HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.

Hangzhou Hikvision Digital Technology Co., Ltd. is a leading manufacturer in the electrical, electronic, and communication equipment sector, founded in 2001 and listed on the Shenzhen Stock Exchange in 2010. The company specializes in integrated security solutions and scenario-based digitalization, leveraging artificial intelligence and machine perception technologies to serve a diverse range of industries. Hikvision is committed to innovation and sustainability, aiming to enhance safety and operational efficiency for its clients across more than 180 countries and regions. Hikvision's primary business lines include the development and provision of AI-powered Internet of Things (AIoT) products and solutions. The company has established a comprehensive operational framework in the AIoT field, focusing on improving operational quality and refining its strategies for various product lines. With a strong emphasis on technological innovation, Hikvision has invested significantly in intelligent technologies and large-scale AI models, which are integrated into its product offerings. The company continues to pursue international growth while adapting to changes in the global market, maintaining a cautious approach to risk management.

Since its establishment, the management of Hikvision has been continuously introspecting: Are we doing the right thing? Are we on the right track? Are we keeping pace with the changing times, adhering to technological innovation, maintaining the entrepreneurial spirit, and prudently managing risks? The domestic and international environment is undergoing significant changes and adjustments, and the Company's operational focus has gradually shifted from pursuing revenue growth to improving operational quality. After nearly a decade of expansion, the Company has completed its business layout in the AIoT field and has achieved initial results. In the next three to five years, the Company will further strengthen and solidify its existing AIoT business. In 2025, the Company formulated corresponding strategies for each product line and business, optimized internal operational mechanisms and resource allocation, and improved business performance; in 2026, the Company will further refine various business strategies, deepen institutional reforms, optimize resource allocation, and continuously improve operational quality through more stable business management, creating long-term value for shareholders. Artificial intelligence has become the core driving force of a new round of technological revolution and industrial transformation. Large-scale AI models are promoting the Company's product technology innovation and operational quality improvement at an unprecedented speed and depth. Technological innovation has always been the driving force for Hikvision's development, and large-scale AI model technology is being deeply integrated into the Company's products. Over the past 20 years, the Company has been continuously investing in intelligent technologies, keeping up with the development of intelligent technologies from pattern recognition, video content analysis (VCA), deep learning, knowledge graphs to large-scale models. In the past 5 years, the Company has gradually focused on multimodal IoT perception large model technologies, developing the Guanlan large-scale AI models products, and embracing large-scale AI models in product strategies. In 2025, in the security business and scenario-based digitalization business, the Company launched hundreds of large-scale AI model products, covering front-end products, back-end products, and cloud center products across various or combined spectral bands including visible light, X-ray, millimeter-wave radar, and infrared. These products have already gained widespread recognition from numerous users. This year, the Company will further enrich its portfolio of large-scale AI model products and intensify marketing efforts to achieve excellent business performance. The rapid development of large-scale AI model technology will have a profound impact on Company operations. Over the past 5 years, we have gone through a process of initial exploration and gradual introduction of AI technology in various process-driven operational activities such as R&D, supply chain, marketing, and service, effectively improving the Company's operational efficiency and capabilities. In 2025, the Company won the Fifth "China Quality Award" with its "Digital and Intelligent Quality" management model, and the "Mass Customization Smart Factory for IoT Sensing Products" the Company built was selected by the Ministry of Industry and Information Technology into the "2025 Leading Smart Factory Cultivation List." Internationalization remains an important engine driving the Company's development and growth. In the face of numerous challenges, the Company's main business and eight innovative businesses continue to adhere to the path of internationalization and expand international operations. We will persist with a "one country, one strategy" approach, and overseas revenue continues to grow steadily. In a volatile international environment, the Company will be very cautious in responding to various risks and will make the "one country, one strategy" approach even more refined. The Company will continuously enhance product competitiveness in the global market, improve marketing and operational capabilities, and further improve performance. In 2015, the Company established an internal innovative business co-investment system. The eight innovative business companies that were subsequently established have gradually overcome the most difficult entrepreneurial period. They have gradually taken root and grown in the domestic and international target markets they have identified and have achieved a certain scale, with profitability improving comprehensively. These businesses, together with the main business, are now fully embracing large-scale AI models. The Company's management team understands that maintaining an entrepreneurial spirit in the long term and integrating it into various business and management activities has always been the greatest challenge. The year of 2026 marks the 25th anniversary of Hikvision's founding, and the Company is committed to delivering excellent performance to all shareholders in return! We firmly believe it is still a great era today, and the management team continues to embrace this era with an entrepreneurial mindset. Thank you all shareholders for your trust, commitment, and support to the Company over these years! See far, go further!