熵基科技：熵基科技股份有限公司2023年年度报告英文版

ZKTECOCO.,LTD. 2023AnnualReport AnnouncementNo.:2024-011 April2024 Adheringtointegrity,innovationandstabledevelopment,seeingfarandwidetowinthefuture ALettertoShareholders Theyear2023isthefirstcompleteaccountingyearsincethelistingofZKTeco.Thisyear,wecontinuetoadheretotheglobalizationstrategy,andcontinuouslyimproveourcorecompetitivenessdrivenbyinnovation.In2023,theCompanyachievedanoperatingrevenueofRMB1.9701837billion,aYoYincreaseof2.69%,andanetprofitattributabletotheownersoftheparentcompanyofRMB177.2637million,aYoYdecreaseof7.92%.Excludingtheimpactofshare-basedpaymentfees,thenetprofitattributabletotheownersoftheparentcompanywasRMB215.4326million,aYoYincreaseof9.04%.ZKTecoiscommittedtobecomingaworld-classenterprisefortechnologicalinnovationandsustainabledevelopmentintheaccesscontrolindustry.ThroughcontinuousR&Dinvestmentandmarketexpansion,ithasachievedstablebusinessgrowthandgloballayout.OnbehalfoftheBoardofDirectors,Iwouldliketoexpresssinceregratitudetoallcolleagues,users,partners,aswellasinvestorsoftheCompany! In2023,westillfocusedontheCompany'smainbusiness,deeplycultivatingthethreemajorbusinesssectorsofsmartentranceandexit,smartidentityverification,andsmartoffice.Drivenbythemarketandconsumers,wedeepenedourmainbusiness,refinedourservices,andexpandedourecosystemhorizontally. In2023,alsoknownasthe"YearofArtificialIntelligence",weofficiallyenteredthefieldofsmartretailcloudservices.ItisaninnovativebusinesssectornewlydevelopedbyZKTeco,andwehaveintegratedtheCompany'saccumulatedtechnologyandbusinesscapabilitiesovertheyears,focusingonthe"AI+DigitalSignage"fieldandacceleratingthetransformationoftraditionalretailindustrytodata-drivensmartretail. IntheeraofAI,ZKTecocontinuestofocusonedgebasedmultimodalAIforsmalldevices,empoweringindustriessuchashome,community,enterprise,andeducationwithtechnologiessuchashuman-computerinteraction,knowledgelearning,multimodalfusion,andofflineproxyexperts.TheCompanycontinuestoinvestintheresearchofmultimodalhybridbiometricrecognitionalgorithms,promotingtechnologicalinnovationandproductupgrades.Weensure continuousleadershipintechnologyandR&Dadvantages. Lookingaheadto2024,stability,innovationandsurpassingwillbethemainkeynoteofourdevelopment. 1.Beingstableandpractical,simpleandresponsible,focusingoncustomervaluecreation Wealwaysupholdthecorporatespiritofsimplicity,honestyandpracticality,whichisnotonlytheculturalgeneoftheCompany,butalsothecornerstoneofitsstabledevelopment.In2024,ZKTecowillcontinuetodeeplycultivatetheaccesscontrolindustry,continuouslymeetingandexceedingcustomerexpectationsbyprovidinghigh-qualityproductsandservices.TheCompanywilladheretothedevelopmentgoalsof"beingmorerefined,widerandhigher",andachievecontinuousoptimizationandinnovationofproductsandservicesthroughrefinedmanagementandin-depthunderstandingofconsumerneeds. Meanwhile,ZKTecowilltakeonthesocialresponsibilityoftheenterprise,notonlypursuingprofitmaximizationincommercialactivities,butalsofocusingoncreatinglong-termvalueforcustomers,employees,societyandtheenvironment.TheCompanywillcontinuetopromotesustainabledevelopmentstrategies,reduceenvironmentalimpactthroughtheapplicationofgreenproductionandenvironmentalprotectiontechnologies,andachieveawin-winsituationofeconomicbenefitsandsocialresponsibility. 2.Leapingforwardininnovation,adheringtoandpracticingdreams,enhancingcorecompetitiveness Wefirmlybelievethatinnovationisthecoredrivingforceforenterprisedevelopment.TheCompanywillcontinuetoincreaseR&Dinvestment,especiallyinthefieldsofcomputervisionandedgesidemultimodalAIhuman-computerinteractiontechnology.Throughcontinuoustechnologicalinnovation,ZKTecowilldrivetheupgradingofproductsandsolutions,therebyenhancingitscorecompetitiveness. 3.Surpassingwhilesettingsail,deepeningcultivationwhileconstantlysurpassing,seizinghistoricalopportunitiesofmultimodalAI WewillstillbecommittedtoseizingthehistoricopportunitiesbroughtbymultimodalAItechnologyinthe"cloud-edge-end-server"foraccesscontrol.TheCompanywillcontinuouslydeepenitsapplicationinindustriessuchashomefurnishings,communities,enterprisesand education,andachievediversifieddevelopmentofproductsandservicesthroughtechnologicalinnovationandcross-bordercooperation. Wewilladheretothestrategyof"agileevolution",respondquicklytomarketchangesandcustomerneeds,andcontinuouslyexploreinnovativeproductsandservices.TheCompanywillworktogetherwithitspartnerstobuildanagileecosystem,achievingrapidinnovationandmarketresponsethroughdigitaltransformationandcross-organizationalcollaboration.Wewillgrowtogetherwithourpartnerstoachieveresourcesharingandmutualbenefit. Finally,thankallshareholdersfortheirtrustandsupportintheCompany'smanagementteam!Wewilldevelopthroughtheintegrationofcoretechnologyinnovationandmainbusinesstrackinnovation,andlookforwardtothepowerofvigorousandupwardevolution,becomingaleadingenterpriseinworld-classaccesscontrolindustries,andsatisfyingallinvestors! ChairmanCheQuanhong 2023AnnualReport SectionIImportantNotes,ContentsandDefinitions TheBoardofDirectors,theBoardofSupervisors,directors,super