140.35 1154604.71

6.2 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 Payable Subsidiaries of CETC 8909579.77 5438628.32

Notes Payable Other related parties 3538943.66 1570383.71

Total 12448523.43 7009012.03

Unit: RMB

Item Related party Closing balance Opening balance

Account payable Subsidiaries of CETC 558236833.29 593917797.74

Account payable Joint ventures 1206403.77 1224799.99

Account payable Associates 71357379.22 114410719.92

Account payable Other related parties 195559296.34 442181100.83

Total 826359912.62 1151734418.48

Unit: RMB

Item Related party Closing balance Opening balance

Contract liabilities Subsidiaries of CETC 5166560.73 4070684.79

Contract liabilities Joint ventures 522660.33 293305.79

Contract liabilities Associates 46288.96 601534.30

Contract liabilities Other related parties 13583.70 13583.70

Total 5749093.72 4979108.58

Unit: RMB

165Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Item Related party Closing balance Opening balance

Other payables Subsidiaries of CETC 6236354.53 6619267.43

Other payables Joint ventures 9000.00 59892.75

Other payables Associates 719805.00 696315.00

Other payables Other related parties 369000.00 413000.00

Total 7334159.53 7788475.18

\

Unit: RMB

Item Related party Closing balance Opening balance

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

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 its branches and

subsidiaries and 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 its branches and subsidiaries and could participate in investment on

innovative business 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 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 Group 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.In December 2020 Co-Investment Staff signed a Supplemental Agreement of Entrusted Investment Agreement (hereafter

referred to as "Supplemental Agreement") with Hikvision Labor Union. On December 25 2020 the Company held the

20th meeting of the 4th session of the Board of Directors and reviewed and approved the Proposal on Amending the

Management Measures for Core Staff Co-Investment in Innovative Businesses. The new version of the Management

Measures for Core Staff Co-Investment in Innovative Business (hereinafter referred to as the "new version of the

Management Measures") added the confirmation of the shares held by employees in the co-investment plan and the rights

and interests indirectly held by employees in innovative business subsidiaries clarified the approach of the co-investment

shares after the employees lost or cancelled the co-investment qualification and added the Management Committee and

other systems.

166Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

On December 31 2020 the Executive Management Committee of the Co-investment Plan adopted the Implementation

Rules for the Management Measures for Core Staff Co-Investment in Innovative Businesses (hereinafter referred to as the

"new version of the Rules"). According to the new version of the Management Measures and the new version of the Rules

for the confirmed shares of plan A the waiting period is the fifth anniversary of the employee's work in the Company or

its subsidiaries. For the confirmed shares of plan B the waiting period is the fifth anniversary of the employee's work in

the innovative business subsidiary or its subordinate subsidiary company corresponding to the Plan B.

2. Information of the share-based payment through equity settlements

Scheme of Staff Co-Investment in Innovative Businesses

Unit: RMB

Scheme of Staff Co-Investment in Innovative Businesses

Method of determine the fair value of equity

Determined using the income approach on the grant date.instruments at the grant date

Recognition basis of the number of the equity

Determined by estimating the attrition rate for each vesting period.instruments qualified for vesting

Accumulative amount of share-based payment

through equity settlement and further included in the 993203130.47

capital reserve

Total amount of the expenses recognized according

to share-based payment through equity settlement in 56631332.08

the current reporting period

Among total amount of the expenses recognized according to share-based payment through equity settlement during the

current reporting period amount of RMB15319808.87 was due to share distributions to minority shareholders.

3. There is no share-based payment through cash settlements

4. There is no amendment and termination of share-based payment during the current reporting period.

XIII. Commitments and contingencies

1. Significant commitments

1.1 Capital commitments

Unit: 000 RMB

Closing balance Opening balance

Contracted but not yet recognized in financial statements

- Commitment on construction of long-term assets 4780553 4782225

- Commitment on external investments 2440 2440

Total 4782993 4784665

2. Contingencies

The Group has no significant contingencies to be disclosed.XIV. Events after the balance sheet date

1. Significant unadjusted events

As of August 1 2025 the Company has no significant events after the balance sheet date that need to be disclosed

167Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

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

Item First half of 2025 First half of 2024

External revenue generated in domestic area 26393423147.63 27029231758.69

External revenue generated in overseas area 15424616940.81 14179864447.67

Total 41818040088.44 41209096206.36

Unit: RMB

Item (Note) On June 30 2025 On January 1 2025

Non-current assets in domestic area 24898783711.39 24071063742.13

Non-current assets in overseas area 917347554.99 878754968.19

Total 25816131266.38 24949818710.32

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.

168Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

XVI. Notes to major items of financial statements of the parent company

1. Accounts receivable

1.1 Disclosure by age

Unit: RMB

Closing account balance Opening account balance

Within credit period 3268577734.94 2290185031.06

Within 1 year after exceeding credit period 22406051464.61 22956416334.33

1-2 years after exceeding credit period 444760136.07 445308144.39

2-3 years after exceeding credit period 259668470.66 276803705.22

3-4 years after exceeding credit period 196609507.75 220698222.82

Over 4 years after exceeding credit period 351044306.14 304329300.13

Subtotal 26926711620.17 26493740737.95

Less: Bad debts provision 765725976.70 760119868.00

Book value 26160985643.47 25733620869.95

1.2 Classification and disclosure by bad debts provision methods

Unit: RMB

169Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Closing balance Opening balance

Account balance Bad debts provision Book value Account balance Credit loss provision Book value

Category

Percentage Percentage Percentage Percentage

Amount Amount Amount Amount Amount Amount

(%)(%)(%)(%)

Provision

for bad

debts on a - - - - - - - - - -

single

basis

Provision

for bad

26926711620.17100.00765725976.702.8426160985643.4726493740737.95100.00760119868.002.8725733620869.95

debts by

portfolios

Total 26926711620.17 100.00 765725976.70 2.84 26160985643.47 26493740737.95 100.00 760119868.00 2.87 25733620869.95

Provision for bad debts by portfolios

Unit: RMB

Closing balance

Customer

Account balance Credit loss provision Proportion (%)

Subsidiaries in the Group 23142923897.54 - -

Portfolio A 2943.02 2943.00 100.00

Portfolio B 3783660749.71 765599003.80 20.23

Portfolio C 124029.90 124029.90 100.00

Total 26926711620.17 765725976.70 2.84

Description of accounts receivables accrued for bad debts provision by portfolios:

As part of the Company's credit risk management the Company divided account receivables into portfolio A portfolio B and portfolio C according risk attributes of

1 70Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

different business area and target and determines the expected credit loss for each portfolio with an impairment matrix based on the aging of accounts receivable over

the reporting period. With respect to account receivables arising from companies within the Group the Company considers that the credit risk is low and is not necessary

for bad debts provisions as payments are arranged by the Group according to the cash flow each companies within the Group. The aging information can reflect the

solvency of these three types of customers when the accounts receivable are due.

1.3 Provision for bad debts

Unit：RMB

Changes in the reporting period Translation

differences for

Item Opening balance Closing balance

Accrual/ recovery or reversal Transfer or write-off foreign currency

statements

Account receivables 760119868.00 5606108.70 - - 765725976.70

Total 760119868.00 5606108.70 - - 765725976.70

1.4 Top five debtors based on accounts receivable and contract assets (including other non-current assets) at the end of the reporting period

At the end of the reporting period the aggregate amount of the Company's top five debtors of account receivables and contract assets was RMB23078157644.25

(including accounts receivable RMB 23078157644.25 with no contract assets) accounting for 85.52% of the total account receivables and contract assets at the end

of the reporting period and the provision for bad debts amounted to RMB50022918.92.

2. Other receivables

171Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

2.1 Other receivables by aging

Unit: RMB

Item Closing balance Opening balance

Within contract period 5032026397.31 4373247408.09

Within 1 year 35653259.12 24122882.75

1-2 years 2740723.76 7395888.61

2-3 years 4557633.67 6172540.83

3-4 years 2927301.89 1215236.36

Over 4 years 727036.06 754319.10

Total 5078632351.81 4412908275.74

Less: Bad debt provision 6666630.27 7341101.03

Book value 5071965721.54 4405567174.71

2.2 Other receivables by nature of the payment

Unit: RMB

Nature Closing balance Opening balance

Payments by subsidiaries within the Group 4958765841.00 4305122194.83

Guarantee deposit 52510968.06 59508337.34

Temporary payments for receivables 42737063.08 38710852.68

Others 24618479.67 9566890.89

Total 5078632351.81 4412908275.74

172Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

2.3 Bad debt provision for other receivables

Unit：RMB

Changes in the reporting period Translation

differences for

Item Opening balance Closing balance

Accrual/ recovery or reversal Transfer or write-off foreign currency

statements

Other receivables 7341101.03 (674470.76) - - 6666630.27

Total 7341101.03 (674470.76) - - 6666630.27

2.4 Top five debtors based on other receivables at the close of the reporting period

At the end of reporting period the aggregate amount of the Company's top five debtors of other receivables was RMB3 992692172.62 accounting for 78.62% of

the total other receivables and the company did not make provision for bad debts here.

3. Long-term equity investment

Unit: RMB

Closing balance Opening balance

Item

Account balance Provisions Book value Account balance Provisions Book value

Investment in subsidiaries 8117452210.96 - 8117452210.96 8234997797.96 - 8234997797.96

Investments in associates and joint ventures 1211349467.17 - 1211349467.17 1251972687.05 - 1251972687.05

Total 9328801678.13 - 9328801678.13 9486970485.01 - 9486970485.01

1 73Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

3.1 Investment in subsidiaries

Unit：RMB

Write-off of Balance of

Increase during Decrease during impairment impairment loss

Name of investee Opening balance the current the current Closing balance provision during the provision at the end

reporting period reporting period current reporting of the current

period reporting period

Hangzhou Hikvision System Technology Ltd. 903765761.48 - - 903765761.48 - -

Hangzhou Hikvision Technology Ltd. 1116114606.67 - - 1116114606.67 - -

Hangzhou EZVIZ Network Co. Ltd. 61201821.95 - - 61201821.95 - -

Hangzhou EZVIZ Software Ltd. 32618406.05 - - 32618406.05 - -

Hangzhou Hikrobot Co. Ltd. 139418539.03 - - 139418539.03 - -

Hangzhou Haikang Intelligent Technology Ltd. 9032198.30 - - 9032198.30 - -

3.2 Investments in associates and joint ventures

Unit：RMB

Increase/Decrease during the current reporting period

Balance of

Investment

Other Declared cash impairment loss Other changes

Name of investee Opening balance income (losses) Additional Reduced comprehensi dividends or Provision for Closing balance provision at the end

recognized Others

Investments Investments ve income in equity profit impairment of the current

under the

adjustment distribution reporting period

equity method

1. Joint Ventures

Hangzhou Haikang

Intelligent Industrial

Equity Investment 868063887.91 - - (8130418.39) - 18912591.70 (49248130.84) - - 829597930.38 -

Fund Partnership

(L.P.)

Zhejiang City Digital

20077377.04--3589999.81-----23667376.85-

Technology Ltd.

174Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

Zhejiang

Haishihuayue Digital

13704580.92--449832.08----(14154413.00)--

Technology Ltd.(Note(V).13.Note 2)

Guangxi Haishi City

Operation 11449482.39 - - (831824.68) - - - - - 10617657.71 -

Management Ltd.Xuzhou Kangbo City

Operation

10845746.31--(1385270.45)-----9460475.86-

Management Service

Ltd

Others 4516484.96 - - (221369.51) - - - - - 4295115.45 -

Subtotal 928657559.53 - - (6529051.14) - 18912591.70 (49248130.84) - (14154413.00) 877638556.25 -

2. Associates

Zhiguang Hailian Big

24397944.42--2845098.32-----27243042.74-

Data Technology Ltd.Others 298917183.10 - - 5170778.27 - 2379906.81 - - - 306467868.18 -

Subtotal 323315127.52 - - 8015876.59 - 2379906.81 - - - 333710910.92 -

Total 1251972687.05 - - 1486825.45 - 21292498.51 (49248130.84) - (14154413.00) 1211349467.17 -

1 75Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

4. Revenue and operating costs

Unit：RMB

First half of 2025 First half of 2024 (restated)

Item

Revenue Cost Revenue Cost

Major business 9452576649.06 1672751742.36 9222842780.60 1775866027.97

Other business 1465595941.64 88699283.25 1666830401.26 119951720.54

Total 10918172590.70 1761451025.61 10889673181.86 1895817748.51

5. Investment income

5.1 Details of investment income

Unit：RMB

Item First half of 2025 First half of 2024

Long-term equity investment income measured by cost method 312300000.00 229430000.00

Investment income from holding debt investment 24625393.17 27424996.73

Long-term equity investment income (loss) accounted for by the equity 1486825.45

(74947950.25)

method

Total 338412218.62 181907046.48

XVII. Supplementary information

1. Items and amounts of non-recurring gains and losses

Unit：RMB

Item Amount Description

Profits and losses from disposal of non-current assets 7349132.16 /

The government subsidies included in the current reporting period

excluding government subsidies that are closely related to the

company's normal business operations comply with national

267638685.22/

policies and regulations are enjoyed in accordance with

determined standards and have a continuous impact on the

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 (84646697.58) /

enterprises as well as the gains or losses from the disposal of

these financial assets and liabilities.Investment income generated from the disposal of long-term

224079.88/

equity investments

Other non-operating income and expense except the items

29239300.73/

mentioned above

Impact of income tax (17869448.69) /

Impact of the minority interests (33585581.41) /

Total 168349470.31 /

176Hikvision 2025 Half Year Report

Notes to Financial Statements

For the reporting period from January 1 2025 to June 30 2025

The preparation basis of the non-recurring profit and loss statement

According to the provisions of the China Securities Regulatory Commission’s Explanatory Announcement No. 1 on

Company Information Disclosure for Publicly Offered Securities — Non-recurring Profit and Loss (Revised in 2023)

non-recurring gains and losses refer to gains or losses arising from transactions and events that are not directly related to

a company’s normal business operations as well as those that are related but due to their special nature and sporadic

occurrence affect the ability of financial statement users to make accurate judgments regarding 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

6.850.6150.615

Company

Net profit excluding non-recurring items of profit or loss

6.640.5970.597

attributable to ordinary shareholders of the Company

177Hikvision 2025 Half Year Report

Section IX Documents Available for Reference

1. The half year report was signed by the Company's legal representative.

2. 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.

3. Original copy of all the Company's documents and announcements were published on the newspapers

designated by CSRC within 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

August 2 2025

Note:

This document is a translated version of the Chinese version 2025 Half Year Report (2025 年半年度报告)

and the published announcements in the Chinese version shall prevail. The complete published Chinese

2025 Half Year Report may be obtained at www.cninfo.com.cn.

178