Environmental, Social and Governance ReportHANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
2023
About Hikvision-Leading the Future of AIoTMessage from the Management
Tech for Good
Tech For Homeland 13Tech For Environment 17Tech For Industry 21Tech For Community 26
GovernanceResponsibilityStrengthening Corporate Governance 34Strengthening Risk Management 36Building Compliance Ecosystem 38Adhering to Business Ethics 42Respecting and Protecting Human Rights 44
Product ResponsibilityPromoting Technological Innovation 48Guaranteeing Product Quality 5 1Delivering Quality Services 54Network and Information Security 57
EnvironmentalResponsibilityGreen Management 64Green Products 67Green Production 7 1Green Operation 75Green Action 77
EmployeeResponsibilityGathering Diverse Talents 80Safeguarding Employee Rights 83Protecting Employee Health and Safety 86Empowering Employee Growth 88Enhancing Employee Care 90
Partner Responsibility Responsible Supply Chains 96 Contributing to Industry Ecosystem 99
CommunityResponsibility
Hikvision STAR Program 106Contributing to Community Development 109
ESG ManagementESG Management Philosophy and Framework 05Material Topics 06Stakeholder Engagement 07Honors and Awards 09
Appendix 1: KPI TablesAppendix 2: GRI Content Index -- "Refer to GRI Standard"About This ReportReader Feedback
0203
About HikvisionLeading the Future of AIoTHikvision is committed to serving various industries through its cutting-edge technologiesof multi-dimensional perception, artificial intelligence, and big data, leading the future ofAIoT: through comprehensive machine perception technologies, we aim to help people betterconnect with the world around them; with a wealth of intelligent products, we strive to identifyand satisfy diverse demands by delivering intelligence at your fingertips; through innovativeAIoT applications, we are dedicated to empowering every individual to enjoy a better future bybuilding an intelligent world that is more convenient, efcient and secure.
An excellent company responds to the needs of society continuouslyand effectively, so that the company can create value for the society andsustain its vitality.In 2023, Hikvision completed the initial stage of the transformation onAIoT strategy and actively promoted digital transformation businesses withthe aim of creating value for our customers in quality, efciency, and cost-effectiveness. To fulfill our commitment to public welfare, we launchedvarious initiatives. For instance, we leveraged intelligent technologiesto assist farmers in Sichuan with apple cultivation; implementeddigital intelligence solutions to safeguard the heritage of Dunhuang;conducted virtual classes for children in remote mountainous areas;aided management officials in Lanzhou City in developing intelligenturban environmental sanitation systems; and contributed to the protectionof endangered wildlife. Both customer satisfaction and our businesssuccesses align closely with our vision for a better world, as we dedicatedourselves to fostering a shared development with our customers andsociety at large.Practicing the ethos of "Tech for Good", adhering to "pragmatism", andexploring "Green" transformation, Hikvision leverages our products todeliver the value of sustainable development. Through digitalization,we empower urban management, boost vitality in rural areas, establishintelligent natural reserves, mitigate natural disasters with technologicalinsights, and propel the digital transformation of industries with intelligentlogistics. These ongoing innovations underscore the Company's valueand exemplify our proactive response to the evolving needs of societaldevelopment. We rmly believe that together with the momentum of digitaltransformation and technological advancements, we will attain stable andsustainable growth.Perception for goodwill leads to the extension of knowledge. Shared idealscontribute to a sustainable future.
Message from the Management
Chief Compliance Officer
(CCO), HikvisionHuang Fanghong
April 2024
0405
ESG Management Philosophy and FrameworkHikvision, as a responsible corporate citizen, upholds the ESG management philosophy of "integratingcorporate social responsibility and sustainable development philosophy into business, and becomingan innovation-driven, well-respected global technology company". Our ESG management framework,with the ethos of "Tech for Good" as its core, is geared towards fostering Tech for Homeland, Tech forEnvironment, Tech for Industry, and Tech for Community, based on the guiding principles of integrity,compliance, green and low-carbon development, and harmonious coexistence. With six majorresponsibilities serving as our lens and various organizational processes to support, this model servesas a catalyst for the mutual enhancement of ESG disclosure and ESG management, thus shaping aclosed-loop of continuous ESG improvement.On January 29, 2024, Hikvision ofcially joined the United Nations Global Compact (UNGC), afrmingour dedication to upholding the Ten Principles rooted in UN conventions. These principles encompassfundamental aspects such as human rights, labor, environment, and anti-corruption endeavors. Ourcommitment in this aspect will also contribute to the realization of the 17 United Nations SustainableDevelopment Goals (SDGs).
ESG Management
ESG Management Philosophy and Framework
Material TopicsStakeholder EngagementHonors and Awards
0607
Stakeholder Engagement
Based on the materiality matrix, the Company actively responds to the expectations and demands ofstakeholders, such as the government, regulators, shareholders, and customers. By sorting out andanalyzing the concerns of stakeholders, we take concrete actions as our response.
Material TopicsIn response to domestic and international policy mandates, ESG related standards, and pertinentindustrial concerns of capital market rating agencies and peer companies, we updated our topiclibrary based on the key issues highlighted by Sustainability Accounting Standards Board (SASB)Standards, our business attributes and operational dynamics.Following the material topics identication process guided by Global Reporting Initiative (GRI), weadopted a dual materiality approach, taking into consideration both the "signicance to Hikvision'ssustainable development" and the "influence on stakeholder decisions". We conducted interviewsand surveys with nearly 150 internal and external stakeholders. The comprehensive approach allowedus to gain a thorough understanding of their expectations, suggestions, and needs of developmentsconcerning Hikvision. Subsequently, we meticulously analyzed the material topics identified andwill offer key disclosure and response through this report to effectively address the needs andexpectations of our stakeholders.
Economic growthBusiness ethics
Risk managementBusiness continuity
High importance
High importance
High importance
Moderate importance
Moderate importance
Moderate importance
Low importance
Low importance
Low importance
Cope with climate change
Technology innovationCustomer service
Energy managementBiodiversity
Water resourcemanagement
Talent acquisition anddevelopment
Occupational healthand safety
Equality,Diversication andinclusivenessPublic welfare andvolunteeringEmployee care andbenetsResponsibleprocurementCo-development withpartnersRespect for human rightsand labor practice
Privacy and informationsecurity
Product safetyand quality
Protect intellectual
property
Supplier management
Clean technology applicationChemicals management
Waste and emissionmanagementEnvironment
Society
Governance
StakeholderTopic of concernWay of communicationResponseShareholders/ investors
Economic growthCompliance OperationsRisk managementSustainable developmentcapability
Regular report/interim announcementField researchTelephone communicationEmail correspondencePerformance brieng/roadshow
Maintaining steady economic growthAdhering to the business philosophy of legalcompliance and establishing risk management systemand compliance ecosystemOffering industry-leading products and solutions with astrong business ecosystemGovernment& regulators
Ful?lling tax obligationsAddressing social issuesProduct safety and qualityEnvironmental protectionMaintaining corporate valuegrowth momentum
Regular report/interim announcementLetterField researchGovernment communication meetings
Ful?lling tax obligationsLeveraging "Tech for Good" to provide solutions andsatisfy social needsFocusing on the clean technology application ofHikvision's products and promoting the low-carbontransition of the CompanyCustomers
Innovation and R&D
Product safety and quality
Privacy and information security
Hotline
Information feedbackSatisfaction survey
Adopting a mature quality management system toensure product safety and qualityEstablishing solid network security managementstructure to provide customers with stable, reliable,secure and trustworthy products and services
Employees
Rights protection
Talent attraction and retention
Professional developmentOccupational health and safety
Communication meetingsEmployee survey
Hotline and email
Establishing an equal and inclusive workingenvironment, and providing comprehensivedevelopment channels and opportunitiesAttracting diversi?ed talents
Providing employees with safe workplace and healthprotection
Continuously improving employee wellbeingcorporate culture
Suppliers and partners
Responsible procurementSupply chain management
Data security
Assessment and scoring
Field research
Suppliers' meeting
Supplier empowerment training
Pursuing the business philosophy of integrity andtrustworthiness
Integrating the sustainability philosophy throughoutthe entire supplier management process, and guidingsuppliers to strengthen ESG managementPromoting con?ict mineral management with highstandards and strict requirementsProactively building diverse communicationand learning channels, gathering upstream anddownstream partners, and empowering the supplychain
Communities
Community participationCharityEnvironmental protection
Community activity
Media coverage
Interview and research
Making technology warmer through its support forpublic welfare, encouraging employees to volunteerand engage in charity
Promoting the concept of green of?ce and reducingpotential negative impact of business operations onthe environmentPeers/NGOs /industryorganizations
Product and service quality
Driving industry development
Social responsibility
Participating in industry forums andconferencesEngaging in industry research andstandard formulation
Joining international organizations
Joining international organizations to jointly promotesustainable developmentSharing cutting-edge technologies, information, andplatforms, and collaborating with a wider range ofindustry partners for common progress
0809
ESG conferences held across the globe
In 2023, Hikvision hosted global ESG conferences in Sydney of Australia,Auckland of New Zealand, and Hangzhou of China. These conferencesprovided a platform for discussions on a wide array of ESG topics,including human rights, compliance, and climate change. We activelypromoted our ESG management philosophy of "Tech for Good" andunderscored the positive impact of ESG initiatives on the Company'ssustainable development. In the future, we will promote sustainabledevelopment with concrete actions, call for joint solutions to socialproblems, assume social responsibility, and strive to achieve the goal ofcreating lasting value and improving social well-being.
Case
International ESG conference
SubjectIssued byAwards and honorsDevelopment Quality
The Company
The Communist Party of China (CPC) CentralCommittee, the State Council
Awarded the title of "National Excellent Engineering Team"State Administration for Market RegulationEntered the list of winners of the "Fifth China Quality Award"People's Government of Zhejiang Province
Honored with "the 1st Place of the Zhejiang Science and
Technology Progress Award"Securities Times
Selected as "the 17th Outstanding Intelligent Enterprises of
Listed Companies" in ChinaE-worksSelected as the "Top 100 Benchmark Smart Factories in China"China Enterprise Evaluation Association, ChinaAcademy of Information and CommunicationsTechnology
Ranked the 27th of "Top 500 List of Digital Economy Enterprises
in China"China Enterprise Evaluation Association
Ranked the 13th of "Top 500 New Economy Enterprises for
2022 in China"China Association for Quality Inspection
Honored with the title of "Exemplary Enterprise with National
Product and Service Quality Integrity"China Information TechnologyIndustry Federation
Honored with the title of "Top 100 Electronic Information
Competitiveness Enterprises in 2023" in ChinaChina Software Industry Association
Honored with the "2023 Excellent Software Product Certicate"
in ChinaCorporate GovernanceThe Company
China Association for Public Companies
Selected as one of "the Best Case of Corporate Governance
in 2023"Trade Unions of Zhejiang Province
Honored with the "May Day Labor Award of Zhejiang
Province"Wind
Honored with the "2022 Listed Company Market Value
Ranking Prize –Top 50 of the Most Popular Listed Companies
selected by Institutional investors"Wind
Honored with the "2022 Listed Company Market Value
Ranking Prize –Top 5 of the technology hardware and
equipment industry"ChairmanSecurities Times
Honored with the "17th Annual Leading Figure of Chinese
Listed Companies" AwardBoard SecretarySecurities Times
Honored with the "Outstanding Board Secretary of Chinese
Listed Companies" AwardThe CompanyComein Finance
Honored with the "Best Institutional Investor Relations (IR)
Team of 2023" AwardResponsibility Practice
The Company
General Administration of Sport of China, ChinaDisabled Persons' Federation, Zhejiang ProvincialCommittee of CPC, and People's Government ofZhejiang Province
Honored with the "Advanced Collective of Hangzhou Asian
Games, Asian Paralympic Games"People's Daily Online
Honored with the "Rural Vitalization Award" at the 18th
People's Enterprise Social Responsibility CompetitionEconomic Observer
Selected as the "2023 ESG Pioneer 50" of Listed Companies
in ChinaChina Business Network
Honored with the "Exemplary CSR Award" in the 2023 China
Corporate Social Responsibility CompetitionJRJ.com
Selected as an outstanding case of ESG practice in the
"Golden Intelligence Competition"Brand ValueThe Company
People's Daily Online
Honored with the "People's Ingenuity Brand Award" at the
20th People's Enterprise Social Responsibility AwardsStock StarHonored with the "Best Brand Award for 2023"National Business Daily
Selected in the "Top 100 Brand Value List of Chinese Listed
Companies for 2023"China Association for Brand Building and Promotion Honored with the title of "Brand Value Leader"China Association for Quality Inspection
Honored with the "National Product and Service Quality
Integrity Brand"
Honors and Awards
1011
"The significance of technological progress lies in its ability to propelsocial development, and it is only enterprises imbued with a sense ofsocial responsibility can achieve sounder and more sustainable progress.Throughout the years, Hikvision has remained steadfastly in steering itsbusiness development guided by the pursuit of social value. By adhering tosustainable business practices, Hikvision ensures the continuity of its socialresponsibilities while fostering a virtuous cycle of growth. As a result, its brandinuence continues to expand, enabling a broader audience to recognize thevalue and signicance of technological progress."——Organizing Committee of China Corporate Social Responsibility Roll
by China Business News
1213
TECH FOR HOMELAND
Building a beautiful homeland is a common vision for humanity.At Hikvision, we contribute to the development of vibrant citiesand prospering rural areas, striving to build modern, livable,and intelligent habitats. We infuse technology with a sense ofwarmth and compassion to meet the people's growing needs fora better life, so as to truly benet the people with intelligence.
TECH FOR GOOD
At Hikvision, we recognize technology as the primary driver of productivity and "good perception,
forward thinking" as mission. We abide by laws, regulations, and social norms,start from the "goodwill", aiming to leverage technology well, and to "develop technology for good".
The "goodwill" not only shows our self-assurance built on independent innovation,
but also manifests as a voluntary choice amidst competition.As pioneers, leaders, and drivers in our eld, we leverage our position to offer users inclusive
technological products, services, and solutions that are open and shared.We view the "goodwill" as a crucial link between social and environmental sustainability and our ownbusiness development, integrating it into every facet of our operations to enhance social well-being
on a broader scale.
Tech for HomelandTech for EnvironmentTech for IndustryTech for Community
1415
Empowering Urban GovernanceWe empower intelligent and IT-based applications across diverse domains and scenarioswithin urban settings, extending the benets of technology to every corner of a city. Througha closed-loop business process encompassing "sensing, monitoring, warning, handling,and supervision," we foster innovative approaches and modes to urban management,while optimizing the management of smart cities to make it more visualized, standardized,
intelligent, and precise.
Building Digital VillageWe leverage IoT sensing, big data, and articial intelligence to offer comprehensive solutionstailored for digital villages, focusing on ve aspects such as industrial development,ecological preservation, governance enhancement, service improvement, and culturalenrichment. These solutions are designed to address the production and living requirementsof rural areas, encompassing infrastructure upgrades, industrial rejuvenation, innovativebusiness models, rural governance improvements, information accessibility, and betterecological and livable environment. Our efforts will help bridge the urban-rural digitaldivide and foster equilibrium between urban and rural resources, thereby fostering strong
agriculture, a beautiful countryside and well-off farmers.Digital empowerment accelerates the development of livableLanzhou with smart technologiesLanzhou, with its ancient charm and rich urban heritage, owes its splendor to thededicated stewardship of city administrators. In 2023, Hikvision partnered withthe Lanzhou City Management Committee to establish the "Service Platform forUrban Operation and Management - Smart Sanitation System." Leveraging AIoTproducts and technologies, we advanced intelligent sanitation management inLanzhou, bolstering the efciency and quality of road cleaning, waste sorting,public toilet management, and other related tasks. This collaborative effortsignificantly contributed to the development of a more aesthetically pleasingand livable Lanzhou. The project was awarded as an "Excellent Case for theDigital Transformation of Sanitation in China in 2023" by the Division of SmartEnvironmental Sanitation of the China Association of Urban EnvironmentalSanitation.
Intelligent and digital technologies enable a good harvest ofapplesIn Fangshan Village, Sichuan Province, agricultural challenges such asabandoned land for many years, unpredictable weather, and severe pestinfestations have hindered apple cultivation. In March 2023, Hikvision installedagricultural IoT video perception devices, IoT insecticidal lamps, and anagricultural management platform at the Sichuan Youth Science and TechnologyFarm to gather real-time environmental data, monitor plant diseases and insectpests, and facilitate precise fertilization and pesticide application. The "smartfarming" practices has enabled more scientific and efficient apple cultivation,providing robust support for the farm to ensure bountiful harvests and enablingvillagers to increase their income.
Hikvision harnesses AIoT technology to ensure fire safety with the Smart FireManagement Platform in the Dukezong Ancient Town, renowned for its woodenarchitecture. Additionally, in Changsha City's Langli Hydrological Station,Hikvision establishes a digital twin platform to survive the flood season safelyevery year, and lead the high-quality development of smart cities across variousregions through digital innovations.
Hikvision's AIoT equipment has played a pivotal role in preserving a favorable environment andenhancing safety measures in villages across Zhoukou. Notably, at Xiaoduzhuang Village, Tianjin,we have implemented a remote communication system to assist elderly individuals living aloneat home, ensuring their peace of mind. Our AIoT equipment also fosters intelligent primary-levelgovernance in more regions, helps build a beautiful and ecological environment, and bolsters thedevelopment of local agriculture and the overall well-being of villagers.
Case
Case
"The expertise of the experts is like atimely rain that nourishes the ower budsduring apple blossom, and so is Hikvision'sequipment. "——Cai Qingsong, Head of theYouth Science and Technology Farm
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The smile on villager’s facesWaste Sorting Supervision Platform
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1617
Protecting Historical RelicsWe actively participated in the eld of cultural heritage preservation,with a dedicated focus on addressing the needs of different scenarios.Through the development of a comprehensive, multi-level, and multi-
dimensional security system tailored to various scenarios, we have
successfully integrated technology with culture.Leveraging AIoT technology, we have fortied the protection of world
heritage sites, thereby fostering inheritance of culture.
"Smart Guardians" safeguard the splendor of DunhuangDunhuang, as a symbol of Chinese civilization, possesses precious grottoheritage. Due to its remote location, fragile surrounding environment, andhuman interference, the Dunhuang Grottoes are faced with complex safetychallenges. In partnership with the Dunhuang Academy, Hikvision created andapplied a grotto security protection system in 2023. This system incorporatesrisk management across all facets, safeguarding the caves, ancient structures,visitors, and staff, thus preserving the cultural splendor of the desert.
Hikvision's AIoT equipments are employed in various cultural heritage sites. For example,at the Leshan Giant Buddha, they enable 24-hour monitoring of water levels. At MountTai, thermal imaging and intelligent recognition technologies are utilized for automaticallyinspecting the scenic area and checking fire risks. At the Sanxingdui archaeological site,products such as laser radar are employed for monitoring various forms of intrusion anddamage. These are just a few examples of how Hikvision utilizes technology to safeguard theinheritance of human civilization.
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TECH FOR ENVIRONMENT
Humanity and nature are a shared community of life. Enterprises play acrucial role in fostering the harmonious coexistence of humans and natureand thus bear the responsibility of Nature Positive. Hikvision harnessestechnology as a potent tool to address environmental challenges andpioneers a new intelligent ecological protection model through "VisualIntegration, Monitoring and Management Linkage." With industry-leadingconcepts and technologies, Hikvision accelerates the transition fromhuman-centered to data-centered ecological environment governance,thereby facilitating high-level ecological environment protection andenhancing modern ecological governance capabilities. Our aim is tocultivate a friendly relationship between technology and nature, wherethey mutually reinforce and advance in the pursuit of nature conservation. AIoT equipment guards Dunhuang day and night
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1819
Biodiversity ProtectionGuided by the principle of "Tech for a Better World", we are dedicatedto actively produce the right products, platforms, algorithms, andmore. Through ongoing intelligent monitoring and regulation, we haveimplemented mechanisms for collaborative prevention, control, andgovernance. By integrating protection and comprehensive governance, we
enable ourselves to safeguard biodiversity.
Environment Protection
We are committed to implementing comprehensive and systematic measures to tackleecological and environmental damage at its source. Our efforts are center around regulatingthe entire process of air, water, soil, and solid waste management. By doing so, we activelycontribute to a beautiful China characterized by clear sky, lush greenery, and clean water,
and help to promote the sustainable development of people and nature.
The "circle of life" in Sumatra protected by the strength of technology
Sumatra, Indonesia, is one of the most biodiverse regions on Earth. Yet, persistenthuman activities pose substantial threats to various species, endangering their survival.In collaboration with PT Alam Bukit Tigapuluh, a sustainable forest developmentorganization, and the Indonesian branch of the World Wide Fund for Nature (WWF),Hikvision installed video perception devices in Sumatra. These devices are tasked withcontinuous monitoring of endangered species, such as the Sumatran elephant, supportingbiodiversity conservation initiatives.
Intelligent supervision of integrated management platformprotects Anji's water sourceAnji County in Zhejiang Province relies heavily on its water resources, andshoulders the responsibility of safeguarding this invaluable asset. To this end,Hikvision leverages a suite of advanced technologies including high-spectralwater quality monitors, radar flowmeters, AR eagle-eye systems, electronicfences, underwater cameras, and other devices to establish a digital supervisionplatform for water sources. This platform facilitates intelligent managementof water pollution across 12 administrative villages within the water sourcearea, ensuring continuous monitoring, early warning systems, source control,and biodiversity protection measures. Through the implementation of the"One Network" collaborative protection and management system, the projecteffectively prevents contamination of drinking water and safeguards the clarityand purity of the water source.
Hikvision utilizes technology to monitor the habitat and behaviors of plants and animalsin natural reserves together with many partners. We monitor six nature reserves in SouthAfrica and Kenya, and protect wildlife such as black rhinoceros, white rhinoceros, andlions. In Sichuan, we find wild giant pandas. In Longqishan National Nature Reserve inFujian, we observe and protect black bears, yellow-bellied horned pheasants, and whitepheasants. These concerted efforts have laid the groundwork for biodiversity researchand conservation, offering hope for the preservation of the world's rich tapestry of life.
Hikvision has deployed intelligent detecting devices in the Huangqi Sea Nature Reserve to monitor variousenvironmental factors such as water quality, wind speed, and rainfall in real time. These devices provide newinsights for environmental assessment and governance based on those scientific data. Additionally, Hikvisionhas expanded the use of intelligent technologies to air pollution prevention and control efforts in Shaanxi. Thetridimensional monitoring network unlocks more potentials of pollution control through the innovative applicationof technology and safeguards a better Earth.
CaseCase
"Observing wildlife in low-light conditionswithin tropical rainforests is extremelychallenging. However, Hikvision's innovativetechnology has brought positive changes toour work, enabling us to capture clear andvibrant images and enhancing our efciency."——Muhammad Rizki Qosyim, representative
of PT Alam Bukit Tigapuluh
Sumatran elephant
The application scenario of the "One Network" for the collaborative protection of drinking watersources in Anji County
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2021
Natural Disaster Prevention
We focus on natural disasters such as oods, landslides, collapses,mudslides, and forest res, leveraging intelligent monitoring and earlywarning technologies to mitigate risks effectively. By making disasters
"visible," we enhance disaster prevention and response capabilities,
thereby minimizing environmental damage, human casualties, and
property losses caused by natural disasters."Forest Lookout" patrols 43,000 football eld-sized areas in 15minutes, creating a solid "re prevention net"With a forest coverage rate of 35.3% and comprehensive vegetation coverage of grasslandsreaching 73% in Hebei Province, forest rangers and grassland patrol officers sufferedinefficiency due to the influence of factors such as terrain, topography, and climate. Incollaboration with its partners, Hikvision has developed a forest and grassland re monitoringsystem to address these challenges. This system establishes a high-frequency, real-time,and wide-ranging three-dimensional monitoring network for fire prevention. Within just 15minutes, it can monitor forest areas ranging from 28 to 314 square kilometers, equivalentto patrolling over 43,000 football fields at the fastest speed. This significantly enhancesthe efficiency of intelligent patrols. Additionally, the system features fire point detection,automatic alarms, re prevention operations, and re statistics, providing technical supportfor effective re prevention efforts and establishing a sustainable protection mechanism forforest and grassland resources, thereby safeguarding the magnicent landscapes of forestsand grasslands.
Hikvision has developed robust intelligent warning systems and deployed them in variouslocations, such as Hunan and Sichuan, for monitoring and early warning of mountain torrentdisasters. These systems have been applied to the prevention and control work of disasterssuch as mountain torrents, oods, and drought across multiple regions. Leveraging advancedtechnologies, Hikvision plays a crucial role in disaster prevention and mitigation.
Case
Fire Alert System of Hebei Province
TECH FOR INDUSTRY
Technological innovation, as a new engine of industrialdevelopment. We use IoT sensing, Artificial Intelligence,and Big Data technologies to comprehensively promote thetransformation and upgrading of social production, life, andgovernance. Driving industrial innovation via technologicaladvancements, we spearhead the digital transformation andupgrading of different sectors, whilst ensuring enterprise-wide security and fostering new growth drivers. By doing so,we help speed up country’s high-quality economic and socialdevelopment.Scan the QR codeto learn more
2223
Empowering Digital Operation
It is not only a requirement of the times, but also a huge industrialopportunity, that we could help domestic and global enterprises improvequality, reduce costs, increase efficiency, and then achieve sustainableand high-quality development. We come up with AIoT solutions with greatefforts, which supports companies in improving management qualityand efficiency, boosting core competitiveness, and unleashing greaterproductivity in digital intelligence.
Empowering tea culture products with technologyOn September 17, 2023, Jingmai Mountain became the rst World CulturalLandscape Heritage site with tea as its theme. Tea Horse Ancient Cellar,the world's rst intelligent tea cellar with a capacity of ten-thousands oftons, carries the mission of the great revival of tea culture.In 2023, HikRobot collaborated with Tea Horse Ancient Cellar to developa smart cellar solution incorporating intelligent storage managementsystems and a variety of robots. This comprehensive solutionrevolutionized the logistics process of Pu'er tea, encompassing receiving,storing, distributing, returning, and replenishing operations within Pu'ertea cellars. By enabling automated operations, this solution greatlyenhanced the exibility of tea storage and minimized the impact of humanfactors on the avor of Pu'er tea.Tea Horse Ancient Cellar and HikRobot empowers world heritageresources with technology to ensure that every piece of Pu'er tea enjoys asafer, smarter, and more convenient storage space, rejuvenating the Pu'ertea industry ecosystem.
AIoT empowers digital transformation of Huaxin CementHuaxin Cement is the "cradle" and "century-old store" of China's cement industry, serving as a beaconfor the digital transformation of the Chinese building materials sector. This remarkable achievement isintricately linked to its collaboration with Hikvision.In 2023, Hikvision successfully implemented high-precision volume measurement radar at HuaxinCement. This radar system is designed to scan and measure the quantity of clinker and aggregatesin real-time within the warehouses. As a result, it has notably enhanced measurement efficiency andaccuracy of the staff, thereby supporting the lean production at Huaxin Cement. The measurement dataseamlessly integrates into Huaxin Cement’s digital control center, providing data support for processoptimizations and strategic decision-making. This enables Huaxin Cement to respond to market changeswith greater agility and exibility.
Hikvision has been engaging in exploring automation, digital facilities and systems applicable tofactory production. At INTCO Medical's glove manufacturing base, our automated and digital visualinspection systems proved to be highly effective in identifying defects during the production process.Likewise, at Shouguang Power Plant, we have employed a diverse array of technological solutionsto achieve digital upgrades, thereby enhancing production efficiency and ensuring work safety.Additionally, in collaboration with Qianjiang Refrigeration Group, Hikvision developed an equipmentmanagement system, resulting in improved overall equipment efficiency (OEE) and optimizedoverall production capacity. Leveraging our technologies, Hikvision empowers companies to reachnew heights in product quality, output, and production efficiency, thereby facilitating their digitaltransformation.
Case
Case
"With the assistance of the HikRobot team, we have achievedremarkable success in projects involving intelligent transformationand upgrading. The entire process of tea going in and out of theCellar is now seamlessly operated by robots, effectively minimizingthe impact of human factors on the aging of Pu'er tea. As a result,the utilization rate of our facility has surged by 30%, leading toreduced cargo stacking and the creation of a more orderly workingenvironment. With the support of Jingmai Mountain World Heritageand the cutting-edge intelligent warehousing equipment providedby HikRobot, I am confident that Tea Horse Ancient Cellar willredene Pu'er tea storage."——Chen Min, Tea Horse Ancient Cellar Representative
"Under the framework of strategiccooperation, I believe there is ampleroom for further collaboration betweenus. Hikvision is committed to continuingits support to, help Huaxin enhance ourintelligent capabilities, and charting a newcourse for the building materials industrythrough intelligent construction and digitaltransformation. "——Tang Jun, CIO and CDO of Huaxin
CementDigital Control Center of Huaxin Cement
Digital Control Center of Huaxin Cement
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2425
Assisting Safety Management
We provide integrated solutions for various scenarios including worksafety and campus management, assisting enterprises in establishingrobust work safety management systems, and improving their safetymanagement, prevention, and control capabilities across all facets ofoperations.
Contributing to Quality and Efciency
ImprovementWe utilize a variety of digital technologies bolster support emerging small and microenterprises in quality control, facilitating standardized and regulated operationalmanagement. By ensuring product quality while reducing operational costs, we bolster
product competitiveness.
"New assistant" empowers safe operation and maintenanceof over 180 hectares photovoltaic power stationPhotovoltaic power generation is an important approach for harnessing renewable energyand mitigating carbon emissions. It plays a pivotal role in sustainable development andcombating climate change. However, the operation and maintenance of large-scalephotovoltaic power stations often pose challenges. The Qutang Photovoltaic Power Stationcovers an area of 184.4 hectares, with approximately 400,000 photovoltaic modules. Itgenerates 200 GWh of green electricity annually, saving 62,200 tons of standard coaland thus reducing approximately 150,000 tons of carbon dioxide emissions. In the past, itusually took staff two full days to complete a round of inspections at the power station.In 2023, Hikvision collaborated with the Qutang Photovoltaic Power Station and developedan integrated management platform for the operation and inspection of photovoltaic powersystems. Leveraging AIoT devices equipped at high locations of power station, photovoltaicmodules and in the hands of maintenance personnel, we empowered efcient inspectionand reporting process with technology. The remote inspections and safety checks ofphotovoltaic equipment were efciently conducted, signicantly reducing the risk of res.What previously required two full days to complete can now be accomplished in just fourhours. Utilizing "multi-dimensional perception + intelligent analysis" technology, Hikvisionprotects the safe and reliable operation of the photovoltaic power station.
"Tech inspector" makes quality inspection effortlessXiduoduo Group specializes in canned food processing and boasts a soundquality system and intelligent production lines. Nonetheless, with a staggeringdaily output of up to 600,000 cans, traditional inspection methods facechallenges in accurately and efciently detecting foreign objects within the cans.In 2023, Hikimaging collaborated with Xiduoduo Group to deploy an X-rayintelligent foreign object defect detection system equipped with special foodintelligent technology within their canned food production facility. This “techinspector” possesses X-ray vision capabilities, enabling it to easily identify andautomatically remove foreign objects present in raw materials and defectivepackaged cans. With the ability to inspect 650 cans in just one minute, thistechnology serves as a formidable defense line for food safety.
Hikvision is promoting the application of AIoT methodologies across various industries,spanning work safety, re safety, and logistical security. For instance, we have collaboratedwith China National Building Materials Group to establish visual control platforms for285 factories. Additionally, we have implemented a "one center, three platforms" safetymanagement system for Sichuan Gulin Langjiu Distillery, and developed a comprehensivesmart campus solution for Zijin Mining. Furthermore, we have facilitated intelligent riskcontrol for the safety of Shaanxi Yanchang Petroleum Group. Through digital means,Hikvision enables safety management of large-scale plant areas to be visible, knowableand controllable, so as to ensure the safe and stable development of the enterprise.
Hikvision leverages AIoT solutions to support various industries in achievingstandardized management and streamlined operations. Within the cateringindustry, while eradicating hygiene hazards and safeguarding food safety, wealso ensure standardized store operations and maintain consistent productflavors. Moreover, in the retail sector, we facilitate inventory management toenhance operational efciency. Across diverse industries, we use technology tohelp enterprises improve quality and efciency.
Case
Case
"With this 'assistant', we feel muchmore reassured. It helps us with redetection, inspection positioning,and automatic patrols, making ourmaintenance work more timely andefcient."
——Maintenance Personnel ofQutang Photovoltaic Power Station
AIoT devices safeguard the photovoltaic power station
X-ray Intelligent Foreign Object Defect Detection System
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Showing Concern for Vulnerable GroupsWe offer special care for special groups such as the elderly, children, and patients, allowingthem to share the benets of differentiated and humanized cutting-edge technologies. Wecontribute to a friendly and inclusive digital society that caters to individuals of all ages,focusing on meeting the life, health, and daily needs of the vulnerable, thereby bridging the
digital divide.
Digital empowerment enables an all-in-one smart elderlycare community serviceJingxin Jiayuan Nursing Community in Fuqing integrates five key concepts ofelderly care including ecological, home-based, healthy, cultural, and smart care.It caters to retired and the middle-class individuals in the surrounding countiesand cities of Fuzhou. Hikvision collaborated with Jingxin Jiayuan NursingCommunity to implement technological measures such as health monitoringand bed alarming using intelligent devices. This, combined with the third-partyelderly care operation platform, online and ofine, enables real-time monitoringof the health and safety of elderly residents in the community, creating a warmand technologically advanced elderly care community. With these technologicalendeavors, we empower elderly individuals to enjoy a healthy and fullling life intheir later years.
More Reassuring Elderly CareWe focus on smart elderly care applications across various scenarios, such as safety protection,caregiving services, health services, and emotional care. Our solutions are tailored to accommodatehome-based care, community-based care, and institutional care. Through intelligent elderly careservices, we embrace the challenges of population ageing and empower elderly individuals to fullyenjoy the convenience afforded by technological progress.
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TECH FOR COMMUNITY
Enterprises are an integral part of the society, and it is ourduty to give back. Hikvision regards technology as the sourceand primary force for social development, providing care andsupport to vulnerable groups. Furthermore, we actively engage ininternational events and strive to enhance living conditions andenvironments on all fronts, creating a better future.
News report of the Jingxin Jiayuan
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Intelligent algorithm enables zero foreign objects in Surgery
The problem of retained foreign objects such as surgical gauze have causedconcerns among medical professionals and patients. The traditional method toprevent gauze retention involves manually counting surgical items. However, dueto complex environment in operating room and the difculty in identifying gauze,manual counting often encounters numerous challenges.Hikimaging collaborated with experts from a leading hospital in Beijing todevelop AI-based automatic identication of residual gauze using deep learningtechniques. This advanced AI assistant enables medical personnel to accuratelyidentify the quantity of gauze used during surgery, thereby reducing the risk ofgauze retention."Synchronous Classroom" opens a window for students inthe Qinling mountainsIn mountainous regions situated 120 kilometers away from Xi'an city, liesSanchahe Town School, a nine-year educational institution. The school has atotal of over 200 students, and most of them are left-behind children.In March 2023, Hikvision and its partners launched the “Synchronous Classroom”initiative at Sanchahe Town School as part of the Chunya Aid Program. Thisgroundbreaking endeavor bridged teachers from Xi'an city and students in themountainous region through online platforms, bringing their first interactiveclass across geographical boundaries. Together, they embarked on a handicraftlesson, crafting vibrant lavender bouquets to welcome the spring season. Sincethen, the school has further collaborated with relevant organizations to developa comprehensive curriculum plan. These initiatives granted students access tourban educational resources and a diverse range of courses through the powerof technology.
More Reliable Medical CareWe leverage technology to address healthcare needs, collaborating with medical institutions todevelop innovative products and organizing training sessions, forums and other activities. Ourinitiatives are designed to enhance the expertise of medical professionals, improve the usability andsafety of medical equipment, and signicantly improve treatment efcacy.
More Equitable Education
We have donated online teaching equipment to primary and secondary schools in remote regions,aiding in online classes and infusing vitality into educational practices. By transcending the limitationsof time and space, we advocate for the collaborative creation and sharing of high-quality educationalresources, fostering equality and balanced development in education. Through technology, we helpchildren y high towards their aspirations.
Case
Case
The rst Iinteractive handcraft courses
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Safeguarding the 19th Asian Games
Hikvision is the ofcial sponsor of AIoT and big data services for the 19th Asian Games and the 4th Asian Para
Games. Upholding the "intelligence" concept of the Hangzhou Asian Games, Hikvision developed innovativeintegrated command platforms, intelligent security screening systems, digital supervision platforms for eventvenues, and trafc command and dispatch platforms. These cutting-edge applications leverage IoT perception,articial intelligence, and big data technologies to ensure "panoramic visibility, risk anticipation, efcientcommand, and agile response" throughout the entire event. Hikvision's contributions signicantly enhance theexperience of the "Smart Asian Games" and contribute to the magnicent and diverse sports event.Intelligence Makes Event Management More EfcientHikvision undertook the construction of the Hangzhou Asian Games Command Center (MOC),functioning as the operation command system's "intelligent brain". Equipped with intelligent earlywarning, multidimensional dispatching, efcient command capabilities and other functions, the MOCfacilitates round-the-clock monitoring of the six host cities of the Asian Games, ensuring a successfulevent.
Intelligence Makes Venues SmarterThrough the implementation of the Smart Venue Digital Supervision Platformacross three venues for the Asian Games, real-time tracking of venue operationsbecomes possible. This platform addresses management complexities arisingfrom large areas, diverse functionalities, and intricate equipment, therebysignicantly boosting venue management efciency.
Intelligence Makes TransportationMore EfcientWe have developed the Hangzhou Asian GamesTraffic Command and Dispatch Platform (LargeScreen) and integrate it with the Vehicle DispatchCenter (Medium Screen) and driver mobile devices(Small Screen). The "large, medium, and small"screens share information, eliminating informationgaps between command personnel, vehiclepersonnel, and drivers. This coordinated approachenables the efcient dispatch of over 3,000 AsianGames service support vehicles, catering to thetransportation needs of over 30,000 individualsand facilitating more than 35,000 trips. Anyissues that service vehicles encounter can besolved within 3-5 minutes, exemplifying a modelof intelligent transportation management forthe Asian Games that is "capable of handlingthousands of people, coordinating thousands ofvehicles, and dispatching within seconds ".
Intelligence Makes Event SaferHikimaging's intelligent security screening system, featuring advanced security scanners, smartsecurity doors, liquid safety detectors, and re-inspection unpacking tables, facilitates the passage ofover 100,000 individuals, boosting trafc efciency. This system effectively tackled the challenges of aninux of visitors in over 30 venues, including the Asian Games Village and the Main Media Center (MMC).
MOC Integrated Command Platform
Intelligent security screening equipment of Hikimaging
Eight employees from Hikvision participated in the torch relay of theHangzhou Asian Games, taking place over a period of 13 days
Smart Venue Digital Supervision Platform
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Governance Responsibility
Hikvision acknowledges the critical role of robust corporate governance in drivingsustainable value. The Company continues to optimize the governance structure. We haveestablished a sound system for compliance management and risk control. We upholdstringent governance standards to guide the corporate and employee behavior whilefostering an awareness of compliance management. Additionally, we proactively helpbuild and maintain a fair and transparent market environment. Through evidence-baseddecision-making, standardized management practices, ethical operations, and long-termdevelopment, we strive to generate sustainable value for all stakeholders.
2023 Key performanceCorporate Governance：
1 General Meeting of Shareholders was held to review 14 proposals;the Board of Directors convened 4 meetings to review 29 proposals;the Board of Supervisors convened 3 meetings to review 14 proposals;the Special Committees of the Board of Directors convened 13meetings to review 29 proposals2023 Best Practice Cases of Corporate Governance by the ChinaAssociation of Public CompaniesCompliance Ecosystem:
52 ofine compliance training sessions were delivered, with a total of98 training hoursOnline compliance training attendance reached 50,000+ timesBusiness Ethics:
99.82% of our staff had signed the Employee Integrity Commitment
Safeguarding Human Rights:
We have released the Hikvision Global Human Rights Policy,reafrming our steadfast commitment to upholding and safeguardinghuman rights. This initiative underscores our unwavering dedicationto ingraining the principles of human rights deeply in our corporateculture
Contributing to UN SDGs
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Strengthening Corporate Governance
Hikvision is committed to establishing a robust governance system, and constructing a governanceframework with clearly dened roles and responsibilities. We prioritize the independence and diversityof our board of directors, empowering them to effectively oversee and make strategic decisions. Weaim to ensure the stable operation of the Company while enhancing our corporate governance.
●Governance StructureThe Company strictly follows the applicable laws and regulations such as the Company Law, the Securities Law,as well as the rules and normative documents of the regulatory authorities. In light of the circumstances, wehave established a robust "three boards and one team" corporate governance structure comprising the GeneralMeeting of Shareholders, the Board of Directors, the Board of Supervisors, and Management Team. This structureis comprehensive, independent, and standardized, with clearly defined rights and responsibilities, efficientcoordination, effective checks and balances, and standardized operation.The General Meeting of Shareholders comprises both the Board of Directors and the Board of Supervisors. It isthe duty of the Board of Directors to lead the decision-making surrounding operation and management, reviewand approve strategic goals. Under the Board of Directors, we have established specialized committees includingthe Strategy Committee, Audit Committee, Nomination Committee, and Remuneration and Appraisal Committeeto review specific operational matters. The Board of Supervisors plays a supervisory role in the Company'sstandardized governance.
The main responsibilities of the Special Committees of the Board of Directors
Corporate governance structure
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Board of DirectorsComposition of the board of directorsPursuant to the Articles of Association, the fifth Board of Directorsconsists of nine directors, four of whom are independent directors, andthe term is three years. All directors are obligated to prioritize the interestsof the Company and shareholders, carrying out their duties with honesty,loyalty, diligence, professionalism, and due diligence, thereby preservingthe legitimate rights and interests of the Company and all shareholders.Independence and diversityThe Company firmly believes that the independence and diversity ofthe Board of Directors is essential to protect the rights and interestsof shareholders and maintain the stable development of the Company.Directors are selected based on diversified criteria, encompassinggender, age, knowledge, professional skill, experience, and cultural andeducational background, among others. This approach ensures that theboard members can effectively address the needs of different businesseswithin a diversified and effective governance structure. The currentBoard of Directors is characterized by diversity, with members possessingprofessional backgrounds and expertise in engineering, management,economics, accounting, law, and other relevant elds.
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Strengthening Risk ManagementHikvision continues to improve internal risk control system. Leveraging the triple-layer mechanismfor risk management, the Company systematically identies, analyzes, and monitors risks across itsoperation and value chain. This approach aims to bolster risk management and control capabilities,
effectively ensuring the successful implementation of risk management work.
●Risk Management MechanismIn addition to issuing the Internal Control Manual, Crisis ManagementManual, Management Measures for Compliance Risk Events, InternalAudit Regulations, and other applicable rules, the Company hasdesignated specific departments for risk management and internalcontrol management. Furthermore, we have implemented a triple-layermechanism that covers management before, during, and after an incident,encompassing operational management, risk management, auditing,and supervision. Based on specific circumstances, we have refined ourdepartments, regulations, processes, and operational protocols andenhanced systematic management to ensure the effective implementationof risk management.
The Company has formed a sound response mechanism in various aspects such as identication andjudgment of early warning information and handling of crisis events. We have adopted a hierarchicaland categorized approach for risk response strategies. Additionally, we have translated the norms forrisk management into specic indicators tailored to each business unit, as well as standardized andautomated daily risk management through the digital system. For example, we have devised tax riskindicators for each business segment, implemented comprehensive online management and approvalprocesses for critical internal and external tax inspection matters, and continuously enhancedour monitoring of tax risks. These efforts have led to the reduction of tax-related risks, decreasedmanagement costs, enhanced management and control capabilities, and improved communicationefciency.
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Risk Identication and ResponseIn strict compliance with national laws and regulations, policy documents, applicable local regulationsand corporate management measures, the Company regularly conducts comprehensive and thoroughassessments to identify risks that could significantly influence its operations and value chain. Inaddition, the Company devises robust prevention and response strategies to effectively mitigatethese risks.Risk categoryRisk descriptionResponse strategiesStrategic risks
Uncertainties that result in overall losses affectingthe realization of corporate development objectives,resources, external environment, competitiveness,and market performance
●Formulating the strategic plan of the Company, improving the strategic risk management ability, seeking andevaluating high-quality investment opportunities based on the Company's strategic direction and market demands
●Dynamically monitoring changes in the external macro environment and policy trends facing the Company,examining the opportunities and risks brought about by these changes in a prudent manner, actively and promptlyresponding to them
●Focusing on iteration and innovation of technology and products to develop leading core proprietarytechnologies, and continuously enhancing product competitivenessMarket risks
Risk ofchangesin marketdemand
With the rapid changes in market demand andbusiness models, application scenarios tendto be more fragmented and customized. As aresult, products and solutions that lack marketcompetitiveness will face greater market risks
●Actively tracking the latest technological developments at home and abroad, and innovating and developingproducts and services that meet the needs of users through continuous investigation and research of the marketand customers
●Conducting meticulous market research, understanding the market development trends and directions,andaccordingly developing new products
●Strengthening the exchange of market information, timely reporting existing problems in the market, andactively formulating countermeasures to avoid business riskRisks ofsupplychaincontinuity
Risk ofsupply chaindisruption
The risk that all or part of the business is disrupteddue to natural disasters, man-made accidents,system failures, supply chain disruptions and otherevents
●Setting up a supply chain continuity working group headed by the Company's executive vice president to leadthe decision-making and work execution regarding strategic material reserves
●Conducting digital transformation of the supply chain based on the information platform, improving the end-to-end delivery exibility of the supply chain, and forming a rapid response system for multi-variety and small-batchproducts
●Building multiple bases and logistics centers to ensure delivery and improve the resilience of the supply chainESG risk forsupply chain
ESG issues such as environment, business ethics,labor rights, health and safety in the supply chainaffect the stability of the production cycle, productcompliance and safety, resulting in negative publicopinion, unpredictable economic losses and impacton brand
●Demanding suppliers to comply with Hikvision's Supplier Code of Ethics and Business Conduct and theSupplier Integrity Agreement
●Optimizing the supply management, and promoting visualized stock management among rst-tier suppliers,and the control of key raw materials for some second-tier suppliersLegal andcompliancerisks
ComplianceriskThe risk of legal liability, regulatory penalties,financial losses or reputational damage caused bynon-compliant business operations or practices bythe Company or its staff and salespersons
●Issuing the Hikvision Management Measures for Compliance Risk Events, establishing a sound organizationalstructure and sound rules, processes and operational requirements for compliance risk event management,improving the ability to prevent, respond to and deal with compliance risk events, and timely and properlyresolving such risks
Risk of
integrityand ethicalcompliance
The risk of employees or their associates using theirinuence or positions to accept bribes, or embezzlecompany assets for personal gain through deception,concealment, collusion, and other means, resultingin damage to the Company's interests; or the risk ofdamaging the Company's image and reputation bybribing third parties
●Establishing an Integrity and Ethics Compliance Committee as a top-level organization to ensure that theprinciples of business ethics are adhered to various business activities of the Company
●Formulating the Hikvision Code of Ethics and Business Conduct, the Code of Business Conduct forEmployees, Hikvision Global Anti-Bribery and Anti-Corruption Manual and other relevant administrative policies ofbusiness ethics to regulate employee behavior, eradicating bribery and corruptionFinancial risks
Tax risk
The risk of legal sanctions, financial loss orreputational damage due to failure to properly andeffectively comply with tax laws and regulations intax-related activities
●Formulating and improving the Hikvision Tax Risk Management Policy
●Establishing a comprehensive tax risk management mechanism covering tax risk identication, assessment,response and control, information reporting, supervision and improvement
Risk ofrelated partytransactions
The risk arising from inaccurate identication ofrelated parties, unreasonable pricing of relatedparty transactions, and disruptions in related partytransactions during the process
●Following the review procedures for related party transactions and strictly implementing the rules of abstentionvoting for related transactions
●Focusing on fairness and necessity in related party transactions. Ensuring timely, thorough, complete, andaccurate disclosure of related party transactions
Operationalrisks
Quality risk
Quality risks caused by insufficient productiontechnology, poor product design, and lax control ofthe production process
●Establishing systematic quality risk management procedures and manuals, covering the complete project lifecycle
●Relying on three digital risk management platforms of risk management, production problem reporting, andactive notication of delivery problems to form a closed-loop risk management systemData securityriskRisks including but not limited to data leakage,data tampering, data abuse, illegal transmission,illegal access, and abnormal traffic caused bydata acquisition through means such as testing,assessment, information collection, authorizationmonitoring
●Using a unied, integrated security infrastructure across the entire video IoT application ecosystem
●Establishing a professional security team to provide support for all products, including but not limited toproviding security audits and testing for in-development and released products, providing security training, andactively monitoring emergent security issues and threatsProductionriskThe risk of accidents such as re and explosion dueto the use and storage of hazardous chemicals forproduction process
●Issuing the Safety Inspection and Hazard Management Standards, and carrying out investigations into variouspotential hazards and making targeted rectications
●Putting in place re prevention and re-ghting equipment, establishing an internal learning website dedicatedto workplace safety, and strengthening personnel training to raise the staff's awareness of safetyOccupational
health risk
The risk of chemicals, auxiliary materials, energyand noise required for business operations may beharmful to the health of frontline workers
●Administratively, clarifying the multi-level responsibilities between the functional departments and theconstruction site management, and dening the job responsibilities for occupational disease prevention position
●Strengthening the education to construction workers on hazards from occupational disease, organizingregular training, improving their understanding of occupational disease hazards, and teaching them the methodsto prevent occupational diseasesEnvironmentalpollution risk
The risk of polluting the surrounding environmentand affecting the lives of nearby residents due tothe use of chemical and auxiliary materials neededfor business operation, and the noise, and industrialwastewater and waste gas generated in the process
●Following regulations to properly store the raw materials necessary for business operation, and properlydisposing of the production noise and the wastewater and waste gas generated in the production process
Triple-layer risk management
Parts of Hikvision's risk identication and response strategies
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Building Compliance Ecosystem
Hikvision consistently adhered to the business philosophy of honesty, trustworthiness, legalityand compliance, continuously enhancing its compliance framework. Through system renement,management improvement, and standardized operation, we guide and standardize the business
behavior of all employees to ensure the long-term and steady development of the Company.
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Improving Compliance System
The Company has established a robust compliance framework, led by the Board of Directors and composed of theChief Compliance Ofcer, the Legal and Compliance Department, and the Compliance Working Group. Each entityhas clearly dened roles and responsibilities, ensuring standardized operations. The Advisory Committee providesindependent and global perspectives to the management team, comprising experts in corporate governance,cybersecurity, data protection, and human rights protection. The Technical Ethics Committee implements theCompany's "Tech for Good" initiative, evaluates ethical risks associated with technology research and application,and advices business decision-making. Emphasizing respect for global diversity, the Committee balancesstakeholder demands across different regions.The Company also appoints compliance liaison ofcers in all functional departments, business units and branchesat home and abroad to scale the compliance organization and its capabilities to all internal units. This initiativeaims to enhance the Company's ability to ensure the effective implementation of compliance policies andmeasures.
The Company continues to enrich the hierarchical and classied compliance policy and rule system, establishesand improves the top-level framework based on the Hikvision Code of Ethics and Business Conduct, and coversspecial systems, country guidelines and scenario-based operation manuals in specialized fields such as anti-corruption and anti-bribery, fair competition, trade compliance, data protection, and human rights governanceto provide a comprehensive and detailed regulatory foundation for the Company's compliance construction. TheCompany conduct regular evaluations of the effectiveness of our compliance policies and regulations, dynamicallyreviewing and optimizing them in response to changes in the external environment such as laws, regulations, andindustry practices, so as to ensure the applicability and advancement of our compliance framework.
The Company adheres to the construction and continuous improvement of the complianceimplementation framework of "Three Defenses, One Ecosystem", advocates the action concept of"Everyone is a Compliance Officer" and "Unity of Knowledge and Action, and Makes Compliancea Habit", clarifies that all business units, departments and employees are responsible for the firstdefense of compliance, and requires every employee to integrate compliance into daily businessbehavior. At the same time, the company is also committed to building a compliance ecosystem forcustomers, suppliers, partners, and other relevant parties to promote industrial synergy and steadydevelopment.
Compliance Organization Structure
Hikvision Compliance Implementation Framework of "Three Defenses, One Ecosystem"
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●Advancing Compliance Practices
The Company continues to invest in strengthening the internal implementation of compliance policiesand rules. We elevate the level of informatization and digitalization in compliance management andkeep bolstering the organizational resilience of compliance management through the establishmentand optimization of management systems, processes, and operational guidance.The Company actively carries out engagements about compliance culture, communicates theCompany's compliance governance concepts and practices with stakeholders, and continuously seeksthe best compliance practices in the industry. During the reporting period, the Company officiallylaunched a compliance webpage (https://www.hikvision.com/en/about-us/compliance/) on its ofcialwebsite. This webpage discloses the Company's code of ethics, compliance values and beliefs, aswell as relevant policies. The Company will continue to enhance communication and engagementwith stakeholders, draw on advanced compliance experiences and concepts, continuously improvethe compliance governance system, and lay a solid foundation for the sustainable development ofCompany.
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Promoting Compliance Culture
The Company adheres to the compliance value concept of "practicing integrity and compliance, achieving stableand sustainable development", and advocates the action awareness of "unity of knowledge and action, makingcompliance a habit". Emphasizing the importance of implementation and consistency, the Company actively fostersa robust compliance culture through annual compliance training, campaigns and examinations, and hold specialevents for Compliance Culture Month from November to December every year. These initiatives aim to enhance thecompliance awareness and practical skills of all employees through activities such as compliance story collection,compliance salons, and compliance culture events.Scan the QR code tolearn more about theCompany's philosophyand policies of compliance
Tax management platformsoftware copyright certificate
Trade ComplianceCommitted to fullling its trade compliance responsibilities, the Company continues to rene its globaltrade compliance system to align with relevant laws and regulations concerning export control andeconomic sanctions imposed by international organizations, countries, and regions such as the UnitedNations, China, the United States, and the European Union.During the reporting period, the Company actively tracked and interpreted key rules of global tradecompliance and promptly incorporated them into its internal compliance requirements and controlplans. It consistently optimized trade compliance control processes and system management tools,enhancing the Company's capacity to integrate trade compliance into various aspects of its operationssuch as procurement, R&D, sales, delivery, and service. This comprehensive approach aims to achieveend-to-end trade compliance management and supervision.Tax ComplianceThe Company has developed a comprehensive set of tax management regulationssuch as the Hikvision Group Guidelines for Transfer Pricing Policy Framework,the Tax Management Policy for Overseas Branches, and the Risk ManagementRegulations for Standing Overseas Business Organizations. These documentsoutline management objectives, organizational responsibilities, scope of work,information communication, supervision, and improvement measures, requiring theCompany to conduct tax-related activities in compliance with laws and regulationsand actively disclose tax information. Additionally, the Company has implementeda tax management platform that leverages information technology for tax riskmanagement and compliance. This initiative has enhanced tax control processesand measures while improving the accuracy and efficiency of tax compliance.Hikvision tax management platform has received the Registration Certificate ofComputer Software Copyright.Hikvision has been rated as Grade A in tax credit rating for many years. During thereporting period, the Company applied the Guidelines for Overseas Subsidiaries toits operation in 10 more countries, and updated and revised tax regulatory guidanceand reporting documents for various countries. These efforts aim to enhance theglobal tax compliance system. Additionally, the Company has introduced over 20new training topics and case studies, covering a range of subjects such as theintroduction of "Pillar 2", country-specic tax-related rules, and other cutting-edgepractical expertise.
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Adhering to Business Ethics
Hikvision is committed to implementing the core values of "acting with honesty and integrity",continuously improving policies and standardized operations, and conducting training andpromotional activities to promote business ethics and cultural development. Furthermore, theCompany establishes supervision mechanisms and corresponding investigation and handlingprocedures to guide and regulate the behaviors of employees, management team, and partners.These measures serve as a foundation for the Company's long-term stability and development. ●Business Ethics Management SystemRecognizing the signicance of business ethics, the Company places a strong emphasis on honesty and integrity, enhancingits organizational structure for business ethics. It has established the Integrity and Ethics Compliance Committee as a top-levelbody to ensure adherence to ethical principles across various business activities, fostering goodwill and promoting businesspartnerships. In line with this commitment, the Company strictly complies with relevant domestic and international laws andregulations such as anti-corruption, anti-bribery, anti-unfair competition, and anti-monopoly. Furthermore, the Companyestablishes and improves fundamental rules on ethics and business conduct, including the Hikvision Code of Ethics and BusinessConduct, Code of Business Conduct for Employee, the Hikvision Global Anti-Bribery and Anti-Corruption Manual and HikvisionCode of Global Anti-Monopoly Compliance, which are applicable to the Company's employees and third parties with whom theCompany has business relations. These practices regulate the behavior of the Company's directors, managers and all employees,eliminate bribery and corruption, protect fair competition, and formulate conict of interest policies to strengthen managementand strive to build a sustainable business environment.The Company maintains a "zero-tolerance" stance against corruption and continuously enhances the systematization andapplicability of its institutional documents. During the reporting period, the Company updated the Hikvision Code of Ethics andBusiness Conduct, the Code of Business Conduct for Employees, and the Hikvision Global Anti-Bribery and Anti-CorruptionManual.
●Fair CompetitionThe Company adheres to the principle of fair competition, and abides by laws and regulations for anti-monopoly and anti-unfair competition, establishes a mechanism to regularly review and update anti-monopoly compliance policies, continuouslystrengthens anti-monopoly compliance awareness training for employees, actively maintains a fair market competitionenvironment, and promotes healthy economic development. The Company updated region-specific guidelines for China'smainland, South Africa, South Korea and Canada. In addition, the Company complied and issued the Guidelines on FrequentlyAsked Questions on Antitrust Compliance to provide more specic and easy-to-understand guidance for employees. During thereporting period, the Company did not have any anti-monopoly related legal proceedings or investigations.The Company consistently upholds its commitment to fostering a fair marketing environment for every consumer andsafeguarding their legitimate rights and interests. It strictly adheres to applicable laws and regulations governing advertisingand labeling in the jurisdictions where it operates, including the Advertising Law and the Law of Protection of Consumer Rightsand Interests. Internal regulations such as the Sales Management Policy and Ten Red Lines for Integrity Practice are in place toregulate the conduct of marketers and distributers. These measures ensure that information communicated is accurate, truthful,and legal, and that sales and marketing practices adhere to laws, regulations, social norms, and moral standards. The Companyconducted training sessions on business, market management, and compliance management for the marketing team, enhancingthe compliance mindset and compliance management skills of relevant personnel. During the reporting period, the Company didnot incur any violations in terms of marketing communications.
●Managing Supervision and ReportingThe Company has established a sound anti-fraud reporting and complaint mechanism, formulated the Whistleblowing Policy,Reporting and Complaint Management Measures, set up reporting channels such as reporting mailboxes, mailing addresses,and reporting hotline, and encouraged internal employees, partners, and other stakeholders in reporting and lodging complaintsregarding violations. The Company established and improved the internal audit system, analyzes and evaluates business ethicsand corruption risks, focuses on important businesses or departments that may breed fraud in the annual audit plan everyyear, and always maintains attention to corruption and bribery and other violations of laws and regulations in all audit activities,and strengthens the supervision of system construction, process establishment and implementation in the management andoperation. For example, in the procurement process, the Company strictly audits whether the access and exit management ofsuppliers, procurement procedures, and price are compliant. Meanwhile, the Company has established a standard protectionmechanism for whistleblowers, strictly maintaining the condentiality of whistleblower information and prohibiting retaliationagainst whistleblowers. This ensures that employees and entities who report internal violations, fraud, and behaviors damagingthe Company's reputation are safeguarded by the Company.
●Business Ethics TrainingThe Company continues its efforts in promoting and implementingintegrity, with a focus on strengthening publicity and traininginitiatives. This included conducting on-site integrity education andtraining sessions, which covered various high-risk positions anddepartments. During the reporting period, the Company updatedtraining courses to incorporate the content according to the Codeof Ethics and Business Conduct, ensuring the participation of allemployees (including contractors and interns) in these trainingsessions and tests. Additionally, integrity reminders are sent toall employees during important holidays such as the Dragon BoatFestival, Mid-Autumn Festival, and National Day. On the annual "12.9International Anti-Corruption Day", the Company conducted integrity-themed educational activities such as Q&A sessions and interactivegames both online and offline. These initiatives aimed to helpemployee further establish the value of integrity and pragmatism.
The Company is committed to safeguarding the personal information and other legitimate rights andinterests of whistleblowers, maintaining a zero-tolerance policy towards any form of retaliation. Weundertake all necessary information security measures to protect whistleblowers' personal informationand reported content from leaking and unauthorized access, alteration, or destruction.
Whistleblower Protection Mechanism
Hotline:
0571-86611816E-mail:
jubao@hikvision.comWhistleblowing Hotline and E-mail for Potential Bribery or Corruption Behaviors
12.9 International Anti-Corruption Day
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Respecting and Protecting Human RightsAs a global corporate citizen, Hikvision fully respects and protects human rights, and optimizes itshuman rights governance policies and commitments. The Company encourages employees to deepen
the understanding of connection between the concept of human rights and corporate operationthat includes technological research, product design and development, marketing and sales. Thisapproach ensures that the respect and protection of human rights are integrated into business
decisions and operations. ●Protecting Human RightsThe Company respects the human rights stipulated in the Universal Declaration of Human Rights, the InternationalCovenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, andthe International Labor Organization Declaration on Fundamental Principles and Rights at Work. At the sametime, we draw guidance from frameworks such as the United Nations Guiding Principles on Business and HumanRights, and the OECD (Organization for Economic Co-operation and Development) Guidelines for MultinationalEnterprises, to formulate and optimize human rights governance policies and commitments.During the reporting period, the Company issued the Hikvision Global Human Rights Policy to ensure that all itsdirectors, supervisors, senior management team, and employees treat others and conduct business activities withintegrity, respect, and fairness, clearly articulating its dedication to ensuring that everyone within the Companyand throughout the value chain is respected.
For "product and business management", the Company employs an approach of "automation plus manual" forcompliance due diligence procedures. This involves internal risk assessment, third-party audits, stakeholdercommunication, risk reporting, and other measures to assess human rights risks. At the same time, the Companycommunicates its commitment and concept of "respect for human rights" to suppliers, customers, and end-users through contracts, commitments, and product usage proposals, etc. The Company maintains continuedcooperation with external consultants, and keeps reviewing and optimizing its human rights compliance system.Additionally, the Company has established a reporting mechanism for potential risks in its released WhistleblowingPolicy. This ensures that incidents with potential negative impacts on human rights are addressed in an objectiveand efcient way. If deemed necessary, appropriate remedial actions will be taken to mitigate or eliminate existingimpacts.
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International Exchanges and Cooperation
The Company proactively keep in touch with many human rights organizations around the world, with the aimof exploring and adopting emerging expectations and advanced practices of human rights in a timely manner.For instance, in November 2023, the Company participated in the 12th United Nations Forum on Business andHuman Rights in Geneva, Switzerland, as part of our efforts in improving corporate compliance of human rights inbusiness practices.The Company pledged its commitment to the future of human rights at the United Nations "75 Pledges" campaign.It has implemented innovative and forward-looking programs across three strategic areas including employeemanagement, product and business management, and supply chain management.
Embracing the conceptof "Tech for Good,"the Company remainsdedicated to responsibleand sustainable businesspractices. This commitmentwas further underscored byits approved participation inthe UNGC in January 2024.
●Conveying the Concept of Human RightsDuring the reporting period, the Company organized activities such as themed exhibitions and signing eventsacross the ofces of China, Singapore, the United Kingdom, and the Netherlands, marking the ofcial launch ofthe Hikvision Global Human Rights Policy while commemorating the 75th anniversary of the Universal Declarationof Human Rights. Through cross-regional activities, the Company aims to enhance understanding and recognitionof the importance of human rights among its employees worldwide, while fostering a cross-cultural and inclusiveworking environment. Furthermore, the Company actively promotes corporate values that prioritize the respectfor human rights in a global scale. We encourage ofces in different countries and regions to play an active role inupholding human rights, thereby creating a unied global business entity committed to the highest standards ofhuman rights.
Signing activity for "Commemoration of the 75th Anniversary of the Universal declaration of Human Rights" at our domestic and overseas offices
4647
Product ResponsibilityHikvision, firmly rooted in technological innovation, deeply insights into the needsof our customers, and remains unwavering in our commitment to quality. We arededicated to providing high-quality products, solutions, and localized services andnurturing a reliable cybersecurity environment. Leveraging science and technology,we empower our customers to thrive in both professional endeavors and everydaylives.
Key Performance in 2023
Technological Innovation:
Our R&D investment reached RMB 11.393 billion, up 16.08% year onyear, accounting for 12.75% of the annual operating incomeWe were granted 1,884 invention patents, 336 utility model patents,462 design patents, 166 software copyrights, and 54 trademarksWe led the compilation of 1 national standard and participated inthe compilation of 17 national standards, 15 group standards, and 3international standardsProduct Quality:
We were honored by the China Association for Quality Inspection as:
the 2023 National Quality and Integrity Model Enterprisethe 2020-2023 National Quality Leading Enterprise in SecurityIndustrythe 2020-2023 Stable and Qualied Products in National QualityInspectionthe 2023 National Quality and Integrity Demonstration Enterprise inProducts and ServicesHigh-quality Services:
We were certied with Level 1 Conformity (in the Operation andMaintenance Sector) under Information Technology Service Standards(ITSS)Information Security:
We received the ISO 38505 governance of data certication for therst timeWe held 85 training sessions on cybersecurity, covering 100% of ouremployeesContribution to UN SDGs
4849
Promoting Technological Innovation
Innovation serves as the boundless motive force for Hikvision's sustainable development. We harnessthe limitless potential for technological advancement by continually investing in professional R&Dteam, promoting intellectual property protection, fostering a culture of innovation, and actively
engaging in industry collaborations, together with other initiatives.●Increasing Innovation InvestmentHikvision is committed to increasing investment in research and development(R&D). We have established a global network of R&D centers with Hangzhou as thecentral hub, extending to Beijing, Shanghai, Wuhan, Xi’an, Chengdu, Chongqing,Shijiazhuang, Montreal (Canada), London (the UK), and Dubai (UAE).We encourage our employees to explore frontier technologies, striving to cultivate ateam distinguished by its extensive experience and exceptional expertise. This teamis responsible for developing and implementing innovative technologies, includingbut not limited to the Internet of Things, AI, Big Bata, and Large Scale Model.During the reporting period, our post-doctoral research center welcomed a dozenresearchers, several of whom successfully completed their tenure. Additionally, ouremployees published over 20 papers at top conferences in computer vision andarticial intelligence, such as CVPR、ECCV、AAAI*.●Leading Industrial InnovationThrough active cooperation with research institutions, industry associations,and leading enterprises, as well as extensive involvement in the development ofindustry standards, Hikvision plays a pivotal role in driving industrial transformation.The Hikvision Research Institute maintains robust exchange and cooperationwith standard-setting bodies, such as the National Technical Committee 28 onInformation Technology of Standardization Administration of China as well as itsArticial Intelligence Sub-committee (SC42) and Biometric Features RecognitionSub-committee (SC37), and the International Articial Intelligence Industry Alliance(AIIA). We make in-depth efforts in promoting the standardization of video encodingand decoding, Large Scale Model, Trustworthy AI and other key areas.During the reporting period, the Company was recognized as an Outstanding Member for 2023 by the Big Data TechnicalStandards Promotion Committee of the China Communications Standards Association (CCSA/TC601). We have taken the lead inthe development of one national standard and actively contributed to the development of 3 international standards, 17 nationalstandards and 15 group standards.●
Protecting Intellectual Property
Hikvision places significant emphasis on safeguarding the intellectual property rights of our innovative achievements whilerespecting the lawful rights and interests of third-party intellectual property owners. In strict adherence to the Patent Law, theTrademark Law, and other relevant laws and regulations, we have issued various policies, such as the Trademark Use System togovern our internal trademark registration and usage procedures.During the reporting period, the Company completed both the second-phase optimization and launch of the trademark databasemanagement system, offering comprehensive support for various business scenarios related to trademark management andusage.
Additionally, Hikvision boosts awareness of intellectual property protection among employees through training and variousother activities. We provide multiple channels, including hotlines, email, and our website, for reporting intellectual propertyinfringements, and ensure a smooth feedback mechanism.During the reporting period, the Company led 10 intellectual property infringement complaints, with 8 resolved.
Invention patent
Number of patents granted in 20231,884Total number of patents granted5,759Number of patents under application4,800+Utility model patent
Number of patents granted in 2023336Total number of patents granted1,679Number of patents under application230+Design patent
Number of patents granted in 2023462Total number of patents granted2,761Number of patents under application530+Software copyright
Number of patents granted in 2023166Total number of patents granted1,907Number of patents under application20+Trademark
Number of patents granted in 202354Total number of patents granted2,363Number of patents under application517Notes:
● Data as of December 31, 2023.
●
Statistics scope of our patents:
Number of patents granted in 2023: Based on the number of ofciallyauthorized documents received as of December 31, 2023.
Number of patents under application: Based on the number of ofcialacceptance notices received as of December 31, 2023.
Total number of patents granted: Valid patents as of December 31, 2023.
●Statistics scope of our software copyright:
Number of software copyrights granted in 2023:
Based on the number of software copyrightcerticates received as of December 31, 2023.Number of software copyrights under application:
Based on the number of applications submittedto the copyright center as of December 31, 2023.Total number of software copyrights granted: Validsoftware copyrights as of December 31, 2023.
Hotline: 400 800 5998Email: weiquan315@hikvision.comWebsite: www.hikvision.com/weiquan315Mailing Address: Legal and Compliance Department, No. 518 WuLianWang Street, Binjiang District,Hangzhou, 0571-88075998-63844
Channels to Report Intellectual Property Infringements to Hikvision
Number of R&D staff
28,479
Accounting for
48.65%
of the total employees
＊
IEEE Conference on Computer Vision and Pattern Recognition (CVPR), European Conference onComputer Vision (ECCV), and Association for the Advancement of Arti?cial Intelligence (AAAI)
During the reporting periodR&D investmentRMB11.39 billionYoY growth
16.08%
Accounting for
12.75%
of the total revenue
5051
●
Nurturing a Culture of Innovation
Hikvision regularly organizes diverse innovation activities with the goal of fostering a culture of creativity andexcellence. We recognize teams and individuals who demonstrate outstanding performance and make signicantcontributions to innovation and quality. During the reporting period, the Company organized the 3rd TRIZ (Theoryof Inventive Problem Solving) Innovation and Creativity Competition for all employees, as well as the "StreamliningCases of Invention Principles" activity.
The First TRIZ Innovation Forum: Sharinginnovation experience to stimulateinnovation vitality
In August 2023, we sponsored the First TRIZ (Theoryof Inventive Problem Solving) Innovation Forum. Thisevent showcased the application of scientic methodsto innovation, highlighting the theoretical andpractical benets of TRIZ in enhancing the innovativecapabilities of individuals and organizations. Theforum attracted approximately 500 participants, bothvirtually and in person. Notably, the project “R&D ofthe New Generation Underwater Camera” participatedin the 2023 China Innovation Methods Competitionand was awarded the Third Prize in Zhejiang Province.
Case
The First TRIZ Innovation Forum Concluded with a Complete Success
Quality Management Structure
Quality Management Model
Guaranteeing Product QualityUpholding the quality policy of “leading technology, quality rst, customer satisfaction, continuousinnovation”, Hikvision continuously renes its quality management system. We have built a strict qualitycontrol mechanism, covering the entire process from raw material acquisition to production, packaging,and shipping. At the same time, we intensify our efforts on the quality training for front-line employees,
providing fundamental support to quality management.●Optimizing Quality ManagementHikvision has established the Quality Management Committee, which is responsible for coordinating andoverseeing quality management across all levels of the organization. Additionally, we have developed acorresponding quality management structure and model that aligns with the Company’s operational requirements.This framework clearly outlines the management responsibility at every level, extending quality managementthroughout the production and operation process. Our quality management approaches are timely adapted totackle challenges in different development stages. Furthermore, the Company has obtained certication for theISO 9001 Quality Management System, highlighting our commitment to high standards in product quality.
Quality Management
Department
R&D QualityManagement
Executive Roles ofQuality Assurance
Service QualityManagement
Level I
Level II
Level III
As the executive body of the Quality ManagementCommittee, it is responsible for organizing,supervising and promoting the developmentof products and services to achieve qualitymanagement throughout the whole process.It is responsible forquality managementorganization andpromotion in variouselds.It is responsible for theimplementation specic activitiesin quality-control process and itsfurther promotion.
Supply Chain QualityManagement
Customer Success, Innovation Excellence
StandardDevelopmentProcess Construction
EnterpriseCulture Construction
Tool & MethodologyConstructionBusiness GoalManagement Goal
One Concept
FourMeasuresThreeDimensionsTwo Goals
During the report period
persons empowered by online and ofine TRIZ courses2,000
Employees were certied by Zhejiang provinciallevel-I innovative engineering training
TRIZ projectsPatentsNew products19115
First TRIZ Innovation Forum
StaffEmpowerment
ProcessImprovement
AssessmentImprovement
5253
Meanwhile, the Company integrates its technical expertise into qualitymanagement practices. By applying digital technology in qualitymanagement through a perspective of digital transformation, we explorethe synergy of personnel, digitization, intelligence, and machinery.Empowering our quality management with digital technology, we strive todrive advancements in quality on all fronts.
Hikvision’s Digital and Intelligent Quality Management Model
●Quality perception: Basedon comprehensive perception,we attend to the needs ofcustomers and stakeholderswith a focus on high quality,efciency, and overallexperience.
●Quality realization: By delvinginto quality scenarios with digitaltechnology, we drive the digitaland intelligent transformation ofcore values to redene qualitybusiness through virtual-realinteractions.
●Quality data: We haveestablished a comprehensivedata management system toensure effective conversionamong data, information,knowledge, and quality,allowing for data sharing ondemand.
●Quality AI: As AI becomesintegrated into businessoperations, technicalproduct innovation, andcustomer experience, weare transitioning towards AI-driven strategic operations.
●Quality operation: Byleveraging digital operationplatforms and facilities, weare reshaping managementperceptions and exploringthe synergy of personnel,digitization, intelligence, andmachinery.
●Quality transformation:
Through strategy-drivenintegrated transformation,our efforts in enhancing bothmanagement and businesspractices can result incomprehensive upgrade inquality across all aspects ofour operations.
●Fostering High-quality CultureAligning with the work policy of “raising employees’ awareness of quality responsibility and fosteringemployees’ quality-compliant habits”, Hikvision offers targeted quality management training and variousquality culture activities for employees from different positions. We thus enable our staff to acquireknowledge and skills in quality management to meet our development objectives.During the reporting period, the Company carried out three series of cultural promotion activities themeon high-quality development: “Adherence to the Red Line”, “Thorough Business Review”, and “ProactiveInnovation”.
Keep to Red Lines
The Company ofcially releasedthe Hikvision Quality Red LineManagement Policy, publicized andimplemented it for all employees, anda total of 22,000+ employees passedthe red-line learning and evaluation.Simultaneously self-inspection, self-correction and special audit activitieswere carried out.
ReviewThe Company has launched a reviewtool method course, with a total of20k+ clicks on publicity activities, with1000+ people participating in learningcourses. Besides we have launched 19ofine open classes/special trainings.The company has also carried outproject review that can help instructortraining, especially for projectmanagers, with 40+ project managerspracticing 50+ project reviews and94+ project lessons learned.
InnovationThe company actively usesTRIZ tools to empower 2,000employees throughout the year,and has launched 5 issues ofTRIZ innovation case stories tocreate an innovative atmosphere.
Quality Culture Promotion
5455
Delivering Quality ServicesRooted in our core values of “customer-friendly, value-centric, integrity-based, excellence-orienteddevelopment”, Hikvision champions a service philosophy of “professional service, customer rst”. Weprioritize understanding and addressing customer concerns promptly with our professional services,
continuously generating value for customers.
●
Improving Service SystemWith a focus on meeting customer needs and elevating satisfaction, Hikvision has crafted a comprehensive, one-stop integrated service system to provide high-quality products, services, and solutions. The Company has built athree-tiered service system encompassing a wide array of services, including services of standard product service,installation and debugging, project delivery, operation and maintenance, on-site support, and more. With localizedservice resources deployed worldwide, diversied and rened business needs of customers can be well satised.
During the reporting period, the Company passed the annual supervisory review by the China Quality CerticationCenter and was certified by the ISO 20000 Information Technology Service Management System, Level 1Conformity (in Operation and Maintenance Sector) by Information Technology Service Standards (ITSS), theCTEAS
*7-star Certication of after-sale service system perfection degree certication evaluation system, andCTEAS 12-star Certification of after-sale service system perfection degree certification evaluation system forcontinuous and effective service capability.
●Three-level service system
●Assuring customer satisfaction
●Diversied service solutions
●Digital and intelligent service tools
●Local service resources all over the world
●Complete internal and external training andcertication systemService System Overview
●
Upgrading Service Capabilities
Hikvision upgrades its customer service capabilities by expandingchannels and rening content across three dimensions: outreach, tools,and knowledge. We have developed reach platforms such as our ofcialwebsite, which features a comprehensive knowledge system. Additionally,we have introduced useful service tools to enrich our service hub.
Hikvision’s Service Tool and Content
During the reporting period, theCompany enriched new outreachchannels, such as the partner portal,the customer service ofcial account,and the WeChat mini program.Furthermore, to enhance knowledgewe accumulated over5,000
relevant documentsimproved and launched over
customer service tools
Ofcial SitePartners’ Site
Customer ServiceOfcial Account
WechatMini-program
Channels Platforms
KnowledgeAccumulation
KnowledgeCo-Creation
KnowledgeProduction
KnowledgeDisseminationKnowledgeApplication
KnowledgeAppraisal
The two methods are combined togetherto optimize, integrate, create and provide
tools and services
Knowledge Structure
Tool Service
LTCSOP
Lead to cash
Standard operation
procedure
＊
CTEAS：
It is a professional standard system to evaluate the perfection of the after-sales service system of the enterprise in accordance with the CTEAS100,CTEAS1001-2017 after-sales service system perfection certi?cation and evaluation speci?cations, and the relevant standards of the national standard GB/T27922-2011 commodity after-sales service evaluation system
5657
●
Elevating Service Satisfaction
Hikvision conducts regular customer satisfaction surveys and maintainsa robust mechanism for collecting, categorizing, and addressingcustomer feedback digitally. Annually, we monitor customer satisfactionand investigate the root causes of recurring issues, and formulateimprovement plans accordingly. On this basis, we conclude solutions andexperiences that signicantly improve customer satisfaction and promotethem through sharing sessions and other channels.
＊
Net Promoter Score (NPS) = (number of recommenders/total sample)×100% - (number of detractors/total sample)× 100%
Network and Information SecurityHikvision rmly believes that network and information security is not only the industry baseline but alsothe primary prerequisite for delivering secure and superior user experience. With a robust cybersecuritymanagement structure in place, the Company consistently enhances the process management capability
of emergency responses and integrates cybersecurity awareness into our corporate culture. Committedto offering customers stable, reliable, safe, and trustworthy products and services, we collaborate with
partners to foster a secure network and information ecosystem.
●Improving Cybersecurity Management SystemHikvision has always been at the forefront of the industry in maintaining networksecurity. The Company has established the Network and Information SecurityCommittee as the highest governing body within its security organizational structure.Chaired by the Company's President, the committee appoints the CybersecurityDepartment, a standing specialized organization, to oversee strategic planning, policyformulation, and decision-making regarding signicant conicts or relevant issues.
Network andInformation SecurityLaboratory
CybersecurityDepartment
Network andInformationSecurityCommitteeSecurityResponse Center
Product SecurityManagement GroupInformation SecurityManagement GroupSecurity TestingDepartment
Legal ComplianceQuality ManagementPublic RelationsTechnical Support
Hardware Production R&DCenterSoftware Production R&DCenterPublic Business GroupEnterprise Business GroupInnovative Business CenterDomestic Marketing CenterInternational Business CenterSupply Chain CenterResearch InstituteSupport Team
Security Organizational Structure
Multiple ways to improve the user experience
After-salesmaintenanceimprovement
Technicalfield serviceimprovement
Hotlineserviceimprovement
During the reporting period, the Company conducted a customersatisfaction survey to calculate Net Promoter Score (NPS ).The results showed:
the NPS of domesticnon-distributioncustomers reached70%
compared with ayear eariler, up1%
the NPS of distributioncustomers reached78%
5859
The Company has updated and published Cybersecurity White Paper and Product Security White Paper,introducing our explorations and practices in the eld of cybersecurity. This enables stakeholders to understandour security capabilities from an open and transparent perspective.
During the reporting period, the Company introduced policies including the Management Standards for InformationSecurity Exchange, the Management Procedures for Information Security Risk Assessment, and the ImplementingStandards for Information System Risk Assessment. We also established a mechanism for communicationand coordination between information security and external organizations. Additionally, the newly releasedManagement Procedures for Threats and Vulnerabilities not only emphasize our focus on managing threatintelligence and vulnerabilities, but also expand the scope of information security management. These adjustmentshave transformed information security management from static incident responses to ongoing surveillance andmanagement of security issues. This has resulted in the establishment of a more dynamic and comprehensiveapproach to information security management, aiming to address evolving security threats and challenges.Moreover, the Company received the ISO/IEC 27001:2022 Information Security Management System and ISO/IEC 29151:2017 Personal Data Privacy Protection Management System certications from the British StandardsInstitution (BSI). Our information security management system has been ranking atop internationally.
Hikvision released the 2023 edition of Cybersecurity White Paper and Product Security White Paper
Security Emergency Response
Emergency Response Director
Product Engineers from All Business Department
Network and Information Security Committee
Gathering LoopholeInformationIdentifyingLoopholes by testing
AnalyzingLoopholes
DisclosingLoopholesRepairingLoopholesBuild and Maintain Bank of Loopholes
Searching and Decision Strategy
Repairing Loopholes
InternalTesting
Public/CustomersCustomerCenterCustomersHackersSuppliers
SecurityOrganization
GatheringLoopholeInformation
Disclosed onOfcial Site
Sent by IT Email
Honors and Awards
We received the
Reliable Digital Plant Golden Award in the inaugural DTAA (Digital Trust
Assurance Award) from BSI3 series of camera products were certied bythe Common Criteria for Information Technology Security Evaluation
(EAL3+)
4 camera products were certied bythe Cybersecurity Labelling Scheme (Level 4)
Key security defense technology for IoT intelligent terminal and its large-scale
application was awardedthe rst prize of Zhejiang Provincial Science and Technology Award
6061
●
Raising Cybersecurity AwarenessHikvision offers a diverse range of information security training andactivities for the entire workforce and staff from specic positions, suchas daily awareness training, targeted and specialized security training,annual training examinations for all, phishing drills, and security attack-defense drills.During the reporting period, the Company introduced 25 cybersecuritycourses for employees at home and abroad, covering topics such as thePrivacy Protection in Data Lifecycle, the APP Privacy Compliance, andthe Information Asset Transmission and Protection. We also organized85 cybersecurity publicity and training sessions, covering 100% of ouremployees.
●Advancing Data Privacy ProtectionThe Company complies with the Data Security Law, the Administrative Measures for Data Security in the Field ofIndustry and Information Technology (Trial), among other laws and regulations. We formulate and publish a DataLifecycle Security Management System, and improve our data grading and classication efforts, as well as thecompliance management process for collecting and utilizing personal information through our domestic apps.Moreover, abiding by the latest ISO/IEC 27001:2022 Information Security Management System Standards andintegrating the framework requirements of ISO 38505 Data Governance Security Management System, theCompany has made significant updates and adjustments to our information security and privacy managementsystem. To address key areas of focus, we have introduced policies such as the Hikvision Singapore PersonalData Protection Policy and the EU Electronic Privacy Compliance Operation Guide to further rene our system ofpolicies.During the reporting period, the Company obtained the ISO/IEC 27701:2019 Privacy Information ManagementSystem and the ISO 38505-1:2017 Data Governance System certifications. Adhering to the Measures for theSecurity Assessment of Outbound Data Transfer, we applied for a security assessment for outbound data transferfrom the Ofce of the Central Cyberspace Affairs Commission and became one of the rst companies in Zhejiangto successfully complete this assessment. During the reporting period, the Company's app strictly complied withrelevant regulations in terms of compliance with the collection and use of personal information, and was notnotied by the Cyberspace Administration of China and the Ministry of Industry and Information Technology, norwas it subject to law enforcement or investigation by overseas regulatory authorities due to personal informationprotection issues.
Cybersecurity publicity weekIn 2023, the Company organized the Cybersecurity Publicity Week acrossthe headquarters remote R&D centers, production bases, and businesscenters. Through activities including “Steering Clear of the Red Line”, “FirewallChallenge”, “Security Awareness Check”, “Phishing Drill”, “Password StrengthQuiz”, “Information Security Training Lecture”, and “Information SecurityExamination”, we bolstered the security awareness across our workforce.
Case
During the reporting periodorganized
cybersecurity publicityand training sessionscovering100% of our employees
2023 Cybersecurity Publicity Week
Honors and AwardsInfovision Foresight SpaceT, our platform for perceptual
fusion and empowerment, received the Golden Cauldron Award at the 19th China Public Security ExpoReceived the
Best AI Security Vendor of the Year Award
from Tadawul
Received theAI Security Innovator of the Year Award
from ITP Media Group
6263
Environmental ResponsibilityAmidst the escalating challenges of climate change on a global scale, Hikvisionremains steadfast in its commitment to green development. We continuouslyenhance our environmental management system, leveraging clean technologyopportunities to progressively minimize the environmental footprint of ourmanufacturing and operations. By contributing our strength to achieving thecarbon peak and carbon neutrality goals, we champion harmony with nature.
Key Performance in 2023
Green Management:
We formulated the Management Procedures for Greenhouse GasEmissionsGreen Products:
We conducted carbon footprint certications for a series ofproducts, such as network cameras, smart identity recognitionterminals, LCDs, and LEDsGreen Production:
We embraced clean energy, with 12,533.7 MWh of power generatedvia photovoltaicsWe applied a solid waste management system, and wastewater,waste gas, solid waste, and chemicals were disposed of anddischarged/emitted with 100% complianceOur Chongqing production base won the title of "National GreenPlant", "Chongqing Environmental Protection Honest Enterprise", and"Chongqing Demonstration Plant of Digital and Green Transition"Contribution to UN SDGs
6465
Green Management
According to the UN Intergovernmental Panel on Climate Change (IPCC), climate change is a graveand mounting threat to our wellbeing and a healthy planet. Hikvision is fully aligned with the climategoals outlined in the Paris Agreement and China’s carbon peak and carbon neutrality goals. Ourcommitment to addressing climate change begins with the establishment of the Carbon Neutrality
Committee. With a focus on reducing carbon emissions throughout the product lifecycle, we areintensifying our efforts through technological empowerment, intelligent manufacturing, greenoperations, and low-carbon products. We are transitioning from management to practical application,
and maximize our contribution to mitigating the global impacts of climate change.
●Organizational StructureThe Company promotes carbon neutrality management from top to bottombased on a sound carbon management structure. Under the leadershipof the Board of the Company, our management team and the CarbonNeutrality Committee jointly formulate carbon management strategies,goals and policies, and take “safe and efficient AIoT applications forconnecting the whole chain of green and low-carbon development” as theCompany's green mission.The Carbon Neutrality Operation Working Group is responsible forthe development of the carbon management system, the OperationManagement Functional Group takes charge of basic operationalsupport such as laws and policies, capacity building, etc., and the fourbusiness groups (green operation, low-carbon products, intelligentmanufacturing, and technology empowerment) are responsible forspecific work planning and implementation. They also promote theCompany's energy conservation and carbon reduction through internalpublicity, newsletter, carbon footprint certification of products, andencouragement for low-carbon innovation, etc. Additionally, the Companygoes deep into the business scenarios of various industries to empowerupstream and downstream customers with AIoT business solutions andinnovative low-carbon applications, striving to boost the shared effortson carbon reduction within the industry, and achieve continuous businessimprovement.
●Policy SupportIn 2023, the Company formulated and introduced the ManagementProcedure for Greenhouse Gas Emissions. This initiative aims tostrengthen the management of GHG emissions, exercise control over thetotal amount of carbon emissions, reduce carbon intensity, and promotegreen and low-carbon operations.
Board of Director
Business Execution Groups
Managing TeamCarbon NeutralityCommission
Honors and Awards
"Hikvision remains steadfast in its commitment to green development. It advocates for greenproduction and operations, actively pursues energy-saving and emission-reduction initiatives, andprioritizes the R&D and application of clean technology products and services. Through these efforts,the company strives to achieve sustainability in harmony with the society and environment."
——Carbon Neutral Research Group of the 21st Century Economic Academy
We received the "2023 Carbon Neutrality Digital Pioneer Award"
from syobserve.com
We were honored as the"2023 Carbon Neutrality Pioneer Enterprise."The Board Secretary, Chief ComplianceOfcer (COO), Huang Fanghong, received
the honorary title of"2023 Carbon Neutrality Chief Climate
Ofcer"from the 21st Century Business HeraldWe were certied by theISO 14064 greenhouse gas accounting
and verication
Organizational Structure of CarbonManagement
Carbon NeutralityOperations Working Groups
6667
碳中和业务蓝图
Green ProductsMinimizing the environmental impact throughout our product lifecycle is a pivotal step in carbon reduction. At
Hikvision, we integrate green principles into every aspect of our product research and development, design,packaging and utilization, alongside conducting carbon footprint inventories and certications. In 2023, the
Company conducted carbon footprint certications for products such as Network Camera, Smart IdentityRecognition Terminal, LCD, and LED. By analyzing carbon footprints and energy consumption across their lifecycle,
we provide targeted insights and support our supply chain in reducing GHG emissions.
We were honored with the"2023 Five-Star Green Supply Chain Evaluation
for Disk Storage"
Hikrobot received the title of"Excellent Digital Intelligence Service Provider for2023 LOG Low Carbon Supply Chain Logistics"
by Logclub.com
We were honored with the"2023 Five-Star Green Supply Chain Evaluation
for Security Camera"
●
Integration into BusinessHikvision has laid out a carbon neutrality blueprint. Through this framework, we implement innovativeschemes and models aimed at energy conservation and carbon reduction. These initiativesencompass technology empowerment, intelligent manufacturing, green operations, and thedevelopment of low-carbon products. By bringing together the carbon reduction path of operation,product and manufacturing departments, we promote a green value chain and supply chain withtechnology.
To ensure effective climate management, Hikvision conducts GHGinventory assessments. During the reporting period, the Companycompleted an external audit for ISO 14064 carbon inventory, examiningour GHG emissions at the headquarters Phase II, and Tonglu Plant PhaseI and Phase II in 2022. In August, we were certified by the ISO 14064Greenhouse Gas Accounting and Verication.
Honors and Awards
6869
●
Design and R&D of Low-carbon Products
By integrating automation, modular design, and recycling practices into our product R&D processes,we prioritize the creation of eco-friendly products right from the start of their lifecycle. We rene ourproduct lineup to focus on options that offer high added value, produce fewer emissions and consumeless energy. This ensures that our product design, quality, functionality, and production align withgreen product standards.
Sustainable Product Design Philosophy
Hikrobot produces lighter and less energy-consuming AGVproductsHikrobot embraces lightweight and integration design concepts in developingAGV products. We have transitioned from traditional welded frames toaluminum alloy castings and from metal shells to plastic shells shaped by molds,signicantly reducing weight while maintaining overall strength.Additionally, the integration of motors and gearboxes has minimized both wiringusage and body size, resulting in a more compact layout. Taking AGV as anexample, the load ratio of the rst generation of AGV is 1:1.25 (self-weight 400kg,load 500kg).In the fourth generation, we achieved a load ratio of 1:6.67 (weight180kg, load 1200kg).
Case
●Clean Technology ApplicationThe Company proactively employs clean technologies across the product lifecycle. Utilizingminiaturized, low-power, high-efficiency components and lightweight, recyclable materials, weprioritize eco-friendly solutions to minimize the environmental impact of our products and servicesduring their use. Looking ahead, we are committed to investing more capital and human resourcesin clean technology to broaden its application and enhance its iterations across all aspects of ouroperations, ultimately leading to a reduction in carbon emissions.
The rst generation of HikRobot's AGVThe forth generation of HikRobot's AGV
47,050
were certiedby China Environmental Labelling
were certiedby Energy Conservation Certicationfrom 2022from 2022upup
models(including sub-models)
models(including sub-models)
12.6%14.9%
24,800
EZVIZ Vacuum Cleaners certied by the US UL2809 withocean-recycled materialsAccording to a report by the UN Environment Programme (UNEP), approximately11 million tons of plastic waste flow annually into oceans, killing over 1 millionsea birds and 100,000 sea mammals. In an effort to address ocean plastic wasterecycling alongside our users, the EZVIZ RC3, RE4, and RE5 series utilize spray-free, eco-friendly materials containing 85% ocean-recycled content. Theseproducts have been certied by the US UL2809 Recycled Content Validation. Byincorporating these eco-friendly materials, which are equivalent to repurposing16 plastic bottles per vacuum cleaner, we contribute to marine environmentalprotection.
Case
EZVIZ Vacuum Cleaners and US UL2809 certication
7071
●
Green Packaging
Hikvision is pioneering green packaging innovations to lessen theenvironmental impact of packaging materials. While ensuring thatproducts are fully protected by packaging, we have taken measures to de-plasticize and reduce packaging materials, promote degradable materials,and increase packaging recycling efficiency, minimizing the use ofpackaging materials.
De-plasticizationUpgrade part of our camera products color box to fully paperpackaging and replace EPE (Expandable Polyethylene) cushioningwith a paper-plastic mix for several monitor models, de-plasticizingby 46.2 tons in 2023
DegradationContinuously promote the replacement of petroleum-basedmaterials with biodegradable alternatives, reducing 15 tons incarbon emissions by the end of 2023
ReductionTo minimize packaging volume, we use air columnbags instead of EPE (Expandable Polyethylene) andstretchable foam, and opting for paper over woodare adopted, reducing over 200 tons of carbonemissions in 2023RecyclingPromote the application of recyclable turnoverboxes, which can reduce the use of nearly 5,000paper boxes, to reduce the waste of disposablematerials
Sustainable Packaging Initiatives
Green ProductionHikvision pays attention to the environmental impact of our business operations and manufacturing
processes. In alignment with this commitment, we work to build an eco-friendly production model.Specically, we make the whole production process clean, incorporate clean energy sources, optimizeenergy utilization, champion water conservation and recycling initiatives, minimize waste emissions,and enforce rigorous chemical management practices. These efforts facilitate the shared progress of
production operations and environmental protection.The Company conducts regular environmental risk assessments across all business activities to
identify potential risks and impacts, and dene clear environmental responsibilities and authoritiesfor all business departments. Additionally, we have updated and released the Change ManagementSystem for Environmental and Occupational Health and Safety (EHS) and the Procedures forEHS Change Management. These documents specify the steps in the change process, includingidentifying hazards, environmental factors and simultaneous approval of EHS, thereby rening our
green management process.
Honors and Awards
We were honored the"2023 GreenManufacturing Model
Award"by 2023 InternationalIntellectualManufacturing FestivalChongqing productionbase was honored as a"National Green Plant"
Chongqing production base
was honored as an"Environmental ProtectionIntegrity Enterprise" in Chongqing
Chongqing production basewas honored as a"Demonstration Plant ofCoordinated Digital andGreen Transition andDevelopment" in Chongqing
7273
Highly efcient refrigerating station projects are fullyimplemented
In 2022, we selected some sites to build highly efcient refrigerating stations to realize theintelligent improvement of energy efciency, gaining remarkable achievements in energyconservation. In 2023, we introduced high-efficiency refrigerating stations in eight newprojects, including the Zhengzhou production base and EZVIZ Network. These stationsfeature an all-variable frequency design, resulting in a remarkable 20% improvementin energy efficiency. Particularly noteworthy are the implementations at the Wuhanproduction base and Chongqing Phase III, where we employed direct-connected pumptechnology to reduce hydraulic resistance in water networks, resulting in a 10% reductionin energy consumption for transmission and distribution. Additionally, at the HangzhouEZVIZ Network, Zhengzhou production base, and Nanchang production base, we adoptedan “N+1” conguration of large and small units, combining centrifugal and screw machinesto ensure efcient and stable operation across a wide range of loads.Moreover, following a third-party energy efficiency evaluation, the Company’s High-efficiency Refrigerating Station Project at Jiangling Road Phase IV in Hangzhou washonored with the 2023 Blue Sky Cup Excellent Engineering Award by the Journal ofHV&AC.
Case
While prioritizing energy savings and reducing consumption, the Company promotes the procurement of green electricity andaccelerates the development of distributed photovoltaic and energy storage facilities, thereby accelerating energy transition.
Water resources managementThe Company continues to refine its water resource management system by developingthe Water Conservation Management Standards. The leading group and the working groupfor water-saving management have devised a comprehensive five-year plan for waterconservation. Through initiatives such as balanced water testing, water use monitoring,water-saving transformation, and rainwater collection, we aim to minimize water waste andoptimize the efciency of water resource utilization.
Photovoltaic (PV) powerPriority is given to PV power generation in new industrial parks. During the reporting period, the Chongqing production baseinstalled a 4.43 MW DC PV project, generating around 2,492.7 MWh, the Tonglu production base’s Phase I and Phase II installedthe 9.118 MW PV power facility, generating around 10,041.0 MWh, and the Tonglu production base’s Phase III and Phase IV is set toinstall around 27,000 square meters of PV capacity.
Full-process Energy Management
●Optimizing Resource UsageHikvision embraces the principle of minimizing resource consumption throughout all stages of operations. From equipmentprocurement to energy usage and the retirement and replacement of equipment, we promote the delicacy management ofenergy utilization.
Source ControlProcess ManagementElimination MechanismTo curb the procurement of high-energy-consuming equipment, we have developedthe Access Requirements for Key Energy-Consuming Equipment, mandating theprocurement of more efficient and energy-saving equipment. In 2023, the Tonglu sitePhase III introduced an air compressor heatwater recovery system. This process ensuresthe optimal utilization of thermal energy whileminimizing resource consumption
We have developed management policies and processes for theuse of electricity, water, and natural gas, such as the ManagementSpecifications for Energy-saving and Consumption Reduction,the Control Process for Energy Targets and Indicators, andthe Management Process for Energy Consumption Issues. Byanalysis the energy consumption goals at the corporate level,departmental level, and key area level on a monthly basis. Wehave also developed an digitial workow to address instances ofenergy overconsumption and waste interface to rectify energyoverconsumption and waste, forming a robust PDCA cycle
We have developed the ManagementSpecifications for Compliant EnergyConsumption in Equipment, guiding usto conduct annual checks and replacenon-compliant equipment. In 2023, weeliminated a bending machine drived anobsolete electric motor
In Binjiang Phase II and Phase III,reclaimed water from direct drinkingwater is used for basement floorcleaning
Binjiang Phase IV has introduceda grade-I water-saving certifiedcooling tower and equipped anintelligent atomization system forair conditioning in the test room
Tonglu Phase III and NanjingHikvision Technology Park projectare both outtted with water-savingand overow-prevention equipment.Water meters are installed in allwater use areas. A rainwater reusesystem is also in place to collect,treat, and repurpose rainwater forirrigation and surface cleaning
Water Conservation Initiatives
●Reducing Waste DischargeHikvision rigorously follows the Law on the Prevention and Control of Water Pollution,the Law on Prevention and Control of Air Pollution, the Law on Prevention and Control ofEnvironmental Pollution by Solid Waste, and other laws and regulations of the places wherewe operate. We maintain strict oversight of emissions management and strive to minimizewaste gas, wastewater, and solid waste while ensuring compliant treatment and disposalprocesses.Wastewater Discharge and Waste Gas Emission ManagementThe Company has developed the List of Environmental Pollution Factors and theManagement Standards for Environmental Pollution Prevention and Control Facilities,detailing the main pollutants and corresponding targeted treatment measures.
WastewaterWaste Gas
Domestic wastewater: It is discharged into a septic tank through campus sewagepipes. Subsequently, it undergoes L3 biochemical treatment to meet dischargestandards before entering the municipal sewage pipe network. Finally, afteradditional treatment at an urban sewage treatment station, it is released intoriversWastewater from canteen kitchen: It is discharged into a grease trap via campussewage pipes, where it passes through an oil-water separator. Followingtreatment to meet discharge standards, it is discharged with domestic sewageand enters the municipal sewage pipe network. Finally, it undergoes furthertreatment at an urban sewage treatment station before being discharged intorivers
Organic waste gas: Laboratory facilities for waste gascollection and puri?cation are installed to ensure thatall waste gases generated from experiments involvingvolatile chemical substances can be collected anddisposedDust: Emergency ventilation and waste gas and dustpuri?cation facilities are installedFume exhaust: Following treatment with a high-voltageelectrostatic puri?er up to the standard, emissions aresafely vented through a designated ?ue to the rooftopWastewater Discharge and Waste Gas Emission Disposal Process
7475
Identify
Upon submission for storagerequest, the system automaticallycategorizes the solid waste to be
stored
Solid WasteDisposalProcess
●Chemicals ManagementHikvision maintains a cautious stance on the use of hazardous chemicals in production process. Adhering to a policy of “avoidingthe use of banned chemicals and minimizing the use of hazardous chemicals”, we have issued the Measures for the SafetyManagement of Hazardous Chemicals. We assess the hazardous property of incoming chemicals and establish protectivemeasures throughout the entire process, encompassing collection, storage, and handling. While ensuring compliance withproduct quality standards, we prioritize the implementation of eco-friendly chemical processes and actively pursue alternativesto harmful substances, thereby preserving the environmentally friendly characteristics of our products.During the reporting period, the Company updated the Standards for Environmentally Restricted Substances Control.We incorporated new requirements, including the US Toxic Substances Control Act (TSCA), Japan’s Act on the Evaluationof Chemical Substances and Regulation of Their Manufacture, the EU’s Ozone-Depleting Substances (ODS), FluorinatedGreenhouse Gases Regulations, REACH Annex XVII, and the China Environmental Labelling I standard, into our list of restrictedsubstances. This ensures that all materials we utilize adhere to both national and international environmental regulations, as wellas policies governing chemicals registration, evaluation, authorization, and restriction.
Solid Waste Discharge ManagementThe Company has introduced several waste management specifications, including the Classification Standard for GeneralIndustrial Solid Waste and the Management Specification for the Safe Use of Lithium Batteries. These policies aim tostandardize and track waste disposal practices, ensuring that various types of waste batteries are disposed of in a uniformmanner. Additionally, we have launched a solid waste management system, increasing the comprehensive utilization rates ofvarious materials, and improving the efciency of disposing of recyclable solid wastes.For hazardous waste, the Company updated and released the Management Specication for Hazardous Waste in accordancewith national standards and technical specications. This document delineates the criteria for collecting, transferring, storing,and disposing of hazardous waste. It ensures that all departments fulll their supervisory responsibilities concerning hazardouswaste, thereby standardizing disposal procedures throughout Hikvision. Additionally, we have implemented a digital managementsystem to monitor hazardous waste in real-time, ensuring its legal and safe disposal.
Hikimaging replaces traditional acid pickling with physical polishingWe actively explore ways to reduce the use of chemicals in the production process. Traditionally, acidpickling is applied to polish products, while Hikimaging has developed a magnetic polishing technologyreplacing the former technology in order to use less chemicals. As a result, the annual consumption ofacidic cleaning solutions in production is reduced from 4 tons to 0.6 tons, giving some perspective onreducing dangerous chemicals in other production lines.
Case
Green OperationHikvision integrates sustainability philosophy of environmental protection, energy conservation andemission reduction into campus construction and daily operations. Through initiatives like promotinggreen ofce practices, we create green, low-carbon workspaces to strive for efcient, intelligent, and
environmentally friendly operations. ●
Sustainable CampusHikvision incorporating green principles into campus building. From design andplanning to construction and the selection of decoration materials, Hikvisionprioritizes achieving low-carbon, energy-saving, and recycling outcomes. In2023, our Nanjing R&D building construction project earned Green Building OneStar Standard.
Building design and planning:We prioritize energy and water efficiency, andair quality enhancements in design and planning stage. We utilize BuildingInformation Modeling (BIM) technology in construction to optimize resourceutilization.
Prefabricated buildings:We promote the adoption of steel structures and
prefabricated materials for the buildings in the new campuses to reduceenvironmental pollution from wastes and ensure the materials 100% recycling.
Articial materials:We follow the principle of “healthy, green, and eco-friendly”
to choose decoration materials. Articial materials such as articial stones andprefabricated wall panel systems are used to avoid exploitation and deforestationwhilst balancing environmental and economic benets. ● Green OfceHikvision enhances energy efficiency in office operations by promoting energy and water conservation.We advocate for green R&D, green office, and green travel, working to cultivate a green, low-carbon officeenvironment.Green R&D: We keep improving energy utilization in the R&D process and try our best to use virtual machinesrather than the physical machines, thus minimizing energy consumption.
Green campus: We have formulated the Management Procedures for Equipment and Facilities Switches in
Campuses. These procedures outline the operation schedule and management for equipment and facilities,integrating group, time, light, sound, and motion controls of our smart buildings according to low-carbon andenergy-saving requirements.Green ofce: We constantly promote a paperless ofce environment through initiatives such as online meetings,
electronic materials, e-chops and e-signatures. These efforts not only simplify and standardize processes but alsosignicantly reduce paper consumption.Green travel: We provide shuttle buses within our campuses and integrate public transportation options into ouremployee travel platform, thereby substantially decreasing private transportation usage.
PlaceStore
InboundPlace based on the inbound particularsvia email to applicants, including theadministrator, contact information, and
warehouse location
Store solid waste by category accordingto management requirements in eachwarehouseThe warehouse administrator isinformed of inbound details andcoordinates with the applicantfor storage
DisposeSelect a recycling/disposal vendor whomeets the local standard and qualificationthrough bidding, with outbound weighting bya networked electronic scale
During the reporting period
Reduce environmental pollution fromwastes and ensure the materials100%
recycling
Solid Waste Disposal Process
7677
Public transport integrated into Hikvision’s employee travelplatformFollowing its introduction in 2022, the integrated business travel platform,Hitrips, which digitizes travel expenses and eliminates paper-basedreimbursements, expanded its offerings in 2023 with a subway travel module.We encourage environmentally friendly commuting among our employees bylinking Hiklink with Alipay’s subway travel code. Annually, business travel mileageon Hitrips exceeds 260 million kilometers. Opting for subway travel year-roundenables us to reduce GHG emissions by approximately 367 tons.
Hikvision launches green tree adoption activity for fourconsecutive yearsOn March 12, 2023, Hikvision and the Urban Management Bureau of BinjiangDistrict, Hangzhou, jointly launched the Green Tree Adoption Project alongBinjiang’s riverside scenic belt for the fourth consecutive year. We signedan adoption agreement for cherry trees and engaged in year-round routinemanagement and inspection activities to protect biodiversity with practicalactions.
Case
Case
Green Action
Hikvision encourages all employees to embrace a low-carbon lifestyle. We raise energy-saving andenvironmental awareness through effective publicity initiatives. Utilizing online platforms such as theofcial forum, public email, and MOA ofcial account, we disseminate relevant policies, regulations,and knowledge. Various environmental activities are also launched to promote green lifestyle.
The subway travel function on the Company's business travel integration platform "Hitrips".
Environmental Protection Lecture
Energy Conservation Week Banner
7879
Employee Responsibility
Hikvision regards our employees as the most valuable assets,adheres to the core values of "people-oriented and shared growth",and emphasizes the corporate culture of "respect and care for eachindividual", widely attracting abundant and diverse talent. The Companyprovides a platform for employees to display their talents, supportsthem to unleash their potential, and assist them in realizing their self-worth, thereby enabling them grow together with the Company.
Key performance in 2023
Talent Acquisition:
58,544 employees in totalDiversity and Inclusion:
2,421 ethnic minority employees
21 employees with disabilitiesProtection of Rights:
The coverage rate of collective contracts reached 100% at the
Hangzhou headquartersShared Growth:
A total of RMB 15.08 million was invested in employee training
A total of 1,534,482 training hours was spent in employee
training, with an average of 26.2 training hours per employeeHealth and Safety:
No occupational disease cases were found in the CompanyContribution to UN SDGs
8081
Gathering Diverse Talents
Hikvision is committed to building a diverse and inclusive talent team to better serve customers andsociety. We attract talents with an equal, open, and inclusive approach and based on a recruitment
policy that is fair, transparent, and inclusive. Apart from engagement in university-enterprisepartnerships, we improve the interviewing skills of our staff to underpin a fair recruitment process.Through these efforts, we increase our attractiveness to talents and bring together diverse talent in a
stable and ongoing manner.
●
Providing Equal OpportunityHikvision adheres to an equal, open and inclusive attitude to attracttalents, and strictly abides by the Labor Law, Labor Contract Law, TradeUnion Law and other international and domestic employment-relatedlaws and regulations. Our recruitment policy is founded on principles ofequality and openness, prohibiting any form of discrimination based onfactors such as race, gender, sexual orientation, age, nationality, religion,marital status, disability, or military service status.During the reporting period, no cases of child labor were reported withinthe Company.
2023 China Top 20 Employers
by Zhaopin.com
2023 Extraordinary Employer Award
by Liepin.com
2023 Global Talent Magnet Employer
by LinkedIn
8283
●Attracting Diverse TalentWe have established three-dimensional and diversifiedrecruitment channels to attract exceptional talents.Technical experts, interviewers, and alumni are arranged toimpart essential job skills to university students, effectivelyeliminating a significant barrier in attracting talents fromuniversities. Concurrently, we organize several trainingprograms to enhance the capabilities of our interviewersaimed at enabling interviewers to select talent in astandardized and scientic manner, while also demonstratingour objective, professional, and approachable demeanor intalent attraction.
Hikvision offers special courses on embedded systems andbuilds a university-enterprise talent supply chainIn 2023, Hikvision collaborated with the Hangzhou Dianzi University to buildspecialized courses on embedded development. The objective was to impressthe students with the charm of embedded software development and introducestudents to the world of embedded development engineering. The courseinvolved 27 experts embedded software lecturers and 54 students from theUniversity. Over the span of two months, through coursework and projects, wehave nurtured a cohort of outstanding students equipped with both theoreticalknowledge and practical skills. This initiative also established a talent trainingand exchange channel between the Company and the University.
Case
Safeguarding Employee Rights
Upholding a "people-oriented" approach and complying with labor-related laws and regulations,Hikvision has formulated the Handbook of Social Responsibility in accordance with SA8000 Standard,in order to safeguard employee rights. The Company has implemented a fair and competitiveremuneration policy and established various platforms to actively listen to employees' voices and
protect their rights and interests.
●Equality and Inclusion
Hikvision is dedicated to cultivating a harmonious and diverse workplace where the legal rights of all employeesare safeguarded. We uphold and respect employees' rights to equal opportunities, freedom of association, freedomof expression, and personal privacy across all levels of management, culture, and practice. Unfair treatment inany form, child labor or force labor is strictly prohibited. We adhere to the laws and regulations of the countriesin which we operate, as well as the International Labor Organization (ILO) Conventions and other internationallyrecognized guidelines. Hikvision Code of Ethics and Business Conduct underscores "respecting and protectinghuman rights" as a fundamental principle of our business. Additionally, we proactively promote human rightsprotection within the organization, ensuring its integration at every stage of our operations. Furthermore, we haveestablished a complaint and reporting channel to promptly address and resolve any concerns from employees.Hikvision opposes all forms of discrimination and upholds an ethos of equality and respect. The Company iscommitted to providing equal opportunities to all candidates, as outlined in our Recruitment ManagementRegulations and other policies. Our Employee Handbook explicitly prohibits workplace discrimination orharassment based on factors such as race, color, religion, gender, age, nationality, heredity, disability, or anyother irrelevant factors to the Company's lawful and legitimate interests. We have established complaint channels,including email, the "Dabai Hotline", and the "My Voice" section on BBS, to ensure the protection of employees'rights and interests. During the Reporting Period, we updated the Hikvision Code of Ethics and Business Conduct,incorporating anti-harassment provisions and updating our hotline services.
During the reporting periodpercentage of employees had joined domesticlabor unions
97.42%
coverage rate of collective contracts100%percentage of female executives
13.79%
number of ethnic minority employees2,421number of employees with disabbility
Group photo of the completion of the special course class jointly built by Hikvision and Hangzhou Dianzi University
During the reporting period, Hikvision activelyengaged in the Employment and Education Projectorganized by the Ministry of EducationSuccessfully completed
projectsinvolving
colleges and universitiesOrganized
university-enterprise "Open Day" events
8485
●
Incentive Compensation
To fully unleash the creativity of our employees, the Company hasestablished a fair, equitable, and competitive compensation system.We prioritize a performance-based compensation structure, where allemployee's total compensation comprises basic salary, performancebonuses, and year-end bonuses. These bonuses are tied to both theCompany's economic performance and individual achievements. Moreover,we offer medium- and long-term incentives such as equity incentive planand innovative business co-investment scheme for employees. Theseinitiatives aim to ignite their entrepreneurial spirit, foster innovation. Bycreating a platform for employees to embark on entrepreneurial endeavorstogether, we promote a culture which both the risks and rewards ofdevelopment are shared to support long-term sustainable corporatedevelopment.
●Enhancing Employee CommunicationAdhering to the principle of "respecting the every voice of employees," Hikvisionhas established various platforms, including the Vision Forum, hotline/emailconsulting, and a series of activities such as the Dialogue with Managers, tofoster open communication and identify/respond to employee needs. In 2023,the Workers' Congress played a pivotal role in safeguarding employee interestsand promoting compliant democratic processes within Hikvision, as part of ourongoing commitment to enhancing employee welfare.
The Company has launched 5restricted stock incentive plansnumber of employees were granted underthe restricted stock plan in 20219,738accounting for approximately
18.5%
of the total number ofemployees at the end of 2021
Hikvision’s Compensation Structure
Dialogue series activities
In 2023, the Company regularly organized the "Conversation with Managers"and "Face to Face with Senior Managers" sessions, inviting managers frombusiness divisions to have direct communication with employees. These dialogueseries activities provided an open platform for all employees, facilitating theexchange of ideas and enhancing the communications. Through sharingexperiences and dialogues, it served as an effective communication channel forthe teams.
Case
8687
Protecting Employee Health and SafetyHikvision continues to invest resources to strengthen safety management, build an occupationalhealth and safety management system, comprehensively standardize employee occupational healthexaminations, create a safe workplace, promote safety awareness among all employees, and strive to
enable every employee to work in a healthy and safe environment.
●Cultivate Safety AwarenessThe Company strives to create a safe atmosphere, collects the needs of safety ofcers of various departmentsand subsidiaries, optimizes and tailors vocational safety courses based on these insights, and develops an internallearning website dedicated to work safety. This platform covers a wide range of topics such as work safety,occupational health, food safety, and re safety. Additionally, we collaborate with external professional institutions,such as introducing the Red Cross first responder training and certification program. This initiative aims toenhance employees' ability to respond to emergencies, instill a culture of safety, and improve overall awarenessand prociency in occupational health and safety. As of the end of 2023, the number of Red Cross rst responderswithin the Company exceeded 600.
●Focus on Occupational HealthThe Company strictly abides by laws and regulations on occupational health such as the Labor Law, the Law onthe Prevention and Control of Occupational Diseases, the Measures for the Administration of Occupational HealthExamination, and regularly entrusts third-party institutions to detect all occupational disease hazards. Employeesexposed to such hazards are provided with protective gear and required to undergo periodic occupational healthexaminations. Meanwhile, we developed a data platform to monitor the occupational health examination processand related data, recording pre-employment, on-the-job, and post-employment occupational health examinationinformation of employees. This enables comprehensive monitoring and management of employee healththroughout the entire process. During the reporting period, Hikvision reported zero cases of occupational diseasesand obtained certication under the ISO 45001 Occupational Health and Safety Management Systems.In addition, the Company places signicant emphasis on the daily health of employees by engaging a top cateringenterprise in China to manage the staff canteen. We provide space with high-quality equipment to cateringsuppliers, ensuring the provision of a balanced diet. Our offerings include healthy light meals, steamed vegetableswith reduced oil and salt, and other kinds of nutritious options. We oversee food procurement and conductinspections of kitchen utensils and ingredients to guarantee food safety, with inspection results public to all. ●Ensure Work Safety
Hikvision prioritizes employee safety in production and adheres to relevant laws and regulations, including theLaw on Work Safety and the Regulation on Work-Related Injury Insurance. We have implemented a robust worksafety management system to comprehensively protect employees' safety. During the reporting period, theCompany introduced the Safety Inspection and Hazard Management Standards, conducted comprehensive hazardscreening to identify potential safety risks, and implemented targeted measures for management and control witha 100% rectication rate.
In the meantime, the Company strives to build a safe workplace, such as, weequip Automated External Debrillators (AEDs) in several locations such as thefront desk, gyms, gates of the campus and other places to enable prompt rescueoperations in emergencies.
Standardized Management
●Hikvision has formulated the Regulationson the Safety Management of HazardousOperation. These regulations outlineprocesses, requirements, and technicalmeasures for managing hazardousoperations, aiming to ensure safety, stabilityand effectiveness throughout the entireprocess
Risk Management and Control
●Hikvision has established a work safetymanagement platform to comprehensivelycarry out hierarchical risk control and hiddendangers investigation in an information-based,streamlined and intelligent manner
Objective Assessment
●Hikvision has established EHS targetsand formulated the Standards forAssessing Work Safety. The Companyhas implemented a system ofaccountability for work safety acrossthe board and standardized work safetymanagement in departments andsubsidiaries
Safety Risk Identication and Management
Red Cross First Responder Training and Certication
8889
Empowering Employee GrowthHikvision recognizes talents as essential for achieving technological innovation and maintaining acompetitive edge in the industry. The Company has established a systematic talents managementmechanism with streamlined promotion channels and formulated comprehensive talent training and
development plans. These initiatives empower employees in all aspects and facilitate their growth
alongside the Company.
In terms of the management team, the Company put forward the Hikvisionleadership model - LIGHT model
*in 2023, providing video courses oninterpreting the model to all managers, with more than 6,000 onlinelearners. Subsequently, the Company gradually organized live sessions inprimary and secondary departments both domestically and internationallyto deepen managers' understanding. Building upon the LIGHT model, theCompany updated the standards of leadership identication and valuation.We implemented standardized measures to enhance the identificationand development of managers' abilities, contributing to improved overallleadership capabilities of the Company. Additionally, the Companyimplemented a tenure system for management personnel and developedtools such as cadre archives, democratic interviews, and post-tenureevaluations to facilitate the orderly rotation of management personnel.
●Smoothing Promotion ChannelsCommitted to the principle of "Fair, Impartial, and Merit-based Employment", the Company provides diversifiedcareer development paths for employees. We have established a qualication system and introduced a new onlineIT system for qualification in 2023 to assist employees in accurately identifying their development orientationwithin the Company. 89% of employees can nd their promotion path in 102 sub-channels of 41 channels in 5categories, namely, R&D, marketing, professions, supply chain and supply chain technical support & professionalservices. This promotion guidance enables employees to continue achieving high performance.
Hikvision's Career Development Paths
A broad platform for employees to display talents: General Manager of theHetian branch, from a warehouse keeper to the GMHikvision provides diversified career development paths for our employees, hoping that allemployees can make their own way towards success.The current General Manager of the Hetian branch, who joined the Xinjiang Business Center in2010, began his career as a warehouse keeper before being promoted to a pre-sales engineer. Hecontinuously developed his skills in sales. Since 2018, He has held the position of General Managerof the Hetian branch, reaching a new pinnacle in his career. Hikvision has consistently prioritizedcreating expansive opportunities for our employees and has dedicated efforts to cultivate theircomprehensive qualities and professional abilities, providing steadfast support for their growth.
Case
＊
LIGHT model includes ?ve dimensions: Large-hearted, Inspire members, Get results, Highly insightful and adapT.
video courses on interpretingLIGHT modelonline learners
6,000+
●Building a Comprehensive Talent Training System
The Company recognizes that employee training is a vital method forenhancing the value of human resources. Building upon the "ADDIE
*"model, the Company has developed various policies including the HikvisionTraining Management Policy, Hikvision Course Management Policy, andHikvision Internal Trainer Management Policy. These policies form thefoundation of a talent training system, comprising a course system, internaltrainer system, and operational management system, aimed at enhancingemployees' professional and general capabilities. Synchronously, we haveestablished the "Hi-Learning" online platform to facilitate and empowerindividual growth through specialized courses and practical knowledge.Meanwhile, the Company focused on identifying typical cases andteaching methods based on best practices, supplementing our regulartraining programs. We immersed ourselves in real business scenarios andmeticulously compiled a total of 61 internal case studies from the Company,including initiatives such as the "Business Capacity EnhancementProject for General Managers in Branches" and the "Practical Project inIndustrial Campus." Through in-depth discussions and practical exercises,participants can enhance their business acumen and capabilities swiftlyand effectively.
＊
ADDIE includes Analysis, Design, Development, Implementation, and Evaluation
During the periodRMB 15.08million wasinvested in employee training
1,534,482training hourswas spent in employee training
9091
Enhancing Employee Care
Hikvision prioritizes the well-being of every employee and strives to be a dependable source ofsupport and a close partner. We have established a comprehensive employee welfare system andregularly organize diverse cultural, sports, and club activities to foster a vibrant corporate culture. We
encourage employees to nd joy in their work and continuously enhance their sense of fulllment,
well-being, and belonging. ●Improving Employee BenetsThe Company places great importance on employees' overall work and life experience, ensuring equal benets forall staff members. We have implemented a comprehensive welfare system comprising four dimensions: allowances,wellness initiatives, enjoyable life, and talent incentives. This system is designed to enhance the sense offulllment, belonging, and well-being among all employees. The company pays 5 insurances and 1 housing fund forall employees (endowment insurance, medical insurance, unemployment insurance, work-related injury insurance,maternity insurance, and housing provident fund), and 100 % of employees are covered by those benefits.Interest-free housing loans will be provided to employees in China who have served continuously for more than 2years (inclusive) and meet the application conditions. Furthermore, we provide various support facilities within thepark, including nursing rooms, health care stations, and kindergartens, with the aim of continually improving theoverall employee experience.
AllowancesHigh-temperature subsidyPhone allowanceWork meal allowance
WellnessSocial insurance,Supplementary commercialinsurance,Annual physical examination 1+Xtailored scheme,Regular free clinics,Gym,Physiotherapy room,Employee assistanceprogram (EAP)
Enjoyable LifeClubs,Staff canteen,Café,Parking lot,Birthday benets,Kindergarten and nursery,Housing loan scheme, Parental leave
Talent IncentivesInnovative business co-investment scheme,Share incentive plan,Year-end bonus,GoldenBrick Award
Hikvision builds a health service station in the Company toprovide "one-stop" health services to employeesIn 2023, to address the medical needs of employees, the Company collaboratedwith the Binjiang District Health Bureau of Hangzhou City and the XixingCommunity Healthcare Center to establish the first health service stationin the corporate campus in Zhejiang Province. This initiative, known as theHikvision Health Station, aligned with the policy of establishing a "hierarchicalmedical system" and involved renovating an existing Company building. TheCompany provided the venue and constructed internal facilities, while theXixing Community Healthcare Center was responsible for operating the station.The station was equipped with high-quality facilities tailored to the Company'srequirements, offering comprehensive "one-stop" health services includingfamily doctor services, medical records management, health education, andreferral service appointments. By providing employees with more convenienceand access to healthcare services, the station enhances their overall sense ofwellbeing and happiness.
In addition, the Company has developed an attendance management and leavemanagement regulation in accordance with the laws and regulations of thecountries in which it operates, with specific circumstances in consideration.These systems standardize working hours and ensure that employees receiveadequate rest. During the reporting period, there is no need for a doctor'scertificate for two-day or shorter sick leave, reflecting the Company'scommitment to prioritizing employee health and well-being.
Case
Employee Welfare System
9293
●Organizing Recreational Activities
The Company enriches employees' lives by actively organizingvarious recreational activities and encourage employees to start orjoin interests clubs. Through collaborative efforts, we cultivate arelaxed and joyful corporate culture characterized by mutual trustand support, thereby enhancing employees' sense of belonging andhappiness.
We have basketball, football, volleyball, badminton, table tennis, and swimmingclubs and organize internal and external contests from time to time to attractsports lovers and enhance employees' physical health
Our chess, music, dancing, lm & TV, and Hanfu clubs have added artistic vibes to the company
A Series of Activities in Women's DayCorporate Culture Project “Stories of Hikers”
9495
Partner Responsibility
Honoring the strategy of "opening-up and mutual support", Hikvision maintains asound collaborative relationship with our partners. We foster a heightened senseof responsibility among our partners and encourage active engagement in socialresponsibility initiatives. Together, we pursue mutual development and play aleading role in our respective fields. Leveraging our technological advantages, wesupport suppliers and industry partners in accessing superior resources, enhancingcapabilities, promoting sustainability, and generating opportunities for shared growth.
Key performance in 2023Responsible Supply Chain:
100% of new suppliers were evaluated using environmental andsocial criteriaThere were no major environmental and social impact events fromsuppliersConict minerals due diligence covered 100% of new suppliersand the response rate reached 100%Attendance of supplier training is more than 12,785 times andattendance of distributor training is more than 293,309 timesContributing to Industry Ecosystem:
Published 8 papers and over 20 standards with colleges anduniversities
Contribution to UN SDGs
9697
Responsible Supply Chains
Applying the sustainability philosophy across the entire supplier management process, Hikvisioncomprehensively evaluates, identies, and manages suppliers' performance in ESG issues includingconict minerals, business ethics, safety, environmental protection, and labor practices. Westandardize suppliers' social responsibility behavior to mitigate their negative impacts on societyand the environment. Simultaneously, we assist industry partners in achieving multi-dimensionalsound development through utilization of cutting-edge technology, with the goal of establishing a
responsible supply chain. ●Enhancing Supplier ManagementThe Company has formulated and implemented regulations such as the Standards of Supplier Development and SelectionManagement, and the Procurement Framework Agreement, to continuously enhance supplier management. We adhere totransparent procurement. All suppliers are required to strictly comply with the Supplier Code of Ethics and Business Conduct,and Supplier Corporate Social Responsibility Commitment and sign the Supplier Integrity Agreement. These documents extendHikvision's compliance activities to the supply chain.Our Supplier Corporate Social Responsibility Commitment species regulations pertaining to business ethics and labor rights.In terms of business ethics, the Company requires suppliers to operate with integrity, and prohibits any form of bribery andcorruption. Upstream suppliers are informed of the Responsible Business Alliance Code of Conduct and are required to act inaccordance with it. The Company makes efforts to identify and verify risks in suppliers and imposes punishments on suppliersinvolved in bribery and corruption cases. The punishments include but not limited to imposing a penalty, putting on a blacklistand putting an end to cooperation. As for employee interests, the Company prohibits suppliers from forced labor, slave labor, andchild labor, mandates the respect for employees' rights, including outsourced employees, to a safe and healthy workplace. Thesemeasures aim to prevent any supplier behavior that violates employee rights or fails to comply with regulations. Meanwhile, theCompany supports localized procurement and endeavors to establish partnerships based on mutually benecial cooperation.
●Managing Conict MineralsThe Company places signicant emphasis on conict minerals. Our ProcurementManagement Committee is tasked with strategy development and risk monitoring inthis regard. We require all suppliers to sign the Procurement Framework Agreementto ensure that the materials they provide to Hikvision are DRC Conflict-Free.During the reporting period, a new statement of materials was developed for ourinternal traceability management, including tracking the brand and the place oforigin of second-tier suppliers of raw materials, and managing and saving relatedinformation.
Supplier accessThe Company assesses suppliers' certications, including ISO 45001 OccupationalHealth and Safety Management Systems, ISO 14001 Environmental ManagementSystem, and ISO 27001 Information Security Management System. We prioritizesuppliers that demonstrate a commitment to environmental conservation, socialresponsibility, human rights, and sustainable development, according to relevantqualications.Supplier assessmentThe Company makes quarterly and annual assessment plans in accordance withits Management Regulation on Supplier Rating. These assessments cover variousaspects including quality, cost, technology, delivery, Hazardous substances free,and social responsibility on a quarterly basis, and environmental, health, and safetyaspects annually. Suppliers are categorized into four grades including Grade A,Grade B, Grade C, and Grade D, with each grade subject to different managementapproaches. We offer coaching to suppliers with lower grades to address theirissues until they are rectied.Supplier exitThe Company will eliminate suppliers with signicant issues in quality, delivery, andenvironment, or social irregularities.
Conict minerals management and control systemIn accordance with the Due Diligence Guidance for Responsible Supply Chainsof Minerals from Conflict-Affected and High-Risk Areas formulated by theOrganization for Economic Co-operation and Development (OECD), the Companyhas established a conflict minerals management and control system for mineralresources and products, including tantalum, tin, gold and tungsten. This systemconsists of five key steps including establishment of company risk managementsystems, identification and assessment of risks within the supply chain,implementation of strategies to address identified risks, third-party assessmentsand audits of smelter or refiner in the supply chain with reference to theResponsible Minerals Initiative's (RMI) independent third-party verication system,annual report on supplier due diligence process and results. We systematicallyconduct due diligence on conflict minerals across our supply chain. During thereporting period, we had no violations caused by conict minerals. We also passedthe assurance of enterprises requested by the RMI, such as Shenzhen JWIPC Co.,LTD, and COMPUMAX COMPUTER S.A.S., an Argentina enterprise, and gainedtheir recognition.
During the reporting period
Supplier Corporate Social ResponsibilityCommitment signing rate
100%
number of suppliers with major environmental andsocial impact events
signing rate of Supplier Integrity Agreement inprocurement businesses
95.45%
the proportion of spending on local suppliers22%
During the reporting periodthe coverage of conict minerals due diligence onnew suppliers was100%
the response rate reached100%
Conict Minerals Management and Control Mechanism
9899
Enhancing managementThe Company distributes Conict Minerals Questionnaires, Instructions for Filling the Conict Minerals ReportingTemplate (CMRT), and the Declaration of Metal Conflict-Free to mineral suppliers through the SRM (SupplierRelationship Management) platform. We provide detailed guidance to suppliers on completing the reportingforms and conduct thorough investigations into the compliance and legality of materials within the supplychain. Additionally, we offer training sessions on conict minerals for suppliers to enhance their understandingof responsible procurement practices, enabling them to better manage issues related to conflict minerals andminimize the potential for materials sourced from conict-affected areas.Emergence response mechanismA well-established emergency mechanism for conict minerals management is in place in the Company to dealwith possible emergencies.
●
Empowering Supply ChainsThe Company is committed to fosteringa mutually beneficial supply chain.Leveraging the prominent position inthe industry, the Company establisheschannels for diverse exchanges andlearning, facilitating collaborationamong upstream and downstreampartners. Through precise empowermentinitiatives spanning various dimensionssuch as quality, products, technologies,and marketing, we aim to optimizethe entire supply chain, invigoratethe industry, and generate greatervalue. During the reporting period, theCompany empowered suppliers throughvarious channels including the suppliertraining platform, Hikvision SMBGE-commerce, Supplier Conference,workshops, and Digital MarketingForum.
In October 2023, Hikvision held the Digital Marketing Forum themed "Internet towards Digital andIntelligent Future", sharing the trend and cases of digital marketing
Open cooperation on all fronts
Contributing to Industry EcosystemHikvision collaborates with industry partners by sharing cutting-edge technologies, diverse informationand platforms. We actively engage with a broader network of industry partners to harness the collectivestrength of the industry. By energizing our ecosystem partners and fostering complementary advantages,
we strive to cultivate a fair, symbiotic, and win-win industry ecosystem. Through these efforts, we help
enhance industry resilience and drive shared progress within the sector.
●Open CooperationThe Company upholds the "customer-centered" philosophy, and adheres to an innovation-driven developmentstrategy. We prioritize technology empowerment and enhance resource support our partners in their research andefforts in technology, products, solutions, services, and sales. This approach aims to foster industrial collaboration,facilitating mutual benet and creating a win-win situation for all stakeholders.
Products empower intelligent management in the corporate campus
Hikvision cooperated with a partner in Shandong and provided various technologies to this partner,including video perception, video AI, integrated security, and componential development. Weassisted it in swiftly establishing a basic software framework tailored to its unique business needsand characteristics, leading to the development of a customized campus management system.Through this cooperative empowerment initiative, Hikvision not only enhanced the safety andreliability of the partner's software products but also improved its product development capabilitiesand delivery efficiency. In 2023 alone, the Company supported the implementation of over 20projects for this partner, resulting in higher efficiency and reliability of operation and safetymanagement within the campus.
Case
Conict minerals emergency response mechanism
100101
●Support for Industry-University-Research Cooperation
The Company continues to expand its collaborations with top universities, colleges, and researchinstitutes, establishing an industry-university-research cooperation system characterized by mutualsupport and development. Through this partnership, universities and enterprises collaborate closely,resulting in mutual benets. The joint efforts allow us to conduct research projects, launch majornational and local projects, and hold contests, thus improving the practicality and efficiency ofuniversity and professional talent. In addition, we organize various activities, such as technologysalons, cutting-edge summit information sharing, and lectures, to strengthen technical exchangesand sharing.At present, Hikvision works closely with more than 10 top universities at home and abroad,including Peking University, and Zhejiang University, among others. We have built built several jointlaboratories, and launched 57 various research projects. During the Reporting Period, the Companypublished 8 papers and over 20 standards with colleges and universities, realizing industry-university-research cooperative innovation on all fronts, and transforming theoretical innovations intoactual productivity.
Hikvision-Beihang University: Joint laboratory of intelligentsensing and computingHikvision built the Joint Laboratory of Intelligent Sensing and Computing withthe Beihang University for cooperation on areas including multimodal intelligentsensing and big data analysis. In a joint effort, 6 joint research topics werelaunched and more than 10 academic papers were published. The Companyand the University shared the second prize of National Science and TechnologyProgress Award and jointly built a national innovation platform for integration ofarticial intelligence, industry and education.
Case
Honors and Awards in 2023
In 2023, the rst Qizhi Cup Machine Vision Design Competition garnered signicant attention, attracting participation from over 300 research teams representing more than160 universities and colleges nationwide. These participants brought forth innovative applications and technological breakthroughs for our Vision Master algorithm platform
The project "Application of Large-Scale Video Intelligent ProcessingTechnology Featuring Coordination Between Feature Stream andModel Stream in City Transportation" was awarded therst prize in the Science and Technology Award from the Chinese
Institute of Electronics
The project "Key Technologies for Path-level CollaborativeManagement and Control and Continuous Precision Perceptionof Space and Time of Vehicles on Urban Roads" was awarded the
rst prize in the Science and Technology Invention Award from the
China Intelligent Transportation Systems AssociationThe project "Research and Application of Key Technologies forMonitoring, Assessing, and Collaborative Management of Trafc
Flow in Trafc Accidents" was awarded therst prize in the Science and Technology Award from the China
Communications and Transportation Association
102103
●
Industrial Education
Together with its ecosystem partners, Hikvision works to pave the way for digital transformation. Continuousefforts have been devoted to empowering ecosystem partners, providing professional knowledge, industry trends,and market information. Through the Hikvision SMBG E-commerce APP and various new media platforms, as wellas thematic activities such as short video and live streaming, the Company released more than one thousandpieces of materials, helped partners conduct nearly 8,000 sessions of live streaming, and posted over 10-thousandshort videos. We help customers to realize digital transformation through our joint exploration for an onlinebusiness mode.
At the same time, Hikvision complies related knowledge and its experience into courses and cases, and providestraining on professional skills and certification services to its ecosystem partners through online and offlinetraining channels, in order to help partners to have a good grasp of operation, maintenance, implementation ofvarious software and hardware products. This initiative enables partners to reduce training cost, increase employeeproductivity and ability.During the reporting period, the Company introduced 11 certication channels covering 9 main production lines forpartners pursuing digital transformation of small and medium-sized enterprises. A total of 156 certication classwere opened, and more than 2,300 ecosystem partners were well trained, over 1,800 of which were successfullycertied.
Amazing cameraIn order to help deepen application of intelligent IoT, we launch an official account named as“Amazing Camera”, educating the public about video perception ability in various industries.With the help of new media platforms such as Weixin Channels, and Douyin, “Amazing Camera”is characterized by short videos about cameras, featuring cutting-edge technology, innovativeand interesting interpretation, and practical cases. The column introduces emerging videoperception technology to the public, inspires various industries to use video perception to protectenvironment, and helps enterprises to reduce emission and enhance efficiency, and improveworking environment, thus contributing to the application of scientic and technological advancesand stimulating customer interest in technology products.
Case
●Industry Exchange
By organizing various activities such as seminars, salons, cutting-edge information sharing, and lectures, theCompany provides more communication channels for the industry. We facilitate the exchange of cutting-edgeinsights and exemplary experience concerning technologies, products, management, and other relevant areas,fostering a conducive industry atmosphere marked by mutual learning and improvement. Continuously broadeningour horizons, we enhance our understanding and sensitivity to industry dynamics, empowering ourselves to betteradapt and respond to future challenges. During the reporting period, the Company carried out several lectureson HRI, in which teachers and scholars from domestic top universities were invited for technology exchanges andsharing.
V Club 2.0 goes onlineThe V Club developed by Hikvision is a communication platform for machinevision developers and technophiles. Our goal is to offer one-stop services tocustomers, includingaccess to resources and tools, engineer certification,technical support, knowledge sharing, practical applications, and competitions.In November 2023, the upgraded version of V Club - V Club 2.0 went online.Within V Club 2.0, the V Forum serves as a platform for machine vision andmobile robot experts to convene and tackle technical challenges, fosteringscientific and technological advancement. Additionally, V College featuresa series of instructional videos, including "Words from Leading Figures" and"Technology Lectures", which offer insights into the underlying technologiesof products and provide guidance on their usage, thereby reducing entrybarriers for the products. This feature has facilitated greater awareness andunderstanding of cutting-edge technologies among a broader audience.
Case
During the reporting period
V Club boasted registered customers27,000recorded page visits
millionan average page views per day
Scan the QRcode to learn more
Amazing camera account
*HRI: Hikvision Research Institute*V Club: https://www.v-club.com/home
104105
Community Responsibility
A thriving community plays a pivotal role in fostering the sustainable operationof a company. The Hikvision STAR Program leverages technology to advancethe implementation of non-profit initiatives across multiple regions and diversesectors. Concurrently, we incentivize our employees to engage in charity causeas volunteers, embodying our commitment to giving back to the community anddemonstrating our social responsibilities.
Key performance in 2023
Hikvision STAR Program:
Since its rst launch in 2020, the STAR Program has establishedpartnerships with 25 NGOs. These partnerships have facilitatedprojects spanning 21 cities across 10 provinces in China, as wellas several regions overseasContributing to Community Development:
By donating equipment and funds, and providing technologicaltraining courses, we help the development of communities athome and abroadEmployees actively engage in volunteer services, with about 500employees participating in various volunteer activities, collectivelydedicating over 20,000 service hours
Contribution to UN SDGs
106107
Hikvision STAR ProgramHikvision harnesses technology to serve the public welfare, making technology warmer. We have
launched the Hikvision STAR Program for four consecutive years, and released the Guide onSTAR Program for Social Good 2023. This initiative globally solicits and selects NGO partners andtechnology collaborators, and evaluate project compliance, feasibility, and sustainability. Throughthe provision of technical proposals and industry-leading innovative technologies and products, wecollaborate with partners on projects such as biodiversity monitoring and protection, environmentalmonitoring and preservation, digital rural development, and cultural heritage and preservation.
Together, we promote the advancement of public welfare initiatives.
Opening a new window to nature and meeting wonderfulcreaturesIn the UK, Kate MacRae, a passionate nature enthusiast, utilizes various imagingequipment from Hikvision to capture crisp images of wildlife in her gardenand the surrounding areas. She posted photos and livestreamed on her socialmedia account "WildlifeKate", revealing the beauty of creatures and captivatingscenery. Through her efforts, she opens up a new avenue for people to connectwith nature, inspiring more individuals to explore the natural world. As a result,an increasing number of people are drawn to nature and actively participate inconservation efforts.
Saving coral, saving beautiful underwater worldThe coral reef, often referred to as the rainforests of the sea, serves as avital component of marine ecosystems. Daya Bay, one of the largest bays inGuangzhou Province, features a diverse array of corals along its meanderingcoastline stretching 11 kilometers. However, environmental changes and humanactivities have led to a significant decline in coral coverage within Daya Bay.In 1961, coral coverage stood at 76.4%, but by 1991, it had plummeted to just20%.
In August 2023, Hikvision collaborated with its partners to monitor the growthand changes of corals in the sea area of Daya Bay in Shenzhen. Additionally, theCompany contributed to coral protection and education activities by providingscientic data and introducing the signicance of coral reef preservation to thepublic through the collection of neighboring biodiversity data. These concertedefforts help minimize damage to the waters of the Daya Bay and facilitate thenatural recovery of coral reefs.
Case
Case
Scan the QR code for more information about Hikvision STAR Program
“Hikvision's video equipmentis a fantastic assistant to me,helping me better presentmagical moments of wildlife.”
——Kate MacRae
Owls captured by Kate MacRae
Coral photographed
Scan the QRcode to learn more
108109
Protecting biodiversity in Africa with video technology
Africa is famous for its wide variety and abundance of wild animals, most ofwhich are found in South Africa and Kenya. In 2023, Hikvision initiated a wildlifemonitoring project in collaboration with Africam. As part of this project, weinstalled video monitoring systems in reserves and national parks across SouthAfrica and Kenya. These systems enable real-time monitoring and reporting onthe status of wild animals such as black rhinoceroses, white rhinoceroses, lions,and other rare animals. Through stringent measures to prohibit poaching andtrespassing, we actively support Africam and NGOs in their efforts to safeguardthe ecological environment and preserve biodiversity in Africa.
Hikvision remains committed to actively engaging in public welfare initiatives through the applicationof technology. We provide support by supplying AIoT technology and products, as well as relevantempowerment training to non-profit institutions. By leveraging our technology, knowledge, andexperience, we extend assistance to individuals and organizations in need, thereby fostering a betterfuture.In biodiversity monitoring and protection, Hikvision has amassed considerable experience insafeguarding various species of wildlife such as the bar-headed goose, pandas, river dolphins,rhinoceroses, and pangolins. We contribute to the prosperity and preservation of these species.In environmental monitoring and protection, we collaborate with partners to conduct research onclimate change and monitor water quality. This includes monitoring glacial lakes in Mount Everestand drinking water sources in the upstream areas of the Huangpu River, ultimately contributing toenvironmental enhancement. In digital countryside development, Hikvision delves into rural areas toassist residents in increasing their income and enhancing rural education. This initiative facilitatesbalanced urban-rural development. In cultural inheritance and protection, Hikvision is committed topreserving centuries-old buildings and cultural treasures, such as the Tan Mansion in Lishui City andthe Longmen Grottoes. These endeavors contribute to the continuation and promotion of humancivilization with a history spanning thousands of years.
Case
Wildlife captured
Contributing to Community DevelopmentHikvision's overseas institutions focus on and contribute to local development. We support thedevelopment of communities in many countries such as Cambodia and Morocco through organizingactivities to popularize knowledge of safety precautions and self-protection, raising the security
awareness of local residents.
In 2023, Hikvision donated meeting boards, advertising machines, laptops and other equipment, to upgradethe surveillance systems of AFESIP Cambodia and ensure internal operational security
Scan the QRcode to learn more
110111
In addition, the Company's employees actively engage in volunteerservices. In 2023, in collaboration with non-profit institutions such aspublic service centers, charity foundations, and Charity Angel in ZhejiangProvince, we organized a series of initiatives to offer both financial andemotional support to marginalized groups, including left-behind childrenin mountainous regions, elderly individuals without family, reghters, andfrontline construction workers.
During the reporting periodnumber of employees participating involunteer services
+collectively dedicating service hours
20,000+
Employee volunteer activities in 2023
Appendix 1: KPI TablesKey Operating Performance
Key Environmental Performance
KPIUnit202120222023Direct economic valueRMB 1,000,00081,420.183,166.389,339.9Cash dividendRMB 1,000,0008,489.96,554.88,397.5Tax paidRMB 1,000,0006,447.35,947.06,494.6KPIUnit202120222023
Energy UseUnleaded gasolineTon606.1282.4463.7DieselTon39.931.335.0Natural gas10,000 cubic meters227.2195.6247.2Purchased electricityMWh225,951.1223,072.1283,433.1
Including: Photovoltaicpower
MWh8,994.34,508.312,533.7
Energy ConsumptionTotal energy consumption
Ton of standard coalequivalent
31,480.030,253.236,193.3Direct energyconsumption
Ton of standard coalequivalent
3,710.62,837.63,452.8Indirect energyconsumption
Ton of standard coalequivalent
27,769.427,415.632,740.5Energy consumptionintensity
Ton per million revenue(RMB)
0.390.360.41Greenhouse Gas EmissionsTotal emissions (Scope 1 +Scope 2)
Ton of carbon dioxideequivalent
157,621.0159,454.1157,687.7Scope 1
Ton of carbon dioxideequivalent
6,857.05,153.96,838.9Scope 2
Ton of carbon dioxideequivalent
150,764.0154,300.2150,848.8Emission intensity
Ton of carbon dioxideequivalent per millionrevenue (RMB)
1.941.921.77Water ResourcesTotal withdrawalTon1,730,970.82,336,502.72,598,300.3Municipal waterTon1,721,527.72,326,204.72,584,328.7Underground water Ton9,443.010,298.013,969.2Surface water (overseasoperations only)
Ton0.0502.4Total dischargeTon-1,991,264.42,253,223.0Total consumptionTon-276,319.6345,077.3Water withdrawal intensity
Ton per million revenue
(RMB)
21.2628.0929.08
112113
Packaging Materials
Total useTon54,950.443,857.451,236.7
PlasticsTon7,893.17,471.48,762.2CartonsTon38,477.433,164.037,413.9WoodTon2,916.43,035.34,865.1Metal boxesTon166.5186.7195.5Packaging material useintensity
Ton per million revenue(RMB)
0.670.530.57Recyclable WasteTotalTon18,129.417,708.418,021.4PlasticsTon3,865.53,295.32,901.9WoodTon1,342.31,271.71,251.4PaperTon10,093.69,432.79,474.9MetalTon2,226.82,640.72,424.9Others (wiring harness,oiled paper, etc.)
Ton601.21,067.91,968.4Recyclable waste intensity
Ton per million revenue
(RMB)
0.220.210.20Non-Recyclable WasteTotalTon6,323.17,546.07,527.0
Kitchen wasteTon1,668.52,362.42,492.9Of?ce wasteTon2,083.13,141.32,661.8General industrial wasteTon2,571.52,042.32,372.2Non-recyclable wasteintensity
Ton per million revenue(RMB)
0.080.090.08Hazardous WasteTotalTon761.5723.1884.2Hazardous WasteIntensity
Ton per million revenue(RMB)
0.0090.0090.01Exhaust EmissionsNOxTon-0.330.1SOxTon-00.001PMTon-2.937.35
●The time scope of environmental data is from January 1st 2023 to December 31st 2023; the organizational scope of environmental data includes Hikvision's domesticresearch institutes, Binjiang Phase I, Phase II, Phase III and Phase IV (including Binjiang manufacturing base and ofce areas), Tonglu manufacturing base, Chongqingmanufacturing base, India manufacturing base, Brazil manufacturing base, all domestic marketing centers (covering 32 provinces, autonomous regions and municipalities)and all international marketing centers overseas (covering 61 countries and regions); by use scope, environmental data is roughly divided into two categories: ofceoperation and manufacturing.
●Intensity is calculated using the total amount in 2023 divided by the Company's revenue for the year, in millions of RMB.
●Direct Greenhouse gas emissions (Scope 1) are from the use of unleaded gasoline, diesel and natural gas. The calculation of Hikvision's Scope 1 emissions refers tothe Guidelines for Accounting Methods and Reporting of Greenhouse Gas Emissions from Industrial Enterprises and Other Industries (Trial) and the Guidelines for thePreparation of Provincial Greenhouse Gas Inventories (Trial) by the National Development and Reform Commission of the People's Republic of China; and the calculationof Scope 1 emissions overseas refers to the EIB Project Carbon Footprint Methodologies.
●Indirect Greenhouse gas emissions (Scope 2) are from the use of purchased electricity (Non-renewable energy power part). The calculation of Hikvision's Scope 2emissions in 2023 is sourced from the Notice on the Management of Greenhouse Gas Emission Reporting of Enterprises in the Power Generation Industry from 2023 to2025 released by the Ministry of Ecology and Environment of the People’s Republic of China, and domestic Scope 2 emissions in 2021 and 2022 are calculated based onthe 2012 Average CO2 Emission Factors of China's Regional Power Grids; and the calculation of Scope 2 emissions overseas refers to the EIB Project Carbon FootprintMethodologies.
●Total energy consumption is calculated in tons of standard coal, with reference to the National Standard of the People's Republic of China GB/T 2589-2020 GeneralPrinciples for Calculation of the Comprehensive Energy Consumption.
Notes on Key Environmental Performance:
Key Social PerformanceKPIUnit202120222023
EmploymentNumber of employeesworldwide
/52,75258,28458,544
Occupational Health and SafetyCoverage rate of safetyeducation
%100100100Number of occupationaldiseases
/000
Training and EducationTotal investment inemployee training
RMB 10,0001,781.21,722.61,508.0Training hours peremployee
hour/person34.232.126.2
Innovation and R&DInvestment in R&DRMB 1,000,0008,2529,81411,393Number of new patents/1,5072,1941,884Number of new softwarecopyrights
/256181166Number of new trademarks/33730054
Supply Chain ManagementNew suppliers selectedusing environmentalcriteria
%100100100New suppliers selectedusing security criteria
%100100100Distributors' trainingattendance
120,240 (number ofdistributors)
82,991 (number ofdistributors)
293,309
114115
Appendix 2: GRI Content Index-- "Refer to GRI Standard"
Statement of useHikvision has reported the information cited in this GRI content index
for the period from January 1st, 2023 to December 31st, 2023 withreference to the GRI Standards.GRI 1 usedGRI 1: Foundation 2021GRI StandardDisclosureChapter IndexPage NumberGRI 2: General Disclosures 2021The organization and its reporting practices2-1Coverage rate of safety education About Hikvision 022-2Entities included in the organization’ssustainability reporting
About This Report1202-3Reporting period, frequency and contact point About This Report1202-4Restatements of informationKPI Tables111-113Activities and workers2-6
Activities, value chain and other businessrelationships
Stakeholder Engagement
Responsible Supply Chains96-98
Contributing to Industry Ecosystem99-1032-7Employees
Safeguarding Employee Rights83-85
Key Social Performance113Governance2-9Governance structure and compositionStrengthening Corporate Governance34-352-10
Nomination and selection of the highestgovernance body
Strengthening Corporate Governance34-352-12
Role of the highest governance body inoverseeing the management of impacts
Strengthening Corporate Governance34-352-13
Delegation of responsibility for managingimpacts
Strengthening Corporate Governance34-352-14
Role of the highest governance body insustainability reporting
About This Report120Strategy, policiesand practices2-22
Statement on sustainable developmentstrategy
Message from the Management03
ESG Management Philosophy and
Framework
2-23Policy commitments
Strengthening Corporate Governance34-35
Building Compliance Ecosystem38-41
Strengthening Risk Management36-37
Safeguarding Employee Rights83-85
Responsible Supply Chains96-98
2-24Embedding policy commitments
Strengthening Corporate Governance34-35Building Compliance Ecosystem38-41Strengthening Risk Management36-37Safeguarding Employee Rights83-85Responsible Supply Chains96-982-25Processes to remediate negative impactsRespecting and Protecting Human Rights44-452-26Mechanisms for seeking advice and raising
concerns
Building Compliance Ecosystem38-412-27Compliance with laws and regulations
Hikvision had no signi?cant non-
compliance during the reporting period
and did not result in ?nes or non-?nancial
penalties.2-28Membership associationsESG Management05Stakeholder Engagement2-29Approach to stakeholder engagementStakeholder Engagement072-30Collective bargaining agreementsSafeguarding Employee Rights83-85GRI 3: 2021 Material Topics 20213-1Process to determine material topicsMaterial Topics063-2List of material topicsMaterial Topics 06EconomyGRI 201: Economic Performance 20163-3Management of material topicsBuilding Compliance Ecosystem38-41201-1Direct economic value generated and
distributed
Key Operating Performance111201-3De?ned bene?t plan obligations and other
retirement plans
Enhancing Employee Care90-93201-4Financial assistance received from governmentKey Operating Performance111GRI 203: Indirect Economic Impacts 20163-3Management of material topicsTech for Good12-31
Community Responsibility104-110203-1
Infrastructure investments and servicessupported
Tech for Good12-31
Community Responsibility104-110203-2Signi?cant indirect economic impacts
Tech for Good12-31
Community Responsibility104-110GRI 204: Procurement Practices 20163-3Management of material topicsResponsible Supply Chains96-98204-1Proportion of spending on local suppliersResponsible Supply Chains96-98GRI 205: Anti-corruption 20163-3Management of material topicsAdhering to business ethics42-43
116117
205-1Operations assessed for risks related to corruptionAdhering to Business Ethics42-43205-2Communication and training about anti-corruption
policies and procedures
Adhering to Business Ethics42-43GRI 206: Anti-competitive Behavior 2016
3-3Management of material topicsAdhering to Business Ethics42-43206-1Legal actions for anti-competitive behavior, anti-
trust, and monopoly practices
Adhering to Business Ethics42-43GRI 207: Tax 20193-3Management of material topicsBuilding Compliance Ecosystem38-41207-1Approach to tax Building Compliance Ecosystem38-41207-2Tax governance, control, and risk managementBuilding Compliance Ecosystem38-41207-3
Stakeholder engagement and management ofconcerns related to tax
Stakeholder Engagement7
Building Compliance Ecosystem38-41207-4Country-by-country reportingBuilding Compliance Ecosystem38-41EnvironmentGRI 301: Materials 20163-3Management of material topicsGreen Products67-70301-1Materials used by weight or volumeKey Environmental Performance111-112GRI 302: Energy 20163-3Management of material topicsGreen Production71-74302-1Energy consumption within the organizationKey Environmental Performance111-112302-3Energy intensityKey Environmental Performance111-112302-4Reduction of energy consumption
Green Production71-74
Green Operation75-76302-5Reductions in energy requirements of products
and services
Green Products67-70GRI 303: Water and Effluents 20183-3Management of material topics
Green Production71-74
Green Operation75-76303-1Interactions with water as a shared resource
Green Production71-74
Green Operation75-76303-2Management of water discharge-related impacts
Green Production71-74
Green Operation75-76303-3Water withdrawal Key Environmental Performance111-112303-4Water discharge Key Environmental Performance111-112
GRI 304: Biodiversity 2016
3-3Management of material topics
Tech for Environment17-20Community Responsibility104-110304-2
Signi?cant impacts of activities, products andservices on biodiversity
Tech for Environment17-20Community Responsibility104-110GRI 305: Emissions 20163-3Management of material topicsGreen Management64-66305-1Direct (Scope 1) GHG emissions Key Environmental Performance111-112305-2Energy indirect (Scope 2) GHG emissionsKey Environmental Performance111-112305-4GHG emissions intensityKey Environmental Performance111-112305-5Reduction of GHG emissionsGreen Production71-74305-7Nitrogen oxides (NOx), sulfur oxides (SOx), and
other signi?cant air emissions
Key Environmental Performance111-112GRI 306: Effluents and Waste 20203-3Management of material topicsGreen Production71-74306-1Waste generation and signi?cant waste-related
impacts
Green Production71-74306-2Management of signi?cant waste-related
impacts
Green Production71-74306-3Waste generatedKey Environmental Performance111-112306-5Waste directed to disposalKey Environmental Performance111-112GRI 308: Supplier Environmental Assessment 20163-3Management of material topicsResponsible Supply Chains96-98308-1New suppliers that were screened using
environmental criteria
Key Social Performance113308-2Negative environmental impacts in the supply
chain and actions taken
Key Social Performance113SocietyGRI 401: Employment 20163-3Management of material topicsSafeguarding Employee Rights83-85401-2Bene?ts provided to full-time employees that
are not provided to temporary or part-timeemployees
Enhancing Employee Care90-93401-3Parental leaveEnhancing Employee Care90-93GRI 402: Labor/Management Relations 20163-3Management of material topicsSafeguarding Employee Rights83-85
303-5Water consumptionKey Environmental Performance 111-112
118119
403-3Occupational health servicesProtecting Employee Health and Safety86-87403-4Worker participation, consultation, and
communication on occupational health andsafety
Protecting Employee Health and Safety86-87403-5Worker training on occupationalProtecting Employee Health and Safety86-87403-6Promotion of worker healthProtecting Employee Health and Safety86-87403-7Prevention and mitigation of occupational health
and safety impacts directly linked by businessrelationships
Protecting Employee Health and Safety86-87403-8
Workers covered by an occupational health andsafety management system
Protecting Employee Health and Safety86-87403-9Work-related injuries
Protecting Employee Health and Safety86-87
Key Social Performance113403-10Work-related ill health
Protecting Employee Health and Safety86-87
Key Social Performance113
GRI 404: Training and Education 2016
3-3Management of material topicsEmpowering Employee Growth88-89404-1Average hours of training per year per employee
Empowering Employee Growth88-89
Key Social Performance113404-2Programs for upgrading employee skills and
transition assistance programs
Empowering Employee Growth88-89404-3Percentage of employees receiving regular
performance and career development reviews
Empowering Employee Growth88-89
GRI 405: Diversity and Equal Opportunity 20163-3Management of material topics
Strengthening Corporate Governance34-35
Safeguarding Employee Rights83-85405-1Diversity of governance bodies and employees
Strengthening Corporate Governance34-35
Safeguarding Employee Rights83-85GRI 406: Non-discrimination 20163-3Management of material topicsSafeguarding Employee Rights83-85GRI 407: Freedom of Association and Collective Bargaining 20163-3Management of material topicsSafeguarding Employee Rights83-85
GRI 403：Occupational health and safety 20183-3Management of material topicsProtecting Employee Health and Safety86-87403-1Occupational health and safety management
system
Protecting Employee Health and Safety86-87403-2Hazard identification, risk assessment, and
incident investigation
Protecting Employee Health and Safety86-87
GRI 414: Supplier Social Assessment 2016
3-3Management of material topicsResponsible Supply Chains96-98414-1
New suppliers that were screened using socialcriteria
Responsible Supply Chains96-98Key Social Performance113414-2Negative social impacts in the supply chain and
actions taken
Responsible Supply Chains96-98GRI 416: Customer Health and Safety 20163-3Management of material topics
Delivering Quality Services51-53
Guaranteeing Product Quality54-56
Network and Information Security57-59416-1
Assessment of the health and safety impacts ofproduct and service categories
Delivering Quality Services51-53
Guaranteeing Product Quality54-56
Network and Information Security57-59416-2
Incidents of non-compliance concerning thehealth and safety impacts of products andservices
There is no violations involving the health
and safety impact of Hikvision's products
and services during the reporting period.
GRI 417: Marketing and Labeling 20163-3Management of material topicsBuilding Compliance Ecosystem38-41417-1Requirements for product and service
information and labeling
Building Compliance Ecosystem38-41417-2Incidents of non-compliance concerning product
and service information and labeling
Building Compliance Ecosystem38-41417-3Incidents of non-compliance concerning
marketing communications
Building Compliance Ecosystem38-41GRI 418: Customer Privacy 20163-3Management of material topicsNetwork and Information Security57-59
GRI 408: Child Labor 20163-3Management of material topicsSafeguarding Employee Rights83-85
GRI 409: Forced or Compulsory Labor 20163-3Management of material topicsSafeguarding Employee Rights83-85
GRI 413: Local Communities 20163-3Management of material topics
Tech for Good12-31
Community Responsibility104-110413-1
Operations with local community engagement,impact assessments, and development programs
Tech for Good12-31
Community Responsibility104-110
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Overview
This Report offers comprehensive exposition into Hangzhou Hikvision DigitalTechnology Co., Ltd.'s (referred to as "Hikvision", "we" or the "Company")performance and management measures in economy, environmental, social andgovernance (referred to as "ESG") matters in 2023, with particular focus onstakeholder concerns.In accordance with the provisions of the Self-Regulatory Guidelines for ListedCompanies on the Shenzhen Stock Exchange No. 1 - Business Handling, theCompany, as a sample stock of the "SZSE 100 Index", discloses the Company'sfulllment of social responsibilities in this report.Reporting Scope
This Report covers data and information about the Company from January 1,2023 to December 31, 2023 (referred to as the "reporting period"). Of notesome information references data dating back to 2022 or before, or looksforward into 2024. This Report covers Hikvision and its subsidiaries. "EZVIZ"refers to Hangzhou EZVIZ Network Co., Ltd., and in context, also refers to itsbusiness. "Hikrobot" refers to Hangzhou Hikrobot Co., Ltd., and in context, itsbusiness. " HikImaging" refers to Hangzhou Hikimaging Technology Co., Ltd.,which, in context, also refers to its business. "HikRaying" refers to HangzhouRayin Technology Ltd., and in context, also refers to its business.
Reporting Cycle
Our ESG report is released in each scal year. This Report is the 6thEnvironment, Social and Governance (ESG) report released by the Companysince 2018.
Basis of Reporting
This Report is prepared with reference to the GRI Sustainability ReportingStandards issued by the Global Sustainability Standards Board (GSSB) (referredto as the "GRI Standards"), the Self-Regulatory Guidelines for Listed Companieson the Shenzhen Stock Exchange No. 1 - Business Handling, and the UnitedNations Sustainable Development Goals (SDGs) .
Reporting Principles
Materiality: Following the procedure of identifying material topics stipulated by
About This Report
the GRI Standards, we identify ESG factors concerned by internal and externalstakeholders based on our communication and surveys with them and thendetermine material topics for disclosure.Quantitation: This Report discloses quantitative targets and performance dataof environmental and social indicators. All indicators have specied statisticsscopes and calculation methods. Performance data for three consecutive yearsare disclosed under partial indicators.Balance: The Report provides an unbiased picture of the Company's performanceand avoids selections, omissions, or presentation formats that may inappropriatelyinuence a decision or judgment by the report reader.Consistency: The Report follows the statistics disclosure methodology adopted inthe previous annual report. Changes will be indicated in this report, if any.Data SourceThe nancial data included in this Report comes from the 2023 Annual Report,which has been independently audited by Deloitte Touche Tohmatsu CertiedPublic Accountants LLP. Other information and data mainly come from theofcial documents, internal statistical reports or documents of the Company. Themonetary amounts herein are denoted in RMB.
Report Preparation ProcessThis Report is prepared in according to the following procedures, namely,the analysis of ESG standards at home and abroad, the bench marking ofESG reports released by peer companies, the collection of report data, theinvestigation and interview of report preparation, the materiality analysis, thereview and approval of business departments and the Board of Directors, therelease and review of the report, etc., to ensure that the report information isobjective, standardized, honest and transparent.After conrmation by the management, this Report was approved by the Board ofDirectors on April 18, 2024.Access and FeedbackThis independent ESG Report is available in both Simplied Chinese and English.To view online or download, please visit https://www.hikvision.com/cn/
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Dear Readers,Thanks for reading Hikvision 2023 Environmental, Social and Governance Report. We value and look forward to hearingyour feedback on Hikvision's ESG efforts and this report. Your opinions and suggestions are an important basis for us tocontinuously improve the level of ESG information disclosure and promote corporate ESG management and practice. Youcan ?ll out the form below and send us your feedback by post, email or fax, we welcome and thank you for your comments!Your advice of this report
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2.Can the report help you to understand the company's ESG philosophy and practical characteristics?
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3.Are the content and format design of this report readable?
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4.What is your overall evaluation of the report?
□Excellent□Good□Average□Poor□Very PoorWhich topics are you most concerned about? (Multiple choices allowed)□ESG Management□Tech for Good□Governance Responsibility□Product Responsibility□EnvironmentalResponsibility□Employee Responsibility□Partner Responsibility□Community Responsibility□Other
How well is the information you are concerned about disclosed in the relevant topics?□Very comprehensive□Quite comprehensive□Partially covered□Covered minimally□ Not covered
What do you think is the most satisfying aspect in this report?________________________________________________________________What's your advice for our future ESG reports?________________________________________________________________Feedback in the following ways:
Contact: 0571-88075998Website: https://www.hikvision.com/en/Email: ESG@hikvision.comAddress: No. 518 WuLianWang Street, Binjiang District, Hangzhou
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