2023-05-22-深交所-熵基科技_熵基科技股份有限公司2022年年度报告（英文版）_302页_2mb

ZKTECO 2022 Annual Report Summary

Core Content

ZKTECO CO., LTD. (ZKTECO) is a leading company in the field of multimodal biometrics and multimodal computer vision, and 2022 marked its first year of listing. The company aims to become a respected innovative global enterprise and has received strong support from its shareholders, partners, and investors.

Key Financial Performance

• Consolidated Operating Revenue: RMB 1,918,559,191.76 in 2022, slightly down by 1.88% compared to 2021, but up from 2020.
• Net Profit Attributable to Shareholders: RMB 192,239,793.75 in 2022, an increase of 12.47% compared to 2021.
• Net Profit After Deducting Non-recurring Items: RMB 189,342,503.20 in 2022, a 27.87% increase compared to 2021.
• Net Cash Flows from Operating Activities: RMB 124,520,033.18 in 2022, a 26.91% increase compared to 2021.
• Total Assets: RMB 3,655,960,456.30 at the end of 2022, a 75.52% increase compared to 2021.
• Net Assets Attributable to Shareholders: RMB 3,057,467,189.68 at the end of 2022, a 122.76% increase compared to 2021.

Innovation and R&D

• ZKTECO emphasizes innovation-driven development, investing RMB 190 million in R&D in 2022, which accounted for 9.8% of operating revenue.
• The company has 42 branches and subsidiaries in China and 40 overseas subsidiaries, with products sold in over 100 countries and regions.
• R&D Centers: Established in Bangalore, Xiamen, Dalian, Dongguan, and Shenzhen, with over 1,100 R&D personnel.
• Innovation Highlights:
  • Developed core multimodal biometric recognition algorithms, combining traditional pattern recognition with AI and utilizing blockchain for secure identity verification.
  • Advanced multimodal small sample offline computer vision, enabling scene-based interaction and value-added services.
  • Launched new generation digital signage with BioCV pre-AI capabilities, empowering smart retail and catering.
  • Collaborated with Amazon to develop Minerva Platform, an IoT platform with End-Edge-Cloud capabilities, supporting ZKTECO Interconnection, ZKTECO Cloud Commerce, and ZKTECO Cloud Chain.

Globalization Strategy

• ZKTECO believes in the 2.0 version of globalization, emphasizing long-term development, compliance, trustworthiness, and stakeholder relationships.
• The company has established manufacturing centers in China and Thailand, and is investing in the American Manufacturing Factory Construction Project.
• Overseas Business Growth: Achieved stable growth, compensating for insufficient domestic growth and ensuring overall business stability.

Shareholder Distribution and Governance

• The company proposed a cash dividend of RMB 3.5 per 10 shares and used capital reserves to increase 3 shares per 10 shares.
• The Board of Directors and Supervisors have ensured the accuracy and completeness of the report.
• The legal representative is Jin Hairong, and the registered address is No.32, Pingshan Industrial Road, Tangxia Town, Dongguan, Guangdong, China.
• The accounting firm is Baker Tilly China Certified Public Accountants (Special General Partnership), with signing accountants: Li Ming, Wang Heli, Han Dongxi.
• The sponsor is UBS Securities Co., Ltd., providing continuous supervision from August 17, 2022 to December 31, 2025.

Compliance and Standards

• ZKTECO has no material differences in net profit and net assets between international, foreign, and Chinese accounting standards.
• The audit report indicates uncertainty regarding the Company's ability to continue as a going concern, due to negative net profit after non-recurring adjustments in the past three years.

Key Financial Indicators by Quarter

Definitions and Terms

• BioCV: Biometrics & Computer Vision
• GA/T 1012-2019: National standard for fingerprint collection and comparison of resident identity cards
• GA450-2013: General technical requirements for desktop readers of the resident ID card
• GA/T1011-2012: General technical requirements for fingerprint capture devices of the resident ID card
• CMMI Certification: Capability Maturity Model Integration Certification
• AIoT: Artificial Intelligence of Things
• IoT: Internet of Things
• NB-IoT: Narrow Band Internet of Things
• SMT: Surface Mount Technology
• PCB: Printed Circuit Board
• PCBA: Printed Circuit Board Assembly
• SDK: Software Development Kit
• OCR: Optical Character Recognition
• SMED: Single Minute Exchange of Die

Conclusion

ZKTECO continues to strengthen its core capabilities and innovate in biometrics and computer vision, while maintaining global expansion and financial stability. The company is committed to long-term development, compliance, and trust, and remains focused on technological advancement and value creation for its stakeholders.