Open a new era of IOT awareness, and security leaders create a new situation in business.

The origin and connotation of EBG: In 2009, Hikvision began to launch solutions covering seven industries, including public security, transportation, justice, finance, culture, education, health, energy and construction, and more than 40 sub-industries. The vertical industry layout has promoted the rapid development of the company's business and led the security industry into an era with solutions as the core. In order to better meet the needs of customers and improve the efficiency of internal operations, in 20 18, Haikang started the transformation and reorganization of its business structure, reorganized and integrated its resources, and divided its domestic business into three business groups: PBG, EBG and SMBG, so as to face different types of markets and customers more pertinently and coordinate its internal resources more effectively:

Based on the traditional three business divisions of public security, transportation and justice, with urban governance and urban services as the core, the PBG (Public Utility Group) business team is established to adapt to the block model of administrative regions and meet the overall operational needs of urban governance and urban services;

Based on the traditional four business divisions of finance, energy, construction, culture, education and health, the EBG (Enterprise Group) business team is established, which mainly serves the traditional large-scale enterprise market, adapts to the strip model of group enterprises and meets the vertical operation and management needs of group enterprises;

Set SMBG(Small & amp； The business team of China Merchants Group focuses on the market services of small and medium-sized enterprises, and is committed to building an industrial ecology and platform integrating product distribution, installation, operation and maintenance services and SaaS enjoyment.

EBG's business income continued to grow, accounting for 1/4. Judging from the data of income structure in recent years, EBG has gradually achieved the same income as PBG, and its income proportion has also shown a gradual upward trend (in contrast to the gradual decline of PBG's income proportion). In 2020, the company's EBG revenue totaled 65,438+0,565,438+0.80 billion yuan, a year-on-year increase of 20.56%, accounting for 23.90% of the revenue. In contrast, PBG revenue was 65,438+0,638+0% year-on-year, and the proportion of revenue fell to 25.67%.

Background of EBG business growth: With the slowdown of government market projects and the rise of industry market, the growth rate of industry market has exceeded that of government market. From the industry point of view, the demand fields of the security video surveillance market are scattered, and the industry scenarios with more applications are: finance (25%), factories/parks (17%), buildings/properties (16%) and so on.

The core of EBG business growth lies in "empowerment": in 20 16, Hikvision positioned itself as "an Internet of Things solution and data operation service provider with video as the core and providing security, visual management and big data services to the whole world" for the first time. In 20 18, Hikvision was clearly defined as "an intelligent Internet of Things solution and big data service provider with video as the core". "Intelligent Internet of Things solution with video as the core" is Hikon's main product for EBG customers. For enterprises, the value of this solution lies in: 1) improving business efficiency; 2) standardize the operation behavior; 3) guard against potential safety hazards; 4) Close the management distance. For different industries, the focus of solution business is different: for example, in the energy field, the requirement of safe production makes "standardizing operation behavior and preventing potential safety hazards" become the primary problem of Haikang in the energy field, while in the fields of intelligent buildings, culture, education and health, there is a natural need for digital governance to "pull into the management distance". In the field of traditional manufacturing, with the decline of demographic dividend, "improving business efficiency" has become the fundamental breakthrough of Haikang.

EBG: From value matching to value landing: Hikvision is based on the AI cloud architecture, relying on the technical capabilities of intelligent IOT and IOT integration, and continues to expand digital enterprise solutions that integrate traditional informationization, equipment IOT and scene intelligent IOT. Hikvision builds a comprehensive perception product system, builds AI engineering innovation and delivery capabilities based on the AI open platform, builds a low-code software engine, builds a digital world UI, and deepens enterprise-level SaaS services.

Realize value matching: the company relies on the industry application platform to provide large-scale equipment access, intelligent Internet of Things, data aggregation capabilities, and support the business application of integration of things and information. Based on the unified software technology architecture, we will continue to iterate products, launch software products and business application components for various industries and scenarios, and effectively incubate various innovative business applications such as digital platforms, financial box handover, and interactive teaching AIDS.

Promote value landing: the company is committed to the exploration and innovation of AI technology, helping the application of AI technology to evolve from specialization and generalization to engineering. Closely combine AI vision technology with multi-dimensional perception, software engine, data intelligence and mechanical automation technology, actively explore and build AI engineering capabilities, and help realize the closed loop of IOT perception and enterprise business processes, mechanical automation control and independent decision-making, data depth insight and predictive analysis applications.

Hikville is regarded as an AR digital workshop solution provided by manufacturing enterprises. Based on the real scene and panoramic mosaic images of AR, it links multidimensional IOT perception information with business system information such as production data, equipment and machine operation data, blanking situation, and related fault warning, so as to realize information aggregation and label display, help managers gain insight into problems in time and improve operational management efficiency.

Hikvision is a solution to provide AR safety loop diagram for chemical industry park, which integrates the safety and environmental protection data of chemical industry park around the full dynamic video and the high point of AR, and realizes the centralized presentation of status data and real-time changes of dangerous sources, pollution sources, fire-fighting facilities and videos in key public areas in the field of vision. Relate emergency plans and emergency resources, realize the integration of safety and environment, and improve the overall level of risk prevention and emergency response in the park.

Hikvision Tourist Scenic Spot provides AR real-life navigation solution, which integrates AR technology with tourist interactive navigation screen, and provides tourists with real-time preview of scenic spots based on multiple AR images and labels such as passenger flow, buildings and scenic spots, which enhances the interactive experience and interest of tourists and helps the intelligent marketing of scenic spots. Haikang Yunmou: Enterprise-level * * * has a cloud platform: Yunmou provides enterprise-level SaaS services for sub-sectors and is committed to helping enterprises improve their visualization, standardization and intelligent management capabilities. At present, it has covered typical industry scenes such as chain retail, community, general education and logistics.

According to the White Paper on the Development of Digital Economy in China (2020), the digital economy can be described and understood in the framework of "four modernizations", namely data value, digital industrialization, industrial digitalization and data governance.

Reconstructing the system of production factors through evaluation data is the foundation of the development of digital economy. In the digital economy, data, as a brand-new and key factor of production in the digital economy, runs through the whole process of the development of the digital economy, and is constantly combined with other factors of production to accelerate the cross-integration, leading to the breakthrough of multi-domain, multi-dimensional, systematic and revolutionary groups of factors of production. On the one hand, valuable data elements will promote the profound transformation, optimization and reorganization of traditional production factors such as technology, capital, labor and land, and give the digital economy a strong driving force for development. The combination of data elements and traditional production factors has spawned "new technologies" such as artificial intelligence, "new capital" such as financial technology, "new labor force" such as intelligent robots, "new land" such as digital twins, and "new ideas" such as blockchain. The new combination and new form of production factors will continuously release the effects of amplification, superposition and multiplication, and promote the development of digital economy. On the other hand, the value of data directly drives the transformation and upgrading of traditional industries in the direction of digitalization, networking and intelligence. Data elements are widely and deeply integrated with traditional industries, and the multiplier effect is prominent, showing great economic development value and potential. Data promotes the service industry to explore customer segmentation, risk prevention and control, and credit evaluation by using data elements, promotes the industry to accelerate intelligent production with intelligent perception and precise control, and promotes the transformation of agriculture to data-driven intelligent production mode.

Digital industrialization and industrial digitalization are the core of digital economy, and digital governance is the guarantee for the implementation of digital economy: under the data economy, digital industrialization, that is, information and communication industries (such as electronic information manufacturing, telecommunications and Internet industries, etc.). ) developing rapidly; Data elements are widely and deeply integrated with traditional industries, and the multiplier effect is prominent, showing great economic development value and potential. Digital governance is the guarantee for the healthy development of digital economy innovation. The connotation of "four modernizations" is listed in the chart as follows:

The digital economy is developing rapidly, and its proportion in GDP continues to increase: 20 19. In recent years, the digital economy has developed vigorously and has become one of the core growth poles of the national economy. The added value of China's digital economy has expanded from 2.6 trillion yuan in 2005 to 39.2 trillion yuan in 2020. The proportion of digital economy in GDP is increasing year by year, and its position in the national economy is more prominent. From 2005 to 2020, the proportion of China's digital economy in GDP increased from 14.2% to 38.6%, and the proportion increased by 2.3 percentage points in 2020.

The proportion of industrial digitalization increases VS the proportion of digital industrialization decreases: In 2020, China's digital industrialization will further move towards high-quality development, and new formats of digital technology will emerge one after another. A number of big data, cloud computing and artificial intelligence enterprises have innovated and developed, and the industrial production system is more complete. It is jumping to the high end of the global industrial chain, and the scale of digital industrialization has reached 7.5 trillion yuan, a nominal increase of 5.3% year-on-year. The proportion of digital economy will drop from 25.7% in 20 15 years to 19. 1% in 2020. In 2020, industrial digitalization will be explored in a deeper and wider field, and the role of digital technology in promoting the output growth and efficiency improvement of traditional industries will be further strengthened. The added value of industrial digitalization will reach 310.7 trillion yuan, with a nominal year-on-year increase of 10.3%, and the proportion of digital economy will increase from 74.3% in 20 15 to 80% in 20 19.

Hikon's advantage lies not in its omnipotence, but in its absolute superiority in the field of superiority. We believe that compared with competitors/partners who have also entered the field of industrial Internet of Things, Hikon has two core competitiveness:

In some advantageous areas, especially the partial industry side (compared with the consumer side of Internet companies), Hikvision has a clearer logic of industry operation and a deeper understanding of the needs of industry users;

With the appropriate R&D capability of software and hardware and a strong supply chain system combining software and hardware, Haikang has the ability to truly meet the needs of users.

Note: CR4 is used as the distinguishing index, and CR4