Hikvision CEO On Politics and Competitive Problems

*********'* *** **** **** ******** *********** is "**** ****" *** *** ************* environment ** "*****", * **** **** Hikvision ** ********** ** ****** ** its ***** ** ****** ******-***** ******.

********* ** ****** *********** ********** **** negative ********* ****** ** ********* *********, and ***** *** *********** **** ** SenseTime, ******, *** *******, **** *** Hu ********* ******* ********* **** ******* may ** "*************."

** **** ****, **** ******** ***** comments *** **** **** **** *** the ************.

Laments "************* ***********", "**********" ** *********

** ******* **, ********* *** ** Yangzhong *** ***** ********* ***** ************ * ********************, * *** **** ***** ******* that ** **** * ********* ********.

****** *** ****, ** **** "************* geopolitics" **** *** ** * "******* tension" *** ***** ** ******* **** to "**** ****" **********, ** ******** that ********* ** *** **** *** "self-confidence ** ********** **** ******" *** "this **** ** ***** ** **** with *** *** ** ************* ** investors":

"******* **'*international *********** or industry competition, the current tension should calm down." Hu thinks thatin *** ****, ********* *** ****-********** ** ********** **** ****** so its 2021 numbers were not bad. But this year ** ***** ** **** **** and may ** ************* ** *********. [emphasis added]

** **** ***** **** "** ********* are ***** **********" ***** **** ** "a *** ** * ******** ** us":

********* *** ******** ** *** ****** List ** **** *** ** *** had *** ******** ******, ********* ** the [*********] *****. ** **** ****, the ******* ****** *** **** **** the ********* *** *** **** *** it ** ******** ** ********. *** thecurrent ** ********* *** ***** **********, which is abit ** * ******** ** ** [emphasis added]

******, *********'* ** ********* **** ********* since ********* **** ** ******* ******** ***** ******** *** *** **************** ******** ******** * ********* *** ********* that********* ** ********* ********* ***, **** ** ****.

"Political ************" ** *********'* "******* *******"

*********'* "******* ******* ***" ** "********** level ** ********* ************" ** ********* markets, **** ********* ******** ******* ** developing ********* ** ****, ***** *******, and *** ****** ****, ***** ********* Huang ******** **** ******:

***biggest ******* *** ** *** ********** ***** ** ********* ************ to a point we ***'* ******** **** ** *** ********* ********* from a market perspective. Yet still, we are going to do business in these markets with subtle tweaks of political adjustments. In fact, in Asia-Pacific, Latin America, the Middle East, etc, in ********** *********, *** ******* ********** ** ******* ******** *** ************ **** ** ******, so we will be appropriately inclined in these regions [emphasis added]

*********, ** ** ****** **** ******** call********* ********* "********* *** ********* *** ***** very ****" ** ********** *********; ***** only *** ** *** ****** ******** Hikvision ************, *** ******* ** ****** increasing ********** ** ******, *.*. *** UK's *** ******** ************** *** ** ** ** ******, ** ***** ************** **** * $*** ****, *** ** ******* ***** ******* region****** *** *********.

PRC *********** "**** ****", "*** ** **** ** ** **** ** **"

** ***** **** ******** *********** ** the *** - ***** ******* *********'* largest ******,****** ****.*% ** ******* - ** "**** high" *** ** *** ******* ** tech ********* **** ****** *** ******* although ** ******** ***** **** ******** aren't "** *********":

******, ******* ******* **** *** ****does *** * *** ** ******** [** **]. They have resources, advantages, and areas that are better than us, for instance, they *** ****** ** ****** ******* ******** ********. But the circumstances now have changed. Alibaba's City Brain isn't so effective and may adjust. Huawei's Visualization Machine has become more low profile in a not-so-good circumstance. [emphasis added]

********* ***** **** ********* **** *********'* opportunity ** *** ******** ****** ** "not ** **** ** ** **** to **". ******, *** ***** ******* and ********* ********, ***** ********* ** no ****** ********* **** **** *********** security ************* **** ***** *** **** tech ****** *** ******** **** ***********,******,*********, ************, ****** *** *********** "**** ******":

************, ********* **not **** ********* **** *********** ******** ************* **** ** *****, but also technology giants such as Huawei and Baidu, as well as AI such as SenseTime, Megvii, Cloudwalk, and Deepglint [...] These companies have subdivided the layout of scenarios from finance, retail, supply chain, and public places such as stations and airports, making the industry competitive environment more severe.

***** ***** **-******* ***** *** ************, their ***** ******* (*.*.*********'* **% ******) *** ******** ***** **** *** primarily ******** ********* ****** **** ******** makers **** *********, ***** ************ ** ******* ** ** *** Cloud*** ***~**% ***** ******* (** ** ** 2022).

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

********* **** ******** ** ****** ** ******* **** **** *** pandemic *** ***** $** ******* ** annual *****, *******, ******* *** ****** double-digit ******* ****** *** ****** ************* in ****** *****:

• **** ** - *.*%
• **** - **.**%
• **** - **.**%
• **** - **.**%
• **** - **.*%
• **** - **%
• **** - **%
• **** - **%
• **** - **%

*********'* ******* ****** ** ********* ** its ***** *****, ***** ** **** to **** ******:

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

********* ****** ***** ****** ********** **** domestic *********** *** ************* **********. ********* will **** ** ****** ***** ********* in *** ****** ***** ** ******** to ********** ********** ******* *** ********** to ***** *** **/***** *********. *******, though, *** **** ******* * ******* position ****** ** *** *** ***** control *** *******.

Hikvision ** ********

********* *** *** ******* ** *** comment ******* *** **** *******, ** they **, ** **** ******.