Hikvision PRC China Freezes Hiring As Investors Push Cutting Costs

*******, **** *** **** ************ ** PRC *****-***** ********* *************** ****** ******* *******.

********************* **,*** ***** ** *** *** of ****, ******** ****** **** ** them ** *&* *********, **** ******** to *.*. **** ***** *** **** 4,000 **********.

** **** ****, **** ******** *********'* hiring ****** *** **** ** ***** for *** ****.

"We **** *** ******" ***** **** ****

********* ******* ** "**** *** ****** the ****** ** ***** **** ****" in ******** **** ******** ****, ****** "** **** ******** ******** allocation **********":

We **** *** ****** *** ****** ** ***** **** ****. We will optimize ******** ********** ********** [...] In the two years of 2021 and 2022, Hikvision indeed had an increase in the staff of non-production line workers by about 10,000 people [...] we judged that the company was in a period of opportunity [but the] external environment fluctuated greatly, and the ***** ** *** **** were ***** **** *** ************ [emphasis added]

海康在 ****、**** 年这两年中，非产线工人的人员编制的确有 * 万人左右的增长，这 是因为我们当时判断公司处于机遇期，结果外部的环境波动较大，当年的销售低于我们的预 期。我们肯定会做相应的调整，但对于底子性质的投入，我们依然会很坚定。过去两年我们 人力资源投入比较多，今年在人员编制上我们不太会扩大了

*********'* **** ***** ******* **** ** *** *********, **** ******* **** ****** **% in ** ** **** ****.

****, ***** ******** **** **** ** Chinese ** *** ******* ** *** PRC ****** (****** **** ******** *****) so ********* *** ****** ****** ******* China *.*. ******** ***** ** ** *******.*******, **** ********* ***** *** *** material ** *********'* ****-*** ***** *********.

Criticized *** **** ********

********* *** ********** ***** *** ********* ******** *********** **** *** ****** thousands ** ***** ** *** *** last **** ******* *** **** ******** economy, *********** **** ** *********'* ********** as * *****-***** **********:

** ********, *********'*own ********** ** * *****-***** ********** haverestricted *** ******* ** ********* ******* to a certain extent. When the performance of the previous year was impacted, the company's expenses still grew. In the sluggish ******** ****, Hikvision expanded its workforce by more **** *,*** people. Many ********* **** ****** ******** *** ******* ***** ****** *** ****** ** **** ***********, but this *** *** **** in Hikvision's financial report last year [emphasis added]

另外海康自身国企的属性，一定程度制约了经营利润的释放。在上年度业绩受到冲击的时候，公司的费用端仍维持增长的情况。在疲软的过去一年里，海康的员工规模又扩张了****多人。很多公司在业绩疲软期都会进行减费控本，而在海康上年的财报中并未看到。

*** ******* ********* **** *** *********'* stock ** ** **, ** ***** "significant ******* ** ****-**** *******."

Asked ***** *&* ********

********* *** ***** ***** ** ********* about *** ********** *&* ******** ***** ****** ****** **** ******** ****,*.*.:

*: ** *** ***** **** ** the ****, ***company's *&* ********** ********* ** ********. Can you explain the specific direction of the company's R&D investment?

*: *** *******'* *&* ********** ** mainly ********* ** *** ***** **** of *&* *********. ******** **** *** company's ****** ******* ** *&* ********** in *** ******* ** *** **** business, *** ******* **** *&* ********** direction ** ***** ********** ********. ******* the ********** ******** ****** *** ****** revenue ****** ************ *** **** ****** opportunities, ** *** ******* ************ ******* economic ***********, ** ***** ******** *** principle ** ********, *** **** ******** resource ********** ** **** *********** ******.

*：上半年公司研发投入持续增加，公司对于研发投入的具体方向，能否展开介绍一下？ *：公司研发投入主要体现在研发人员的人工成本上。相较于公司对主业各方面研发投入的严格把控，目前主要的研发投入方向仍在创新业务。因为创新业务本身收入增长预期更高，市场机会更多，在当下日趋复杂的经济环境下，我们还是维持谨慎性原则，在一些机会点上会加大资源投入。

Hikvision *&* ********* ********

*********************,*** ** *** **,*** ***** (**.**%) as *&* *******:

(****, ********* **** *** ****** **** counts ** "*&*" ****** ***** *********** such ** **** *******).

**** ** * ***** ******* **** Axis' ***************** *,***. *******, ********* ******** ** not **** ************ **** ** **** testing. **** ***** *&* ********* ***** it * ***** *** *** ********* wanting ** *** *****.

Over **% ** ***** ** ***

********* **** *** ***** **** ***** its **,***+ ***** *** *******, ******* IPVM ********* **** **% *** ***-*****, given *** ************* *** ****** ** staff ** **** ** *********'* ******* overseas *******, *.*. *** ********* *********** ***'* *********** *** ********* *********** ** & *******'*.

"Working ****" ** ******* *** ******

********* *** **** ***** ** ** investor ******* *** *** ******* **** improve:

*: ******** **** *** ****** *******, with *** ********** *********** ** ***** profit ****** *** ******* *****, **** the *******'* *** ****** **** **** a **** ***********?

*：公司从第四季度开始，随着毛利率与费用率的持续改善，净利率是否会有一个好的表现？

********* ********* ******* **** "** *** indeed ******* **** ** **** *********" (我们确实在朝这个方向努力，谢谢).

SOEs ** ***** ******* ** **********

******* **** ********, ********* *** *** announced/mentioned *** *******.

** *** *****, * *** ******** of **** **** ********* ** ** provide **** **********, ********** **** ***** are *****, **** *.*. ***** ***** China ***** *********'**** ****** *********** ** ***** ** employment'***'******* **** ********* **** **** **** COVID-19 *********.'

*******, **** ******* ***** ********** *********** layoffs **** *******. **** ********** ***** methods *** ****** *****, **** *********** PRC ****** ********, ***** ********* *********** ******* ** *** ****.

Net ****** *********

*********'* *** ****** ** ****** *** steadily ********** **** *** ******** ***** of ******-******:

• **.*% ** ** ****
• **.*% ** ****
• **.*% ** ****
• **% ** ****
• **.*% ** ****
• **.*% ** ****
• **.*% ** ****
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Outlook ********

*********'* ****** ****** ****** ********** ******* the ****'* *******. *** **** *** Hikvision ** **** **** ******* * new *** ** ******* *********/************** *** lower ***** ****** *** *** ****, creating **** ************* *** ***********.