Hanwang Technology Co.Ltd(002362) : summary of 2021 Annual Report

Securities code: Hanwang Technology Co.Ltd(002362) securities abbreviation: Hanwang Technology Co.Ltd(002362) Announcement No.: 2022010 Hanwang Technology Co.Ltd(002362) 2021 annual report summary

1、 Important note: the summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. In addition to the following directors, other directors attended the meeting of the board of directors to consider the annual report in person

Name of director not present in person position of director not present in person reason for not attending the meeting name of the entrusted person

Tips on non-standard audit opinions □ applicable √ not applicable to the profit distribution plan of common shares or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors √ applicable □ not applicable whether to convert accumulation fund into share capital □ yes √ no

The company's profit distribution plan for ordinary shares reviewed and approved by the board of directors is: take 244454646 as the base, distribute cash dividend of 0.00 yuan (including tax) to all shareholders for every 10 shares, send bonus shares of 0 share (including tax), and do not use the accumulation fund to increase the share capital. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable □ not applicable II. Basic information of the company 1. Company profile

Stock abbreviation Hanwang Technology Co.Ltd(002362) stock code Hanwang Technology Co.Ltd(002362)

Shenzhen Stock Exchange

Contact person and contact information secretary of the board of directors securities affairs representative

Name: Zhou yingyu

Office address: floor 3, building 5, No. 8, Dongbeiwang West Road, Haidian District, Beijing

Fax: 01082786786

Tel: 01082786816

E-mail [email protected].

2. Introduction to main business or products during the reporting period

Hanwang Technology Co.Ltd(002362) as a pioneer in the field of artificial intelligence, it has continued to invest in visual image recognition and human-computer intelligent interaction. It has the industry-leading key technologies of artificial intelligence industry chain such as text image recognition, natural language processing, biometric recognition, intelligent video analysis and intelligent human-computer interaction. It has established the company's leading position in multi-modal, multi-type and complex scene recognition technology and has been applied in many fields, Form the business model of "technology platform + industry track" and TOC intelligent terminal products. Deeply integrate with judicial, financial, medical, public service, education and other vertical industries in tob field to promote the development of digital government and digital economy; Give play to the advantages of software hardware combination and intelligent manufacturing in the TOC field, build the "Hanwang" brand matrix, and form four main business segments: text big data, pen intelligent interaction, face and biometric recognition, and AI intelligent terminal. (I) business priorities during the reporting period

1. Technology R & D and product innovation

As the winner of the first prize and the second prize of the national science and technology progress award, the company has one national enterprise technology center and one Beijing Engineering Technology Research Center, with 974 patents in force, including 523 invention patents. Within the scope of consolidated statements, 11 entities are national high-tech enterprises, 4 are specialized special new small and medium-sized enterprises, and 3 are specialized special new "little giant" enterprises in Beijing. All subsidiaries have strong competitiveness in subdivided fields and racetracks.

During the reporting period, the company undertook the research work of national science and technology innovation 2030 - "Research on Key Technologies of handwritten text recognition and understanding in complex layout" and "Research on multilingual automatic translation with Chinese as the core". The research on relevant topics will drive the research and development of the company's intelligent marking of multi-disciplinary and multi question paper and pencil examination and homework, as well as the multilingual and multi-modal automatic translation technology with Chinese as the core, The progress in the research and development of key technologies and applications such as automatic translation system and verification application for a variety of application scenarios has enabled the construction of Digital China. During the reporting period, the company increased investment in localization related work and maintained full interaction with various localization integration and innovation ecosystems such as Tongxin and Huawei. The core identification software and industry products are compatible with Tongxin UOS, Kirin and other localization platforms. Related products cooperate with the general office of the CPC Central Committee, the national postal administration, the Discipline Inspection Commission of local provincial Party committees and other units.

During the reporting period, the company continuously enriched the forms of technology carriers through the combination of technology authorization, cloud services, application software, applet, app and other ways to meet the needs of scene landing. Handwriting recognition technology has developed new fields such as handwritten notes and ca Beijing Certificate Authority Co.Ltd(300579) and cooperated with internationally renowned handwritten note software manufacturers on the basis of maintaining on-board input method cooperation with more than 30 mainstream car enterprise brands around the world.

Based on AI technology, the company has actively arranged new products and new fields and achieved phased results. 1) Professional digital painting brand "xenelabs" is introduced to the market, and institutions are set up in Europe, America, Asia and other developed countries to serve customers; 2) Based on the company's pen intelligent interaction technology and handwriting recognition core technology, the new generation of handwritten electronic paper book brings users a sense of experience closer to natural paper and pen records, and can transform the original unstructured data such as handwritten manuscripts and sounds formed in users' daily records into text data that can be saved synchronously and retrieved intelligently on multiple platforms; 3) Enter the field of great health through AI technology, develop and design the first set of sphygmomanometer products based on Coriolis sound principle in the market, which is currently in the product registration stage; 4) The research and development of large bionic flapping wing aircraft equipped with camera and GPS positioning system has been completed; 5) Intelligent video analysis added smart land, smart water conservancy, high-altitude parabolic monitoring and other system solutions and successfully landed; 6) The text big data business has completed the country's only pilot project of single set archiving and management of electronic files of engineering construction archives, passed the acceptance of the National Bureau, and expanded the fields of smart policing and smart immigration.

2. Build an international global brand, consolidate the global marketing network and layout China's regional market

The company has 1231 registered trademarks, has built a multi-level and multi category global brand matrix of "Hanwang", "Hanvon", "xp-pen", "xenelabs", "ugee Youji" and "gogo bird", and has set up offline image display centers or experience stores in Guangzhou, Nanjing, Shenzhen, Hefei, Qingdao, Wuhan and other places to enhance product and brand awareness through multiple channels.

At the to C end, the company has established a global marketing network. Internationally, the company will sell in more than 100 countries around the world through more than 20 mainstream online platforms such as Amazon, eBay, Walmart, aliexpress, lazada and shopee and 20 overseas online self operated malls; Set up a full coverage offline channel system in major regions of the world, such as North America, Europe, South America, Australia, Southeast Asia, Japan and South Korea, set up subsidiaries in the United States, France, Japan and South Korea to serve the global regional market, and set up more than 100 overseas warehouses worldwide to form a support network; In China, customer service tiktok is set up on Jingdong, Tmall, spelling and many other platforms, and more than 100 distributors are sold for product sales. After 400 hotline and regional service center, the company has carried out after-sale support.

To B end, through benchmarking projects, the establishment of regional centers, resource cooperation and other means of business expansion and channel development, set up more than 10 subsidiary companies and regional centers in major cities across the country, radiate China's key regional markets, and enhance the coverage of remote areas through the third-party agency system. At present, benchmark projects or regional centers are arranged in key strategic cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Wuhan and Xuchang.

(II) main business

1. Pen intelligent interactive service

The company's technology in pen intelligent interaction is mainly divided into two categories: electromagnetic touch and capacitive touch. The company is one of the only two enterprises in the world with independent intellectual property rights of wireless passive electromagnetic touch. It is a founding member of the international standard organization USI of capacitive pen. It participates in the formulation of relevant international standards throughout the process and takes the lead in making the world's first release usi2 Version 0 capacitive pen. The leading technology support company pen intelligent interactive business has strong market competitiveness.

In the post epidemic environment of weakening expectation, supply shock and shrinking demand, pen intelligent interactive business remains stable on a high base. Among them, "xenelabs" professional digital drawing product line is added in the digital drawing business under the condition that the consumption level business remains basically stable; On the one hand, the capacitive pen business continues to provide supporting capacitive pens for first-line brand manufacturers, on the other hand, it is sold directly to the C-end; Under the background of paperless tide, the application scenarios of signing and approval business are further increased except for the window industry.

(1) Digital painting

In February 2021, the company held the first global online conference of professional digital painting products in the United States and officially launched the professional brand "xenelabs" and related products, breaking the monopoly of foreign competitors in the field of professional digital painting and providing more professional tool choices for creative workers. So far, the digital painting business has completed the "up" and "down" product and market development strategies, formed a series of product matrices with different positioning of "ugee Youji", "xp-pen" and "xenelabs", and promoted sales on mainstream online platforms and offline channels outside China.

"Xenelabs" brand takes a professional route, cooperates with Chinese foreign media professional colleges and universities, top painting artists in the industry, CG special committee of China Film Co.Ltd(600977) Fine Arts Society and other head professional institutions, obtains batch orders, and creates a digital marketing and alliance marketing system through popular communication, social media, professional platform, brand alliance and other ways; Implant the world's top art professional events, expand the reach of the crowd, enhance the brand influence and consolidate the professional brand image.

During the reporting period, the market competitiveness of painting products was strengthened from the content side by providing painting training for painting equipment buyers and binding professional drawing software and integrating into the user ecological chain. (2) Capacitance pen

Thanks to the introduction of products equipped with capacitive pens by consumer electronics head brand manufacturers such as apple, Microsoft, Google, Huawei and Samsung, the demand of other manufacturers for new products equipped with capacitive pens is gradually increasing.

At the to B end, consumer electronics pen continues to maintain cooperation with strategic key customers and expand Chinese first-line brand customers such as ZTE and oppo. The market demonstration effect of cooperation with well-known customers is beneficial to the company to obtain more potential customers.

To C terminal, the capacitive pen supports various protocol systems such as USI protocol and Microsoft protocol. The capacitive pen has been sold online on Amazon, jd.com, tmall and other platforms.

(3) Paperless endorsement

During the reporting period, the company further integrated the paperless signing and approval business, strengthened the development and test compatibility of driver adaptation under various localization platforms and ecosystems, and the products were fully adapted to the localization platform and the special platform of government agencies. The relevant products covered more than 30 provinces in China, the United States, South America and some countries in Africa. In addition to continuing to maintain the leading competitive advantage in the fields of Finance and operators, under the background of localization, the number of landing projects of paperless signed and approved products in public security judicial interrogation system, local government, provincial Commission for Discipline Inspection and other scenes has increased.

In addition to the single sign off function products, integrated paperless office products are supplied in batches. The intelligent interactive products of the operator scene, China Mobile cloud shelf and China mobile intelligent self-service terminal, have been commercially available in more than 20 provinces and cities such as Beijing, Zhejiang Province, Hainan Province, Liaoning Province and Qinghai Province.

2. Text big data service

A series of leading technologies such as handwriting recognition technology, which won the first prize of the national science and technology progress award, OCR recognition of the second prize of the national science and technology progress award, and the industry-leading NLP natural language processing support the company to become a leading enterprise in the field of text big data. The company's humanistic digitization business such as Manchu ancient books, Tibetan ancient books, documents of the Republic of China and medical documents has been in the leading position in the industry for a long time, and Manchu recognition has won the special prize for excellent achievements of the national archives administration.

The company has carefully researched the core technology of text recognition, thickened the technical barriers, and solved the technical problems of free handwritten manuscript recognition and complex report recognition in industrial applications. The technological breakthrough has promoted the construction of digitization and intellectualization of industrial applications to make substantial progress, so that the electronic traditional business archives can be transformed from image resources into retrievable, applicable formatted and textual resources, and then use NLP technology to realize semantic Atlas, truly promote the construction of digital government, and finally empower the intelligent society.

During the reporting period, the company relied on AI text image recognition technology, NLP technology and RPA ( Siasun Robot&Automation Co.Ltd(300024) process automation) technology platform to find digital and intelligent landing scenes in various industry tracks, and set up subsidiaries in key strategic cities across the country to build a large marketing network. At present, the company has formed a product system that can be quickly copied and promoted in the fields of justice, archives, medical treatment, finance, Digital Humanities, education and so on, Through embedded business services + a variety of AI Siasun Robot&Automation Co.Ltd(300024) , help government enterprises and institutions digital business process reengineering and intelligent level, and improve the efficiency and service level of public services; During the reporting period, the company also actively developed early-stage applications in immigration, urban construction, traffic management and other fields, and helped the construction of digital industry and digital government in an all-round way.

(1) Intelligent justice

The judicial products and services mainly created by the company have been applied in nearly 300 judicial organs, such as the Supreme People's Procuratorate, the Supreme People's court and the Beijing Higher People's court. After the electronic file generation center with the new service mode of "platform + equipment + service" was launched in Beijing Higher People's court, it was rapidly promoted in people's courts at all levels in Beijing, and the expansion outside Beijing achieved further results. The new service mode was launched orderly in Guangxi Higher People's court, and the promotion in other provinces and cities was strengthened at the same time. With the application of AI file graphic analysis and recognition cloud platform in the Supreme People's Procuratorate, the company also promoted the product in the procuratorate system.

The company's text accurate identification Siasun Robot&Automation Co.Ltd(300024) , intelligent cataloging, RPA automatic backfilling and other functions minimize the transactional burden and repetitive work of judicial case handling personnel; According to statistics, the synchronization rate of the company's electronic file generation products in the application has reached 99.91%, which provides a strong guarantee for promoting the "quality and efficiency improvement, convenience and trial" of judicial services. Text big data service embedded with AI technology and RPA technology has become a data substation

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