1、 Hangzhou Hikvision Digital Technology Co.,Ltd.2019 Annual Report April 25th 2020 Hikvision 2019 Annual Report 1 To shareholders As a technology-driven company,technological innovation has been the major approach to operations for the Companys sustainable development.Over the past two years,in respo

2、nse to technological advancements and changes in the external environment,the R&D expenses ratio of the Company has risen from 7.62%in 2017 to 8.99%in 2018,and further to 9.51%in 2019.The Company will continue to make further R&D investments to address increasing uncertainties,create value for custo

3、mers,provide platforms for employees,and drive returns for the Companys shareholders.We will maintain our commitment to technological innovation regardless of macro-economic conditions.In the domestic market,the Company has completed the initiative to integrate its business into Public Business Grou

4、p(PBG),Enterprise Business Group(EBG)and Small and Medium Enterprise Business Group(SMBG).The three BGs focus on their respective target markets and leverage various technologies,such as artificial intelligence,big data and cloud computing etc.,to help customers connect the physical and information

5、worlds,and achieve the fusion of data of the Internet of Things with the Information Network.In our overseas markets,we have largely completed the construction of country-specific marketing and service systems,enabling the rendering of better service to local markets.After five years of cultivation,

6、the innovative businesses have also made satisfactory progress.In our 2017 annual report,we disclosed the single-line revenue of the EZVIZ(smart home)business,and this year,we disclosed the single-line revenue of the robotic business.We expect to see more growth of our innovative businesses in the f

7、uture and look forward to better development of these particular businesses.In 2020,the external environment is currently undergoing significant changes.Similarly,the security industry is also seeing many changes.Taken together,these twin dynamics have created increased uncertainties in the Companys

8、 operation.The Companys management team Hikvision 2019 Annual Report 2 is committed to taking various risk-mitigation measures and adapting to environmental and industrial changes to ensure the continued healthy development of the Company.The Company will continue to optimize its operations and mana

9、gement,enhancing its operational effectiveness and efficiency.The Company,along with its leadership team,is confident in its ability to calmly address and navigate the current unique challenges it faces.As always,the Company will continue to be honest,transparent,and open in all its affairs with an

10、eye towards earning the trust of all parties and stakeholders.Last but not the least,we would like to extend our sincere gratitude to all shareholders for their trust and confidence in the Companys management team.See far,go further!Hangzhou Hikvision Digital Technology Co.,Ltd.Board of Directors 20

11、20.04 Hikvision 2019 Annual Report 3 Section I Important Notes,Contents and Definitions The Board of Directors,Board of Supervisors,directors,supervisors and senior management of Hangzhou Hikvision Digital Technology Co.,Ltd.(hereinafter referred to as the“Company”)hereby guarantee that the informat

12、ion presented in this report shall be together be wholly liable for the truthfulness,accuracy and completeness of its contents and free of any false records,misleading statements or material omissions,and will undertake individual and joint legal liabilities.Chen Zongnian,the Companys legal represen

13、tative,Jin Yan,the person in charge of the accounting work,and Zhan Junhua,the person in charge of accounting department(accounting supervisor)hereby declare and warrant that the financial statements in this report are authentic,accurate and complete.All directors of the Company have attended the bo

14、ard meeting to review this report.The profit distribution proposal passed upon deliberation at the meeting of the Board of Directors is set out as follows:Based on the Companys current total share capital of 9,345,010,696 shares,the Company proposed to distribute cash dividend of RMB 7(tax inclusive

15、)per each 10 shares to all shareholders,bonus share and share distribution from capital reserve is nil.Note:This document is a translated version of the Chinese version 2019 Annual Report(“2019 年年度报告”),and the published announcements in the Chinese version shall prevail.The complete published Chines

16、e 2019 Annual Report may be obtained at .Hikvision 2019 Annual Report 4 Please read the annual report and pay particular attention to the following risk factors:1)Global COVID-19 epidemic risk:Amidst the sustained transmission of COVID-19 epidemic around the world,and the heightened uncertainties in

17、 economic development,the Company will maintain its business strategy focusing on stable and healthy development and closely monitor the impact of the epidemic.If the epidemic leads to further deterioration of the domestic and overseas economies,the adverse impact on the Companys business will escal

18、ate accordingly.2)Global business risks:The Company operates in more than 150 countries and regions around the world.As the potential risks of pandemic,debt issues,political conflicts,and exchange rate fluctuations in various countries around the world are difficult to eliminate,the Companys oversea

19、s business operations may be adversely affected.3)Legal and compliance risk:The worlds multilateral trading system is facing an impact.The local laws and regulations that business activities need to comply with are very complicated.The worldwide data protection regulations are stricter,which require

20、 higher compliance requirements.If the Companys compliance ability cannot keep up with the situation,it will bring risks to the Companys operations.4)Risk of exchange rate fluctuation:The Company carries out operations in various countries and regions with different currencies,mainly settled in non-

21、RMB currency(mainly in USD).Exchange rate fluctuations could have impact on foreign exchange exposures arising out of sales,purchase and financing,which can likely affect the profitability level of the Company.5)Supply chain risks:The global supply system is suffering from an array of adverse impact

22、s.The Company has been making efforts to enhance arrangements for our supply chain and optimize inventory adjustments and controls.However,if systemic risks arise in the global supply chain,the Companys operating capabilities may be affected.6)Risk of technology upgrade:Technologies such as artifici

23、al intelligence(AI),big data,cloud computing,and edge computing are developing rapidly,with technology diffusion seeing the most rapid developments.If the Company is unable to adapt to the changes in cutting-edge technologies,or fails to quickly realize business innovation,the risks of ongoing uncer

24、tainties will increase.7)Risk of internal management:The continual expansion of business scale,the continuous increase of new products and new businesses,the continuous growth in total number of employees,and the significant rise of internal management complexity have posed challenges to the Company

25、s management work and Hikvision 2019 Annual Report 5 raised higher requirements on the Companys management system.The Companys sustainable development will face certain risks if the management level fails to proportionally address the Companys business expansion.8)Capital risk arising from the decli

26、ne in customers ability to pay:The liquidity of different business links is subject to economic conditions.Despite the cash reserves accumulated from the Companys historically healthy operation and low financing costs,accounts receivable of the Company will be adversely affected once liquidity risks

27、 increase.9)Risk of cybersecurity:The Company has always attached importance and taken active measures to enhance cybersecurity performance of our products and systems,However,in the context of Internet applications,there is still a possibility of deliberate attempts，including computer viruses,malic

28、ious software,hacker and others to intentionally attack our systems or products,causing cybersecurity issues.10)Risk of intellectual property(IP)rights:The Company continues to maintain a relatively large scale of R&D investment,and produces considerable technical milestones.At the same time,the Com

29、pany implements well-organized intellectual property right(IPR)protection measures.However,the risk of intellectual property disputes and the risk of intellectual property rights violations still exist.The above notices might not be all-inclusive of all other potential risks.Please pay attention to

30、potential investment risks Hikvision 2019 Annual Report 6 CONTENTS To shareholders.1 Section I Important Notes,Contents and Definitions.3 Section II Corporate Profile&Key Financial Data.9 Section III Corporate Business Summary.14 Section IV Discussion and Analysis on Business Operation.74 Section V

31、Significant Events.98 Section VI Changes in Shares and Information about Shareholders.124 Section VII Information of Preferred Shares.139 Section VIII Information about Convertible Corporate Bonds.140 Section IX Information about Directors,Supervisors,Senior Management.141 Section X Corporate Govern

32、ance.161 Section XI Corporate Bonds.173 Section XII Financial Report.174 Section XIII Documents Available for Reference.311 Hikvision 2019 Annual Report 7 Definitions Term Definition Reporting Period From January 1st 2019 to December 31th 2019 Articles of Associations Articles of Associations for Ha

33、ngzhou Hikvision Digital Technology Co.,Ltd Hikvision,our Company,the Company Hangzhou Hikvision Digital Technology Co.,Ltd CETC China Electronics Technology Group Ltd.is the actual controller of the company CETHIK CETHIK Group Co.,Ltd.Controlling Shareholder of the Company Innovative Co-investment

34、Partnership Hangzhou Hikvision Equity Investment Partnership(Limited Partnership)EZVIZ,EZVIZ Network Hangzhou Ezviz Network Ltd.(According to the context,also refers to the corresponding business)HikRobot Hangzhou Hikrobot Technology Ltd.(According to the context,also refers to the corresponding bus

35、iness)HikAuto Hangzhou HikAuto Technology Ltd.(According to the context,also refers to the corresponding business)HikMicro Hangzhou Hikmicro Sensing Technology Ltd.(According to the context,also refers to the corresponding business)HikSemi Wuhan Hikstorage Technology Ltd.(According to the context,al

36、so refers to the corresponding business)HikImaging Hangzhou Hikmed Imaging Technology Ltd.(According to the context,also refers to the corresponding business)HikFire,HikSafety Hangzhou Hikfire Technology Ltd.(According to the context,also refers to the corresponding business)Rayin Hangzhou Rayin Tec

37、hnology Ltd.Hangzhou Innovation Industrial Base Located in Binjiang District,Hangzhou,Zhejiang Province,the planned use is for R&D,office space and supporting facilities.It was first disclosed in the Companys Announcement on Investment and Construction of Hangzhou Innovation Industrial Base Project

38、in Hangzhou(No:2017-034).Chengdu Science and Technology Park Located in Chengdu,Sichuan Province,the planned use is for R&D,office space and supporting facilities.It was first disclosed in the Companys Announcement on Investment and Construction of Chengdu Science and Technology Park Project in Chen

39、gdu(No:2017-033).Chongqing Science and Technology Park Located in Chongqing,the planned use is for production plants,warehouses and supporting facilities.It was first disclosed in the Companys Announcement on Investment and Construction of Chongqing Science and Technology Park Project in Chongqing(N

40、o.2017-035).Chongqing Manufacture Base Located in Chongqing,purposes for manufacturing facility,initially disclosed in Announcement about Resolution of the 20th Meeting of the 3rd Session Board（No：2016-068）Hikvision 2019 Annual Report 8 Term Definition Xian Science and Technology Park Located in Xia

41、n,Shaanxi Province,the planned use is for R&D,office space and supporting facilities.It was first disclosed in the Companys Announcement on Investment and Construction of Xian Science and Technology Park Project in Xian(No:2017-031).Wuhan Science and Technology Park Located in Wuhan,Hubei Province,t

42、he planned use is for R&D,office space and supporting facilities.It was first disclosed in the Companys Announcement on Investment and Construction of Wuhan Science and Technology Park Project in Wuhan(No.2017-032).Wuhan Intelligence Industry Park Located in Wuhan,Hubei Province,the planned use is f

43、or production plants,warehouses and supporting facilities.First disclosed in the Companys Announcement on Investment and Construction of Wuhan Intelligence Industry Park Project in Wuhan(No.2017-036).Innovative Business A long investment cycle,business prospects uncertain,has the high risk and uncer

44、tainty,in need for direct or indirect investment in exploration,in order for the Company to timely enter into new areas of business.Initially disclosed in Announcement about Management Measures for Core Staff Investment in Innovative Business(核心员工跟投创新业务管理办法)().In this report,innovative business also

45、 refers to EZVIZ,HikvisionRobot,HikAuto,HikMicro,HikSemi,HikImaging,HikFire,Rayin and their related business or products.Hikvision 2019 Annual Report 9 Section II Corporate Profile&Key Financial Data I.Corporate Information Stock abbreviation HIKVISION Stock code 002415 Stock exchange where the shar

46、es of the Company are listed Shenzhen Stock Exchange Name of the Company in Chinese(if any)杭州海康威视数字技术股份有限公司 Abbr.of the Company name in Chinese 海康威视 Name of the Company in English(if any)HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO.,LTD Abbr.of the Company name in English(if any)HIKVISION Legal represen

47、tative Chen Zongnian Registered address No.555 Qianmo Road,Binjiang District,Hangzhou Postal code of Registered address 310051 Business address No.518 WuLianWang Street,Binjiang District,Hangzhou Postal code of Business address 310051 Company website E-mail ; II.Contacts and contact information Boar

48、d Secretary Securities Affairs Representative Name Huang Fanghong Address No.518 WuLianWang Street,Binjiang District,Hangzhou Tel.; Fax E-mail III.Information disclosure and place of the report Newspaper designated by the Company for information disclosure Sec

49、urities Times,Shanghai Securities Journal Website specified by CSRC for release of the Annual Report Place where the Annual Report is available for inspection Office of the Board of Directors of the Company Hikvision 2019 Annual Report 10 IV.Company Registration and Alteration Organization code 9133

50、0000733796106P Changes in principle business activities since the Company was listed(if any)During the reporting period,the Company operating range newly added R&D and production of electronic products(transmission and display equipment),big data and Internet of Things hardware and software products

51、,intelligent equipment and intelligent systems,real-time communication systems,servers and supporting hardware and software products.After the change,the Companys business scope is:research and development(R&D)and production of electronic products(including explosion-proof electrical products,commun

52、ication equipment and related ancillary equipment,multimedia equipment,transmission and display equipment),fire protection products,big data and Internet of Things hardware and software products aircrafts,robots,intelligent equipment and intelligent systems,real-time communication systems,auto parts

53、 and accessories,automotive electrical signal equipment,servers and supporting hardware and software products;Sales of self-produced products;provide technical services,electronic technology consulting service,training service(excluding the organizational training),electronic equipment installation;

54、electrical engineering,design,construction and maintenance of intelligent system projects.(except country prohibited and restricted items,relating to the specific mandatory license certificate)(subject to ratification in accordance with the project,approved by the relevant departments to operate)Cha

55、nges of controlling shareholders of the Company(if any)No change during the reporting period V.Other Relevant Information Accounting firm engaged by the Company Name of the accounting firm Deloitte Touche Tohmatsu Certified Public Accountants LLP Business address of the accounting firm 30F Bund Cent

56、er 222 Yan An Road East Shanghai Name of accountants for writing signature Tang Lianjiong,Zhang Shushu Sponsor institution engaged by the Company to continuously perform its supervisory function during the Reporting Period Applicable Inapplicable Financial advisor engaged by the Company to perform t

57、he duties of continuous supervision during the reporting period Applicable Inapplicable Hikvision 2019 Annual Report 11 VI.Key accounting data and Financial Indicators Whether the Company performed a retrospective adjustment or restatement of previous accounting data Yes No Retrospective adjustment

58、or restatement reasons:business merger under the common control Unit:RMB 2019 2018 YoY Change(%)2017 Before adjustments After adjustments After adjustments Before adjustments After adjustments Operating income(RMB)57,658,110,065.22 49,837,132,481.61 49,837,132,481.61 15.69%41,905,476,572.07 41,905,4

59、76,572.07 Net profits attributable to shareholders of the Company(RMB)12,414,587,690.45 11,352,869,241.32 11,352,132,255.21 9.36%9,410,855,084.82 9,410,855,084.82 Net profits attributable to shareholders of the Company excluding non-recurring gains and losses(RMB)12,037,518,321.42 10,983,228,170.60

60、10,983,228,170.60 9.60%9,177,116,964.06 9,177,116,964.06 Net cash flows from operating activities(RMB)7,767,720,171.14 9,114,013,286.06 9,113,286,027.76-14.76%7,373,160,250.68 7,373,160,250.68 Basic earnings per share(RMB/share)1.343 1.240 1.240 8.31%1.030 1.030 Diluted earnings per share(RMB/share)

61、1.343 1.234 1.234 8.83%1.024 1.024 Weighted average ROE 30.53%33.99%33.99%-3.46%34.96%34.96%At December 31st 2019 At December 31st 2018 YoY Change(%)At December 31st 2017 Before adjustments After adjustments After adjustments Before adjustments After adjustments Total assets(RMB)75,358,000,240.29 63

62、,484,352,233.42 63,491,508,747.79 18.69%51,570,963,466.61 51,570,963,466.61 Net assets attributable to shareholders of the Company(RMB)44,904,033,876.83 37,590,154,638.46 37,589,417,652.35 19.46%30,358,072,874.22 30,358,072,874.22 The total share capital of the Company as of the previous trading day

63、 of the annual report disclosure:The total share capital of the Company as of the previous trading day of the annual report disclosure(share)9,345,010,696 Fully diluted earnings per share calculated with the latest share capital Fully diluted earnings per share(RMB/share)calculated with the latest s

64、hare capital 1.328 Hikvision 2019 Annual Report 12 Whether there is a corporate bond:Yes No Whether the Company has continuous losses in the last two years Yes No Not applicable VII.Differences in Accounting Data between Domestic and Overseas Accounting Standards 1.Difference in the financial report

65、 of net profits and net assets according to the disclosure of International Financial Reporting Standards and China Accounting Standards Applicable Inapplicable There is no difference in the financial report of net profits and net assets according to the disclosure of International Financial Reporti

66、ng Standards(IFRS)and China Accounting Standards in the reporting period.2.Difference in the financial report of net profits and net assets according to the disclosure of Overseas Accounting Standards and China Accounting Standards Applicable Inapplicable There is no difference in the financial repo

67、rt of net profits and net assets according to the disclosure of Overseas Accounting Standards and China Accounting Standards in the reporting period.3.Explanation of the differences in accounting data under domestic and overseas accounting standards Applicable Inapplicable VIII.Key Quarterly Financi

68、al Indicators Unit：RMB Whether there is significant difference between the above individual or aggregate financial indicators and that of what disclosed in the quarterly report,half-year report Yes No IV.Items and Amounts of Non-recurring Gains and Losses Applicable Inapplicable 1st Quarter 2nd Quar

69、ter 3rd Quarter 4th Quarter Operating income 9,942,448,619.42 13,980,824,805.08 15,915,642,804.35 17,819,193,836.37 Net profit attributable to shareholders of the Company 1,536,118,222.96 2,680,636,987.28 3,810,578,954.89 4,387,253,525.32 Net profit attributable to shareholders of the Company exclud

70、ing non-recurring gains and losses 1,482,828,488.96 2,639,367,040.07 3,667,114,061.94 4,248,208,730.45 Net cash flows from operating activities -3,038,198,689.80 2,607,134,896.62 555,379,028.58 7,643,404,935.74 Hikvision 2019 Annual Report 13 Unit：RMB Item 2019 2018 2017 Profit or loss from disposal

71、 of non-current assets(including the write-off for the impairment provision of assets)-2,053,875.22 4,975,825.83 1,585,222.50 The government subsidies included in the current profits and losses(excluding the government subsidy closely related to regular course of business of the Company and governme

72、nt subsidy based on standard quota or quantitative continuous application according to the state industrial policy.)413,790,429.84 319,304,315.50 184,557,043.27 Net gains and losses from beginning of the reporting period to the merge date for the subsidiary merged involving enterprises under common

73、control-885,138.65-736,986.11-42,070.90 Profits and losses attributed to change in fair value for held-for-trading financial assets,derivative financial assets,held-for-trading financial liabilities,and derivative financial liabilities;and investment income from disposal of held-for-trading financia

74、l assets,derivative financial assets,held-for-trading financial liabilities,derivative financial liabilities and other debt investments,excluding the effective hedging business related to the regular business operation of the Company.26,872,639.66 62,153,461.82 86,740,196.23 Other non-operating inco

75、me and expenditures except the items mentioned above 52,155,026.79 94,651,413.78 30,044,820.52 Less:Impact of income tax 86,193,406.35 84,510,487.85 50,405,620.44 Impact of the minority interests(after tax)26,616,307.04 26,933,458.36 18,741,470.42 Total 377,069,369.03 368,904,084.61 233,738,120.76 E

76、xplain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in the,or classifies any non-recurring gain/loss item mentioned in the aforementioned note as a recurrent gain/loss item Applicable Inapplicable In the reporting period,the Company did not c

77、lassify an item as a non-recurring gain/loss according to the definition in the into a recurrent gain/loss item Hikvision 2019 Annual Report 14 Section III Corporate Business Summary 1.Business scope and status Hikvision is a video-centered intelligent IoT solutions and big data services provider,wh

78、ose businesses are focused on comprehensive security,big data services and intelligent business.It builds open cooperation ecosystems,serves the users in public service sectors,enterprises and public institutions and medium/small enterprises and strives to build smart city and digitized enterprises

79、with cloud-edge fusion,IoT-information network fusion and big data-AI fusion.In the field of comprehensive security,as reported by Omdia1,Hikvision has ranked first in the world in the video surveillance industry for eight consecutive years and owns 24.1%2 share of the video surveillance market.In t

80、he Worlds Top 50 Security Companies list published by a&s Automation and Security,Hikvision has ranked first for four consecutive years.In the field of big data services,Hikvision has created the IoT-information network fusion data platform to provide multiple industries with multi-network aggregati

81、on and cross-domain fusion big data aggregation,governance and mining services.In the field of intelligent business,Hikvision is deeply dedicated to the development of industrial intelligent business and supporting smart city,safe city,smart transportation,digital enterprise,and smart community init

82、iatives.2.Technological accumulation and innovation Since its founding,Hikvision has always viewed technological innovation as the driving force for enterprise development.This is represented by a number of factors,including the increasing nature of its R&D input,the expansion of its R&D team,and th

83、e consistent results produced by various R&D initiatives.Hikvision implements the Cloud-Edge Fusion concept throughout its security business.This has immensely pushed fusion application of edge computing and cloud computing.Further,Hikvision has proposed the IoT-Information Network Fusion 1 Omdia is

84、 a global science and technology industry consulting firm.This brand is comprised of the consulting firms(Ovum,Heavy Reading and Tractica)owned by Informa Tech and the scientific research team of IHS Markit which was purchased in 2019.2 This report is based on the global video surveillance market re

85、port published by Omdia(then known as IHS Markit)in June 2019 and uses statistics from 2018.Hikvision 2019 Annual Report 15 architecture,which enables fusion of the IoT data and information system data to multiply the capability of data platforms.Hikvision adheres to the Big Data-AI Fusion concept,w

86、hich integrates AI and perception big data to achieve perceptive intelligence.It also integrates AI and multi-dimensional big data to achieve cognitive intelligence.Hikvision also pursues software-hardware fusion and strives to produce the best hardware products,and the software products that is bes

87、t compatible with hardware products,to establish solution advantages with such hardware and software products.2.1 Cloud-Edge integration,intelligent IoT supported by perceptive technology innovation In October 2017,Hikvision launched the AI Cloud and proposed the Cloud-Edge Fusion computing architec

88、ture which was technologically characterized with edge perception,on-demand(data)convergence,multi-layered cognition,multi-tier application and has become the intelligent IoT architecture universally accepted in the industry.Cloud-edge fusion computing architecture of AI Cloud consists of edge node,

89、edge domain and cloud center.Edge node emphasizes the collection and front-end intelligent processing of multi-dimensional perception data.Edge domain emphasizes the convergence,storage,processing and intelligent application of perception data.Cloud center emphasizes the fusion of business data and

90、multi-dimensional analysis and application of big data.AI Cloud Hikvision 2019 Annual Report 16 series products include Two Pools,One Library and Four Platforms 3,puting resource pool,data resource pool,algorithm warehouse,management and scheduling platform,data resource platform,intelligent applica

91、tion platform and maintenance service platform.Based on AI,the AI Cloud solves problems in front-end intelligent collection of perception data.Centered on data,it solves the problems in on-demand data convergence among the different edge nodes.Oriented for application,it solves the problems in intel

92、ligent applications across various scenarios.Supported by maintenance service,it solves the problems in integrated operation and maintenance in large complex IoT perceptive network environments.Through the AI Cloud concept and the launch of relevant products and extensive applications in relevant in

93、dustries,Hikvision has evolved from a single sensor(video)to multi-dimensional sensors,from non-intelligent sensor to intelligent sensor,and from products of sensors to three-layered architecture intelligent IoT.It has also evolved from a video surveillance products manufacturer to an intelligent Io

94、T products and solutions provider.2.2 IoT-information network fusion,data services supported by data technology innovation In March 2019,Hikvision proposed the IoT-information network fusion data architecture based on big data and AI technologies,first set forth the path and method for large-scale s

95、ystematic data fusion between intelligent IoT and information network,and launched the AI Cloud Data Fusion Platform.The IoT-information network fusion data platform provides the governance capability for perceptive resources.By drawing on years of technological achievements in the field of IoT,Hikv

96、ision has established the evaluation 3 Refers to“Computing Resource Pool,Data Resource Pool,Algorithm Warehouse,Data Resource Platform,Intelligent Application Platform,Resource Scheduling Platform,Operation and Service Platform.Hikvision 2019 Annual Report 17 index system for IoT perceptive resource

97、s development and provided the perceptive resources governance and evaluation tools to enhance the quality of perceptive data through source governance and provides crucial support to industrial users for building and upgrading their perceptive systems.The IoT-information network fusion data platfor

98、m provides the capability in multi-source data convergence.Access and intelligent processing of multiple types of perception data firstly enables the fusion of multi-dimensional perception data;tools for collection of information network data are available,supporting expandable data types,data forma

99、ts and data interfaces;finally,intensive fusion of perception data and information network data is enabled through combination,integration and aggregation.IoT-information network fusion data platform provides governance capability in the fusion data.Over 30 components,such as data standard,unified c

100、ertification,data authority,resources management center,strategy center,operation center and data security etc.,constitute the data governance toolset for IoT-information network fusion,to adapt to the data governance scenarios of different projects as needed.In order to support implementation of da

101、ta governance projects,the Company has organized professional data engineers,data analysts,and data application R&D team;the headquarters and regional divisions work together on data business application research,data investigation,access solution design,data fusion implementation,data governance im

102、plementation,data model building and general data applications implementation,etc.IoT-information network fusion data platform provides data service capability.By providing standard interfaces oriented for the application layer,it enables unified configuration,publishing and management of data servi

103、ce interfaces;it has over 420 preset general interfaces to be directly called by third-party developers.It also supports development of new data service interfaces.This platform provides core functions such as centralized resources request,allocation and control etc.,and adapts to Hikvision big data

104、 intelligent storage and computing platform HBP,open-source Hadoop and third-party PaaS open platforms.Hikvision intensively explores the value of data resources.The Company has established internal normalized data models contests and data application innovation appraisal mechanism,and has created a

105、 range of city-level and industry-level big data applications.Currently,the data projects cover 29 domestic provinces and cities and some foreign regions.By the end of 2019,there were over 100 large data projects already.Through the IoT-information network fusion data platform,Hikvision has evolved

106、from merely providing data collection services to providing data governance and application services,and from merely providing intelligent IoT data services to providing data services across intelligent IoT and information network,and has become a big data services provider with independent technolo

107、gical advantages.Hikvision 2019 Annual Report 18 2.3 Big Data-AI fusion,intelligent business supported by AI innovation Entering 2020,Hikvision proposed the concept of Big Data-AI Fusion Base of smart city,integrating years of technological achievements in AI and big data into a unified technologica

108、l base for building intelligent industries and smart cities.Hikvision builds intelligent perception capability.The perceptive intelligence platform,including intelligent analysis platform,AI open platform,algorithm warehouse and algorithms scheduling platform,provides users with full-stack capabilit

109、ies of algorithm training,storage,analysis and scheduling.In 2019,Hikvision continuously iterates the capability of AI open platform to help users develop the intelligent algorithms for their own industries in a simple and quick way,solving the problems of scenario variations and fragmentation in th

110、e process of industrial intelligentization.The AI open platform is open to all partners for free,which significantly reduces the barrier and cost of medium/small/micro enterprises and developers participating in AI development.The AI open platform currently offers over 40 general functions and is on

111、 average accessed approximately 35,000,000+times per day;it has accumulatively trained over 10,000 models,where the fragmented scenario models of vertical industries account for over 95%of all models.The Company has organized over 30 training and certification activities,continuously developed and c

112、ultivated the industrial ecosystem,trained over 5,000 technicians and helped the industrial developers quickly master the development skills;it has made significant progress in building the ecosystem in tens of sectors such as transparent kitchen,properties management,unmanned retailing,work safety,

113、production aid and park management,etc.Hikvision 2019 Annual Report 19 Hikvision builds the capability in intelligent cognition.The intelligent cognition platform,including knowledge mapping,machine learning and space-time engine,provides users with the data mining service capability based on big da

114、ta and AI.Through management,classification and association of information based on the knowledge structure,the large volume of unorganized information is further mined and analyzed to become organized and correlated knowledge,to finally create the intelligent cognition service system centered on kn

115、owledge and solve the problems such as inaccuracy of traffic congestion prediction,inability to identify potential customer base in marketing,and inability to provide early warning on default risks in financial risk control.The technical framework of Big Data-AI Fusion Base signifies the combination

116、 of perception data and AI and the combination of fusion big data and AI expansion based on Hikvisions capability in intelligent IoT solutions and big data services.Extending from focusing on products to focusing on systems,from focusing on technologies to focusing on businesses development,from foc

117、using on single business to focusing on businesses across multiple industries,Hikvision has built a cooperative ecosystem through its open platform to provide users with complete intelligent industry and smart city solutions.2.4 Software-hardware fusion,products innovation supported by unified R&D s

118、ystem Since its establishment,Hikvision has created an industry-leading hardware R&D,manufacture and sales system,which enables the Company to maintain its competitive advantage across industries.Since 2016,Hikvision has emphasized hardware-software fusion and synergetic development;oriented by meet

119、ing market demands and based on the component-based development mode,it has created the unified software R&D system intended for multiple industries and multiple R&D teams.The core of the unified software R&D system is the Companys unified software technology architecture.In 2019,the advantages of t

120、he unified software technology architecture started to manifest,where it supported quick development and iteration of industrial applications,materialized the value of software reuse and improved the compatibility of software.2.4.1 Unified R&D system Hikvision uses componentized software technology

121、to solve the problem in mass production of software and has established the software products development and management standards to maintain software consistency.Within the unified software architecture,R&D teams can conduct back-to-back synergized development,so that the software stays consistent

122、 in terms of platform,interface and style and can be quickly integrated.Hikvision 2019 Annual Report 20 Under the unified R&D system,Hikvision uses the architecture+components=products model to create software products.A component is defined as a software unit that is able to independently complete

123、a technological or business task.Software components are designed to be separable for the purpose of reusability.The source of components can be self-developed,third parties or open sourced.Component types include basic environmental component,general service component,common business component and

124、industrial business component.Hikvisions number of components increased from 275 in 2018 to 1,644 in 2019.The reusable basic environmental components,general service components and common business components have passed field operation verification of over 24,000 delivered software products.The arch

125、itecture is the fundamental environment in which the components are integrated and operated.The Hikvision iSee and Hikvision iFar are two big architectures that support various business scenarios.These two designs are gradually maturing and have supported development of many software products and cu

126、stomized applications.Under the development mode of unified software technology architecture,the reuse rate of the component in software products is up to 93%,where each product averagely needs only 5 new components.Under the unified R&D system,Hikvision has created a trinity of integration developm

127、ent environment,Hikvision 2019 Annual Report 21 integration management environment and integration operation environment.The integration development environment provides the development-oriented online software production line,provides a complete standardized process of production,circulation and ma

128、nagement;by solidifying standards and automatic execution of key steps to ensure that software production specifications are integrated into various management processes throughout the entire lifecycle of software planning,development,testing,and release.The integration management environment provid

129、es the software market that oriented for marketing,aggregates the all stages information of the software from planning to releasing and provides support for the scenarios such as pre-sale consultation and exhibition,solutions evaluation,technical data acquisition,after-sale services and maintenance,

130、and etc.The integration operation environment provides the operation and maintenance management environment oriented for project site operation/maintenance personnel,and implements comprehensive maintenance of the software at project site.Under the unified R&D system,Hikvision has established the so

131、ftware R&D teams that operate in the domestic provincial-level business centers and certain foreign regions.All R&D teams use the unified technological architecture and reusable components,and share the software development,management and operation environment as well as the configuration management

132、 strategies,to enable large-scale synergized software production.Under the unified R&D system,design and production of software and hardware can proceed with better synergy and fusion.Many software and hardware products are synergized in design,development and deployment.The hardware design already

133、takes into account the software access driver development and application functions development,and application software development is meant to support the relevant hardware,thus avoiding the situation of hardware waiting for software or software waiting for hardware.2.4.2 Software product family I

134、n 2019,Hikvision continued using the unified software architecture to restructure the software products and gained large amount software achievements in the software assets library;the AI Cloud products continued improving,over 60 industrial application software products were restructured and succes

135、sfully released,and all products were generated from the unified architecture.These software products were mutually compatible and synergized,to minimize the costs of integrating and synergizing different systems.Hikvisions software product family consists of two categories,one is the common softwar

136、e platform products and the other is the industrial application software products.Hikvision 2019 Annual Report 22 The general software platform products exist in the computing storage resources pool and the data resources pool,and include AI open platform,algorithm warehouse,big data basic platform(

137、HBP),resources management and scheduling platform,AI Cloud data fusion platform,big data mining service platform,maintenance service platform,intelligent application platform,general comprehensive security platform and Internet operation basic platform.The industrial application software products in

138、clude industrial comprehensive security products and also the application software oriented for various industries such as public security,traffic and travel,governmental service,social dynamics,commerce,wealth growth,better life and natural resources,etc.2.4.3 Hardware product family In 2019,by dra

139、wing on the AI Cloud architecture,Hikvision integrated AI into more products,continued improving the product strategy in edge node,edge domain and cloud center,and continued its market-leading position through technological innovation and product innovation.Hikvision 2019 Annual Report 23 Rapid deve

140、lopment of AI technology launched a new chapter of intelligent products.Hikvisions intelligent products represented by DarkFighterX,ColorVu,and Multi-Sensor series of intelligent cameras,the full analysis intelligent server,Hikvision DeepinMind Series AI NVR,Capture Cameras,Environmental Protection

141、and Radar-Assisted series of intelligent traffic products,and MinMoe series short distance ID recognition access control products have been extensively applied in government market,enterprise market and consumer market.Front end products With rapid development of AI,big data,cloud computing,Industri

142、al Internet and IoT technologies,cameras have evolved from the traditional video surveillance terminals to the most important intelligent sensor in the IoT.With continuous implementation of AI scenarios,the single-sensor technology cannot meet the intelligent application requirements such as balance

143、 of overall situation and details analysis and association of trajectories for multiple targets.Hikvisions multi-sensor camera is defined by the scenario.One device with multiple lenses that are linked and coordinated can meet the requirements of different view angles,different parameters and differ

144、ent functions.The edge node integrates multiple deep learning algorithms that are designed for complex scenarios and can associate the time-space relationship with target characteristics,so a single scenario is derived into the time-Hikvision 2019 Annual Report 24 space scenario,which enables the fu

145、sion and analysis of data from multiple scenarios.4 Hikvision will continue exploring the low-light imaging technology system to enable the colored effect in both day and night,to make night just as colorful as day time.The intelligent DarkFighterX products have developed into a full-series product

146、family that covers medium-end,low-end and high-end business requirements.These products are designed in the new hardware architecture with low power consumption and high performance.The performance of DarkFighterX products are enhanced through hybrid supplementary lighting,multi-lens multi-sensor fu

147、sion and high resolution etc.The Company continues increasing input in the products for subdivided applications,where products are defined by the scenario demands,solving the problem in business adaptability of products under special environment and special conditions;In the trend of opening and fus

148、ion development,the Company has created the open products system,accelerated implementation of fragmented AI and continued launching series of end-to-end product solutions for the vertical sectors such as work safety,intelligent power grid,intelligent agriculture,remote education,emergency managemen

149、t,and etc.4 MNR noise reduction:Multilateral Noise Reduction enables noise reduction in various data domains(raw domain or YUV domain),to improve the noise reduction effect.MSD pixel-level decomposition:Multi-Scale Decomposition decomposes image into multiple frequency components.NDG nondestructive

150、noise reduction:Nondestructive Digital Gain causes less noise compared with traditional digital gain and is effective at noise suppression.SMDE Smart De-noise:Smart De-noise is a smart noise reduction technology which can automatically adjust the control parameters according to the illuminance in th

151、e scenario and the properties of noise points.Hikvision 2019 Annual Report 25 Edge domain and data center products Among the edge domain products,the intelligent products represented by Hikvision DeepinMind have entered the 2.0 era.AI computing power has been significantly enhanced to meet the incre

152、asing edge computing power requirements.For the fragmented intelligent application requirements,the Company has launched the domain-end full series DeepinMind products and DeepinMind products dedicated for AI open platform to meet users personalized and customized algorithm requirements and support

153、efficient deployment of intelligent applications in the edge domain.Hikvisions data center products are generated from an architecture capable of intelligent image full analysis,full compatibility in computing resources and full opening of engine and data.For central analysis products,the Company ha

154、s created more diverse high-performance intelligent servers with the highest computing power,including the mainstream high-performance AI hardware platforms;further enhance the effects of algorithms,enable associated application of multiple algorithms and create the industry-leading algorithm ecosys

155、tem;enhance intelligentization and visualization of big data,to serve city-level and industry-level big data application and governance.For the full series of IoT central storage,it could meet the requirements of intelligent IoT storage,computing and application integration,and it uses fusion of mul

156、ti-dimensional intelligence,data,application and storage to continuously create value for users;By drawing on the technological advantages in direct streaming storage and intelligent fusion storage,the Companys storage products maintains the leading position in the domestic Hikvision 2019 Annual Rep

157、ort 26 IP storage business.Display and control products Hikvision continues expanding the central display products,where diverse display modes such as seamless contiguity,transparency,curved surface,touch control and holographic display can enable interactive information acquisition,information inte

158、lligent placement and big data integrated presentation.Hikvisions fine-pitch LED products realize ultrahigh contrast and ultrahigh definition seamless contiguity display and have been extensively applied in monitoring center,command center and other scenarios.Hikvisions LCD Display,based on the inde

159、pendently developed chip-level algorithm,realizes uniform color of entire video wall and multi-scenario display mode.It has also launched the Mini/Micro LED display product,which has been extensively applied in the scenarios that have high requirements for image quality.The control products,based on

160、 technologies in audio/video processing,multimedia data fusion,ultrahigh resolution,AI,and concentrated and distributed structure etc.,empowered decoder,splicing controller,video integrated platform and other classic products,which diversified the applications in monitoring center and command center

161、 and has maintained the industry-leading position.Access control intercom products For MinMoe series short distance ID recognition access control products,the new generation multi-modal ID recognition access control system was launched.This series does not only contain Hikvisions advantageous visual

162、 technologies such as high-accuracy ID recognition,fast pass,excellent dim light effect and freedom from white light contamination,but also supports voice interaction functions such as device activation and talkback;on-screen card swiping and thin body offer upgrade experience.Hikvision 2019 Annual

163、Report 27 The access control intercom products also provide users with all-round support services covering products,product portfolio solutions and system solutions;the access control products have substantially enhanced system security and convenience in many projects such as intelligent community,

164、construction site ID identification system,campus ID recognition pass,enterprise campus construction,office building renovation,tourist attraction,and station ticket checking,etc.Video intercom product,as an important product created by the Company for residence and real estate projects,integrates A

165、I community and whole-house intelligence,to provide users with better intelligent life experience.Intelligent traffic products In the field of intelligent traffic,the Company has integrated the video and multi-dimensional perception technologies to create the edge domain fusion product package compr

166、ised of intelligent traffic cameras+road intelligent terminals.The Environmental Protection Checkpoint Capture Product Family,together with the same series products such as Environmental Protection Intersection Violation Capture System,Environmental Protection Micro Checkpoint/Smart Surveillance Cap

167、ture System etc.have solved a problem that has vexed the industry for over a decadethe light pollution induced by white light sharp-flash,making contribution to eliminating light pollution.For comprehensive control of road traffic,the new business applications such as high beam light detection,warni

168、ng of pedestrian running the red light,reminder of courtliness to pedestrians,whistling capture system and black smoke vehicle detection have been deeply integrated into urban civilization.Hikvision 2019 Annual Report 28 Through the deep fusion of millimeter wave radar and video technologies,the Com

169、pany has launched the Radar-Assisted Series Product,which are capable of all-weather,multi-scenario,multi-target,multi-lane,high-accuracy and high-speed traffic information detection.They have overcome the technological bottleneck of the traditional one-dimensional video perception and enabled the i

170、mplementation of applications such as traffic safety pre-warning,event detection and road scenario multi-dimensional information perception etc.In the field of traffic signals control,the Company enabled storage and analysis of multi-dimensional traffic big data at the platform end based on AI Cloud

171、 technological framework.Front-loading and optimization of signal control algorithms have enhanced stability,timeliness and reliability of the system and also are able to support more complex regional coordination and arterial coordination.In the field of static traffic,the Company has integrated AI

172、 and RF technologies into the system,and launched the new-generation parking products and solutions which could improve parking management efficiency,thus creating value for customers.The radar detection products integrate the multi-dimensional IoT perceptive technology,without the need for ground i

173、nduction coil,are able to simplify construction and maintenance process of projects,protect personnel and vehicles,and improve user experience.In the field of mobile law enforcement,Hikvision launched the independently designed dual-system intelligent collection station,which applies the embedded Li

174、nux+Android dual-system design and has substantially improved the system stability and guaranteed usability.Transmission products At the edge node,various security terminal products are connected through the transmission products such as Hikvision 2019 Annual Report 29 Smart Switch,Fiber Converter,W

175、ireless Bridge and etc.,to constitute a Smart Video Transmission System.Through the measures of Visualized Network Topology and Integrated Network Management,this system integrates the security system and network system into one system,ease the requirements for maintenance personnels ability and imp

176、rove the efficiency of problem detecting,problem positioning and problem analysis.For edge domain and cloud center,Hikvision has launched the new generation data center level core switch product,which uses the CLOS architecture5 to separate data control hardware from transmission hardware and improv

177、e the reliability of core network.This product can support a project that maximally has 10,000 video channels.Alarm products Hikvisions alarm products have continuously upgraded the key technologies such as wireless RF transmission,passive infrared detection,microwave detection and pet detection etc

178、.,constantly improving multi-dimensional perception capability;based on AI technology,ID recognition and other intelligent technologies are applied in Intrusion Alarm Products and Public Alarm Products.Further integrating with the related technologies such as video,access control,intercom and therma

179、l imaging,the alarm products and business management products have evolved from localized products to cloud-based portable products,in order to enable the online management,alarm cloud management,and help improve service providers comprehensive operation and service capability,due to the opportuniti

180、es in cloud business development.5CLOS architecture:this is a multilevel circuit switching architecture for frame type switches and can separate control hardware from retransmission hardware to enhance the reliability of the whole machine.Hikvision 2019 Annual Report 30 The Intrusion Alarm Products

181、have strengthened the advantage of wireless RF technology,and the Hybrid Control Panel Products have been launched,further expanding into the low-end alarm market and enriching the product series.The Public Alarm Products have evolved from single emergency alarm to integrated product applications in

182、cluding emergency distress call,emergency response,rescue equipment/facilities management and medical assistance;with the fusion of various AI technologies,the Public Alarm Products enable the fast recognition,response and action.Interactive flat panel displays(IFPD)The Companys conference system of

183、fers the full-process solution that integrates conference doorplate,video conference,interactive flat panel display,and conference management system.Before conference:the system provides online appointment,data sharing,conference notification,non-inductive sign-in and doorplate synchronization.Durin

184、g conference:the system provides wireless screen projection,white board writing,interactive coordination,and voice minutes of meetings.After conference:the system provides centralized equipment control,statistical analysis of data,and sharing of minutes of meetings.Together,it offers users safe,inte

185、lligent and highly efficient conference experience.Hikvision 2019 Annual Report 31 The new IFPD products use high-accuracy infrared touch control/capacitive touch control technology to offer better touch control experience;the built-in 4K camera and 8-microphone array support voice recognition;the c

186、loud conference system has been created,to make the video conference and coordinated cooperative office work more intelligent,more efficient,more convenient and safer.To solve the problems of scenario variations and fragmentation of applications,Hikvision uses its abundant R&D resources,efficient an

187、d stable supply chain system,ample market channels and diversified product development to offer customers and users the optimal solutions and boost the trend of intelligentization.The Company will continue exploring technological researches on hardware,software,system,maintenance,security and other

188、aspects,to gradually build the AI ecosystem of intelligent business and expand the fragmented AI application market.3.Steady upgrade of core business Hikvision has been offering various solutions since 2009,which cover more than 40 sub-industries encompassing seven major vertical industries,i.e.publ

189、ic security,transportation,law enforcement,finance,culture,education and healthcare,energy and buildings,driving the rapid growth of the Companys business and leading the security industry into the solution-oriented era.In order to better adapt to the market demand of the industry and enhance the Co

190、mpanys internal operating efficiency,Hikvision initiated the restructuring for its business structure in 2018,adjusted the allocation of business resources,and divided its domestic businesses into three business groups:Public Business Group(PBG),Enterprise Business Group(EBG)and Small and Medium Ent

191、erprise Business Group Hikvision 2019 Annual Report 32(SMBG).Under the new business structure and based on three different business models,the Company explores further into market demands,coordinates company resources,and strengthens capacity in order to empower public services,help enterprises crea

192、te value,and shape an industrial Internet.3.1 Public Business Group(PBG):Empowering Public Service Optimization 3.1.1 Business Overview With the continued deepening of and advancement in smart services for cities and various industries,such as smart cities,smart police,smart transportation,and smart

193、 urban management,especially as demand for modern governance of the urban areas continues to grow,public service has entered into the crucial stage of transition from“Internet+”era to“smart+”era.The typical business model of the“Internet+”era is“connectivity”,while that of the“intelligence+”era is“e

194、mpowerment”.Undoubtedly,practitioners will opt to empower the public service optimization process by making full use of the Internet of Things(IoT),artificial intelligence,big data and other technologies.As part of its proactive efforts to seize the market opportunities in the industry generated fro

195、m the optimization and upgrading of public services,Hikvision PBG provides government and governmental enterprise users with city-scale comprehensive solutions combining“perception+data+cognition”features to build the Big Data-AI Fusion Base for smart city and establish big data operation and mainte

196、nance centers and the operation and management centers for cities,offering data and application open-source capabilities,and supporting smart services in various aspects such as public security,transportation,precise governance,natural resources and ecological and Hikvision 2019 Annual Report 33 env

197、ironmental protection and etc.3.1.2 Core technologies:building a Big Data-AI Fusion Base to facilitate the intelligence of public services Under the development model based on unified Big Data-AI Fusion Base,the smart industries and smart city development complement each other.The smart industries w

198、ill be benefited from the development towards intelligent operation of a city,while smart city will be the inevitable outcome of the development towards intelligence of various industries.Hikvisions smart city Big Data-AI Fusion Base consists a Shared Infrastructure Platform,an Intelligent IoT Perce

199、ption Platform,an AI Cloud Data Fusion Platform,the Urban Space Operation Environment,and an Intelligent Application Open Platform.Shared Infrastructure Platform By coordinating the cloud-edge computing facilities and transmission&storage facilities,we aim to build a unified resource management and

200、scheduling platform,which is equipped with the capabilities of unified operation and maintenance management and resources integration for hardware resources,including computing resources,storage resources,network resources and security equipment,thus establishing capabilities of unified cloud platfo

201、rm management,integrated cloud storage,unified deployment of AI computing,etc.Intelligent IoT Perception Platform The platform provides the access of multi-dimensional perception data and the analysis capabilities of video Hikvision 2019 Annual Report 34 and image intelligent in order to achieve str

202、uctured processing for video and image data.It also offers the AI Open Platform to realize the barrier-free training capabilities for users scenario-based intelligent algorithms.Existing algorithms and algorithms created through training can be stored in the algorithm warehouse in a unified manner.I

203、n addition,the platform provides intelligent algorithm management and deployment capabilities,facilitating management and deployment of multiple types of intelligent analysis algorithms based on the standardized algorithm warehouse to achieve the optimal use of resources.AI Cloud Data Fusion Platfor

204、m By integrating IoT perception data and governmental information data,the platform provides the capabilities in optimizing points governance and deployment plan of IoT perception resources,deepens capabilities in data governance and value mining,and provides users with unified management,convergenc

205、e on demand,efficient governance,and data services of data resources,as well as data mining service capabilities based on knowledge maps and machine learning.Urban Space Operation Environment Based on geographic information services,offering formalized description capabilities in respective of ten t

206、ypes of elements involved in urban governance,such as areas,roads,places,buildings,facilities,network,environment,personnel,organizations,events etc.All elements can be connected with the spatiotemporal benchmark,thus creating public operating environment of a smart city,and serving as the technical

207、 basis for collaboration of urban business.Intelligent Applications Open Platform The Intelligent Applications Open Platform Provides a unified application framework,a series of business components,shields the difference between the underlying data model and artificial intelligence algorithms,provid

208、es an open interface for various capabilities,and supports the development of upper-layer business applications.It offers various capabilities such as unified authentication,access management,application for resources,application management as well as opening of capabilities etc.Hikvision 2019 Annua

209、l Report 35 3.1.3 Realizing industry value Building on the basis of continuously deepened understanding of public security,urban governance,transportation,natural resources and other fields of business,Hikvision PBG is committed to developing solutions for a wide range of scenarios in various indust

210、ries engaging in public service,and aspires to deliver safer environment,more precise service,more convenient transportation,and more habitable ecological environment.Safer Environment Hikvision provides security event monitoring and early warning as well as security protection capabilities tailored

211、 for public security,traffic safety,production safety and emergency management of natural disasters,with the goal to create a safer environment.Hikvision provides industry solutions for public security.It provides a comprehensive application platform for public security videos and images,and provide

212、s a three-dimensional security prevention and control system for typical application scenarios such as street patrol,community security,prevention and control in security checkpoints,security management and control in entertainment facilities and for special industries,security of special service ro

213、utes,while assisting public security officers and the police to carry out investigation and control at circle or layer levels,unit security and control,as well as element management and control,aggregating different kinds of security prevention and control data into a unified data platform,and condu

214、cting early warning,prediction and prevention of security risks through intelligence analysis and judgment,thus facilitating the creation of a safe and harmonious social security environment.Hikvision provides industry solutions for traffic safety.It provides intelligent detection of road traffic vi

215、olations,such as running red lights,opposite direction traffic,overloading,speeding,detection of plate discrepancy and driving non-permitted models,as well as capabilities such as off-site law enforcement,analysis of root causes of traffic accidents,control of disqualified drivers,investigation and

216、control for highways,management of black points of road traffic violations,thus facilitating the creation of a safe and intelligent traffic safety environment.Hikvision provides industry solutions for production safety.It provides various capabilities covering monitoring and early warning for safety

217、 production of enterprises engaging in production of hazardous chemical products,small and micro enterprise,coal mines,non-coal mines,tailings ponds,fireworks and firecrackers etc.It also offers capabilities such as smoke detection,fire point detection,recognition of obstruction of indoor and Hikvis

218、ion 2019 Annual Report 36 outdoor fire passages,detection of uniforms compliance,detection of personnel on duty and absence from duty etc.,with the aim of building a safe and efficient safe production environment.Hikvision provides industry solutions for natural disasters.It provides capabilities su

219、ch as comprehensive monitoring of natural disasters,early warning of disasters,comprehensive risk assessment of disasters,intelligent analysis,consultation,research and judgment on the evolution of disasters,etc.,with the goal to build an emergency security environment to reduce disaster risks.More

220、precise services Hikvision provides intelligent conditions detection and refined management service capabilities for urban management and comprehensive governance of public security such as urban landscape&appearance,street order,construction works,public facilities,landscaping,housing and land,etc.

221、,thus facilitating the provision of more precise services.Hikvision provides industrial solutions for urban municipal management.Such solutions include:intelligent management applications for urban landscape,public facilities,housing and land,etc.;intelligent monitoring capabilities for the status o

222、f public facilities such as manhole covers,trash cans,etc.;landscape monitoring capabilities for inclination and falling down of ancient trees;intelligent monitoring capabilities for various types of road facilities;intelligent detection capabilities for various behaviors,such as illegal roadside st

223、alls,operations outside the defined store boundaries,piling and storage of sundry items,road occupation for operation,illegal parking,etc.;intelligent identification capabilities for events having negative influence on the appearance of cities,such as identification of temporary roadblock incidents,

224、detection of road congestion,detection of water accumulation on road,with the goal to build precise urban and municipal management service capabilities.Hikvision provides industrial solutions for comprehensive management of social security.It provides event monitoring and early warning capabilities

225、such as detection of crowd density in public places and early warning for trampling events,public security events,regional intrusions,and crossing warning lines,etc.,with the aim of building capability of precise and comprehensive management of social security.More convenient transportation Hikvisio

226、n provides smart service support capabilities for urban transportation,such as smart road networks,smart traffic management,smart public transportation and smart parking etc.,with the aim of making transportation Hikvision 2019 Annual Report 37 more convenient.Hikvision provides industrial solutions

227、 for transportation networks.Such solutions include:intelligent support capabilities for road network facilities,e.g.expressways,roads,railways,rail transit and urban roads,including road network entrance and exit control,urban road intersection control,traffic safety intelligent monitoring,intellig

228、ent analysis of traffic conditions,intelligent detection of traffic flow,as well as optimization of traffic signal control based on the analysis of traffic big data;intelligent construction support capabilities for transportation hubs,such as ports,passenger and freight stations,airports and railway

229、 stations etc.,with the aim of building“smart roads”.Hikvision provides industrial solutions for traffic management.Such solutions include:dynamic lane management capabilities,e.g.variable lanes,tidal lanes and bus lanes etc.;key road management capabilities such as early event warning on key road s

230、ections,early behavior warning on dangerous driving behavior,examination of traffic parameters;key vehicles Management and control capabilities,such as key vehicle enterprises management and key vehicle traffic management;road traffic safety early warning and analysis capabilities such as early warn

231、ing on road rights conflict,intersection safety scoring,real-time monitoring of road conditions,analysis in respect of effectiveness of early warning,etc.;traffic police patrol,AR real-world command,security of special service routes,green-light traffic of special service routes,with the goal to fac

232、ilitate“smart traffic management”.Hikvision provides industrial solutions for public transportation.Such solutions include:bus management and deployment capabilities,including preparation of bus schedules,vehicle deployment,vehicle operation deployment and statistical reports on bus deployment;safet

233、y management capabilities for public transportation,such as vehicle positioning,driver attendance,vehicle video inspection,operation and maintenance of vehicle terminals,active monitoring of driver safety as well as road risk management etc.;capabilities such as comprehensive management of bus stati

234、on,electronic bus-stop board management,bus passenger flow data analysis,and etc.;taxi operation supervision capabilities;bus supervision data analysis capabilities,with an aim of shaping“smart public transportation”.Hikvision provides industrial solutions for urban parking.It provides convenient pa

235、rking fee payment channels that support human-free parking lots,provides automatic detection and recording of parking processes,integrates urban parking networks,unifies management of integrated operations,aggregates parking space data,establishes urban parking data centers,organizes and synthesizes

236、 data,in order to offer convenient and diversified vehicle owner service capabilities such as parking space searching,reservation,routes navigation,electronic payment,monthly parking package and bill query etc.,with the goal to achieve“smart parking”.Hikvision 2019 Annual Report 38 More habitable ec

237、ological environment Hikvision provides intelligent monitoring management and service capabilities for monitoring and management of natural resources,water resources and water services,and ecological environment,with the aim of creating a more habitable ecological environment.Hikvision provides indu

238、strial solutions for monitoring and management of natural resources.Such solutions include:forest and grass fire intelligent monitoring and management capabilities such as early warning and positioning of fire risks,research and judgment on early warning of fire risks,analysis of fire spreading,fire

239、 management,management of documents on fire accidents etc.;smart territory monitoring capabilities such as providing video-based inspection for law enforcement on unauthorized construction on the territory,law enforcement supervision with satellite images,intelligent analysis and alarm on unauthoriz

240、ed construction,collection of event clues,research and judgment on alarming events,etc.;natural conservation area monitoring and management capabilities such as animal monitoring,disease and pest control,patrol and management,biodiversity monitoring,and etc.;national park big data service capabiliti

241、es such as evaluation on survey&monitoring,regulatory decision analysis,emergency planning for geological disaster,service for forestry industry etc.,with the aim of materializing intelligent supervision of natural resources.Hikvision provides industrial solutions for monitoring and management of wa

242、ter resources and water services.Such solutions include:rivers and lakes intelligent supervision capabilities such as river and lake cleaning management,sand mining management,water area shoreline intelligent management,etc.;intelligent supervision capabilities for water conservancy project such as

243、safety supervision of water projects under construction,visual transportation management of water engineering;water disaster prevention and supervision capabilities such as water and rain monitoring and early warning,visual operation and management of flood dispatching;cloud management platform for

244、large-and small-scale water conservancy projects for the purposes of dam safety monitoring,water project inspection and supervision,etc.,with the aim of achieving intelligent supervision of water resources and water services.Hikvision provides industrial solutions for ecological environment monitori

245、ng and management.Such solutions include:intelligent monitoring capabilities for air pollution,such as management and control of smoky vehicles on road,monitoring of burning in open space,vehicle control under heavy polluted weather conditions,dust control of construction sites,etc.;enterprise pollu

246、tion management capacities,such as monitoring of unauthorized discharge of sewage and waste gas,pollution source station management,and etc.;ecological environment big data analysis capabilities,such as water environment analysis,atmospheric environment analysis,Hikvision 2019 Annual Report 39 pollu

247、tion source census analysis and etc.,with the aim of achieving intelligent supervision of ecological environment.3.2 Enterprise Business Group(EBG):Facilitating Value Enhancement of Enterprises 3.2.1 Business overview The age of digital economy has arrived.Digital transformation has accelerated the

248、creation and transmission efficiency of information,and driven profound changes in organizational structure and management mechanisms.Hikvision EBG makes proactive efforts in riding the wave of digitalization in the industry,and is committed to becoming a digital transformation partner for IoT scena

249、rios and AI applications for industrial users.In 2019,building on the AI Cloud architecture,Hikvision EBG business relied on the technology capabilities in respect of intelligent IoT and the fusion of IoT and information networks to develop a digital enterprise solution that integrates conventional

250、information systems,devices and facilities IoT,and intelligent scenarios IoT.These efforts have helped enterprises build digital transformation and gain insights into development opportunities,as well as enable them to extensively engage in scenarios of enterprise campus,production and manufacturing

251、,healthy communities,smart construction sites,coal mining and metallurgy,petroleum and petrochemical,retail chains,education and teaching,financial services,cultural and tourism,medical and geriatric care,etc.3.2.2 Core technology:establishing intelligent scenario IoT and developing digital enterpri

252、se applications Intelligent Scenario IoT is a new type of infrastructure in the digital era,laying the foundation for realizing the Hikvision 2019 Annual Report 40 fusion of IoT and information networks and digitalization.Based on technologies such as visual perception,machine vision,thermal imaging

253、,millimeter wave radar,Hikvision focuses on intelligent scenarios IoT and devices and facilities IoT,and carries out research on industry business application.Utilizing the AI Open Platform,IVS Industry Integrated Application Platform and the“One Core and Two Wings”strategy of Cloud Visualized Publi

254、c Cloud Platform,it realizes intelligent scenarios IoT under the single-domain and multi-domain governance framework of enterprises,in a bid to support enterprises to realize the digitalization of scenario elements based on the environment,people,behavior etc.,and offer digitalized comprehensive sol

255、utions for industry users.(1)AI Open Platform:making continued efforts in developing the visual perception engine Leveraging on the AI Open Platform as the visual perception engine,Hikvision EBG continues to improve its one-stop AI algorithm customization and application system tailored for industri

256、al fragmentated scenarios.A series of automation components and tools are designed to integrate the full chain of AI development and application and achieve seamless integration with enterprises existing systems,making the AI technology more accessible and affordable to enterprises,and achieving rem

257、arkable results in innovative practice across various industries.Leveraging on the AI Open Platform,Hikvision EBG supports biopharmaceutical enterprises to realize innovation approaches in GMP6（Good Manufacturing Practice）compliance management,through which such enterprises conduct intelligent analy

258、sis and give pre-warning on the personnel behavior,material placement and facility operation status in crucial production lines,promoting the visualization of management throughout the pharmaceutical production process and improving QA(Quality Assurance)inspection efficiency by 50%.Hikvision EBG coo

259、perates with energy enterprises to set up the intelligent system in coal mines,which forms an efficient closed-loop business process consisting of real-time pre-warning,handling and verification of events regarding the potential safety hazards arising from behaviors of underground personnel,equipmen

260、t and facility status and environment parameters etc.An AI livestock asset stock-taking system was developed by Hikvision EBG through cooperation with livestock and poultry farming enterprises.The system enables intelligent statistics analysis on the number of pigs,which satisfies the urgent demands

261、 for asset stock-taking and surveillance on diseases and reduces comprehensive costs by 15%for enterprises.6 Good Manufacturing Practices.GMP is a set of compulsory standards applicable to pharmaceutical,food and other industries.It requires enterprises to meet hygienic quality requirements from raw

262、 materials,personnel,facilities and equipment,production processes,packaging and transportation,and quality control in accordance with relevant national regulations,in order to form a set of operable operation specifications to help enterprises improve the enterprises sanitation environment,and time

263、ly find and improve the problems in the production process.Hikvision 2019 Annual Report 41 (2)IVS Industrial Application Platform:extensive connectivity to support the digital applications for enterprises Relying on the Unified Software Technology Architecture of Hikvision,the IVS Industrial Applica

264、tion Platform has put in place a variety of intelligent IoT basic service capabilities,including IoT access,device control,video online connectivity,data resource management etc.By taking advantage of the service-based architecture and component-based development technologies,Hikvision EBG has estab

265、lished the capabilities to drive the rapid shift from common business services to sub-sector applications,and provided enterprises with digital application softwares tailored for different sub-sectors,such as:Digital operation and command center of enterprises:It integrates intelligent IOT technolog

266、y,data analysis and 3D modeling etc.to realize the overall digitalization for enterprise campuses,manufacturing plants and logistic parks.Targeting at production management,park management and energy consumption management,etc.,it aims to help enterprises to achieve transparent management of accurat

267、e perception and smart decision-making.Safety production management platform:Targeting the production and operating activities of power grid,petroleum and petrochemical,steel metallurgy,coal mining,energy and chemical industry,it adopts video-centered IoT technology,together with the AI technology s

268、uch as intelligent behavior analysis,to offer effective personnel management,operation control,safety supervision,equipment inspection,danger source detection,infrared temperature measurement,and etc.,thus assisting management and decision-making,effectively preventing accidents,dangers and other ha

269、rmful factors,safeguarding the safety and health of staff and avoiding damages to equipment,facilities and environment.Intelligent logistics park platform:Targeting managers of logistics parks,taking into account the overall internal operation of the parks,it effectively manages the access of person

270、nel and vehicles and the records and files through intelligent technological methods,and realizes the unified scheduling management of the internal platforms of the parks.Intelligent construction site management platform:It aims to help the construction companies realize the supervision on personnel

271、,materials,environment,and safety operations.It improves the refined management of the construction sites,through a multi-dimension perception and analysis of construction sites management based on the real name registration system of personnel management,access control data,environment surveillance

272、 data,helmet use data,and boundary crossing data in dangerous areas.Smart community management platform:Business applications,such as inspection and assessment,care Hikvision 2019 Annual Report 42 for property owners,payment and repair services,are provided for property management service companies

273、with efficient management tools to improve the quality of property services and build up a healthy community.Upholding the concept of openness and convergence,the IVS Industrial Application Platform provides a plenty of OpenAPI services to achieve full opening of product capabilities and help partne

274、rs to integrate intelligent IoT applications in a fast,convenient and secure way,and to jointly empower enterprises in digital transformation.(3)Cloud Visualized Management Platform:enterprise-level SaaS application with Video+AI as its Core As a public cloud application service portal based on scen

275、ario intelligence,Cloud Visualized Management Platform relies on the device access management of EZVIZ cloud to provide SaaS cloud services for chain business,community,general education,logistics and other sub-sectors,lowering the digital transformation threshold for enterprises.In the retail chain

276、 industry,based on video-based remote inspection applications,Cloud Visualized Management Platform integrates the capabilities of AI Open Platform to apply scenario-based algorithms to the daily store inspections,which are widely used in aspects such as out-of-stock reminder,shelf inspection,obstruc

277、tions in fire exit routes and regulations on staff clothing,and etc.In general education campuses,Cloud Visualized electronic class tablet is used in class attendance,class supervision,class evaluation,cultural display,information dissemination,inquiry about curriculum,home-school interaction and di

278、stribution of third-party application etc.,reducing costs of education management for schools and building a bridge for home-school interaction.Within enterprises,in conjunction with the series products under DeepinGo,Cloud Visualized Management Platform achieves touch-free ID authorization/recognit

279、ion access control and working time attendance to help enterprise enhance digital management.In 2019,Cloud Visualized Management Platform continued to see fast growth both in the number of users it served and the number of devices it connected with,and created greater value through sustained applica

280、tion innovation in sub-sectors to increase customer loyalty.Through a more extensive and convenient connectivity with the external systems through open platform,Cloud Visualized Management Platform can connect with mainstream application software in the target market of enterprises,realizing the shi

281、ft from purely“being integrated”to“multi-application interconnectivity”and“integrating third-party applications/services”to achieve opening and interconnectivity and integration into SaaS ecosystem.Hikvision 2019 Annual Report 43 3.2.3 Realization of industry value Based on its industry insight and

282、business knowledge,Hikvision EBG continues to specialize in five industry sectors:energy and metallurgy,culture,education and health,intelligent buildings,industrial and commercial enterprises,and financial services.Relying on the digital solution system of the industry,concerned and driven by the d

283、emand for user value,Hikvision EBG builds a value business system oriented to“narrow the management gap,enhance business efficiency,regulate operation practices and prevent potential security hazards”with the aim of achieving user value.Narrowing the management gap Leveraging on the video-centered I

284、oT perception and connectivity capabilities,users can achieve holistic control and realize the change from“on-site management and decentralized management”to“center-based management and centralized management”,thus reducing the distance between enterprise managers at all levels and production scenar

285、ios to mitigate management anxiety.For senior management of enterprises,the Company offers three technical approaches:AR real command,digital command view and data dashboard,enabling users to achieve holistic control and get insight into details at the same time.For example,in the field of enterpris

286、e production bases,we build digital command map for production base to realize management of factory on-site,personnel,equipment and facilities as well as energy consumption in a 3D digital world.The Company also created data dashboard to provide real-time feedback on the operation status of product

287、ion bases and manufacturing workshops through detailed indicator system,meeting the needs of precise management scheduling as well as research and decision-making application.In terms of front-line management,we have developed video+AI technology to facilitate people-in-charge in implementing enviro

288、nmental and safety inspections,remote monitoring and supervision and closed-loop rectification of production operations and related equipment,assisting enterprises to achieve standardized services or standardized operation management.For example,in the field of quality control for smart community,th

289、rough transformation on intelligent patrol,we realize intelligent supervision and automatic pre-warning of various scenarios such as community boundaries,fire protection management,obstructions in fire exit routes,code of conduct for property management,reducing a lot of labor cost for community sup

290、ports.In addition,AI remote inspection is also widely used in SOP7(standard operating procedure)inspection of production workshops,retail 7 Standard Operating Procedure.Refers to describing the standard operating procedures and requirements of an event in a uniform Hikvision 2019 Annual Report 44 ch

291、ain stores inspection,substation inspection and many other fields.For scenarios where the government has imposed regulatory requirements,the Company provides efficient visualized online monitoring approaches to carry out enforcement inspections,conduct compliance inspections,risk identification and

292、real-time quantitative assessment,and early risk warning for entities subject to regulation,so as to achieve unified management,collaborative scheduling and enhance service capabilities.In the field of general education,Hikvision facilitates the education authorities to carry out inspection and safe

293、ty supervision of hidden issues in schools and develop the benchmark of informatization in education.In the field of food and drug supervision,Hikvision helps users build up a catering supervision platform to ensure food safety in food preparation areas of kitchens and enhance efficiency of supervis

294、ion.Improving operational efficiency Production results,time and manpower are the three elements of operational efficiency.Through the integration of AI and intelligent IoT technologies,Hikvision helps various businesses to drive the automation,online operation and standardization of process,and pro

295、mote operational efficiency across various areas such as production,logistics,education,peoples livelihood:improving the quality of production and level of service to achieve improvement in the quality of deliveries;optimizing business processes and enhancing production capacity to achieve reduction

296、 in time consumed;reducing manpower input and labor costs to achieve optimization of staffing.format,in order to guide and standardize daily work.The SOP of each process on the production line stipulates the operation details and order standards of the workers assigned to this process.The assigned w

297、orkers operations according to the SOP is the basis to assure the product quality and production efficiency.Workshop SOP inspection refers to inspecting whether the workers at each key station are operating according to the SOP requirements of this process.Hikvision 2019 Annual Report 45 Improving q

298、uality of production:By integrating machine vision into production process,Hikvision helps users build intelligent production lines,which assist users with defect detection and volume measurement in the production process,and improve inspection efficiency to enhance yield rate and the overall qualit

299、y of production.For example,in the field of electrical and electronic equipment manufacturing,Hikvision helps users to realize fully-automatic supervision of the status of the material port on the production line,which significantly improves the quality of order delivery;in the field of coal mining

300、and metallurgy,Hikvision helps users to carry out automatic inspection of the material blockage,runout and coal loading at the belt transfer point to avoid production accidents and reduce energy consumption.Enhancement of service:In the cultural tourism and education sectors,the Company realized onl

301、ine,transparent and intelligent business operation through video networking technology and facilitated the enhancement in service quality.In the field of general education,we work together with general education users to create the new form of intelligent campus that integrates classroom teaching,bo

302、ok lending,dormitory management,on-campus medical treatment and other functions,thus realizing their mission of servicing and educating students.Optimizing business processes:In the on-site logistics scenario,Hikvision has created a digital platform and enhance the efficiency of on-site logistics sy

303、nergy.As part of these efforts,the Company works together with users in the logistics industry to build intelligent logistics parks,realizing seamless connection,intelligent perception and optimization in collaborative interaction of people,vehicles and platforms through identification on digital pl

304、atforms,which results in enhancement of the platform resource utilization rate by more than 30%.Reducing labor costs:In the field of financial services,Hikvision created the staff-free vault by taking advantage of human-machine collaboration.Through the integration of AGV,robotic arm,machine vision,

305、etc.,Hikvision 2019 Annual Report 46 automated transportation,sorting and storage of the goods in the vault are realized,thus reducing labor intensity,releasing staffing configuration,and improving operational efficiency.Standardizing operating behaviors Based on the conventional management approach

306、es of human supervision and training&education,the Company integrated AI scenario-based perception technologies and business informatization management to strengthen the visualization of supervision approaches and the awareness of standardized operation,providing efficient assistance to establish st

307、andardized management of process operation and scenario-based operation behaviors.In process-based production scenarios such as energy metallurgy,industrial manufacturing,equipment manufacturing,electronic appliances as well as food and drug and FMCG(fast-moving consumer goods),the AI scenario-based

308、 perception and operation management system can be integrated to enhance operator awareness of standardized operation,and strengthen safety monitoring through intelligent supervision of the operation process,and to enhance intrinsic safety based on data insight.For example,in the power sector,the Co

309、mpany works with grid users to build an on-site safety operation control platform for a holistic operation plan management and safety inspection and management for transmission lines,power distribution,power network for agricultural purposes,technical retrofitting,comprehensive governance and infras

310、tructure projects.Based on customized AI-perceptual technology,the status of operational elements and behavioral norms in production scenarios are analyzed and combined with management needs to achieve effective monitoring.In the equipment manufacturing scenario,Hikvision assisted users engaged in t

311、ire manufacturing to achieve intelligent management of compliance behavior on tire appearance quality inspection,resulting in a decrease of over 30%in Hikvision 2019 Annual Report 47 QA resource investment.Through IoT sensing technologies such as intelligent perception,outdoor 3D positioning and etc

312、.,Hikvision helps meet the two-way supervision needs of construction companies and owner units using intelligent construction site visualized supervision that integrates site personnel operation management,real name management of staff,environmental management as well as mechanical management.In 201

313、9,the Company assisted users to implement a large-scale real name attendance system,achieving intelligent comprehensive management covering attendance,access and behavior monitoring.In the financial outlet scenario,intelligent supervision is carried out on the process of hand-over of deposit box at

314、the outlet,enabling timely detection of abnormalities and ensuring the smooth progress of escort operation.This is achieved through multi-level authentication of vehicle plates and personnel as well as automatic matching with the escort schedule.Preventing potential safety hazards With full coverage

315、 of business activities and the combination of intelligent perception and fire prevention,the Company created a three-in-one enterprise safety prevention system integrating intelligent personnel safety management,intelligent equipment and facilities safety monitoring,and intelligent environmental sa

316、fety perception,thus establishing a“full coverage,multi-dimensional”fire protection monitoring network.The Company also created innovative fire technical prevention,promoting the transformation in fire protection management from post-event accountability investigation to precautionary warning,improv

317、ing emergency handling capacity,and reducing the work pressure of fire safety management personnel.The Company integrates AI technologies to create a security management system for business management personnel and front-line staff.In typical high-risk production sites such as construction sites,oil

318、 fields and coal mines,Hikvision deploys intelligent monitoring systems for a series of activities such as Hot Work8,ascending operations,personnel leaving the post,and safety uniforms and etc.,to achieve active early warning of abnormalities and violations,and to reduce the occurrence of production

319、 accidents.8 Hot Work refers to welding and cutting operations in the no-fire area and the use of blowtorches,electric drills,grinding wheels,etc.in flammable and explosive places for temporary operations that may generate flames,sparks,and hot surfaces.Hikvision 2019 Annual Report 48 With the use o

320、f an intelligent technical prevention system,in retail stores,real-time monitoring of the transaction process is implemented,enabling management staff to effectively focus on abnormal orders for retrospective accountability,and to reduce losses caused by internal theft.For example,the Company helped

321、 a supermarket chain build an intelligent loss prevention system in 500 branch stores,enabling efficient and accurate recognition of habitual thieves,resulting in reduction of 13.7%in single-store loss.By integrating various intelligent perception approaches such as video AI and thermal imaging and

322、etc.,Hikvision provided early hidden danger warning and asset hidden danger detection in high-risk scenarios including substations,transmission lines,pipelines,steel metallurgy production and manufacturing,ensuring stable production operations.In the metallurgical industry,Hikvision helped a user in

323、 the copper industry implement real-time temperature measurement and pre-alert of electrolytic devices,which effectively avoids the potential hidden trouble of excessive power consumption and reduced product quality,reducing inspection costs by 75%.Based on the intelligent IoT and firefighting linka

324、ge,the Company combined intelligent fire alarm,gas leak alarm,water,electricity safety monitoring,and AI video integrated“security and fire protection integration.It has been widely applied in more than 10 industries such as enterprise campus,finance,education,hospitals,cultural and historic sites,e

325、tc.In addition,a project of integrated security and fire protection achieved the unified management of 373 high-rise buildings and 108 key units.Since the completion of the project,there has been a significant increase in the intact rate of firefighting facilities and an overall decrease of 35%in th

326、e number of alarms.Hikvision 2019 Annual Report 49 Digital transformation will become a prioritized strategy for every enterprise,driving a new stage of rapid development of the digital economy and accelerating the transformation of the industrial value chain,iterative upgrading of new business mode

327、ls and new business formats.“Business online,intelligent IoT,fusion of IoT and information networks”is the digital evolution path promoted by Hikvision EBG.In 2020,Hikvision EBG will continue to take advantage of profound technology accumulation and enterprise service experience to promote the vigor

328、ous development of industrial digital transformation.Openness and cooperation represent the new normal state in the digital age.Hikvision EBG continues to uphold the philosophy of full openness,division of labor and collaboration,and win-win cooperation,while actively working with users and partners

329、 to create dynamic solution application ecosystems,facilitating the digital transformation of various industries.3.3 Small and Medium Business Group(SMBG):Building Industrial Internet With the progress in the digital wave as well as the change and enrichment of business forms,the digitalization capa

330、city of SMBs has now become a key productivity factor for them to seize opportunities and evolve.With a focus on the fast-growing SMB group and building on Hikvisions leading intelligence,big data,Internet and service capabilities,Hikvision SMBG strives to create an integrated security industry Inte

331、rnet covering mall transactions,communities,programs,content,services,and tools.The goal is to reach millions of security practitioners and users,helping partner companies throughout the full chain of operations,strengthen industrial collaboration and realizing optimal allocation of resources.Hikvis

332、ion SMBG endeavors to become a preferred one-stop product and service provider trusted by users.Through community-based service operation and intelligent visualization management,Hikvision SMBG helps SMBs reduce costs and increase efficiency,while enhancing their business competitiveness amidst a ra

333、pidly changing market environment.Effective synergy of distribution channels is the foundation of a well-performing SMB business.Hikvision SMBG has built the Hikvision SMBG E-commerce Platform,an industrial Internet platform,which supports official mall transactions,cloud services and SaaS applications,provides users with a professional solution library and knowledge learning library,and optimizes