Leading position in China's video surveillance systems and solutions market. Improving software technology capability supported by robust research and development but limited differentiation in hardware. Growing business and geographical diversification. Rapid changing technology and absence of clear industry standards. Net cash position over the next two years. Free operating cash flow. Moderate acquisition appetite. Higher, albeit mildly declining, profitability than that of domestic peers. The stable outlook on Hangzhou Hikvision Digital Technology Co. Ltd. reflects our expectation that the company will maintain its leading market position in China's growing surveillance systems and solutions market over the next 12-24 months. We also believe that surveillance solutions will continue to see strong growth in overseas markets. In our base case, Hikvision will
