ZKTeco IPO Filing, $190 Million Planned Raise

Executive *******

******'* **** ******* *** ~$*** ******* USD *** *** ****** ******* **** 11% *** ****** ****** ****** ** ~10%.

**** *** (*** ***-**** ***** ******) ***** ** ***** ~$*** *******, the ******* *** ** *** ************ of * ********* - * ****** of ***** *** * ******* *** Georgia, ***.

**** **** ** **** ** *** Shenzhen ***** ******** ***, ***** ** did *** **** *** ****** ***** project ****** **************, ***** ***** ***** profits *** ******, *** ********** ***** market ***************, *** ******* ********* ** would ****** ** $* ******* ***, with $* ******* *** ********* ********, depending ** ****** **********.

ZKTeco **********

**********-******** ******* **** **** ** **** but *** ******** *********** ** ****. They *** ************* ** ********, ********* Province, ********* *,*** ********* ** ** June ****. ******* **** *** **** 2020, ****** *** ~*** *********. **** cut *** ****** **** ******** *********, as *** ******** ******** ***** *** doubled **** ~*** ** *** ****** between **** *** **** ****.

******'************ ** **** ** ************ *** 29 ***** ******** ** *****, ** well ** ** ************ ******** (********* Hong ****, *****, *** ******) ** of **** ****. ************ ******'* ******** ***************. ** *** at ***** *** ***** ****** ** each ********* ****** *** *********.

Raising $** ******* *** ** ***** ** *******

****** ***** ** ***** ~$** ******* USD ** ***** * ******* ** suburban *******, ******* ** *** **** 3 ** * *****. **** ** where ****** ***'* ****** ** *******, and ****** ***** ** ****** *** current ******/********* **** * *******. **** is ********** ** ** ***** ******** security ************ *** * ** *******. ZKTeco ***** ** ***** * ******* in *** ** ** **** "****-***" security ******** *** *** ** ******, saying:

** ***** **enter *** ****-*** ** ****** ** ********** ******** ************* in the context of the return of US manufacturing. Through the production of mid-to-high-end biometric products, it meets the market needs of high-end customers, increases market share, and enhances the company's comprehensive competitiveness. This project is mainly ******* ** *** ********** *** *********** ** ****** *******, ** *****, ********** ******** *** ******** ********** ********. [emphasis added]

***** **** ******** *** ** ******, ZKTeco **** **** ************ * ** factory **** **** ********* ******** ** its ***** ********* *** ******** ********** for ********** *** ******** ** ********* outside ** ******** *****:

*** ********** ******** ** *** *******'* existing ********** ********* *** **** ********* saturated, *** **** *** ********** ********* of ***** ** ******** *******, *** timeliness *** ******* ************ ** ******* delivery *** ******* ****** *** ******. The ************ ** * ************* ***** in *** ****** ****** ** * strategic ******** **** ** *** *******'* comprehensive ****** *********** ***** *** *** own ****** *********** ****.

ZKTeco ***, *** ** * ********** ** ****** *****

*** ****** ***** **** ****** *** is * ********** ** ****** *****. ZKTeco *** ** **% ***** ** ZKTeco **********, ***., **% ******** *****(********* ** ****** ***), *** **% by******** "*****" ****(*** ** ****** ***).

****** **********, ***. ** ***% ***** by ****** **** ****, * ********** wholly ***** ** ****** *****. ****** Investment, ***. ** ****** *****'* **** operating ****** ** *** ****** ******, says *** **********. *** ********, *** CEO ** ****** *****, ** ****** as *** *** ** ****** **********, Inc.

USA ******* ****** ***

******'* *** *** ******* ****** ** H1 ****, ** ~$* ******* ***** for *** ~** ******** ********** ** 10x ******** ** **** **** **** net ******* ** ~$***,***, ********* ** the ******. ********** ******* *** *** disclosed.

****** ********* **** *** ***** ********* products **** **** ******* ** ***** America *** ******, ***** ** ********** with ****** ***'* ******* ** **** profits.

Revenue ****** ****-****, ******** ******** ** *****-**

****** ******** ~$***.* ******* *** ** revenue ** ** ****, ***** ** just ***** **% ** *** **** annual ******* ($*** ******* ***).

******* **** ~*% *** **** **** to ****, ***** ** **** ~**% YoY **** **** ** ****. *** company *** *** ******** ** ******* what ******'* **** ****** ******* **** be.

** *** **********, ****** ***** **** its ******* *** ******** ******** ** the *****-** ******** ** ****** *** touch-based ******** ********* ************ ** *** beginning ** *** ****. *******, ****** also ***** **** **** **** **** to ****** **** ******* ****** ** quickly ******* *** ***-*****-***** ************** ******** that ****** ** ****** *********** ************** ********* ********.

Competitor ******* **********

$*** ******* *** * ********* / access ******* ******* ** ***** *****. For *******, ** ****** *** * video ************ ************, * *** ****** market, **** ***** ** *** *** largest ** *****, **** ****** *********, Dahua, *** *******.

** ****** *******, *** ********* ******** generate **** ******* **** ******. ** course, ********* **** **** ***** **** far **** ** ****** ******* ***, compared ** ***** ********** ****** ******* divisions, *.*., *******, ******'* $*** ******* annual ******* ** ***** ********.

Profit ***** **% **** **** ** ****

****** ******** ~$** ******* *** ** profits ** ** ****, ***** ** on **** ** ** ************* ****** than **** (**** **% ** *** total **** ****** ****** ******* ** H1):

******* **** **% *** **** **** to ****, ** **** **% *** in ****. **** ** *********** ****** growth **** *** **** *** *****, especially ** *** ******* ** **+ years.

** **** ******* ** **** **** 50% ** **** *******, *** ******* for *** **** ****** ** ***** 60% ** **** *******. **, ***** COVID-19 *** ******** ******'* ******* ********, it *** **** **** ** **** profits **, ****** *** ** *** sales ** **** ****** *********** ********* products, ** ***** ** *** **********.

Product *********: * ***** **********

****** ********* *** ******** **** * major **********:

• ***** ********: ******** *** ****** *** identity ******* ******** **** ***** ********* data (****** ************, **********, **** **********, retina *****, *** ****** ***********).
• ***** ******** *******: ******** **** ******** access ** ********* *** *****, ********* turnstiles, ***** *********, ***** *****, ******* garage ******** ****, *** ******** *******.
• ***** ******: ******** ********* ********* **** stamp *** *** ********.

*** ******** ** ******'* ******* ***** from ******* ****** *******. **** **% of ******'* ** **** ******* **** from ***** ******** ******* ***** (****** control). **** ********** *** **** ****** since ****. ***** ******** ******* ***** have **** ********* ** **** ** a ********** ** ***** *****, ***** Smart ****** ***** **** ********* ** a ******* ** *** *****.

ZKTeco ******** ****** ** ********* ****** **** ******** ****

******'* ******** **** **** ******* *** pivoted ****** ******** "*****" *********, ****** than **** ******** ********** ******** *** biometrics *********, ***** *** ******'* **** strategy **** ****-**** *** ****-**** ************. ZKTeco ****** ** *** ********** ***** its ***** ********* ********:

****** **** *** *** **** ********* in ********** ** ******* **** ******** vision *** *** ********** ** ****** for ***** ***** *** ******* ************** solutions.

** ******* **** ************* *********, ****** offers * ****** ** ******** ********* with **** **** ********* ****** ******* and ***** ****** ******** ***** ********* biometric ****. *** *******,*-***** ******** ****** ********* ******** *** ****** control ******* ********* **************.******* *.*, ***** *****, ** * ***-***** software ******** ************ "******* *** ***** of *** ******** ******" ** ** can ******* *** ****** ********* ******** across **** ******** *********.

High ******* (~**%) *** ******* ** ******** ***** *****

****** ******** ******* ***** ******* ** 48.33% ** ** **** *** **.**% gross ******* ** ****, ***** *** up ***** * ********** ****** **** 2017. *******, ******'* ***** ******* ******* of ******** ***** **** **** ************ higher, ** **.**% ** ** **** and **.**% ** ****. ** ********, mainland *****'* ***** ******* *** **** around ~**-**% *** *** **** *** years.

******'* ************ **** ***** ******* *** overseas ***** ** ** **** *** be ********* ** *** ***** ** high-margin *********** ********* ******** ****** *** COVID-19 ********, **** ******. *** *********** detection ******** **** ************ ******* ** Europe *** ***** *******. *************, ******** China *** *** ******** ***** ******* faster, ** ****** *** *********** ********* devices **** *** ******.

Majority ** ***** ***** ******* ******** *****

******** ****** *** *********** ******** ***** operations **** * ****** ****** ** nearly *** ***** *********, *** ******** of *** ******* ***** **** ***** in ******* ******* ** ******** *****, a ****** ** ******'* "****** *******" to ****** ********. ** ** ****, 57% ** *** ******* **** **** outside ** ******** *****. *******, **** concentration ** ***** **** ******* ******** China ** *** * ****** ***********. Even ** ****, ******'* ******* *** split **-** ******* ******** ***** *** outside ** ******** *****.

****** **** **** *** ************ ********** overseas ******* ** * ****** ** active ******* **** ** *** ******* to ****** **** ******** *******. *** prospectus ****** **** * ***** ******* of ***** ******** ***** ** ** "India, ******, *********, *** ***** ********** countries," *** *** *** ******* ** exact **********.

Shareholder *********

******'* ************ ******* * *********** *********** called "********* ******" (********** ** *** founder *** ******) *** * ******* entities.

********* ********** **.**% ** *** ****** ****** and ** ** ********** ******* ***** by *** ******** (**.**%) *** *** Quanzhong (**.**%). *** ******** **** **** an ********** **.*% ** *** ****** shares ** *** ** *** ****** through ********* ******.

***** ******* ************ (*%+) *******:

• ******** ****** 精英士君 (*.**%): ** ********** vehicle **** *** *** ********** ** ZKTeco.
• ******** **** (*.**%): ** ********** ******* made *** *** ********** ** ******.
• ***** *********** (*.**%): ** ********** ******* owned ** *** *** ****** *** a ********. ************, **.**% ** *** Jun (*** ********'* ******), *.**% ** Che ********, *** *.**% ** ** Wang, *** ********'* ******.

Main ********* *** ******* ************

******'* ***** *** *** ************ ****** just * *** *********. ** ** 2020, *** *** * ********* **** accounted *** *.**% ** ***** *****. Between ****-****, *** *** * ********* typically ********* *** **-**% ** ***** sales. *** ***** ********* *** *** local ***** ** ******** ************. *** listed ******** ************ ******* ********* **** Thailand, *****, *********, ******, ** **** as ******'* *** ********** ** ***** Africa *** ***** ******.

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***** ***** ********* **** *** **** as ********** ********* ** ****** ******* as **** **** ** ***** ************, if ****** *** ***** ****** $*** million, **** **** ** *********** ** expand ************* ********** *** ***** *** challenge ********* ******* ****** ******* *********.

[UPDATE */**/**]

** ***** **, ****, ****** *** its ******** ******* ** *********** ******* the ******* *******. *** ****** ***** to *** ******** ***** ******** *** so **** *** "****** *** ******* are **** ** ****** ***** ********* information." ********** * ******* ** * rather ******* ********* ** **** ********* can *** ** **** ****** ********* information ** ***** ******* *******. ** is ******* **** ****** **** ******** the *******. **** **** ******* ******'* IPO ******** *** ****** ***********.

[UPDATE */**/**]

******'* *** *** **** ********* ***** after ***** **** ***** ****** ***** May **, ****. *** ******** ********* given ** *** ***** ******** ** that *** ******* **** ****** **** updated ********* ***********. *********, *** **** recent ****** ********** ** ** *** end ** ****.

[UPDATE **/**/**]

******'* *** ** ***** ****** ***** after ***** ********* ** */**/****. ****** has ******** **** ******* **********, ********* H1 **** *******,** *** ******* **********.

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