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

Executive *******

********* ********* ****** **% sales ****** *** **** half-year ** $*.* *******, led ** ******** ****** of **% ** **** as ******** ****** ** 25%. ******* **** **** 40% ** ****** $* billion.

***** *** ******** *** 72% ** *********'* *******. China, *****, **** ******* any ******** ***** ***** still ** * ***** as ***** ** ****' global *****, *** ******* Western ********** *** *********.

********* ****** ** ** increasingly ********* ** ****** for *** ******** *******, stating *** *** *** helped ****** *** ** to **% ** *** non-China ***** ***** ********** US ********** ******* ** "unfair" *** "************". *********'* European ********** *** ****, though, **** ********* ********* such ** ************* ** *** ** Foreign ******* *********.

********* ****** **** ******** shortages ***** ******* ****** growth ***** ******** ** keep ****** ***,***** ******* ********** ****. *********'* ***** margins, ********** ********, ******* significantly (* ******) ** the ***** ****** **** ended.

Pandemic ****** ****

**** *********, ********* *********, are ********** **** * bounce-back ** ** **** compared ** *** ***** of *** ******** * year ***. ** ****, it ** ******* *** representative **** ******'* ****** is *** ****** *****.

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

******** ***** ***** ****** 46% ** $*.** *******. Hikvision ********* *** **** from **** **** ******** (105.8%) ***** ** *** small-and-medium ******* (****) ** ~$950 *******:

********* ********** **** ** SMBG ***** "**** ******** affected" ** *** ******** last ****, ***** ********** from *********'* ******* ** keep ****** ********** *** 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]

*********'* ********** (***) *** Enterprise (***) ***** *** not **** ** ************ but ***** ****** ***** growth ** **.**% ** $1.18 ******* *** **.**% to $*.* *******, ************.

Overseas ******

*********'* ******** ***** **** 25% ** $*.** *******:

********* **** **** ******** ******** "****** ** ***** a ********** ***** ****** for **" ** ******** to *** **, ***** sales **** ****** ** about **% ** ***** overseas *****, ****** ** expects ******'* ********** ** increase:

*** ** ****** ** affected ** *** ************ of *** ********, *** the ********* *** ********** of *********' ***** ************ have **** ******** ** a ******* ****** [...] A *** ***** ***, the ******* ** *** United ****** *** ****** accounted *** ***** **** of ******** *******. *** because *** ********** ** the ****** ****** *** been ***** ****,the ****** ****** *** *** ******* *** ***** */** ** ******** *******. Europe ** ***** * ********** ***** ****** *** ** ***, *** *** ********** **** ** ******. [...] Thesituation ** *** ****** ****** *** *** ** **********

**** ***** ********* ***** regions ************ *********** ** this **** ** ******. If ********* ********, ** will ******.

*** **** ** ******* on ****** ** **** long-term, ****** *** **** impose ******* ****/********* ** Hikvision, *.*. ******* *** ******** ** the ** ******* ******* Committee,***** **********'* ********* *******, *********'* ******* ** ****** determination**** *********'* ****** ****** are "*******".

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

******* ** ********, *********'* H1 **** ******* *** ~$140 *******, ***** ** the ******** ******** ***** ~$1.4 ******* *** *********'* claim **** *** ** was ~**% ** **** revenue. ** ** ****** basis, **** ***** *** Hikvision's ***** ** ******** at ~$*** *******, ********* branded *** *** (*.*., (e.g., ***,****** ** ******)

*********, *** *** ******** for ~*.*% ** *********'* total ******* (*.*., **% of *** **% ** overseas *******). ** *** FCC ** ***** ** action ***** ********* ***, it ***** **** ** a ***** ****** *********** on *********.

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

*********'* ***** ******* **** 3.46% ******** ** **** year, ** *********:

***** ******* **** **** much **** ******** (-*.**%) vs. ************, *******:

********* ********** *** ******* margin ********* ** ****** product *****, ******* *** impact ** **** ** clients ** ***** "********** restrained":

******* *** **** ** products ** ****** *******.********* *** ***** ***** is * **** ******** thing, ***company ** ***** ********** **********,****** ** ******** ****** the ******* ** *** aspects [******** *****]

********* **** **** *** end ** ******** ****** **** ******** *** *******:

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

** **** ******* **** year,*********(********) ***** *** ***** boosted ****** ******* ************* during *** ********'* ******, particularly ********.

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

** *** ******** ****, Hikvision **** ** **** to "**** *** ***" for *** ****** ** the *** *** ******* but ********* ** ** "unfair" *** "************", ****** business "**** *** **** difficult", ******* *** ** Yangzhong*********** ** '**** **** warfare'**** *****:

** ***** ** ** substantial ****** ** *** US's *********** ** ******* technology *********, ******-** ******** development ** ***U.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]

********* ***** ** *** "very *********" ***** *** outcome ** ****** *** *******:

*** ******** ****** ** U.S. ********* ** *** company *********. *** *.*. Federal ************** ********** ******* certification ************ *** ***** in *** *********** *******, and *** ****** ** which **** **** ********** be ********** ******* ** be ******* ********.***prospects *** **** *** **** *********. ** *** **** ** various ********* **********, *** company **** ******* ********** and ****** ** *** prudent ******** **********. [******** added]

******, * ***** ********** question ** ******* *** FCC **** ****** ******** Hikvision ************** ** **** focus ** *** ****. Clarity ** **** **** take ******, ** *** FCC *** *** ** upload *** ****** ** Proposed ********** ** *** Federal ******** ***** **** starts * **-*** ******* period.

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

******* ************ ****** ****, ********* ****** ****** ***** ************* **** ***** **** increases ** *** ******** cost *** ** *** own "**********" *** **** it ******** ** **** reached * "********** ****** price":

**** ****, *** ****** upstream **** ** ******. Raw ********* ******* ******, chips, *** ** **.We ****** **** ** *** ** ******* *** ******* ** *** ******* *****, ** ** **** **** ***** * ******, *** ** **** *** ***** [** ****]. ** ** ******** **** a **********stable ***** *** **** *******, otherwise our price increase will still lag behind the fluctuation of raw materials [...] *** ** *** ***** supply ** *** ********* such ** *****, [*********'* situation] ** ****** ******* the ******* *** ******* scale ********** ** *&* and **********. ** ***** time ** ***** *** production ********.

** *** **** ******** on *** ***** ** product ***** *********. ****** 2021, *** ****** ** years, *********'* ******** *** almost ** ***** *********. When ** ******** *** price, ** *** ********.According ** **. **’* **********, ** ****** ****** ******** *** ***** [...] It violates our integrity to customers and users. [emphasis added]

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

********* **** ** ******** the "***** ******** *********" to ******* **** *** second **** ** **** year *** **** *** overall ********* *** * "special ******" **** *** past, ***** **** ****** its ****** ****:

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

******* *** ******* ****** of *** ********* ** tight, ** *** *** be **** ** ******* all. *********, ** *** process ** ****** ************, the ***** ** **********-***** sales *** ** *******. Compared **** *** ****, this ********* ** * special ****** ** *** moment,this ****** **** **** ****** *** ****** ****. [emphasis added]

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

*********'* ***** ** **** notably (**** *%) **** week *** **** ***** ** * ******* selloff** *** **** ********* spurred ** * ********* crackdown.

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

*******, ***** **** *** US, ********* ********* ** do **** ************ *** overseas. *** ***** ******** is ******* ** *** hold ** ** *** European ****** **** ***** rights *** ******** ******** concerns *****.

Domestic ********

******** ******* ** ****** or *** ***, *** very ****** **% ****** inside ** ***** *** its ************ ******* ** home ******** ********* ***** strength **** ****** ******** competitors *** ** ********** foreign ****.