2025-04-25-深交所-海康威视_2024年年度报告（英文版）_370页_13mb

Summary of Hangzhou Hikvision Digital Technology Co., Ltd. 2024 Annual Report

Core Content Overview

The 2024 Annual Report of Hangzhou Hikvision Digital Technology Co., Ltd. (HIKVISION) provides a comprehensive review of the company's performance, strategic direction, and risk management during the reporting period from January 1, 2024, to December 31, 2024. The report highlights the company's commitment to innovation, international expansion, and digital transformation, while also outlining key financial results and potential risks.

Main Business and Strategic Focus

• Market Expansion: Hikvision actively expanded its security business overseas, tapping into the potential of the Chinese security market. For the first time in its history, the combined revenue of its overseas main businesses and innovative businesses surpassed that of its domestic main businesses.
• Innovation and R&D: The company has consistently increased R&D investment since 2018. It is focusing on AIoT-powered large multimodal model technology, aiming to align with cutting-edge technological advancements and integrate them into its software and hardware offerings.
• Scenario-based Digitization: The company continues to emphasize scenario-based digitization, developing sensing technologies that cover full electromagnetic waves, mechanical waves, and multi-band fusion. This supports the deep integration of physical and digital worlds.
• Shift in Strategy: Hikvision is transitioning from faster expansion to higher operational efficiency, with plans to optimize its organizational structure and operating mechanisms to better adapt to the evolving business environment.

Key Financial Highlights

• Revenue:

  • 2024: RMB 92,495,525,118.30
  • 2023 (before adjustment): RMB 89,339,856,855.68
  • 2023 (after adjustment): RMB 89,341,177,610.40
  • YoY Change (after adjustment): 3.53%

• Net Profit Attributable to Shareholders:

  • 2024: RMB 11,977,327,023.54
  • 2023 (before adjustment): RMB 14,107,621,359.66
  • 2023 (after adjustment): RMB 14,107,726,276.26
  • YoY Change (after adjustment): -15.10%

• Net Profit Excluding Non-recurring Items:

  • 2024: RMB 11,814,861,641.16
  • 2023 (before adjustment): RMB 13,665,962,325.65
  • 2023 (after adjustment): RMB 13,665,962,325.65
  • YoY Change (after adjustment): -13.55%

• Net Cash Flows from Operating Activities:

  • 2024: RMB 13,264,092,022.73
  • 2023: RMB 16,623,254,305.92
  • YoY Change: -20.20%

• Earnings per Share:

  • Basic EPS: RMB 1.297 (down 14.67% YoY)
  • Diluted EPS: RMB 1.297 (down 14.67% YoY)

• ROE (Return on Equity):

  • 2024: 15.34%
  • 2023: 19.64%
  • YoY Change: -4.30%

• Total Assets and Net Assets:

  • Total Assets (2024): RMB 132,016,200,156.14
  • Net Assets (2024): RMB 80,668,661,062.88
  • YoY Change in Net Assets: +5.65%

Key Risks Identified

The report outlines the following major risks that Hikvision faces:

1. Domestic Economic Transformation Risks:

   • Ongoing adjustments in fiscal spending and real estate investment.
   • Trade protectionist policies in some overseas countries affecting export capabilities.

2. Global Economic Downturn Risks:

   • Decelerated growth in key economies and macroeconomic volatility.
   • Diversified business footprint helps mitigate regional risks, but a global recession could still impact operations.

3. Geopolitical Environment Risks:

   • Political instability and conflicts in certain regions.
   • The company has strengthened risk management and resource allocation in response to these challenges.

4. Technological Obsolescence Risks:

   • Rapid advancements in AI, big data, IoT, and cloud computing.
   • The company must maintain innovation and adapt to new technologies to avoid obsolescence.

5. Internal Management Risks:

   • Increasing complexity due to expansion and diversification.
   • Emphasis on institutionalization, process standardization, and talent development to address governance challenges.

6. Financial Risks from Reduced Customer Payments:

   • Liquidity risks due to economic volatility.
   • The company has robust collection mechanisms and low financing costs, but payment delays may still occur.

7. Legal and Compliance Risks:

   • Complex and varying regulations globally, especially in data protection.
   • The company has established an effective legal and compliance system, but must continue to adapt to evolving laws.

8. Supply Chain Risks:

   • Geopolitical tensions impacting global supply systems.
   • Diversified supply networks and inventory management are in place, but disruptions remain a concern.

9. Cybersecurity Risks:

   • Potential threats from computer viruses, malware, and hacker attacks.
   • The company emphasizes cybersecurity in product and system development.

10. Exchange Rate Volatility Risks:

    • Operations in multiple countries with foreign currency transactions.
    • The company uses financial instruments for risk hedging, but exposure remains.

11. Intellectual Property Risks:

    • Risks of disputes and infringement despite comprehensive IP protection measures.

Other Important Information

• Shareholders' Dividend Proposal:

  • A RMB7.00 per 10 shares cash dividend was proposed, with no bonus shares or share distribution from capital reserve.

• Accounting Firm:

  • Deloitte Touche Tohmatsu Certified Public Accountants LLP was engaged for audit services.

• Accounting Standards:

  • No material differences in financial reports between IFRS and China Accounting Standards.

• Non-recurring Gains and Losses:

  • The company reported non-recurring gains and losses totaling RMB162,465,382.38 in 2024.
  • No items were reclassified from non-recurring to recurring.

• Quarterly Financial Performance:

  • 1st Quarter (Restated): Revenue RMB17,817,550,424.43; Net profit RMB1,915,795,733.79
  • 2nd Quarter (Restated): Revenue RMB23,391,545,781.93; Net profit RMB3,148,323,123.50
  • 3rd Quarter: Revenue RMB23,782,371,582.09; Net profit RMB3,043,629,637.17
  • 4th Quarter: Revenue RMB27,504,057,329.85; Net profit RMB3,869,578,529.08

Conclusion

Hikvision continues to focus on technological innovation, international expansion, and efficiency improvements. Despite facing a range of operational, financial, and geopolitical risks, the company remains committed to its scenario-based digitization strategy and customer-centric approach. The report also underscores the importance of R&D investment, legal compliance, and supply chain resilience in maintaining long-term growth and stability.