China Camera Cost Increasing, Pricing Starting To Rise

Dahua *** *** ****** ******** "***** **********"

***** *** ******** ******** * ***** adjustment ******, ******* ***** **** "***** prices ** ****** ********* *****" ********* chipsets, ***********, ** **** ** ********** and ********** *********:

***** ******'* ******** ************* * ***** ********** ******** ***** **, ****, ********** **** new ****** ***** ** *********** ** April **, ********* "********** ***** ***** have ********* **********."

*** ****** ***** ****** "********** *****" in *** ********* ** *** *** reason *** "***** ********** ****** *** no ****** ** **** * ***** adjustment":

*************, ***** *** ********* ** **** year,production ***** ** ***** **** ********* ********** *** ** *** ********** ******** ** *** ********* ***** *** * *********** ****** ** *** ****** ********** *****, ****** *****, **********, *********, *** ********* ** *** ********* *******, ***. Therefore, in order to ensure the continuous supply of products and to maintain the level of service that you are entitled to expect, Dahua ********** ****** *** ** ****** *** ** **** * ***** **********. This adjustment will apply to all Dahua product lines. [emphasis added; translated from French]

Dahua *** ******* ** ***** *********

***** *** ********* ** **** **** while *** ******* *** "****** **** over *** **** ** ****** ** avoid ******* ***** ***** *********," "******" price ********* *** *** ********. *******, Dahua *** ********** ******* ***** ********* affect "**** ** [*****'*] ***********, *** Dahua's ********* *** "******* ** **** size *** *****":

*** ******* ** *** ****** ******** on ****** ****** **** ********* ******* production *****. ***** ** **** ****** hard **** *** **** ** ****** to ***** ******* ***** ***** ********* to *** *********, ** *** *** at * *****, **** **** ** our ***********, ***** ****** ***** *********** are ********. ***********, *** ***** *********** we’ve ********* *** ******* ** **** size *** *****. *** **** ********* business **** ** ** ****** *** build *** ******* ******* ******** ** the ********. **** ** *** ** are ********* **** **** ***** ***** changes, ** ****** ****** *********** ** the ******. ***** *******, ** **** monitor *** *********** ** ******** *** materials *** *** ********** ** ****** accordingly, *** **** ******** ** ******* on ***** *** *****, ***** **** the ******* ************* ** *** ********-******* solutions.

Raw ********* ***** **********, ********* ****** ******

******** ***** ******** *************, **** ****** and ******* ** *****, **** ********* to **** **** ****** *** ********** for ***** ******* ** *****. **** of ***** ************* **** ***** ******** about ******* ****** ** * ***** reason *** *** ***** *********.

***** ***** ***** (****)****** ************* ** **** ******** ******* ***** and ********** ****** ****** ** ***-***** 2020, ************ ** ********* ** * chip ******* ** ********, *** **** chip ******** ********* ***** *-* ****** but *** *** ********** ** * months:

* ******* **** **** *** ***** was ****** ** ****** *** ********* last ****, ** ***** ** ********* at *** *** ** **** ****, but *** ******** **** **, *** the ****** ********** ******** *** ********** exploded.It ***** **** ** *** ****** *** *** **** ****** ** **** ***, *** **** **** ****** *** *** ******** ** **********. [emphasis added]

**** ******** *** ******** ********** ****** sellers, ** * ***** ******* ** a ***** ******** ********** ********* ****** said ******** ****** ****** **** ********* significantly **** *** **** * ******:

*** ************ **** ** *** ***** of *****. ** ********* **** ****, the **** ****** ****** **** *** should ** *** **** [~$** ***], and ********* ********* *****, *** *** it *** ***** ** *** **** [~$30 ***]. ******** ******* **** ********* by ****** **% ** **%.

*******, ****** ********* ****************** ****** ********* low **** ******* **** ** ***** cited ** *** ***** ***** (~$**-** USD). * $** ******** ** * $20 ****** ** * **% ********. However, ******* ******* * $*** ** $500 ****** **** **** ***** ********* much **** *********** (**% ** *% increase *. **% ********).

Many ************* ********* ***** *********

***** ****** *** ******** ** ****, many ************* *** ********* ********* *** increase *** ********* ***** ***** *******, which ** * ******** *********** *** some ***** ****** ******* ******* ** China **** *** *** ******** ***** increases.

**** ***** ** *** ***** ************ who **** **** *** ****** ********* to ******* ***** ********* *** *** time *****, *** *** ****** *** uncertain:

** *** ****** *** **** ********* as ***** *********. *** ********* **** case, *****, *******, ****, *** , packing ***. *** ******** ** ****. However, ******* ** *** **** **** year, ** **** ***** ********** ** stock *** *** *********. *********, *** the ** ******, ***** ** ******. We *** *** **** ***** **, and ** ** *** *** ***** the **** ********, ** **** ******** [our ******]. **'** *** *** ** prepared.

Hikvision ********** *********** ****** **** "***** *********"

********* ***, ** *********, **** ********** that *********** ****** **** ***** ********* in *** ****,********* * ******** ****-**** ***** ******* increased ****** ** *** ****** ** overall **** ***** ********* *** ***** many ********* ** ****** ***** ******* strategies:

Electronic ******** **** **** ******** ****** *** ** **** *****, *** **** **** ***** ********* ******. This time, the shortage may cause many industries to make some adjustments. What will happen in the long run? I don't know. [emphasis added]

** **** ****** ******** ***** ***** profit ******* *** ** ********* ***** and ******** ***** ******:

******** *** ** **** ********* ***** the ***** ****** ******.There ** * *** ** *********** ** ***** ****** ******, ** *** *** **** ******* ** *** ******** ** *****, ** *** ***** ****, *** ******* ** ***** ******. The gross profit margin of the industry has nothing to do with the characteristics of the industry, but is determined by the competition strategy within the industry. [emphasis added]

Hikvision ****** ** ****** ***** *********** ** ****** ******** ****

********* ****** *** ********* **** *** future ** ********* ** ******* ******** ****. ***** ********* ******* ** *** ample ********* *********, ** ** ******* for ****** ********** ** ***** ******** continue ** ** *****:

The ****** ***** **** **** ***** ********** ** *** **** *** *****, *** *** ** *** **** *** *****. The challenges in the past few years have come from the uncertainty brought about by sanctions, including sanctions on Hikvision and sanctions on Huawei. We have done a good job in the past few years, including ***** **** *********** ** ********* **** ** *** ****** ** ********* and obtain a longer transition period ... Haikang has handled the issue of the main chip relatively well, and it **** *** **** **** ****** ** ******* ** *******, but in *** **** ***, *** ******* ******** ** ************** ***** ****** **** ********** to us. [emphasis added]

********* ***** **** *** "******* ******** on *** ****** ***** ** ****** by ************ ************* ********** ********" *** that **** **** ** ******* *** never **** *********** ******:

*** ******* ******** ** *** ****** chain **caused ** ************ ************* ********** ********. For example, the lack of semiconductors for automotive electronics has led to the suspension of production of automobile OEMs. This has never **** *********** ** *** ********** in the past 30 years. Advanced process semiconductors are not the only ones with a tight supply problem, but also products of conventional processes. [emphasis added]

** * ***** ** ********** ****, Hikvision ****** ** ** ******* ** work **** * ****** ** ********* suppliers ******* ** ********* ** **** a ***:

**** *** *********** ** ****** ***** security,we **** *** **** **** *** ******** *** **** **** ** ********, *** ** **** ******** ********* ** *******. We will not disclose detailed information about specific suppliers, but our supply chain will definitely make a lot of preparations in advance, and increase the inventory of raw materials to ensure a smooth transition. [emphasis added]

*** **** *** ************* ******** ** tense,we *** **** ******** ******** **********. We have a partnership with suppliers, not a simple buying and selling relationship. Supplier management is a complex system work, and it is difficult to answer this question in a few simple sentences. [emphasis added]

Hikvision '***** ********** ****** ******'

********* ** **** *** * '***** adjustment ****** ******' **** ************* **********(*** ************)****** ** *********:

** *** *** ** **** *****, March, ****** **** ***** ****** *** Hikvision **** **********:

********* ********* *% **** *****, **** have ******* **% **** *****

*******, ******* ** ******* **** **** that ********* *** ******* *** *** been ********. ** *********'* *** ******* to, ** **** ***** *** **********, Hikvision *** *** ** ******** ** reduce ***** ***** ****** ****** **** increase *****, ***** ***** ** ************** given ******** ***** ****** ********* ** such ***** *********.

Supply ***********/***** ********* ********** ****

******** ************* ****** ****** ******** ****** and ********* ***** ********* ** ******** for *** **** ** *** ****, with *** ******** **** ******* ********* expecting ****** ****** ** *** ** resolved ***** *** *** ** ****:

********** *** **** ******** ********* *** increasing ********** ******** ** ***** ********. The ***** ** ******** ********. **I ****** **** ** *** *** ** **** ****, ** ****** ** **********. [emphasis added]

****'* ********, *** ******,******* ****'* ******** *** ****** **** capacity ****** **** **** ********** **** and ******** **** ****:

Demand ** ***** ******, *** *** ******** ** ******** **** ******** ********** **** ****, *** *** ******** ***** ****. However, capacity is in redistribution.

**********

****** *** ***** ******* *** ******* rising, ******** *** ******* *** ******* they ****** ******* ** ** ****. However, ** ************* ******* ******** ** warn ***** *** ****-******* ******** ** capacity, **** ****** ** ****** *** rising ***** ****** ****** ** *** long-term, ********** **** ******** ********* **** out.

* *** *********** ********* ** ***** suppliers *** ***** ********** ***** ******. If **** ******* ** ********, ** may **** ** ****-**** *********** ****** but ** ** ***** *** **** time, ** ***** ******* ******** ****** to ************* ****** ******, ***-***** ********.

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