Hikvision Sales Surge 40%, China Strong, US Declines But Europe Still 'Large' H1 2021

Executive *******

********* ********* ****** **% ***** ****** for **** ****-**** ** $*.* *******, led ** ******** ****** ** **% as **** ** ******** ****** ** 25%. ******* **** **** **% ** almost $* *******.

***** *** ******** *** **% ** Hikvision's *******. *****, *****, **** ******* any ******** ***** ***** ***** ** 5 ***** ** ***** ** ****' global *****, *** ******* ******* ********** for *********.

********* ****** ** ** ************ ********* on ****** *** *** ******** *******, stating *** *** *** ****** ****** the ** ** **% ** *** non-China ***** ***** ********** ** ********** actions ** "******" *** "************". *********'* European ********** *** ****, ******, **** potential ********* **** ** ************* ** *** ** ******* ******* Committee.

********* ****** **** ******** ********* ***** further ****** ****** ***** ******** ** keep ****** ***,***** ******* ********** ****. *********'* ***** *******, ********** overseas, ******* ************* (* ******) ** the ***** ****** **** *****.

Pandemic ****** ****

**** *********, ********* *********, *** ********** from * ******-**** ** ** **** compared ** *** ***** ** *** pandemic * **** ***. ** ****, it ** ******* *** ************** **** period's ****** ** *** ****** *****.

Strong ******** ****** ****** ** *** *******

******** ***** ***** ****** **% ** $3.77 *******. ********* ********* *** **** from **** **** ******** (***.*%) ***** to *** *****-***-****** ******* (****) ** ~$950 *******:

********* ********** **** ** **** ***** "most ******** ********" ** *** ******** last ****, ***** ********** **** *********'* ability ** **** ****** ********** *** this ****:

SMBG *** **** ******** ******** ** *** ******** **** ****, with a low base. The rebound in the first half of the year was relatively strong. On the one hand, the business flexibility of small and medium-sized enterprises is greater. After the investment confidence is restored, the business has also improved significantly; on the other hand, despite the tight supply of raw materials such as chips, [Hikvision is] better because the ******* *** ******* ***** ********** ** *&* *** ********** [emphasis added]

*********'* ********** (***) *** ********** (***) sales *** *** **** ** ************ but ***** ****** ***** ****** ** 29.31% ** $*.** ******* *** **.**% to $*.* *******, ************.

Overseas ******

*********'* ******** ***** **** **% ** $1.46 *******:

********* **** **** ******** ******** "****** ** ***** * ********** large ****** *** **" ** ******** to *** **, ***** ***** **** shrunk ** ***** **% ** ***** overseas *****, ****** ** ******* ******'* proportion ** ********:

*** ** ****** ** ******** ** the ************ ** *** ********, *** the ********* *** ********** ** *********' sales ************ **** **** ******** ** a ******* ****** [...] * *** years ***, *** ******* ** *** United ****** *** ****** ********* *** about **** ** ******** *******. *** because *** ********** ** *** ****** States *** **** ***** ****,the ****** ****** *** *** ******* *** ***** */** ** ******** *******. Europe ** ***** * ********** ***** ****** *** ** ***, *** *** ********** **** ** ******. [...] Thesituation ** *** ****** ****** *** *** ** **********

**** ***** ********* ***** ******* ************ contributed ** **** **** ** ******. If ********* ********, ** **** ******.

*** **** ** ******* ** ****** is **** ****-****, ****** *** **** impose ******* ****/********* ** *********, *.*. the**** *** ******** ** *** ** Foreign ******* *********,***** **********'* ********* *******, *********'* ******* ** ****** ***************** *********'* ****** ****** *** "*******".

US ***** ***** ~$*** ******* *** ** ****

******* ** ********, *********'* ** **** revenue *** ~$*** *******, ***** ** the ******** ******** ***** ~$*.* ******* and *********'* ***** **** *** ** was ~**% ** **** *******. ** an ****** *****, **** ***** *** Hikvision's ***** ** ******** ** ~$*** million, ********* ******* *** *** (*.*., (e.g., ***,****** ** ******)

*********, *** *** ******** *** ~*.*% of *********'* ***** ******* (*.*., **% of *** **% ** ******** *******). If *** *** ** ***** ** action ***** ********* ***, ** ***** only ** * ***** ****** *********** on *********.

Gross ******* **** ** *** ** ***** ****, ****** *****

*********'* ***** ******* **** *.**% ******** to **** ****, ** *********:

***** ******* **** **** **** **** overseas (-*.**%) **. ************, *******:

********* ********** *** ******* ****** ********* to ****** ******* *****, ******* *** impact ** **** ** ******* ** still "********** **********":

******* *** **** ** ******** ** rising *******.********* *** ***** ***** ** * very ******** *****, ***company ** ***** ********** **********,****** ** ******** ****** *** ******* of *** ******* [******** *****]

********* **** **** *** *** ** the***** ****** **** ******** *** *******:

*** ***** ****** ****** ******** **** the **** ****** **** **** ** still ******** ** ***sales ******* ** ******* ******* ******** **** ****, which is also one of the reasons. [emphasis added]

** **** ******* **** ****,*********(********) ***** *** ***** ******* ****** margins ************* ****** *** ********'* ******, particularly ********.

Hikvision **** "**** *** ***" ** "******" *** ***, ********* "**** *********"

** *** ******** ****, ********* **** it **** ** "**** *** ***" for *** ****** ** *** *** ban ******* *** ********* ** ** "unfair" *** "************", ****** ******** "**** and **** *********", ******* *** ** Yangzhong*********** ** '**** **** *******'**** *****:

** ***** ** ** *********** ****** in *** **'* *********** ** ******* technology *********, ******-** ******** *********** ** theU.S. ****** *** ****** **** *** **** *********, ******* **** ************ ** ****** ***** *** ************ ***. The FCC has not yet come into effect. It is not easy to draw conclusions, so we ******** ** **** *** ***. Although it ** ******, we also accept this result and can only work harder to make our products, business, and services better. [emphasis added]

********* ***** ** *** "**** *********" about *** ******* ** ****** *** *******:

*** ******** ****** ** *.*. ********* on *** ******* *********. *** *.*. Federal ************** ********** ******* ************* ************ are ***** ** *** *********** *******, and *** ****** ** ***** **** will ********** ** ********** ******* ** be ******* ********.***prospects *** **** *** **** *********. ** *** **** ** ******* ********* situations, *** ******* **** ******* ********** and ****** ** *** ******* ******** philosophy. [******** *****]

******, * ***** ********** ******** ** whether *** *** **** ****** ******** Hikvision ************** ** **** ***** ** new ****. ******* ** **** **** take ******, ** *** *** *** yet ** ****** *** ****** ** Proposed ********** ** *** ******* ******** which **** ****** * **-*** ******* period.

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

******* ************ ****** ****, ********* ****** ****** ***** ************* **** ***** **** ********* ** raw ******** **** *** ** *** own "**********" *** **** ** ******** to **** ******* * "********** ****** price":

**** ****, *** ****** ******** **** is ******. *** ********* ******* ******, chips, *** ** **.We ****** **** ** *** ** ******* *** ******* ** *** ******* *****, ** ** **** **** ***** * ******, *** ** **** *** ***** [** ****]. ** ** ******** **** * **********stable ***** *** **** *******, otherwise our price increase will still lag behind the fluctuation of raw materials [...] *** ** *** ***** ****** ** raw ********* **** ** *****, [*********'* situation] ** ****** ******* *** ******* has ******* ***** ********** ** *&* and **********. ** ***** **** ** solve *** ********** ********.

** *** **** ******** ** *** topic ** ******* ***** *********. ****** 2021, *** ****** ** *****, *********'* products *** ****** ** ***** *********. When ** ******** *** *****, ** are ********.According ** **. **’* **********, ** ****** ****** ******** *** ***** [...] It violates our integrity to customers and users. [emphasis added]

Expects ********* ** ** **** ****** **** ** ****

********* **** ** ******** *** "***** delivery *********" ** ******* **** *** second **** ** **** **** *** that *** ******* ********* *** * "special ******" **** *** ****, ***** will ****** *** ****** ****:

*** ***** ******** ********* ** ***second **** ** *** **** **** ********. This is our judgment

******* *** ******* ****** ** *** materials ** *****, ** *** *** be **** ** ******* ***. *********, in *** ******* ** ****** ************, the ***** ** **********-***** ***** *** be *******. ******** **** *** ****, this ********* ** * ******* ****** at *** ******,this ****** **** **** ****** *** ****** ****. [emphasis added]

Stock **** *** ** ******* ****** *****

*********'* ***** ** **** ******* (**** 6%) **** **** *** **** ***** ** * ******* ********* *** **** ********* ******* ** a ********* *********.

Can ****** ****?

*******, ***** **** *** **, ********* continues ** ** **** ************ *** overseas. *** ***** ******** ** ******* it *** **** ** ** *** European ****** **** ***** ****** *** national ******** ******** *****.

Domestic ********

******** ******* ** ****** ** *** USA, *** **** ****** **% ****** inside ** ***** *** *** ************ revenue ** **** ******** ********* ***** strength **** ****** ******** *********** *** no ********** ******* ****.