2024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Dahua Technology Co. Ltd.2024 Annual Report
Code of Securities: 002236
Abbreviation of Securities: DAHUA
Date of Disclosure: March 2025
This document is a translated version of the Chinese version 2024 Annual Report (“2024 年年度报告全文”)
and the published annual report in the Chinese version shall prevail.The complete published Chinese 2024 Annual Report may be obtained at http://www.cninfo.com.cn.
12024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
2024 Annual Report
Section I Important Notes Table of Contents and Definitions
The Board of Directors Board of Supervisors Directors Supervisors and Senior
Management of Zhejiang Dahua Technology Co. Ltd. (hereinafter referred to as the
"Company") hereby guarantee that the information presented in this report shall be
authentic accurate and complete and free of any false records misleading statements or
material omissions and they will bear joint and several liability for such information.Fu Liquan the Company's legal representative Xu Qiaofen chief accountant and
Zhu Zhuling person in charge of accounting institution (chief accountant) hereby declare
and warrant that the financial report in the annual report is authentic accurate and
complete. All directors attended the meeting of the Board of Directors for deliberation of
this annual report.During the reporting period there was no significant change in the risks faced by the
Company. The Company has been trying to identify all kinds of risks and actively take
countermeasures to avoid and reduce the risks.
(1) Risk of Technology Upgrading: The AIoT industry is a prime example of a
technology-intensive sector characterized by rapid advancements and upgrades. If the
Company is unable to keep up with the development trends of industry technologies
fully address the diverse individual needs of customers and invest adequately in R&D it
will still face the risk of declining market competitiveness due to an inability to maintain
continuous innovation. By increasing R & D investment the Company continues to
strengthen research on such core technologies as multi-dimensional perception large
model in AI video cloud big data network communication network security and
22024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
machine vision and reserves product technology management and talent resources for
a broader market in the future so as to achieve sustainable and steady business
development.
(2) Risk of business model change: With the development of IoT AI big data cloud
computing network communications among other technologies as well as the upgrades
of intelligent terminal applications the business model in the IoT era may have an impact
on traditional industry development. If an enterprise fails to grasp opportunities brought
about by the business model transformation in a timely manner it may face the risk that
the original market pattern becomes broken. The Company continues to focus on and
study significant changes in the global economy industry and technology. It analyzes
industry development logic and anticipates the evolution of the AIoT industry the ongoing
integration of video technology with information communication and digital technologies
and the diversification and uncertainty of customer demands. While consolidating its
advantageous markets the Company is actively exploring and piloting new businesses
innovative commercial models and strategic business and technology deployment.
(3) Risk of declined local fiscal payment capacity: At present local fiscal debt is
relatively high. If the local fiscal payment capacity declines it may slow down the growth
of industry demands prolong the construction period of projects extend the collection of
capital and delay customers' payment. The Company continues to improve the internal
control system and optimize the project review methods select local projects carefully
and assess project risks systematically with prudent assessment of the market logic and
cash flow balance logic and reasonable control of risks. In addition it formulates plans
to deal with potential risks such as cash flow shortage project delay and payment delay.
(4) Risks of international operations: The Company’s products and solutions cover
32024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
more than 100 countries and regions overseas and international business operations
face an ever-changing environment and new challenges. On the one hand the global
economic growth rate continues to slow down geopolitical and political conflicts in some
regions have intensified and some countries are facing risks such as foreign exchange
difficulties and exchange rate fluctuations which pose certain threats and risks to the
continued expansion of business in the host countries. On the other hand pressures
such as regional trade protectionism and regulation increasingly complex compliance
requirements in the international business environment and local manufacturing
requirements in some countries and regions continue to intensify leading to increasing
demands and cost investments in the Company's compliance capacity building. In this
regard the Company actively prevents and responds to international business risks
continuously enhances the overall overseas compliance risk control system improves
the capacity for proactive compliance risk prediction and systematic response and
continuously strengthens the Company's reserves and development of local production
and manufacturing capabilities. At the same time the Company continues to strengthen
its understanding and adaptability to the laws and regulations and political and economic
environment in the regions where its business is involved and formulates differentiated
national business operation strategies based on "one country one policy" under the
changes in politics and economy of different regions to reduce business operations and
local operation risks.
(5) Exchange rate risk: The Company's export transactions have been mostly settled
in U.S. dollars. As our overseas business is in continuous growth the fluctuation of
exchange rate may affect our profitability. The Company hedges and avoids exchange
rate risks by centralized management of foreign exchange funds and hedging of
42024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
purchase payments in line with its main use of U.S. dollars as the settlement currency.
(6) Product security risks: The Company attaches great importance to and continues
to set up special funds to strengthen product security construction in order to prevent
and respond to security risks of products in the Internet application environment but
there may still be risks of being attacked by denial of service brute-force access SQL
injection malware etc. which may lead to system failure or service interruption. The
Company has established a Network and Data Security Committee to establish and
improve a global end-to-end network and data security system in terms of policies
organizations processes management technology and specifications actively respond
to cyber security challenges and be vigilant and prevent major cyber security incidents.
(7) Intellectual property risk: The promotion of the Company's globalization strategy
and its own brand strategy may expose the Company to intellectual property rights risks
and patent infringement as well as such risks as business relations fluctuations in the
public opinion environment increased legal proceedings and rising costs. With a high
priority on technological innovation the Company has established a mechanism for the
protection and management of intangible assets such as innovation achievements own
brands and trade secrets so as to continuously gather advantageous intellectual
property assets; with the establishment of an intellectual property compliance and risk
control system the Company continuously strengthens its ability to understand and
master intellectual property laws and regulations as well as the administrative and
judicial environment in the regions where it operates.
(8) Supply chain security risks: The supply market is generally sufficient. The
Company has built a sustainable supply ecosystem to ensure supply and delivery
through various means such as new material selection development of exclusive
52024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
second-party suppliers and flexible inventory strategies. The Company pays attention to
the operational risks of suppliers and monitors the operational conditions of suppliers in
real time through the operational risk data management platform to avoid potential risks.Based on the profit distribution plan reviewed and approved by the Board of
Directors the Company plans to distribute a cash dividend of RMB 4.58 (tax inclusive)
for every 10 shares to all shareholders based on the share capital of 3279257910
shares after deducting the repurchased shares (totaling 19819601 shares) with 0
bonus shares (tax inclusive) and will not convert capital reserve into share capital.
62024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Table of Contents
Section I Important Notes Table of Contents and De... 2
Section II Company Profile and Key Financial Indic.. 17
I. Company Information ............................. 17
II. Contact Person and Contact Information ......... 17
III. Information Disclosure and Location ........... 17
IV. Registration Change ............................ 18
V. Other Related Information........................ 18
VI. Key Accounting Data and Financial Indicators ... 18
VII. Differences in Accounting Data Under Domestic.. 19
VIII. Key Financial Indicators by Quarter .......... 19
IX. Non-recurring Gains and Losses Items and Their.. 20
Section III Management Discussion and Analysis ..... 22
I. Industry Overview during the Reporting Period ... 22
II. Main Businesses of the Company during the Repo.. 23
III. Core Competitiveness Analysis ................ 127
IV. Main Business Analysis ........................ 131
V. Non-Main Business Analysis ..................... 140
VI. Analysis of Assets and Liabilities ............ 140
VII. Investment Analysis .......................... 142
VIII. Major Assets and Equity Sales ............... 151
IX. Analysis of Major Subsidiaries and Associates . 151
X. Structured Entity Controlled by the Company .... 153
XI. Prospects for the Future Development of the Co. 153
XII. Reception of Visits Communication Interviews and Other Activities in the Report Period ... 155
13. Development and implementation of market value management system and valuation
enhancement plan .................................. 155XIV. Implementation of the “Increase in Both Quali. 156Section IV Corporate Governance ................... 158
I. Basic Situation on Corporate Governance ........ 158
II. The Company’s Independence from the Controlling Shareholder and Actual Controller in terms
of the Company’s Assets Personnel Finance Organiza. 160
III Horizontal competition ........................ 161
IV. Relevant Situation of the Annual General Meeting of Shareholders and the Extraordinary
General Meeting of Shareholders Held in the Report. 162
V. Directors Supervisors and Senior Management .... 162
VI. Performance of Directors' Duties during the Re. 170
VII. Performance of Duties of the Special Committee under the Board of Directors during the
Reporting Period .................................. 171
VIII. Work of the Board of Supervisors ............ 172
72024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
IX. Employee Situation in the Company ............. 172
X. Distribution of Company Profits and Capital Reserve Conversion to Share Capital Situation .. 173
XI. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership Plan or
Other Employee Incentive Measures ................. 175
XII. Construction and Implementation of Internal Control System during the Reporting Period .... 178
XIII. The Company's Management and Control of Subsidiaries during the Reporting Period ....... 179
XIV. Internal Control Evaluation Report or Interna. 179
XV. Rectification of Self-Examination Issues in the Special Action on Corporate Governance of
Listed Companies .................................. 181
Section V Environmental and Social Responsibilitie. 182
I. Major Environmental Protection Issues .......... 182
II. Social Responsibilities ....................... 183
III. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural Revitalization183
Section VI Significant Events ..................... 184
I. Performance of Commitments ..................... 184
II. Non-operational capital occupation over listed companies by controlling shareholders and their
related parties ................................... 185
III. Illegal external guarantees .................. 185
IV. Statement by the Board of Directors on the recent "Non-Standard Audit Report" related
situation ......................................... 185
V. Explanations Made by the Board of Directors the Board of Supervisors and Independent
Directors (If Any) on the "Non-standard Audit Report" from the Accounting Firm during the
Reporting Period .................................. 186
VI. Changes in Accounting Policies Accounting Estimates or Corrections of Major Accounting
Errors Compared with the Previous Year's Financial. 186
VII. Changes in the Scope of Consolidated Financial Statements Compared with the Previous
Year's Financial Report ........................... 186
VIII. Appointment and Dismissal of Accounting Firm. 186
IX. Suspension of Listing and Termination of Listing after Disclosure of the Annual Report ......... 187
X. Bankruptcy Reorganization Matters .............. 187
XI. Significant Lawsuits and Arbitration Matters .. 187
XII. Penalties and Rectification .................. 187
XIII. Integrity of the Company Its Controlling Sha. 187
XIV. Significant Related-Party Transactions ....... 187
XV. Significant Contracts and Their Performance ... 188
XVI. Explanations on Other Significant Matters .... 207
XVII. Significant Events of the Company's Subsidia. 207
Section VII Changes in Shares and Information abou. 208
I. Changes in Shares............................... 208
II. Issuance and listing of securities ............ 212
III. Particulars about the shareholders and actual. 213
IV. Specific Implementation of Share Buybacks duri. 218
Section VIII Information of Preferred Shares ...... 219
Section IX Situation on Corporate Bonds ........... 220
82024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section X Financial Report ........................ 221
I. Audit Reports .................................. 221
II. Financial Statements .......................... 226
III. Basic Information about the Company .......... 254
IV. Basis for Preparing the Financial Statement ... 254
V. Significant Accounting Polices and Accounting E. 255
VI. Taxes ......................................... 291
VII. Notes to the Items in the Consolidated Financ. 294
VIII. R&D expenditures ............................ 346
IX. Changes in the Scope of Consolidation ......... 346
X. Equity in Other Entities ....................... 348
XI. Government Subsidies .......................... 356
XII. Risks Relating to Financial Instruments ...... 357
XIII. Disclosure of Fair Value .................... 359
XIV. Related Parties and Related-party Transaction. 361
XV. Share-based Payment ........................... 375
XVI. Commitments and Contingencies ................ 377
XVII. Events after the Balance Sheet Date ......... 380
XVIII. Other Significant Events.................... 381
XIX. Notes to Main Items in the Financial Statemen. 381
XX. Supplementary Information ..................... 395
92024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Documents Available for Reference
i. Financial statements signed and sealed by the Company's person in charge the chief accountant and
the person in charge of accounting department (accounting officer).ii. The original copy of the Audit Report with the seal of the Accounting Firm and signed and stamped by
Certified Public Accountants;
iii. The original of all the Company's documents publicly disclosed during the reporting period and the
original of the announcement.iv. The said documents need to be prepared and placed at the Company's Securities Department for
reference by investors.
102024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Definitions
Refers
Item of definition Definitions
To
Refers
Reporting Period From January 1 2024 to December 31 2024
To
Dahua company the Refers
Zhejiang Dahua Technology Co. Ltd.company To
Dahua System Engineering Refers
Zhejiang Dahua System Engineering Co. Ltd.System Engineering Company To
Refers
Dahua Vision Technology Zhejiang Dahua Vision Technology Co. Ltd.To
Dahua Security Network Refers
Zhejiang Dahua Security Network Operation Service Co. Ltd.Operation Company To
Refers
Dahua Ju'an Zhejiang Dahua Ju'an Technology Co. Ltd.To
Refers
Guangxi Dahua Information Guangxi Dahua Information Technology Co. Ltd.To
Refers
Guangxi Yunlian Guangxi Dahua Yunlian Information Technology Co. Ltd.To
Xiaohua Technology Refers
Hangzhou Xiaohua Technology CO. LTD.Hangzhou Xiaohua To
Refers
Dahua Zhilian Zhejiang Dahua Zhilian Co. Ltd.To
Dahua Investment Dahua Refers
Zhejiang Dahua Investment Management Co. Ltd.Investment Management To
Guangxi Zhicheng Dahua Refers
Guangxi Dahua Zhicheng Co. Ltd.Zhicheng To
Hangzhou Huacheng Refers
Hangzhou Huacheng Network Technology Co. Ltd.Huacheng Network To
Refers
HuaRay Technology Zhejiang HuaRay Technology Co. Ltd.To
Refers
Fuyang Hua'ao Hangzhou Fuyang Hua'ao Technology Co. Ltd.To
Refers
Huafei Intelligent Zhejiang Huafei Intelligent Technology CO. LTD.To
Refers
Huachuang Vision Zhejiang Huachuang Vision Technology Co. Ltd.To
Refers
Guizhou Huayi Guizhou Huayi Shixin Technology Co. Ltd.To
Refers
Guangxi Huacheng Guangxi Huacheng Technology Co. Ltd.To
Refers
Meitan Dahua Technology Guizhou Meitan Dahua Information Technology Co. Ltd.To
Refers
Inner Mongolia Zhimeng Inner Mongolia Dahua Zhimeng Information Technology Co. Ltd.To
Refers
Leapmotor Technology Zhejiang Leapmotor Technology Co. Ltd.To
Leapmotor Refers Leapmotor Automobile Co. Ltd.
112024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
To
Tianjin Dahua Information Refers
Tianjin Dahua Information Technology Co. Ltd.Tianjin Dahua To
Hunan Dahua Zhilong Dahua Refers
Hunan Dahua Zhilong Information Technology Co. Ltd.Zhilong To
Refers
Huaxiao Technology Zhejiang Huaxiao Technology Co. Ltd.To
Refers
Vision Technology Zhejiang Fengshi Technology Co. Ltd.To
Xi'an Dahua Zhilian Xi'an Refers
Xi'an Dahua Zhilian Technology Co. Ltd.Dahua To
Refers
Huaruipin Jiangsu Huaruipin Technology Co. Ltd.To
Refers
Beijing Huayue Beijing Huayue Shangcheng Information Technology Service Co. Ltd.To
Refers
Shanghai Huashang Shanghai Huashang Chengyue Information Technology Service Co. Ltd.To
Refers
Dahua Jinzhi Zhejiang Dahua Jinzhi Technology Co. Ltd.To
Dahua Hong Kong Dahua Refers
Dahua Technology (HK) Limited
(HK) Limited To
Refers
Zhoushan Operation Zhejiang Zhoushan Digital Development Operation Co. Ltd.To
Refers
Yunnan Zhili Yunnan Zhili Technology Co. Ltd
To
Refers
Guangxi Dahua Technology Guangxi Dahua Technology Co. Ltd.To
Refers
Huayixin Zhejiang Huayixin Technology Co. Ltd.To
Refers
Huaruijie Zhejiang Huaruijie Technology Co. Ltd.To
Refers
Chengdu Zhilian Chengdu Dahua Zhilian Information Technology Co. Ltd.To
Refers
Chengdu Zhian Chengdu Dahua Zhian Information Technology Service Co. Ltd.To
Refers
Chengdu Zhishu Chengdu Dahua Zhishu Information Technology Service Co. Ltd.To
Refers
Chengdu Zhichuang Chengdu Zhichuang Yunshu Technology Co. Ltd.To
Refers
Chengdu Smart Network Chengdu Huishan Smart Network Technology Co. Ltd.To
Refers
Huakong Software Zhejiang Huakong Software Co. Ltd.To
Refers
Huacheng Software Hangzhou Huacheng Software Co. Ltd.To
Refers
Henan Dahua Henan Dahua Zhilian Information Technology Co. Ltd.To
Refers
Huajian Zhejiang Huajian Technology Co. Ltd.To
122024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Refers
Zhengzhou Dahua Zhian Zhengzhou Dahua Zhian Information Technology Co. Ltd.To
Refers
Dahua International Dahua Technology International Co. Ltd.To
Refers
Anhui Zhilian Anhui Dahua Zhilian Information Technology Co. Ltd.To
Refers
Anhui Zhishu Anhui Dahua Zhishu Information Technology Co. Ltd.To
Refers
Changsha Dahua Changsha Dahua Technology Co. Ltd.To
Refers
Tianjin Huajian Tianjin Huajian Technology Co. Ltd.To
Refers
Wuhu Huajian Wuhu Huajian Technology Co. Ltd.To
Refers
Zhejiang Pixfra Zhejiang Pixfra Technology Co. Ltd.To
Refers
Yiwu Huaxi Yiwu Huaxi Technology Co. Ltd.To
Refers
Dahua Operation Zhejiang Dahua Intelligent IoT Operation Service Co. Ltd.To
Refers
Nanyang Intelligent Nanyang Dahua Intelligent Information Technology Co. Ltd.To
Refers
Yibin Huahui Yibin Huahui Information Technology Co. Ltd.To
Refers
Chengdu Huazhiwei Chengdu Huazhiwei Technology Co. Ltd.To
Refers
IMOU Xi'an Xi'an IMOU Zhilian Technology Co. Ltd.To
Refers
Luoyang Zhiyu Luoyang Dahua Zhiyu Information Technology Co. Ltd.To
Refers
Huaqi Intelligence Zhejiang Huaqi Intelligent Technology Co. Ltd.To
Refers
Chengdu Information Chengdu Dahua Wisdom Information Technology Co. Ltd.To
Refers
HJ Technology Zhejiang HJ Technology Co. Ltd.To
Refers
Huaxiyue Guangdong Huaxiyue Intelligent Technology Co. Ltd.To
Refers
Huajie Operation Zhejiang Huajie New Energy Operation Service Co. Ltd.To
Refers
Shuhang Intelligent Zhejiang Shuhang Intelligent Technology Co. Ltd.To
Refers
Qingdao Ruifa Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co. Ltd.To
Refers
Shandong Digital Intelligence Shandong Dahua Digital Intelligence Technology Co. Ltd.To
Refers
Fujian Qingchuang Fujian Dahua Qingchuang Digital Technology Co. Ltd.To
Jilin Zhilian Refers Jilin Dahua Zhilian Technology Co. Ltd.
132024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
To
Refers
Zhengzhou Huaao Zhengzhou Airport Economy Zone Huaao Technology Co. Ltd.To
Refers
Hainan Huizhi Hainan Dahua Huizhi Technology Co. Ltd.To
Refers
Dahua Europe Dahua Europe B.V.To
Refers
Dahua Middle East Dahua Technology Middle East FZE
To
Refers
Dahua Mexico Dahua Technology Mexico S.A. DE C.V
To
Refers
Dahua Chile Dahua Technology Chile SpA
To
Refers
Dahua Malaysia Dahua Security Malaysia SDN. BHD.To
Refers
Dahua Korea Dahua Technology Korea Company Limited
To
Refers
Dahua Indonesia PT. Dahua Vision Technology Indonesia
To
Refers
Dahua Colombia Dahua Technology Colombia S.A.S
To
Refers
Dahua Australia Dahua Technology Australia PTY LTD
To
Refers
Dahua Singapore Dahua Technology Singapore Pte. Ltd.To
Refers
Dahua South Africa Dahua Technology South Africa Proprietary Limited
To
Refers
Dahua Peru Dahua Technology Perú S.A.C
To
Refers
Dahua Russia Dahua Technology Rus Limited Liability Company
To
Refers DAHUA TECHNOLOGY BRASIL COMéRCIO E SERVI?OS EM
Dahua Brazil
To SEGURAN?A ELETR?NICA LTDA
Refers
Dahua Canada Dahua Technology Canada INC.To
Refers
Dahua Panama Dahua Technology Panama S.A.To
Refers
Dahua Hungary Dahua Technology Hungary Kft
To
Refers
Dahua Poland Dahua Technology Poland Sp. z o.o.To
Refers
Dahua Italy Dahua Technology Italy S.R.L.To
Refers
Dahua Tunisia Dahua Technology Tunisia Limited Liability Company
To
Refers
Dahua Kenya Dahua Technology Kenya Limited
To
Refers
Dahua UK Dahua Technology UK Limited
To
142024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Refers
Dahua Germany Dahua Technology GmbH
To
Refers
Dahua Serbia Dahua Technology SRB d.o.o.To
Refers
Dahua India Dahua Technology India Private Limited
To
Refers
Dahua Turkey Dahua Guvenlik Teknolojileri Sanayive Ticaret A.S.To
Refers
Dahua Czech Dahua Technology Czech s.r.o.To
Refers
Dahua Argentina Dahua Argentina S.A.To
Refers
Dahua Spain Dahua Iberia S.L.To
Refers
Dahua Kazakhstan Dahua Technology Kazakhstan LLP
To
Refers
Dahua Denmark Dahua Technology Denmark Aps.To
Refers
Dahua France Dahua Technology France SAS
To
Refers
Dahua Technology Holdings Dahua Technology Holdings Limited
To
Refers
Dahua New Zealand Dahua Technology New Zealand Limited
To
Refers
Dahua Netherlands Dahua Technology Netherlands B.V.To
Refers
Dahua Morocco Dahua Technology Morocco SARL
To
Refers
Dahua Romania Dahua Technology S.R.L
To
Refers
Dahua Uzbekistan Dahua Vision LLc
To
Refers
Dahua Bulgaria Dahua Technology Bulgaria EOOD
To
Refers
Dahua Sri Lanka Dahua Technology China (Pvt) LTD
To
Refers
Dahua Pakistan Dahua Technology Pakistan (private) Limited
To
Refers
Dahua Thailand Dahua Technology (Thailand) Co.LTD.To
Refers
Dahua Nigeria Dahua Technology Nigeria Representative Ltd
To
Refers
Dahua Israel Dahua Technology Israel Ltd.To
Refers
Dahua Mexico Service VISMEXTECH DHM SERVICIOS S.A. DEC.V.To
Refers
Huacheng Netherlands Imou Network Technology Netherlands B.V.To
Dahua Japan Refers Dahua Technology Japan LLC
152024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
To
Refers
Huacheng Hong Kong Huacheng Network (HK) Technology Limited
To
Refers
Dahua Qatar Dahua Technology QFZ LLC
To
Refers
Dahua Pacific Dahua Technology Pacific S.A
To
Refers INTELBRAS S.A. INDúSTRIA DE TELECOMUNICA??O ELETR?NICA
Intelbras S.A.To BRASILEIRA
Refers
Dahua Saudi Arabia Dahua Technology Middle East for Maintenance Single Person Company
To
Refers
Dahua Bengal Dahua Technology Bangladesh Private Limited
To
Refers
IMOU Australia IMOU NETWORK TECHNOLOGY AUSTRALIA PTY LTD
To
Refers
IMOU Vietnam C?NG TY TNHH C?NG NGH? IMOU NETWORK VI?T NAM
To
Refers
HuaRay Singapore HUARAY TECHNOLOGY SINGAPORE PTE. LTD.To
Refers
Dahua Belgium Co. Dahua Technology Belgium BV
To
Refers
Dahua Saudi Arabia Co. Dahua Technology Regional Headquarters
To
Refers
Dahua Argentina Co. Dahua Technology Azerbaijan LLC
To
Refers
Dahua Vietnam Co. Ltd. Dahua Technology Vietnam Company Limited
To
Refers
HuaRay Korea HUARAY TECHNOLOGY KOREA COMPANY LIMITED
To
Refers
HuaRay Germany Huaray technology GmbH
To
Refers
Dahua Angola DAHUA EUROPE B.V -SUCURSAL EM ANGOLA
To
Refers
IMOU Teknologi Indonesia PT IMOU TEKNOLOGI INDONESIA
To
Refers
IMOU Indonesia Senantiasa PT IMOU INDONESIA SENANTIASA
To
Refers
Hirige MaLaysia Hirige Technology MaLaysia Sdn.Bhd.To
Refers
Dahua Egypt Dahua Technology Egypt LLC
To
Refers DAHUA TECHNOLOGY AUH FOR SECURITY & SURVEILLANCE –
DAHUA Abu Dhabi
To SOLE PROPRIETORSHIP L.L.C.
162024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section II Company Profile and Key Financial Indicators
I. Company Information
Stock Abbreviation DAHUA Stock Code 002236
Stock Exchange Shenzhen Stock Exchange
Company Name in
Zhejiang Dahua Technology Co. Ltd.Chinese
Company Abbreviation in
DAHUA
Chinese
Company Name in Foreign
ZHEJIANG DAHUA TECHNOLOGY CO.LTD.Language (If any)
Legal Representative Fu Liquan
Registered Address No.1187 Bin'an Road Binjiang District Hangzhou City
Post Code of Registered
310053
Address
Change of the Company’s On November 9 2005 the Company’s registered address changed from the 15th floor
Registered Address of Tianyuan Building 508 Wensan Road Hangzhou to the present registered address.Office Address No. 1399 Bixing Road Binjiang District Hangzhou City
Post Code of Office
310053
Address
Website www.dahuatech.com
E-mail zqsw@dahuatech.com
II. Contact Person and Contact Information
Secretary of the Board Representative of Securities Affairs
Name Wu Jian Li Sirui
No. 1399 Bixing Road Binjiang No. 1399 Bixing Road Binjiang
Contact Address
District Hangzhou City District Hangzhou City
Phone 0571-28939522 0571-28939522
Fax 0571-28051737 0571-28051737
E-mail zqsw@dahuatech.com zqsw@dahuatech.com
III. Information Disclosure and Location
The stock exchange website where the Company
Shenzhen Stock Exchange (http://www.szse.cn)
discloses the annual report
The media outlets and their websites where the Company Securities Times and Juchao Information Network
discloses the annual report http://www.cninfo.com.cn/
Location for Annual Report of the Company Securities Investment Department
172024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
IV. Registration Change
Unified Social Credit Code 91330000727215176K
Changes in Main Business Since Listing (If any) No Change
Change of Controlling Shareholders (If any) No Change
V. Other Related Information
Accounting Firm Hired by the Company
BDO China Shu Lun Pan CPAs (special general
Name of the Accounting Firm
partnership)
4/F New Huangpu Financial Plaza No.61 Nanjing East
Office Address of the Accounting Firm
Road Shanghai
Name of Certified Public Accountant Du Na Zhang Junhui
The sponsor institution hired by the company to perform the continuous supervision in the reporting period
□Applicable □ Not applicable
Name of Sponsor Office Address of Sponsor Name of Sponsor Continuous
Institution Institution Representative Supervision Period
5th Floor Kaixiya Building No.
Guosen Securities Co.
105 Tiyuchang Road Hangzhou Lou Yu Sun Yu 2023.4.14-2024.12.31
Ltd.Zhejiang Province
The financial adviser hired by the company to perform the continuous supervision in the reporting period
□ Applicable □Not applicable
VI. Key Accounting Data and Financial Indicators
Whether the Company needs retroactive adjustment or restatement of accounting data in prior years or not
□ Yes □No
Increase/Decrease
Compared with the
202420232022
Same Period of the
Previous Year
Operating revenue
32180931827.1732218317636.77-0.12%30565370012.64
(RMB)
Net profit attributable
to shareholders of
2905728684.037361892404.52-60.53%2324356092.20
the listed Company
(RMB)
Net profit attributable
to shareholders of
the listed company
2347399066.672961742139.01-20.74%1580552515.57
after deducting non-
recurring gains and
losses (RMB)
Net cash flow
generated by
2710237609.304598778654.47-41.07%1053587649.46
operational activities
(RMB)
182024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Basic Earnings per
0.902.31-61.04%0.79
Share (RMB/Share)
Diluted Earnings per
0.902.31-61.04%0.79
Share (RMB/Share)
Weighted Average
8.19%22.43%-14.24%9.49%
ROE
Increase/Decrease
at the End of the
Current Year
End of 2024 End of 2023 End of 2022
Compared with the
End of the Previous
Year
Total assets (RMB) 52735912081.82 52881927214.00 -0.28% 46252893804.54
Net assets
attributable to
shareholders of the 36028046171.08 34719173825.42 3.77% 25836798918.61
listed company
(RMB)
The Company’s net profits before and after deducting non-recurring profits and losses whichever is lower are
negative in the last three fiscal years and the audit report of last year shows that there is uncertainty in the Company’s
ability to continue as a going concern.□ Yes □No
The net profits before and after deducting non-recurring profits and losses whichever is lower is negative.□ Yes □No
VII. Differences in Accounting Data Under Domestic and Foreign Accounting
Standards
(1) Differences of net profits and net assets in the financial reports disclosed according to the
international accounting standards and Chinese accounting standards
□ Applicable □Not applicable
During the reporting period of the company there is no difference between the net profits and net assets in the
financial reports disclosed according to international accounting standards and Chinese accounting standards.
(2) Differences between the net profits and net assets in the financial reports disclosed
according to the overseas accounting standards and Chinese accounting standards
□ Applicable □Not applicable
During the reporting period of the company there is no difference between the net profits and net assets in the
financial reports disclosed according to overseas accounting standards and Chinese accounting standards.VIII. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 6180916716.70 8685705853.11 7583459308.10 9730849949.26
Net Profit Attributable 561037985.01 1248551460.45 735420826.51 360718412.06
192024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
to Shareholders of
the Listed Company
Net profit attributable
to shareholders of
the listed company
501290511.611260946957.92499230279.0385931318.11
after deducting non-
recurring gains and
losses
Net cash flow
generated by -1306666360.66 799480739.95 382269899.01 2835153331.00
operating activities
Whether the above financial indicators or their totals are significantly different from the financial indicators disclosed in
the Company’s quarterly and semi-annual reports
□ Yes □No
IX. Non-recurring Gains and Losses Items and Their Amounts
□Applicable □ Not applicable
Unit: RMB
Item Amount in 2024 Amount in 2023 Amount in 2022 Note
Profits or losses from disposal of non-
current assets (including the write-off for 104348459.46 4778983828.56 694299856.79
the accrued impairment of assets)
The government subsidies included in the
current profits and losses (excluding the
government subsidies closely related to
regular businesses of the Company in
249665678.30199003183.46245885438.60
line with national policies entitled to
according to the established standard
and continuously impacting the
Company’s profits and losses)
Profits and losses resulting from the
changes in fair value for financial assets
and financial liabilities held by non-
financial enterprises and from disposal of
124956271.40103119981.50-14286907.57
financial assets and liabilities excluding
the effective hedging businesses related
to the regular business operation of the
Company
Gains or losses from investment or asset
175635135.761819647.72-40735247.48
management entrusted to others
Reversal of the receivables depreciation
4602004.264513.912151340.72
reserves for separate impairment test
Profits and losses on debt restructuring -394660.00 -16242445.24 -414996.80
Non-Operating Revenue and expenses
12821255.27-18035840.085535034.55
other than the above
Other gains and losses items that fit the
definition of non-recurring gains and -1833839.60 -57989909.93 -134254380.85
losses
Less: Impact of income tax 85954207.29 555973378.97 49067502.67
202024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Impact of minority equity (after tax) 25516480.20 34539315.42 -34690941.34
Total 558329617.36 4400150265.51 743803576.63 --
Other gains or losses that fit the definition of non-recurring gains or losses:
□ Applicable □Not applicable
The Company has no other gains or losses that fit the definition of non-recurring gains or losses.Note for the definition of non-recurring gains and losses listed in the No. 1 Explanatory Announcement on Information
Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses as recurring gains
and losses.□ Applicable □Not applicable
The Company did not define any non-recurring gains and losses listed in the No. 1 Explanatory Announcement on
Information Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses as
recurring gains and losses.
212024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section III Management Discussion and Analysis
I. Industry Overview during the Reporting Period
In 2024 domestic business faces insufficient market demand while overseas business faces
risks such as regional trade protectionism localized conflicts and a slowdown in global economic
growth putting pressure on performance. However concurrent with this the domestic policy
environment is undergoing positive changes offering the Company greater opportunities to capitalize
on emerging market potential. Demand in emerging economies remains relatively robust and
Chinese enterprises are rapidly pursuing international expansion thereby providing new momentum
for overseas business growth.At the same time the digital economy with artificial intelligence as its important Engine is
becoming an important force in promoting global economic recovery and sustainable development
opening up a broad space for China to achieve high-quality economic and social development. The
emergence of large models has profoundly reshaped the development path of artificial intelligence
driving the rapid evolution of multimodal RAG Agent and other technologies greatly expanding the
application boundaries of artificial intelligence and opening a rare window period for the development
of intelligent processes in various industries. The AIoT industry is driven by the business needs of
customers in thousands of industries. It can give full play to the accumulation of experience in
professional algorithms and scenario applications and realize the effective implementation of
advanced technologies represented by artificial intelligence in various application fields thereby
continuously consolidating the industry's moat. In addition data elements will gradually become a key
strategic resource that affects industrial development. The AIoT industry will focus on the IoT
perception data element industry chain to help promote data as a resource data as an asset and
data as a commodity and continuously enrich business content.With the development of technology digitalization and intelligence have become key forces in
promoting social progress and economic development. In the future the demand for government
digital construction and enterprise digital and intelligent transformation will be further released and
the AIoT industry capability circle is also changing from the integration of customer peripheral
systems into core production and management systems and the industry space is still broad.
222024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
II. Main Businesses of the Company during the Reporting Period
1. Business Overview
The Company is a global leading video-centric AIoT solution provider and operation service
provider. With AIoT and the intelligent IoT data platform as its two major technological strategies the
Company effectively integrates artificial intelligence big data and IoT technologies into its products
and solutions serving the digital innovation of cities and the digital and intelligent transformation of
enterprises.In the urban business field centering on the goal of "efficient urban governance urban operation
autonomy enhanced security system and ecological collaborative governance" we establish an
innovative smart city ecosystem with "unified architecture compatible reuse shared capabilities and
open business." In industries such as transportation traffic police social governance public wellbeing
and ecological environment we deeply cultivate urban business scenarios provide leading AIoT
solutions for various industries in the city serve urban digital innovation and help realize the beautiful
vision of harmonious coexistence between man and nature man and society and man and city.In the field of enterprise business the Company deeply integrates advanced technologies such
as AI and big data with industry scenarios gaining insight into the trend of industrial transformation. It
delves into various industries to explore the digital and intelligent needs of enterprises providing each
customer with high-quality digital intelligence upgrade solutions. In the fields of construction
education manufacturing petrochemistry coal electricity iron and steel agriculture logistics culture
& tourism healthcare finance and commercial chains the Company is actively engaged in
innovative practices focusing on ensuring production safety enhancing production capacity
promoting operational efficiency and optimizing the quality of service (QoS) to achieve customer
value and is committed to becoming a trusted partner for the digital intelligence upgrade of
enterprises.
232024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
In the innovative business the Company based on its in-depth understanding of customers'
diversified needs and years of experience in AIoT continues to explore emerging businesses
including: machine vision mobile robots thermal imaging automotive electronics smart security
inspection smart fire control and storage media.In 2024 the Company has built a broader AIoT capability strengthened integrated connectivity
capabilities activated the value of data elements centered on video and made solid progress
towards the goal of becoming the preferred brand of AIoT.In the technology field the Company continues to strengthen its technological capabilities. In
terms of AIoT we insist on taking video as the core continuously deepening the full-domain 6D
perception capability and building broader connectivity capabilities through visual network integration;
relying on the deep integration of multimodal technologies such as images voice and text with the
Company's industry accumulation we continue to improve the industry's large model architecture
system and build comprehensive scenario-based AI capabilities; through the collaboration of large
and small models and combined with industry business scenarios we accelerate the implementation
of industry large models. In terms of intelligent IoT data platform based on a deep insight into urban
governance and enterprise needs a new platform upgrade has been carried out with data full
lifecycle management as the core to help promote the process of data as a resource data as an
asset and data as a commodity and inject new impetus into high-quality development; relying on the
full-domain 6D multi-dimensional perception technology and multi-connectivity capabilities efficient
aggregation of data across the entire network is achieved a dynamic data base for cities and
enterprises is built and data as a resource is promoted; a graph-digit fusion computing system is
constructed to break through the barriers between view data and business data explore multi-
dimensional features and establish a multimodal relationship network activate the deep value of data
and promote data as an asset; upgrade software engineering capabilities to achieve the free
242024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
orchestration of industry scenario modules large models and graph-digit fusion technologies
enabling efficient urban governance and enterprise digital and intelligent transformation.In the business field the Company continues to empower industry customers to release business
value. In terms of urban business the Company is committed to implementing digital and intelligent
capabilities in thousands of urban scenarios focusing on the four major business areas of social
security urban order governance efficiency improvement and green benefits for the people. It has
profound insights into industry scenario needs and continues to build industry-leading product and
solution capabilities. Through digital and intelligent integration and application innovation it
safeguards the implementation of urban business helps improve urban management efficiency and
provides scientific decision-making support. In terms of enterprise business the Company focuses on
scenario-based digital and intelligent business and actively carries out innovative practices. Through
technology co-creation and business sharing with partners it provides customers with high-quality
digital and intelligent solutions builds a large security system for users creates digital and intelligent
productivity and enhances operational decision-making helping enterprises achieve digital and
intelligent transformation.
2. Organization Structure
The Company has established five major research institutes namely Advanced Technology
Research Institute Big Data Research Institute Central Research Institute Cyber Security Research
Institute and Product Engineering Institute to support the two major R&D product lines of AIoT and
252024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
intelligent IoT data platform empower the three major solution departments of urban business
enterprise business and small and medium-sized enterprise business and with Hangzhou
headquarters as the center establish R&D sub-centers in Xi'an Chengdu Europe and Latin America
orderly expand the layout of the global R&D system meet the ever-changing business needs and
explore the infinite possibilities of technology. After years of development the Company has a
national postdoctoral workstation is a nationally recognized enterprise technology center a National
Industrial Design Center and a national innovative pilot enterprise. With its continuous innovation
capabilities it continues to make breakthrough contributions and lead the industry's development.In terms of innovative business subsidiaries including HuaRay Technology Pixfra Technology
Hirige Zhejiang Huajian Huaxiao Technology and Huayixin are constantly carrying out technological
innovation continuously expanding business boundaries based on the field of AIoT and forming
integration and complementarity with the Group's main business.Under the global business trend the Company has orderly promoted the layout of domestic and
overseas marketing and service systems providing customers with full lifecycle services such as
product and solution consulting design sales delivery and after-sales. As of now the Domestic
Marketing Center covers all provinces and cities and more than 70% of districts and counties and the
Overseas Marketing Center has established 69 overseas branches and its products cover more than
180 countries and regions. The Company has more than 1000 service partners worldwide and has
established more than 170 spare parts centers and spare parts stations.
3. Main Products and Capabilities
In 2024 the Company continues to increase its investment and construction in the "five full"
capabilities pedestal of "full perception full intelligence full connectivity full computing and full
ecology" and establish an industry-leading "video and non-video multimodal perception full coverage
of perception to cognitive intelligence diversified connectivity and end-edge-cloud fusion computing"
262024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
with video as the core of the IoT infrastructure R&D and solution closed-loop services and continues
to maintain the industry leadership of technology and products. At the same time the Company is
actively building an open cooperative and win-win digital technology ecosystem and is firmly
promoting full openness to partners and industry developers from digital infrastructure industry
paradigm applications algorithm capabilities to data intelligence.Full Perception: Through the multi-dimensional fusion application of vision multi-spectrum time
space etc. we can maintain the accurate adaptation of products and technologies to the scenarios
build an industry-leading all-around perception system and accurately present the physical world in
the digital world.Full Intelligence: In response to industry needs to achieve a closed loop from perception
intelligence to data intelligence and then to business intelligence we have built an autonomous
system based on algorithms big data and business platforms to realize customer data value mining
and intelligent decision-making.Full Connectivity: Build a data connection system that adapts to the needs of diversified
scenarios consolidate the data value connection foundation that integrates IoT perception and
information interconnection and continuously improve IoT perception access and integration
capabilities.Full Computing: Fully realize the computing resources including image computing power AI
computing power general computing power etc. uniformly schedule and coordinate end-edge-cloud
computing power and algorithms and build a full-network computing architecture system.Full Ecosystem: The Company aims to facilitate a comprehensive ecosystem for collaboration
across business software algorithms hardware and more fostering an environment of co-
construction win-win and symbiosis while creating an AIoT ecological community.
3.1 Full Perception
The Company insists on taking video as the core continuously strengthening its video perception
capabilities in various extreme environments and under the full-domain 6D perception architecture
continues to expand perception methods in non-video dimensions such as audio radar thermal
imaging hyperspectral and laser enriching product forms to adapt to segmented scenarios in
various industries and providing customers with more comprehensive perception services.
272024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
3.1.1 Video perception technology and products
The Company drives the core with AI technology to achieve full-link intelligent reconstruction of
the video perception system. Driven by the dual engines of vision engine and thinking engine the
cognitive upgrade of traditional camera device to intelligent vision terminal is completed.Regarding technical architecture we continue to consolidate core technology foundations such
as optical imaging intelligent motion control efficient coding transmission and complex
environmental adaptability build a solid technical foundation and fully enable product iteration and
performance leaps. At the terminal product level the Company continues to improve its multi-camera
perception product matrix and through innovative designs such as intelligent multi-camera linkage
multi-camera collaboration and multi-camera stitching it significantly improves the multi-dimensional
scenario coverage capabilities and business execution efficiency of a single device. Aiming at
segmented industry scenarios we have created a professional camera product system covering
vertical fields such as smart security energy and chemical industry industrial inspection and traffic
management which deeply meets the needs of industry scenarios and continuously expands the
boundaries of commercial applications.
282024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Full-color night vision enhancement
With AI vision reconstructing the imaging system the second generation of AI ISP technology is
launched breaking through the performance boundaries of traditional ISPs and comprehensively
upgrading the product matrix: through AI algorithms the SNR of low illumination scenes color
rendition and motion blur suppression are deeply optimized achieving full-color imaging and detail
enhancement at night while completing algorithm lightweight adaptation for the whole series of
products promoting the accessibility of AI night vision. At the same time it promotes three-
dimensional innovation in "algorithm-hardware-scenario" and builds an intelligent vision closed loop
from night imaging to analysis of complex light environments.The Nightvision King series is the first to introduce full-color monitoring without fill light supports
precise detection of a 100-meter perimeter and has the characteristics of anti-flying insect
interference and low power consumption; the Skyscanner/Skyline series are equipped with a large
model enhancement algorithm which significantly improves the capture effect of non-motor vehicles
292024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
and people in the vehicle at night and the mixed-exposure 3.0 technology realizes adaptive speed
tracking of all targets and the hyper DoF technology upgrades the DOF focus to automatic one-click
joint debugging; the Yizhen series is loaded with backlight hunting technology which effectively
eliminates the monitoring blind zones caused by strong light from vehicle lights and ensures all
weather visibility in high-speed scenarios.
(2) Intelligent scenario adaptation
With AI active vision technology as the core it breaks through the bottleneck of complex scenario
imaging and realizes the comprehensive evolution of the product matrix. By dynamically adjusting the
imaging system and optimizing the algorithm the adaptability to scenarios such as backlight fog and
rain and complex indoor light sources is significantly improved achieving a dual upgrade in detection
accuracy and mode switching fluency. In terms of perimeter detection the collaborative computing of
large and small models is introduced to effectively suppress false alarms caused by sudden changes
in light and rain interference enhance the ability to recognize unconventional postures such as
crawling/rolling and simultaneously improve the detection distance and accuracy. In terms of
innovative and precise retrieval functions it relies on real-time structured feature extraction on the
terminal side and distributed edge computing architecture to achieve concurrent image search on
multiple devices in the local area network getting rid of the dependence on traditional high-computing
power servers.The Acupick/TIOC series are equipped with collaborative perimeter and scenario adaptation
technologies; the triple-lens 100-meter perimeter camera achieves 100-meter coverage with a single
device through multi-focal length range relay; binocular box camera/PTZ and other devices build a
multi-directional multi-camera surveillance network supporting flexible adjustment of visual angles
and ultra-wide-area monitoring; the multi-camera linkage series upgrades AST variable-level
acceleration and target association deduplication technology greatly improving the linkage tracking
efficiency and stability. Technological innovation deeply empowers accurate perception and efficient
operation and maintenance in scenarios such as security and traffic.
(3) Definition of professional scenarios
302024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
The scenario-defined series deeply integrates technological innovation and scenario
requirements relies on technological accumulation and scenario insights targets the pain points of
the industry's digital transformation and provides customers with products precisely defined by
scenarios.In the field of electricity related products can achieve millimeter-level precise positioning of the
PTZ system complete automatic collection of instrument data and realize AI identification of foreign
objects on power lines in an environment without network or electricity. In the field of hydrological
monitoring 4G radar water level meters are used to achieve an accuracy of ±1mm breaking through
the bottleneck of extreme weather monitoring. In mining scenarios the first self-cleaning camera
solves the problem of lens contamination underground its ultra-small size enables enhanced control
of dangerous areas and its sound-seeking technology optimizes underground intercom effects. In the
field of transportation the product can respond rapidly and combine with ITO heated glass to adapt to
vehicle-road collaborative scenarios. In the field of urban management smart parking construction is
promoted through 4G wiring-free high-position cameras or video poles. In the port and shipping field
remote-controlled cameras conquer the challenges of strong vibration scenarios enabling remote and
precise control of port machinery. In the field of intelligent manufacturing the camera adopts a
miniaturized body and a triple anti-vibration structure combined with high frame rate imaging to
accurately capture high-speed moving targets comprehensively improving industrial quality
inspection efficiency.
312024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(4) All-time guarding without electricity or network
In response to the country's low-carbon environmental protection transformation requirements
the Company upgraded its low power consumption technology platform and significantly reduced the
power consumption of devices through technologies such as dynamic partition power-off control. The
newly added AOV (low power consumption full-time video duty) mode can still ensure 24-hour
uninterrupted recording under extremely low power consumption and you can get the experience of a
long-power camera without wiring.Based on a new generation of low power consumption platform the Company has launched a
series of energy-saving wireless cameras equipped with a wide operating temperature battery design
that can cope with the needs of use in various temperature environments. Relying on the features of
improved product endurance and wide operating temperature batteries the application scenarios of
cameras can be expanded.
(5) HD coaxial
The high-definition coaxial series continues to innovate based on customer scenario needs: the
full-color 3.0 is equipped with sharp/zoning illumination technology to solve the pain point of uneven
brightness; the dual-light full-color achieves full-time monitoring through dynamic perception and
intelligent light switching reducing deployment costs; the new PT series products use self-developed
technologies such as dual-light coaxial and senseless hybrid zoom breaking through the limitations
of traditional zoom and expanding application scenarios such as perimeter protection.
3.1.2 Full-domain perception technology and products
Based on the "full-domain 6D perception" product technical architecture the Company continues
to expand perception methods in more non-video dimensions such as audio millimeter wave and
322024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
radio frequency integrating intelligent analysis and judgment of data from various dimensions further
improving the product's perception adaptability and information correlation capabilities and tapping
the value of the AIoT industry.
(1) Millimeter-Wave Radar Perception Products
Through algorithm optimization we continuously improve detection precision and effectively
reduce the false alarm rate. We have built four major product matrices for security transportation
volume and health care: security radar which can be used to cover the perimeter protection of power
stations; traffic radar which can support overload control traffic dispatching and railway intrusion
prevention scenarios; volume radar which can achieve three-dimensional measurement of stock piles
and silos; health care radar which monitors human posture and health status.We further expand products in the field of radar and vision fusion and form a full-link solution
from perimeter protection to smart transportation through scenario-based product combinations. For
example the "Sentinel" series is equipped with the VRF2.0 algorithm to achieve feature-level fusion
of video and radar and is widely used in scenarios such as holographic intersections and traffic alerts.The overseas Spotter speed measurement column adopts a modular design to meet the needs of
speeding capture and violation management.
(2) Audio perception products
332024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company continues to build and improve a full-link audio and video technology system
covering the entire process of audio collection transmission and processing. Through enterprise-
level development standards and audio encoding and decoding quality optimization event detection
speech recognition and other technologies it ensures sound field adaptability and sound quality
intelligence. In the field of industrial audio we have made breakthroughs in exclusive filtering
algorithms frequency domain feature extraction and cross-channel simulation technology created a
closed-loop link between vibration collection and algorithm analysis and launched the ASD8000
audio intelligent hub product which realizes functions such as anomaly detection of industrial
transformers and bearings and identification of square dance nuisances. It is widely used in
scenarios such as electricity steel and public security. At the same time we further deepen the
innovation of interactive audio form a multimodal solution matrix and deeply empower industrial
detection and public safety management.
(3) Multi-frequency domain perception products
The Company innovatively integrates multi-spectrum technologies to construct a full-domain
perception system. Spectral detection device conducts corresponding component analysis based on
342024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
the absorption characteristics of materials such as laser gas meters to detect leaks of flammable and
noxious gases and hyperspectral water quality meters to sense and ensure water safety; the full-
domain Hubble system achieves panoramic monitoring and smoke identification by integrating visible
light and thermal imaging and is used in forest fire prevention border and coastal defense and other
fields; the digital license plate and radio frequency video all-in-one device uses independently
developed UHF RFID technology to enable electric vehicle management contactless passage and
urban illegal parking management. At the same time we expand visibility detectors sonar "Sentinel"
and other diversified perception device to continuously deepen the scenario solution capabilities.
(4) Wireless alarm products
The Company's alarm product series has been deeply engaged in wireless technology released
AirFly4.0 technology optimized and expanded protocol standards and built a new software
framework which has greatly improved data transmission speed stability access efficiency and low
power consumption performance. Based on customer needs and business scenarios the product
system and functions have been improved: cloud business capabilities are continuously improved to
optimize user experience the Converter baseline functions and cloud API interfaces are improved to
make ecological access more convenient and the connection between multiple alarm software and
alarm operation centers is completed to help the product open the alarm operation pipeline.
3.1.3 Intelligent interactive technology and products
The world of physics is rich and colorful. In many scenarios there are rich interactions between
people and people as well as people and things. Multidimensional awareness is applied to refine the
real world with multivariate connection to collect data and intelligent computing to build scenarios of
digital intelligence so as to finally make things an extension of people's touch improve the interaction
between people and things and bring people closer. The Company has launched various intelligent
interactive products in multiple fields and scenarios including vehicle management personnel access
management smart office access control intercom and alarm hospital care industry new energy
352024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
etc. to promote the continuous progress of society.
(1) Human settlement field
? Vehicle management induction scenario
In the field of smart parking we perfectly combine video with display and mechanical control to
continuously optimize the entrance and exit experience improve the accuracy of license plate
recognition and product stability create a series of industry-leading products such as springless
barrier gates and springless barrier gate all-in-one devices reduce the operating costs of parking lots
and improve management efficiency. At the same time we provide innovative integrated parking and
charging solutions to address the issue of new energy charging space occupation and optimize user
experience.? Personnel entrance and exit management scenario
In the field of personnel access the Company has created an intelligent personnel access
system that integrates intelligent identity verification access behavior perception and interaction and
local and remote management. It can be widely used in unmanned passages in high-end office
buildings smart parks smart campuses smart culture & tourism transportation hubs commercial
complexes and other building entrances and exits bringing users an ultimate seamless access
experience.? Building interaction scenarios
362024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Building interaction scenarios have penetrated into people's daily lives including various smart
products such as access control video intercom and emergency assistance.In the access control series the company has comprehensively upgraded product value based
on technological progress: improving the security protection capabilities of the access control system
and launching the national secret and palm vein recognition series access control; bringing users a
smoother user experience achieving 0.1 second ultra-fast and seamless recognition; helping
customers achieve business value-added the product supports one-click cloud access realizes
Mobile Client configuration and management and integrates advertising playback functions which
are applied to electronic doorplate display park community announcement release and commercial
advertising.In the field of video intercom the Company always adheres to the people-oriented concept
provides owners with a convenient living experience and builds a solid line of defense for community
safety. Optimize the business processes between visitors owners and property management centers
and integrate humanized functions such as one-click elevator call community announcement
broadcast and intelligent voice dialing.? Smart office scenarios
372024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Relying on the foundation of AIoT capabilities the Company has intensively researched core
technologies of interaction and video continuously enriched its smart office product system
continued to innovate and hone its competitiveness improved product performance and user
experience and helped expand the global education and conference markets. In 2024 we launched
the new "Yuexiang Pro S2" and "Professional S2" series of conference tablet products and a series of
educational tablet products and collaborated with Deephub board Deephub Class and other
software to provide the ultimate audio and video interactive experience and create selected solutions
for education and meetings.? Medical intercom scenarios
In the hospital nursing scenario the Company takes "building a barrier-free communication
bridge between nurses and patients" as its core goal and fully upgrades the intelligent medical
intercom system. It supports one-click dressing change and high-definition audio and video instant
intercom ensuring that medical staff can respond to patient needs at the first time; through precise
nursing positioning function it optimizes the scheduling efficiency of medical staff; the system
displays its nursing level identification on the bedside extension to effectively prevent the occurrence
of nursing omissions. The system design fully embodies the patient-centered service philosophy and
provides strong technical support for establishing a harmonious doctor-patient relationship.? Display and control scenarios
In the field of display and control the Company aims to meet the efficient command needs of
scenarios such as urban operation centers hub dispatch centers and medium and large command
382024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
centers while improving project deployment efficiency and user experience. It has launched
innovative products and solutions such as the integrated video platform M80 K series MLED
controller and Taishan decoder. By integrating AI technology it has created three smart scenario
applications: unmanned screen shutdown large-screen fire protection and intelligent
dehumidification providing users with more efficient and convenient services.
(2) Industrial field
In the field of smart electricity use by integrating information technology and IoT technology we
help improve the safety economy and convenience of the power system. The Company launched the
third-generation smart air switch products upgrading the metering accuracy and breaking capacity to
provide more accurate and safer power supply protection. We apply load identification technology to
smart plug products to monitor the end circuit in real time to meet the needs of dormitories office
areas and other places for the control of prohibited electrical appliances. We enrich the intelligent air
conditioner control system and improve the level of intelligent operation and energy utilization
efficiency.
(3) New energy field
The Company has seized the development trend of new energy and achieved a major
breakthrough from scratch in the field of new energy chargers launching a variety of charger
products to fully meet the charging needs of new energy vehicles. We have released solutions such
392024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
as integrated charging and parking commercial operation and home IoT for parks cities and cloud
scenarios providing one-stop services such as vehicle parking management charging management
intelligent operation and maintenance and station operation to create a safer smarter and more
convenient ultimate user experience.
3.1.4 Intelligent IoT edge technology and products
The intelligent IoT edge series is an intelligent product that combines IoT and edge computing.As an edge management and control center it is combined with video perception products to form
different application solutions. Various video audio alarm and sensor devices can be accessed and
managed and data can be collected processed stored and analyzed in real time to achieve a
localized business closed loop without relying on the cloud supporting rapid decision-making and
response. The product integrates multiple industry application algorithms and is widely used in
scenarios such as industrial automation logistics warehousing and commercial buildings.The Company has launched a series of products based on domestically produced hardware and
the Harmony operating system. The product supports massive IoT protocols and super AI computing
power meets the access management of IoT sensors and control devices in various industries
realizes the deep integration of IoT data and video AI capabilities and provides end-to-end AIoT
solutions for the edge of various industries.
3.2 Full Connectivity
In the era of digital video network products and video systems need to be deeply integrated.With "visual and network integration" as the core concept and "easy to install easy to configure and
easy to maintain" as the goal the Company has created a "one integration and three easy-to" product
and technology system to upgrade the "full connectivity" capability. The cloud has reshaped the
startup configuration and operation and maintenance methods of video and network systems
allowing for quicker startups simpler configurations and more efficient operation and maintenance. In
addition we have launched a complete product portfolio and solutions including wired networks
wireless networks optical networks industrial networks etc. for different usage scenarios.
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3.2.1 Wired transmission
In 2024 the Company built a new generation of network operating system continuously enrich
the wired transmission product system and completely upgraded the core aggregation access
management and access cloud management switches to achieve zero-configuration startup whole-
network management whole-network VLAN batch division and other visual and network integration
features effectively simplifying the configuration and operation and maintenance methods of wired
transmission products and improving user operation and maintenance efficiency.
3.2.2 Wireless transmission
In the field of wireless transmission the company aims to meet users' needs for convenient use
simple installation and diversified access. It loads the innovative technology of "visual and network
integration" into wireless transmission products for various scenarios enriches the wireless
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transmission product system optimizes product performance and makes wireless transmission
products start faster configure easier and use smoother. For example based on the eSync fast
networking technology wireless terminal devices can be configured with one click the roaming
algorithm is optimized to bring users an ultimate seamless roaming experience and the video
network and office network can be isolated with one click creating a convenient and stable wireless
transmission network for users.
3.2.3 Industrial scenario transmission
In the industrial transmission scenario the Company has upgraded its entire series of industrial
network products achieving cloud integration for these products. The product supports fast ring
network visual topology batch VLAN configuration intelligent analysis and alarm and cloud
configuration management improving the usability and reliability of network products in industrial
scenarios.
3.2.4 All-optical network
In the field of all-optical networks in response to the converged communication needs of video
data and voice services in park networks in scenarios such as enterprise parks and schools passive
optical communication technology is used. In 2024 a full range of frame-type and small-box local-end
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aggregation OLT products and terminal access ONU products with rich features and complete
specifications were launched to create a new generation of all-optical park networks with high
capacity large bandwidth long distance and simple deployment for users.
3.3 Full Computing
When facing diverse scenarios the diversity of computing becomes an inevitable trend. The
Company's "full computing" architecture is based on multiple dimensions such as edge intelligent
computing central intelligent computing intelligent storage and cloud computing providing stronger
faster more secure and reliable computing power for multiple fields. Combined with the application of
large models in "full computing" it builds a sustainably driven full-stack innovation to help cities
govern efficiently and enterprises achieve digital intelligence upgrade.
3.3.1 Intelligent computing
With the application of intelligent technology the integration of digital technology and the real
economy continues to accelerate; data has become a new productive force and intelligence has
become the most effective and powerful production tool. With the promotion and application of large
model technology in the AIoT industry intelligent computing has gradually moved from traditional
pure-view algorithms to a new stage of multimodal algorithms. New algorithms generated by large
model zero-sample capabilities can quickly verify business scenarios and complete business
matching evaluations. Through the fine-tuning capabilities of large models with few samples
intelligent project construction can be quickly implemented accelerating the process of industry
intelligence. The Company's intelligent computing makes breakthroughs in computing power
construction architecture complementation and digital intelligence middle platform integration.
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Through virtualization containerization and other deployment methods the Company can quickly
realize the full compatibility of high-performance computing resources adapt to all kinds of CPUs
GPUs and NPUs and fully realize resource pooling.
(1) Computing power construction: As localization and independently controllable open source
projects become increasingly mature the Company has completed the localization of full-link
products covering end-edge-cloud computing power; realized the resource pooling of computing
power (such as image computing power AI computing power general computing power and special
computing power); leveraged accumulated industry experience and collaborated with partners to
carry out technological innovation such as chip virtualization computing power segmentation and
professional comparison computing to provide strong computing power support for full-link
localization. To meet customers' high requirements for algorithm performance we continuously
optimize cross-hardware model quantization achieve cross-hardware precision alignment realize
end-edge-cloud computing power collaboration and efficiently leverage the value of computing power.
(2) Architecture complementation: In order to meet customers' scenario-based needs in
differentiated long-tail scenarios the Company uses the advantages of four different architectures
namely multi-agent architecture embedded computing architecture video cloud computing
architecture and training architecture based on professional algorithms open algorithms and large
model algorithm capabilities.
(3) Digital intelligence middle platform: In order to maximize the advantages of the Company's
computing power and architecture the digital intelligence middle platform will focus on the capability
level provide intelligent services for the upper-level application platform connect multiple capabilities
such as professional algorithms training algorithms large model algorithms and data computing
enhance the intelligent application of algorithms assist in the incubation of emerging intelligent
businesses and provide an intelligent foundation for ecological partners.In order to process massive amounts of AIoT data the Company has carried out comprehensive
product upgrades in the field of intelligent computing. Including: central intelligent products edge
intelligent boxes storage and intelligence all-in-one devices intelligent storage EVS and other
product series.
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3.3.1.1 Edge intelligent computing
The Company is committed to deepening edge computing in the industry continuously exploring
business specifications in various fields upgrading technical applications such as algorithm
orchestration false alarm filtering and algorithm paradigms and effectively solving the problems of
massive data processing real-time response and data security faced by AI in industry applications
realizing more intelligent management and services.The Company has released the Dahua Shensuan all-in-one device. Dahua Shensuan integrates
storage computing and management. Based on reliable storage safe monitoring and efficient query
it continuously enhances capabilities in image recognition video analysis and behavior prediction.The algorithm shelf covers energy security electricity coal mining emergency management financial
compliance natural resources behavior analysis and other subdivided industry intelligence. The
algorithm shelf realizes the free combination of algorithms in different industries and combines the
highlight functions such as multi-intelligent parallel intelligent patrol tidal intelligence etc. to provide
more accurate and efficient intelligent monitoring solutions. At the same time the product has recently
introduced advanced large model technology applying the generalization and high precision of large
models to quickly respond to the fragmented needs of edge scenarios. This enables faster more
accurate and intelligent decision-making during the application process.
3.3.1.2 Central intelligent computing
In terms of technology the Company continues to build a unified open intelligent architecture
and by improving the intelligent middle platform framework and upgrading the view intelligence
engine it provides a basic foundation for intelligent advancement thereby building an intelligent
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ecosystem and incubating emerging intelligent businesses.At the same time based on different business demands we comprehensively upgraded our core
capabilities in two fields: in the field of specialized intelligence in all factors of storage computing and
inspection; Through multimodal algorithms feature indexing technology and domestic hardware
adaptation high-precision perception analysis and large-scale data retrieval are achieved enabling
city-level big data applications; in the emerging long-tail intelligence field the "algorithm training
engine + algorithm warehouse + rule engine" model is used to support cloud-edge-end collaborative
scheduling quickly generate adaptation algorithms and flexibly deploy them and open up ecological
cooperation links through standardized interfaces.In terms of products the Company launched the Sky Series all-in-one devices and large model
intelligent engines carrying the Dahua large model capabilities and fully promoting the
implementation of the industry's large model product business.The Sky Series all-in-one device integrates computing power industry algorithms platform
applications computing warehouse management and algorithm training through deep collaboration
between software and hardware providing customers with a one-stop solution. The all-in-one device
comes with a built-in capability base integrating innovative technologies such as AI supervision
optimization multi-algorithm orchestration and holographic multi-dimensional engine. At the same
time it can be organically combined with the business of ecological partners to achieve a single-
device scenario-based AI closed loop leading the implementation of industry intelligence.The large model intelligent engine product adopts a software-hard decoupling solution
integrating capabilities such as large- and small-model collaboration zero-sample new algorithm
generation and small-sample large model fine-tuning to create a private localized self-closed-loop
large model solution. Based on the capabilities of multimodal large models we can objectively and
accurately describe real business scenarios form intelligent applications in vertical fields
autonomously plan business paths from the end to the beginning deeply explore the value of graphs
and efficiently coordinate multiple algorithm models to serve the industry's intelligent upgrade.Through technologies such as domain distillation and model quantization the miniaturization of large
models is achieved ensuring efficient operation of the model and resource optimization. In
engineering practice we combine small model applications to achieve multi-model collaboration
optimize computing power resource allocation accelerate the application of large models in
thousands of industries and build large model products that can think reason and be affordable.
3.3.1.3 Intelligent storage
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With the advent of the IoT information age multi-dimensional perception data such as videos
images audio and documents are growing explosively and the diversification and complexity of
storage needs are placing higher demands on data storage.Traditional storage is limited by hardware space storage data access methods and other factors
making it unable to meet users' huge data storage and high-performance processing challenges. The
Company's intelligent storage uses single controller and dual controller as the hardware base based on
streaming storage capabilities it integrates data redundancy cluster strategy encryption and other
technologies to reduce the risk of single point failure and achieve safe and reliable data storage.Combining technologies such as intelligent analysis rapid data structuring storage intelligence and
management integration we achieve quick pick of target data long-term storage of value data and a
closed-loop operation of edge data thereby imparting new value to centralized data storage.The intelligent storage EVS product adopts a modular design and supports multiple product forms
such as single-control dual control dual-channel and high-density storage. It integrates RAID
technology and unified cluster management technology to build multiple data protection mechanisms
and combines large-capacity hard drives to ensure long-term and highly reliable data storage. The
relevant products have technical features such as multi-channel intelligent balanced scheduling
complete localization of all components of the device and dynamic storage strategy adjustment.
472024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
3.3.2 Cloud computing
In the process of transformation from traditional data centers to the cloud we face many
challenges such as chimney-style duplicate construction and long construction cycles. In order to
improve resource utilization simplify management and O&M and ensure safe and stable business
operation the Company has launched cloud computing solutions to integrate underlying physical
resources provide rich cloud services such as computing storage network and PaaS and manage
cloud infrastructure throughout its full lifecycle becoming a powerful engine for customers' digital
transformation.
(1) Cloud platform: The Company provides a new generation of efficient and agile cloud-native
computing base for diverse computing scenarios of AIoT realizing resource pooling of basic
computing resources and hybrid deployment of multiple loads such as big data/intelligent
analysis/application software meeting the needs of unified management efficient resource utilization
flexible service deployment and reliable disaster recovery. Based on a deep understanding of cloud
native and video industry business we have launched a series of cloud products such as cloud
management platform container cloud platform hyper-convergence and universal storage covering
high medium and low product forms and seamlessly elastically expanding from a single device to a
large-scale cluster providing users with more inclusive cloud solutions and helping government and
enterprise customers build a new generation of digital infrastructure.
(2) Cloud storage: The Company provides large-scale video cloud storage services for city-level
and enterprise-level customers. After more than ten years of technological accumulation it offers
capabilities such as multi-device access multi-channel large-scale video access and storage and
streaming media distribution. Relying on long-term technical research and development such as
native distributed file system technology domain optimization software and hardware integration and
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dynamic fault tolerance it has built an ultra-large-scale four-level (disk level node level rack level
storage pool level) reliable data storage capability.
(3) Big data storage and computing components: Over the past decade the Company has
been facing the real-time access storage and retrieval of massive perception data as well as the
processing needs of complex scenarios. It has continuously accumulated a wealth of practical
experience and has made long-term investments in the fields of software and hardware integration
dynamic fault tolerance index optimization reliability distributed technology and data security. It can
provide customers with centralized databases distributed database services Hadoop and other
storage components with industry-specific capabilities automatically complete the access of IoT
perception device data automatically and evenly distribute data and provide efficient retrieval
services achieving a stable reliable and out-of-the-box experience. On the other hand in the face of
diversified video IoT data computing scenarios we continue to optimize the kernels of computing
components such as Spark and Flink provide industry-specific differentiated capabilities and meet
the offline and real-time computing needs of graph-digit fusion services. The big data storage and
computing components on the cloud significantly reduce the development operation and
maintenance and implementation costs of the business platform docking with storage and computing
components and can serve a wide range of government and enterprise customers.
3.4 Full Intelligence
As artificial intelligence and big data technologies accelerate their industrialization the Company
is guided by scenario-based applications focuses on core technology research insists on scientific
and technological innovation actively explores and promotes breakthroughs and applications of new
technologies such as large models and multimodal AI continuously consolidates the foundation of AI
engineering builds full-stack capabilities of large models and continuously promotes the
industrialization and commercial success of AI. At the same time we deeply explore the connotation
of view data release the value of data promote the comprehensive upgrade of human-computer
interaction and fully assist the digital intelligence upgrade of cities and enterprises so as to achieve
the closed loop from perceptual intelligence to data intelligence and then to business intelligence
creating business value for customers with "full intelligence" capabilities.
(1) Artificial intelligence
Artificial intelligence large models have become an important tool for industrial innovation and
unlocking new quality productivity. Multimodal large model technology with vision as the core has
gradually begun to be applied in various industries. The Company regards artificial intelligence as one
of its core strategies and has always been committed to the research and innovation of the world's
492024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
leading artificial intelligence technologies focusing on vision as the core main channel and
continuously optimizing its comprehensive and leading artificial intelligence research and engineering
capabilities. Focusing on industry business and driven by large model technology we continue to
consolidate AI industrialization capabilities and accelerate the digital and intelligent transformation of
various industries.At present the Company has national enterprise technology centers national post-doctoral
scientific research workstations Zhejiang Enterprise Research Institute Zhejiang Engineering
Research Center Zhejiang Provincial Key Laboratory and AI R&D teams with more than 1000
members. It has won the first place in more than 70 AI algorithm competitions and evaluations at
home and abroad published more than 140 papers in core journals applied for more than 2700 AI
patents and undertaken 26 national and provincial-level AI research projects. During the reporting
period the Company applied for more than 270 AI invention patents obtained more than 400 patents
authorization and undertook four national and provincial and ministerial artificial intelligence scientific
research projects.
3.4.1.1 Development trends of artificial intelligence
The emergence of large models has greatly changed the trajectory of AI development.Multimodal large models RAG Agent and other technologies have developed rapidly expanding the
application areas of artificial intelligence and bringing unprecedented opportunities and challenges to
all walks of life. In 2023 the Company launched the Dahua large model a multimodal big model with
vision as its core which greatly improves visual analysis capabilities by integrating multimodal data.In 2024 the Company rapidly iterated large model applications around actual business operations
accelerated the implementation of industry intelligence and realized value from multiple angles. In
some industries large models have penetrated into core businesses and by reshaping core business
systems the industrial and commercial value of large models can be truly realized.
(1) Rapid development of multimodal large models
The traditional large model is only good at processing text information. Some new technologies
try to allow large models to integrate data from multiple modalities such as images videos and audio
and have launched a variety of multimodal large models. Among them visual language models (VLM)
are particularly noteworthy. The visual language model can learn rich visual language correlations
from massive amounts of image text. Only one VLM is needed to achieve visual parsing tasks such
as image understanding target localization and image-text question and answer. Although the
general VLM may not be as good as the dedicated small model in specific functional indicators it can
outperform the small model in the field on specific tasks by generating multiple task plug-ins with
smaller parameters through industry data supervised fine-tuning (SFT). In addition VLM is also
502024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
developing towards miniaturization. Small models with a parameter scale of about 0.5B to 3B can
also achieve good results in visual parsing tasks and have strong generalization capabilities. The
rapid development of VLM will have a great impact on the AIoT industry and video application fields.
(2) AI agents are moving towards applications
Recently people have built a series of agents based on traditional LLMs that is users input
instructions and after the large model understands them it calls the corresponding tools in the
intelligent body to output the desired results thus realizing an intelligent closed loop of the business.The intelligent agent is endowed with the ability to actively think plan and execute tasks. It can
actively perceive the environment and understand task objectives independently select solutions
interact with the external environment continuously improve model capabilities through the "data
flywheel" and continuously enrich functions by concentrating various intelligent tools ultimately
autonomously realizing a closed business loop.
(3) Large model technology migrates from the center to the edge
In 2024 with the emergence of various optimization technologies powerful large models are
becoming compact and the enhancement of edge computing power creates conditions for the
deployment of large models on terminals. The edge-side large model can process data locally
avoiding privacy leaks and compliance risks that may occur during the transmission process and it
does not need to transmit data and interact over the network. The response is more timely and it can
be customized according to user needs providing personalized services and improving timeliness
and flexibility. In addition the enhancement of the capabilities of the edge-side large models will make
devices smarter and services more precise. Through the coordinated deployment of cloud-edge large
models more powerful AI solutions can be created promoting the widespread application of large
models in all walks of life.
3.4.1.2 Strengthening the “1+2” artificial intelligence capability system
After years of continuous accumulation the Company has built a "1+2" artificial intelligence
capability system namely 1 set of architecture system plus 2 supports of scientific research capability
and engineering capability. In 2024 the Company focused on comprehensive upgrades of large
model technology achieved significant improvements in large model technology research and
engineering implementation capabilities and released version 3.0. The four-layer technical
architecture enables seamless integration of large and small models giving full play to the technical
advantages of each model. In terms of scientific research capabilities we have laid out advanced
basic technology research such as language large models visual large models and multimodal large
models. In terms of engineering capabilities a research and development system centered on
algorithm components has been established to promote small models with large models and assist
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large models with small models supporting the efficient deployment of algorithms in the cloud edge
and end user.
(1) Continue to improve the four-layer architecture system to efficiently meet scenario-
based AI needs
? Continuous upgrade of the Ginn AI platform
To achieve large-scale industrialization of AI it is necessary to possess efficient end-to-end
solution development and delivery capabilities. The Company continues to focus on investing in
building the Ginn one-stop AI development platform. The Ginn development platform is a one-stop AI
development platform for developers which realizes the full work flow management of AI
development from data processing model training optimization and transplantation algorithm
management solution development to algorithm verification and testing. In 2017 the Company built
a high-performance computing center; in 2019 the Company released a full-stack algorithm
development platform to realize a full-chain closed loop from data management to solution delivery; in
2021 the Company upgraded and released an assembly solution development platform; in 2023 it
developed a work flow system for scenario-based algorithm development. In 2024 with the
widespread application of large models in natural language processing computer vision speech
recognition and other fields efficient large model development and delivery capabilities were
required. The Ginn AI development platform focuses on large model business and continuously
upgrades and improves the full-link online capabilities of AI development. It supports intelligent
annotation of different types of data such as images texts videos and audios with a processing
capacity of 100 million per day; it develops its own large model reasoning framework to support
cross-platform deployment of mainstream models; it upgrades the large model work flow system to
achieve full-link support for large model data processing training reasoning evaluation application
deployment and traceability thereby improving the development efficiency of large model businesses.? Algorithm components complete the technical upgrade of large models
522024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Based on a large number of scenario-based application solutions the Company has
accumulated a series of general algorithm components switching the algorithm development model
from "solution-centric" to "algorithm component-centric" effectively improving the reusability of the
algorithm. The large model technology of multimodal fusion has achieved a qualitative improvement
in visual understanding capabilities. By adopting large model technology we have achieved technical
upgrades of small model algorithm components and the algorithm effect has been significantly
improved while maintaining low computing power consumption. At the same time relevant large
model algorithm components have been accumulated significantly improving the development speed
of industry large models. The entire system has opened up the collaboration and call of large and
small models accelerating the upgrading of small model technology and the implementation of large
model technology.? Build comprehensive scenario-based AI capabilities
Faced with the massive scenario-based intelligence demands that have emerged during the
industry’s digital and intelligent transformation the Company has gradually established a scenario-
based intelligent algorithm development system that can be efficiently implemented after years of
exploration and innovation covering technical models such as professional customized development
general algorithm paradigms lightweight training large model custom functions and more accurate
on-site use. Comprehensive scenario-based AI capabilities enable different customers to select
suitable AI development models according to their unique business characteristics significantly
enhancing the richness and efficiency of scenario-based algorithm supply and accelerating the
process of inclusive AI.The general algorithm paradigm extracts general technical methods from numerous fragmented
demands to meet specific types of demands transforms customization into generality and realizes
new function support through rapid configuration to satisfy scenario-based intelligent needs. Large
model custom recognition technology opens up the imagination space for scenario-based intelligent
business quickly converting what users want into smart features while ensuring the effectiveness of
the algorithm; the more accurate on-site use technology achieves continuous optimization of AI
solutions to better meet actual business needs.
(2) Actively lay out new AI technology fields around industry development trends
? Innovative integration technology of AI and spatial intelligence creating a new form of
application in the digintelligent twin industry
Spatial intelligence technology has greatly promoted the deep integration of the digital world and
532024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
the physical world. In 2024 the Company proposed the concept of digintelligent twin and created the
Luban series of products which originated from the Company's accumulation and breakthroughs in
three-dimensional spatial intelligence technology. The Company has developed video fusion
technology that allows video images from multiple cameras to be synchronously stitched and fused in
a three-dimensional model giving the traditional twin model rich real-time dynamic information. The
Company continues to delve into automated modeling technology and has launched a complete set
of modeling algorithm solutions including reconstruction and texture mapping which solves the
problems of high cost and poor realism of traditional manual modeling and significantly reduces the
delivery and O&M costs of projects. The Company has developed 3D vector positioning technology
which can accurately locate sensors and target positions based on the structural relationship
constraints of spatial vectors in the scenario realize smart features such as field of view analysis
camera recommendation and smart deployment and has applied it to scenarios such as enterprise
energy and public wellbeing.? Build audio algorithm basic capabilities to improve the audio capabilities of industry
products
As an important perception dimension the Company continues to build an audio algorithm
technology system and effectively implements audio processing speech recognition audio detection
and other technologies into various product series of the front and back ends of AIoT. In terms of
audio processing technology the main goal is to improve audio quality and retain the target voice.Audio AI noise reduction technology is used to effectively remove non-target audio signals improve
audio quality and make communications clearer and more understandable. In terms of speech
recognition technology it realizes speech content recognition and builds lightweight wake-up word
and command word algorithms from 0 to 1. In terms of audio detection technology by detecting and
identifying specific types of signals combined with other perceptions such as vision event alert and
analysis are be achieved; by loading AI detection technology abnormal audio detection algorithms
such as sound intensity sudden change mute and smashing are improved; specific audio signal
detection algorithms are upgraded to improve product operation and maintenance automation and
sound event detection such as baby crying and audio detection algorithms for industrial device failure
are developed.? Relying on the intelligent practical experience in the field of AIoT develop low-altitude
intelligent scenario applications
The Company actively responds to the low-altitude economic policy and is committed to
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expanding the innovative application and intelligent development of the Company's technologies and
related products across multiple industries. We researched and sorted out the technical
characteristics of low-altitude mobile scenarios refined generic object positioning operators and
algorithm modules such as target detection and scenario comparison and quickly launched more
than 30 intelligent solutions such as smoke and fire illegal construction and engineering truck
detection and positioning. We deeply explore the pain points of customers in low-altitude scenarios
use intelligent algorithms in the low-altitude field as a link connect satellite and high-point camera
data provide unified geographic information embedding capabilities complete the spatiotemporal
alignment and feature fusion of three-dimensional multi-data and achieve efficient integration and
analysis of multi-scale and multi-dimensional spatial information. We have launched algorithm
solutions such as natural disaster detection forest destruction and coastal change monitoring and
effectively support customers in multiple industries such as emergency response urban governance
and public wellbeing to create low-altitude intelligent application demonstrations.? Develop a new generation of radar vision multimodal fusion technology to advance the
development of the vehicle-road collaboration industry
We have developed end-to-end radar-vision multimodal fusion technology. From the perspective
of Bird's Eye View (BEV) the point cloud features that represent spatial position speed and size are
aligned and fused with fine visual texture features. The traditional radar vision target-level fusion
method is upgraded to a feature-level fusion method fully tapping the advantages of radar spatial
perception and deeply understanding visual semantic information. The radar vision multimodal fusion
technology realizes the complementary advantages of multi-sensor data and significantly enhances
the target perception capability in various harsh environments. The data fusion accuracy is improved
by 20% and the effective perception range is extended to hundreds of meters realizing ultra-long-
distance target capture speed measurement traffic statistics event detection and active safety
warning. The lane-level steering flow accuracy is over 95% and the speed measurement and capture
accuracy is over 99%. Related technologies have been applied in the Company's monocular radar
binocular radar speed measurement all-in-one device and other products helping to upgrade traffic
signal control holographic intersections vehicle-road-cloud and other businesses.? Systematic safety technology throughout the entire process ensures the safety and
reliability of large models
Large model technology is booming and its capabilities are constantly being enhanced and
extended. The accompanying large model security risks have attracted widespread attention and
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become a major challenge to the application of large models. From the perspective of model training
the security issues of large models mainly include the source security of data corpus the content
security of corpus and the annotation security of corpus. From the perspective of model application
the main dimensions are traditional security (property privacy crime ethics) command attacks
(negative inducement unsafe role-playing unsafe command themes target hijacking) and
responsibility (social harmony psychology and compliance with laws and regulations). In order to
ensure the security and reliability of the delivered large model algorithms the Company mainly uses
data enhancement perturbation and cleaning to reduce data risks and fine-tunes the model to
eliminate the original model backdoors and data poisoning. It uses collaborative feedback
reinforcement learning between humans and AI to ensure that the model’s values are consistent with
expectations and calibrates model biases based on contextual learning technology. The above
technologies can effectively improve the reliability robustness privacy and fairness of large models.
(3) Continuous optimization of AI engineering capabilities
? Orderly promote the localization deployment of large models
Large models with billions of parameters require powerful computing power to support them.Based on the experience in small model industry applications the Company has accumulated rich
foundational capabilities for model deployment in domestic chip applications. Starting from the
industry’s large model R&D stage in 2023 the Company has deepened cooperation with mainstream
domestic chip manufacturers to explore training and verification work based on domestically
produced chips. In 2024 the Company completed the migration of the Dahua large model to
domestic chips ensuring the sustainable development of the business. Release a unified and efficient
large model training framework
To achieve efficient training of large models the training framework is optimized in many aspects:
it supports FP32 and FP8 mixed precision training to maximize video memory utilization and
computing efficiency while maintaining model accuracy; it can dynamically adjust numerical precision
according to different parts of the model and training stages balance accuracy and performance and
improve training efficiency. Based on data parallelism we deepen the model parallelization strategy
and comprehensively use model parallelism and pipeline parallelism technologies to solve the training
difficulties caused by the huge scale of large model parameters and improve the training efficiency
after model splitting. In addition the addition of the Machine Learning Accelerator (MLA) module
further improves the speed and efficiency of large model training by optimizing the computing
architecture providing efficient parallel processing capabilities and specialized operators.? Build a 1+1+N algorithm training system
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Build a 1+1+N algorithm training system namely: algorithm model training + algorithm
incremental training + algorithm orchestration. The 1+1+N algorithm training system enriches the
applicable scenarios of the algorithm is closer to customer business processes and significantly
shortens the algorithm delivery cycle. By providing customers with professional timely and
personalized training we can quickly build algorithm capabilities for customers support the broad
needs of government business and assist enterprises in intelligent upgrades transformation and
transition. The Company has launched two core platforms: an offline all-in-one device and an AI
training online platform which support on-demand application for training resources dynamic
allocation multi-person collaboration task allocation online verification online deployment and
upgrade capabilities.
3.4.1.3 Comprehensively upgrade the multimodal capabilities of the Dahua large model to
accelerate implementation and promotion
In 2024 the Company released an industry intelligent application framework centered around
MAAS architecture achieving efficient computing convenient delivery and simple use. The bottom
layer of the system is the IoT perception terminal which provides a variety of rich raw data. Above the
IoT perceptron layer are the view intelligence engine and data intelligence engine which enable
efficient governance of multi-dimensional perception data and provide high-quality structured and
unstructured data support for industry intelligent entities. The overall industry intelligent entity consists
of two parts: MAAS and SAAS.
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Unified Industry Intelligent Application Framework
? Three series of industry large models
The Dahua large model is an industry large model that takes visual analysis as its core
integrates multimodal capabilities and combines industry experience. Driven by industry business
the Company has comprehensively upgraded the Dahua large model: launching the V series large
model with vision as the core the L series large model with language as the core and the M series
large model with multimodality as the core. Relying on three types of industry large models we build
industry intelligent entities and reshape industry applications.Visual large model (V series): The large model with visual analysis as the core has two major
advantages. First the algorithm analysis effect moves from accurate to precise and the accuracy is
greatly improved. The performance of target detection for small targets and the accuracy of low-
probability events are greatly improved. Second it realizes automatic scenario understanding and is
more convenient to deploy. For example smart tags can realize functions such as automatic scenario
classification and dynamic segmentation enhance image understanding and perform functions such
as image description and event analysis.Language large model (L Series): It has text interaction capabilities and can achieve semantic
understanding task decomposition work flow execution and result generation. Its language ability
has been significantly improved and it can deeply understand industry knowledge and data
promoting the transformation of human-computer interaction to human-computer collaboration. In
specific applications the model supports functions such as knowledge-enhanced retrieval semantic
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understanding and interaction and can automatically schedule work flow tasks including thought
chain and work flow orchestration task execution and result generation.Multimodal large model (M series): Through the image and text fusion technology a large
model of image and text mutual search and visual analysis is realized while having all the capabilities
of the V series. This model can not only achieve the transformation of requirements from
personalization to generalization and shorten the development cycle but also implement new
functions through graphic prompts without customized development. It has gone from simple
recognition to deep understanding breaking through visual cognitive capabilities and can identify
various complex behaviors through video sequences such as destroying facilities climbing over
guardrails and pulling vehicle doors. In addition the multimodal capabilities of the model have been
significantly enhanced expanding the application value of multimodal data collaboration and
supporting new functions such as text search for images text-based behavior search text search for
videos global image search local image search full-factor image search and cross-modal combined
search.? MAAS computing architecture with graph-digit fusion
The application of Dahua large models in vertical fields is complex and diverse. In order to
efficiently and conveniently deliver the big model algorithms the company has built a unified big
model service architecture. For each application scenario one-click delivery can be completed
through a unified MAAS service. During the process you only need to replace the vertical field big
model in each business scenario.
1+1+1+N graph-digit fusion MAAS computing architecture: 1 computing architecture to unify the
large model architecture of multiple industries; 1 computing power base to achieve unified
management of computing power and unified task scheduling; 1 application portal to innovate new
human-computer interaction methods and unify the text-based interaction portals; and provide flexible
expansion capabilities for N types of industry applications for government and enterprise businesses.The MAAS architecture is designed based on a multimodal large model algorithm integrating
multimodal information such as video audio and text. It mainly includes a language large model a
visual large model a model feature library and a large and small model collaborative module. All
business scenarios use the language large model as the interaction entry. The language large model
extracts semantic features and the visual large model extracts features of images and videos and
aligns multimodal features such as views and semantics which can effectively realize the knowledge
and capability alignment of the multimodal large model in each modality. The feature data of each
modality can be effectively exported to the feature library and used as internal multimodal feature
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knowledge to realize offline and online semantic search. In addition based on the industry multimodal
knowledge an external knowledge base can be further constructed to reduce the illusion of the large
model and further improve the richness of knowledge acquisition. MAAS also supports algorithm
implementation solutions that collaborate with large and small models. The multimodal data perceived
by the small model on the front end is aggregated to the back end for secondary analysis and
secondary feature alignment through the large model further upgrading the algorithm application
solution and effectively reducing the cost of algorithm implementation.Language large model technology is an important component of the large model architecture and
the core part of the multimodal large model architecture. It can serve as the key entry point to the
software application platform. The intelligent agent framework based on the language large model
can not only understand the alignment semantic features but also automatically call various platform
resources and tools such as function calls domain knowledge retrieval data retrieval automated
document analysis risk assessment compliance checks etc. which can greatly enhance the
intelligence level of the entire software and hardware products provide cross-domain intelligent
solutions for enterprises and governments and promote the digital and intelligent transformation of
businesses.? SAAS with natural language interaction
The SAAS platform provides flexible expansion capabilities for government industries (public
security transportation urban governance etc.) and enterprise industries (electricity coal
manufacturing etc.) with a new way of human-computer interaction. By building a unified text-based
interactive portal the complex interface of the traditional application system is broken allowing users
to easily access and operate various services in the most natural and intuitive way greatly lowering
the usage threshold. Government and enterprise customers can get started quickly and enjoy an
efficient and convenient work experience.? Upgrading from large models to intelligent agents to reshape business application models
Large model technology is usually used for understanding and generating multimodal data such
as text images videos and audio. With the development of the large model application paradigm
the Company has been constantly thinking about how to enable large models to mimic human
problem-solving through the use of various tools. As a result intelligent agents (AI Agents) centered
around various tool calls and task orchestration are becoming an important form of implementation in
the industry. Large models can not only understand tool calls but also carry out independent thinking
planning and task execution based on task requirements.Industry intelligence agents have achieved remarkable results in promoting the intelligent
upgrade of business applications and have been successfully implemented in scenarios such as
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government and enterprises. The Company's industry intelligence agent demonstrates its unique
value with the following five advantages:
Reshaping the software form: The deep understanding capabilities of the multimodal large
model enable us to quickly build a complete business flow from visual analysis evaluation decision-
making to execution when faced with new business. Upgrading from the traditional function stacking
model to an efficient closed-loop work flow has significantly improved business processing efficiency.Reinventing the interaction method: The traditional interaction method of clicking the keyboard
mouse and screen can be transformed into multimodal interaction modes such as text images and
videos. Through the powerful understanding ability of the multimodal large model the system can
accurately capture user intentions and provide timely and effective suggestions. It has a unified entry
and convenient operation which greatly reduces the learning cost and optimizes the user experience.Continuous evolution the more you use it the better it gets: The intelligent agent possesses
exceptional business understanding capabilities and its understanding of data and business
continues to deepen as the frequency of use increases. The intelligent agent continues to grow in use
and its performance is increasingly optimized accelerating the digital and intelligent process of the
industry.Helping to deepen business: In response to the diverse needs of the long-tail market the
industry intelligent agent with multimodal large models as its core can accurately precipitate
professional knowledge of users and industries. By continuously accumulating industry knowledge
we have developed products that better meet user needs and help business development and
innovation.Optimizing computing network collaboration: The intelligent agent can automatically
complete the optimal scheduling of computing power according to specific business needs build an
end-edge-cloud computing network realize the coordinated operation of end-edge intelligence and
center intelligence and further improve the efficiency of computing resource utilization.Driven by the core of multimodal large models the industry intelligent agent has demonstrated its
revolutionary advantages in multiple dimensions injecting strong impetus into the industry's intelligent
transformation.? Large and small models collaborate to achieve efficient utilization of computing power
In order to accelerate the product application scope of large models we continue to upgrade the
collaborative computing architecture of large and small models to reduce the hardware deployment
cost of large models. Through multimodal distillation domain knowledge is transferred from large
models to small models. While maintaining high generalization of the model the number of model
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parameters is reduced and the model reasoning speed is improved. At the same time the large
model technology is used to upgrade the small model to enhance model accuracy and cross-scenario
adaptability. In order to give full play to the effect advantages of large models and the reasoning
speed advantages of small models large and small models are deployed together to achieve
collaborative computing. The small model performs real-time analysis and feature extraction on the
data flow the large model shares the feature information of the small model and performs secondary
analysis on key frame images or sequences to achieve information fusion output. In order to further
improve the utilization rate of computing power by integrating heterogeneous computing power
resources realizing virtualized scheduling and load balancing of computing power resources
dynamically allocating computing power resources according to the amount of task analysis and
model scale reducing the waste of computing power caused by excessive task dispersion and
achieving optimal allocation and efficient utilization of computing power.In terms of hardware infrastructure the Company provides comprehensive cluster management
software and reasoning devices. It not only includes its own large model reasoning all-in-one device
but also supports the rapid deployment of large model intelligent computing center-level computing
clusters on computing power cards or computing power servers at home and abroad. Through a
unified computing system full utilization of computing power can be achieved: it supports unified
scheduling of multi-site and heterogeneous computing power as well as on-demand storage and
computing power allocation; it supports full coverage of cloud-edge-end product reasoning supports
coordinated deployment of large and small models optimizes overall computing power consumption
and accelerates the industrial application and promotion of large models.? The large model industry has been established and its application value has been revealed
The industry large model has made significant progress in recognition accuracy reducing
computing power consumption and localization and has entered the stage of industrial application
and promotion from the technical research stage. Through continuous technological innovation the
Company accelerates the research and application deployment of large models of end-side products.At the same time it expands the application of large models in more industries helps users improve
quality and efficiency enhance operational production efficiency and accelerate the digital and
intelligent transformation and upgrading of businesses.
(1) End-side product deployment
Multi-label recognition of scenario points will support scenarios expanded from 30 to more
than 60 covering over 90% of daily monitoring categories significantly improving scenario
classification efficiency and reducing manual screening costs. It also supports zero-sample
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recognition and small-sample online fine-tuning allowing users to add new categories online to
improve support for long-tail business scenarios greatly enhancing the processing capabilities for
diversified scenarios and making the algorithm more accurate in practical applications.Behavior recognition. It has achieved technical upgrades for functions such as making phone
calls playing with mobile phones smoking falling down and fighting solving pain points such as
interference and perspective of similar actions. At the same time it can recognize more semantically
complex actions through full-scenario understanding. Compared with the small model false alarms
are reduced by over 90%. It has been successfully applied to projects such as a nursing home in
Jiangsu and an education bureau in Shandong to better meet the users' practical needs.Smoke and fire recognition. It has achieved a leap in results. The detection rate for difficult
events such as smaller flames and thin smoke has been significantly improved with the overall
detection rate exceeding 98%. At the same time false alarms are significantly reduced with less than
one false alarm per video channel per month. It has been published on the Shensuan All-in-One
Device. The large model solution for smoke and fire identification has been deployed and used in
emergency projects in many provinces and its application is being promoted in the remaining
provinces. The promotion and application will be accelerated in 2025 and the accuracy of alarms will
be greatly improved through secondary analysis of the fire hazard reducing the cost of personnel
verification.Perimeter algorithm. Relying on large model technology it has completed comprehensive
optimization and upgrades. Not only has the capture distance for targets such as people motor
vehicles and non-motor vehicles been increased by more than 20% but through technological
upgrades the algorithm can more accurately identify targets in complex scenarios. In particular
significant progress was made in distinguishing between humans and animals in a crawling state
thanks to the large model's powerful understanding of subtle movements and form factor differences.This series of upgrades has laid a solid foundation for building a more secure and efficient monitoring
system.In addition the edge-side large model technology has been upgraded in many algorithm
solutions such as crowd situation and wearable compliance.
(2) Accelerate the pilot promotion of large models in the government and enterprise
industries
The large mode of the transportation industry. It integrates multimodal capabilities upgrades
interactive modes achieves full-scenario enhanced analysis and visual understanding and increases
industry application value. Based on the powerful view understanding ability of the large model it is
upgraded from the structuring of people and vehicles to the analysis of the full scenario elements of
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people vehicles and roads realizing the recognition of more than 90 types of traffic scenario
information such as traffic signs markings facilities etc. and quickly expanding new businesses
such as traffic light operation and maintenance facility inspection and road maintenance.Breakthroughs in view recognition capabilities have been made to improve the availability of complex
traffic events and traffic accident detection. The large model has expanded the types of accident
detection from 4 to more than 20 from only supporting motor vehicle accidents to all-target accidents
involving motor vehicles non-motor vehicles and pedestrians. The application scenarios have been
expanded from closed scenarios such as highways to open scenarios such as urban roads with an
accuracy rate increased by 70% making it available for actual business operations. The road debris
detection capability has been upgraded. Compared with the small model not only is the all weather
accuracy increased by 50% it also supports debris type recognition automatic determination of the
danger level of the debris and hierarchical management of minor and serious incidents significantly
improving the conversion rate of effective alarm services and providing a basis for business decision-
making. Multimodal interaction expands new business governance models defines new functions
through text prompts and quickly meets the differentiated needs of users. The semantic
understanding of the large model supports functions such as event process description and event
cause analysis such as traffic accident tracing and traffic event aggregation and correlation analysis
which effectively solves the pain points of isolated alarm events inability to form a complete event
chain and inefficient business use value in the industry.The large model of the urban governance industry. It accurately describes the characteristics
of many events in urban life and helps upgrade the AI capabilities of urban governance. In 2024 the
model was upgraded and iterated with performance improved by about 50%. At the same time
compared with the small model the average accuracy of common functions such as out-of-store
operation and unlicensed stall vendors was still increased by more than 10%; the accuracy of five
difficult events such as street begging and missing manhole covers was increased by more than 20%
providing stronger guarantees for urban appearance public facilities management etc. The number
of supported scenarios has increased from 10 to 20 expanding from urban streets residential parks
etc. to more fields such as water banks construction sites etc. which improves the application
scope of large models. In addition the point governance algorithm continues to expand and optimize
and currently supports more than 60 point scenarios while also supporting intelligent
recommendations for functional configuration solutions suitable for each point. In 2024 trials were
carried out in multiple pilot projects including a certain service carrier in Shaanxi.The large model in the public security industry. It supports complex behavior recognition and
alert user-defined information retrieval and natural language interactive intelligent agents. It realizes
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the transition from perception to cognition from understanding to execution and reshapes the public
security industry business. The large model can achieve complex behavior recognition by
understanding subtle movements related objects and surrounding environment information. It can
accurately identify abnormal behaviors such as running pulling rolling doors and holding weapons
and its accuracy can be improved by more than 20% compared to small models. Based on full-
scenario information extraction it supports super image search and local image search functions
such as text search for images text search for videos and text-based behavior search and can
perform quick pick according to user-defined needs. It enables rapid querying of clues and greatly
improves work efficiency compared to the previous method of manually reviewing recordings in
massive amounts of video. The intelligent agent launched by the large model in the public security
industry can understand find and adjust quickly reshaping the software form and interaction mode. It
supports functions such as data retrieval knowledge Q&A task orchestration etc. through natural
language. Data retrieval based on the agent function call capability realizes convenient human-
computer non-equivalent data interaction retrieval and reduces software operation costs. Knowledge
Q&A based on retrieval augmentation generation (RAG) technology realizes the retrieval and query
of the industry knowledge base lowers the threshold for acquiring industry knowledge and reduces
the illusion of large models. Relying on a pilot project in Beijing we continuously improved the
model’s functions and optimized its effects and presented it at a national public security bureau
conference where it was highly recognized by experts in the field including the Minister of Ministry of
Public Security. After the meeting more than 10 key units from various provinces and cities
conducted visits and a large number of new business opportunities and pilot projects were created
across the country.The large model in the power industry. It supports more than 70 common functional
recognitions in the industry such as instruments smoke and fire and foreign object detection
replacing the original 7 special small model functions and realizes zero calibration configuration
reducing the algorithm deployment cycle by more than 90%. The large model uses the fusion of
image and text features to improve the algorithm's feature expression capabilities increasing the
average accuracy by more than 20% compared to the small model. It enables zero-sample new
function development through graphic and text prompt technology and supports customer-defined
function deployment. It has now been implemented in a digital technology company in Guizhou to
enhance the overall smart level of the industry.The large model in the mining industry. It is able to comprehensively monitor the operating
status of devices and assist the coal and steel industries in achieving intelligent upgrades. Compared
with small models its average accuracy has improved by more than 10% and no rule parameter
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configuration is required which reduces the workload of personnel operation and maintenance
improving efficiency and quality. The solution has more than 20 smart recognition functions for the
conveyor belt which can analyze the operating status in real time identify abnormal conditions such
as anchor rods foreign objects water coal etc. and issue timely alerts to ensure smooth coal
transmission. At the same time it supports ore quality analysis including real-time analysis of coal
block size distribution ore loading rate etc. improves the utilization efficiency of conveyor belts and
enables users to timely control coal quality. In addition the large model also supports real-time
analysis of device operating status through graphic prompts such as determining whether the device
is in motion or stationary and accurately capturing the start and stop moments. There is no need for
additional material collection and model retraining which effectively reduces repetitive work provides
strong support for device status identification and analysis and helps enterprises make efficient
decisions. This solution has been implemented in a large coal mine project in Shanxi.
3.4.2 Data intelligence
The Company focuses on video IoT scenarios and relies on cloud native big data framework
heterogeneous fusion computing data middle platform and other technologies to provide a one-stop
data intelligence base including view and information fusion integration governance development
and services. Based on technologies such as artificial intelligence graph-digit fusion data mining
and knowledge graph we deeply explore the connotation of view data build a high-value data
warehouse with graph-digit fusion release the value of data assist cities and enterprises in their
digital and intelligent transformation and development and jointly open up new development of digital
society and digital economy.In 2024 the Company continued to explore the connotation of view data activate data value and
innovatively launch data analysis intelligent agents. Driven by view data value computing it continued
to build industry-specific capabilities such as AI + big data fusion computing framework and diverse
data heterogeneous computing empowering data application innovation and assisting domestic and
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overseas government and enterprises in their digital and intelligent transformation.
(1) Driven by data value computing we continued to build multi-source heterogeneous big
data platform capabilities
Focusing on data value computing we continued to consolidate the capabilities of multi-source
heterogeneous big data platforms including products such as data computing platform data hub
data discovery platform data low-code platform and big data platform providing one-stop data
integration data governance data development data services and other capabilities to meet the
digital and intelligent governance of governments and the digital and intelligent transformation of
enterprises. Guided by the strategy of focusing on video data value computing and stimulating the
value potential of view data in terms of data integration the Company has built-in self-access
capabilities for various video IoT data and accumulated a number of industry data standards; in terms
of data governance it has loaded intelligent governance algorithm capabilities to automatically realize
data mapping standardization and quality inspection greatly improving governance efficiency; in
terms of data development it provides real-time unified development and orchestration of offline
tasks and relies on self-developed low-code engine technology for data applications to quickly
configure business applications greatly improving the delivery efficiency of fragmented scenarios; in
terms of diversified heterogeneous data computing formed by unstructured data such as views and
texts and structured data it builds an AI + big data fusion computing framework a graph-digit fusion
computing framework to break the limitations of traditional big data computing boundaries and a
heterogeneous computing power scheduling framework to break the computing power boundaries
making computing more efficient and business innovation more convenient.
(2) Continuously delve deeper into the connotations of view data to enable data business
innovation
The Company has deeply explored the value of data built a data system from data to information
and knowledge developed a variety of data algorithms and industry-specific models and
accumulated a large number of data element standards and view data assets. In 2024 the Company
relied on the data intelligence system to innovate and launch data analysis intelligence it has opened
up the last link of data intelligence and provided conversational full-chain data analysis natural
language modeling attribution analysis and decision support intelligent interaction for thousands of
people and other capabilities to enable business innovation assist government and enterprise
customers in their digital and intelligent transformation and drive business development in depth in
the industry.
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3.5 Full Ecosystem
Ecological development is one of the Company's most important strategic initiatives. The
Company has always been committed to building a cooperative and win-win ecosystem to co-create
value with partners. The Company's purpose is to achieve customer success adhering to the "full
ecosystem" concept anchoring on serving customer value realization building comprehensive open
capabilities from technology business to services and being fully open to industry customers and
developers through hardware software algorithms services and business ecosystems. We work
with ecological partners to open up new areas create new momentum and jointly create unlimited
possibilities for industrial development empower the digital and intelligent development of thousands
of industries and achieve co-creation symbiosis and win-win results.
3.5.1 Business opening and ecological cooperation
3.5.1.1 Integrator customer business ecosystem
The Company continues to advance the construction of the integrator cooperation system and
resource investment prioritizing service and committed to providing partners with higher quality
products and solution services across the industry upholding altruism and achieving win-win results.The company continues to improve the integrated management of customers and business
opportunities and strengthen front-line combat capabilities; it advocates releasing more industry
resources to partners to jointly explore market segments; at the same time it establishes an
ecological cooperation organization to integrate product R&D resources improve ISV customer
cooperation efficiency focus on valuable customers and achieve more effective resource allocation
thereby improving customer satisfaction and cooperation stickiness.During marketing activities we empower and train customers strengthen all-around ecological
cooperation with integrator partners in technology business services etc. and further enhance the
depth and breadth of cooperation with customers.
3.5.1.2 Business ecosystem for SMEs
In 2024 the Company comprehensively deepened the construction of the global SME ecosystem.Through a three-dimensional marketing network partner growth plans and precise resource
allocation we work together with global channel partners to build a sell-out-driven model strengthen
channel business penetration and coverage optimize service layout build a healthy and sustainable
ecological structure and jointly achieve a leap in the business value of small and medium-sized
enterprises. In the domestic market the Company continues to promote the "district and county
lower-tier" strategy deepen local operations and build a new ecosystem for the low-tier market; in
overseas markets it focuses on innovation in cooperation models management models and tools
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attaches importance to coverage in weak areas and depth in strong areas and drives changes in the
business landscape.
3.5.1.3 Industry customer business ecosystem
In order to realize the digital transformation of the government we integrate the advantages of
ecological partners in the subdivided fields in terms of product solution innovation and integration
data resource application etc. to create an "end-to-end closed-loop" solution and enhance the
competitiveness of the solution. In terms of product solution innovation and integration we deepen
cooperation with the industry ecosystem. For example in the field of smart water conservancy we
focus on typical environments and application scenarios carry out product solution innovation and
improve the scientific level of water conservancy decision-making and management. We cooperate
extensively with the industry ecosystem in terms of data resource integration and application. For
example in the field of emergency disaster reduction the Company gathers multi-source IoT data in
multi-frequency domain application scenarios to achieve dynamic video fusion and event linkage
improve auxiliary decision-making and coordinate precise rescue.Aiming at the digital intelligence upgrade of enterprises we integrate the ecological capabilities in
subdivided fields create full-scenario high-value solutions and serve the digital and intelligent
scenarios. For example in the industrial and commercial enterprise sector we work with ecological
partners to jointly create professional solutions such as logistics warehousing digital workshops
digital stores and digintelligent marketing enabling enterprises to build new quality productivity and
improve operational efficiency; in the cultural educational and health business sector we provide
ecological partners with comprehensive IoT and AI capabilities and empower the digital intelligence
of the industry through technical and business cooperation.
3.5.2 Technical openness and ecological cooperation
3.5.2.1 Software open platform and ecological cooperation
In terms of the technology open system the Company has accumulated core capabilities based
on the three major areas of IoT perception view intelligence and data intelligence. It continuously
optimizes the open system capability for partners continuously enriches the content of ecological
products and ecological solutions and reduces the technology integration costs of partners. Through
technical support we provide partners with various technical services empowerment support and
training certification continuously reducing partners' learning costs and ensuring that partners
maximize the use of various capabilities provided by the Company's open software system and profit
from them. Through the above-mentioned value co-creation and sharing actions the breadth and
depth of the technical cooperation between the two parties have been continuously enhanced
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ultimately forming a highly trustworthy and stable technical ecosystem.At the market cooperation level the Company classifies partner needs based on region industry
and customer characteristics carries out targeted cooperation and continuously explores efficient
cooperation models to ensure continuous value creation for partners. By establishing hierarchical
customer management organizations sharing pipeline resources building ecological shelves joint
marketing activities and brand cooperation we promote the collaborative construction of solutions
and joint technological innovation between the two parties.In 2024 relying on the full-process support of the digital system the Company has built a
comprehensive software ecological resource operation system to enable the digitalization of
ecological operations and the standardization of process management and to promote the orderly
implementation of ecological partners' business expansion.
3.5.2.2 Hardware open platform and ecological cooperation
The Company's open hardware ecosystem mainly includes the opening of device hardware
capabilities (DHOP) the opening of third-party platform access capabilities (cross-platform unified
protocol device network SDK HTTP API) as well as various ecological cooperation solutions such
as HarmonyOS Ora and others.Opening of device hardware capabilities: It supports software and hardware decoupling
provides hardware resource services such as storage and computing power multimedia function
services AI acceleration engine services various device basic information services etc. to meet
various custom business needs of third-party developers and provides a rich tool development kit
from model conversion compilation packaging debugging to operation and maintenance reducing
the difficulty of third-party development. In 2024 the Company signed cooperation agreements with
many algorithm manufacturers around the world to develop applications in various industry scenarios
through mutually beneficial cooperation effectively meet the business needs of end customers and
prosper the AIoT ecological application market. In addition the hardware open platform supports
mainstream domestic chips and the product matrix landing cameras PTZ cameras buildings
centralized storage and other edge devices. In order to explore new intelligent scenarios the
supporting company opens the Ginn training server and algorithm warehouse to achieve a full-link
closed loop for the rapid implementation of new intelligent scenarios.Cross-platform unified open protocol: It mainly includes the device open API protocol (EZAPI)
the object model access protocol (STAP) etc. The device open API protocol provides basic functional
interfaces such as system management audio and video transmission and storage AI intelligent
analysis and a variety of industry business interfaces to help third parties quickly connect. The
object model access protocol is designed to address the diversity and resource limitations of devices.
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It provides complete device descriptions and efficient data transmission facilitating the rapid
networking of IoT devices.HarmonyOS ecosystem cooperation: The Company actively participates in industry
organizations such as the OpenAtom Foundation and the HarmonyOS Ecosystem Promotion
Committee tracks the development of the HarmonyOS ecosystem industry and conducts in-depth
research on OpenHarmony certification requirements and 6 industry HarmonyOS certification
requirements. We have promoted technical cooperation with multiple hardware suppliers and
software service suppliers. As of the end of 2024 15 hardware products in six categories have
passed the OpenHarmony certification and several other products have passed the proprietary
industry HarmonyOS certification.
3.5.2.3 Algorithm opening and ecological cooperation
In this trend of digital transformation many clients from different industries use AI to improve
production efficiency. The Company provides targeted empowerment tools for partners with different
levels of needs and at the same time introduces more algorithm ecosystem manufacturers to better
meet the increasing scenario-based needs in various industries. It pools the power of the industry to
accelerate the industrialization of artificial intelligence and the digital and intelligent transformation of
the industry and works with partners and customers to jointly build an artificial intelligence industry
ecosystem.Mature algorithm out-of-the-box: The Company's AI algorithms have accumulated a large
number of mature solutions in industry business applications with the following advantages to help
partners expand their business: a wide range of choices developing dedicated algorithm solutions
covering different industries to meet the different needs of various industries; good results polished
by actual business with strong scenario generalization capabilities and has won championships in
international competitions in the fields of target detection and target recognition; simple to use
selecting algorithms as needed in the algorithm warehouse and simply configuring them to achieve
functions; save time on deployment and reduce usage costs by optimizing technology.AI open platform build partners’ AI capabilities and enable independent development: For
users with low thresholds and no algorithm capabilities they only need to input relevant data on the
AI open platform to efficiently complete the desired algorithm function development with a low
threshold help build users' algorithm development capabilities enable users to develop
independently and implement it in products for commercial realization. The AI open platform provides
a one-stop graphical AI algorithm development platform for partners which has flexible platform
deployment zero-code development efficient training online verification and one-click deployment
capabilities.
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AI open toolchain accelerate the commercialization of partner algorithms: It is mainly
aimed at customers who can develop algorithms themselves but cannot develop product hardware.Users can develop algorithms through self-research and then use the "Ginn Artificial Intelligence
Algorithm Deployment Tool" to deploy the developed algorithms to the Company's hardware products
and use DHOP to implement the development and implementation of business software products
and quickly productize the algorithms.Introducing ecological algorithm manufacturers to accelerate the fulfillment of industry
scenario-based algorithm requirements: The Company has established comprehensive algorithm
research and engineering capabilities and possesses efficient algorithm supply capabilities. However
compared to the various fragmented demands in the industry the Company's supply capacity still
needs to be improved. At the same time in order to better enhance the input-output efficiency the
Company strengthens cooperation with industry algorithm ecosystem manufacturers. Through close
collaboration between both parties it provides industry users with more cost-effective and high-quality
intelligent products and solutions.
3.5.3 Service opening and ecological cooperation
The Company consistently upholds altruism empowers ecological development and is steadfast
in growing together with its partners. More than 100 talent development and training centers for
college-industry cooperation have been established in provinces and regions nationwide to cultivate
and supply professional and skilled talents in AIoT for industry and ecological partners and provide
efficient service support for customers and the market. We have built the Dahua Ecosystem Learning
Center focusing on technology empowerment and comprehensive business enablement to assist
partners in business expansion and improving delivery efficiency ensuring end-customer satisfaction.
3.6 Software Products and Business
With the continuous implementation of technologies such as IoT big data and large models and
the gradual improvement of data industry standards by major countries around the world the
technical system and circulation system of data elements are becoming increasingly mature. Among
them unstructured data mainly based on video images has become an important breakthrough in
data value realization due to its diversity circulation scale and privacy.As a leading enterprise in the AIoT industry the Company has always been committed to
promoting the value-added process of data elements. Faced with the opportunities and challenges
brought by data elements the Company has completely upgraded the intelligent IoT data platform 2.0
from the dimensions of multi-dimensional perception multi-connection view intelligence and open
platform. It has deeply integrated the Dahua large model and graph-digit fusion capabilities built
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efficient software engineering capabilities and released two major industry product systems Urban
Tianji and Enterprise Tianyan to comprehensively assist efficient urban governance and digital
intelligence upgrades for enterprises.
3.6.1 Deeply excavate the value of the software business and comprehensively
upgrade core capabilities
? Build intelligent competitiveness
In terms of product research and development the Company actively integrates cutting-edge
technologies such as large models digital twins low code and graph-digit fusion to continuously
improve product competitiveness. Empowered by the Dahua large model the view intelligence
engine realizes efficient processing and analysis of massive unstructured data significantly improving
the intelligence level of security scenarios. At the same time the Company has built a powerful
development toolchain based on the HuaDesign system and microservice architecture platform and
through the low-code business engine of the Firefly Component Mall it can quickly respond to the
needs of scenarios such as enterprise parks and digital twin and achieve flexible and efficient
technology reuse and business assembly.? Close to customers empowering the frontline
In terms of service the Company always adheres to the "customer-centric" concept promotes
the deep integration of software development centers in various provinces and regions with front-line
businesses and stays close to customer needs. Through efficient software engineering capabilities
the Company can quickly combine emerging industry technologies to achieve business innovation
and scenario implementation creating greater value for customers.? Join hands with partners to co-create the future of the industry
Based on the intelligent IoT data platform the Company has formed three cooperation models
around ecological customers: solution co-construction product co-creation and capability sharing.Through in-depth collaboration with partners the Company jointly promotes the digital intelligence
upgrade of the industry helps customers grow bigger and stronger and achieves the ecological goal
of "co-construction win-win and symbiosis".
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3.6.2 Deepen the data industry chain and jointly create a prosperous data element
market
Data elements have become the core engine driving social and economic development. However
the current AIoT data element industry chain with video as the core still faces challenges such as
insufficient coordination between upstream midstream and downstream and hindered value release.As a technology service provider deeply rooted in the industry the Company positions itself as a data
resource provider assetization practitioner and commercialization enabler. It works with ecological
partners to break through industry bottlenecks and help build a prosperous data element market.? Problems facing the data element industry chain
In terms of upstream data acquisition it faces the dilemma of scenario complexity and device
fragmentation. On the data supply side there are problems such as fragmented perception scenarios
non-interoperable IoT device protocols and difficulty in cross-network data interconnection. The
collection efficiency and quality of massive unstructured video data need to be improved urgently; in
terms of midstream data governance there is an imbalance between intelligent long-tail demand and
collaborative efficiency. Data processing service providers need to deal with pain points such as
insufficient adaptability of intelligent algorithms to scenarios low efficiency of end-edge-cloud network
resource collaboration and difficulty in multimodal data fusion and analysis; in terms of downstream
data application there is a lack of value presentation and circulation mechanisms and the existing
data services in various industries are difficult to match dynamic business needs resulting in a
prominent "data sleep" phenomenon.? Empowering data elements to realize value throughout the entire lifecycle
To address the pain points in the industry chain the Company used technology and ecology as
dual drivers to build solutions covering the entire lifecycle of data.We broke through the upstream built multi-dimensional perception and full-domain
interconnection and realized the standardized collection of video IoT and other data in complex
scenarios through multimodal perception terminals and a unified IoT protocol stack; relying on cross-
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network secure interconnection technology we connected private networks government clouds and
edge devices to build a full-domain data base. We tackled tough issues in the middle platform
realized intelligent collaboration and open computing continued to build a view intelligence engine
integrated industry algorithm warehouses and low-code development tools and met the agile
development needs of long-tail scenarios. At the same time we built a distributed computing
framework to achieve elastic collaboration of lightweight reasoning on the end-user side real-time
analysis on the edge side and deep training on the cloud side. We activated downstream to meet
scenario innovation and ecosystem co-creation and work with leading industry customers and ISV
partners to incubate data application paradigms in various industry scenarios promoting efficient
urban governance and digital and intelligent transformation of enterprises.
3.6.3 Upgrading the intelligent IoT data platform to empower urban governance
and digital and intelligent enterprises
With the rapid development of the IoT large models and big data technologies the Company
has comprehensively upgraded its intelligent IoT data platform based on its deep insight into urban
governance and enterprise needs. With data full lifecycle management as the core it has promoted
the process of data as an asset data as a resource and data as a commodity injecting new impetus
into high-quality development.? Empowering the entire data workflow to release new intelligent value
In terms of data as a resource relying on the full-domain 6D multi-dimensional perception
technology and multi-connectivity capabilities we have achieved efficient aggregation of data across
the entire network; combining AI technology to enhance data acquisition accuracy and content
description capabilities we have built a dynamic data base for cities and enterprises. In terms of data
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as an asset the view intelligence engine deeply integrates the "Dahua large model" breaks through
the boundaries of traditional visual cognition realizes autonomous analysis of the entire scenario and
supports the implementation of complex scenarios with higher generalization capabilities and
accuracy; through the data intelligence engine it creates a graph-digit fusion computing system
breaks through the barriers between view data and business data and activates the deep value of
data. In terms of data as a commodity through the upgrade of software engineering capabilities we
have achieved the free orchestration of industry scenario modules large models and graph-digit
fusion technologies built two major product systems "Urban Tianji" and "Enterprise Tianyan" and
enabled application innovation in thousands of industries.? Innovating the business paradigm of government and enterprises moving towards a new
stage of cognitive intelligence
In the field of urban governance through dynamic perception intelligent analysis and decision-
making closed loops we helped urban governance achieve self-optimization learning and evolution
and promoted the transition of the governance model from "perceptual intelligence" to "cognitive
intelligence". Focusing on the four dimensions of "public security orderly urban management green
development for the benefits of the people and governance efficiency improvement" in urban
business the Company launched the Tianji series of products with CV large model computing
network self-intelligence and graph-digit fusion technology as the core to create four functional
modules: industry model intelligent computing engine twin scenario generation engine data asset
management service and data element operation center.In the field of enterprise services the Company took the Tianyan series of products as the core
providing four engines: data operation management intelligent computing decision-making scenario
application construction and digital twin interaction. Relying on the practical experience of tens of
thousands of industry projects every year the Tianyan series has accumulated massive business
paradigms and deeply integrated the Dahua large model capabilities to help enterprises achieve
human resource replacement for high-risk and high-intensity positions production safety risk alerts
and management decision-making optimization and promote companies to transition from
"comprehensive security" to "digital and intelligent operations".
3.6.4 Upgrading the view intelligence engine based on the large model to realize
the self-intelligence of the computing network
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In the AIoT industry scenario fragmentation and diversified demands have always been
difficulties in intelligent upgrades. The current AI market has a variety of product forms and
algorithms and computing power are difficult to coordinate resulting in wasted customer investment.In addition traditional AI algorithms rely on a large amount of labeled data and are unable to meet the
customized needs of long-tail scenarios resulting in a large number of scenarios being unable to be
effectively covered which restricts the industry's intelligent process. To this end the Company
innovatively launched the Dahua large model empowering the intelligent long-tail market in the AIoT
industry with technological breakthroughs and opening a new chapter of global intelligence.Build a computing power "network" to achieve optimal resource allocation
In response to the pain point of scattered computing power resources and low utilization the
Company innovatively proposed a unified computing power quantification and pooling solution to
effectively shield the differences between different chip architectures and integrate scattered
computing power resources into "one network". By accurately sensing computing power needs
dynamically scheduling and allocating computing power resources we have achieved coordinated
optimization of algorithms computing power and data maximized resource utilization and reduced
customer investment costs.Technology leadership: Dahua large model reshapes the intelligent capabilities of AIoT
The Dahua large model independently developed by the Company realized low-sample learning
and rapid distillation of small models through massive data pre-training and industry small data fine-
tuning greatly reducing the dependence on labeled data. Whether it is smart city traffic management
energy education community or other segmented scenarios it can be quickly adapted to meet
personalized needs. The collaborative processing of large and small models not only ensures high
precision but also improves computing efficiency truly realizing "one network for multiple uses and
one network for multiple capabilities".
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3.6.5 Public cloud makes management more efficient and operations more
intelligent
The public cloud business has completed the 3.0 architecture upgrade building a full cloud
product system for channels industries and ecosystems based on a cloud-based low-code
development middle platform providing customers with rich SaaS applications and creating efficient
open and minimalist cloud product capabilities. The cloud middle platform includes the low-code
development platform Dahua IoT Studio and six core middle platform capabilities making it easier to
get devices to the cloud and making business development more efficient. Based on the cloud middle
platform the Company provides SaaS series products such as Yunlian DoLynk and Yunrui to
channel partners. With the advantages of low-cost high elasticity scalability and configurable SaaS
services it provides enterprises with a new operating model transforming from manual to "data +
intelligence" upgrades and enabling enterprises to transform into digital and intelligent management.Cloud ecosystem empowers domestic enterprises to upgrade their digital intelligence
For domestic customers Dahua CloudLink serves small and medium-sized enterprises.Focusing on online devices online users and online services it drives massive devices to the cloud
and provides one-stop product solutions covering video monitoring access control attendance video
intercom visitor management alarm linkage etc. It goes deep into segmented scenarios such as
corporate offices residential communities small chains factory parks hotels and homestays scenic
areas construction sites etc. to create scenario-based application solutions injecting strong impetus
into the digital and intelligent transformation of small and medium-sized enterprises.DoLynk Enterprise serves industry users and is deeply engaged in the SAAS service field. With
its scenario-based and professional advantages it helps enterprises to move their digital and
intelligent transformation to new heights. By continuously exploring customer usage scenarios and
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refining core business modules such as video cloud intelligence store inspection management park
access and unattended parking we can meet differentiated needs with refined services and ensure
that enterprise operations and management are accurate and efficient.Relying on Dahua Cloud Developer Platform the Company has opened up diversified
development resources represented by low-code product development tool Yinhe low-code IoT
access tool and Beidou online operation maintenance and testing tool to ecological customers
helping ecological customers to build innovative products that adapt to market demand and
commercial value at low cost. At the same time Dahua Easy Installation serves its partners focusing
on the key links of product debugging and fully optimizing tool design. It significantly improves
debugging efficiency with professional and streamlined operating procedures accelerates project
implementation and delivery and provides partners with better quality and more efficient support to
jointly build a wide-area AIoT ecosystem.Cloud platform creates an intelligent connection foundation for global customers
For overseas customers the Company provides DoLynk overseas cloud services focusing
precisely on the field of AIoT empowering enterprises and developers in all aspects and is committed
to providing an accurate intelligent and convenient platform. From the perspective of connecting
devices solutions and business partners we deeply create a one-stop scenario-based solution
covering multiple applications such as cloud video management device operation and maintenance
data communication network wireless alarm video intercom access control and attendance and
chain operation to help enterprises refine process control achieve cost reduction and efficiency
improvement activate the digital transformation engine and move towards a new level of lean
operation.At the same time we provide installers with convenient and efficient quick-start tools to improve
device debugging efficiency ensure project delivery and lower the threshold for entry into the industry.Adhering to the principle of openness DoLynk provides developers with extremely simple AIoT
integration capabilities. Relying on a convenient construction process developers can quickly build
their own AIoT cloud platform seamlessly access rich functional modules in one stop and accelerate
business innovation and iteration. The Company will make every effort to build a marketing chain that
directly reaches the terminal gain in-depth insights into demand integrate cutting-edge AIoT
technologies into business scenarios continue to build an AIoT foundation for global customers and
jointly create a new future of the Internet of Everything.
3.6.6 Co-build an industry innovation ecosystem and share a digital and intelligent
future
The AIoT industry is accelerating its transformation from "single product competition" to
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"ecological collaborative innovation". As a practitioner of the industry's digital and intelligent
transformation the Company takes the intelligent IoT data platform as its core foundation and works
with ecological partners to explore the three major cooperation models of "solution co-construction
product co-creation and capability sharing" promote the efficient integration of industrial chain
resources and build an open and win-win new AIoT ecosystem.Solution co-creation: complementary advantages to build closed-loop competitiveness
Based on the deep vertical cultivation capabilities of ecological partners and the Company's
platform technology advantages the two parties achieved the rapid implementation of scenario-based
solutions through "modular assembly". For example the integrated event management and disposal
solution launched by the Company in cooperation with ISV deeply integrates the real-time perception
capabilities of the intelligent IoT data platform with the event management platform of the ISV
connects users permission and data links and forms a "risk alert-collaborative disposal-intelligent
review" business closed loop to help customers improve emergency response efficiency. This type of
cooperation not only fills the business gaps of a single enterprise but also builds differentiated
solution competitiveness through ecological collaboration.Product co-creation: technology empowerment activating the value of data elements.Relying on the low-code development engine and open interface of the intelligent IoT data
platform ecological partners can efficiently develop vertical industry joint products and quickly reach
the market through our global sales network. In the medical field to address the pain points of data
silos and privacy security the Company and ISV jointly launched a privacy computing platform
innovatively applying multi-party secure computing (MPC) and trusted execution environment (TEE)
technologies to achieve "available but invisible" data across institutions helping medical research
institutions to complete joint modeling and analysis without leaking raw data promoting the
improvement of scientific research efficiency and becoming a benchmark for the "security base" for
the circulation of data elements.Capability sharing: agile innovation empowering business upgrades
The intelligent IoT data platform provides standardized capability modules such as AIoT
perception big data and intelligent analysis which ecological partners can flexibly call and quickly
build customized applications. In the field of urban emergency management. By integrating the
platform's video analysis plan management and digital twin capabilities ISV partners can quickly
develop urban disaster simulation systems shortening the development cycle from months to days
and reducing partners' development thresholds and trial-and-error costs.The Company will continue to improve the openness and compatibility of the intelligent IoT data
platform and support partners in joint research and development in cutting-edge fields such as AI
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large models and digital twins. Only by building a technological foundation together with ecological
partners expanding scenario boundaries and sharing data value can we truly achieve the leap of the
security industry from "connecting everything" to "intelligently connecting all industries" allowing the
results of digital intelligence to benefit thousands of industries.
3.7 Security and Privacy Protection
The Company attaches great importance to cyber security and privacy protection establishing a
Network and Data Security Committee as the highest decision-making organization to
comprehensively plan coordinate and oversee the development and implementation of cyber
security efforts from the Company's strategic level. As one of the Company’s five major research
institutes the Cyber Security Research Institute is an independent organization within the Company
for cyber security supervision and capacity building. It focuses on areas such as security engineering
capability building key security and privacy technology research and application and security
emergency response services. By combining technological innovation with engineering capabilities it
ensures the security and reliability of the entire series of products platforms and services.
3.7.1 Security Products and Solutions
The Company has launched a series of products including security database video protection
system video security hub video encryption server and video security certificate which integrate
security protection service capabilities such as video terminal security access video stream integrity
verification video stream encryption user and video data secret key management CA certificate and
security authentication.
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The Company continues to improve and optimize the security solution for secret evaluation.Focusing on the full lifecycle of data acquisition transmission storage sharing and use it integrates
cryptographic modules and products with commercial cryptographic certification qualifications to
achieve end-to-end encryption protection of video access control and other data. It supports strong
security capabilities such as source encryption encrypted direct storage encrypted secret key two-
factor authentication national secret-level SSL & two-way identity authentication and provides users
with optional password machines and secret key management servers to help information systems in
different scenarios better meet the security requirements of secret evaluation standards.
3.7.2 Security technology and engineering
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The Company continues to increase its research investment in key technologies such as trusted
computing end-to-end encryption and privacy protection. Relevant technological achievements have
been integrated and applied in products to further enhance the security capabilities of products and
allow users to enjoy better security protection.During the product development stage the Company continues to promote and improve the
construction of the secure software development lifecycle strengthen the security management
requirements and capabilities of the software development process and improve and optimize the
secure software development process suitable for the Company through in-depth security activity
maturity assessments.During the lifecycle of the product the Company's product security incident response team
PSIRT provides users with 7x24 hours security emergency response services to maximize the
protection of users' security rights and interests. At the same time PSIRT actively participates in
industry and public activities and has joined multiple authoritative vulnerability management and
technology organizations including the China National Vulnerability Database (CNVD) the China
National Vulnerability Database of Information Security (CNNVD) the China National Industrial Cyber
Security Vulnerability Database (CICSVD) and the Ministry of Industry and Information Technology's
mobile internet APP product security vulnerability professional database etc. fully utilizing its role as
a member unit within the organization to establish a collaborative mechanism for sharing cyber
security threat information.
3.7.3 Data security and privacy protection
With the promulgation of laws and regulations such as the Cybersecurity Law of the People's
Republic of China the Data Security Law of the People's Republic of China the Personal Information
Protection Law of the People's Republic of China and the EU's General Data Protection Regulation
the global cyber security data security and privacy protection supervision and compliance
requirements are becoming increasingly stringent. The Company has adopted a pragmatic attitude
and strategy to actively respond adhered to the concept of "active open cooperative and
responsible" formulated a complete security and privacy management system and relied on mature
security engineering capabilities to strictly implement in the planning design development delivery
and other stages of the product to ensure product security and privacy compliance.In the face of the EU NIS2 Directive EU RED Directive and UK PSTI Act that have come into
effect or are about to come into effect the Company established a special compliance team during
the reporting period to closely track regulatory developments and adjust compliance strategies in a
timely manner. At the same time we invited third-party organizations to cooperate deeply interpreted
regulatory requirements and proactively conducted product testing and evaluation based on relevant
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safety standards formulated compliance measures that fit business scenarios and helped customers
better comply with laws and regulations.In addition the Company actively cooperated with third-party authoritative organizations and
introduced external assessment and certification. We have passed ISO27001 information security
management system certification ISO27701 privacy information management system certification
ISO27017 cloud service information security management system certification ISO27018 public
cloud personal privacy information security management system certification CSA STAR certification
ETSI EN 303645 certification CC EAL3+ certification commercial encryption certification etc.
4. Main Business
4.1 Domestic Business
4.1.1 City-level business
4.1.1.1 Business overview
With the advancement of urbanization cities have become the core carriers of government digital
construction and the whole country is faced with the urgent task of building resilient cities. Urban
construction faces multiple risks such as natural disasters public security incidents and challenges
such as the increasingly complex urban operation systems. To meet these challenges government
digital construction requires the use of IoT technology big data technology artificial intelligence
technology cloud computing technology etc. to improve urban safety levels promote sustainable
development and enhance governance capabilities and residents' quality of life.Under the general trend of improving the quality and efficiency of the government's digital
transformation the Company keeps pace with the industrial development of digital infrastructure
construction value of data elements and implementation of digital applications. With video IoT
perception data as the core it focuses on the four major urban business sectors of public security
orderly urban management governance efficiency improvement and green development for the
benefits of the people. Through digital and intelligent integration and application innovation it escorts
the implementation of urban business helps to improve urban management efficiency and provides
scientific decision-making support.
4.1.1.2 Core strategy
The Company is committed to implementing digital and intelligent capabilities in numerous urban
scenarios focusing on the main channel of AIoT business and continuously exploring the
implementation of scenarios in which digital intelligence empowers urban digital innovation. Focus on
deploying new opportunities in industries such as integrated transportation natural resources smart
water conservancy emergency management etc. we deeply understand industry scenario needs
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focus on the implementation of digital and intelligent capability scenarios continue to build industry-
leading product and solution capabilities and empower urban development and governance model
innovation with digital intelligence. At the same time the Company continues to deepen its ecological
cooperation strategy continuously strengthens technology co-creation and business sharing around
core customers industry experts outstanding manufacturers and other partners in the urban
governance business field jointly empowers efficient urban governance and creates an AIoT
ecological community of "co-construction win-win and symbiosis".
(1) Building a digital and intelligent urban foundation
Based on AIoT2.0 and the intelligent IoT data platform 2.0 the urban platform utilizes the unified
base of Urban Tianji focusing on capabilities such as industry model intelligent computing twin
scenario generation intelligent computing decision-making and scenario application construction. It
helps users achieve efficient urban governance autonomous urban operations and ecological
collaboration around multiple urban scenarios. Combining the best business practice paradigms in
various fields of the industry it quickly builds a digital intelligence system with comprehensive
management decision-making capabilities. It helps urban governance achieve self-optimization self-
learning and self-evolution and gradually move towards a new stage of cognitive intelligence and
decision-making intelligence.
(2) Deepen the implementation of scenario-based business
Based on the unified platform of City Secret and combined with years of deep experience in
business areas such as smart transportation social governance smart emergency response smart
water conservancy natural resources etc. we have developed scenario-based solutions for various
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industries and fields continuously advancing the process of urban digitalization enabling efficient
urban governance and striving to achieve a new picture of urban governance with public security
orderly urban management governance efficiency improvement and green development for the
benefits of the people.
4.1.1.3 Industry value practice
The Company has always adhered to the social mission of "making society safer making cities
more orderly making governance more efficient and making life better". We continue to deepen the
digital and intelligent practice of business in the fields of public security orderly urban management
governance efficiency improvement green development for the benefits of the people etc. relying on
AIoT2.0 and intelligent IoT data platform 2.0 to activate the value of urban IoT data elements and
empower urban digital transformation with digital and intelligent innovation.
(1) Making society safer
The Company focuses on the goals of social stability and order people's safe travel the stability
of people's lives and enterprises' peace of mind in production. It actively fulfills its social mission and
is committed to building a higher level of safe China. Focusing on the four business areas of public
safety traffic safety life safety and production safety we opened up the "urban lifelines" such as
water electricity gas heat and transportation and built a safety "immune" system for the urban life
body. Digital and intelligent empowerment helped upgrade the city's overall safety system strengthen
the city's lifeline and build a safe life body.Public Safety: We focused on the country's "14th Five-Year Plan" focused on deepening the
comprehensive visual system actively embraced emerging technologies and continued to deepen
the combination of AIoT technology and public security industry scenarios provided customers with
more convenient urban IoT capabilities smarter integrated connection capabilities and more efficient
social governance capabilities and provided security protection in all aspects from cities to villages
from highways to railways from forest protection to river basins to help modernize urban public
security systems and capabilities. In 2024 the Company focused on the mining of view data elements
and relied on the view large model to continue to help customers improve the depth and efficiency of
data utilization provided strong protection for the people and public security and contributed to
building a safer China at a higher level.Traffic safety: Guided by the "14th Five-Year Plan" National Road Traffic Safety Plan and
focusing on the three major scenarios of refined urban traffic safety management highway safety
prevention and control and rural safety grassroots management we further deepened the "reduction
in quantity and control of major traffic accidents" in traffic accident prevention created a traffic safety
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management model that covers all scenarios and combines multiple means and deeply explored the
application of big data and AI technology in the field of traffic management. Focusing on governance
scenarios the "Yizhen" series of cameras were launched in 2024 to solve problems such as strong
light interference from headlights and video jitter restore the "Zhen" colorful world of highways around
the clock and truly achieve all weather intelligent monitoring of highways; focusing on vehicle-road
collaboration we have realized a closed loop of roadside applications such as holographic perception
traffic autonomy and situation monitoring; focusing on road network monitoring starting from
panoramic monitoring and video clouding we have put forward targeted video encryption solutions
and lightweight video cloud hub products to help the operation status of highways to be accurate
efficient safe and smooth.Life safety: The Company focused on the safety monitoring scenarios of urban lifelines that are
closely related to life such as water electricity gas heat and transportation with the goal of
"monitoring alerting and quick disposal". By building front-end IoT perception video intelligent
analysis and urban safety index models for urban infrastructure the Company monitored urban
infrastructure used big data technology to analyze and predict disaster data and used artificial
intelligence technology to provide scientific decision-making suggestions effectively reducing the
probability and impact of disasters and improving the level of urban safety. We have realized online
monitoring of the safe operation data of lifeline projects and intelligent analysis and judgment of
various risk factors meeting the integrated business closed loop of risk classification alert trend
intelligent judgment and event linkage disposal promoting the transformation of safety supervision
from "passive response" to "active supervision" and creating a safety "immune" system for urban life.Emergency disaster reduction: In response to the information construction requirements
issued by the Ministry of Emergency Management in 2024 the Company's first digintelligent twin
engine represents a new generation of intelligent emergency management model. The engine builds
a three-dimensional scenario model and integrates multi-source heterogeneous data to create an
application environment where the virtual and the real coexist. This innovative technology can
intelligently realize dynamic video fusion and event linkage in special scenarios such as emergency
chemical parks mining enterprises and high-risk areas for natural disasters thereby improvingauxiliary decision-making and coordinated command capabilities; the thermal imaging “four-warehouse” technology assists in precise rescue combining visible light thermal imaging laser fill
light and ranging. This technology can ensure the accuracy of fire point identification under extreme
conditions such as thick smoke and strong light; through intelligent equipment such as intelligent fire-
fighting robots UAVs and mobile arming PTZ cameras remote monitoring and task coordination can
be achieved truly creating an integrated air-ground-space emergency disaster alert and rescue
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system.In the field of production safety: With "source control process supervision and graded
disposal" as its core idea the Company focused on key regulatory areas such as hazardous
chemicals mines industry and trade fireworks and firecrackers and hazardous chemical parks and
provided support for front-line employees enterprise leaders and regulatory departments in the
areas of major hazard source supervision operation process risk alert and emergency rescue. We
continued to pay attention to special rectification of production safety focusing on hazardous
chemicals mines fire protection transportation urban construction industrial parks hazardous
waste etc. In 2024 we strengthened and upgraded the production safety risk monitoring and alert
system in key industries assisted in the dual prevention work mechanism of production safety risk
classification management and hidden danger investigation and control and effectively protected the
production of enterprises and the safety of people’s lives and property.
(2) Making cities more orderly
Focusing on urban traffic management and urban infrastructure management the Company
integrated various digital capabilities such as holographic perception intelligent computing graph-
digit fusion and visual large models and provided advanced digital and intelligent solutions for
business areas such as smooth urban traffic and urban infrastructure management to build a
standardized orderly convenient and efficient urban management system.Smooth urban traffic: Co-create an autonomous urban transportation service system and open
up the entire business chain of holographic perception graph-digit computing simulation and
deduction intelligent decision-making and precise services. Focusing on intersection scenarios all-
factor traffic data such as machines vehicles people and infrastructure are collected and the traffic
risks/congestion levels at intersections are actively analyzed. The traffic light signal timing is
intelligently adjusted and the autonomous effect is objectively and quantitatively evaluated to
optimize the operation efficiency and safety level of intersection traffic. Relying on the city-level
holographic perception network the traffic operation situation of the urban road network is actively
predicted and intelligent and autonomous decision-making of city-level traffic is realized which
promotes the autonomy of traffic management and the intelligence of services and ultimately drives
the transformation of urban traffic management from "manual management" to "operation autonomy".Urban infrastructure management: Taking the airport scenario as an example green airport
energy management automation has become the focus of airport construction. Focusing on the four
major business scenarios of energy monitoring control analysis and decision-making in the airport
energy center the Company provided smart energy automation management system solutions for
airport energy center customers by integrating intelligent patrol robots and back-end intelligent
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analysis capabilities. At a 4F-level airport through the intelligent transformation of 6 35kV substations
boiler rooms and cold machine rooms in the airport online collection unmanned inspections and
automatic control of airport energy management were realized greatly improving management
efficiency and reducing management costs.Urban parking management: In order to help improve the national urban comprehensive
transportation system perfect the layout of the facility network and enhance operational efficiency
overall benefits and the level of intensiveness intelligence and greenness; the Company has
launched the Dahua City-wide Integrated Parking Charging and Energy Storage Solution. The
solution integrates data from two scenarios: integrated parking and charging operations and
centralized energy control of photovoltaic storage and charging microgrids. While achieving efficient
use of parking space resources reducing operational costs and increasing efficiency and improving
the owner experience it optimizes and improves the layout of the charging network through intelligent
refined and green management methods thereby facilitating the construction of low-carbon cities. At
the same time in 2024 the Lingtan high-position camera was released. It is powered by solar energy
and has ultra-low power consumption long battery life 4G and no need to pull wires to access the
network or electricity. It greatly reduces the difficulty of front-end construction and operation and
maintenance manpower costs and cooperates with the back-end intelligent parking space monitoring
server to ensure more accurate vehicle identification and efficiently enable intelligent management of
urban on-street parking.
(3) Make governance more efficient
The Company has always practiced the concept of "business traction and scenario
implementation" to empower efficient urban governance with digital intelligence. We seize the
opportunity to promote the modernization of the urban governance system and governance capacity
and provide solutions for application scenarios such as urban operation urban management
grassroots governance and community governance. We use intelligent means and real-time online
data to solve various complex problems in urban governance improve urban governance efficiency
and enhance public satisfaction.City operation: The Company has built an urban operation system with "comprehensive
situation perception intelligent trend analysis coordinated resource scheduling and multi-cross
business collaboration" to empower the modernization of urban governance with perception data. The
unified video IoT convergence center realizes a one-screen overview of the entire region the unified
algorithm supermarket realizes rapid discovery of urban events the unified integrated command and
dispatch system realizes the coordinated dispatch of event handling resources and the unified event
center realizes business collaboration across multiple departments. The monitoring of urban
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infrastructure the analysis and prediction of disaster data using big data technology and the scientific
decision-making suggestions provided by artificial intelligence technology effectively reduce the
probability and impact of disasters enhancing the level of urban safety.Urban management: With the goals of urban governance operational safety and serving the
people the Company has built an operational management system of "smart management of big
cities detailed management of big cities and public management of big cities" focusing on areas
such as street management urban sanitation and comprehensive governance and realizing
intelligent detection and alert of street violations illegal garbage dumping urban waterlogging
spillage and dripping of construction trucks illegal urban construction and lost manhole covers. It has
launched innovative scenario applications such as AI-powered patrol and unlicensed stall vendor
management and built an urban operation management model that integrates "real-time monitoring
dynamic analysis overall coordination command and supervision" and is committed to making urban
governance "smarter" urban operations "safer" and public services "more precise".
(4) Making life better
"With the help of AI we practice the concept of green water and green mountains and enhance
people's well-being." The Company focused on the two major fields of ecological protection and
administrative service providing integrated applications of IoT perception in industry-specific business
scenarios including biodiversity monitoring ecological environment protection arable land red line
safeguarding digital twin of water conservancy intelligent elderly caring and food safety supervision
to boost ecological civilization construction and make life better.Smart water conservancy: In order to promote advanced and applicable technologies to enable
high-quality development of water conservancy in 2024 the Company actively participated in the
Water Expo China and the 19th China (International) Water Innovation Technology Exchange
Conference co-organized by the China Water Resources Society and the China Water Resources
Engineering Association. Focusing on the needs of the construction and development of the national
water network and water conservancy digital twin the Company comprehensively enhanced its core
competitiveness in technical fields such as AI 5G and IoT. By utilizing a number of innovative
products in the water conservancy industry such as the video twin engine all-in-one device
hyperspectral water quality analyzer and digital-visual fusion all-in-one device real-time acquisition of
water environment data atmospheric data and video images is achieved; through water quality
monitoring stations atmospheric monitoring stations etc. the water environment can be displayed
more scientifically based on various data and the management center uniformly gathers and
integrates data resources from multiple parties and displays them visually on maps; relying on video
intelligence technology and rich AIoT device data the smart AIoT perception platform has
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comprehensively and accurately organized the water conservancy data of Dujiangyan making it
appear in an orderly manner accelerating the process of transitioning from traditional experience
management to information-based intelligent monitoring methods and improving the efficiency
accuracy and safety of water protection work.Biodiversity conservation: In order to achieve the intelligent monitoring of rare protected
animals the Company's relevant industry solutions focus on business scenarios and needs efficiently
and accurately identify rare species analyze activity patterns manage human activities monitor
forest and grass fires record meteorological hydrological water quality soil and other ecological
factor data fully leverage and enhance the application of ecological perception and monitoring data
fusion analysis and assist in the construction of China's nature reserve system. The Company has
implemented biodiversity monitoring and protection programs in many national parks and nature
reserves in China loaded hundreds of bird and mammal identification algorithms and conducted
detection identification classification and statistical analysis of wild protected animals in various
regions achieving real-time and precise observation of animal habitats. At the same time in response
to the boundary management requirements of various types of protected areas we strengthened the
management and guidance of human activities reduced human interference with wild animals and
fully assisted managers to carry out more refined ecological protection work based on rich monitoring
data records and statistical analysis results.Forest and grassland fire prevention: In order to improve the efficiency of forest and grassland
fire prevention and reduce the workload of managers the Company's corresponding industry
solutions use digital and intelligent technology to achieve real-time alert of multi-dimensional fire
conditions in the sky tower and ground multi-dimensional and precise positioning of fire points
secondary analysis and filtering of fire hazards comprehensive analysis and judgment and closed-
loop task handling processes thereby improving the accuracy of forest and grassland fire monitoring
and alarm and fire prevention and extinguishing emergency response capabilities better gaining
more "golden time" for early fire extinguishing and further achieving the goal of "timely response
quick control and speedy extinguishment" in forest fire prevention. At the same time it also provides
a wider and freer green space for wild protected animals and promotes the harmonious development
of man and nature.
4.1.2 Enterprise-level business
4.1.2.1 Business overview
The Company is committed to becoming the preferred supplier of AIoT infrastructure the
professional service provider of scenario-based digital intelligence applications and the key builder of
the AIoT ecology. The Company focuses on scenario digitalization business and carefully creates scene
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cameras IoT devices industry algorithms and industry platforms. By optimizing the security system
improving production efficiency and assisting business management the Company helps enterprises
achieve digital and intelligent transformation. The Company actively carries out innovative practices and
continues to assist the digital intelligence upgrades of enterprises in thousands of industries such as
manufacturing construction electricity petrochemicals coal steel finance education medical care
culture and tourism agriculture logistics and retail. It enables the realization of value in all scenarios
builds a large security system for users constructs digital and intelligent productivity and improves
business decision-making. It is committed to becoming a trustworthy enterprise digital intelligence
upgrade partner for customers. In this process through technology co-creation and business sharing
with partners we have built an AIoT ecological community of co-construction win-win and symbiosis
and jointly empowered the digital intelligence upgrades of enterprises.
4.1.2.2 Core strategy
With the continuous exploration of business scenarios the Company has further deepened its
presence in the core areas of enterprise production focused on scenario digital and intelligent business
and continued to carefully create scene cameras IoT devices industry algorithms and industry
platforms. At the important juncture of promoting new industrialization it helps enterprise customers
achieve "digital intelligence" upgrades and create new momentum for the high-quality development of
enterprises.
(1) Focus on scenario-based business and serve as a service provider for the digital and
intelligent transformation needs of enterprise scenarios
The Company has served more than 50000 enterprises across China in the field of enterprise
digital and intelligent transformation and has accumulated profound experience in enterprise digital and
intelligent transformation. It has ultimately formed four major business directions: safe production
production execution testing and measurement and green and low-carbon and continues to provide
good services and upgrades.Safety production: Continue to delve into high-risk production and operation scenarios of
enterprises and deeply integrate digital intelligence capabilities and scenarios. Through a series of
products such as leak detection thermal imaging temperature monitoring and device status inspection
equipped with a variety of intelligent algorithms such as personnel wear behavior environmental
anomalies and device status we have created an intelligent management and control solution based
on safe production and efficient operation and maintenance to achieve operation process control risk
hazard monitoring and environmental anomaly alert to complete the management of unsafe factors for
people unsafe conditions of objects and unsafe factors in the environment to safeguard safe
production.
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Production execution: Digitally express control and optimize the workshop production process
and realize production visualization data interconnection and intelligent management through visual
management systems production process traceability systems etc. to create a new generation of
smart factory management system. Based on the Company's own multi-dimensional intelligent
integration advantages using digital twin technology as the top-level presentation to create a human-
computer interaction platform for industrial sites efficiently realize the management of the entire
production process from order to finished product and greatly improve the Company's operating and
management efficiency.Detection and measurement: Focusing on the enhancement and expansion of perception
capabilities we continue to invest in technology research and application exploration expanding the
perception domain in the perception spectrum to low and high frequencies and obtaining more
dimensional collection methods. For example in the management of production devices audio and
vibration perception capabilities are used to perceive abnormal internal conditions of devices during
operation and to adjust the production rhythm in a timely manner to avoid device damage and
production interruptions. We continue to work hard in the next breakthrough direction other than visible
light achieving the transition from visible and knowable to invisible and knowable.Green and low-carbon: The Company focused on "source network load storage charging and
inspection" to implement the "dual carbon" strategy through energy conservation and emission
reduction focusing on scenarios such as photovoltaic storage and charging production and
manufacturing and enterprise parks. Through advanced technologies such as power electronics cloud
computing and artificial intelligence it created new zero-carbon parks/factories and provides full-stack
solutions for green energy to help enterprises achieve energy conservation and consumption reduction.In addition in response to the fragmented small-scale and multi-category digital and intelligent
needs of SMEs the Company's smart enterprise has created a flexible and lightweight DoLynk
Enterprise business focusing on SME customer scenarios and using "cloud + AI" technology to
provide professional services around the entire process of "assessment design implementation and
optimization". At the same time we provide an open platform with rich interfaces and open up IoT
capabilities AI algorithm capabilities and business capabilities to ecological partners for free allowing
the value of AI to benefit more industries and enterprises helping more enterprises reduce costs and
improve efficiency.
(2) Rooted in digital and intelligent scenarios driving technological innovation
Based on its profound technology layout and forward-looking market insights the Company is
supported by the IoT technology system the artificial intelligence technology system and the software
operation technology system. It insists on entering every specific scenario giving full play to decades of
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industry experience and promoting the realization of the digital and intelligent value of scenarios.The integration of vision and data develops to amplify the value of the industry: In the
cooperation and practice with global leading enterprises the Company has continuously innovated
accumulated and summarized relying on the full-frequency domain IoT perception capabilities to create
a comprehensive AIoT infrastructure build a comprehensive connection from information people
objects scenarios to services provide visual detection for production in all walks of life use smart data
to assist production decisions and realize the innovative development of the industry based on digital
and visual fusion technology. At the same time it goes deep into industry scenarios to bring customers
four major values: safety reliability convenience and efficiency.The collaborative application of large and small models is more efficient and cost-effective:
The Company continues to invest heavily in the field of AI focusing on building the multimodal fusion
Dahua industry vision large model. By integrating multimodal data such as images point clouds text
and voice it greatly improves visual analysis capabilities and develops industry-specific small models
for different business scenarios generalizing the application of IoT perception technology to various
fields. Through the fusion and collaboration of large model + small model computing power the large
model supervises the small model to improve performance and the small model solves the problem of
the high cost of the large model allowing enterprises to control computing power costs and make
algorithm training more efficient bringing more efficient and intelligent solutions to various industries.
(3) Strengthen the "1+6+N" unified architecture empowering enterprises to innovate in all
business scenarios
In the process of serving enterprises' digital intelligence upgrades the Company uses common
middle platform capabilities as a foundation to quickly build a large number of basic business and
industry business applications on a unified framework. In order to more efficiently serve the digital and
intelligent transformation of customers in various industries the Company's solution basic framework
has been upgraded to a unified framework of "1+6+N" which means "1 unified framework to serve
digital and intelligent transformation business 6 major middle platforms to build an internal engine and
promote the implementation of N types of applications" truly accelerating the launch of industry
applications and speeding up the coverage of industry customer scenarios and businesses.
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? Strengthen the enterprise middle platform capabilities and build the enterprise digital
intelligence foundation
IoT middle platform: By adopting a set of intelligent IoT architecture the growing number of IoT
devices in the enterprise business can be accessed in a low-code manner. It can not only solve the
problem of unified element access of IoT devices from multiple manufacturers multiple systems and
multiple types but also cope with the scale of group networking at the park level provincial level and
national level.Data middle platform: It provides storage computing exploration and security capabilities for a
variety of data including videos images and structured data. This helps to address the issues of
expanding data scales increasing varieties of data and the need for mutual integration in enterprise
businesses. At the same time utilizing a combination of big data technology expert knowledge and
experience accumulation we have transformed scenario perception data into more valuable industry
business big data.Intelligent middle platform: It provides an algorithm generation center to solve the problem of
intelligent implementation of general scenarios and personalized business scenarios of enterprises.Core algorithm assets are managed and allocated through the algorithm asset center and the
computing power resources of intelligence devices are fully utilized through the computing power
scheduling center.Interaction middle platform: Through technical means such as AR display VR display 3D display
real-life three-dimensional and video twins we can improve twin capabilities enhance data expression
capabilities through low-code image walls and improve control capabilities through smart display
manager so that the value of enterprise digital transformation can be made concrete.
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Business middle platform: We integrate multiple engines to build a business middle platform
improve the reusability of software shorten the development cycle of various fragmented industry
applications accelerate the implementation of digital and intelligent applications of N types of
enterprises create solutions for customers that are in line with the enterprise’s own business and
scenario applications continue to consolidate traditional existing businesses quickly match customer
businesses and continuously accumulate replicable and popularizable digital and intelligent business
scenarios.Open middle platform: On one hand we attract professional manufacturers within the industry to
integrate into the Company's business system to collectively strengthen our foundational capabilities;
on the other hand we open the Company's capability system to empower our ecosystem partners
facilitating more efficient services for our enterprise customers.? Promote public cloud SaaS applications helping enterprises upgrade their services
In response to the fragmented small-scale and multi-category digital and intelligent needs of
various enterprises the Company's smart enterprise has created a flexible and lightweight DoLynk
Enterprise using "cloud + AI" technology to provide professional services around the entire process of
"assessment design implementation and optimization". By providing standard lightweight cloud
solutions DoLynk Enterprise achieves lightweight deployment and convenient management guiding
enterprises to optimize management efficiency boost business efficiency explore data value and avoid
operational risks. In addition DoLynk Enterprise also provides an open platform with a rich set of
interfaces offering ecological partners free access to IoT capabilities AI algorithm capabilities and
business capabilities allowing AI value to benefit more industries and enterprises enabling more
enterprises to reduce costs and improve efficiency.In processing factories DoLynk Enterprise provides device management solutions including
device status monitoring real-time alarm for abnormalities and device maintenance management
achieving asset digitization and process standardization; in logistics parks DoLynk Enterprise offers
vehicle management and intelligent scheduling solutions to standardize vehicle entry and reduce labor
costs; in workshops DoLynk Enterprise loads various AI algorithms to detect violations and assist in
safe production; in office buildings based on the needs for visitor access parking property
management etc. DoLynk Enterprise implements intelligent scenario applications to enhance
operational management efficiency.? Build a business engine pool to accelerate the implementation of N types of applications
Based on the evolution of the enterprise digital and intelligent framework the continuous
consolidation of the enterprise's middle platform capabilities and the expansion of its business the
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Company has gone deep into the subdivided scenarios of various industries and has worked hard in
multiple industry scenarios such as factories hospitals schools parks chemical parks etc.continuously polishing scenario-based solutions and deeply refining the industry's business value to
provide customers with scenario-based digital and intelligent solutions that are feasible quantifiable
and value-calculated.
4.1.2.3 Industry value practice
The Company focuses on enterprise business scenarios aiming for online resources intelligent
business and data-driven decision-making. It explores the operational and decision-making value of
enterprise production management data provides a means for business management and enhances
decision-making capabilities. We work hard in the fields of manufacturing construction education
electricity petrochemicals coal steel finance medical care logistics culture and tourism agriculture
and retail focusing on core scenarios such as "5+X" (factory manufacturing energy production school
education healthcare and park management) providing customers with high-value digital intelligence
solutions empowering the realization of enterprise value in all scenarios and enabling business
innovation.Factory manufacturing: AI + industrial vision applications assist enterprises in improving
quality and efficiency
In the industrial field AI + big data cloud computing and other advanced technologies are used to
achieve visual management and traceability of the entire production process realize unmanned
production sites and visualize problem tracing.The Company fully leverages its in-depth accumulation in the fields of AI and vision applies
leading machine vision automation digitalization AIoT and other technologies and uses digital twin
technology as the top-level presentation to create a human-computer interaction platform for industrial
sites. Through the digital twin platform the Company's factory scenario solutions have achieved
coverage from single scenarios to multiple businesses from factory security and workshop energy
consumption to production business comprehensively improving the depth and breadth of the
interconnection between people machines and systems. Through the digital integration of product data
flow manufacturing control flow and order delivery flow information it more efficiently realizes the
visualization of the entire production process from order to finished product.At the same time based on the enterprise group management platform architecture the Company
realizes unified management of intelligent management systems such as energy consumption vehicles
perimeter and integrated security and fire control accurately controls abnormal situations such as
personnel and vehicles and effectively controls the real-time status of factory fire protection and
security IoT facilities etc. helping enterprises to achieve comprehensive management of the park.
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Energy production: Combining video AI with AIoT to create a new model for risk and hidden
danger supervision
The production scenarios of energy enterprises face numerous risks and hidden dangers with
common issues including a lack of diverse traditional regulatory methods limited operation and
maintenance personnel and a complex environment. The Company has long been committed to using
video AI large models and AIoT technologies to achieve online automatic monitoring and intelligent
alert of risks and hidden dangers in production scenarios reduce production risks improve personnel
operation and maintenance efficiency and efficiently assist energy enterprises in safe production.Based on the full perception capabilities of "looking smelling asking and touching" the Company
has realized a new model of online supervision with machines assisting people. By loading AI
intelligence and visual large model capabilities into videos industrial televisions are given a second
"life". Combined with infrared laser hyperspectral voiceprint and other AIoT multi-dimensional
perception technologies remote intelligent visual monitoring of the operating status of devices online
compliance management of work sites and safe and stable management of production environments
are achieved providing energy enterprises with new digital and intelligent management and control
models such as risk monitoring.Currently the Company has applied it in multiple energy sub-industries such as the electricity and
coal industries. Based on new regulatory requirements and integrating new technologies it has
achieved online visual intelligent monitoring and early alert of safety management and intelligent
inspections effectively improving the level of production supervision reducing accident rates and
simultaneously reducing labor costs. The Company will continue to explore the deep integration of AIoT
technology and productivity to help energy enterprises upgrade their safe production to digital
intelligence levels.School education: Focusing on "balance precision efficiency and safety" providing a
comprehensive solution for campus digital intelligence
The Company empowers the digital transformation of universities with digital intelligence. Based on
video capabilities it has created campus safety big data campus AI Hero Luban digital twin class
inspection supervision and other solutions built a campus IoT digital intelligence middle platform
focused on the integration and innovation of university business realized data value empowerment
and assisted the digital transformation of universities. The Company integrates artificial intelligence and
big data technology into video scenarios focusing on the campus AI large model making it possible for
videos to move from static recognition to dynamic behavior understanding. It uses large model
technology to help schools solve effective prevention and control of unsafe behaviors such as illegal
distribution of leaflets posting of small advertisements and violent destruction of facilities on campus.
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Campus safety big data has transformed security work from passive to active providing active alert
capabilities for university safety pain points such as students losing contact abnormal work and rest
schedules and high-frequency occurrences in key areas. It also applies large models and big data
technology to achieve human-computer interactive retrieval such as text search for images and fusion
search making finding people and cars quick and efficient. Luban digital twin enables the overall
campus security prevention and control situation to shift from a limited glimpse to a global visual angle
and provides all-around and three-dimensional protection for the safety of university teachers and
students.In a high-tech school the Company helped the school build a campus AI Hero system. Through
intelligent audio and video analysis means it implemented campus safety risk prevention and control
and anti-bullying solutions greatly improving students' sense of security. At a comprehensive university
the Company used campus safety big data technology and tactics solutions to help the school address
the issue of missing students on campus. At a certain polytechnic university by building a class
inspection and supervision solution the system can analyze classroom process data including key
indicators such as students' attendance rate head-up rate front-row seating rate as well as instructors'
teaching behaviors classroom interactions etc. providing an objective basis for teaching evaluation
and comprehensively improving the school's digital intelligence capabilities.Healthcare: Focusing on the construction of “three-in-one” smart hospitals promoting
high-quality development of the medical industry
The Company takes the national "three-in-one" smart hospital construction standards as its
guideline deeply integrates IoT big data and artificial intelligence technologies and builds a
collaborative development system of "smart management - smart services - smart healthcare"
comprehensively promoting a new pattern of high-quality development of public hospitals. By creating
an intelligent nursing decision-making system a smart ward management platform and a full-process
medical service system we have achieved significant results such as improving the precision of nursing
operations increasing the efficiency of medical resource scheduling and shortening patients' waiting
time for medical treatment. Building on the foundation of continuously consolidating the security
prevention construction of smart hospitals the Company focused on breakthroughs in eight core
scenarios including smart outpatient clinics smart wards perioperative safety supervision and AI
supervision of medical behavior to assist hospitals in their digital upgrades.In 2024 the Company continued to deepen its smart ward business with the core goal of
"improving hospital nursing services and optimizing patients' medical experience" and developed smart
ward solutions for all business entities including doctors nurses patients and managers. By deeply
mining system data conducting information cleaning and governance we have presented key data in
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an intuitive and convenient way on smart terminals in various scenarios assisting hospitals in achieving
intelligent management. At the same time the solution comprehensively covers the entire scenario of
patients from admission to discharge from registration to consultation and from the lobby to the
examination room. By matching the optimal diagnosis path through intelligent algorithms and combining
guide screens and smart terminals for real-time diagnosis guidance the hospital's service efficiency
and patient experience have been significantly improved further promoting the intelligent upgrade of
medical services.Park management: Creating a digital headquarters and smart parks to deeply empower
enterprises
As the construction carrier and physical foundation of digital operations and smart cities the park’s
intelligent operation level directly affects the management and operations of the enterprise. With the
continuous development of technologies such as large models and AIoT the Company continues to
upgrade its digital solutions for the park realize the collaboration of multiple scenarios and multiple
businesses and transform from the original five-dimensional integration to the construction of a five-star
(new) park. It integrates new energy new services new capabilities new security and new
perspectives to establish a "green efficient and safe" digital benchmark park.More industries: Focus on policy guidance and customers' internal needs and participate in
the development of new opportunity points in various industries
In the tourism industry: In-depth interpretation of industry documents supporting design of smart
scenic area solutions helping scenic areas to create A-level upgrades in management service
operation safety environmental protection and other aspects; actively responding to the requirements
of the Cultural Relics Protection Law to strengthen the digitalization of cultural relics protection and
launching smart museums smart cultural relics (preventive protection digital protection of cultural relics
cultural relics warehouse management intelligent management of cultural relics) smart cultural
heritage protection (protection of immovable cultural relics preventive protection of cultural relics and
historical sites AI cultural relics protection) actively contributing digital intelligence in the field of cultural
heritage protection.In the financial industry: The construction of smart outlets is no longer a traditional security
business but a digital empowerment centered on the efficient and high-quality development of outlet
services. It fully loads solutions such as screen display smart electricity use and video twins covering
six major scenarios: comprehensive reception product launch interactive marketing non-cash area
services wealth management and convenience services. It comprehensively improves the service
level of outlets and enhances user service experience.In the construction industry: 1) Actively participate in the construction of affordable housing
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focusing on the IoT access operation and supervision applications of affordable housing with the
architecture of community solutions + two meters and one lock + rental application platform to achieve
the three-in-one intelligent integration of property on-site services group network operations and
government unified supervision to help customers improve service content operational efficiency and
regulatory transparency; 2) Focus on building gas terminal supervision applications with urban pipeline
gas users and rural gas cylinder gas users as the core to explore a set of strong landing application
solutions integrating unified networking multi-dimensional alert rapid linkage and intelligent disposal.On the premise of meeting the unified supervision of the government it can also adapt to a variety of
maintenance modes greatly reducing the threat of gas leakage to people’s lives and property; 3) For
industrial parks through AIoT intelligent middle platform precise investment promotion and enterprise
services a unified management platform for industrial parks is created with a unified entrance and
unified data. Multiple business scenarios are centrally managed data resources from all parties are
integrated interconnected and a park data center is built. Digital twins are used to empower improve
the park’s operational management efficiency and assist in decision-making.The Company's enterprise business is based on a new starting point for digital and intelligent
development and continues to focus on the practice and innovation of enterprise digital and intelligent
transformation. It always insists on the development of quantifiable calculable and feasible product
solutions helping users build a large security system build digital and intelligent productivity and
improve operational decision-making. It is committed to becoming the most trustworthy enterprise
digital intelligence upgrade partner for customers.
4.1.3 SME business (SMB)
In 2024 facing the complex and changing market environment and continuously upgraded
industry demands the Company's small and medium-sized enterprise business took "local operation
and district and county lower-tier" as its strategic core continuously enhanced customer value
expanded market coverage horizontally deepened market penetrating power vertically and
continuously optimized the channel ecology. We have promoted the in-depth development of small
and medium-sized enterprise business towards refinement scenario-based and digital and intelligent
transformation empowered the digital and intelligent transformation of millions of small and medium-
sized enterprises with AIoT technology and built a symbiotic and prosperous channel ecological
system.
(1) Deepen local operations and build a new ecosystem for the lower-tier markets
The Company is unswervingly promoting the strategy of "local operation and district and county
lower-tier" guiding customers to localized operations product balance and the continuous
profitability of customers. The Company accurately allocated resources to city district and county
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markets continued to assist first-tier distributors in closely connecting with the local service provider
system and reshaped the channel value distribution system. Through the "district and county
responsibility contracting system" the business mechanism of "whoever cultivates the land harvests
the crops" was clarified to protect the rights and interests and benefits of distributors' localized
operations. At the same time the Company continued to expand the market demand for small and
medium-sized enterprises through sellout policies such as "installation red envelopes" "online
rewards" "sales staff running & signing incentives" etc. to stimulate the enthusiasm and subjective
initiative of partners effectively support the implementation of localized operations and district and
county lower-tier strategies and ensure the continued profitability of channel ecological partners.
(2) Technology drives product innovation and consolidates scenario-based
competitiveness
Relying on the "video + AI + IoT" technology base the Company continued to optimize Yunlian
Platform 2.0 comprehensively upgraded Yunlian’s core business and functions and launched more
abundant value-added services achieving a year-on-year growth of 252% in new devices and 69% in
new users. In terms of products the Company has iteratively upgraded its circulation-type dual-light
products and newly launched indoor and outdoor wireless products Nightvision King 2.0
HarmonyOS NEXT series Door God series HarmonyOS Camera series 4G lifetime free flow
products etc. to improve the "wired + wireless" product series layout and win wide recognition and
praise from customers. At the same time the Company has deployed exclusive online products on
multiple e-commerce platforms achieved online and offline product segmentation and product
coverage of all sales channels and fully demonstrated the value and market competitiveness of the
Company’s AIoT products to its partners. In the field of scenario solution innovation based on new
business scenarios the Company has launched a series of small and micro scenario innovation
solutions such as e-commerce return video tracing solutions express station misdelivery control
solutions smart agriculture and fishery breeding etc. It has firmly followed the direction of scenario
products + district- and county-level characteristic economic industry supporting facilities and
realized the implementation of multiple domestic small and micro scenario solutions.
(3) Build a comprehensive full-chain three-dimensional marketing system and create a
win-win partnership
In terms of marketing and brand building the Company has supported partners in building digital
stores on various online local life platforms enhancing brand voice and online traffic and helping
partners improve their digital marketing capabilities. Offline we have increased support for the
construction and operation subsidies of district and county specialty stores city showrooms and
storefronts to achieve comprehensive coverage of "small and beautiful". The Company has built a full-
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chain service ecosystem of "pre-sales sales and after-sales" continuously introducing valuable
small and medium-sized customers to responsible distributors in districts and counties assisting first-
level distributors and service providers to develop small and medium-sized scenario users in the
responsible districts and counties and providing distributors and service providers with
comprehensive technical and business support to enhance the project service capabilities and profit
margins of distributors and service providers. By building a three-dimensional digital marketing
system shaping a digital channel ecosystem of online marketing online stores and online services
we have helped customers achieve a full closed loop of "traffic leads → order conversion →
installation and delivery" and achieve win-win cooperation with partners.
4.1.4 Service carrier business
The Company is deeply integrated into the service carriers' digital and intelligent transformation
development strategies and visual networking business development plans leveraging its own video
capabilities and scenario-based solution advantages to carry out all-around cooperation in the fields
of standardized product creation artificial intelligence algorithms large model all-in-one devices
video security and big data. At the same time the two parties complement each other's strengths and
share resources to jointly expand the market and achieve mutual benefit and win-win results in the
DICT industry market and small and medium-sized enterprise development and continue to create
greater value for customers across various industries.
(1) Capability complementarity and building a new type of information infrastructure
The Company has leading technology and intelligent manufacturing capabilities in the fields of
visual IoT and connectivity and combines service carriers’ computing power and network capabilities
to jointly create deeply customized industry products such as AI terminals and AI large model all-in-
one devices.
（2）Technological complementarity and promoting the construction of core
technological capabilities
Co-build core capabilities such as large models and big data promote the transformation of
traditional communication services to digital and intelligent services and create new business models
and business growth points. Based on its own video capability advantages the Company has helped
service carriers build and develop visual networking platforms in terms of video aggregation and
access capability platform construction AI scenario implementation and application expansion.
（3）Resource complementarity and accelerating the digital development of the industry
Construction of Digital China development of the digital economy mining of data value and
digital and intelligent transformation and upgrading of governments and enterprises. The Company
has a strong R&D team and business innovation capabilities and the service carrier has huge user
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resources and channel advantages. The two parties have carried out in-depth cooperation and joint
expansion in industries such as social governance smart transportation education culture and
tourism natural resources industrial manufacturing mining and energy.
4.2 Overseas Business
4.2.1 Business overview
The Company formulated a "going global" strategy to enter the international market in 2003
began to strengthen its own brand capability development in 2008 and started to set up local
overseas locations and local business operations in 2014. Over the years we have comprehensively
laid out overseas channels project expansion technical support supply logistics systems and after-
sales service construction to ensure a virtuous cycle of overseas business development and long-
term localized operations. In addition through the support of R&D investment and technological
innovation the innovation and enrichment of product lines and the continuous refinement and
adaptation of solutions; the focus on channel penetration overseas has steadily improved the product
competitiveness solution capabilities and levels of localized service of the business demonstrating
professional quality and high-quality services to global customers. The brand value continues to
increase laying a solid foundation for the Company's accelerated expansion of overseas business
and ensuring the sustainable development of the business. Currently the Company has invested in
and established 68 overseas subsidiaries in major countries on all continents and its products and
services cover more than 180 countries and regions around the world. As the global demand for AIoT
continues to grow the Company will continue to focus on marketing upgrades product innovation
industry development and ecological cooperation to further expand the international market.
4.2.2 Core strategy
(1) Continuously improve global marketing and operations organization and localized
operating capabilities
The Company maintains a prudent business strategy continuously strengthens its understanding
and adaptability to the regulations politics and economic environment in the regions where the
Company's business is involved formulates differentiated national business strategies based on the
"one country one policy" approach and fully absorbs local talents through continuous channel
penetration integrator business expansion industry breakthroughs and replication and development
of new business lines. It builds a professional and diversified organization team actively adapts
localized products and solutions and continues to provide front-line customers with efficient
professional and nearby services. The Company strengthens its local operational capabilities through
the "strategic customization + deep penetration" model implements the talent localization strategy
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forms a cross-cultural composite team and establishes a three-level management system of
"headquarters - region - country" to achieve simultaneous improvement in decision-making efficiency
and effectiveness.
（2）Build an agile supply service system
In the construction of the supply service system six regional supply centers have been
established in Europe Southeast Asia the Middle East Latin America and other regions and
national central warehouses have been established in many key countries around the world to create
a three-level supply system of "headquarters - regional supply center - national warehouse" to
enhance global supply delivery capabilities. In terms of the service system we have established a
global integrated delivery system technical support system operation and maintenance management
system customer service system and training and certification system and have set up more than
120 overseas after-sales service stations; among them more than half of the countries have directly
provided overseas hotline services which has greatly enhanced our global service and delivery
capabilities. The two major supply systems form a closed-loop ecosystem of "front-end market insight
- middle platform rapid response - back-end efficient support" which shortens the Company's
overseas business delivery cycle and significantly improves customer satisfaction. This model has
achieved remarkable results particularly in countries along the "Belt and Road" and has been
successfully copied to emerging markets.
(3) Expand rich innovative business categories and achieve diversified business layout
Based on the Company's years of technological accumulation and exploration practice in the field
of AIoT combined with the differentiated scenarios and needs of various overseas regions we work
together with upstream and downstream partners to bring China's latest digital and intelligent
products solutions and technical concepts to all parts of the world. As one of the typical
representatives of digital and intelligent enterprises going overseas the Company has continuously
invested in technological innovation and product research and development for many years
continuously improved its service system and gradually built localized operational capabilities
helping the Company’s products and solutions continue to maintain a leading position in overseas
markets. The traditional video business maintained steady growth which not only supported the
steady growth of the main business but also solidified the foundation for the development of new
businesses. Based on the "video + AIoT" dual-engine driven strategy the Company has broken
through the boundaries of traditional security and formed an innovative business matrix covering
multi-dimensional scenarios. While relying on existing overseas channels we have quickly expanded
new professional channels and achieved rapid growth in innovative businesses such as thermal
imaging commercial display screens smart buildings fire protection and data communications to
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meet the differentiated business and scenario needs of different countries and regions overseas.
(4) Provide complete scenario-based solutions
Relying on the development path of "video-based foundation and innovative fission" the
Company has achieved a strategic leap from a single security device supplier to an intelligent IoT
solution provider. In recent years the Company has worked with partners around the world to actively
explore vertical industry markets providing complete scenario-based solutions for industries such as
safe city smart transportation retail education energy and manufacturing. In particular the
Company has had many successful practices in the areas of digital urban governance intelligent
transportation management ecological environmental protection and digital education. For example
in the Amazon rainforest the Company's AIoT solutions have greatly reduced the area of forest fires.In many regions such as Africa Europe the Middle East and Asia-Pacific with the implementation of
the Company's various intelligent monitoring systems and Skynet systems the urban management
efficiency case solving rate and successful accident alert rate in these regions have rapidly improved
the traffic accident rate has gradually decreased and road safety and travel efficiency have been
guaranteed. At the same time the Company's digital and intelligent solutions for the education
industry also assist with the digital intelligence upgrade of education in some overseas regions
allowing excellent educational resources to cover remote areas and promoting remote sharing of
teaching resources and educational equity.
(5) Construction of a global digital ecological community
The globalization path embodies the characteristics of "technological deep squat + ecological
fast run". Its strategic core lies in accelerating the transformation to an industrial digital service
provider while maintaining its advantages in the field of video IoT through extreme scenario-based
capability (covering more long-tail demands) and flexible cost structure (double elasticity of
manufacturing and service). It emphasizes the establishment of a "sharp knife advantage" in specific
fields and the formation of a staggered competition pattern.
4.2.3 Social value practice
(1) Providing a multicultural integration international talent training platform
The localization rate of overseas employees has exceeded 60% and more than half of the
employees come from the talent resource pool in the country where the business is located. On the
one hand it contributes to the Company's localized operations; on the other hand it continues to
cultivate high-tech professionals for the local area and contributes to local employment. The
Company focuses on the growth and talent development of global employees continuously
enhancing employee skills and knowledge training enriching the welfare system and promotion
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pathways and is committed to providing a fair just and high-quality growth system and platform for
global employees.
(2) Practicing the “dual carbon” strategy and assisting green development
Adhering to sustainable development is a manifestation of the Company's social responsibility
and commitment. Through the layout of clean technology the Company actively carries out innovative
product green design reduces product energy consumption and promotes green expansion and
business upgrades in the global market. Among various AIoT solutions we adopt intelligent energy-
saving and emission reduction solution designs to promote the application of global green solutions
and reduce global carbon emissions. For example the Company provides solutions in many fields
such as intelligent supervision of nature reserves water conservancy and water affairs monitoring
and management forest fire prevention etc. actively participates in and promotes sustainable
development empowers environmental protection and green development with digital intelligence
and contributes to building a better and greener world. In 2022 as a national-level green supply chain
and green factory the Company was awarded the honorary title of "Green Leader Enterprise". In
2023 the Company became a member of the United Nations Global Compact organization for the
first time injecting new strength into the realization of the United Nations' sustainability goals. In the
same year the Company won the silver medal in the audit of EcoVadis a global authoritative
sustainability rating agency and ranked among the top 15% of global enterprises. In 2024 the
Company officially passed the ISO 37301:2021 compliance management system certification and
obtained the ISO 37301 compliance management system certificate issued by BSI (British Standards
Institution) becoming the first Chinese company to obtain the ISO 37301 certificate in the video-
centric AIoT industry.
4.3 Innovative Business
In recent years the boundaries of the AIoT industry have continued to expand. Based on its in-
depth understanding of the diverse needs of customers and years of accumulation and sedimentation
in the field of AIoT the Company continues to expand its innovative business and provide customers
with richer and more complete solutions. The Company is continually developing innovative
businesses by seeking fields with great growth potential and broad market opportunities
corresponding talent selection and incentive mechanisms thereby expanding the Company's AIoT
industry capability circle. The Company's innovative business mainly includes: machine vision mobile
robots thermal imaging automotive electronics smart security inspection smart fire control storage
medium and other relevant businesses.
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4.3.1 Machine vision and mobile robots
The Company's subsidiary Zhejiang HuaRay Technology Co. Ltd. (hereinafter referred to as
HuaRay Technology) is a professional company focusing on the research and development production
and sales of machine vision and mobile robot products. The Company adheres to the core mission of
"making factories smarter" focuses on areas related to smart manufacturing and smart logistics drives
its development with technological advantages relies on years of AI technology accumulation in the
industrial field and the established industrial IoT ecosystem helps industrial digitalization and realizes
intelligent and flexible production management.At the same time HuaRay Technology is also constantly exploring new terminal application
scenarios to help customers improve quality increase efficiency reduce costs and reduce inventory
and ultimately achieve "interconnection human-machine collaboration data-driven and intelligent
transformation" empowering thousands of industries and promoting global intelligent manufacturing to
a new form.As a national high-tech enterprise and a specialized and innovative "little giant" enterprise HuaRay
Technology has always insisted on technological innovation. As of the end of 2024 the Company has
applied for more than 500 patents including more than 300 invention patents and has achieved patent
layout in 11 key technology fields such as embedded software image optimization recognition
algorithms network transmission navigation positioning scheduling and motion control.The Company's machine vision products include a series of products such as 2D industrial
cameras 3D industrial cameras smart cameras smart code readers acquisition cards and
accessories such as lenses cables and light sources. Together with the self-developed visual
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algorithm platforms MVP and MVT they can be used for positioning measurement defect detection
code reading and recognition and other scenarios. Currently the products and solutions have been
widely used in lithium batteries photovoltaics logistics 3C and other industries.Mobile robot products are mainly used in logistics warehouses and material handling including
latent lifting fork-picking and transfer robots. Through the RCS scheduling system iWMS warehouse
management system etc. they can provide functions such as handling stacking sorting etc. and
provide end-to-end intelligent solutions for logistics handling in various industries helping customers
build smart factories.
4.3.1.1 Machine vision
HuaRay Technology's machine vision products have built a complete closed-loop visual application
ecosystem from underlying acquisition devices like industrial cameras to upper-level visual algorithm
software. Users can choose "industrial camera + algorithm software" to build a visual solution or they
can choose smart products such as smart code readers and AI visual sensors to implement solution
design. The rich product selection can more flexibly respond to the personalized needs of thousands of
industries.At the same time in terms of core algorithms HuaRay Technology continues to strengthen the
development and product applications of AI. The code reading algorithm is fully AI-based "end-to-end"
which greatly improves the code reading performance; OCR character recognition technology realizes
single-character end-to-end unsupervised and other AI recognition algorithms and completes the full
AI of character recognition algorithms with recognition capabilities reaching the industry-leading level;
image generation is based on large model technology which can simulate the generation of various
defect samples greatly improving the implementation capabilities of defect detection projects; in terms
of incremental learning it has achieved the first domestic application reducing the training time by
more than 80% in terms of retraining.
(1) Machine vision algorithm platform
HuaRay Technology's independently developed machine vision algorithm platform MVP is
dedicated to providing customers with algorithm tools for quickly building visual applications. The
platform integrates over a thousand independently developed basic image algorithms and is the
"brain" of machine vision. It connects cameras with PLCs (Programmable Logic Controllers) robotic
arms and other devices to help form a technological closed loop for perception cognition and
decision-making. At the same time the platform combines a large number of deep learning algorithms
of visual images of industrial parts for perception cognition and decision-making training and
establishes a big data detection model which can achieve high-precision and high-efficiency visual
positioning image recognition defect detection and other functions. It uses a GUI visual interface
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drag-and-drop to freely build visual processes and quickly configure visual solutions. It supports
multi-task synchronization and multi-process asynchrony providing a rich communication interface to
meet the demands for the highly efficient application of multiple products. At the same time the deep
learning interface has been opened on the MVP algorithm platform supporting the reasoning
application of AI model. MVT is an industrial AI visual platform based on deep learning providing
customers with end-to-end full-process services to build an "industry brain" with higher efficiency and
lower costs. It integrates sample annotation sample enhancement and model training and has built-
in neural network models: classification detection semantic segmentation optical character
recognition (OCR) etc. At the same time each type of task supports large medium and small
models to meet the needs of multi-feature detection in complex industrial environments. The model
trained by MVT can be conveniently loaded into the MVP algorithm platform and flexibly combined
with other operators in the MVP algorithm platform.
(2) Machine vision hardware products
In the aspect of machine vision hardware products the Company has gradually changed from
the manufacturer of single industrial cameras to the provider of machine vision core components and
solutions. At present it offers a series of products such as area scan camera line scan camera 3D
camera smart camera code reader visual controller acquisition card lens and light source related
to vision integration solutions.The company launched many new product series in 2024 such as: the world's first 245-
megapixel CXP interface large area scan camera 152-megapixel global 10 Gigabit network large
area scan camera 4K 4-line true color camera 8K/16K CXP interface line scan camera 10 Gigabit
network acquisition card logistics industry AI high-performance 7000P code reader industrial-grade
RS3000 series handheld code reader SS4000 series AI visual sensor high-speed and high-precision
logistics second-generation 3D camera intelligent medical code reading and traceability system
flowchart-based visual algorithm platform MVP5.1 etc.
4.3.1.2 Mobile robots
The widely applicable typical intelligent logistics system launched by HuaRay Technology
includes industrial mobile robots automatic chargers communication systems (WIFI/5G) warehouse
management platforms integrated control platforms scheduling simulation platforms and robot
scheduling platforms providing smart factories with various solutions such as automatic loading and
unloading and goods-to-person sorting.
(1) Mobile robot large-scale scheduling system
HuaRay Technology RCS Scheduling System: The scheduling system employs a self-developed
scheduling algorithm including a dynamic switching allocation algorithm based on multiple constraint
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conditions a multi-constraint path planning algorithm a safety detection algorithm based on the
separation axis theorem a multi-strategy fusion multi-vehicle traffic control algorithm and a MAPF
unlocking algorithm; at the same time combined with the self-developed AMR device's perception
and recognition algorithm motion control algorithm intelligent electronic control and high-precision
intelligent electric drive algorithms it achieves ultra-large scale map construction and millisecond-
level path planning capable of supporting optimal allocation of thousands of concurrent tasks and
multi-server cluster scheduling thereby providing a variety of functions such as multi-robot cluster
path planning avoidance control robot traffic management intelligent task allocation multi-vehicle
avoidance traffic balancing control system load balancing intelligent charging management safety
monitoring storage location management intelligent operation and maintenance management and
report statistics.HuaRay Technology iWMS warehouse management system: Based on the RCS robot
scheduling system it realizes various automated warehouse and distribution scenarios such as
goods-to-person sorting production line delivery point-to-point transport and loading and unloading
at the line-side warehouse. It optimizes storage and distribution through automated strategies such as
shelving strategy allocation strategy wave strategy and mixed placement strategy. Combined with
functions such as big data analysis of operational data and algorithm analysis it further optimizes
business processes and inventory management improving operational efficiency.
(2) Mobile robot hardware products
HuaRay Technology's industrial handling robots such as latent lifting transfer and fork-picking
robots are equipped with a rich variety of network systems and intelligent charging systems and are
widely used in modern warehousing management and production handling scenarios in various
industries. In 2024 a new generation of latent AMR series and fork-picking robot products that are
more stable and safe were launched and have been widely used in the market. They are faster to
deploy and maintain and have higher operating precision. The load specifications cover typical
scenarios such as 60KG 400KG 600KG 1000KG 1500KG 2000KG and 3000KG. The high-
precision dual-lift products launched have achieved large-scale application among many customers in
the lithium battery industry.The navigation mode realizes laser SLAM navigation visual navigation inertia navigation and
multi-sensor fusion navigation and is compatible with visual obstacle avoidance and TOF three-
dimensional obstacle avoidance. Through multi-dimensional perception the product achieves
millimeter-level high-precision docking. The 5G communication scheduling forklift has a small control
latency which realizes business from indoor to outdoor and is widely applied in the new energy
automotive parts textile 3C and food industries.
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4.3.2 Thermal imaging
With thermal imaging technology as its core Pixfra Technology provides thermal imaging
modules personal vision products security products platform software and full-scenario digital
intelligence solutions to the world. The Company's products and solutions are widely used in many
fields such as low-altitude economy emergency management outdoor sports industrial temperature
monitoring new energy perimeter protection natural ecology environmental protection and urban
lifeline. The Company is committed to perceiving the world with temperature and developing leading
thermal imaging products and full-scenario digital intelligence solutions to serve global customers.In 2024 Pixfra Technology passed the certification of "Hangzhou Enterprise High-tech Research
and Development Center" and "Zhejiang Enterprise High-tech Research and Development Center"
and was rated as the sixth batch of national specialized and innovative "little giant" enterprises.
4.3.2.1 Technological breakthroughs
In 2024 Pixfra Technology continued to consolidate its technological foundation and maintain its
leading position in core technologies in the industry. Pixfra Technology has always been committed to
providing personal visual products with excellent images to meet customers' unremitting pursuit of
high-quality visual experience. In 2024 the Company launched the PIPS2.0 image algorithm. This
breakthrough technology can accurately highlight target details significantly improve edge clarity and
effectively reduce noise in the image thereby bringing users more delicate and realistic image effects.The launch of the PIPS2.0 image algorithm marks another solid step forward for Pixfra Technology in
providing high-quality image products. Smart Thermal 5.0 is loaded with low slow and small UAV
detection algorithms intelligent normalization algorithms animal detection algorithms long-distance
small target algorithms and intelligent algorithms for improving detection distance and reducing false
alarms which improve the intelligence level of thermal imaging product industry applications.
4.3.2.2 Product innovation
Pixfra Technology continues to maintain its leading position in the security field and continues to
deepen its application in the security subdivision industry scenarios. In 2024 it developed a series of
integrated open source HarmonyOS products to meet the requirements of power Harmony in power
scenarios. A mobile arming product was released. The product has a built-in battery supports 5G
communication and supports quick installation which facilitates customers' temporary deployment
requirements in the fields of operation monitoring and power intensive care.
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In addition Pixfra Technology is also continuously expanding new product forms and new
application fields. In the field of integrated applications a series of module products such as micro
module and digital module have been released further improving the module product system and
continuing to be implemented in the fields of UAV integration robot integration industrial temperature
monitoring security integration etc. continuously expanding the integration business.In the field of personal vision products the Company further expanded the width of its product
line in 2024 and released a series of competitive personal vision products such as the M2 telescope
that won the 2024 German Red Dot Design Award Sirius telescope ARC Pro telescope Taurus sight
etc. In the innovative design of these products the family-oriented design concept is deeply
integrated and on this basis there are bold breakthroughs and innovations. At the same time the
Company actively responded to the market demand for portability and lightweight design and through
a series of innovations successfully made its products smaller and lighter. This series of innovative
measures demonstrates Pixfra Technology's ultimate pursuit of products and brings consumers a
more exceptional experience.
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4.3.2.3 Industry focus
In 2024 Pixfra Technology focused on two major industry fields: emergency management and
big energy.
(1) Emergency management
In the field of emergency management especially in forest fire prevention we have carried out
comprehensive business focus and technology iteration and launched thermal imaging products that
are more suitable for emergency forest fire prevention application scenarios. The product has been
optimized and improved especially achieving important breakthroughs in the smoke false alarm
algorithm and fire hazard detection algorithm significantly improving the detection capability and
accuracy of forest fires. By optimizing the smoke false alarm algorithm the false alarm rate is
effectively reduced ensuring the accuracy of smoke detection of thermal imaging products under
complex background conditions such as strong light and shadows. At the same time the newly
upgraded fire hazard detection algorithm combines deep learning technology to more accurately
identify the source of fire. These technological advances enable the Company's thermal imaging
products to not only respond quickly but also provide reliable alerts in the early stages of a fire. In
addition the Company has deeply integrated thermal imaging products with high-precision maps and
back-end intelligent second verification and analysis systems to form a comprehensive forest fire
monitoring and disposal solution. High-precision maps provide accurate geographic information for
fire hazard analysis while intelligent second verification and analysis ensure the accuracy and
timeliness of the data enhancing the scientific nature and effectiveness of decision-making.With the application of these new technologies and capabilities the Company greatly improved
its emergency forest fire hazard detection capabilities in 2024 and was highly recognized by
customers and the industry. Through a series of innovations and applications the Company has not
only enhanced its competitiveness in the field of forest fire prevention but also made positive
contributions to ecological environmental protection and public safety.
(2) Big energy
The Company has further deepened its business focus on the big energy industry and continued
to increase its investment and R&D efforts in infrared thermal imaging products striving to maintain
its leading position in this key field. The Company recognizes that with the advancement of green
energy transformation and sustainable development goals the safe and stable operation of related
devices and infrastructure is becoming increasingly important. In the past year the Company has
continuously optimized infrared thermal imaging technology and launched a series of products with
higher sensitivity and reliability providing strong technical support for device monitoring and fault alert
in the power petrochemical steel coal and other industries. The Company's thermal imaging
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products can monitor device temperature distribution in real time promptly detect potential
overheating hazards significantly reduce device failures and downtime and help customers improve
operational efficiency and safety.In addition the Company actively collected user feedback in application scenarios used data to
drive technology iteration and launched a variety of targeted solutions through in-depth cooperation
with upstream and downstream of the industrial chain to meet the ever-changing needs of the big
energy industry. The Company's infrared thermal imaging products not only played an important role
in traditional energy monitoring but also showed broad application prospects in the detection and
maintenance of new energy devices.
4.3.3 Automotive electronics
Hirige a subsidiary of Dahua focuses on intelligent vehicle products and industry solutions. With
video as the core it has laid out the direction of intelligent driving combined with radar AI perception
data analysis and processing and other technologies and is committed to becoming an industry-
leading supplier and solution provider of intelligent automotive electronic products with video
technology as the core. At present the Company has obtained the IATF16949 quality management
system certification and its product development has successively obtained product process
certifications in the industry including IS026262 functional safety certification ISO/SAE 21434 road
vehicle cyber security process system certification and ASPICE automotive software process
improvement and capability L1 assessment. The product solutions comprehensively serve domestic
and foreign passenger vehicle and commercial vehicle customers as well as consumers and industry
users at all levels.
4.3.3.1 Passenger vehicle market
Passenger vehicle products are built around the two core capabilities of perception and
intelligence with four major product series: intelligent driving intelligent cockpit visual sensors and
millimeter-wave radar. Through full-domain self-research capabilities we can carry out multi-
dimensional cooperation with customers from products to solutions from deep customization to
technological empowerment and provide customers with all-around advanced solutions in the
automotive field.In the field of intelligent driving Hirige integrates cutting-edge intelligent driving technology
into the OEM market and launches and optimizes forward-looking assisted driving solutions: the
forward 8M solution has been developed and launched on the market; the flagship configuration is
the ultimate cost-effective L2+ driving solution 5R1V which can support unmapped highway NOA
support blind zones front/rear crossing detection and support C-NCAP 2024 five-star rating; the
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lightweight driving and parking integrated solution provides a more highly adapted version of
intelligent driving products for the advancement of automobile companies' intelligent systems which
can realize more complex and more reliable driving and parking integrated functions. Among them
the entry-level configuration and extremely cost-effective 1V solution has been successfully mass-
produced by LEAPMOTOR and at the same time it supports regulatory adaptability development in
overseas markets. After a year of special optimization the applicable scenarios have been greatly
expanded and recognized by many vehicle manufacturers.In the field of intelligent cockpits the Company has realized cockpit safety and interaction
systems and completed mass production of various types of in-cabin visual sensors. DMS and OMS
cameras all have functional safety ASIL B level; TOF cameras realize face recognition through deep
information image algorithm and have been mass-produced by leading automakers; the cockpit
safety system realizes driver fatigue detection distraction alarm and dangerous driving behavior
recognition and cooperates with LEAPMOTOR to successfully obtain the first EU-related regulations
ADDW DDAW certification and E-NCAP 2024 five-star level; the cockpit interaction system realizes
functions such as rear-seat residue detection gesture recognition emotion recognition and heart
rate monitoring helping customers create intelligent cockpits with different characteristics and
enhance the in-cabin driving experience.In the field of visual sensors the Company has achieved a comprehensive upgrade of its
camera products and has mass-produced a new generation of vehicle-mounted cameras that combine
front and rear shell integration technology laser welding technology and PCB board active centering
technology effectively reducing the production cost of vehicle-mounted cameras and improving product
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stability and consistency; at the same time it has further expanded the domestic leading OEMs
achieved multiple project targeting and mass production and increased market share; with the
expansion of product business the Company has invested heavily in the construction of manufacturing
plants added multiple SMT production lines and AA camera production lines and doubled the overall
production capacity.In the field of millimeter-wave radar the Company continued to increase investment to promote
technological progress and innovation. In terms of forward radar and blind zone radar the Company
released microstrip antenna radar products with better performance and previewed the next-generation
waveguide antenna radar products. The in-cabin vital signs radar has undergone product iterations in
two different directions: high performance and high cost-effectiveness achieving coverage of a wider
range of application scenarios. At the same time progress in the preliminary research of 4D radar has
been achieved laying the groundwork for the subsequent upgrade of higher-performance products.
4.3.3.2 Commercial vehicle market
Currently the stock of commercial vehicles in China exceeds 20 million units. However safety
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problems such as traffic accidents casualties and cargo damage have become increasingly prominent.After speeding and fatigue driving traffic accidents caused by blind zones have significantly increased.Front vehicle collision warning lane departure warning (LDW) fatigue driving warning driving behavior
analysis etc. have gradually become standard configurations for active safety advanced assisted
driving construction projects for commercial vehicles in various places. Based on the actual operating
environment of the vehicle Hirige conducted in-depth research in algorithms efficiency and other
aspects to further improve product performance and realized front/rear mounted intelligent vehicle
solutions through active safety assisted driving panoramic 360° surround view system 1R1V and
other product systems. At present these solutions have been widely used in freight logistics taxis
ride-hailing cars tour & scheduled buses dangerous goods transport vehicles public transportation
public security school buses sanitation trucks and other fields.In 2024 in the domestic market we focused on traditional mainstream industries such as public
transportation taxis ride-hailing cars public security and freight and completed the update and
iteration of solutions comprehensively enhanced market competitiveness and created benchmark
projects such as Hangzhou Public Transportation Postal Freight and Xiamen Heavy Truck. In the
overseas market while focusing on public transportation police vehicles school buses and the
freight industry we also focused on the freight industry entered major overseas markets with new
freight solutions to seek explosive points for business growth.In 2025 the commercial vehicle market will make full efforts to expand into key industries. In the
commercial vehicle OEM market we focused on launching new GB standards 1R1V European
standard R151 regulations and 360° surround view systems to further improve the
comprehensiveness of our business and achieve targeted breakthroughs for many leading OEMs; in
the tour & scheduled bus dangerous goods transport vehicles heavy trucks and freight markets we
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took the opportunity of the national single Beidou update law to fully cover the single Beidou
replacement business in 32 provinces and faster promote the coverage and application of the new
GB three-piece set (ministry-level device/ADAS/DSM); in the public transportation market we
completed the coverage of public transportation from provinces to cities across the country and
promoted the full implementation of the second-generation public transportation integration plan; in
the taxi and ride-hailing car market we completed the release of the entire system of products and
took the opportunity of the national ride-hailing car control regulations to increase the market share of
more provincial capitals.Hirige will always maintain its R&D investment in the commercial vehicle market continuously
improve its products and solutions help customers solve business problems improve customer
satisfaction and contribute to the development of the transportation industry.
4.3.4 Smart security inspection
Zhejiang Huajian Technology Co. Ltd. a subsidiary of Dahua is a technology company based
on core video technology artificial intelligence technology big data technology and IoT technology. It
is committed to becoming China's leading provider of full-domain digital security prevention solutions.The Company adheres to the mission of "giving the world more peace and making life more secure"
and focuses on the research and development of innovative solutions in the fields of security
inspection supermarket anti-theft and airspace prevention. With the rapid development of
technologies such as artificial intelligence big data and Internet of Things these technologies have
been deeply and innovatively integrated with the security check industry and global users are in need
of reliable convenient and advanced smart security check equipment and services making security
check intelligence usher in a new round of development opportunities. With IoT technology and AI
analysis technology as the core the Company promotes the reform and development of the security
check industry bringing new business opportunities and new vitality to the industry.
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4.3.4.1 Security screening machine
Regarding security screening machines Zhejiang Huajian uses its R&D technology as its
foothold in the industry and continuously and innovatively explores security screening products and
technical standards that represent the industry's top level including intelligent views material
identification and civil aviation standards. The Company officially obtained civil aviation certification
for five aircraft models in May 2024. This not only represents that the Company's security screening
device research and development level has received the highest recognition in China but also
indicates that the door to the civil aviation security market has been opened to us. In terms of imaging
the Company has independently developed a new generation of image algorithm engine "Qingkong
3.0". While ensuring the domestic production of components it has greatly improved the fineness and
layering of the imaging images of security screening machines and optimized the operating
environment of manual and machine image judgment. At the same time based on the advantages of
AI deep learning training the security screening machine can not only accurately identify organic
inorganic and mixed substances but also directly and effectively identify some types of toxic
explosive and high-risk prohibited items.
4.3.4.2 Security gate
Zhejiang Huajian has profound technical accumulation and project experience in the field of
security gate technology. During the self-research process it was found that high-precision magnetic
fields combined with AI deep learning can be used to accurately identify prohibited items such as
mobile phones and knives. This technology can perfectly fit the market trend of "large-scale initial
screening and common metal shielding in life". In 2024 the Company obtained the certification for
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Zhejiang Province's first integrated area array imaging millimeter wave security gate adding a
powerful tool to China's refined human body imaging detection field. In addition in the field of small
metal identification Zhejiang Huajian dared to introduce the acceptance criteria of half-a-paper-clip to
the market which was widely recognized by customers.Zhejiang Huajian focuses on the value and innovation of product solutions in actual application
scenarios and has launched products and solutions with strong industry attributes for industries such
as rail transit large-scale events justice hospitals education and logistics so that its products
continue to maintain high-level and multi-level competitiveness. In the future Zhejiang Huajian will
continue to implement the strategic policy of taking market demands as the guide and R&D as the
core productivity and move towards the high-end security screening market. The core components of
security screening rapid imaging millimeter wave CT-type security screening devices and civil
aviation security screening devices will be the main R&D investment directions in the future. The
Company shall make full use of its own technical advantages and characteristics to create a security
screening solution with unique features focusing on networking and intelligence as the main theme.
4.3.5 Smart fire control
Huaxiao Technology is an advanced provider of fire protection products solutions and
operational services. With IoT big data cloud computing video AI and other technologies as its core
it continues to be committed to providing advanced fire protection products solutions and operational
services for the entire industry for fire safety for individuals enterprises and government customers
around the world to achieve early warning early prevention and control and early disposal in the
fields of fire protection gas electricity etc. and improve the overall safety level of society.
4.3.5.1 Fire protection products
We deeply cultivated the domestic market and adhered to technological innovation as the driving
force for enterprise development. In 2024 the Company actively expanded into areas such as safe
electricity and gas detection while continuously consolidating its smart fire control business. At the
same time for the SMB market we launched the "Changlian" series of fire protection products
focusing on the effective management of fire safety in small scenarios; for the industrial field we
further developed explosion-proof intrinsic safety (IS) and other series of products to enhance the
overall competitiveness in professional segments; we launched the "Huaxiao Fangtong" product
series further improving the loading and application of integrated security and fire control video AI
and big data capabilities.Continuing to focus on the development of overseas business in 2024 the Company created an
integrated overseas security and fire control solution combining "product + software" forming a
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product system with household fire protection commercial fire protection AI-Fire safety and fire
protection cameras industrial special detectors and fire protection accessories as the core and
released C-end and B-end user software platforms. In 2024 the Company's overseas fire protection
product certifications were gradually completed and the Company's brand has also been recognized
by an increasing number of national markets and customers.
4.3.5.2 Solutions
Huaxiao Technology always adheres to the principle of starting from customers' pain points and
actual needs targeting fire protection business scenarios in various industries and fields and using
its integrated security and fire control core capabilities to achieve intelligent transformation and
upgrade applications of fire safety in various industries.Given the fire safety characteristics of civil and commercial buildings based on the original fire
protection system through the expansion of the LORA wireless alarm system the effective integration
of the smart fire control system and the security system the integrated visual and intelligent
management of the local and remote management platforms is realized. Aiming at traditional
industrial sectors such as energy chemical electric power and coal as well as pan-industrial sectors
such as tunnels pipeline corridors and rail transit we have developed intrinsically safe (IS)
explosion-proof multi-spectral and fire-fighting combined intelligent terminals to meet industry
requirements and create a two-level architecture overall solution for multi-factory group IoT remote
supervision and integrated security and fire control at the territorial level.In the field of urban lifeline gas safety business Huaxiao Technology provides a full-chain
prevention and control solution based on four major business scenarios: stations important pipelines
residential and industrial & commercial users and bottled gas traceability. A variety of IoT perception
devices are used to monitor data such as leaks pressure flow temperature position liquid level and
vibration in real time. The digital and intelligent gas IoT supervision platform combined with AI
visualization capabilities enables efficient management of IoT perception devices while modularly
integrating a series of supervision applications such as risk investigation and safety risk assessment.In response to the gradual advancement of smart fire control construction in cities across the
country Huaxiao Technology and strategic partners from various regions have jointly established an
urban fire protection operation service center. Using the Cloud Platform for Vision and Fire Control as
its capability base it provides users with one-stop fire protection comprehensive services such as fire
safety design construction alarm networking remote duty fire protection maintenance fire protection
training and fire insurance realizing the transformation from product sales to product services.
1222024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
4.3.6 Storage medium
Zhejiang Huayixin Technology Co. Ltd. a subsidiary of Dahua is an innovative technology
company that focuses on the research and development production and sales of storage mediums.Its product lines include SSDs storage cards USB drives PSSDs and memory. Its business focuses
on various application scenarios such as terminal consumption industrial control vehicle-mounted
monitoring and video monitoring.The Company continues to strengthen market promotion and marketing network construction
and has established a marketing network centered in Hangzhou that radiates to various countries and
regions at home and abroad covering all provinces in China. Its products are exported to more than
100 countries and regions around the world. At the same time it actively expands the industry market
and performs outstandingly in industries such as PC rail transit automotive industrial automation
security monitoring cloud storage cloud computing and healthcare.In 2024 the Company passed the ISO 9001 ISO 14001 and ISO 45001 system certifications
and was successfully recognized as a national high-tech enterprise. In the context of industrial
development and upgrading along with focusing on the Company's self-research strategic route
significant breakthroughs have been made in R&D and technological innovation for storage products
with heavyweight products launched across various product lines.
1232024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
SSD: In the field of video monitoring Huayixin launched a new generation of V800 series video
monitoring disks that use domestic controllers and domestic storage particles. The products support
DLBA have stable video writing performance meet 7*24 hours of recording without frame loss and
seamless cooperation with the underlying file system of storage products. Facing the automotive
market we launched the S820 series of automotive video monitoring SSDs a domestically produced
solution which is specially designed for automotive video monitoring scenarios and suitable for use in
scenarios with frequent vibrations abnormal power failures and very low temperature operating
environments in the automotive industry. Facing the industrial control market we launched products
of different specifications.Memory products: The E500 and E510 series memory products are launched in combination
with business usage scenarios forming an industry product layout for the fields of information
technology commercial use industrial control etc.; DDR5 high frequency and low-timing memory
products are launched for the general consumer market to meet the usage scenarios of different
users.USB drive: We have launched several mainstream USB 2.0/3.0 direct-plug USB drives and high-
speed dual-interface solid-state USB drives supporting a maximum capacity of 1TB meeting
consumers' multiple demands for different appearances high speeds and large capacities.Memory card: The original monitoring series SD/Micro SD storage card solution is upgraded to
support a wide operating temperature working environment and increase the capacity to 1TB. The
entire S100/H100 series is highly durable and meets the mainstream security monitoring and
automotive industry usage scenarios.PSSD: We launched the T70 and T80 series of PSSDs based on SATA and PCIe protocols
respectively with a maximum capacity of 2TB to meet the portable storage needs of different users.With the vision of "being a leader in secure storage" Huayixin is committed to creating Chinese
quality storage. As the storage cornerstone to promote the development of AloT it builds an industrial
1242024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
ecological chain with global partners embraces the intelligent upgrade of Chinese manufacturing
and grows together with technology industry and users.
4.4 Developing Green and Low-Carbon Businesses
The Company is anchored on the dual carbon goals practicing the mission of "making society
smarter and life better" using technology to support the construction of ecological civilization building
a safe low-carbon beautiful and harmonious society and actively implementing environmental
social and governance (ESG) initiatives. Based on the overall strategy of "digital and intelligent
empowerment low-carbon future shared ecology and compliance management" it combines
sustainable development with digital and intelligent empowerment to empower biodiversity protection
environmental protection intelligent traffic management smart energy smart buildings smart
education safe production and many other fields and help thousands of industries to achieve
sustainable green and high-quality development.
(1) The Company's enterprise smart park uses the national green building three-star standard
and the Company's AIoT solution to achieve real-time monitoring of the park's energy data and
automatic allocation of energy strategies around sources networks loads storage charging and
inspection so that the entire park's microgrid has adaptive capabilities. At the same time it tracks the
flow of each energy source and the footprint of carbon emissions realizes refined energy
management helps enterprises save energy and reduce emissions and implements the "dual
carbon" strategy.By building a rooftop photovoltaic system the building can generate its own green electricity for
the Company's own use and operate an intelligent generating capacity detection system to help the
device run safely and stably; build an intelligent microgrid in the park and realize flexible scheduling
of the park's energy consumption based on peak and valley electricity transformer capacity and
electricity demand forecasts; the intelligent air-conditioning hub covers the park automatically detects
the operating status of all air-conditioning device and can remotely turn on/off or set a unified
temperature. By using big data to analyze the energy usage habits of each space it can realize
adaptive environmental control of the air-conditioning and effectively reduce the power consumption
of the air-conditioning; use intelligent dimming lamps gradually adjust the brightness of the lights and
manage them intelligently and connect with the attendance elevator control and parking systems so
that each lamp can be lit as needed to achieve companion lighting; combined with peak and valley
loads through platform strategies new energy vehicles can be charged in an orderly manner
centralized fast charging can be avoided and the pressure on the power grid can be relieved;
intelligent circuit breakers cover detection around the clock automatically warn of safety hazards
such as electric leakage overload and overvoltage respond with one click and trace them in time
1252024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
track energy trends in real time further standardize energy waste and achieve refined energy saving
in buildings.
(2) The Company focuses on continuously developing scientific and technological applications in
the water conservancy industry. Centering on the development needs of the national water network
and water conservancy digital twin construction the Company comprehensively enhances its core
competitiveness in technologies such as artificial intelligence 5G and IoT. Based on its in-depth
understanding of water conservancy business scenarios and long-term technology accumulation and
practice the Company creates a mature and complete smart water conservancy visualization
supervision solution providing systematic capabilities such as intelligent perception smart
recognition and intelligent alert for multiple business scenarios such as hydrological forecasting river
and lake inspections sand mining supervision and water source protection thereby fully enabling
user business applications.In terms of rivers and lakes we used the full-process intelligent system of smart rivers and lakes
to achieve efficient management of rivers and lakes and take practical actions to help protect the
Yangtze River and improve the efficiency of water area management. In terms of reservoirs we
created application solutions for water conservancy project safety and operation supervision dam
safety monitoring etc. through ecological cooperation to improve the level of refined management of
water conservancy projects. In terms of water environment protection we launched a hyperspectral
water quality analyzer to quickly realize automated monitoring and alert of various water quality
parameters such as water turbidity and pH value to timely grasp the situation of water quality
changes and make water quality monitoring more efficient.The Company continues to explore new paths for "digital and intelligent water management"
accelerates the deep integration of digital and intelligent technology and diversified water
conservancy scenarios and enables application scenarios such as flood and drought prevention
intensive and efficient use of water resources optimal allocation of water resources and ecological
protection and management of major rivers lakes etc.
(3) In the field of forest protection technology the Company closely aligns with the grand
blueprint of China's ecological civilization construction and the urgent need for digital management of
forest resources protects forest resources through technological innovation and contributes to the
global "dual carbon" goals. In terms of fire alert we have innovatively launched an intelligent server
for secondary analysis of fire hazards which can intelligently filter common sources of false alarms
such as fog reflections construction machinery and industrial heat sources to create a three-
dimensional forest fire detection and warning system to make information more accurate and
handling more efficient. In terms of animal and plant protection we have optimized the smart
1262024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
recognition algorithm to achieve identification and analysis of nearly a thousand species of protected
animals helping to protect wild animals and plants. In the field of pest and disease detection we
have achieved intelligent detection of small targets such as pest-infested plants and diseased trees
accurately predicted the occurrence trends of pests and diseases scientifically guided prevention and
control work and effectively reduced their threats to forest resources. Through continuously
innovative smart forestry solutions we drive the deep integration of information technology and forest
protection work contributing indispensable wisdom and strength to the sustainable management of
forest resources the solid construction of ecological security barriers and the comprehensive
advancement of ecological civilization construction.
(4) The Company through the power of science and technology continues to explore digital
ecological protection models and actively protects biodiversity. In the extremely cold region of
Antarctica the Company donated intelligence device systems to multiple scientific bases to assist in
the research of fauna and meteorology and to protect Antarctic penguins. In wetland environments
the Company actively explores the integration of technology and wetland protection assisting in bird
monitoring and protection in many wetlands across China. In Hainan Yunnan and other places the
Company assisted local departments in continuously training algorithms through the Ginn platform to
help with the research and protection of populations such as gibbons and green peacocks. These
measures not only help protect biodiversity but also make positive contributions to ecological
protection and sustainable development.III. Core Competitiveness Analysis
As the Company's services for cities and enterprises' digital and intelligent transformation
continue to deepen the "diversity and fragmentation" characteristics of the AIoT industry are
becoming increasingly prominent. The Company meets these challenges with its diversified
application technology capabilities continues to broaden its product breadth strengthen its marketing
model focus on business penetration and launch a "combination punch" for business development.It conducts self-iteration and optimization in multiple dimensions of the entire chain including R&D
marketing supply chain and delivery services thereby building unique competitiveness in the face of
a diverse and fragmented AIoT market and working with partners to achieve sustainable and high-
quality development.
1. Adhere to the "Five Fulls" as the core of R&D and innovation investment deepening
customer demand orientation
With the advancement of digitalization and intelligence technological evolution industry needs
and business models are undergoing continuous changes. The Company has a deep understanding
1272024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
of the development trend firmly adheres to the two major technical strategies of AIoT and intelligent
IoT data platform consolidates the "five full" capabilities foundation strengthens multi-dimensional
perception capabilities and provides more comprehensive perception services for various industry
segmentation scenarios; with visual analysis as the core improves the "1+2" artificial intelligence
capability system and accelerates the implementation and promotion of the Dahua industry large
model and implements trials in public security transportation urban governance electricity mining
and other industries; builds a security assurance framework of "full process control + full product
coverage" to make products safer and customers more at ease; provides cloud products that are
cloud-native fully open and cover all scenarios in the entire domain and shares creates and wins
with partners. In the future the Company will continue to strengthen business model innovation build
a preferred brand of AIoT and work with partners to create new business formats in the digital era.
2. Continue to optimize the global marketing and service system layout and increase
customer coverage
The Company has a global marketing and service network. By the end of 2024 the Company
had 32 provincial and regional offices in China. The Company has increased its investment in client
coverage at the marketing end continued to deepen its efforts in small and medium-sized enterprise
business at lower-tier administrative levels built a win-win ecosystem and continuously deepened its
industry customer coverage. Customers in blind spots are constantly being explored. It is focusing on
constructing multi-dimensional ecological partners building a comprehensive altruistic service
platform and assisting partners in continuous innovation and development.The Company has an extensive and in-depth distribution network overseas which has laid a
solid foundation for the stable growth of its basic business. Its brand influence continues to expand.At the same time relying on the Company’s strong technical strength localized sales network global
logistics and after-sales service system it continues to deepen business opportunities strengthen the
adaptation of solutions to the local market and gradually increase the proportion of solutions in
overseas market revenue. The Company has further expanded into the international market by
continuously cultivating an international business development and management team and
continuously improving local business development and organizational operation capabilities.
3. Deepen intelligent manufacturing and build a customer-oriented digital supply chain
system
The Company is committed to building an efficient intelligent flexible and reliable supply chain
system for the global market. In addition to the Hangzhou headquarters smart (IoT) industrial park
and Changsha Central Manufacturing Center the Company has established manufacturing supply
centers and HUB warehouses overseas to form a global multi-level supply network and continues to
1282024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
promote the construction of an integrated upstream and downstream supply ecosystem to enhance
its global supply capabilities.On the basis of product standardization operation standardization and lean management we
continue to promote high-quality intelligent manufacturing and intelligent logistics construction. We
apply leading machine vision automation digitalization AIoT and other technologies to achieve
automated assembly unmanned testing and visualized supervision of key processes in core product
lines. We apply various robots and logistics devices to improve the level of automation in material
warehousing material distribution production handling finished product warehousing and outbound
logistics. At the same time we enhance the depth and breadth of human-machine-system
interconnection based on business scenarios and more efficiently collaborate with suppliers at all
levels to continuously meet customer needs through the digitization of product data flow
manufacturing control flow and order delivery flow information thus practicing the "customer-centric"
concept.In response to the diverse needs of customer orders we continue to deepen the construction of
digital supply chain capabilities and through visual fool-proofing in the manufacturing process
optimized logistics resource distribution effective supplier management delivery capability planning
and efficient internal collaboration we can fulfill delivery commitments on time and reliably to meet
customer needs.
4. Improve delivery and service capabilities and deliver great client experience
The Company always adheres to the core value of "achieving customers" and is committed to
building a world-leading efficient and professional delivery platform to provide the ultimate delivery
and service experience. To this end the Company continues to improve its delivery and service
system aimed at the whole market and all businesses including project delivery technical support
operation and maintenance management and training certification. At the same time the three-level
service network consisting of Hangzhou Global Delivery & Service Center domestic and overseas
branches and subsidiaries and authorized service centers combined with digital and intelligent
delivery service tools provides customers with precise and intelligent services and solutions. The
Company's service network covers more than 180 countries with 9 spare parts distribution centers
and 173 spare parts stations (46 spare parts stations in China) more than 2000 delivery and service
personnel and more than 1000 service partners fully ensuring the response speed and delivery
efficiency of the delivery and service business.With the continuous development of the AIoT industry the complexity of delivery is increasing.To meet the growing demand for software and personalized customization the Company has
established software capability centers in major provinces and regions in China and has formed
1292024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
cooperative relationships with more than 200 software ecosystem partners to respond to customer
needs flexibly and quickly. This strategy not only improves delivery efficiency but also enhances the
Company's service competitiveness thereby further enhancing customer satisfaction.
5. Adhere to the Full Ecosystem Strategy and Build the Smart IoT Ecosystem Community
featuring Co-construction Win-win Outcome and Symbiosis
Ecological development is one of the Company's most important strategic initiatives. The
Company has always been committed to building a cooperative and win-win ecosystem to co-create
value with partners. The Company's purpose is to achieve customer success adhering to the "full
ecosystem" concept anchoring on serving customer value realization building comprehensive open
capabilities from technology business to services and being fully open to industry customers and
developers through hardware software algorithms services and business ecosystems. We work
with ecological partners to open up new areas create new momentum and jointly create unlimited
possibilities for industrial development empower the digital and intelligent development of thousands
of industries and achieve co-creation symbiosis and win-win results.The Company provides convenience for partners by opening up device hardware capabilities and
third-party platform access capabilities enabling the rapid implementation of new intelligent scenarios;
relying on the intelligent IoT data platform base it achieves solution co-construction product co-
creation and capability sharing with ecological customers and helps the industry's digital intelligence
upgrade; it continues to upgrade the Ginn Open Platform providing developers with online full-link
capabilities for algorithm development and improving the development efficiency of large model
businesses; for service partners and business partners the Company adheres to the business
philosophy of "leaving convenience to partners and leaving complexity to ourselves" and optimizes
the corresponding marketing policies resource support and organization based on this philosophy to
build a benign shared and win-win ecosystem.
6. Establish a compliance management system that complies with international standards
to effectively ensure compliance operations and steady development
Adhering to integrity in business operations upholding commercial ethics and complying with
the laws and regulations of the countries where the business operates are the core concepts that the
Company has always advocated and practiced. In the context of global business operations the
Company attaches great importance to compliance in business development and operational
processes and continuously enhances its risk governance level. In 2024 the Company was awarded
the ISO37301 compliance management system certificate issued by the British Standards Institution
(BSI). This honor is not only a certification of the scientificity and effectiveness of the Company’s
compliance management system but also indicates that the Company’s systematic compliance
1302024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
management capabilities have been comprehensively improved. On this basis the Company will
continue to deepen its risk prevention and control and governance work in various compliance areas
such as cyber security and data protection export controls and economic sanctions anti-bribery and
anti-corruption science and technology ethics anti-monopoly and anti-money laundering to ensure
that the goals and focus of compliance work are in resonance with the risks and challenges brought
to the Company by changes in the internal and external environment and to effectively play the value
of the compliance management system in safeguarding the steady development of the business.As the globalization of its business continues to deepen the Company has always maintained a
prudent business strategy continued to consolidate the compliance risk management mechanism of
"one country one policy" improved the Company's risk control capabilities in various compliance
areas and the compliance management organization and operation mechanism of domestic and
overseas branches. Through the solid operation and implementation of "compliance starts from the
top compliance is embedded in the process compliance covers all employees compliance system is
standardized compliance management is IT-based and continuous optimization and improvement"
it effectively prevents major compliance risks and safeguards the Company's interests and good
reputation.
7. Adhere to the principle of "achieving customers achieving strivers" and create a
platform for common development
The Company always adheres to the core value of "achieving customers achieving strivers"
prioritizes customer achievement guides everything based on customer needs and aims to create
customer value. It continuously supports customers in achieving long-term success and realizes co-
creation co-existence and win-win outcomes with customers! At the same time the Company is also
a platform for realizing dreams and joint development allowing all those who are willing to
continuously strive and contribute on the platform to receive their deserved development and rewards
obtain both material and spiritual bounties and achieve co-construction sharing and common
development with those who strive!
IV. Main Business Analysis
1. Overview
The Company is a global leading AIoT solution provider and operation service provider. Focusing
on the digital intelligent innovation and transformation of cities and enterprises it continuously
promotes urban business from improving urban management to efficient urban governance ensuring
orderly operation to urban operation autonomy enhancing public safety to security system upgrades
1312024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
and ecological environment monitoring to ecological collaborative governance. The enterprise
business is from optimizing the security system to building a large security system improving
production efficiency to building digital intelligence productivity assisting business management to
improving business decision-making. It is committed to making society smarter and life better.During the reporting period under the influence of many factors at home and abroad the
Company still adhered to the business philosophy of refined management and high-quality
development achieving operating revenue of 32.181 billion yuan a decrease of 0.12% compared to
the same period last year; realizing a net profit of 2.347 billion yuan attributable to the shareholders of
the listed company after deducting non-recurring gains or losses a decrease of 20.74% compared to
the same period last year. Main business strategies of the Company include:
1. Promote stability through progress and deepen high-quality development
The Company adheres to high-quality development promotes growth ecology and human
efficiency and emphasizes customer first and pursues commercial success and customer
development; sustains ecological development builds a new ecosystem of co-construction
coexistence and win-win situation and endeavors to create unique and differentiated value for its
partners and achieve common growth; improves the management efficiency the human efficiency
and the organization effectiveness; adheres to balanced business development and lays a solid
foundation for sustainable high-quality development to meet customers’ needs better. The Company
actively assumes greater social responsibility in ESG low-carbon rural revitalization social poverty
alleviation and relief and technology for equality and good and fulfills the mission of "enabling a
smarter living and a safer society".
2. Delve into the core business of enterprises and assist in the digital and intelligent
transformation of enterprises
The Company continues to deepen its presence in the business field of enterprise digital and
intelligent transformation. In the process of helping enterprise customers with their digital and
intelligent transformation the Company has gradually integrated from peripheral systems into the
core business systems of production continuously improving hardware richness and AI capabilities
and continuously enhancing the application depth of multi-dimensional perception products and
industry algorithm models in enterprise scenario-based business realizing scenario-based services
such as production safety online device detection and operation and maintenance status helping to
ensure production safety in the energy industry as well as improving quality reducing costs and
increasing efficiency in the field of intelligent manufacturing.
3. Keep precision investment in research and development and deepen "five full"
capabilities
1322024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company adheres to the core of technological innovation maintains large-scale investment
in research and development and deepens the "five full" capabilities. In 2024 the Company invested
4.213 billion yuan in R&D registering a year-on-year increase of 6.20% and accounting for 13.09%
of the operating revenue. In addition to maintaining investment in traditional video technology the
Company continued to strengthen research development and productization in technical fields such
as multi-dimensional perception large models in AI data intelligence intelligent computing cloud
computing software platforms network communications network security and innovative businesses
to deepen the "five full" capabilities focus on value business scenarios and build leading solutions
products and technology systems in the industry.
4. Build full-stack capabilities for large models and promote AI industrialization
The Company is guided by scenario-based applications focuses on core technology research
insists on scientific and technological innovation actively explores and promotes breakthroughs and
applications of new technologies such as large models and multimodal AI continuously consolidates
the foundation of AI engineering builds full-stack capabilities of large models and continuously
promotes the industrialization and commercial success of AI. At the same time we deeply explore the
connotation of view data release the value of data promote the comprehensive upgrade of human-
computer interaction and fully assist the digital intelligence upgrade of cities and enterprises so as to
achieve the closed loop from perceptual intelligence to data intelligence and then to business
intelligence creating business value for customers with "full intelligence" capabilities.
5. Improve software management capabilities and deepening the data industry chain
The Company has always been committed to promoting the value-added process of data
elements. It positions itself as a provider of data as a resource practitioner of data as an asset and
enabler of data as a commodity. It uses technology + ecology as a dual-wheel drive to form solutions
covering the entire lifecycle of data and works with ecological partners to help build a prosperous
data element market. Starting from the dimensions of multi-dimensional perception multi-connection
view intelligence and open platform the newly upgraded intelligent IoT data platform 2.0 deeply
integrates the Dahua large model and graph-digit fusion capabilities and builds efficient software
engineering capabilities. It releases two major industry product systems Urban Tianji and Enterprise
Tianyan to comprehensively assist efficient urban governance and enterprise digital intelligence
upgrades. The Company has completed the 3.0 architecture upgrade for its public cloud business
building a full cloud product system based on a cloud low-code development middle platform
oriented towards channels industries and ecosystems. It provides customers with rich SaaS
applications including DoLynk Enterprise Dahua CloudLink DoLynk and other public cloud products
1332024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
offering enterprises a brand-new operation mode upgrading from manual to "data + intelligence" and
empowering enterprises to transform their digital and intelligent management.
6. Promote the development of innovative businesses and expand new high-potential
growth points
In the innovative business the Company based on its in-depth understanding of customers'
diversified needs and years of experience in AIoT continues to explore emerging businesses
including: machine vision and mobile robots thermal imaging automotive electronics smart security
inspection smart fire control and storage medium continuously expanding new high-potential growth
points for the Company.
7. Hand in hand with partners to grow together and create a ecological environment of co-
construction symbiosis and win-win situation
Facing the unprecedented opportunities of digital economy development the Company will
continue to explore and practice with ecological partners and strive to build a comprehensive
altruistic service platform integrating technology products solutions operations services and
management consulting services to help partners keep innovating and developing. Domestically we
continued to push our business downward to lower-tier cities deepen local operations and build a
new ecosystem for lower-tier markets. Overseas we carried out customer delamination and grading
in our distribution business make precise investments and marketing and strengthen brand
coverage. As an integrator we will focus on key markets and key customers and strengthen the
support system for lower-tier markets. The Company and its partners will in line with the concept of
"Employee+Partner" continue to implement the integration and development of "New Opportunity
New Idea New Order New Mode New Management New Goal New Responsibility" adhere to the
altruistic thinking strengthen the ecology and comprehensively support the development of high-
quality business.
2. Income and Costs
(1) Composition of operating revenue
Unit: RMB
2024 2023 Year-on-
year
Proportion in Proportion in increase
Amount Operating Amount Operating or
Revenue Revenue decrease
32218317636.7
Total Revenue 32180931827.17 100.00% 100.00% -0.12%
7
By Industry
Smart IoT Industry 32180931827.17 100.00% 32218317636.7 100.00% -0.12%
1342024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
7
By Product
Smart IoT Products 26644648182.1
25775422871.1480.09%82.70%-3.26%
and Solutions 8
Including: Software
1685487112.565.24%1797226644.005.58%-6.22%
Business
Innovative Business
5566291857.3917.30%4906653657.9815.23%13.44%
(Note)
Others 839217098.64 2.61% 667015796.61 2.07% 25.82%
By region
16891274970.9
Domestic 15886994088.01 49.37% 52.43% -5.95%
9
15327042665.7
Overseas 16293937739.16 50.63% 47.57% 6.31%
8
Domestic Sub-business Segment
Unit: RMB
20242023
Proportion Proportion in Year-on-year
in Domestic Domestic increase or
Amount Amount
Operating Operating decrease
Revenue Revenue
To G 4057234809.51 25.54% 4333197296.68 25.65% -6.37%
To B 8710034420.06 54.82% 9087212028.79 53.80% -4.15%
Others 3119724858.44 19.64% 3470865645.52 20.55% -10.12%
Total 15886994088.01 100.00% 16891274970.99 100.00% -5.95%
Note: Innovative business mainly includes machine vision and mobile robots smart living thermal imaging
automotive electronics smart security inspection smart fire control and storage medium and other relevant
businesses; the same as below.
(2) Industry product or region accounting for more than 10% of the Company's operating revenue or profit
□Applicable □ Not applicable
Unit: RMB
Increase or
Increase or
decrease
decrease of Increase and
of gross
operating decrease of
profit
Operating Gross revenue operating cost
Operating Cost compared
income margin compared with over the same
with the
the same period of last
same
period of last year
period of
year
last year
By Industry
Smart IoT 32180931827.
19681686604.5138.84%-0.12%4.67%-2.80%
Industry 17
By Product
Smart IoT
25775422871.
Products and 15187851740.07 41.08% -3.26% 1.06% -2.51%
14
Solutions
Including: 1685487112.5
590089111.3064.99%-6.22%-0.88%-1.88%
Software 6
1352024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Business
Innovative 5566291857.3
3765335736.5232.35%13.44%18.01%-2.62%
Businesses 9
By region
15886994088.
Domestic 10584111985.06 33.38% -5.95% 0.51% -4.28%
01
16293937739.
Overseas 9097574619.45 44.17% 6.31% 9.96% -1.85%
16
Domestic
Sub-business
Segment
4057234809.5
To G 2426040798.49 40.20% -6.37% 2.10% -4.96%
8710034420.0
To B 5587127753.92 35.85% -4.15% 2.24% -4.01%
6
3119724858.4
Others 2570943432.65 17.59% -10.12% -4.40% -4.93%
4
When the statistical caliber of the company's main business data is adjusted in the reporting period the company's
main business data should be subject to the one after the statistical caliber at the end of the reporting period is
adjusted in the most recent year.□ Applicable □Not applicable
(3) Is the company's physical sales income greater than the labor income
□Yes □No
Year-on-year
Industry
Item Unit 2024 2023 increase or
Classification
decrease
Sales volume Unit/set 89318564 82494035 8.27%
Smart IoT Production
Unit/set 91286526 79919254 14.22%
Industry output
Inventory Level Unit/set 11908069 10493991 13.48%
Reasons for over 30% changes in related data on year-on-year basis
□ Applicable □Not applicable
(4) Performance of major sales contracts and major procurement contracts signed by the Company as of the
report period
□ Applicable □Not applicable
(5) Operating Cost Structure
Industry and Product Classification
Unit: RMB
20242023
Year-on-year
Industry Proportion Proportio
Item increase or
Classification to n to Amount Amount
Operating Operating decrease
Cost Cost
Smart IoT Operating 19681686604.5 100.00% 18804021731.30 100.00% 4.67%
1362024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Industry Cost 1
Unit: RMB
20242023
Proportion Proportion Year-on-year Product
Item increase or
Classification to to Amount Amount
Operating Operating decrease
Cost Cost
Smart IoT
Operating 15187851740.0 15028931547.Products and 77.17% 79.92% 1.06%
Cost 7 27
Solutions
Including:
Operating
Software 590089111.30 3.00% 595339657.86 3.17% -0.88%
Cost
Business
Innovative Operating 3190755235.4
3765335736.5219.13%16.97%18.01%
Businesses Cost 4
Operating
Others 728499127.92 3.70% 584334948.59 3.11% 24.67%
Cost
(6) Has the scope of consolidation changed during the reporting period
□Yes □No
(1) In the current period the Company founded a total of 14 domestic and overseas subsidiaries through investment
establishment and other means including Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co. Ltd.Shandong Dahua Digital Intelligence Technology Co. Ltd. Fujian Dahua Qingchuang Digital Technology Co. Ltd.Jilin Dahua Zhilian Technology Co. Ltd. Zhengzhou Airport Economy Zone Huaao Technology Co. Ltd. Hainan
Dahua Huizhi Technology Co. Ltd. PT IMOU TEKNOLOGI INDONESIA PT IMOU INDONESIA SENANTIASA
Hirige Technology Malaysia Sdn. Bhd. Dahua Technology Egypt LLC DAHUA TECHNOLOGY AUH FOR
SECURITY & SURVEILLANCE - SOLE PROPRIETORSHIP L.L.C. DaHua Ideal Tech and the enterprises it controls.The above subsidiaries were included in the scope of consolidation in the current period.
(2) Dahua Technology USA Inc. a subsidiary of the Company was transferred during the current period and is no
longer included in the consolidation scope from the date of transfer.
(3) The Company's subsidiaries Yunnan Zhili Technology Co. Ltd. and Wuhu Huajian Technology Co. Ltd. were
written off in the current period and they will be no longer included in the scope of consolidation as of the date of
write-off.
(7) Major changes or adjustments to the company's business products or services during the reporting
period
□ Applicable □Not applicable
(8) Major Clients and Suppliers
The Company's Major Clients
Total sales amount of the top five customers 3754506222.76
Proportion of the total sales amount of the top five
11.66%
customers to the total annual sales
1372024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Proportion of the total sales amount of the related parties
3.95%
in the top five customers to the total annual sales
Profiles of the Company's top five customers
Proportion to the annual
No. Name of customer Sales amount (yuan)
sales
1 Company 1 (related party) 1272280696.42 3.95%
2 Company 2 1074520175.03 3.34%
3 Company 3 519548285.20 1.61%
4 Company 4 477445681.19 1.48%
5 Company 5 410711384.92 1.28%
Total -- 3754506222.76 11.66%
Other Information Notes for Major Clients
□ Applicable □Not applicable
Major suppliers
Total Purchase Amount of Top Five Suppliers (yuan) 3452199971.05
Proportion of the total purchase amount of top five
16.87%
suppliers to the total annual purchase amount
Proportion of the total purchase amount of the related
parties in top five suppliers to the total annual purchase 0.00%
amount
Profiles of the Company's top five suppliers
Proportion to the total
No. Supplier Name Purchase amount (yuan)
annual purchase amount
1 Company 1 1252392104.10 6.12%
2 Company 2 686420981.77 3.35%
3 Company 3 598241391.99 2.92%
4 Company 4 477902532.13 2.34%
5 Company 5 437242961.06 2.14%
Total -- 3452199971.05 16.87%
Other Information Notes for Major Suppliers
□ Applicable □Not applicable
3. Expenses
Unit: RMB
Year-on-year Statement on
20242023
increase or decrease Significant Changes
Sales Expenses 5166733337.95 5163519417.85 0.06%
Administration
1141408186.631257429514.27-9.23%
expenses
Financial expenses -389890980.61 -409307989.62 4.74%
Research and
development 4213255565.73 3967248795.22 6.20%
expense
1382024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
4. R&D Investment
□Applicable □ Not applicable
R&D personnel of the Company
2024 2023 Change Ratio
Number of R&D personnel 12689 12372 2.56%
Percentage of R&D personnel 53.11% 52.80% 0.31%
Education background of R&D personnel
Bachelor 8196 8214 -0.22%
master 3436 3056 12.43%
Age of R&D personnel
Under 30 6205 6537 -5.08%
30-40572952539.06%
Company's R&D investment
2024 2023 Change Ratio
R&D investment (yuan) 4213255565.73 3967248795.22 6.20%
The proportion of R&D investment
13.09%12.31%0.78%
to operating income
Capitalized R&D investment 0.00 0.00 0.00%
Proportion of capitalized R&D
0.00%0.00%0.00%
investment to R&D investment
Causes and effects of significant changes in the composition of R&D personnel
□ Applicable □Not applicable
The reason for the significant change in the proportion of the total amount of R&D investment to operating income
compared with last year
□ Applicable □Not applicable
Reasons and rational explanations on the substantial change in capitalization rate of R&D investment
□ Applicable □Not applicable
5. Cash Flow
Unit: RMB
Year-on-year
Item 2024 2023 increase or
decrease
Subtotal of cash inflow from
37318848649.2237198634257.760.32%
operational activities
Subtotal of cash outflow from
34608611039.9232599855603.296.16%
operational activities
Net cash flow generated by
2710237609.304598778654.47-41.07%
operating activities
Subtotal of cash inflow from
15607688895.584824255692.30223.53%
investment activities
Subtotal of cash outflows from
20439774518.313098033765.83559.77%
investment activities
1392024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Net amount of cash flow
generated by investment -4832085622.73 1726221926.47 -379.92%
activities
Subtotal of cash inflow from
2365429558.198465159516.11-72.06%
financing activities
Subtotal of cash outflow from
5168848978.076812296481.85-24.12%
financing activities
Net cash flow generated by
-2803419419.881652863034.26-269.61%
financing activities
Net Increase in Cash and
-4819128778.678002194542.32-160.22%
Cash Equivalents
Description of the main factors affecting the significant changes in related data over the same period of last year
□Applicable □ Not applicable
1. Net cash flow from operating activities decreased by 41.07% compared to the same period last year mainly due to
the increase in purchasing expenditures cash paid to employees and taxes paid compared to the same period last
year.
2. The net cash flow from investment activities decreased by 379.92% compared with the same period last year
mainly due to the purchase of large-denomination certificates of deposit in this period and the large amount of cash
received from the equity transfer in the previous period.
3. Net cash flow from financing activities decreased by 269.61% compared to the same period last year mainly due to
the receipt of raised funds in the same period last year.Reasons for the significant difference between the net cash flow generated by the company's operating activities in the
reporting period and the net profit in the current year
□ Applicable □Not applicable
V. Non-Main Business Analysis
□ Applicable □Not applicable
VI. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
End of 2024 Early 2024 Proporti
on
Proporti Proporti increas Statement on
on To on To
Amount Amount e and Significant Changes
Total Total decrea
Assets Assets se
Mainly due to the large-
denomination
certificates of deposit
Cash and Bank 11181803423.8 15971005114.4
21.20% 30.20% -9.00% purchased from banks
Balances 3 7
in the current period
and the repayment of
debts
17046094518.716276803954.0
Accounts 32.32% 30.78% 1.54% No major changes.
93
1402024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
receivable
Contract Assets 87397517.09 0.17% 86714216.34 0.16% 0.01% No major changes.Inventory 5203560771.25 9.87% 5332608544.02 10.08% -0.21% No major changes.Investment
139280586.26 0.26% 129637004.00 0.25% 0.01% No major changes.
Property
Long-term
Equity 722241568.57 1.37% 727453629.75 1.38% -0.01% No major changes.Investment
Fixed Assets 4973953628.05 9.43% 4937180876.88 9.34% 0.09% No major changes.Projects under
1254554187.36 2.38% 1008612408.49 1.91% 0.47% No major changes.
Construction
Right-of-use
232124277.86 0.44% 299202586.56 0.57% -0.13% No major changes.
assets
Short-term loan 995000000.00 1.89% 957426330.18 1.81% 0.08% No major changes.Contract
1282204348.75 2.43% 1194534307.04 2.26% 0.17% No major changes.
liabilities
Lease liabilities 114313807.41 0.22% 176580049.57 0.33% -0.11% No major changes.Mainly due to the large-
Other Non- denomination
4327776909.068.21%210809264.490.40%7.81%
Current assets certificates of deposit
purchased from banks
The proportion of overseas assets is relatively high
□ Applicable □Not applicable
2. Assets and liabilities measured at fair value
□Applicable □ Not applicable
Unit: RMB
Changes
in fair
At the Cumulativ Impairmen Purchase Sales
value At the end
beginning e fair t loss of amount of amount of
gains and Other of the
Item of the value the the the
losses in variations reporting
reporting changes reporting reporting reporting
the period
period in equity period period period
current
period
Financial Assets
1. Trading
financial
assets -
1008028915996842697862299275
(derivative 2062541
13.956.1000.0029.28
financial 98.57
assets
excluded)
2. Other
Non- -
153574216403352470000.4830000.1274697
current 4227183
385.7103.880000490.87
Financial 98.72
Assets
3.810713231101998418152
1412024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Receivabl 67.86 9.57 67.43
es
financing
-
1470000.
4. Other 1470000.
00
00
Financial -
23479251032728964296833892202346440
assets 4222069
653.5713.956.100.85287.58
subtotal 4.69
Total of -
23479251032728964296833892202346440
above 4222069
653.5713.956.100.85287.58
items 4.69
Financial 1194709. 3012493. 4268603.
61400.12
liabilities 59 81 52
Are there any significant changes in the measurement attributes of the company's main assets during the reporting
period
□ Yes □No
3. Restrictions on asset rights as of the end of the reporting period
As of December 31 2024 restricted assets of the Company are as follows:
Book Value at the End of the Perion Item Cause of restrictions (RMB)
Guarantee letter security deposit and
Cash and Bank Balances 107576703.27
other restricted funds
Pledge used to issue bank
Notes receivable and receivables
987102426.21 acceptance bills and endorsed or
financing
discounted notes not derecognised
Fixed assets rented out under
Fixed Assets 787890801.32
operating leases
Total 1882569930.80
VII. Investment Analysis
1. Overview
□Applicable □ Not applicable
Investment in the Reporting Period Investment for the same Period of
Rate of Change
(RMB) Last Year
210210937.443337590020.22-93.70%
2. Significant equity investments acquired during the reporting period
□ Applicable □Not applicable
3. Major non-equity investments underway during the reporting period
□Applicable □ Not applicable
For details refer to “5. Utilization of raised funds”
1422024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
4. Financial assets investment
(1). Securities investment
□Applicable □ Not applicable
Unit: RMB
Chan
ges
in fair Cum Purch Profit
Acco Sales
value ulativ ase s and Book
untin Open amou
Abbr gains e fair amou Loss Value Acco
Variet Code Initial g ing nt of Capit
eviati and value nt of es in at the untin
y of of Inves Meas Balan the al
on of losse chan the the End g
Secur Secur tment urem ce on report Sourc
Secur s in ges report Repo of the Acco
ities ities Cost ent Book ing e
ities the in ing rting Perio unts
Mode Value perio
curre equit perio Perio d
l d
nt y d d
perio
d
Tradi
Fair
Dom - ng
SMA 1033 value 4269 2080 9159 1092 1497 Equit
estic 6882 2064 Finan
RTS 1700 meas 7860 2813 9686 2270 2656 y
Stock 13 5515 cial
ENS 0.00 urem 0.00 .95 .10 6.41 9.64 Fund
s 8.21 Asset
ent
s
-
103342692080915910921497
2064
Total 1700 -- 7860 2813 9686 2270 2656 -- --
5515
0.000.00.95.106.419.64
8.21
(2). Derivatives investment
□Applicable □ Not applicable
1) Derivatives investments for hedging purposes during the reporting period
□Applicable □ Not applicable
Unit: ten thousand RMB
Proportion
of
Changes
investmen
in fair
Types of Cumulativ Amount Amount t amount
value
derivative Initial e fair purchased sold in the
Opening gains and Closing
s investmen value during the during the company’
balance losses in balance
investmen t amount changes reporting reporting s net
the
t in equity period period assets at
current
end of the
period
reporting
period
Foreign
961678.3976916.6
exchange 29838.25 -99.66 14600.00 0.41%
72
contract
1432024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
961678.3976916.6
Total 29838.25 -99.66 14600.00 0.41%
72
The Company calculated and presented its foreign exchange derivatives trading
business in accordance with Accounting Standards for Business Enterprises No.
22 - Recognition and Measurement of Financial Instruments Accounting
Explanation of whether the Standards for Business Enterprises No. 37 - Presentation of Financial
Company’s hedging business Instruments and other relevant provisions. Held-for-trading financial assets/held-
accounting policies and specific for-trading financial liabilities were adopted for initial and subsequent
accounting principles have measurements of the foreign exchange contracts. The fair values of the foreign
changed significantly during the exchange contracts were basically determined by referencing the different
reporting period compared with parameters of the financial institutions based on the then market conditions as
the previous reporting period well as the remaining term and duration of transaction so as to be recognized as
the held-for-trading financial assets or held-for-trading financial liabilities. There
was no significant change in the fair values of the foreign exchange contracts
compared with that in the previous reporting period.Description of actual profit and The actual revenue amounted to RMB 20.8868 million during the reporting
loss during the reporting period period.The Company carried out foreign exchange hedging business appropriately as
Descriptions of the effect of
the case may be which could effectively reduce the risks in foreign exchange
hedging
market and avoid exchange rate fluctuation risks.Sources of funds for derivatives
Equity Fund
investment
Risk analysis and description of
control measures for derivatives
For details of risk analysis and control measures please refer to the
positions during the reporting
"Announcement on Conducting Foreign Exchange Hedging Transactions"
period (including but not limited to
(Announcement No. 2024-023) which was disclosed by the Company on April
market risk liquidity risk credit
162024.
risk operational risk legal risk
etc.)
The Company recognized and measured its foreign exchange hedging business
Changes in market prices or
in accordance with Accounting Standards for Business Enterprises No. 22 -
product fair value of invested
Recognition and Measurement of Financial Instruments Accounting Standards
derivatives during the reporting
for Business Enterprises No. 37 - Presentation of Financial Instruments and
period and the analysis of the fair
other relevant provisions. The fair values of foreign exchange forward contracts
value of derivatives should
were basically measured and recognized by referencing the different parameters
disclose the specific methods
of the financial institutions based on the then market conditions as well as the
used and the setting of related
remaining term and duration of the transaction. The fair value change loss of
assumptions and parameters.foreign exchange contracts was RMB 996600 during the reporting period.Litigation involved (if applicable) None
Disclosure date of board of
directors' announcement on the
April 16 2024
approval of derivatives investment
(if any)
2) Derivatives investments for speculative purposes during the reporting period
□ Applicable □Not applicable
The Company had no derivatives investments for speculative purposes during the reporting period.
5. Utilization of raised funds
□Applicable □ Not applicable
1442024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Utilization of raised funds
□Applicable □ Not applicable
Unit: ten thousand RMB
Perce
ntage
Prop Aggr
of the
ortion Amou egate
aggre
The Accu of nt of amou
gate Amou
amou mulat raise funds nt of Purp
amou nt of
nt of ed d raise funds ose
nt of Amou funds
Total funds aggre funds d in raise and
Year Way funds nt of raise
amou Net raise gate used the d as use
of of Listin raise funds d put
nt of funds d amou at the curre of the of the
fund- fund- g d as raise aside
funds raise used nt of end nt curre funds
raisin raisin date of the d not for
raise d (1) in the funds of the perio nt raise
g g curre yet more
d curre raise report d that perio d not
nt used than
nt d ing were d that yet
perio two
perio used perio repur were used
d that years
d (2) d (3) pose repur
were
= (2) d pose
repur
/ (1) d
pose
d
Issua
nce
of Depo
5.92
share April sited
509950898258432284.9330193019%8314
2023 s to 14 in 0
99.92 83.26 3.88 76.60 % 1.75 1.75 (Note 9.32
specif 2023 bank
1)
ic s
objec
ts
5.92
509950898258432284.9330193019%8314
Total -- -- -- 0
99.92 83.26 3.88 76.60 % 1.75 1.75 (Note 9.32
1)
Notes on utilization of raised funds
1. According to the “Reply on Approving the Non-public Issuance of Shares by Zhejiang Dahua Technology Co. Ltd.”
(Zheng Jian License [2022] No. 853) released by CSRC the Company issued 293103400 shares to specific parties
at an issue price of RMB 17.40 per share. The total amount of funds raised in this offering is RMB 5099999160.00
and after deducting RMB 10166575.28 (excluding VAT) the cost associated with issuance the actual net amount of
funds raised is RMB 5089832584.72 which has been verified by BDO China Shu Lun Pan CPAs (special general
partnership) in the Capital Verification Report (Lixin Accounting Report [2023] No. ZF10231).
2. On August 23 2024 the Company held the seventh meeting of the eighth Board of Directors and the sixth meeting
of the eighth Board of Supervisors and reviewed and approved the "Proposal on the Completion of Some Fundraising
Projects and the Permanent Use of Surplus Fundraising Funds to Supplement Working Capital". In view of the fact
that the Company's fundraising investment projects "AIoT Solution R&D and Industrialization Project" and
"Supplementary Working Capital Project" have been invested and completed in order to improve the efficiency of the
use of raised funds with the approval of the Board of Directors and the Board of Supervisors the Company used the
surplus raised funds of the aforementioned fundraising projects and the general account of raised funds totaling RMB
17.7424 million (including interest income from bank deposits) to permanently supplement its working capital and
cancelled the relevant special accounts for raised funds.
3. The Company cumulatively used raised funds of RMB 4322.766 million the special account of the raised funds has
received a net bank interest income of RMB 82.169 million and as of December 31 2024 the balance of unused
raised funds was RMB 831.4932 million.
1452024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Note 1: Percentage of the aggregate amount of funds raised cumulative change in purpose was calculated based on
the total amount of the fund raised.
(2) Projects with pledged investments using raised funds
□Applicable □ Not applicable
Unit: ten thousand RMB
Proje
cts
with
pled
ged
Whet Inve Cum
inves
her Cum stme The ulativ
tmen Amo Whet
the Total ulativ nt date e
ts unt her
proje pled e progr the Bene Inco Whet
and Inve there
cts ged inves ess proje fits me her
Fina inves sted are
have inves Total tmen as of ct reali As expe
ncin tmen in majo
Proje been tmen adju ts as the reac zed Of cted
g Listin t the r
ct chan ts sted of end hes durin The bene
Proje g direc Curr chan
Natu ged usin inves the of its g the End fits
ct date tions ent ges
re (incl g tmen end repor inten repor Of have
Nam of Rep in
udin raise ts (1) of ting ded ting The been
e exce ortin proje
g d repor perio usab perio Rep achi
ss g ct
parti fund ting d le d ortin eved
fund Perio feasi
al s perio (3)=( statu g
s d bility
chan d (2) 2)/(1 s Perio
due
ges) ) d
to
over
subs
cripti
on
Projects with pledged investments
Proje
ct of
Sma
Oper
rt IoT
ation
Solut
Man 929 929 929
ion R 100. 131 470
age No 90.0 90.0 0 90.0 2023 No No
& D 00% 1.73 3.28
ment 0 0 0
and
Proje
Issu Indu
ct
ance striali
of zatio
shar April n
es to The
14
speci phas
fic 2023 e II
Prod
obje cons
uctio
cts in tructi
n
2023 on 100.
and 775 775 778
proje 357 36% 628 628
Cons No 80.0 80.0 59.3 2024 No No
ct of 9.50 (Not 1.11 1.11
tructi 0 0 8
the e 2)
on
smar
Proje
t
ct
man
ufact
uring
1462024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
base
in
Han
gzho
u
Artifi
cial
intelli
genc
e
tech
nolo
gy Rese
rese arch
759
arch and
88911951250.6
and Deve 63.7
Yes 60.0 151. 08.6 1 2026 N/A N/A N/A No
deve lopm 4%
0 75 9 (Not
lopm ent
e 1)
ent Proje
and ct
appli
catio
n
rese
arch
proje
ct
5G
IoT
and
multi
-
dime
Rese
nsio
arch
nal 353
and
perc 100 702 277 64.6
Deve 50.3
eptio Yes 470. 78.2 95.6 2 2026 N/A N/A N/A No
lopm 2%
n 00 5 9 (Not
ent
prod e 1)
Proje
ucts
ct
and
soluti
ons
R&D
proje
ct
Repl
enis Flow
hme Supp 100.
148148
nt of leme 150 76%
No 983. 983. 0 N/A N/A N/A N/A No
worki nt 111.9 (Not
2626
ng Proje 9 e 2)
capit ct
al
508508825432
983.983.83.8276.109
Subtotals for projects with 759
--2626860----84.3----
pledged investments 2.84 (Not 9
e 1)
Investment directions of excess funds due to oversubscription
N/A
508508825432759109
983.983.83.8276.2.8484.3
Total -- 26 26 8 60 -- -- 9 -- --
(Not
e 1)
1472024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
1. The R&D and industrialization project of AIoT solutions failed to achieve the
expected benefits mainly because (1) the project revenue was lower than
expected due to the impact of the overall industry environment; (2) in order to
Explain the circumstances and
meet market demand and expand segmented scenarios some product lines
reasons for failing to achieve the
of the project adjusted their product structure resulting in a decrease in gross
planned progress and expected
margin; and (3) the Company continued to strengthen research and
benefits for each project (including
development and productization in technical fields such as software
the reasons for selecting "Not
platforms cloud computing and big data and its R&D investment increased.applicable" for "Whether expected
2. The failure of the Phase II construction project of Hangzhou manufacturing
benefits have been achieved")
base to achieve the expected benefits was mainly due to the impact of the
overall industry environment and the project revenue was lower than
expected.Notes on major changes in project
N/A
feasibility
The amount purpose and progress
of the use of the excess funds due to N/A
oversubscription
Changes of the implementation Applicable
location of the projects using raised Such cases happened during the reporting period
funds See (3) Change of projects that use raised funds for details.Changes of the implementation Applicable
method of the projects using raised Such cases happened during the reporting period
funds See (3) Change of projects that use raised funds for details.Advance investments and
replacements of raised funds in N/A
projects
Temporary replenishment of working
N/A
capital with idle raised funds
The remaining raised funds are RMB 17.7424 million which is mainly the
interest income generated by the raised funds during the deposit period in the
project special account and the general account. Considering that the
The amount and reasons for the
investment projects of the raised funds "AIoT Solution R&D and
balance of funds raised in the
Industrialization Project" and "Supplementary Working Capital Project" have
implementation of the project
been completed with the approval of the Company’s Board of Directors the
Company used the remaining raised funds from the aforementioned projects
and the general account to permanently supplement working capital.The unused funds raised (including interest income from the account of the
The intended use and disposal of the
funds raised) are deposited in the Company's special account for the funds
unused funds raised
raised.
1. On February 1 2024 the Company completed the replacement of the fund
raised with its own funds with a total replacement amount of RMB
4038822000 of which the replacement amount of the “artificial intelligencetechnology research and development and application research project” wasRMB 344863300 (including RMB 7839200 of interest) and that of the “5GInternet of Things and multi-dimensional perception products and solutionsR&D project” was RMB 59018700 (including RMB 1354600 of interest). All
Problems or other circumstances in
the above funds have been deposited to the corresponding special account of
the use and disclosure of the funds
the funds raised and the aforesaid matters have been verified by BDO China
raised
Shu Lun Pan CPAs (special general partnership) which has issued the
Verification Report on Special Explanation of the Replacement of Funds
Raised with Own Funds Xin Kuai Shi Bao Zi [2024] No. ZF10020. See (3)
Change of projects that use raised funds for details.
2. On May 19 2023 the Company held the 43rd meeting of the 7th Board of
Directors and the 30th meeting of the 7th Board of Supervisors and reviewed
and approved the "Proposal on the Use of Acceptance Bills Equity Funds
1482024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
etc. to Pay Funds for Investment Projects and Replace them with Equal
Amounts of Fundraised Funds" agreeing that during the implementation of
the investment projects with raised funds the Company would use
acceptance bills (including endorsement transfers) own foreign exchange
supply chain bills and equity funds to advance payment of part of the funds
for investment projects and regularly transfer equal amounts from the special
account for raised funds to the Company’s equity funds account. This part of
the equal amount of replacement funds would be deemed as funds used for
the investment projects.Note 1: The total amount of investment amount as of the end of the period is the total amount of investment
at the end of 2023 plus the investment amount in the current reporting period net of the amount of raised
funds replaced by the company's own funds.Note 2: The interest income from bank deposits is the excess of the actual investment amount of the
replenishment of working capital projects over the total pledged investments using raised funds.
(3) Change of projects that use raised funds
□Applicable □ Not applicable
Unit: ten thousand RMB
Total Are
Actual
amoun Invest there
Actual total The
t of ment Benefit Wheth any
Corres amoun amoun date
funds progre s er major
pondin t t the
raised ss as realize expect chang
Financi Chang g investe investe project
Way of to be of the d ed es in
ng ed original d in d as of reache
fund- investe end of during benefit feasibil
Project project commit the the s its
raising d in reporti the s have ity of
Name s ment current end of intend
the ng reporti been the
project reporti reporti ed
chang period ng achiev chang
s ng ng usable
ed (3)=(2) period ed ed
period period status
project /(1) project
(2)
s (1) s
Artifici
al
intellig
ence
technol
Constr
ogy
uction
resear
Project
Issuan ch and 11915 51208 75950 63.74
of 2026 N/A N/A No
ce of Issuan develo 1.75 .69 .61 %
Xi'an R
shares ce of pment
& D
to shares and
Center
specifi to applica
c specifi tion
objects c resear
in objects ch
2023 project
5G New
IoT project
and of
70278277953536450.32
multi- South 2026 N/A N/A No.25.69.62%
dimens west
ional R&D
percep Center
1492024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
tion of
produc Dahua
ts and Co.solutio Ltd.ns
R&D
project
189437900411131
Total -- -- -- -- -- -- --
0.00.385.23
1. Reasons for increasing the scale of investment of funds raised in the artificial
intelligence technology research and development and application research project
(formerly "Construction Project of Xi'an R & D Center"):
With the launch of ChatGPT in November 2022 artificial intelligence has gradually
entered the development stage of big model in AGI (General Artificial Intelligence). The
integrated development of digitalization and AGI will bring a new round of development
cycle and transformation to the industry. The "industry brain" that fully combines
industry experience in the visual field is the inevitable path for the real commercial
landing of artificial intelligence model and it is also one of the key research and
development fields of many technology enterprises around the world. The company has
accumulated a lot of experience in many industries concerning the government and
enterprises. In the future it needs to further increase R & D resources investment and
talent echelon construction in large visual models in artificial intelligence and trains the
large visual model in artificial intelligence for industry landing application through the
ability of the big model and the knowledge accumulated in industry segments to
promote the digital and intelligent business development of the government and the
enterprise and to further enhance the Company's core competitiveness. Therefore the
amount of the project investment and the investment scale of the funds raised are
increased.
2. Reasons for reducing the investment scale of funds raised 5G Internet of Things and
multi-dimensional perception products and solutions R&D projects (formerly "New
project of Southwest R&D Center of Dahua Co. Ltd."):
Given that the R&D center in Hangzhou headquarters has quickly seized the R&D
Explanation of reasons for
opportunities in the fields of 5G and multi-dimensional perception by using the existing
changes decision-making
technology precipitation successively released more than ten integrated 5G products
procedures and information
and more than 30 5G smart application solutions and released the 6D omni-domain
disclosure (by project)
perception technology in full-time domain full-space domain full-color domain and full-
frequency domain by utilizing the advantages of the multi-dimensional perception
technology to lead the industry to continuously expand the boundaries of the perception
capability deeply practice the integration of visual intelligence and multi-dimensional
perception and accelerate the business innovation and application. Therefore in the
direction of "5G and multi-dimensional perception" the Company can carry out the
research and development work quickly by reusing the resources and achievements of
the R&D center at Hangzhou headquarter seize the opportunities of the industry
development and optimize the use efficiency of the funds raised and the layout of the
project investment. After the project has reused the resources of the R&D center at
Hangzhou headquarters the Company has reduced the investment amount in hardware
and software of the special laboratory and R&D facilities to be set up as planned in
Chengdu taking into account such factors as saving operating costs and improving the
use efficiency of the funds raised.
3. The Company held the 4th Meeting of the 8th Board of Directors and the 3rd Meeting
of the 8th Board of Supervisors on January 12 2024 and the First Extraordinary
General Meeting of Shareholders of 2024 on January 29 2024 during which the
"Proposal on Adjusting the Investment Amount and Investment Structure of Part of the
Funds Raised Projects and Increasing the Implementing Subjects and Implementation
Locations" was considered and adopted. The Company also agreed to adjust the
investment amount of the "Construction Project of Xi'an R & D Center" and the "New
project of Southwest R&D Center of Dahua Co. Ltd." the investment amount of the
funds raised internal investment structure implementation method and subject
1502024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
implementation locations and project name.Situations and reasons for
failure to achieve planned
N/A
progress or expected
benefits (by project)
Notes on major changes in
project feasibility after N/A
change
VIII. Major Assets and Equity Sales
1. Major assets sales
□ Applicable □Not applicable
No major assets were sold during the reporting period of the Company.
2. Major equity sales
□ Applicable □Not applicable
IX. Analysis of Major Subsidiaries and Associates
□Applicable □ Not applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.Unit: RMB
Comp Comp
Registere Total Net Operating Operating
any any Main businesses Net Profit
d Capital Assets Assets income Profit
Name Type
Technology
development
services
consultation and
transfer;
manufacturing
sales and system
Zhejia
services of
ng
computer hardware
Dahu
Subsi and software;
a
diary manufacturing and 1306810 2334049 2561502 2338288 8296506 6745205
Vision
Comp sales of security 000.00 3944.39 790.32 1120.18 8.22 5.56
Techn
any devices
ology
mechanical and
Co.electrical devices
Ltd.and photovoltaic
devices; sales and
technical services
of IoT devices;
charging pile sales;
warehousing
services bonded
1512024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
warehouse
operation.Technology
development
services
consultation and
transfer;
manufacturing and
marketing of
computer hardware
and software;
Zhejia
development
ng
Subsi manufacturing and
Dahu
diary marketing of 1885800 6388777 1631899 6113767 7555585 3691557.a
Comp electronic products 000.00 311.37 284.65 350.88 8.67 78
Zhilia
any and electronic
n Co.components safety
Ltd.equipment and
communication
devices; leasing of
self-owned houses;
warehousing
services; catering
services; import
and export of
goods
Acquisition and disposal of subsidiaries during the reporting period
□Applicable □ Not applicable
Method of acquisition and disposal of
Impact on overall production
Company Name subsidiaries during the reporting
management and performance
period
Qingdao Dahua Ruifa Intelligent No significant impact on overall
Internet of Things Technology Co. Established with investment production operation and
Ltd. performance
No significant impact on overall
Shandong Dahua Digital Intelligence
Established with investment production operation and
Technology Co. Ltd.performance
No significant impact on overall
Fujian Dahua Qingchuang Digital
Established with investment production operation and
Technology Co. Ltd.performance
No significant impact on overall
Jilin Dahua Zhilian Technology Co.Established with investment production operation and
Ltd.performance
No significant impact on overall
Zhengzhou Airport Economy Zone
Established with investment production operation and
Huaao Technology Co. Ltd.performance
No significant impact on overall
Hainan Dahua Huizhi Technology
Established with investment production operation and
Co. Ltd.performance
No significant impact on overall
PT IMOU TEKNOLOGI INDONESIA Established with investment production operation and
performance
No significant impact on overall
PT IMOU INDONESIA SENANTIASA Established with investment production operation and
performance
HIRIGE TECHNOLOGY MALAYSIA Established with investment No significant impact on overall
1522024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
SDN. BHD. production operation and
performance
No significant impact on overall
Dahua Technology Egypt LLC Established with investment production operation and
performance
DAHUA TECHNOLOGY AUH FOR No significant impact on overall
SECURITY & SURVEILLANCE – Established with investment production operation and
SOLE PROPRIETORSHIP L.L.C. performance
No significant impact on overall
Dahua Technology USA Inc. Equity transfer production operation and
performance
No significant impact on overall
Yunnan Zhili Technology Co. Ltd Logout production operation and
performance
No significant impact on overall
Wuhu Huajian Technology Co. Ltd. Logout production operation and
performance
No significant impact on overall
DaHua Ideal Tech and the
New production operation and
companies it controls
performance
X. Structured Entity Controlled by the Company
□ Applicable □Not applicable
XI. Prospects for the Future Development of the Company
1. Focus on the main channel of AIoT and strive to build the world's preferred brand of
AIoT
The Company regards technological innovation as its core competitiveness focusing resources
on refining and perfecting each product to enhance the quality of business growth; at the same time
it deeply explores valuable industries and valuable customers achieves balanced development of
distribution channels integrator customers and industry users and realizes product value. Faced
with the highly fragmented market of AIoT ecological development is the Company's long-term
strategic choice. Distributors integrators ISVs software service providers installation service
providers etc. are all long-term partners. The Company will play the ecological "amplifier" effect to
achieve a win-win value with its partners.
2. Focus on key work
(1) Continue to increase investment in innovation and core technologies form core technology
barriers adhere to the two major technical directions of AIoT and intelligent IoT data platform build a
"five full" capabilities foundation realize the "three improvements" of full-domain 6D perception
technology upgrade video perception capabilities in multiple dimensions comprehensively expand
full-frequency domain perception capabilities strengthen research and development and investment
in the field of artificial intelligence combine multi-modal and large model technology capabilities
1532024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
promote the research and development and industrial implementation of industry visual large models
for industry applications accelerate the industrialization and upgrading of AI and further expand the
scale of digital and intelligent business in cities and enterprises.
(2) Adhere to the full ecosystem strategy anchor the realization of customer value build
comprehensive open capabilities from technology business to services and fully open up to industry
customers and developers from hardware software algorithms to services and business
ecosystems. Work with ecosystem partners to open up new areas create new momentum jointly
create and build unlimited possibilities for industrial development and empower the digital intelligence
of thousands of industries.
(3) Optimize the layout of the global marketing and service system continue to deepen business
into key cities in China and key overseas countries strengthen regional operating capabilities
collaborate with ecosystem partners to deepen industry development accelerate the response speed
to front-line business and enhance service content accurately match resources and build value for
customers.
(4) In the innovative business the Company based on its in-depth understanding of customers'
diversified needs and years of experience in AIoT continues to explore emerging businesses
including: machine vision and mobile robots thermal imaging automotive electronics smart security
inspection smart fire control and storage medium to continuously expand new high-potential growth
points for the Company.
(5) Deepen intelligent manufacturing and build a customer-oriented digital supply system. By
building digital supply chain capabilities visualizing the manufacturing process optimizing logistics
effectively managing suppliers planning delivery capabilities and ensuring efficient internal
collaboration we can fulfill delivery commitments on time and reliably to meet customer needs.
(6) Enhance business operating efficiency focus on high-quality operations further improve the
refined management of customers and business opportunities and strengthen front-line operational
capabilities. The supply chain shortens delivery time and further reduces costs through flexible supply.Strengthen quality management comprehensively improve delivery and product quality and promote
the practical application of new technologies in intelligent software programming intelligent pre-sales
and intelligent operation and maintenance.
(7) Deepen organizational capacity develop talent teams stabilize the talent hierarchy and
promote a virtuous cycle of management personnel and professional talents; cultivate a high-
performance culture and clarify organizational responsibilities enhance organizational efficiency and
per capita efficiency; inspire hard work and reciprocation and continue to promote the "Employee
Development Community Plan".
1542024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(8) Continue to advance the construction of the Company's compliance system to effectively
safeguard compliant operations and stable development of the business.XII. Reception of Visits Communication Interviews and Other Activities in the
Report Period
□Applicable □ Not applicable
Recepti
Recepti Main content of the Index of the basic
Reception Receptio on
on Reception objects discussion and the information of
Time n Method target
location information provided research
type
Business situation in
2023 and outlook for Juchao Information
Compa Dongxing Fund 2024 with a focus on Network "Investor
Field
January ny Instituti Haitong communication and Relations Activity
Investigat
23 2024 meetin on Securities and 28 exchange on customer Record Form from
ion
g room other institutions ecosystem construction January 23 to 25
and full-sensing field 2024"
business.
222 institutions
including CITIC The Company's Juchao Information
Compa Telephon
Securities China operating conditions in Network "Investor
April 16 ny e
Others Merchants Asset 2023 and strategic Relations Activity
2024 meetin communi
Management and development plan for Record Form on April
g room cation
15 individual 2024 16 2024"
investors
10 institutions
Communicate and
including CITIC Juchao Information
Compa exchange ideas on
Field Securities China Network "Investor
May 13 ny future industry
Investigat Others Merchants Asset Relations Activity
2024 meetin situation overseas
ion Management and Record Form on May
g room business investor
9 individual 17 2024"
returns etc.investors
110 institutions
including CITIC Juchao Information
Compa Telephon
Securities China The Company's Network "Investor
August 24 ny e
Others Merchants Asset operating situation in Relations Activity
2024 meetin communi
Management and the first half of 2024 Record Form on
g room cation
3 individual August 24 2024"
investors
129 institutions
including CITIC Juchao Information
Compa Telephon The Company's
Securities China Network "Investor
October ny e operating situation in
Others Merchants Asset Relations Activity
26 2024 meetin communi the first three quarters
Management and Record Form on
g room cation of 2024
4 individual October 26 2024"
investors
13. Development and implementation of market value management system and
valuation enhancement plan
Whether the Company has established a market value management system.□Yes □No
1552024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Whether the Company has disclosed its valuation enhancement plan.□ Yes □No
In order to strengthen the Company's market value management work further standardize the Company's market
value management behavior and safeguard the legitimate rights and interests of the Company investors and other
stakeholders the Company has formulated a market value management system. The Company should focus on its
core business and improve its operating efficiency and profitability. At the same time based on its own circumstances
it can use a combination of mergers and acquisitions equity incentives employee stock ownership plans cash
dividends investor relations management improved information disclosure quality share buybacks and other legal
and compliant methods to enhance the Company's investment value.XIV. Implementation of the “Increase in Both Quality and Returns” Action Plan
Has the Company disclosed the announcement of the "Increase in Both Quality and Returns" action plan
□Yes □NoTo safeguard the interests of all shareholders the Company has formulated the “Increase in BothQuality and Returns” Action Plan based on its confidence in the future development prospects andrecognition of its stock value. For details see the Announcement on “Increase in Both Quality andReturns” Action Plan (Announcement No. 2024-013) published on Juchao Information Network on
February 7 2024.The Company always takes high-quality development as its theme and always adheres to the
core values of "achieving customers achieving strivers". It fulfills the mission of "making society
smarter and life better" relying on two technical strategies: AIoT and the intelligent IoT data platform.It effectively integrates artificial intelligence big data and IoT technologies into the Company's
products and solutions serving urban digital innovation and enterprises' digital and intelligent
transformation. The Company is committed to building a preferred brand of AIoT promoting high-
quality green and innovative development of the economy and society.The Company continues to strengthen the foundation of corporate governance build a sound
internal control system and promote the "shareholders' meeting board of directors board of
supervisors and senior management" to fulfill their responsibilities and homing. Standardize the rights
and obligations of the Company and shareholders to prevent the abuse of shareholders' rights and
prevent the dominant position of management from harming the rights and interests of small and
medium investors. Strengthen the management of investor relations broaden the channels for
institutional investors to participate in corporate governance guide small and medium-sized investors
1562024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
to actively participate in general meeting of shareholders and create convenience for all kinds of
investors to participate in major decision-making to enhance their right to speak and sense of gain.The Company has built a firm sense of returning to shareholders while laying a solid foundation
for its development. It insists on cash dividends every year and since its listing the total amount of
cash dividends has exceeded RMB 7.5 billion. During the reporting period the Company formulated
and implemented a profit distribution plan for the first half of 2024 and distributed cash of about RMB
602 million in total to all shareholders. Meanwhile taking into account the future business
development of the Company and the capital needs of production and operation the Company
formulated the 2024 annual profit distribution plan and intended to distribute cash of RMB 4.58 (tax
included) per 10 shares to all shareholders with a cash dividend of about RMB 1.502 billion in order
to make the shareholders obtain better returns.
1572024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section IV Corporate Governance
I. Basic Situation on Corporate Governance
The Company strictly follows the requirements of relevant laws regulations rules and normative documents such as
the Company Law the Securities Law and the Governance Guidelines for Listed Companies and has established a
"shareholders' meeting board of directors board of supervisors and senior management" corporate governance
structure consisting of the general meeting of shareholders the Board of Directors the Board of Supervisors and the
management. The Board of Directors has four special committees: the strategic committee the audit committee the
nomination committee and the remuneration and assessment committee. Each institution has clear responsibilities and
powers and operates in a coordinated manner.During the reporting period the Company continued to improve its corporate governance structure establish and
improve its internal control system continuously enhance its standardized operation level strictly fulfill its information
disclosure obligations and focus on protecting the interests of investors. During the reporting period the actual
situation of corporate governance is basically in line with the legal regulatory normative documents and self-
regulatory rules regarding the governance of listed companies issued by the China Securities Regulatory Commission
Shenzhen Stock Exchange and others.(I) Shareholders and General Meeting of Shareholders
The Company convenes and holds general meetings of shareholders in strict accordance with the provisions and
requirements of the Company Law the Articles of Association and the Rules of Procedure for General Meeting of
Shareholders and is able to treat all shareholders equally thus ensuring shareholders' rights to know participate and
vote on major matters of the Company. During the reporting period three general meetings of shareholders were held
and resolutions were made on issues such as regular reports adjustments to fundraising and investment projects and
cash dividends. The Company hired lawyers to issue legal opinions on matters such as the convening of the general
meeting of shareholders the qualifications of attendees the qualifications of the convener the voting procedures and
the voting results to ensure that the operating mechanism of the general meeting of shareholders complies with
relevant regulations and safeguards the legitimate rights and interests of shareholders.(II) The Company and Controlling Shareholder
The Company is independent from the controlling shareholder in terms of business personnel assets finance and
organization and each has independent accounting and bears independent responsibilities and risks. During the
reporting period the controlling shareholder was able to strictly regulate its own behavior and exercise shareholder
rights under relevant laws regulations and the Company's Articles of Association. There was no situation of abusing
its controlling position to damage the legitimate rights and interests of the listed company and other shareholders nor
was there any situation of occupying the listed company's funds for non-commercial purposes.(III) Directors and the Board of Directors
The Company elects the directors and appoints the independent directors in strict accordance with the selection and
employment procedure specified in the Company Law and the Articles of Association. At present the Company has
1582024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
nine directors including three independent directors all of whom are experts in corporate management financial
accounting and other fields. The number and composition of the Board of Directors meet the requirements of relevant
laws and regulations and the Articles of Association. All directors of the Company can perform their duties honestly
and diligently in accordance with the requirements of maximizing the interests of the Company and shareholders. The
Board of Directors convenes board meetings and implements the resolutions of the shareholders' meeting in strict
accordance with the Articles of Association and the Rules of Procedure of the Board of Directors; all the directors are
able to perform their due duties and conscientiously attend the Board meetings and shareholders' meetings to
safeguard the legitimate rights and interests of the Company and shareholders.(IV) Supervisors and the Board of Supervisors
The Board of Supervisors of the Company strictly elects the supervisors by the election and appointment procedures
specified in the Company Law and the Articles of Association. The Company currently has three supervisors and the
number and composition of the Board of Supervisors meet the requirements of relevant laws and regulations and the
Articles of Association. The board of supervisors convenes supervisor meetings in strict accordance with the Articles of
Association and the Rules of Procedure of the Board of Supervisors. All the supervisors perform their duties
conscientiously and effectively supervise and express independent opinions on the legitimacy and compliance of the
performance of the corporate finance directors and senior managers in an integral diligent and conscientious manner
to safeguard the legitimate rights and interests of the Company and shareholders.(V) Senior Management
The Company's senior management has clear responsibilities and is able to perform their duties in strict accordance
with the Articles of Association and other management systems act diligently and conscientiously and effectively
implement and execute the resolutions of the Board of Directors.(VI) Performance Appraisal and Incentive and Restrictive Mechanisms
In order to further establish and improve the Company's incentive mechanism and enhance the concept of common
sustainable development between the Company management and core backbone employees the Company has
implemented option and Restricted Share Incentive Plan to strengthen the interest sharing and restraint mechanism
between shareholders and core business personnel maintain the stability of the management team and business
backbones ensure the realization of the Company's development strategy and business objectives and ensure the
long-term and stable development of the Company. The appointment of company executives is open transparent and
complies with laws and regulations.(VII) Stakeholders
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders. While striving
to achieve a steady growth of the Company's performance the Company also effectively treats and protects the
legitimate rights and interests of all stakeholders strengthens communication and cooperation with all parties
continuously improves product quality emphasizes corporate social responsibility and realizes the balance of
interests among shareholders employees society etc. in order to promote sustainable stable and healthy
development of the Company.
1592024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(VIII) Information Disclosure and Investor Relations
The Company performs obligations for truthful accurate timely and complete information disclosure in strict
accordance with the relevant laws and regulations and the Company's Information Disclosure Management System
and Investor Relations Management System and designates Securities Times and Juchao Information Network
(www.cninfo.com) as the media channels for such disclosure; the Company strictly enforces the confidentiality of
undisclosed information. In accordance with the provisions of the Company's Inside Information Confidentiality System
the registration and filing of insiders of insider information is done conscientiously. The internal information insider filing
system has been established and submitted to the regulatory authorities for record in time as required and the
behavior of submitting company information to external information users has been strictly regulated. During the
reporting period no incidence of stock trading based on insider information has occurred.At the same time the Company actively carries out exchanges with investors opens an investor relations
management column on the Company's official website and responds to investors' questions through the Shenzhen
Stock Exchange's investor interactive relations platform the Company's investor hotline etc. to keep investor
communication channels smooth help investors understand the Company get closer to the Company improve the
Company's transparency and protect the legitimate rights and interests of all shareholders.Whether the actual status of corporate governance significantly deviates from the laws administrative regulations and
the regulations issued by the China Securities Regulatory Commission regarding the governance of listed companies.□ Yes □No
There is no significant difference between the actual situation of corporate governance and the laws administrative
regulations and the provisions of listed companies issued by the China Securities Regulatory Commission.II. The Company’s Independence from the Controlling Shareholder and Actual
Controller in terms of the Company’s Assets Personnel Finance Organization
Business etc.The company and the controlling shareholders are completely separated in terms of business personnel assets
organization and finance and has independent and complete businesses and capabilities of independent operation.
1. Business independence
The company's business is independent of the controlling shareholders actual controllers and other enterprises under
their control and has an independent and complete R&D production procurement and sales system; the technology
required for production and operation is legal independently owned or licensed for use by the company with no asset
disputes. The company has signed all external contracts independently and has the ability to independently make
production and operation decisions and engage in production and business activities.
2. Personnel independence
The company's personnel are independent from the controlling shareholders actual controllers and other companies
controlled by them. The company has an independent human resources department responsible for labor personnel
and payroll management. The Company has established an independent labor personnel and salary management
system. The production operation and administration are independent of the controlling shareholders actual
controllers and other companies controlled by them; the recommendation election and appointment of directors
1602024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
supervisors and senior managers of the Company have all been conducted legally and independently; senior
management personnel such as the president executive president senior vice president secretary of the Board of
Directors and finance director did not hold positions other than directors and supervisors for controlling shareholders
actual controllers and other companies controlled by them or receive salaries from them; the Company's financial staff
do not have a part-time job with the controlling shareholders actual controllers and other companies controlled by
them.
3. Asset independence
The company's assets are independent from the controlling shareholders actual controllers and other companies
controlled by them. The company's main assets include the ownership and use rights of complete land plants
machinery and equipment trademarks patents non-patented technology required for the main business and an
independent raw material procurement and product sales system. The property rights of the above assets are clear
and completely independent of the controlling shareholders and major shareholders. There was misappropriation of
the company's assets by the controlling shareholders and major shareholders.
4. Organizational independence
The company's organizations are independent from the controlling shareholders actual controllers and other
companies controlled by them. The Company has established a general meeting of shareholders Board of Directors
Board of Supervisors and other decision-making implementation and supervision organizations. It has also
appointed senior managers such as president executive president vice president board secretary and chief financial
officer; the Company has set up specialized departments equipped with the necessary personnel independently
responsible for domestic/overseas sales R&D supply chain delivery and service quality and service finance legal
affairs securities internal audit human resources administration IT and other functions. The internal organizations
perform their respective operational management responsibilities under the leadership of the Board of Directors and
the president in accordance with the rules and regulations; there have been no cases in which the controlling
shareholders actual controllers and other companies controlled by them are confused with their identities and duties;
there has been no incidence of the controlling shareholders or actual controllers intervening in the establishment of the
Company's organizational setup.
5. Financial independence
The company's finance is independent from the controlling shareholders actual controllers and other companies
controlled by them. The company has established an independent financial department with full-time financial
accounting personnel and has established an independent financial accounting system for independent financial
decisions. It has a standardized financial accounting system and financial management system for subsidiaries; the
company has independently opened a basic deposit account so that there is no sharing of bank accounts with actual
controllers controlling shareholders and other companies controlled by it; the company handled tax registrations with
the Zhejiang Provincial State Tax Bureau and the Zhejiang Provincial Local Tax Bureau and paid taxes independently
as required by law.III Horizontal competition
□ Applicable □Not applicable
1612024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
IV. Relevant Situation of the Annual General Meeting of Shareholders and the
Extraordinary General Meeting of Shareholders Held in the Reporting Period
1. The shareholders' meetings for this reporting period
Percenta
Date of
Conference Conference ge of Date of
Conferenc Conference Resolution
Session Type Investors Disclosure
e
Involved
For details see the Announcement
First
of Resolution of the First
Extraordinary Extraordinary
January January 30 Extraordinary General Meeting of
General Meeting General 45.49%
29 2024 2024 Shareholders in 2024 disclosed by
of Shareholders Meeting
Juchao Information Network
in 2024
(www.cninfo.com.cn).For details see the Announcement
2023 Annual Annual of Resolution of 2023 Annual
May 13
General Meeting General 41.62% May 14 2024 General Meeting of Shareholders
2024
of Shareholders Meeting disclosed by Juchao Information
Network (www.cninfo.com.cn).For details see the Announcement
Second
of Resolution of the Second
Extraordinary Extraordinary
September September 10 Extraordinary General Meeting of
General Meeting General 46.01%
9 2024 2024 Shareholders in 2024 disclosed by
of Shareholders Meeting
Juchao Information Network
in 2024
(www.cninfo.com.cn).
2. Convening of the Extraordinary General Meeting of Shareholders upon request of the
preferred stockholders whose voting rights are restored
□ Applicable □Not applicable
V. Directors Supervisors and Senior Management
(1) Basic information
Numb
Numb Numb Reaso
er of
er of er of Numb ns for
share
share share er of the
Termi s held Other
Startin s s share chang
Positi nation at the chang
Gend g date increa decre s held es in
Name Age Post on Date begin es
er of sed in ased at the the
status of ning (share
tenure the in the end of numb
tenure of the )
period period the er of
period
(share (share period share
(share
) ) s
)
Septe
Fu April 1023 1023
Chair Incum mber
Liqua Male 58 01 8689 0 0 0 8689 N/A
man bent 10
n 2005 80 80
2026
Wu Vice Incum April Septe 6917 6917
Male 53 0 0 0 N/A
Jun Chair bent 01 mber 2886 2886
1622024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
man 2005 10
2026
Septe
April
Chen Femal Direct Incum mber 7126 7126
58 01 0 0 0 N/A
Ailing e or bent 10 2813 2813
2005
2026
Septe
Zhao March
Direct Incum mber 1312 1312
Yunin Male 48 6 0 0 0 N/A
or bent 10 600 600
g 2023
2026
Septe Septe
Yuan Direct Incum mber mber
Male 57 0 0 0 0 0 N/A
Lihua or bent 11 10
20232026
Septe Septe
Zhang
Direct Incum mber mber
Xiaom Male 53 0 0 0 0 0 N/A
or bent 11 10
ing
20232026
Indep
Septe
enden Augus
Liu Incum mber
Male 62 t t 12 0 0 0 0 0 N/A
Hanlin bent 10
Direct 2020
2026
or
Indep
Septe
enden Augus
Zhang Incum mber
Male 60 t t 12 0 0 0 0 0 N/A
Yuli bent 10
Direct 2020
2026
or
Indep
Dece Septe
Cao enden
Incum mber mber
Yanlo Male 50 t 0 0 0 0 0 N/A
bent 20 10
ng Direct
20212026
or
Emplo Septe
Song April
Femal yee Incum mber
Maoy 43 03 0 0 0 0 0 N/A
e Super bent 10
uan 2008
visor 2026
Emplo Septe
Zheng Augus
Femal yee Incum mber 5020 5020
Jiepin 46 t 12 0 0 0 N/A
e Super bent 10 0 0
g 2020
visor 2026
Septe Septe
Super Incum mber mber
Jia Qi Male 47 0 0 0 0 0 N/A
visor bent 11 10
20232026
Febru Septe
Fu
Presid Incum ary mber
Liqua Male 58
ent bent 27 10
n
20202026
Execu Dece Septe
Zhao
tive Incum mber mber
Yunin Male 48
Presid bent 19 10
g
ent 2022 2026
Senior Septe
Octob
Liu Vice Incum mber 8055 8055
Male 44 er 12 0 0 0 N/A
Ming Presid bent 10 00 00
2020
ent 2026
1632024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Senior Febru Septe
Li Vice Incum ary mber 9406 9406
Male 50 0 0 0 N/A
Zhijie Presid bent 27 10 00 00
ent 2020 2026
Senior Septe
Octob
Song Vice Incum mber 3276 3276
Male 47 er 12 0 0 0 N/A
Ke Presid bent 10 00 00
2020
ent 2026
Secret
ary of
the
Board
Dece Septe
of
Wu Incum mber mber 1624 1624
Male 51 Direct 0 0 0 N/A
Jian bent 01 10 935 935
ors
20052026
Senior
Vice
Presid
ent
Senior
Vice
Presid
Febru Septe
Xu ent
Femal Incum ary mber 8286 8286
Qiaof 53 Chief 0 0 0 N/A
e bent 27 10 00 00
en Finan
20202026
cial
Office
r
Senior Septe
Xu 22
Vice Incum mber 8826 8826
Zhich Male 59 March 0 0 0 N/A
Presid bent 10 00 00
eng 2018
ent 2026
Senior Septe
Zhu 22
Vice Incum mber 1075 1075
Jianta Male 43 March 0 0 0 N/A
Presid bent 10 825 825
ng 2018
ent 2026
Senior Septe
April
Chen Vice Incum mber 5304 5304
Male 43 15 0 0 0 N/A
Qiang Presid bent 10 0 0
2024
ent 2026
Senior Dece
Gao April
Vice Resig mber 3536 3536
Chuns Male 47 15 0 0 0 N/A
Presid ned 09 40 40
han 2024
ent 2024
11721172
Total -- -- -- -- -- -- 5598 0 0 0 5598 --
1919
During the reporting period were there any directors or supervisors leaving their posts or senior management
dismissed during their term of office
□Yes □No
During the reporting period due to the Company's business management adjustments Mr. Gao Chunshan applied to
resign from the positions of Senior Vice President and President of the Domestic Marketing Center. For details please
see the "Announcement on the Resignation of Senior Management" disclosed by the Company on Juchao Information
Network on December 10 2024.
1642024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Changes of Directors Supervisors and Senior Management of the Company
□Applicable □ Not applicable
Name Title Type Date Reasons
Senior Vice
Chen Qiang Appointment April 15 2024 Appointment
President
Senior Vice
Gao Chunshan Appointment April 15 2024 Appointment
President
Senior Vice
Gao Chunshan Dismissal December 09 2024 Job transfer
President
2. Position status
Professional backgrounds major work experiences and current main responsibilities in the Company for incumbent
directors supervisors and senior management of the Company
Mr. Fu Liquan Chinese nationality born in 1967 with an EMBA degree from Zhejiang University. As one of the main
founders of the Company he has served as the director chairman and president of the Company and currently holds
the titles of chairman and president of the Company. He has won the honors of "Top Ten Influential Zhejiang
Entrepreneurs" "Model Worker of Zhejiang Province" "Outstanding Constructer of Socialism with Chinese
Characteristics in the New Era of Non-Public Economy in Zhejiang Province" "Excellent Enterprise Operator with
Outstanding Contributions to the Information Economy" "Outstanding Figure Award of China Security - Tribute to the
40 Years Anniversary of Reform and Opening Up" "Excellent Contributions Award in 'Ingenuity for a Safe China'"
Global Security Contribution Award Top Ten Figures in Security and Protection Industry and the Best CEO of listed
companies of Forbes.Mr. Wu Jun Chinese nationality born in 1972 with a bachelor's degree engineer served as vice chairman and vice
president of the Company and general manager of Zhejiang Dahua System Engineering Co. Ltd. He now serves as
vice chairman of the Company and executive director of Zhejiang Dahua System Engineering Co. Ltd.Ms. Chen Ailing Chinese nationality born in 1967 has a bachelor's degree. As one of the main founders of the
Company she served as director CFO of the Company and now serves as director of the Company.Mr. Zhao Yuning of Chinese nationality was born in 1977 and holds a master's degree in science from the National
University of Singapore. From July 2017 to December 2022 he served as Vice President of the Company General
Manager of the Overseas Marketing Center Senior Vice President of the Company and President of the Overseas
Marketing Center. He currently serves as the Company's director executive president and president of the Domestic
Marketing Center.Mr. Yuan Lihua Chinese nationality born in 1968 with a master's degree. He has served as director and deputy
general manager of China Mobile Communications Group Terminal Co. Ltd. and deputy general manager of the
Overseas Investment Management Department of China Mobile Communications Group Co. Ltd. He is currently
serving as the director of the Company director deputy general manager and general legal counsel of China Mobile
Capital Holdings Co. Ltd.Mr. Zhang Xiaoming Chinese nationality born in 1972 holds a master's degree. He was formerly the Deputy General
Manager of the Marketing Center of China Mobile Communications Group Beijing Co. Ltd. Manager of the Key
Account Department of the Customer Service Division of China Mobile Communications Group Co. Ltd. and Deputy
General Manager of Aspire Holdings Limited. He is currently the director of the Company.Mr. Cao Yanlong Chinese nationality born in 1975 member of the Communist Party of China holds a doctoral
degree. He has served as a lecturer/postdoctoral fellow at the College of Food Science and Technology at Zhejiang
University a visiting scholar at the Centre for Precision Technologies (CPT) at the University of Huddersfield in the UK
and assistant director of the Hangzhou Municipal Economic and Information Technology Commission. He is currently
1652024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
a professor at the College of Mechanical Engineering at Zhejiang University. He also serves as the dean of Zhejiang
University Shandong Industrial Technology Research Institute and an independent director of the Company.Mr. Liu Hanlin Chinese nationality born in 1963 holds a master's degree. He has served as a teaching assistant
lecturer associate professor and professor of accounting at Hangzhou Dianzi University. He has served as vice dean
of the College of Finance and Economics and secretary of the Party Committee of the School of Accounting at
Hangzhou Dianzi University. He is currently a professor at Hangzhou Dianzi University and is also a member of the
Chinese Institute of Certified Public Accountants a director of the Electronic Branch of the Accounting Society of
China a director and academician of the Zhejiang Accounting Society an executive director of the Zhejiang
Association of Chief Accountants deputy director of the Zhejiang Management Accounting Expert Advisory Committee
and an independent director of Zhejiang Great Shengda Packaging Co. Ltd. An independent director of the Company.Mr. Zhang Yuli Chinese nationality born in 1965 with a doctoral degree. He has served as Executive Deputy Director
of the MBA Center of Nankai University Vice Dean of the Graduate School Vice Dean and Dean of the School of
Business. He is currently a professor and doctoral supervisor at the School of Business of Nankai University and the
dean of the School of Innovation and Entrepreneurship of Nankai University. He is also a member of the Management
Department of the Science and Technology Committee of the Ministry of Education a member of the China High-
Quality MBA Education Certification Working Committee a member of the Tianjin Discipline Review Group and
Professional Degree Education Steering Committee and a review expert for the National Natural Science Foundation
and the National Social Science Foundation as well as an independent director of Tianjin Port Holdings Co. Ltd. and
Tianjin Benefo Tejing Electric Co. Ltd. He was the recipient of the Special Allowance from the State Council in 2004
and was selected as a distinguished professor of the "Changjiang Scholars" program of the Ministry of Education in
2013. An independent director of the Company.
Ms. Song Maoyuan Chinese nationality was born in 1982 and graduated from university. She currently serves as the
Company's president's secretary and chairman of the Board of Supervisors.Ms. Zheng Jieping Chinese nationality was born in 1979 and graduated from university. She currently serves as the
president of the Company's Human Resources Center and a supervisor.Mr. Jia Qi Chinese nationality was born in 1978 holds a bachelor's degree. He has served as General Manager of
the General Affairs Department and R&D Department of China Mobile Communications Group Terminal Co. Ltd. and
General Manager of the Beijing branch. He currently serves as the General Manager of China Mobile Capital Holdings
Co. Ltd. and a supervisor of the Company.Mr. Wu Jian Chinese nationality born in 1974 holds a master's degree. He has served as secretary of the Board of
Directors and vice president of the Company in the past five years and now serves as secretary of the Board of
Directors senior vice president of the Company.Ms. Zu Qiaofen Chinese nationality born in 1972 holds a junior college degree. Served as General Manager of the
Company's Financial Center from January 2015 to January 2017; From January 2017 to December 2017 Deputy
General Manager of the Company's Financial Center; The General Manager of the Company's Financial Center since
December 2017 and now serves as General Manager of the Company's Financial Center. She currently serves as
Chief Financial Officer Senior Vice President and President of the Financial Center.Mr. Liu Ming Chinese nationality born in 1981 holds a master's degree. He joined the Company in 2006. In the past
five years he has served as General Manager of the hardware platform development department of the Company’s
R&D center General Manager of the front-end product line of the R&D center General Manager of the product R&D
department of the R&D center and Deputy General Manager of the R&D center. He has served as Executive Vice
General Manager of the R&D center since March 2020. He now serves as senior vice president of the Company and
president of the R&D center.
1662024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Mr. Li Zhijie Chinese nationality born in 1975 holds a master's degree. From March 2005 to August 2017 served as
technical engineer director of the Delivery & Service Department of the Representative Office national delivery
representative and president of the Regional Delivery Department of Huawei Technologies Co. Ltd.; since September
2017 has been serving as General Manager of the Delivery & Service Center of the Company. He now serves as
senior vice president of the Company president of the Delivery & Service Center and president of Zhejiang Dahua
Intelligent IoT Operation Service Co. Ltd.Mr. Song Ke Chinese nationality born in 1978 holds a master's degree. He has served as the manager of the IT
Center of Hangzhou H3C Co. Ltd. General Manager of Zhejiang Dahua Technology Co. Ltd. and a supervisor of the
Company. He now serves as Senior Vice President of the Company and President of the Process IT Center.Mr. Xu Zhicheng Chinese nationality was born in 1966 and holds a junior college degree. He has successively served
as deputy general manager and general manager of marketing and a supervisor of the Company from September
2013 to June 2015 has been serving as general manager of the Internal Audit Department of the Company since June
2015 and now serves as senior vice president and general manager of the Quality Management Center.
Mr. Zhu Jiantang Chinese nationality was born in 1982 and holds a bachelor's degree. From March 2012 to January
2015 he has successively served as Product Director of R&D and Deputy General Manager of R&D Center. Since
January 2015 he has been the general manager of the Company's Supply Chain Management Center. He is currently
the senior vice president of the Company and the president of the Supply Chain Management Center.Mr. Chen Qiang Chinese nationality born in 1982 holds a master's degree. He joined the Company in 2008 and has
served as Vice President and Executive Vice President of the Company's Overseas Marketing Center. He is currently
the Company's Senior Vice President and President of the Overseas Marketing Center.Position held in shareholders entities
□ Applicable □Not applicable
Position held in other entities
□Applicable □ Not applicable
Renumeration
Position held in other received from
Name Name of other entity
entities other entity or
not
Ningbo Huayang Venture Capital Investment
Fu Liquan Executive Partner No
Partnership (Limited Partnership)
Hangzhou Gulin Equity Investment
Fu Liquan Executive Partner No
Partnership (limited partnership)
Ningbo Huaqi Investment Management
Fu Liquan Executive Partner No
Partnership (Limited Partnership)
Zhejiang Huashi Investment Management
Fu Liquan Executive Director No
Co. Ltd.Chen Ailing Zhejiang Huanuokang Technology Co. Ltd. Chairman No
Zhejiang Huashi Investment Management
Chen Ailing General Manager No
Co. Ltd.Chen Ailing Zhejiang Hyxi Technology Co. Ltd. Director No
Hangzhou Huaxi Information Technology Co. Executive Director and
Chen Ailing No
Ltd. General Manager
Huayan Capital (Hangzhou) Private Equity
Chen Ailing Chairman No
Fund Management Co. Ltd.Ningbo Hualing Venture Capital Investment
Chen Ailing Executive Partner No
Partnership (Limited Partnership)
Hangzhou Jikang Lingyi Enterprise
Chen Ailing Management Partnership (Limited Executive Partner No
Partnership)
1672024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Hangzhou Jikang Linger Enterprise
Chen Ailing Management Partnership (Limited Executive Partner No
Partnership)
Hangzhou Jikang Lingsan Enterprise
Chen Ailing Management Partnership (Limited Executive Partner No
Partnership)
Hangzhou Jikang Lingsi Enterprise
Chen Ailing Management Partnership (Limited Executive Partner No
Partnership)
Hangzhou Ruipin Enterprise Management
Chen Ailing Executive Partner No
Partnership (Limited Partnership)
Hangzhou Huazhen Equity Investment
Chen Ailing Executive Partner No
Partnership (Limited Partnership)
Ningbo Huagu Enterprise Management
Chen Ailing Executive Partner No
Partnership (Limited Partnership)
Zhejiang Huaxiao Linger Enterprise
Chen Ailing Management Partnership (Limited Executive Partner No
Partnership)
Zhejiang Huaxiao Lingyi Enterprise
Chen Ailing Management Partnership (Limited Executive Partner No
Partnership)
Hangzhou Huatan Enterprise Management
Chen Ailing Executive Partner No
Partnership (Limited Partnership)
Ningbo Huaqi Enterprise Management
Chen Ailing Executive Partner No
Partnership (Limited Partnership)
Ningbo Huakun Venture Capital Investment
Wu Jun Executive Partner No
Partnership (Limited Partnership)
Zhoushan Xinhao Technology Development Executive Director and
Wu Jun No
Co. Ltd. General Manager
Central Enterprises Rural Industry Investment
Yuan Lihua Vice Chairman No
Fund Co. Ltd.Yuan Lihua China Mobile Investment Holdings Co. Ltd. Director No
Director Deputy
Yuan Lihua China Mobile Capital Holdings Co. Ltd. General Manager Yes
General Legal Counsel
Cao Yanlong Hangzhou Hanmo Industrial Group Co. Ltd. Supervisor No
Zhejiang Xiwei New Energy Technology Co. Executive Director and
Cao Yanlong No
Ltd. General Manager
Hangzhou Hemu Intelligent Technology
Cao Yanlong Executive Partner No
Partnership (Limited Partnership)
Qingdao Yihua Mingsheng Technology Co.Cao Yanlong Executive Director No
Ltd.Zhang Yuli Tianjin TEDA Construction Group Co. Ltd. Director No
Zhang Yuli Tianjin Port Holdings Co. Ltd. Independent Director Yes
Zhang Yuli Tianjin Benefo Tejing Electric Co. Ltd. Independent Director Yes
Liu Hanlin Zhejiang Great Shengda Packaging Co. Ltd. Independent Director Yes
Hangzhou Crysound Electronic Stock
Liu Hanlin Independent Director Yes
Corporation.Liu Hanlin Zhejiang Lianxin Accounting Co. Ltd. Director No
Department General
Jia Qi China Mobile Capital Holdings Co. Ltd. Yes
Manager
Jia Qi Venustech Group Inc. Director No
Beijing Haitian Ruisheng Science Technology
Jia Qi Director No
Ltd.Hangzhou Huarong Investment Management
Zheng Jieping General Manager No
Co. Ltd.Song Maoyuan Hangzhou Huaxi Information Technology Co. Supervisor No
1682024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Ltd.Incumbent or outgoing directors supervisors and senior management in the reporting period that have been imposed
administrative penalties by CSRC in the last three years
□ Applicable □Not applicable
3. Remuneration of Directors Supervisors and Senior Management
The following describes the decision-making program determination basis and actual payment of remuneration for
directors supervisors and senior management.Top management of the Company shall be evaluated by the performance commitments of senior management and the
department managers and those above shall be evaluated by their work report at the end of the year. The managers
have made business goal responsibility system in their term of office and set up the evaluation approach combining
KPI index commitments at the level of the Company and individual performance commitments. They have achieved
qualified evaluation indices meaning that they can complete their respective tasks in the latest term of office. The
Company will increase their remuneration or adopt other incentive measures as appropriate based on their
completion of goals.Remuneration of directors supervisors and senior management in the reporting period of the Company
Unit: ten thousand RMB
Total
Whether to receive
remuneration
Gen Position remuneration from
Name Age Post from the
der status related parties or
Company before
not
tax
Fu Liquan Male 58 Chairman President Incumbent 298.41 No
Wu Jun Male 53 Vice Chairman Incumbent 9.41 No
Fem
Chen Ailing 58 Director Incumbent 0 No
ale
Director Executive
Zhao Yuning Male 48 Incumbent 282.17 No
President
Yuan Lihua Male 57 Director Incumbent 0 Yes
Zhang
Male 53 Director Incumbent 191.93 No
Xiaoming
Liu Hanlin Male 62 Independent Director Incumbent 28 No
Zhang Yuli Male 60 Independent Director Incumbent 28 No
Cao Yanlong Male 50 Independent Director Incumbent 28 No
Song Fem
43 Employee Supervisor Incumbent 72.05 No
Maoyuan ale
Fem
Zheng Jieping 46 Employee Supervisor Incumbent 180.68 No
ale
Jia Qi Male 47 Supervisor Incumbent 0 Yes
Liu Ming Male 44 Senior Vice President Incumbent 233.45 No
Li Zhijie Male 50 Senior Vice President Incumbent 221.13 No
Song Ke Male 47 Senior Vice President Incumbent 215.64 No
Secretary of the Board of
Wu Jian Male 51 Directors Senior Vice Incumbent 219.2 No
President
Fem Senior Vice President
Xu Qiaofen 53 Incumbent 207.4 No
ale Chief Financial Officer
Xu Zhicheng Male 59 Senior Vice President Incumbent 230.62 No
Zhu Jiantang Male 43 Senior Vice President Incumbent 239.16 No
1692024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Chen Qiang Male 43 Senior Vice President Incumbent 284.77 No
Gao
Male 47 Senior Vice President Resigned 230.49 No
Chunshan
Total -- -- -- -- 3200.49 --
Other notes
□ Applicable □Not applicable
VI. Performance of Directors' Duties during the Reporting Period
1. The Board of Directors for this reporting period
Conference Session Date of Conference Date of Disclosure Conference Resolution
The Fourth Meeting of the Resolution of the Fourth Meeting
January 12 2024 January 13 2024
Eighth Board of Directors of the Eighth Board of Directors
The Fifth Meeting of the Resolution of the Fifth Meeting of
April 15 2024 April 16 2024
Eighth Board of Directors the Eighth Board of Directors
The Sixth Meeting of the Resolution of the Sixth Meeting of
June 19 2024 June 20 2024
Eighth Board of Directors the Eighth Board of Directors
The Seventh Meeting of
Resolution of the Seventh Meeting
the Eighth Board of August 23 2024 August 24 2024
of the Eighth Board of Directors
Directors
The Eighth Meeting of the Resolution of the Eighth Meeting
October 25 2024 October 26 2024
Eighth Board of Directors of the Eighth Board of Directors
The Ninth Meeting of the Resolution of the Ninth Meeting of
November 15 2024 November 16 2024
Eighth Board of Directors the Eighth Board of Directors
2. Attendance of directors at the meeting of the Board of Directors and the general meeting of
shareholders
Attendance of directors at the meeting of the Board of Directors and the general meeting of shareholders
Whether
Number of Number of
absent from Number of
board Number of attendance Number of
Number of board attendance
meetings to on-site of board attendance
Name of absence at meetings in of
attend attendance meetings by of board
director board person for shareholder
during the of board means of meetings by
meetings two s' general
reporting meetings telecommun entrustees
consecutive meetings
period ications
times
Fu Liquan 6 6 0 0 0 No 3
Wu Jun 6 6 0 0 0 No 3
Chen Ailing 6 6 0 0 0 No 3
Zhao
6 6 0 0 0 No 3
Yuning
Yuan Lihua 6 0 6 0 0 No 1
Zhang
6 6 0 0 0 No 0
Xiaoming
Liu Hanlin 6 5 1 0 0 No 3
Zhang Yuli 6 4 2 0 0 No 3
Cao
6 6 0 0 0 No 2
Yanlong
Explanation for failure to attend the Board of Directors in person for two consecutive times
None
1702024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
3. Objections of directors to related issues of the Company
Whether the directors challenged the Company's related issues
□ Yes □No
During the reporting period directors did not raise objections to the Company's related issues.
4. Other information on directors' performance of duties
Whether the directors' suggestions on the company were accepted
□Yes □No
Note on the acceptance or rejection of the directors‘ suggestions on company issues
During the reporting period the Company's directors strictly followed the relevant laws and regulations such as the
Shenzhen Stock Exchange Listing Rules and the Company's Articles of Association conscientiously attended the
Company's Board of Directors and general meeting of shareholders conscientiously performed their duties and put
forward constructive opinions or suggestions on the Company's development decisions. At the same time we actively
paid attention to the Company's business management information financial status major matters etc. to promote
the continuous stable and healthy development of the Company's production and operation.The independent directors were diligent and responsible actively understood the Company's operating conditions the
construction of the internal control system and the implementation of the resolutions of the Board of Directors and the
general meeting of shareholders. They focused on prudent supervision of the Company's related transactions profit
distribution plans and other matters and expressed professional opinions. They actively and effectively performed
their duties as directors safeguarded the overall interests of the Company and the legitimate rights and interests of all
shareholders especially small and medium-sized shareholders and played a positive role in the Company's
standardized stable and healthy development.VII. Performance of Duties of the Special Committee under the Board of Directors
during the Reporting Period
Specific
Numb Important
Other circumsta
er of opinions
Committee Membershi Date of fulfillme nces of
meeti Content of meetings and
Name p Conference nt of the
ngs suggestio
duties objection
held ns
(if any)
Communicate with
the audit institution on
March 25 2024
the preliminary draft
of the audit.Liu Hanlin
Review of the 2023
Chen Ailing
annual report internal
Audit Cao April 12 2024
5 control report and
Committee Yanlong
other matters.Zhang Yuli
Review of the 2024
Yuan Lihua
August 22 2024 semi-annual report
and other matters.Review the 2024 third
October 24 2024
quarter report etc.
1712024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Communicate and
December 30
review the 2024
2024
annual audit plan.Fu Liquan
Zhang Yuli
Strategy Review of the 2024
Wu Jun 1 April 12 2024
Committee development strategy
Zhao
Yuning
Cao Review and verify the
Nomination Yanlong Liu information of
1 April 12 2024
Committee Hanlin Fu candidates for senior
Liquan management.Review and
determine matters
such as remuneration
for directors
April 12 2024 supervisors and
senior management
equity incentive
Remunerati
Zhang Yuli buyback and
on and
Fu Liquan 3 cancellation etc.Appraisal
Liu Hanlin Review matters such
Committee
as the
June 18 2024 unlocking/exercise
conditions of the
equity incentive plan.Review the option
August 22 2024 price adjustment for
equity incentives.VIII. Work of the Board of Supervisors
Has the Board of Supervisors discovered any risk in the Company during the supervision in the reporting period
□ Yes □No
The Board of Supervisors had no objection to the supervisory matters in the report period.IX. Employee Situation in the Company
1. Number profession composition and educational background of the employees
Number of incumbent employees in the parent company
10595
at the end of the reporting period (person)
Number of incumbent employees in major subsidiaries at
13296
the end of the reporting period (person)
Total number of incumbent employees at the end of the
23891
reporting period (person)
Number of employees receiving salaries in current period
23891
(person)
Number of retired employees requiring the parent
6
company and major subsidiaries to bear their costs
Profession composition
Type of profession composition Number of employees for profession composition
1722024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(person)
R&D staff 12689
Sales 4805
Supply chain 4152
Management 451
Professional support staff 1794
Total 23891
Educational background
Type of educational background Number of employees (person)
Master and above 4396
Bachelor 13663
College technical secondary school 3227
Others 2605
Total 23891
2. Remuneration policies
The Company has established complete remuneration management systems and incentive mechanisms to provide the
employees with competitive remunerations in strict accordance with Labor Law Labor Contract Law and other relevant
laws and regulations departmental rules and normative documents. The Company links its remuneration system and
performance appraisal system with the business performance of the Company which fully arouses the enthusiasm of
the employees and effectively improves the executive force and responsibility consciousness of employees thus
better attracting and retaining talents and providing guarantee for sustainable stable development of the Company in
respect of human resources.
3. Training plan
The Company has been dedicated to the building of employee education and training system established the internal
lecturer management measures including new employee training and in-service employee training implemented
training credits management system improved the comprehensive quality of the Company's employees created good
learning atmosphere established learning organization and comprehensively helped employees to improve their ability
to meet challenges and reforms in the future thus providing powerful talent guarantee and intellectual support for
sustainable fast growth of the Company and achieving joint development of employees and the Company.
4. Labor outsourcing
□ Applicable □Not applicable
X. Distribution of Company Profits and Capital Reserve Conversion to Share
Capital Situation
Profit distribution policy during the reporting period especially the formulation implementation or adjustment of the
cash dividend policy.□Applicable □ Not applicable
1. The Company held the 2023 Annual General Meeting of Shareholders on May 13 2024 and reviewed and approve
d the 2023 profit distribution plan. Based on the 3274649389 shares after the Company eliminated the repurchased
shares of 19819601 shares a cash dividend of RMB 3.82 (tax included) per 10 shares would be distributed to all shar
1732024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
eholders with a total cash dividend of RMB 1250916066.60 (tax included). No bonus shares would be issued and n
o capital reserve would be converted into share capital. The remaining undistributed profit would be carried forward to t
he next year. The profit distribution plan was implemented on May 22 2024.
2. After deliberation and approval by the Fifth Meeting of the Board of Directors and the 2023 Annual General Meeting
of Shareholders the Company has formulated the "Shareholder Return Plan for the Next Three Years (2024-2026)"
which plans to distribute profits in cash each year from 2024 to 2026 not less than 30% of the net profit of that year or
the cumulative profit distributed in cash for three years shall not be less than 30% of the cumulative net profit realized
in those three years on the basis of complying with the requirements of the Company's Articles of Association on the
cash dividend ratio and provided that the Company's profitability and cash flow can meet the Company's going
concern and long-term development. (The aforementioned net profit refers to the net profit value attributable to
shareholders of the listed company in the consolidated financial statements after deducting non-recurring gains or
losses.)
3. On September 9 2024 the Company convened the second extraordinary general meeting of shareholders in 2024
to review and approve the 2024 semi-annual profit distribution plan: based on the share capital of 3272527089
shares after deducting the repurchased shares of 19819601 shares a cash dividend of RMB 1.84 (tax inclusive)
would be distributed to all shareholders for every 10 shares totaling a cash distribution of RMB 602144984.38 (tax
inclusive). No capital reserve would be converted into share capital no bonus shares would be distributed and the
remaining undistributed profit would be reserved for future distribution. The profit distribution plan was implemented on
September 20 2024.Special notes on cash dividend policies
Whether they comply with the requirements of the
Company's articles of incorporation or the resolutions of Yes
the General Meeting of Shareholders:
Whether the dividend standards and proportions are
Yes
distinct and clear:
Whether the relevant decision-making procedures and
Yes
mechanisms are complete:
Whether the independent directors performed their duties
Yes
and played their due role:
If the Company does not distribute cash dividends it
should disclose the specific reasons and the measures it N/A
intends to take to enhance the level of investor returns:
Whether the minority shareholders have the opportunity
to fully express their opinions and appeals and whether
Yes
their legitimate rights and interests have been fully
protected:
The Company has formulated the "Shareholder Return
Whether relevant conditions and procedures are Plan for the Next Three Years (2024-2026)" and the cash
compliant and transparent when the cash dividend dividend plan involved complies with relevant regulations
policies are being adjusted or changed: and the requirements of the "Articles of Association" and
has fulfilled the relevant review procedures.The company was profitable during the reporting period and the parent company had positive profits available for
distribution to shareholders but no cash dividend distribution plan was proposed.□ Applicable □Not applicable
Profit Distribution and Capital Reserve Converted to Share Capital in the Reporting Period
1742024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
□Applicable □ Not applicable
Number of bonus shares per 10 shares (shares) 0
Number of dividend payout per 10 shares (RMB) (tax
4.58
included)
Equity base of the distribution plan (shares) 3279257910
Cash dividend amount (RMB) (tax included) 1501900122.78
Amount of cash dividends distributed in other ways (such
602144984.38
as share repurchase) (RMB Note)
Total cash dividends (including other ways) (RMB) 2104045107.16
Distributable profit (RMB) 24156989231.15
Proportion of total cash dividends (including other ways)
100%
to total profit distribution
Latest cash dividend
It is difficult to distinguish at the development stage of the Company. However if there are major capital expenditure
arrangements the proportion of cash dividends in the profit distribution should be at least 20%.Detailed description of profit distribution and capital reserve conversion plan
Based on 3279257910 shares after deducting the repurchased shares (19819601 shares) the Company will
distribute a cash dividend of RMB 4.58 (tax inclusive) for every 10 shares to all shareholders and the total amount of
this cash dividend will be RMB 1501900122.78 (tax inclusive). It will not convert capital reserve into share capital or
distribute bonus shares and the remaining undistributed profit will be retained for future distribution.If the Company's share capital that enjoys the right to distribute profits changes before the implementation of the
distribution plan due to the conversion of convertible bonds share buybacks exercise of equity incentives listing of
new shares from refinancing etc. the Company will distribute the profits in accordance with the principle of
unchanged distribution ratio and based on the total share capital on the dividend registration date (shares in the
repurchase account do not participate in the distribution) and readjust the total distribution amount in accordance with
the law.Note: The amount of cash dividends distributed in other ways is the 2024 semi-annual cash dividend amount.XI. Implementation of the Company's Equity Incentive Plan Employee Stock
Ownership Plan or Other Employee Incentive Measures
□Applicable □ Not applicable
1. Equity incentive
1. On April 15 2024 the Company held the 5th meeting of the 8th Board of Directors and the 4th meeting of the 8thBoard of Supervisors at which the “Proposal on Cancellation of Some Stock Options of 2022 Stock Options andRestricted Stock Incentive Plan” and the “Proposal on Repurchase of Some Restricted Stock Options of 2022 StockOptions and Restricted Stock Incentive Plan” were deliberated and approved. Given the fact that 204 incentive
recipients have resigned and are no longer eligible for incentives the Company intends to repurchase/cancel
2134680 restricted shares that have been granted to the aforementioned resigned recipients but have not been
released from the restricted sale and 2211600 stock options that have not been exercised according to the relevant
provisions of the stock option and restricted share incentive plan in 2022. On May 13 2024 the Company held the
2023 Annual General Meeting of Shareholders at which the “Proposal on Cancellation of Some Restricted Shares of
2022 Stock Options and Restricted Stock Incentive Plan” were deliberated and approved. During the reporting period
the Company has completed the repurchase and cancellation of the aforementioned restricted shares/options.
1752024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. On June 19 2024 the Company held the 6th meeting of the 8th Board of Directors and the 5th meeting of the 8thBoard of Supervisors at which the “Proposal on Meeting the Conditions for Unlocking the Second Restricted Period of
2022 Stock Options and Restricted Stock Incentive Plan” and the “Proposal on Meeting the Conditions for Exercisingthe Second Exercise Period of 2022 Stock Options and Restricted Stock Incentive Plan” were deliberated and
approved. The conditions for the second exercise period of the 2022 Stock Option and Restricted Stock Incentive Plan
of the Company have been fulfilled with a total of 3798 incentive recipients eligible for the exercising and the number
of exercisable stock options totaling 20184927 accounting for 0.61% of the total number of shares of the Company
and the exercise price of the options is RMB 15.657/share; at the same time the conditions for unlocking the second
restriction period have been fulfilled. At the same time the conditions for the release of restricted shares for the
second restricted period have been fulfilled and 3798 incentive recipients can be released from restricted sale in this
period and 20262480 restricted shares can be unlocked from restricted sale accounting for 0.62% of the total sharecapital of the Company at present. In addition the meeting considered and adopted the “Proposal on Adjustment ofthe Exercise Price of the 2022 Stock Option and Restricted Stock Incentive Plan” adjusting the exercise price of the
Company's stock options under this incentive plan from RMB16.59 per share to RMB15.657 per share due to the
equity distributions in 2022 the first three quarters of 2023 and 2023.
3. On August 23 2024 the Company convened the Seventh Meeting of the Eighth Board of Directors and the Sixth
meeting of the Eighth Board of Supervisors where it reviewed and approved the Proposal on Adjustment of the
Exercise Price of the 2022 Stock Option and Restricted Share Incentive Plan. Due to the Company's implementation of
the semi-annual profit distribution plan and in accordance with the provisions of the Stock Option and Restricted Share
Incentive Plan (Draft Revised) for 2022 as well as the authorization from the annual general meeting of shareholders
in 2021 the exercise price of the stock options has been adjusted from 15.657 yuan per share to 15.473 yuan per
share.
4. The exercise conditions for the second exercise period of the company's 2022 stock option and restricted share
incentive plan have been met. The exercise period is from July 11 2024 to July 10 2025. The exercise method is
voluntary exercise. For details please refer to the "Indicative Announcement on the Voluntary Exercise of the Second
Exercise Period of the 2022 Stock Option and Restricted Share Incentive Plan" disclosed by the company on Juchao
Information Network on July 10 2024. As of December 31 2024 3295423 stock options had been exercised in the
second exercise period of which 3283043 stock options had been exercised in the fourth quarter of 2024.Equity incentives received by the Company's directors and senior management
□Applicable □ Not applicable
Unit: share
The Num
Num
exerc Mark Num ber of
ber of Num Num The Num
Num ise Num et ber of restri
new ber of ber of granti ber of
ber of price ber of price restri Num cted
stock vestin veste ng restri
stock of the stock at the cted ber of stock
optio g d price cted
optio veste optio end stock unloc s
ns share share of stock
ns d ns of the s ked newly
Nam grant s s restri s
Post held share held report held share grant
e ed durin durin cted held
at the s at the ing at the s in ed
durin g the g the stock at the
begin durin end perio begin this durin
g the report report s end
ning g the of the d ning perio g the
report ing ing (yuan of the
of the report perio (yuan of the d report
ing perio perio /shar perio
year ing d /shar perio ing
perio d d e) d
perio e) d perio
d
d d
1762024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(yuan
/shar
e)
Direct
or
Zhao
Exec 3264 1632 3264 4896 2448 2448
Yunin 0 0 0 16 0 8.16
utive 00 00 00 00 00 00
g
Presi
dent
Senio
Liu r Vice 2544 1272 2544 3816 1908 1908
0001608.16
Ming Presi 00 00 00 00 00 00
dent
Senio
Li r Vice 2544 1272 2544 3816 1908 1908
0001608.16
Zhijie Presi 00 00 00 00 00 00
dent
Senio
Song r Vice 2184 1092 2184 3276 1638 1638
0001608.16
Ke Presi 00 00 00 00 00 00
dent
Secre
tary
of the
Boar
d of
Wu 2544 1272 2544 3816 1908 1908
Direct 0 0 0 16 0 8.16
Jian 00 00 00 00 00 00
ors
Senio
r Vice
Presi
dent
CFO
Xu Senio
218410922184327616381638
Qiaof r Vice 0 0 0 16 0 8.16
000000000000
en Presi
dent
Senio
Zhu
r Vice 2544 1272 2544 3816 1908 1908
Jiant 0 0 0 16 0 8.16
Presi 00 00 00 00 00 00
ang
dent
Senio
Xu
r Vice 2544 1272 2544 3816 1908 1908
Zhich 0 0 0 16 0 8.16
Presi 00 00 00 00 00 00
eng
dent
Senio
Chen
r Vice 5496 2748 5496 5304 2652 2652
Qian 0 0 0 16 0 8.16
Presi 0 0 0 0 0 0
g
dent
209010452090310515521552
Total -- 0 0 -- -- 0 --
160080160840920920
Evaluation Mechanism and Incentives for Senior Management
Top management of the Company shall be evaluated by the performance commitments of senior management
and the department managers and those above shall be evaluated by their work report at the end of the year. The
managers have made business goal responsibility system in their term of office and set up the evaluation approach
1772024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
combining KPI index commitments at the level of the Company and individual performance commitments. They have
achieved qualified evaluation indices meaning that they can complete their respective tasks in the latest term of office.The Company will increase their remuneration or adopt other incentive measures as appropriate based on their
completion of goals.
2. Implementation of employee stock ownership plan
□ Applicable □Not applicable
3. Other employee incentive measures
□Applicable □ Not applicable
The Company adheres to the concept of "striving for the goal". By long-term incentives for employees based on the
equity of listed companies the Company has launched an incentive plan for employees to co-investment in specific
subsidiaries with innovated business aiming to combine the interests of the Company and employees to realize the
sustainable and healthy development of the Company and to stimulate the employees’ enthusiasm for innovation.XII. Construction and Implementation of Internal Control System during the
Reporting Period
1. Internal control construction and implementation
Under the Basic Norms for Enterprise Internal Control and its supporting guidelines and other internal control
regulatory requirements and in combination with the actual situation of the Company the Company has established a
sound internal control system and has effectively implemented it which includes the rules of procedure for the Board
of Directors the rules of procedure for the Board of Supervisors supervision and management of subsidiaries seal
management investment and financing management human resources management information system
management capital activities procurement management asset management sales and collection management
cost and expense management information system security management and information disclosure affairs
management etc. covering all business links related to financial reporting and information disclosure affairs in the
Company's business activities.The Company has established an Audit Committee under the Board of Directors to inspect and supervise the
establishment and implementation of the Company’s internal control and review the Company’s financial information
and its disclosure. The Company has established a risk management system framework that is "risk-oriented system-
based process-linked control-tooled and IT-supported" to provide good support for the realization of corporate
strategies. By identifying risks and assessing risk levels from the perspective of severity possibility and effectiveness
of existing measures the Company improves the hierarchical decision-making authorization system based on the
acceptable level of risk establishes or optimizes systems and processes promotes control activities such as process
IT construction and improves process systems to comprehensively respond to internal and external risks that may be
foreseen in production and operation activities. The Company emphasizes the cultivation of risk awareness and
regularly organizes risk management training for all departments so as to strengthen the Company's risk alert and
handling capabilities and develop risk control awareness among all staff.
1782024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
According to the identification of major deficiencies in the Company's internal control over financial reporting as of
the base date of the internal control evaluation report there were no major deficiencies in the internal control over
financial reporting and the Company has maintained effective internal control over financial reporting in all material
aspects under the requirements of the enterprise internal control standard system and relevant regulations; according
to the identification of major deficiencies in the Company's internal control over non-financial reporting as of the base
date of the internal control evaluation report no major deficiencies in the internal control over non-financial reporting
were found.
2. Details of material deficiencies in internal control found during the reporting period
□ Yes □No
XIII. The Company's Management and Control of Subsidiaries during the Reporting
Period
N/A
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal control evaluation report
Date of full-text disclosure for internal
March 29 2025
control assessment report
Full-text disclosure index for internal
http://www.cninfo.com.cn
control assessment report
Percentage of total asset from units
included in the assessment out of the
100.00%
total asset from the company's
consolidated financial statements
The proportion of operating income
of parties included in the assessment
to the operating income from the 100.00%
Company's consolidated financial
statements
Defect identification criteria
Category Financial Report Non-financial reports
Signs of material weakness in financial reporting The identification of non-financial report defects
include: is mainly determined by the extent of their
(1) Corrupt practices of directors supervisors and influence on validity of business process and the
senior managers of the Company; probability of occurrence.
(2) Material misstatements in the current Financial If the possibility of deficiencies occurring is low it
Report discovered by the Certified Public will reduce work efficiency or effectiveness
Qualitative Accountants but not recognized by the internal increase the uncertainty of the effectiveness or
standards control of the Company; cause it to deviate from the expected goal which
(3) Invalid internal control and supervision of the is referred to as a general deficiency.
External Financial Report and the Financial Report If the possibility of a deficiency occurring is high
of the Company by the Audit Committee and the it will significantly reduce work efficiency or
Audit Department. effect or significantly increase the uncertainty of
Signs of significant deficiencies in financial the effect or cause it to significantly deviate from
reporting include: the expected goal which is an important
1792024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Failure to select and apply the accounting deficiency; if the possibility of a deficiency
policies in accordance with the accepted occurring is high it will seriously reduce work
accounting standards; efficiency or effect or seriously increase the
(2) Failure to establish anti-fraud procedure and uncertainty of the effect or cause it to seriously
control measures; deviate from the expected goal which is a major
(3) No appropriate control mechanism established deficiency.
or appropriate compensating control implemented Signs of major deficiencies in internal control
for accounting treatment of irregular or special over non-financial reporting include:
transactions; (1) The Company's decision-making process is
(4) There are one or more defects in the control of unscientific with decisions being wrong which
final financial reporting process and no leads to the failure to achieve the expected
reasonable guarantee that the financial goals after the merger and acquisition.statements can achieve the goal of being true and (2) Violation of national laws and regulations
complete. resulting in investigation by relevant
General deficiencies refer to the control departments and regulatory authority.deficiencies other than the material deficiencies (3) Management personnel or key technical
and important deficiencies described above. personnel are losing out.
(4) Negative news frequently appears in the
media.
(5) The results of the internal control evaluation
especially major deficiencies or important
deficiencies have not been rectified.
(6) Important businesses lack institutional control
or the institutional system fails systematically.The quantitative criteria is based on operating
Losses which have been or may be incurred due income and total assets. Losses which have
to internal control deficiencies and are related to been or may be incurred due to internal control
the profit statement should be measured by the deficiencies and are related to the profit
operating income indicators. statement should be measured by the operating
If the misreporting amount in the financial income indicators If the misreporting amount in
statement which may be incurred by the the financial statement which may be incurred
deficiencies alone or together with other by the deficiencies alone or together with other
deficiencies is less than 0.5% of the operating deficiencies is less than 0.5% of the operating
income it is considered as a general deficiency; If income it is considered as a general deficiency;
it exceeds 0.5% of the operating income but is If it exceeds 0.5% of the operating income but is
less than 1% then it is an important deficiency; If less than 1% then it is an important deficiency;
Quantitative it exceeds 1% of the operating income then it is If it exceeds 1% of the operating income then it
standards considered as a major deficiency. is considered as a major deficiency.Losses which have been or may be incurred due Losses which have been or may be incurred due
to internal control deficiencies and are related to to internal control deficiencies and are related to
the asset management should be measured by the asset management should be measured by
the total asset indicators. If the misstated amount the total asset indicators. If the misstated
in the financial statement which may be incurred amount in the financial statement which may be
by the deficiency alone or together with other incurred by the deficiency alone or together with
deficiencies is less than 0.5% of the total asset it other deficiencies is less than 0.5% of the total
is considered as a general deficiency; If it exceeds asset it is considered as a general deficiency; If
0.5% of the total asset but less than 1% it is an it exceeds 0.5% of the total asset but is less than
important deficiency; If it exceeds 1% of the total 1% then it is considered as an important
assetit is considered as a major deficiency. deficiency; If it exceeds 1% of the total asset it
is considered as a major deficiency.Number of material weakness in
0
financial reports
Number of material weakness in non-
0
financial reports
Number of significant deficiency in
0
financial reports
1802024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Number of significant deficiency in
0
non-financial report
2. Internal control audit report
□Applicable □ Not applicable
Deliberations Paragraph in the Internal Control Audit Report
We believe that Dahua Technology maintained effective internal control over financial reporting in all material aspects
under the Basic Standards for Enterprise Internal Control and relevant regulations as of December 31 2024.Disclosure in the Internal Control Audit Report Disclosure
Date of full-text disclosure for the internal control audit
March 29 2025
report
Full-text disclosure index for the internal control audit
http://www.cninfo.com.cn
report
Opinion type in the internal control audit report Standard unqualified opinion
Whether there are material deficiencies in the non-
No
financial reports
Whether the accounting firm has issued an internal control audit report with modified opinions
□ Yes □No
Whether the opinions in the internal control audit report issued by the accounting firm are consistent with those in the
self-evaluation report issued by the Board of Directors
□Yes □No
XV. Rectification of Self-Examination Issues in the Special Action on Corporate
Governance of Listed Companies
None
1812024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section V Environmental and Social Responsibilities
I. Major Environmental Protection Issues
Whether the listed company and its subsidiaries belong to the key pollutant discharging units announced by the
environmental protection department
□ Yes □No
Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable □ Not applicable
Dahua Technology regards sustainable development as one of its core strategies is committed to promoting the
green transformation of the industrial chain pays attention to the carbon footprint of its own operations and during the
reporting period implemented several energy-saving and consumption-reduction measures all of which have achieved
remarkable results.In terms of green R&D Dahua Technology has developed a green product management platform (GPM) to
achieve intelligent environmental management of the entire product lifecycle and has created a product carbon
footprint accounting system to accurately assess carbon emissions and promote low-carbon product R&D and green
procurement. The Company strictly abides by environmental protection standards such as RoHS and REACH to
ensure the safety and compliance of raw materials. It also reduces the use of disposable plastics and improves
logistics efficiency through miniaturized packaging design application of environmentally friendly packaging materials
and logistics packaging optimization. It also uses innovative technologies to reduce material waste and lower carbon
emissions.In terms of product applications Dahua Technology is actively implementing carbon reduction goals through the
research and development of clean technologies and smart products. The Company has developed solar-powered
systems and low power consumption cameras promoting the use of clean energy to reduce energy consumption and
extend the service life of devices. Charging piles support the use of clean energy and load balancing technology to
improve energy efficiency. Smart power products integrate energy consumption monitoring and management functions
helping customers achieve refined energy management and reduce carbon emissions. The low-carbon attributes of
these products have been recognized by external authoritative organizations and they have obtained multiple green
certifications including Environmental Protection Product Certification Environmental Labeling Product Certification
and Type II Environmental Labeling Certification assisting customers and consumers in jointly moving towards a low-
carbon future.In terms of energy resource utilization Dahua Technology has significantly improved resource utilization
efficiency through systematic carbon reduction measures. The Company optimizes its energy structure through energy
consumption monitoring platforms and clean energy projects such as outsourcing rooftop photovoltaic and carport
photovoltaic projects. At the same time we promote electronic signing platforms integrated logistics labels and green
warehousing models to further reduced energy and resource usage. In addition we deploy energy-saving technologies
carry out environmental protection training and promote paperless office to comprehensively enhance employees'
awareness of green office and build a smart efficient and low-carbon office environment.
1822024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
By conducting climate risk identification Dahua Technology more accurately grasps the challenges and
opportunities brought about by policy technology and market changes aims at the direction of low-carbon
transformation and provides a clear path for achieving carbon reduction goals. In addition Dahua Technology has
systematically sorted out the organizational boundaries of carbon emissions identified the main sources of emissions
and obtained a carbon inventory certificate providing a scientific basis for the Company’s emission reduction strategy
formulation and carbon neutrality goal achievement.Through green R&D clean technology innovation and systematic energy conservation and consumption
reduction Dahua Technology significantly improved resource utilization efficiency reduced its own operational carbon
emissions in 2024 helping the industry's green transformation and contributing to global sustainable development
goals.II. Social Responsibilities
Report published on the same day on the Juchao Information Network (For details see the
Company's 2024 Environmental Social and Governancewww.cninfo.com.cn).III. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural
Revitalization
The Company has not carried out targeted poverty alleviation and rural revitalization work during the reporting period.
1832024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VI Significant Events
I. Performance of Commitments
1. Commitments made by the Company's controlling sharehoders shareholders related
parties purchasers and purchasing companies and have been fulfilled during the reporting
period and those that have not been fulfilled by the end of the reporting period
□Applicable □ Not applicable
Perfor
Party making Commitment
Commitments Content Time Term manc
commitments Type
e
The number of shares transferred
each year during his/her term of
service shall not exceed 25
percent of the total number of
shares he/she holds in the In
Commitments
Company; he/she shall not norm
made during Fu Liquan Commitment
transfer his/her shares in the 15 July Long- al
initial public Chen Ailing on restricted
Company within half a year after 2007 term perfor
offerings or Wu Jun shares
he/she leaves the Company; manc
refinancing
within the next twelve months the e
number of shares sold through
the stock exchange listing
transactions shall not exceed 50%
of the total shares he/she holds.In
Commitments
Commitment to the effective norm
made during All directors
Other implementation of measures for March 26 Long- al
initial public and senior
commitments compensating the returns of non- 2021 term perfor
offerings or management
public offering of shares manc
refinancing
e
In
Commitments
Commitment to the effective norm
made during
Fu Liquan Other implementation of measures for March 26 Long- al
initial public
Chen Ailing commitments compensating the returns of non- 2021 term perfor
offerings or
public offering of shares manc
refinancing
e
Within 36 months from the date of
completion of Dahua Technology's
issuance of shares to specific
objects (i.e. the first day of listing
of the newly added shares) the
In
Commitments Dahua Technology shares
China Mobile norm
made during Commitment subscribed by the Company in 36
Communicatio April 14 al
initial public on restricted this offering shall not be mont
ns Group Co. 2023 perfor
offerings or shares transferred in any way nor shall hs
Ltd. manc
refinancing Dahua Technology conduct a
e
share buyback for such shares;
after the completion of this
issuance the Dahua Technology
shares obtained by the Company
through this issuance due to
1842024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua Technology's bonus
shares share capital increase
etc. shall also comply with the
above agreement.
(1) He/she will not directly engage
in operational activities that
constitute horizontal competition
with the stock company's
business; (2) for companies
he/she held or indirectly held
Other he/she will fulfill the obligations In
commitments under this commitment through norm
Commitment
to minority Fu Liquan agencies and personnel (including 30 June Long- al
on horizontal
shareholders Chen Ailing but not limited to directors and 2007 term perfor
competition
of the managers); (3) if the stock manc
Company company further expands its e
range of products and business
scope he/she and the company
held by him/her will not compete
with the expanded range of
products or businesses of the
stock company.Whether the commitment is fulfilled on time Yes
Where the commitment is overdue the specific
reasons for not completing the performance and
N/A
the following work plan shall be explained in
detail
2. If there is a profit forecast for the Company's assets or projects and the reporting period is
still within the profit forecast period the Company shall make an explanation on the fulfillment
and its reasons
□ Applicable □Not applicable
II. Non-operational capital occupation over listed companies by controlling
shareholders and their related parties
□ Applicable □Not applicable
During the reporting period there is no non-operational capital occupation over listed companies by controlling
shareholders and their related parties.III. Illegal external guarantees
□ Applicable □Not applicable
No illegal external guarantees during the reporting period.IV. Statement by the Board of Directors on the recent "Non-Standard Audit Report"
related situation
□ Applicable □Not applicable
1852024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
V. Explanations Made by the Board of Directors the Board of Supervisors and
Independent Directors (If Any) on the "Non-standard Audit Report" from the
Accounting Firm during the Reporting Period
□ Applicable □Not applicable
VI. Changes in Accounting Policies Accounting Estimates or Corrections of Major
Accounting Errors Compared with the Previous Year's Financial Report
□Applicable □ Not applicable
For details on changes in the Company's accounting policies and accounting methods during the reporting period
please see "Section 10 Financial Report/V. Significant Accounting Policies and Accounting Estimates/38. Changes in
Significant Accounting Policies and Accounting Estimates".VII. Changes in the Scope of Consolidated Financial Statements Compared with
the Previous Year's Financial Report
□Applicable □ Not applicable
(1) In the current period the Company founded a total of 14 domestic and overseas subsidiaries through investment
establishment and other means including Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co. Ltd.Shandong Dahua Digital Intelligence Technology Co. Ltd. Fujian Dahua Qingchuang Digital Technology Co. Ltd.Jilin Dahua Zhilian Technology Co. Ltd. Zhengzhou Airport Economy Zone Huaao Technology Co. Ltd. Hainan
Dahua Huizhi Technology Co. Ltd. PT IMOU TEKNOLOGI INDONESIA PT IMOU INDONESIA SENANTIASA Hirige
Technology Malaysia Sdn. Bhd. Dahua Technology Egypt LLC DAHUA TECHNOLOGY AUH FOR SECURITY &
SURVEILLANCE - SOLE PROPRIETORSHIP L.L.C. DaHua Ideal Tech and the enterprises it controls. The above
subsidiaries were included in the scope of consolidation in the current period.
(2) Dahua Technology USA Inc. a subsidiary of the Company was transferred during the current period and is no
longer included in the consolidation scope from the date of transfer.
(3) The Company's subsidiaries Yunnan Zhili Technology Co. Ltd. and Wuhu Huajian Technology Co. Ltd. were
written off in the current period and they will be no longer included in the scope of consolidation as of the date of write-
off.VIII. Appointment and Dismissal of Accounting Firms
Currently appointed accounting firms
BDO China Shu Lun Pan CPAs (special general
Names of domestic accounting firms
partnership)
Remuneration to domestic accounting firms (Unit: ten
200
thousand yuan)
Years of continuous audit service of domestic accounting
21
firms
Names of Certified Public Accountants from domestic
Du Na Zhang Junhui
accounting firms
Du Na has been in service for 2 consecutive years and
The continuous period of audit service for certified public
Zhang Junhui has been in service for 5 consecutive
accountants in domestic accounting firms
years.
1862024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Whether to reappoint accounting firms for current period
□ Yes □No
Appointment of accounting firms financial advisers or sponsors for internal control auditing
□Applicable □ Not applicable
In 2024 the Company hired BDO China Shu Lun Pan CPAs (Special General Partnership) as its internal control audit
accounting firm and paid a total of RMB 400000 in internal control audit fees during the period; Guosen Securities
Co. Ltd. is the sponsor that continues to perform supervisory responsibilities.IX. Suspension of Listing and Termination of Listing after Disclosure of the Annual
Report
□ Applicable □Not applicable
X. Bankruptcy Reorganization Matters
□ Applicable □Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.XI. Significant Lawsuits and Arbitration Matters
□ Applicable □Not applicable
There is no major lawsuit or arbitration during this reporting period.XII. Penalties and Rectification
□ Applicable □Not applicable
No such cases as punishment or rectification during the reporting period.XIII. Integrity of the Company Its Controlling Shareholders and Actual Controllers
□ Applicable □Not applicable
XIV. Significant Related-Party Transactions
1. Related transactions relevant to daily operations
□ Applicable □Not applicable
No such case as significant related-party transactions connected with daily operations.
2. Related transactions in acquisition or sale of assets or equities
□ Applicable □Not applicable
No such case as related significant transactions in acquisition or sale of assets or equities in the reporting period.
1872024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
3. Significant related-party transactions arising from joint investments on external parties
□ Applicable □Not applicable
No such case as significant related-party transactions involving joint external investments.
4. Related-party creditor's rights and debts
□ Applicable □Not applicable
No such case as related credits and debts during the reporting period.
5. Transactions with related financial companies
□ Applicable □Not applicable
No deposit loan credit or other financial business between the Company and the related financial company and the
related parties.
6. Transactions between the financial company controlled by the Company and the related
parties
□ Applicable □Not applicable
There are no deposit loan credit or other financial business between the financial company controlled by the
Company and the related parties.
7. Other significant related-party transactions
□Applicable □ Not applicable
On April 15 2024 the Company held the Fifth Meeting of the Eighth Board of Directors and reviewed and
approved the "Proposal on the Forecast of Routine Related Transactions in 2024". Based on business development
and daily operating needs the Company and its subsidiaries estimate that the total amount of daily related
transactions with various related parties in 2024 will be RMB 1688.94 million (excluding tax).Website for disclosing the interim report on significant related-party transactions
Announcement name Disclosure date Website for the disclosure
Announcement on the forecast of daily
April 16 2024 http://www.cninfo.com.cn
related-party transactions for 2024
XV. Significant Contracts and Their Performance
1. Matters on trusteeship contracting and leasehold
(1) Matters on trusteeship
□ Applicable □Not applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable □Not applicable
No such case as contracting during the reporting period.
1882024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Leasing
□Applicable □ Not applicable
Explanations on leases
During the reporting period some of the Company's own real estate properties and devices were used for rental and
there are no other leases of major property except for the leased real estate properties used for office warehouse and
production workshops.Cases that brought the profit and loss accounted for more than 10% of the Company's total profit during the reporting
period
□ Applicable □Not applicable
No such leases that brought the profit and loss accounted for more than 10% of the Company's total profit during the
reporting period.
2. Significant guarantees
□Applicable □ Not applicable
Unit: ten thousand RMB
External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries)
Announce
ment date Guaran
of Actual Actual Type of tee for
Guarante Due
Guaranteed party disclosure occurrence guarantee guarant Term of guarantee related
e amount or not
of the date amount ee parties
guarantee or not
cap
Total amount of
Total amount of guarantees external guarantees
approved during the reporting actually occurred
period (A1) during the reporting
period (A2)
Total balance of
Total amount of external guarantees
external guarantees at
approved by the end of the
the end of the reporting
reporting period (A3)
period (A4)
Company's guarantees to subsidiaries
Announce
ment date Guaran
of Actual Actual Type of tee for
Guarante Due
Guaranteed party disclosure occurrence guarantee guarant Term of guarantee related
e amount or not
of the date amount ee parties
guarantee or not
cap
Joint
liability 2020.04.07-
2020.04.07 53000.00 Yes No
guarant 2024.03.31
ee
Joint Three years after
liability the maturity of the
2021.02.04 100000.00 Yes No
Zhejiang Dahua guarant debts in the
April 16 832500.Vision Technology ee master contract
202400
Co. Ltd. From the effective
date of the
Joint
Commitment
liability
2023.06.09 40000.00 Letter to three Yes No
guarant
years after the
ee
maturity date of
each loan or other
1892024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
financing under
the Credit
Agreement or of
the accounts
receivable claims
granted by the
Hangzhou Branch
of China
Merchants Bank
or the advance
date of each
advance within
the credit
extension period
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 20000.00 Yes No
guarant discounted by the
ee Hangzhou Branch
of China
Merchants Bank
within the credit
extension period
Three years from
Joint the next day of
liability ICBC Qingchun
2023.11.20 20000.00 Yes No
guarant Sub-branch's
ee external payment
commitment
Joint Two years after
liability the maturity of the
10/13/2017 22000.00 No No
guarant debts in the
ee master contract
Joint Two years after
28753.60
liability the maturity of the
2018.09.21 (USD 40 No No
guarant debts in the
million)
ee master contract
Joint Five years upon
liability expiration of debt
9/1/2020 30000.00 No No
guarant period of master
ee contract
Joint Three years after
liability the maturity of the
2021.07.26 44000.00 Yes No
guarant debts in the
ee master contract
Joint Three years after
liability the maturity of the
2021.10.20 20000.00 Yes No
guarant debts in the
ee master contract
Joint Three years after
liability the maturity of the
2022.07.22 20000.00 No No
guarant debts in the
ee master contract
Joint
liability 2022.09.19-
2022.09.19 60000.00 Yes No
guarant 2024.09.18
ee
From the date of
Joint expiration of the
liability performance
2023.07.24 40000.00 No No
guarant period of each
ee debt in the master
contract until three
1902024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
years after the
date of expiration
of the
performance
period of the last
due master debt
under all master
contracts
Three years from
the effective date
of the Maximum
Amount
Joint Guarantee
liability Contract to the
2023.07.25 50000.00 Yes No
guarant expiration date of
ee the performance
period of each
debt under the
Credit Business
Agreement
Calculated
separately on the
basis of a single
credit business
handled by Dahua
Vision Technology
for the debtor i.e.Joint from the date of
liability signing of the
2023.09.26 90000.00 No No
guarant master contract
ee for a single credit
business to three
years after the
expiration date of
the debtor's debt
performance
period under such
master contract
Three years from
the expiration date
Joint
of the debtor's
liability
2023.09.26 33000.00 performance No No
guarant
period as agreed
ee
in the master
claim contract
Three years from
the next day after
Joint
the expiry date of
liability
2024.03.01 100000.00 each type of No No
guarant
financing business
ee
under the master
contract
Two years from
the expiration date
Joint
of the debtor's
liability
2024.04.01 53000.00 performance No No
guarant
period as agreed
ee
in the master
contract
From the effective
date of the
Joint Commitment
liability Letter to three
2024.06.07 40000.00 No No
guarant years after the
ee maturity date of
each loan or other
financing under
1912024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
the Credit
Agreement or of
the accounts
receivable claims
granted by the
Hangzhou Branch
of China
Merchants Bank
or the advance
date of each
advance within
the credit
extension period
Three years from
the expiration date
Joint
of the debtor's
liability
2024.07.25 49500.00 performance No No
guarant
period as agreed
ee
in each specific
financing contract
The guarantee
period is three
years from the
effective date of
the Maximum
Joint Amount
liability Guarantee
2024.08.16 50000.00 No No
guarant Contract until the
ee expiration date of
the performance
period of each
debt under the
Credit Business
Agreement.The guarantee
period is from the
effective date of
the specific
business credit
contract to three
Joint
years after the
liability
2024.09.19 68000.00 expiration of the No No
guarant
debt performance
ee
period stipulated
in the specific
business credit
contract (including
early maturity of
the debt).Three years from
the expiration date
Joint
of the debtor's
liability
2024.12.13 20000.00 performance No No
guarant
period as agreed
ee
in the master
contract.From the effective
date of the
Commitment
Letter to three
Joint
years after the
Zhejiang Dahua April 16 277500. liability
2023.06.09 16000.00 maturity date of Yes No
Zhilian Co. Ltd. 2024 00 guarant
each loan or other
ee
financing under
the Credit
Agreement or of
the accounts
1922024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
receivable claims
granted by the
Hangzhou Branch
of China
Merchants Bank
or the advance
date of each
advance within
the credit
extension period
Joint Two years after
liability the maturity of the
2020.09.24 30000.00 Yes No
guarant debts in the
ee master contract
Joint
liability 2023.06.19-
2023.06.19 12000.00 Yes No
guarant 2024.06.18
ee
Joint
liability 2023.06.19-
2023.06.19 35000.00 Yes No
guarant 2024.06.18
ee
Joint Three years after
liability the maturity of the
2021.07.26 16500.00 Yes No
guarant debts in the
ee master contract
Joint
3594.20
liability 2021.12.03-
2021.12.03 (USD 5 Yes No
guarant 2024.12.02
million)
ee
Joint
liability 2022.08.25-
2022.08.25 20000.00 Yes No
guarant 2024.09.27
ee
Joint
liability 2024.09.28-
2024.09.28 20000.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.09.19-
2022.09.19 15000.00 Yes No
guarant 2024.09.18
ee
Joint
8985.50
liability 2023.7.13-
2023.07.13 (USD 12.5 Yes No
guarant 2024.7.12
million)
ee
From the date of
expiration of the
performance
period of each
debt in the master
Joint contract until three
liability years after the
2023.07.24 50000.00 Yes No
guarant date of expiration
ee of the
performance
period of the last
due master debt
under all master
contracts
One year from the
Joint expiration date of
liability the debtor's
2024.01.02 1000.00 Yes No
guarant performance
ee period as agreed
in the master
1932024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
contract
Two years from
the expiration date
Joint
of the debtor's
liability
2024.03.29 30000.00 performance No No
guarant
period as agreed
ee
in the master
contract
From the effective
date of the
Commitment
Letter to three
years after the
maturity date of
each loan or other
financing under
the Credit
Joint
Agreement or of
liability
2024.06.07 16000.00 the accounts No No
guarant
receivable claims
ee
granted by the
Hangzhou Branch
of China
Merchants Bank
or the advance
date of each
advance within
the credit
extension period
The guarantee
period starts from
the expiration date
of the
performance
period of each
principal debt
Joint
under the master
liability
2024.07.25 60000.00 contract and ends No No
guarant
three years after
ee
the expiration date
of the
performance
period of the last
due principal debt
under all master
contracts.Three years from
the expiration date
Joint
of the debtor's
liability
2024.07.25 16500.00 performance No No
guarant
period as agreed
ee
in each specific
financing contract
The guarantee
period is from the
effective date of
the specific
Joint business credit
liability contract to three
2024.09.19 15000.00 No No
guarant years after the
ee expiration of the
debt performance
period stipulated
in the specific
business credit
1942024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
contract (including
early maturity of
the debt).Three years from
the expiration date
Joint
of the debtor's
liability
2024.09.26 10000.00 performance No No
guarant
period as agreed
ee
in the master
contract.From the effective
date of the
Commitment
Letter to three
years after the
maturity date of
each loan or other
financing under
the Credit
Joint
Agreement or of
liability
2023.06.09 4000.00 the accounts Yes No
guarant
receivable claims
ee
granted by the
Hangzhou Branch
of China
Merchants Bank
or the advance
date of each
advance within
the credit
extension period
Joint Two years after
liability the maturity of the
2019.08.30 1000.00 Yes No
guarant debts in the
ee master contract
Zhejiang Dahua Joint
April 16 30000.0
System Engineering liability 2022.08.25-
2024 0 2022.08.25 500.00 Yes No
Co. Ltd. guarant 2024.09.27
ee
Joint
liability 2024.09.28-
2024.09.28 500.00 No No
guarant 2025.08.25
ee
Three years from
the effective date
of the Maximum
Amount
Joint Guarantee
liability Contract to the
2023.07.25 5000.00 Yes No
guarant expiration date of
ee the performance
period of each
debt under the
Credit Business
Agreement
One year from the
signing of the
Joint project contract or
liability 6 months of stable
2023.09.11 160.21 Yes No
guarant operation of the
ee system on line
(whichever is
later)
1952024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
From the effective
date of the
Commitment
Letter to three
years after the
maturity date of
each loan or other
financing under
the Credit
Joint
Agreement or of
liability
2024.06.10 4000.00 the accounts No No
guarant
receivable claims
ee
granted by the
Hangzhou Branch
of China
Merchants Bank
or the advance
date of each
advance within
the credit
extension period
The guarantee
period is three
years from the
effective date of
the Maximum
Joint Amount
liability Guarantee
2024.08.16 5000.00 No No
guarant Contract until the
ee expiration date of
the performance
period of each
debt under the
Credit Business
Agreement.Two years from
the expiration date
Joint
of the debtor's
liability
2024.09.03 1000.00 performance No No
guarant
period as agreed
ee
in the master
contract
Joint
1437.68
liability 2023.04.21-
2023.04.21 (USD 2 Yes No
guarant 2024.04.21
million)
Dahua Technology April 16 70000.0 ee
(HK) Limited 2024 0 Joint
2156.52
liability 2024.4.22-
2024.04.22 (USD 3 No No
guarant 2025.4.22
million)
ee
Joint
718.84 (USD liability 2023.10.18-
2023.10.18 Yes No
1 million) guarant 2024.10.20
DAHUA
April 16 ee
TECHNOLOGY 3000.00
2024 Joint
MEXICO S.A. DE C.V
718.84 (USD liability 2024.10.18-
2024.10.18 No No
1 million) guarant 2025.10.17
ee
Joint Two years after
liability the maturity of the
2019.08.30 5000.00 Yes No
guarant debts in the
Hangzhou Huacheng
April 16 17000.0 ee master contract
Network Technology
2024 0 Joint Three years after
Co. Ltd.liability the maturity of the
2021.07.26 5500.00 Yes No
guarant debts in the
ee master contract
1962024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Joint
liability 2022.08.25-
2022.08.25 6500.00 Yes No
guarant 2024.09.27
ee
Joint August 12 2020 -
1052.87
liability Signature of
2020.08.12 (1.16 million No No
guarant notice of
pounds)
Dahua Technology April 16 ee termination
4000.00
UK Limited 2024 Joint
718.84 (USD liability
2024.03.04 2024.3.4-2025.3.3 No No
1 million) guarant
ee
Joint Three years after
1437.68
liability the maturity of the
2022.05.16 (USD 2 Yes No
guarant debts in the
million)
ee master contract
Joint Three years after
liability the maturity of the
2022.04.29 1000.00 No No
guarant debts in the
ee master contract
Joint
liability 2022.08.25-
2022.08.25 200.00 Yes No
guarant 2024.09.27
ee
Joint
liability 2024.09.28-
2024.09.28 200.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.10.21-
Zhejiang Huayixin April 16 2022.10.21 800.00 Yes No
4500.00 guarant 2024.09.18
Technology Co. Ltd. 2024
ee
From the effective
date of the
commitment letter
to three years
after the maturity
date of each loan
or other financing
Joint
under the Credit
liability
2024.09.26 1000.00 Agreement or of No No
guarant
the creditor's
ee
rights granted by
the Hangzhou
Branch of China
Merchants Bank
or the advance
date of each
advance.From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 2000.00 Yes No
guarant discounted by the
ee Hangzhou Branch
Zhejiang Fengshi April 16 16000.0 of China
Technology Co. Ltd. 2024 0 Merchants Bank
within the credit
extension period
Joint
liability 2022.08.25-
2022.08.25 10000.00 Yes No
guarant 2024.09.27
ee
2024.09.28 10000.00 Joint 2024.09.28- No No
1972024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
liability 2025.08.25
guarant
ee
Joint
liability 2022.10.21-
2022.10.21 2000.00 Yes No
guarant 2024.09.18
ee
From the effective
date of the
commitment letter
to three years
after the maturity
date of each loan
or other financing
Joint
under the Credit
liability
2024.09.03 3000.00 Agreement or of No No
guarant
the creditor's
ee
rights granted by
the Hangzhou
Branch of China
Merchants Bank
or the advances
date of each
advance;
The guarantee
period is from the
effective date of
the specific
business credit
contract to three
Joint
years after the
liability
2024.09.19 1500.00 expiration of the No No
guarant
debt performance
ee
period stipulated
in the specific
business credit
contract (including
early maturity of
the debt).Joint
liability 2022.08.25-
2022.08.25 800.00 Yes No
guarant 2024.09.27
ee
Joint
liability 2024.09.28-
2024.09.28 800.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.10.21-
2022.10.21 1500.00 Yes No
guarant 2024.09.18
ee
The guarantee
Jiangsu Huaruipin April 16
3500.00 period is from the
Technology Co. Ltd. 2024
effective date of
the specific
business credit
contract to three
Joint
years after the
liability
2024.09.19 1500.00 expiration of the No No
guarant
debt performance
ee
period stipulated
in the specific
business credit
contract (including
early maturity of
the debt).
1982024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Joint
liability 2022.08.25-
2022.08.25 200.00 Yes No
guarant 2024.09.27
ee
Joint
Zhejiang Huaxiao April 16 liability 2024.09.28-
1600.00 2024.09.28 200.00 No No
Technology Co. Ltd. 2024 guarant 2025.08.25
ee
Joint
liability 2022.10.21-
2022.10.21 800.00 Yes No
guarant 2024.09.18
ee
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 5000.00 Yes No
guarant discounted by the
ee Hangzhou Branch
of China
Merchants Bank
within the credit
extension period
Joint
liability 2022.08.25-
2022.08.25 10000.00 Yes No
guarant 2024.09.27
ee
Joint
liability 2022.10.21-
2022.10.21 2500.00 Yes No
guarant 2024.09.18
ee
The guarantee
period is from the
effective date of
the specific
business credit
contract to three
Joint
Xi'an Dahua Zhilian April 16 20000.0 years after the
liability
Technology Co. Ltd. 2024 0 2024.09.19 2000.00 expiration of the No No
guarant
debt performance
ee
period stipulated
in the specific
business credit
contract (including
early maturity of
the debt).Joint
liability 2024.09.28-
2024.09.28 10000.00 No No
guarant 2025.08.25
ee
From the effective
date of the
commitment letter
to three years
after the maturity
date of each loan
Joint
or other financing
liability
2024.12.06 3000.00 under the Credit No No
guarant
Agreement or of
ee
the creditor's
rights granted by
the Xi'an Branch
of China
Merchants Bank
or the advance
1992024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
date of each
advance within
the credit
extension period;
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 5000.00 Yes No
guarant discounted by the
ee Hangzhou Branch
of China
Merchants Bank
within the credit
Zhengzhou Dahua
April 16 10000.0 extension period
Zhian Information
2024 0 Joint
Technology Co. Ltd.liability 2022.08.25-
2022.08.25 3000.00 Yes No
guarant 2024.09.27
ee
Joint
liability 2024.09.28-
2024.09.28 3000.00 No No
guarant 2025.08.25
ee
Joint
liability 2024.07.16-
2024.07.16 5000.00 No No
guarant 2025.06.09
ee
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 8000.00 Yes No
Chengdu Dahua guarant discounted by the
Zhian Information April 16 15000.0 ee Hangzhou Branch
Technology Service 2024 0 of China
Co. Ltd. Merchants Bank
within the credit
extension period
Joint
liability 2024.07.16-
2024.07.16 8000.00 No No
guarant 2025.06.09
ee
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 1000.00 Yes No
guarant discounted by the
ee Hangzhou Branch
of China
Merchants Bank
Changsha Dahua April 16
8000.00 within the credit
Technology Co. Ltd. 2024 extension period
Joint
liability 2022.08.25-
2022.08.25 3000.00 Yes No
guarant 2024.09.27
ee
Joint
liability 2024.09.28-
2024.09.28 5000.00 No No
guarant 2025.08.25
ee
2022.10.21 2000.00 Joint 2022.10.21- Yes No
2002024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
liability 2024.09.18
guarant
ee
The guarantee
period is from the
effective date of
the specific
business credit
contract to three
Joint
years after the
liability
2024.09.19 2000.00 expiration of the No No
guarant
debt performance
ee
period stipulated
in the specific
business credit
contract (including
early maturity of
the debt).Joint
liability 2022.08.25-
2022.08.25 500.00 Yes No
guarant 2024.09.27
Zhejiang Pixfra April 16 ee
1000.00
Technology Co. Ltd. 2024 Joint
liability 2024.09.28-
2024.09.28 500.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.08.25-
2022.08.25 200.00 Yes No
guarant 2024.09.27
Zhejiang Huafei
April 16 ee
Intelligent Technology 500.00
2024 Joint
CO. LTD.liability 2024.09.28-
2024.09.28 200.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.08.25-
2022.08.25 200.00 Yes No
guarant 2024.09.27
Zhejiang Huajian April 16 ee
1000.00
Technology Co. Ltd. 2024 Joint
liability 2024.09.28-
2024.09.28 200.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.08.25-
2022.08.25 200.00 Yes No
guarant 2024.09.27
Hangzhou Xiaohua
April 16 ee
Technology CO. 200.00
2024 Joint
LTD.liability 2024.09.28-
2024.09.28 200.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.08.25-
2022.08.25 500.00 Yes No
Zhejiang Dahua guarant 2024.09.27
Security Network April 16 ee
500.00
Operation Service 2024 Joint
Co. Ltd. liability 2024.09.28-
2024.09.28 500.00 No No
guarant 2025.08.25
ee
Joint
Dahua Technology April 16 109.65 (EUR liability 2023.12.07-
700.00 2023.12.07 No No
France SAS 2024 145700) guarant 2029.08.31
ee
Joint
1078.26
April 16 20000.0 liability
Dahua EUROPE B.V. 2024.03.04 (USD 1.5 2024.3.4-2025.3.3 No No
2024 0 guarant
million)
ee
2012024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Joint
Dahua Technology April 16 359.42 (USD liability
4000.00 2024.03.04 2024.3.4-2025.3.3 No No
Italy S.R.L. 2024 500000) guarant
ee
Guangxi Dahua
April 16
Information 100.00 No such case during the reporting period
2024
Technology Co. Ltd.Guangxi Dahua April 16
100.00 No such case during the reporting period
Technology Co. Ltd. 2024
Anhui Dahua Zhilian
April 16
Information 500.00 No such case during the reporting period
2024
Technology Co. Ltd.Anhui Dahua Zhishu
April 16
Information 500.00 No such case during the reporting period
2024
Technology Co. Ltd.Chengdu Dahua
April 16
Zhilian Information 800.00 No such case during the reporting period
2024
Technology Co. Ltd.Chengdu Dahua
Zhishu Information April 16
500.00 No such case during the reporting period
Technology Service 2024
Co. Ltd.Chengdu Zhichuang
April 16
Yunshu Technology 500.00 No such case during the reporting period
2024
Co. Ltd.Hangzhou Fuyang
April 16
Hua'ao Technology 300.00 No such case during the reporting period
2024
Co. Ltd.Henan Dahua Zhilian
April 16
Information 500.00 No such case during the reporting period
2024
Technology Co. Ltd.Hunan Dahua Zhilong
April 16
Information 100.00 No such case during the reporting period
2024
Technology Co. Ltd.Tianjin Dahua
April 16
Information 200.00 No such case during the reporting period
2024
Technology Co. Ltd.Tianjin Huajian April 16
100.00 No such case during the reporting period
Technology Co. Ltd. 2024
Yiwu Huaxi April 16
100.00 No such case during the reporting period
Technology Co. Ltd. 2024
Zhejiang Dahua
Intelligent IoT April 16
500.00 No such case during the reporting period
Operation Service 2024
Co. Ltd.Zhejiang Huakong April 16
200.00 No such case during the reporting period
Software Co. Ltd. 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Japan LLC 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Singapore Pte.Ltd. 2024
Dahua Technology April 16
1000.00 No such case during the reporting period
Poland Sp.Zo.O. 2024
Dahua Technology April 16
300.00 No such case during the reporting period
Hungary Kft 2024
Dahua Technology April 16
4000.00 No such case during the reporting period
India Private Limited 2024
DAHUA
TECHNOLOGY
BRASIL COMéRCIO April 16
1000.00 No such case during the reporting period
E SERVI?OS EM 2024
SEGURAN?A
ELETR?NICA LTDA
Dahua Technology April 16
1000.00 No such case during the reporting period
Middle East FZE 2024
2022024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua Technology April 16
100.00 No such case during the reporting period
Perú S.A.C 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Australia PTY LTD 2024
Dahua Technology
April 16
South Africa 100.00 No such case during the reporting period
2024
Proprietary Limited
Dahua Technology April 16
100.00 No such case during the reporting period
Canada INC. 2024
Dahua Guvenlik
April 16
Teknolojileri Sanayi 200.00 No such case during the reporting period
2024
ve Ticaret A.S.Dahua Technology April 16
100.00 No such case during the reporting period
SRB d.o.o. 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Bulgaria EOOD 2024
April 16
Dahua Iberia S.L. 100.00 No such case during the reporting period
2024
Dahua Security April 16
100.00 No such case during the reporting period
Malaysia SDN. BHD. 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Kazakhstan LLP 2024
PT. Dahua Vision April 16
100.00 No such case during the reporting period
Technology Indonesia 2024
Dahua Technology
April 16
Korea Company 100.00 No such case during the reporting period
2024
Limited
Dahua Technology April 16
100.00 No such case during the reporting period
S.R.L. 2024
April 16
Dahua Vision LLc 100.00 No such case during the reporting period
2024
Dahua Technology April 16
100.00 No such case during the reporting period
New Zealand Limited 2024
Dahua Technology April 16
300.00 No such case during the reporting period
GmbH 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Colombia S.A.S. 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Panama S.A. 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Chile SpA 2024
Dahua Technology
April 16
Tunisia Limited 100.00 No such case during the reporting period
2024
Liability Company
Dahua Technology April 16
100.00 No such case during the reporting period
Kenya Limited 2024
Dahua Technology
April 16
Pakistan (private) 100.00 No such case during the reporting period
2024
Limited
Dahua Technology April 16
100.00 No such case during the reporting period
Morocco SARL 2024
April 16
Dahua Argentina S.A. 100.00 No such case during the reporting period
2024
Dahua Technology April 16
100.00 No such case during the reporting period
Czech s.r.o. 2024
Dahua Technology April 16
100.00 No such case during the reporting period
Denmark ApS 2024
Dahua Technology April 16
100.00 No such case during the reporting period
(Thailand) Co.LTD. 2024
Luoyang Dahua April 16
500.00 No such case during the reporting period
Zhiyu Information 2024
2032024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Technology Co. Ltd.Dahua Technology April 16
100.00 No such case during the reporting period
Belgium B.V. 2024
DAHUA
TECHNOLOGY April 16
2000.00 No such case during the reporting period
INTERNATIONAL 2024
PTE. LTD.Dahua Technology
April 16
Regional 1000.00 No such case during the reporting period
2024
Headquarters
Nanyang Dahua
April 16
Intelligent Information 200.00 No such case during the reporting period
2024
Technology Co. Ltd.Yibin Huahui
April 16
Information 200.00 No such case during the reporting period
2024
Technology Co. Ltd.Total amount of
Total amount of guarantees to guarantees to
subsidiaries approved during the 1360000.00 subsidiaries actually 622331.88
reporting period (B1) occurred during the
reporting period (B2)
Total balance of
Total amount of guarantees to guarantees actually
subsidiaries approved by the end of 1360000.00 paid to subsidiaries at 887248.00
the reporting period (B3) the end of the reporting
period (B4)
Subsidiaries' guarantees to subsidiaries
Announce
ment date Guaran
of Actual Actual Type of tee for
Guarante Due
Guaranteed party disclosure occurrence guarantee guarant Term of guarantee related
e amount or not
of the date amount ee parties
guarantee or not
cap
The guarantee
period is until
HuaRay Korea
has fulfilled its
Joint responsibilities
169.58 and and obligations
(KRW several under each
2024.12.09 No No
343.432 liability business
million) guarant agreement. The
ee specific guarantee
period under each
business contract
is calculated
Huaray Technology
December separately.Korea Company 4000.00
10 2024 The guarantee
Limited
period is until
HuaRay Korea
has fulfilled its
Joint responsibilities
No
and and obligations
(parti
72.59 (KRW several under each
2024.12.13 ally No
147 million) liability business
compl
guarant agreement. The
eted)
ee specific guarantee
period under each
business contract
is calculated
separately.Huaray technology December
1000.00 No such case during the reporting period
GmbH 10 2024
2042024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Total amount of
Total amount of guarantees to guarantees to
subsidiaries approved during the 5000.00 subsidiaries actually 242.17
reporting period (C1) occurred during the
reporting period (C2)
Total balance of
Total amount of guarantees to guarantees actually
subsidiaries approved by the end of 5000.00 paid to subsidiaries at 225.83
the reporting period (C3) the end of the reporting
period (C4)
Total amount of company guarantees (namely sum of the previous three major items)
Total amount of
Total amount of guarantees guarantees actually
approved during the reporting 1365000.00 occurred during the 622574.05
period (A1+B1+C1) reporting period
(A2+B2+C2)
Total balance of
Total amount of guarantees guarantees actually
approved by the end of the 1365000.00 paid at the end of the 887473.83
reporting period (A3+B3+C3) reporting period
(A4+B4+C4)
Total amount of actual guarantees (A4+B4+C4) as a percentage
24.63%
of the Company's net assets
Including:
Balance of guarantees provided to the shareholders actual
0.00
controllers and their related parties (D)
Balance of debt guarantees directly or indirectly offered to
841810.32
guaranteed objects with asset-liability ratio exceeding 70% (E)
Amount of the portion of the total guarantee amount exceeding
0.00
50% of net assets (F)
Total amount of the above three guarantees (D+E+F) 841810.32
Notes on unexpired guarantees with guarantee responsibilities
occurred or possible joint liabilities within the reporting period (if None
any)
Notes on providing external guarantees in violation of specified None
procedures (if any)
Explanation of the use of composite guarantee method
N/A
3. Entrusting Others to Manage Cash Assets
(1) Entrusted Financing
□Applicable □ Not applicable
Entrusted financing during the reporting period
Unit: ten thousand RMB
Impairment
Overdue amount accrued
Entrusted Unexpired
Specific type Funding source outstanding for overdue
amount balance
amount financial
management
Financial
products of Equity Fund 100000.00
securities
2052024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
companies
Financial
products of
Equity Fund 8000.00 8000.00
securities
companies
Total 8000.00 108000.00
Specific matters on high-risk entrusted capital management with a large amount for a single item or with low security
and poor liquidity
□Applicable □ Not applicable
Unit: ten thousand RMB
W
h
e
t
h
e
r
Act it Wh
ual p ethe
Na reco Am a r
me very ount s ther
Ex Actua
of Tru Refe of of s e Item
Pay pe l
trust stee renc profi prov e will overv
me ct profit
ee org e for ts isio d be iew
Ter nt ed and
org aniz Pro Cap Invest ann and n t entr and
Star min det ea loss
aniz atio duct Am ital ment ualiz loss for h uste relate
ting atio erm rni durin
atio n Typ ount Sou directio ed es imp e d d
date n inat ng g the
n (or e rce n rate duri airm l fina query
date ion s report
(or trust of ng ent e ncia index
met (if ing
nam ee) retur the accr g l (if
hod an perio
e of type n rep ued a plan any)
y) d
trust ortin (if l in
ee) g any) p the
peri r futu
od o re
c
e
d
u
r
e
s
Private Pay
equity me
fund nt
Ass
Guo product of
Sec et Feb Feb
sen s fixed prin
uriti Man Equ ruar ruar
Sec 100 income cip Une Y
es age ity y y 1754
uriti 000. assets al xpir e
Co men Fun 10 09 3.42
es 00 equity and ed s
mpa t d 202 203
Co. assets inc
ny Pla 1 1
Ltd. public om
n
equity e at
hybrid mat
funds urit
2062024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
y
Pri
nci
pal-
Guo
Sec Ear Nov Nov Pro
sen
uriti ning Equ emb emb tect
Sec Une Y
es s 800 ity er er ed
uriti Others 20.10 xpir e
Co Cert 0.00 Fun 6 6 Flo
es ed s
mpa ifica d 202 202 atin
Co.ny te 4 5 g
Ltd.Inc
om
e
108
1756-
Total 000. -- -- -- -- -- -- -- -- --
3.52-
00
Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment
□ Applicable □Not applicable
(2) Entrusted Loans
□ Applicable □Not applicable
No such case as entrusted loan during the reporting period.
4. Other Significant Contracts
□ Applicable □Not applicable
No such case as other significant contract during the reporting period.XVI. Explanations on Other Significant Matters
□ Applicable □Not applicable
No such case as other significant events that need to be explained during the reporting period.XVII. Significant Events of the Company's Subsidiaries
□ Applicable □Not applicable
2072024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VII Changes in Shares and Information about
Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the change Increase or decrease in the change (+ -) After the change
Shares
Shares converteProportio Bonus Proportio
Quantity newly d from Others Subtotal Quantity
n shares n
issued capital
reserves
I. Shares
with - -
133545119142
limited 40.54% 0 0 0 144032 144032 36.15%
95566894
sales 662 662
condition
1.
Shares
00.00%0000000.00%
held by
state
2.
Shares
held by
293103293103
state- 8.90% 0 0 0 0 0 8.89%
400400
owned
legal
persons
3.
--
Other 104235 898323
31.64%00014403214403227.26%
domestic 6156 494
662662
shares
Shar
es held
by
00.00%0000000.00%
domestic
legal
persons
Shar
es held
--
by 104235 898323
31.64%00014403214403227.26%
domestic 6156 494
662662
natural
persons
4.
00.00%0000000.00%
Foreign
2082024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
shares
Inclu
ding:
Shares
held by 0 0.00% 0 0 0 0 0 0 0.00%
overseas
legal
persons
Shar
es held
by
00.00%0000000.00%
foreign
natural
persons
II.Shares
195900329542141897145193210420
without 59.46% 0 0 63.85%
943439824052839
restrictio
ns
1.
RMB 195900 329542 141897 145193 210420
59.46%0063.85%
ordinary 9434 3 982 405 2839
shares
2.
Foreign
shares 0 0.00% 0 0 0 0 0 0 0.00%
listed in
China
3.
Foreign
shares
00.00%0000000.00%
listed in
foreign
countries
4.
00.00%0000000.00%
Other
-
329446329542116074329562
III. Total 100.00% 0 0 213468 100.00%
8990339733
0
Reasons for changes in shares
□Applicable □ Not applicable
1. During the reporting period in respect of the 2022 stock option and restricted share incentive plan the Company
repurchased and cancelled 2134680 restricted shares held by the resigned incentive recipients that had not yet been
released from the restriction on sale.
2. During the reporting period the conditions for lifting the restriction on the second restricted period of the 2022 stock
option and restricted share incentive plan have been met. There are 3798 restricted share incentive targets that can
be lifted from the restriction. The Company has applied to lift the restriction on 20262480 restricted shares.
3. During the reporting period the incentive recipients of the 2022 stock option and restricted share incentive plan
voluntarily exercised their rights on their own initiative for a total of 3295423 shares.
4. According to relevant regulations the Company shall lock the shares held by its directors supervisors and senior
management through re-verification at the beginning of each year and shall lock the shares held by the resigned
2092024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
directors supervisors and senior management in different proportions at different stages based on their resignation
dates and former terms of office.Approval for changes in shares
□Applicable □ Not applicable
1. The Company's repurchase and cancellation of restricted shares have been reviewed and approved at the Fifth
Meeting of the Eighth Board of Directors the Fourth Meeting of the Eighth Board of Supervisors and the 2023 Annual
General Meeting of Shareholders.
2. On June 19 2024 the Company held the 6th meeting of the 8th Board of Directors and the 5th meeting of the 8thBoard of Supervisors at which the “Proposal on Meeting the Conditions for Unlocking the Second Restricted Period of
2022 Stock Options and Restricted Stock Incentive Plan” and the “Proposal on Meeting the Conditions for Exercisingthe Second Exercise Period of 2022 Stock Options and Restricted Stock Incentive Plan” were deliberated and
approved. Pursuant to the authorization of the general meeting of shareholders and the Board of Directors the
Company has completed the listing and circulation of restricted shares and the registration and declaration of voluntary
exercise during the reporting period.Transfer for changes in shares
□ Applicable □Not applicable
Effects of changes in shares on the basic earnings per share ("EPS") diluted EPS net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and last period
□Applicable □ Not applicable
During the reporting period the Company's repurchase and cancellation of certain restricted shares and the voluntary
exercise by incentive objects have led to changes in share capital affecting the Company's basic earnings per share
(EPS) diluted earnings per share net assets per share attributable to common stock shareholders and other financial
indexes over the last year and last period. The impact is detailed in "Section 2 VI. Main Accounting Data and Financial
Indexes".Other contents that the Company considers necessary or are required by the securities regulatory authorities to
disclose
□ Applicable □Not applicable
2. Changes in restricted stocks
□Applicable □ Not applicable
Unit: share
Number Of Number of Number of Number of
Shares With increased unlocked shares with
Name of Limited Sales shares with shares with limited sales Reasons for Date of
Shareholder Condition At limited sales limited sales condition at limited sales unlocking
The Beginning condition in condition in the end of the
Of The Period current period current period period
According to
Lock-up the relevant
shares for provisions of
directors shares
Fu Liquan 767901735 0 0 767901735
supervisors management
and senior of directors
management supervisors
and senior
2102024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
management
Issuance of
China Mobile
restricted
Communicatio
293103400 0 0 293103400 shares to April 13 2026
ns Group Co.specific
Ltd.objects
According to
the relevant
Lock-up
provisions of
shares for
shares
directors
Chen Ailing 53447110 0 0 53447110 management
supervisors
of directors
and senior
supervisors
management
and senior
management
According to
the relevant
Lock-up
provisions of
shares for
shares
directors
Wu Jun 51879664 0 0 51879664 management
supervisors
of directors
and senior
supervisors
management
and senior
management
According to
Lock-up
the relevant
shares for
provisions of
directors
shares
supervisors
management
and senior
of directors
Wu Jian 1155101 63600 0 1218701 management
supervisors
and restricted
and senior
shares for
management
equity
as well as
incentive
equity
award
incentive
According to
Lock-up
the relevant
shares for
provisions of
directors
shares
supervisors
management
and senior
of directors
Zhao Yuning 1106850 0 122400 984450 management
supervisors
and restricted
and senior
shares for
management
equity
as well as
incentive
equity
award
incentive
Lock-up According to
shares for the relevant
directors provisions of
supervisors shares
and senior management
Zhu Jiantang 902269 0 95400 806869
management of directors
and restricted supervisors
shares for and senior
equity management
incentive as well as
2112024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
award equity
incentive
According to
Lock-up
the relevant
shares for
provisions of
directors
shares
supervisors
management
and senior
of directors
Li Zhijie 641850 63600 0 705450 management
supervisors
and restricted
and senior
shares for
management
equity
as well as
incentive
equity
award
incentive
According to
Lock-up
the relevant
shares for
provisions of
directors
shares
supervisors
management
and senior
of directors
Xu Zhicheng 598350 63600 0 661950 management
supervisors
and restricted
and senior
shares for
management
equity
as well as
incentive
equity
award
incentive
According to
Lock-up
the relevant
shares for
provisions of
directors
shares
Other senior supervisors
management
executives and senior
of directors
and equity 164723227 0 144005662 20717565 management
supervisors
incentive and restricted
and senior
objects shares for
management
equity
as well as
incentive
equity
award
incentive
Total 1335459556 190800 144223462 1191426894 -- --
II. Issuance and listing of securities
1. Securities (excluding preferred share) issued in reporting period
□ Applicable □Not applicable
2. Explanation on changes in total number of the Company's shares & the structure of
shareholders and the structure of assets and liabilities
□Applicable □ Not applicable
1. During the reporting period in respect of the 2022 stock option and restricted share incentive plan the Company
repurchased and cancelled 2134680 restricted shares held by the resigned incentive recipients that had not yet been
released from the restriction on sale.
2122024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. During the reporting period the incentive recipients of the 2022 Stock Option and Restricted Share Incentive Plan
voluntarily exercised their rights for a total of 3295423 shares.
3. Existing shares held by internal staff of the Company
□ Applicable □Not applicable
III. Particulars about the shareholders and actual controller
1. Total number of shareholders and their shareholdings
Unit: share
Total number Total Number of
Total Total number of
of common Preferred
Number preferred stock
shareholders Shareholders (If
Of shareholders (if
at the end of Any) (Refer to
Common any) with resumed
previous Note 8) Whose
Sharehold voting rights at the
185187 month 159104 Voting Rights 0 0
ers At The end of the
before the have been
End Of previous month
disclosure Recovered at
The before the
date of the the End of the
Reporting disclosure date of
annual Reporting
Period the annual report
report Period
Shareholding situation of shareholders holding over 5% of shares or the top 10 shareholders (excluding shares lent
through refinancing)
Number of Pledges markings or
Number of Number of
shares freezing
Sharehold shares Changes shares
Name of Nature of held
ing held at the in the held with
Sharehold Sharehold without
Percentag end of the reporting limited
er er limited State Of
e reporting period sales Quantity
sales Shares
period conditions
condition
Domestic
1023868767901725596721382000
Fu Liquan Natural 31.07% 0 Pledged
980354500
Person
China
Mobile State-
Communi owned 2931034 2931034
8.89% 0 0 N/A
cations Legal 00 00
Group Person
Co. Ltd.Domestic
Zhu 1562275 - 1562275
Natural 4.74% 0 N/A
Jiangming 60 3947930 60
Person
Domestic
Chen 7126281 5344711 1781570 3180000
Natural 2.16% 0 Pledged
Ailing 3 0 3 0
Person
Domestic
691728851879661729322
Wu Jun Natural 2.10% 0 N/A
642
Person
Hong Overseas
65134236513423
Kong Legal 1.98% 794488 0 N/A
22
Securities Person
2132024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Clearing
Co. Ltd.Domestic
China
Non-state-
Securities 3961124 3961124
owned 1.20% 0 0 N/A
Finance 1 1
Legal
Co. Ltd.Person
FORESEA
Life
Insurance
Company 3911099 3271099 3911099
Others 1.19% 0 N/A
Limited - 6 6 6
participati
ng
insurance
Industrial
and
Commerci
al Bank of
China
Limited -
Huatai-
PineBridg 3418003 1945630 3418003
Others 1.04% 0 N/A
e CSI 300 0 0 0
Exchange
-traded
Open-end
Index
Securities
Investmen
t Fund
New
China Life
Insurance
Company
Limited -
24321732432173
Traditional Others 0.74% 0 0 N/A
66
- general
insurance
- 018L-
CT001
Shen
Strategic investors or general legal
persons becoming shareholders of
the top 10 common shares as a result N/A
of the placement of new shares (if
any) (see Note 3)
Description of the association Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company Is
relationship or concerted action of Unaware Of Whether Other Shareholders Have Associated Relationship Or
above-mentioned shareholders Are Persons Acting In Concert
Explanation of the above
shareholders involved in proxy/trustee
N/A
voting rights and abstention from
voting rights
Special note on the existence of
N/A
repurchase special accounts among
2142024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
the top 10 shareholders (if any) (see
Note 10)
Shareholding of the top 10 unlimited sale condition shareholders (excluding shares lent through refinancing and lock-
up shares for senior management)
Number of shares held Type of shares
without limited sales
Name of Shareholder
condition at the end of Type of shares Quantity
the reporting period
RMB common 2559672
Fu Liquan 255967245
stock 45
RMB common 1562275
Zhu Jiangming 156227560
stock 60
RMB common 6513423
Hong Kong Securities Clearing Co. Ltd. 65134232
stock 2
RMB common 3961124
China Securities Finance Co. Ltd. 39611241
stock 1
FORESEA Life Insurance Company Limited - RMB common 3911099
39110996
participating insurance stock 6
Industrial and Commercial Bank of China Limited -
RMB common 3418003
Huatai-PineBridge CSI 300 Exchange-traded Open- 34180030
stock 0
end Index Securities Investment Fund
New China Life Insurance Company Limited - RMB common 2432173
24321736
Traditional - general insurance - 018L-CT001 Shen stock 6
New China Life Insurance Company Limited - RMB common 2414663
24146636
dividend- personal dividend - 018L-FH002 Shen stock 6
China Construction Bank Stock Corporation - E Fund
RMB common 2353644
CSI 300 Exchange Traded Open-End Index-Initiated 23536443
stock 3
Securities Investment Fund
RMB common 1781570
Chen Ailing 17815703
stock 3
Explanation on associated relationship or persons Mr. Fu Liquan and Ms. Chen Ailing are husband and wife.acting in concert among top ten shareholders without The Company Is Unaware Of Whether Other Shareholders
limited shares and between top ten shareholders Have Associated Relationship Or Are Persons Acting In
without limited shares and top ten shareholders Concert
Explanation on Top 10 common stock shareholders’
participation in securities margin trading (If any) (see None
Note 4)
The Company hereby declares that its special securities
account for repurchase held 19819601 ordinary shares
Special note on the existence of repurchase special class A as at the end of the reporting period with a
accounts among the top 10 unrestricted shareholders shareholding ratio of 0.60% which is not included in the
Company's top 10 shareholders without limited sales
conditions as required.Shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders without limited
outstanding shares participating in the lending of shares through refinancing
□Applicable □ Not applicable
Unit: share
Shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders without limited
outstanding shares participating in the lending of shares through refinancing
Shares held in ordinary Shares lent through Shares held in ordinary Shares lent through
Name of
accounts and credit refinancing but have accounts and credit refinancing but have
Shareholder (full
accounts at the not been returned yet accounts at the end of not been returned
name)
beginning of the period at the beginning of the period yet at the end of the
2152024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
the period period
Proportio Proportio Proportio Proportion
Total
Total n to total Total n to total Total n to total to total
quantit
quantity share quantity share quantity share share
y
capital capital capital capital
Industrial and
Commercial
Bank of China
Limited - Huatai-
PineBridge CSI
147237300.45%1468000.00%341800301.04%00.00%
300 Exchange-
traded Open-
end Index
Securities
Investment Fund
China
Construction
Bank Stock
Corporation - E
Fund CSI 300
Exchange 5466300 0.17% 83900 0.00% 23536443 0.71% 0 0.00%
Traded Open-
End Index-
Initiated
Securities
Investment Fund
Changes in top 10 shareholders and top 10 shareholders without limited outstanding shares over the previous period
due to refinancing lending/returning
□ Applicable □Not applicable
Whether the Company's top ten common shareholders or top ten common shareholders without limited shares agree
on any repurchase transaction in the reporting period
□ Yes □No
None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreed
on repurchase in the reporting period.
2. Particulars about the controlling shareholder
Nature of the controlling shareholder: Natural person-owned
Type of the controlling shareholder: Natural person
Whether he/she has obtained the
Name of the controlling shareholder Nationality right of residence in another country
or region
Fu Liquan China No
Main occupation and title Chairman and President of the Company
Mr. Fu Liquan directly holds 7.34% of the shares of Leapmotor (HK.09863). In
Shares held in other listed holding shares of Leapmotor Mr. Fu Liquan Ms. Chen Ailing Mr. Zhu
companies by controlling or holding Jiangming and Ms. Liu Yunzhen (Mr. Zhu Jiangming's spouse) act in concert
in the reporting period and jointly and ultimately hold approximately 24.48% of the shares of
Leapmotor making them the largest shareholder group of Leapmotor.Change of the controlling shareholders in the reporting period
□ Applicable □Not applicable
2162024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
No change has happened to the controlling shareholder in the reporting period of the Company
3. The actual controller of the Company and persons acting in concert
Nature of the actual controller: Domestic natural person
Type of the actual controller: Natural person
Whether he/she has
Name of the actual Relationship with the actual obtained the right of
Nationality
controller controller residence in another
country or region
Fu Liquan Himself China No
Chen Ailing Himself China No
Mr. Fu Liquan holds the position of the chairman and president of the Company; Ms.Main occupation and title
Chen Ailing holds the position of a director of the Company.Information about other
listed companies at home
None
and abroad controlled in
the last ten years
Change of the actual controller in the reporting period
□ Applicable □Not applicable
No change has happened to the actual controller in the reporting period
Block Digram for Property Right and Control Relationship between the Company and Actual Controllers
Fu Liquan Chen Ailing
Zhejiang Dahua Technology Co. Ltd.The actual controller controls the Company via trust or other ways of asset management
□ Applicable □Not applicable
4. The total number of shares pledged by the Company's controlling shareholder or largest
shareholder and its persons acting in concert accounts for 80% of the total number of shares
held by them.□ Applicable □Not applicable
5. Particulars about other corporate shareholders with shareholding proportion over 10%
□ Applicable □Not applicable
2172024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
6. Particulars on share reduction restricted for controlling shareholders actual controller
restructuring party or other commitment entities
□ Applicable □Not applicable
IV. Specific Implementation of Share Buybacks during the Reporting Period
The progress on share repurchases
□ Applicable □Not applicable
Progress of the implementation of reducing repurchased shares through centralized competitive bidding
□ Applicable □Not applicable
2182024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VIII Information of Preferred Shares
□ Applicable □Not applicable
There are no preferred shares in the reporting period.
2192024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section IX Situation on Corporate Bonds
□ Applicable □Not applicable
2202024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section X Financial Report
I. Audit Reports
Audit opinion type Standard Unqualified Opinion
Signature Date of audit report March 28 2025
BDO China Shu Lun Pan CPAs (special general
Name of audit institution
partnership)
Audit report ref. Xin Kuai Shi Bao Zi [2025] No. ZF10088
Name of Certified Public Accountant Du Na Zhang Junhui
Audit Report Text
To the shareholders of Zhejiang Dahua Technology Co. Ltd.:
I. Audit Opinion
We have audited the financial statements of Zhejiang Dahua Technology Co. Ltd. (hereinafter referred to as the
Company) which comprise the parent company's and the consolidated balance sheet dated December 31 2024 the
parent company's and the consolidated income statement for the year 2024 the parent company's and the
consolidated cash flow statement the parent company's and the consolidated statement of changes in owners' equity
as well as the notes to relevant financial statements.In our opinion the attached financial statements are prepared in all material respects in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the parent company and the
merged companies as at December 31 2024 and the operating results and cash flows of the parent company and the
merged companies in 2024.II. Basis for Forming Our Audit Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the CPA's Responsibilities for the Audit of the Financial
Statements section of our report. According to the Code of Ethics for Chinese Certified Public Accountants we are
independent of the Company and we have fulfilled our other ethical responsibilities in accordance with the Code. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.The key audit matters identified by us during our audit are summarized below:
Key Audit Matters How the matter was addressed in the audit
A. Recognition of revenue
Dahua Technology's operating The main audit procedures we performed for the above key audit matters
revenue in 2024 was RMB include:
32180931800 which is an 1. Understand the design and implementation of Dahua Technology's
important part of Dahua Technology's internal control system and financial accounting system related to revenue
income statement. Since revenue is recognition and test the effectiveness of their operation.
2212024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
one of Dahua Technology's key 2. Differentiate between different types of sales and based on the actual
performance indicators there is an situation of the specific business check the provisions of the relevant
inherent risk that management will contracts and evaluate whether the revenue recognition complies with the
manipulate the timing of revenue requirements of the Accounting Standards for Business Enterprises.recognition in order to achieve 3. Perform analytical review to determine the rationality of changes in sales
specific goals or expectations. For revenue and gross margin.this reason we have determined 4. Execute the confirmation procedure: Spot inspection of the annual sales
revenue recognition as a key audit amount and the amount of uncollected payment at the end of the year is
matter. For disclosure on revenue confirmed by the customers and the customs statistical amount certificate is
recognition policy please refer to obtained for the main revenue from overseas sales.Note 3 (XXVI); for disclosure on 5. Test samples of different types of revenue: For standard products sold
operating revenue amount please domestically and overseas sales of overseas subsidiaries spot inspection of
refer to Note 5 (XLV). product delivery records shipping orders customer signature records and
payment records etc.; for standard products sold overseas by domestic
companies spot inspection of delivery records customs declaration forms
bills of lading and payment records etc.; for system integration sales spot
inspection of product delivery records verification of shipping lists and
contract lists installation and commissioning completion acceptance reports
payment records etc.
6. Sample the transactions made before or after the balance sheet date and
check their out-of-stock records customs declaration form and other
relevant supportive documents to confirm whether the revenues have been
recognized in an appropriate accounting period.B. Recoverability of accounts receivable
At the end of 2024 the net value of The main audit procedures we performed for the above key audit matters
Dahua Technology's accounts include:
receivable was RMB 17046094500. 1. Understand management's key internal controls over financial report
The management needs to make related to credit control account collection and assessment of receivables
significant judgments about the depreciation reserve.identification of accounts receivable 2. Understand the Company's customer credit management procedures and
impairment accounts and the collection measures for overdue debts.likelihood of cash inflow from future 3. For accounts receivable for which expected credit losses are calculated
customers and the realization of the based on a portfolio of credit risk characteristics review management’s
guaranteed amount. The division of the portfolio and assess the rationality of the estimated expected
management's estimates and credit loss rate based on historical credit loss rates current conditions and
assumptions are uncertain. Since the forecasts for future economic conditions. We assessed the reasonableness
amount of accounts receivable is of the provision ratio with reference to the historical audit experience and
significant to the financial statements prospective information tested the accuracy of the portfolio classification and
2222024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
as a whole and the recoverability aging division of the accounts receivable and recalculated the accuracy of
involves the estimation and judgment the accrued amount of the expected credit loss.of future cash flows we recognize the 4. We sampled the accounts receivable subject to separate bad debt
recoverability of accounts receivable provision and reviewed the basis for the management's assessment of the
as a key audit matter. For disclosure expected credit loss based on the financial position and credit position of the
of the amount of accounts receivable customer historical repayment records and prediction of the future economic
please refer to Note 5 (IV). condition. We validated the management's assessment against the evidence
we obtained during the audit process including background information past
transaction history and payment status of the customer and forward-looking
considerations.
5. Test the payment received after the balance sheet date;
6. Select customer samples according to the spot inspection principle and
confirm the balance of accounts receivable.
7. Analyze whether there exist any accounts receivable that cannot be
recovered and need to be written off.IV. Other Information
The management of the Company (hereinafter referred to as the Management) is responsible for the other
information. Other information includes information covered in the Company's 2024 annual report but excludes the
financial statements and our audit report.Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.In combination with our audit of the financial statements our responsibility is to read the other information and in
doing so consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other
information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for the Financial Statement
The Management is responsible for preparing the financial statements in accordance with the requirements of
Accounting Standards for Business Enterprises to achieve a fair presentation and for designing implementing and
maintaining necessary internal control to ensure that the financial statements are free from material misstatements
whether due to frauds or errors.In preparing the financial statements the Management is responsible for assessing the Company's ability to
continue as a going concern disclosing matters related to going concern (if applicable) and using the going concern
basis of accounting unless the Management either intends to liquidate the Company or to cease operations or has no
realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's financial reporting process.VI. CPA's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement whether due to fraud or error and to issue an audit report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
the audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or
2232024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
error and are considered material if individually or in the aggregate they could reasonably be expected to influence
the economic decisions of users made on the basis of these financial statements.As part of an audit in accordance with the audit standards we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error
design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations
or the override of internal control.
(2) Understand the internal control related to the audit in order to design appropriate audit procedure.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the Management.
(4) Conclude on the appropriateness of using the going concern assumption by the Management. Meanwhile
conclude based on the audit evidence obtained whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists we are required to draw attention in our audit report to the related disclosures in the financial
statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the information
available up to the date of our audit report. However future events or conditions may cause the Company to cease to
continue as a going concern.
(5) Evaluate the overall presentation (including the disclosures) structure and content of the financial statements
and whether the financial statements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements. We are responsible for guiding
supervising and implementing the group audit and remain solely responsible for our audit opinion.We have communicated with those charged with governance on such matters as the scope of audit as planned
the schedule and material audit findings including the defects in the internal control that are worth paying attention to
found in this audit.We have also provided those charged with governance with a statement on observing the professional ethics
related to independence and communicated with those charged with governance on all the relationships and other
matters that might be reasonably deemed to affect our independence and relevant preventative measures.From the matters communicated with those charged with governance we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit matters.We describe these matters in our audit report unless law or regulation precludes public disclosure about the matter or
when in extremely rare circumstances we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
2242024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
BDO China Shu Lun Pan CPAs Chinese CPA: Du Na
(Special General Partnership) (Project Partner)
Chinese CPA: Zhang Junhui
Shanghai China March 28 2025
2252024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
II. Financial Statements
Units of financial reports in the notes: yuan
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co. Ltd.December 31 2024
Unit: RMB
Item Closing Balance Opening Balance
Current Assets:
Cash and Bank Balances 11181803423.83 15971005114.47
Deposit Reservation for Balance
Loans to Banks and Other
Financial Institutions
Trading Financial Assets 229927529.28 1470000.00
Derivative Financial Assets
Notes receivable 777750260.09 813039192.75
Accounts receivable 17046094518.79 16276803954.03
Receivables Financing 841815267.43 810713267.86
Prepayments 310574867.09 189388716.99
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 293728850.42 337524688.36
Including: interest receivable
Dividends Receivable 5784225.02
Buying Back the Sale of Financial
Assets
Inventory 5203560771.25 5332608544.02
Among them: Data resources
Contract Assets 87397517.09 86714216.34
Holding for-sale assets
Non-current Assets Due within 1
237608641.30303454116.40
Year
Other Current Assets 1035802016.58 939374868.31
Subtotal of Current Assets 37246063663.15 41062096679.53
Non-current Assets:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables 744412552.00 946659309.70
Long-term Equity Investment 722241568.57 727453629.75
2262024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Investment in Other Equity
Instruments
Other Non-current Financial Assets 1274697490.87 1535742385.71
Investment Property 139280586.26 129637004.00
Fixed Assets 4973953628.05 4937180876.88
Projects under Construction 1254554187.36 1008612408.49
Productive Biological Assets
Oil and gas assets
Right-of-use assets 232124277.86 299202586.56
Intangible Assets 578035438.59 594679018.11
Among them: Data resources
Development Expenditure
Among them: Data resources
Goodwill 6615294.18 6615294.18
Long-term Deferred Expenses 99410405.42 135335273.95
Deferred Income Tax Assets 1136746080.45 1287903482.65
Other Non-Current assets 4327776909.06 210809264.49
Subtotal of Non-current Assets 15489848418.67 11819830534.47
Total assets 52735912081.82 52881927214.00
Current Liabilities:
Short-term loan 995000000.00 957426330.18
Borrowings from the Central Bank
Borrowings from Banks and Other
Financial Institutions
Transactional financial liabilities 4268603.52 61400.12
Derivative Financial Liabilities
Notes Payable 3599974242.02 3296294946.26
Accounts Payable 5877976861.13 5815123195.55
Received Prepayments
Contract liabilities 1282204348.75 1194534307.04
Financial Assets Sold for
Repurchase
Deposit Taking and Interbank
Deposit
Receiving from Vicariously Traded
Securities
Receiving from Vicariously Sold
Securities
Payroll payable 1811053208.92 1933955631.12
Tax Payable 405860321.63 1243482361.08
Other Payables 637013560.05 812424146.52
Including: interest payable
Dividends Payable 22951560.23 23667047.02
Service Charge and Commission
2272024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due within 1
117227812.08901722028.75
Year
Other Current Liabilities 160151530.23 155182705.02
Subtotal of Current Liabilities 14890730488.33 16310207051.64
Non-current Liabilities:
Insurance Contract Reserves
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease liabilities 114313807.41 176580049.57
Long-term Payables
Long-term payroll payable
Expected Liabilities 268194691.24 224542626.90
Deferred Income 186181012.99 166711673.04
Deferred Income Tax Liabilities 19162.22 737367.19
Other Non-current Liabilities 102264089.02 119054046.66
Subtotal of Non-current Liabilities 670972762.88 687625763.36
Total Liabilities 15561703251.21 16997832815.00
Shareholders' Equity:
Share Capital 3295629733.00 3294468990.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 7156767235.86 7124125996.49
Less: Treasury Share 564654524.63 746699863.45
Other Comprehensive Incomes 104358460.57 65993020.83
Special Reserves
Surplus Reserves 1647814866.50 1647234495.00
General Risk Reserves
Undistributed Profits 24388130399.78 23334051186.55
Total Shareholders' Equity
36028046171.0834719173825.42
Attributable to the Parent Company
Minority Shareholders' Equity 1146162659.53 1164920573.58
Total Shareholders' Equity 37174208830.61 35884094399.00
Total Liabilities and Shareholders'
52735912081.8252881927214.00
Equity
Legal representative: Fu Liquan Person in charge of the accounting work: Xu Qiaofen Person in charge of the
accounting institution: Zhu Zhuling
2. Balance Sheet of the Parent Company
Unit: RMB
Item Closing Balance Opening Balance
Current Assets:
2282024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Cash and Bank Balances 5897243923.06 9624679601.93
Trading Financial Assets 229927529.28
Derivative Financial Assets
Notes receivable 46362406.21 368774122.18
Accounts receivable 4139497263.56 6640946970.53
Receivables Financing 719599879.51 698297307.69
Prepayments 16906692.15 31587070.13
Other Receivables 13384626871.41 11736609900.41
Including: interest receivable
Dividends Receivable
Inventory 284771384.52 447927880.25
Among them: Data resources
Contract Assets 11494282.17 12985980.46
Holding for-sale assets
Non-current Assets Due within 1
3807555.8010032002.75
Year
Other Current Assets 538541006.72 348700342.87
Subtotal of Current Assets 25272778794.39 29920541179.20
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables 1954398.82 5359168.22
Long-term Equity Investment 8162278853.75 8191802935.85
Investment in Other Equity
Instruments
Other Non-current Financial Assets 1249757490.87 1513272385.71
Investment Property 19105162.49 1817925.82
Fixed Assets 1727649143.59 1814451576.60
Projects under Construction 3656082.30 3556445.35
Productive Biological Assets
Oil and gas assets
Right-of-use assets 65543667.49 94348785.64
Intangible Assets 128466583.90 140815043.41
Among them: Data resources
Development Expenditure
Among them: Data resources
Goodwill
Long-term Deferred Expenses 51808153.67 66926895.55
Deferred Income Tax Assets 193183542.15 1008929.69
Other Non-Current assets 3122186359.68 18782264.32
Subtotal of Non-current Assets 14725589438.71 11852142356.16
Total assets 39998368233.10 41772683535.36
2292024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Current Liabilities:
Short-term loan 600266666.67
Transactional financial liabilities 776841.98
Derivative Financial Liabilities
Notes Payable 654898101.96 221026659.43
Accounts Payable 998713006.78 884748949.13
Received Prepayments
Contract liabilities 127382878.88 125050543.58
Payroll payable 1115800008.44 1354637328.45
Tax Payable 170444725.36 1008009000.74
Other Payables 1350481637.98 1193481602.34
Including: interest payable
Dividends Payable 22951560.23 23667047.02
Holding for-sale liabilities
Non-current Liabilities Due within 1
35716560.18787284456.59
Year
Other Current Liabilities 25720588.07 22753109.13
Subtotal of Current Liabilities 4479934349.63 6197258316.06
Non-current Liabilities:
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease liabilities 23992169.41 48328489.38
Long-term Payables
Long-term payroll payable
Expected Liabilities 39764161.76 1550020.50
Deferred Income 30091476.57
Deferred Income Tax Liabilities
Other Non-current Liabilities 44307.49 144070.84
Subtotal of Non-current Liabilities 93892115.23 50022580.72
Total Liabilities 4573826464.86 6247280896.78
Shareholders' Equity:
Share Capital 3295629733.00 3294468990.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 6888762462.22 6881563679.88
Less: Treasury Share 564654524.63 746699863.45
Other Comprehensive Incomes
Special Reserves
Surplus Reserves 1647814866.50 1647234495.00
Undistributed Profits 24156989231.15 24448835337.15
Total Shareholders' Equity 35424541768.24 35525402638.58
Total Liabilities and Shareholders'
39998368233.1041772683535.36
Equity
2302024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
3. Consolidated Income Statement
Unit: RMB
Item 2024 2023
I. Total Operating Revenue 32180931827.17 32218317636.77
Including: Operating Revenue 32180931827.17 32218317636.77
Interest Income
Earned Premiums
Service Charge and
Commission Income
II. Total Operating Cost 30034509485.68 29058697666.07
Including: Operating Cost 19681686604.51 18804021731.30
Interest Expenditures
Service Charge and
Commission Expenses
Surrender Value
Net Claims Paid
Net Amount of Withdrawn
Reserve for Insurance Liability
Contract
Policyholder Dividend
Expense
Reinsurance Cost
Taxes and Surcharges 221316771.47 275786197.05
Sales Expenses 5166733337.95 5163519417.85
Administration expenses 1141408186.63 1257429514.27
Research and development
4213255565.733967248795.22
expense
Financial expenses -389890980.61 -409307989.62
Including: interest
45574086.2095985194.10
expenses
Interest Income 420512502.16 345537378.77
Add: Other income 1007110693.00 942767172.83
Investment Income (Mark "-"
464818698.594495973812.03
for Loss)
Including: Investment
Income from Affiliates and Joint 14958434.46 -242631295.52
Ventures
Profits from
recognition Termination of Financial -1428980.24 -16573899.23
Assets at Amortized Cost
Exchange Gains (Mark "-" for
Losses)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair
-43415404.28127628374.87
value (losses marked with "-")
2312024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Credit Impairment Losses
-487985185.36-412457117.43
(Mark "-" for Loss)
Asset Impairment Losses
-107759438.82-174514315.74
(Mark "-" for Loss)
Asset Disposal Income (Mark
805684.662007798.39
"-" for Loss)
III. Operating Profit (Mark "-" for
2979997389.288141025695.65
Loss)
Add: Non-operating Revenues 19028847.26 13528994.25
Less: Non-operating Expenses 9556681.90 32849032.26
IV. Total Profit (Mark "-" for Total
2989469554.648121705657.64
Loss)
Less: Income Tax Expense 70297282.61 646438172.09
V. Net Profit (Mark "-" for Net Loss) 2919172272.03 7475267485.55
(I) Classified by operation
continuity
1. Net Profit as a Going Concern
2919172272.037475267485.55
(Mark "-" for Net Loss)
2. Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
(II) Classified by the attribution of
ownership
1. Net Profit Attributable to
2905728684.037361892404.52
Shareholders of Parent Company
2. Minority Shareholders' Profit
13443588.00113375081.03
and Loss
VI. Net Amount of Other
37679325.9529150995.25
Comprehensive Incomes after Tax
Net Amount of Other
Comprehensive Incomes after Tax
38365439.7429050681.06
Attributable to the Parent Company's
Owner
(I) Other comprehensive income
that cannot be reclassified into profit
or loss
1. Re-measure the variation of
the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
P/L under the equity method
3. Changes in the fair value of
investment in other equity
instruments
4. Changes in the fair value of
the credit risk of the enterprise
5. Others
(II) Other comprehensive income
38365439.7429050681.06
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
under the equity method
2.Changes in the fair value of
investment in other creditor's rights
3. Financial assets reclassified
2322024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
into other comprehensive income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Currency conversion
38365439.7429050681.06
difference
7. Others
Net Amount of Other
Comprehensive Incomes After Tax -686113.79 100314.19
Attributable to Minority Shareholders
VII. Total Comprehensive Income 2956851597.98 7504418480.80
Total Comprehensive Income
Attributable to the Parent Company's 2944094123.77 7390943085.58
Owner
Total Comprehensive Income
12757474.21113475395.22
Attributable to Minority Shareholders
VIII. Earnings Per Share
(I) Basic Earnings per Share 0.90 2.31
(II) Diluted Earnings per Share 0.90 2.31
Legal representative: Fu Liquan Person in charge of accounting work: Xu Qiaofen Person in charge of the
accounting institution: Zhu Zhuling
4. Income Statement of the Parent Company
Unit: RMB
Item 2024 2023
I. Operating Revenue 7518191042.08 10675914320.02
Less: Operating Cost 1465137970.11 1691509093.51
Taxes and Surcharges 111825883.38 146495115.07
Sales Expenses 2431702053.58 2462085420.10
Administration expenses 635934038.09 680831535.05
Research and development
3065795148.032864986091.20
expense
Financial expenses -287777462.98 -91154399.90
Including: interest expenses 31357085.45 81261266.60
Interest Income 260649260.35 213951362.84
Add: Other income 811362856.47 679492419.86
Investment Income (Mark "-"
302148808.754314965696.38
for Loss)
Including: Investment
Income from Affiliates and Joint -34908353.35 -309247666.73
Ventures
Profits from
Derecognition of Financial Assets at -2965408.15 -4044983.67
Amortized Cost (Mark "-" for Loss)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair
-42997536.67101037455.74
value (losses marked with "-")
Credit Impairment Losses -41819656.19 -43204243.79
2332024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(Mark "-" for Loss)
Asset Impairment Losses
-912196.39-449430.51
(Mark "-" for Loss)
Asset Disposal Income (Mark
-173915.70539633345.30
"-" for Loss)
II. Operating Profit (Mark "-" for Loss) 1123181772.14 8512636707.97
Add: Non-operating Revenues 4086587.52 1578964.62
Less: Non-operating Expenses 2141311.75 1596176.55
III. Total Profit (Mark "-" for Total
1125127047.918512619496.04
Loss)
Less: Income Tax Expense -434676316.89 725580252.78
IV. Net Profit (Mark "-" for Net Loss) 1559803364.80 7787039243.26
(I) Net Profit as a Going Concern
1559803364.807787039243.26
(Mark "-" for Net Loss)
(II) Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
V. Net Amount of Other
Comprehensive Incomes After Tax
(I) Other comprehensive income
that cannot be reclassified into profit
or loss
1. Re-measure the variation of
the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
P/L under the equity method
3. Changes in the fair value of
investment in other equity
instruments
4. Changes in the fair value of
the credit risk of the enterprise
5. Others
(II) Other comprehensive income
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
under the equity method
2.Changes in the fair value of
investment in other creditor's rights
3. Financial assets reclassified
into other comprehensive income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Currency conversion
difference
7. Others
VI. Total Comprehensive Income 1559803364.80 7787039243.26
VII. Earnings per share
(I) Basic Earnings per Share 0.48 2.45
(II) Diluted Earnings per Share 0.48 2.44
2342024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2024 2023
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
34669187205.3834442145403.42
and Provision of Services
Net Increase in Customer's Bank
Deposits and Interbank Deposits
Net Increase in Borrowings from
the Central Bank
Net Increase in Borrowings from
Other Financial Institutions
Cash Arising from Receiving
Premiums for the Original Insurance
Contract
Net Amount Arising from
Reinsurance Business
Net Increase in Deposits and
Investments from Policyholders
Cash Arising from Interests
Service Charges and Commissions
Net Increase in Borrowings from
Banks and Other Financial
Institutions
Net Increase in Repurchase
Business Funds
Net Amount of Cash Received
from the Vicariously Traded
Securities
Tax Refund 1155885839.76 1297555479.60
Other Received Cash Related to
1493775604.081458933374.74
Operational Activities
Subtotal of cash inflow from
37318848649.2237198634257.76
operational activities
Cash Paid for Merchandise and
21837355751.0621282073936.41
Services
Net Increase in Loans and
Advances to Customers
Net Increase in Deposits with
Central Bank and Other Financial
Institutions
Cash Paid for Original Insurance
Contract Claims
Net increase of funds lent
Cash Paid for Interests Service
Charges and Commissions
Cash Paid for Policy Dividends
Cash Paid to and for Employees 7891665626.88 7048918522.07
Cash Paid for Taxes and
2369366594.701924186453.49
Surcharges
Other Paid Cash Related to 2510223067.28 2344676691.32
2352024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Operational Activities
Subtotal of cash outflow from
34608611039.9232599855603.29
operational activities
Net cash flow generated by operating
2710237609.304598778654.47
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
15446431122.054741623320.96
Investments
Cash Arising from Investment
24092429.2328682909.98
Incomes
Net Cash Arising from Disposal of
Fixed Assets Intangible Assets and 1760730.93 4137565.27
Other Long-term Assets
Net Cash Arising from Disposal of
Subsidiaries and Other Business 90212801.88
Units
Other Received Cash Related to
45191811.4949811896.09
Investment Activities
Subtotal of cash inflow from
15607688895.584824255692.30
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets
907507733.381445917821.13
Intangible Assets and Other Long-
term Assets
Cash Paid for Investments 19513379638.01 1566078364.60
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business 12269004.98
Units
Other Paid Cash Related to
6618141.9486037580.10
Investment Activities
Subtotal of cash outflows from
20439774518.313098033765.83
investment activities
Net amount of cash flow generated
-4832085622.731726221926.47
by investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
50992358.195835668662.56
Investments
Including: Cash Arising from
Subsidiaries Absorbing Investments 739669502.56
by Minority Shareholders
Cash Arising from Borrowings 2314437200.00 2629490853.55
Other Received Cash Related to
Financing Activities
Subtotal of cash inflow from financing
2365429558.198465159516.11
activities
Cash Paid for Debts Repayment 3061814753.64 4075180609.51
Cash Paid for Distribution of
Dividends and Profits or Payment of 1891030117.80 1868381166.79
Interests
Including: Dividends and Profits
Paid to Minority Shareholders by 7978707.94 1104770.95
Subsidiaries
Other Paid Cash Related to 216004106.63 868734705.55
2362024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Financing Activities
Subtotal of cash outflow from
5168848978.076812296481.85
financing activities
Net cash flow generated by financing
-2803419419.881652863034.26
activities
IV. Impact of Fluctuation in Exchange
106138654.6424330927.12
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-4819128778.678002194542.32
Equivalents
Add: Cash and Cash Equivalents
15880659594.957878465052.63
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
11061530816.2815880659594.95
End of the Period
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2024 2023
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
10850756525.939580658235.54
and Provision of Services
Tax Refund
Other Received Cash Related to
1125632790.31995036096.41
Operational Activities
Subtotal of cash inflow from
11976389316.2410575694331.95
operational activities
Cash Paid for Merchandise and
968711350.46894299605.11
Services
Cash Paid to and for Employees 4402936109.00 4148209445.47
Cash Paid for Taxes and
1449599709.32980532790.15
Surcharges
Other Paid Cash Related to
1358974968.971218042054.87
Operational Activities
Subtotal of cash outflow from
8180222137.757241083895.60
operational activities
Net cash flow generated by operating
3796167178.493334610436.35
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
15426645123.374438176060.20
Investments
Cash Arising from Investment
10967181.795321510.33
Incomes
Net Cash Arising from Disposal of
Fixed Assets Intangible Assets and 13649372.37 6507850.94
Other Long-term Assets
Net Cash Arising from Disposal of
Subsidiaries and Other Business
Units
Other Received Cash Related to
12992141.32
Investment Activities
Subtotal of cash inflow from
15464253818.854450005421.47
investment activities
Cash Paid for Purchase and
205035322.18306866259.04
Construction of Fixed Assets
2372024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Intangible Assets and Other Long-
term Assets
Cash Paid for Investments 18381974779.81 4253829235.00
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
Other Paid Cash Related to
Investment Activities
Subtotal of cash outflows from
18587010101.994560695494.04
investment activities
Net amount of cash flow generated
-3122756283.14-110690072.57
by investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
50992358.195095999160.00
Investments
Cash Arising from Borrowings 1200000000.00
Other Received Cash Related to
1290399680.881931048415.78
Financing Activities
Subtotal of cash inflow from financing
1341392039.078227047575.78
activities
Cash Paid for Debts Repayment 1350000000.00 2553632141.60
Cash Paid for Distribution of
Dividends and Profits or Payment of 1862686225.19 1846648732.12
Interests
Other Paid Cash Related to
2597195502.261363667384.09
Financing Activities
Subtotal of cash outflow from
5809881727.455763948257.81
financing activities
Net cash flow generated by financing
-4468489688.382463099317.97
activities
IV. Impact of Fluctuation in Exchange
56956344.12-38899297.35
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-3738122448.915648120384.40
Equivalents
Add: Cash and Cash Equivalents
9581289905.323933169520.92
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
5843167456.419581289905.32
End of the Period
2382024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
2024
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity Instruments Gene Minority
Item Other Speci Total
Share Prefer
Less: ral Undistrib Sharehol
Perpetu Capital Compreh al Surplus Sharehold
red Other Treasury Risk uted Others Subtotal
ders'
Capital al Reserves ensive Reser Reserves Equity
ers' Equity
Stock s Share Reser Profits
Bonds Incomes ves
s ves
I. Balance 233340 347191
329446871241274669965993016472311649235884094
at the End 51186.5 73825.4
990.005996.49863.4520.834495.000573.58399.00
of Last Year 5 2
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in
the
Previous
Period
Ot
hers
II. Balance 233340 347191
329446871241274669965993016472311649235884094
at the Start 51186.5 73825.4
990.005996.49863.4520.834495.000573.58399.00
of This Year 5 2
III.--
Increases 1160743. 326412 383654 580371. 105407 130887 1290114
182045187579
or 00 39.37 39.74 50 9213.23 2345.66 431.61
338.8214.05
Decreases
2392024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
in This
Period
(Mark "-"
for
Decreases)
(I) Total
Comprehen 383654 290572 294409 127574 2956851
sive 39.74 8684.03 4123.77 74.21 597.98
Income
(II)
Shareholde
rs' -
1160743.31133021433926793524113266
Contributio 182045
0000.42082.2487.409.64
n and 338.82
Reduction
in Capital
1． Comm
-
on stock 1160743. 324126 215618 21561870
182045
invested by 00 26.39 708.21 8.21
338.82
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
--
Payments 267935 25513961
127962127962
Recorded 87.40 .43
5.975.97
into
Shareholde
rs' Equity
4． Others
(III) Profit 580371. - - - -
Distribution 50 185164 185106 797870 1859047
2402024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
9470.809099.307.94807.24
1． Approp
-
riation of 580371.
580371.
Surplus 50
50
Reserves
2． Approp
riation of
General
Risk
Reserves
3． Distribu
tion to - - - -
Owners (or 185106 185106 797870 1859047
Shareholde 9099.30 9099.30 7.94 807.24
rs)
4． Others
(IV) Internal
Carry-
forward of
Shareholde
rs' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
2412024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
4． Carry-
forward
retained
earnings of
the
variation of
the defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehen
sive
Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
--
150823150823
(VI) Others 503302 48822028
8.958.95
67.72.77
IV. Balance
243881360280
at the End 3295629 715676 564654 104358 164781 114616 37174208
30399.746171.0
of This 733.00 7235.86 524.63 460.57 4866.50 2659.53 830.61
88
Period
Amount of Previous Period
Unit: RMB
Item 2023
2422024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity Instruments Total
Other Speci Genera Minority
Perpe Less: Surplus Undistrib ShareholShare Preferr Capital Compreh al l Risk Sharehold
Capital tual Other
Treasury Reserv uted Others Subtotal ders'
ed Reserves ensive Reser Reserv
ers' Equity
Bond s Share es Profits
Equity
Stocks Incomes ves es
s
I. Balance 15536 178726 258367 262183
303316139502060985936942338157284
at the End 91005. 54791.6 98918.6 71759.3
170.009243.25632.0039.770.72
of Last Year 92 7 1 3
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in
the
Previous
Period
Ot
hers
II. Balance 15536 178726 258367 262183
303316139502060985936942338157284
at the Start 91005. 54791.6 98918.6 71759.3
170.009243.25632.0039.770.72
of This Year 92 7 1 3
III.Increases
or
Decreases
26130783173911368402905069354354613988823778334773966572
in This
20.006753.24231.4581.06489.086394.884906.812.862639.67
Period
(Mark "-"
for
Decreases)
(I) Total
29050673618973909411347539750441
Comprehen
81.062404.523085.585.228480.80
sive
2432024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Income
(II)
Shareholde
rs'
261307848193013684049437779718810574096
Contributio
20.007262.43231.454850.987.342958.32
n and
Reduction
in Capital
1． Comm
on stock 2613078 456902 136840 469349 73966950 543316
invested by 20.00 8534.26 231.45 6122.81 2.56 5625.37
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
Payments 250278 250278 57518604 307797
Recorded 728.17 728.17 .78 332.95
into
Shareholde
rs' Equity
4． Others
---
(III) Profit 93543
190310180956180956
Distribution 489.08
4710.271221.191221.19
1． Approp
-
riation of 93543
935434
Surplus 489.08
89.08
Reserves
2． Approp
riation of
General
2442024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Risk
Reserves
3． Distribu
tion to - - -
Owners (or 180956 180956 180956
Shareholde 1221.19 1221.19 1221.19
rs)
4． Others
(IV) Internal
Carry-
260870260870260870
forward of
0.630.630.63
Shareholde
rs' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the
variation of
the defined
benefit plan
2452024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
5． Other
Carry-
forward
Retained
260870260870260870
Earnings of
0.630.630.63
the
Comprehen
sive
Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
----
(VI) Others 164539 164539 12731576 177270
0509.190509.199.706278.89
IV. Balance
16472233340347191358840
at the End 3294468 712412 746699 659930 1164920
34495.51186.573825.494399.0
of This 990.00 5996.49 863.45 20.83 573.58
00520
Period
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2024
Other Equity Instruments Other
Total
Item Less: Compr
Perpetu Capital Special Surplus Undistribut ShareholShare Capital Preferred Treasury ehensiv Others
al Others Reserves Reserves Reserves ed Profits ders'
Stocks Share e
Bonds Equity
Income
2462024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
s
I. Balance at 355254
688156367746699863.164723424448835
the End of 3294468990.00 02638.5
9.8845495.00337.15
Last Year 8
Add:
Changes in
Accounting
Policies
Corr
ection of
Errors in the
Previous
Period
Oth
ers
II. Balance at 355254
688156367746699863.164723424448835
the Start of 3294468990.00 02638.5
9.8845495.00337.15
This Year 8
III. Increases
or Decreases
---
in This
1160743.007198782.34182045338.580371.5029184610100860
Period (Mark
826.00870.34
"-" for
Decreases)
(I) Total
1559803155980
Comprehensi
364.803364.80
ve Income
(II)
Shareholders
-
' Contribution 187063
1160743.003857141.61182045338.
and 223.43
82
Reduction in
Capital
1． Common -
32412626.3215618
stock 1160743.00 182045338.
9708.21
invested by 82
2472024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
the owner
2． Capital
Invested by
Holders of
Other Equity
Instruments
3． Amount
of Share-
based
--
Payments
28555484.7285554
Recorded
884.78
into
Shareholders
' Equity
4． Others
--
(III) Profit
580371.501851649185106
Distribution
470.809099.30
1． Appropri
ation of -
580371.50
Surplus 580371.50
Reserves
2． Distributi
on to Owners - -
(or 1851069 185106
Shareholders 099.30 9099.30
)
3． Others
(IV) Internal
Carry-
forward of
Shareholders
' Equity
1． Capital
Reserves
Transferred
2482024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehensi
ve Income
6. Others
(V) Special
Reserves
1． Withdraw
al in this
period
2． Used in
This Period
2492024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
334164
(VI) Others 3341640.73
0.73
IV. Balance 354245
688876246564654524.164781424156989
at the End of 3295629733.00 41768.2
2.2263866.50231.15
This Period 4
Amount of Previous Period
Unit: RMB
2023
Other Equity Instruments Other
Compr Speci
Item Total
Share Capital Preferr Perpetu
Capital Less: Treasury ehensiv al Surplus Undistributed Oth
Other Shareholders'
ed al Reserves Share e Reser Reserves Profits ers
s Equity
Stocks Bonds Income ves
s
I. Balance at
3033161170.03788412149.0609859632.01553691005.918562292103.526327696796.5
the End of
090234
Last Year
Add:
Changes in
Accounting
Policies
Corr
ection of
Errors in the
Previous
Period
Oth
ers
II. Balance at
3033161170.03788412149.0609859632.01553691005.918562292103.526327696796.5
the Start of
090234
This Year
III. Increases
or Decreases 3093151530.7 136840231.4
261307820.0093543489.085886543233.629197705842.04
in This 9 5
Period (Mark
2502024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
"-" for
Decreases)
(I) Total
Comprehensi 7787039243.26 7787039243.26
ve Income
(II)
Shareholders
' Contribution 4831835630.3 136840231.4
261307820.004956303218.94
and 9 5
Reduction in
Capital
1． Common
stock 4569028534.2 136840231.4
261307820.004693496122.81
invested by 6 5
the owner
2． Capital
Invested by
Holders of
Other Equity
Instruments
3． Amount
of Share-
based
Payments
262807096.13262807096.13
Recorded
into
Shareholders
' Equity
4． Others
(III) Profit
93543489.08-1903104710.27-1809561221.19
Distribution
1． Appropri
ation of
93543489.08-93543489.08
Surplus
Reserves
2． Distributi -1809561221.19 -1809561221.19
2512024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
on to Owners
(or
Shareholders
)
3． Others
(IV) Internal
Carry-
forward of 2608700.63 2608700.63
Shareholders
' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the defined
benefit plan
5． Other
Carry-
2608700.632608700.63
forward
Retained
2522024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Earnings of
the
Comprehensi
ve Income
6. Others
(V) Special
Reserves
1． Withdraw
al in this
period
2． Used in
This Period
-
(VI) Others 1738684099.6 -1738684099.60
0
IV. Balance
3294468990.06881563679.8746699863.41647234495.024448835337.135525402638.5
at the End of
085058
This Period
2532024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
III. Basic Information about the Company
Zhejiang Dahua Technology Co. Ltd. (hereinafter referred to as "Company" or "the Company") was incorporated
under the official approval document No. 18 [2002] issued by Zhejiang Provincial People's Government Work Leading
Group for Enterprise Listing in June 2002 a stock corporation established on the basis of overall change of the former
Hangzhou Dahua Information Technology Co. Ltd. It was co-founded by five natural persons including Fu Liquan
Chen Ailing Zhu Jiangming Liu Yunzhen and Chen Jianfeng.On April 22 2008 the Company issued 16.8 million shares of common stock in RMB to the general public for the first
time under the approval document No. 573 [2008] Securities Regulatory Issuance issued by China Securities
Regulatory Commission ("CSRC"). It was listed on Shenzhen Stock Exchange on May 20 2008 with a registered
capital of RMB 66.8 million and the change registration filed with Administration for Industry and Commerce was
completed on May 23 2008. The Company's unified social credit code is 91330000727215176K. The Company falls
within the intelligent Internet of Things industry.As of December 31 2024 the Company has issued a total of 3295629733 shares with a registered capital of RMB
3295629733.00 The registered address is No. 1187 Bin'an Road Binjiang District Hangzhou and the headquarters
address is No. 1399 Binxing Road Binjiang District Hangzhou.The main business activities of the Company are: research and development production and sales of AIoT products
and provision of video-centric AIoT solutions and operational services.The actual controllers of the Company are Fu Liquan and Chen Ailing.This financial statement has been approved by the Company's Board of Directors on March 28 2025.IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The Company prepares the financial statement as a going concern based on transactions and matters that have
actually occurred in accordance with the Accounting Standards for Business Enterprises - Basic Standards issued by
the Ministry of Finance and all specific accounting standards application guidelines for accounting standards for
business enterprises explanations on the accounting standards for business enterprises and other related regulations
(hereinafter referred to as "Accounting Standards for Business Enterprises" collectively) and the disclosure provisions
in the Preparation Rules for Information Disclosures by Companies Offering Securities to the Public No. 15 - General
Provisions on Financial Reports issued by the China Securities Regulatory Commission (CSRC).
2. Going concern
This financial statement has been prepared based on the going concern.The Company has the capability to continue as a going concern for at least 12 months as of the end of current
reporting period without any significant item affecting the capability for continuing as a going concern.
2542024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
V. Significant Accounting Polices and Accounting Estimates
The Company follows the principle of materiality when preparing and disclosing this financial statement and
determines the importance of the disclosed matters in terms of both nature and amount based on actual
circumstances.Notes to specific accounting policies and accounting estimates:
The following disclosures cover the specific accounting policies and accounting estimates formulated by the Company
according to the characteristics of its production and operation.
1. Statement on compliance with Accounting Standards for Business Enterprises
This financial statement is in compliance with the requirements in the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and presents truly and completely the financial position of the parent company
and the merged companies as of December 31 2024 and the operating results and cash flows of the parent company
and the merged companies for the year 2024.
2. Accounting period
The fiscal year of the Company is from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company's operating cycle is 12 months.
4. Functional currency
For the domestic operating entities of the Company and its overseas operating entity Dahua Technology (HK) Limited
the functional currency is Renminbi ("RMB"). The other overseas operating entities take the appropriate currency as
the functional currency on the basis of the currency in the major economic environment in which they operate. This
financial statement is presented in RMB.
5. Determination Method and Selection Basis of Importance Standard
□Applicable □ Not applicable
Item Importance standards
Accounts receivable with significant single provision for Individual accruals of 0.5% of total assets at the end of
bad debt reserves the period
Bad debts recovered or reversed of the individual
Significant amount of recovered or reversed bad debt
receivables in the period in excess of 0.5% of the total
provision of accounts receivable in this period
assets at the end of the period
Write-off of individual receivables in excess of 0.5 per
Write-off of important accounts receivable
cent of total assets at the end of the period
Project investment budget in excess of 0.5% of total
Important Projects under Construction
assets
Prepayments over 1 year in excess of 0.1% of total
Significant prepayments aged over 1 year
assets
Significant accounts payable aged over 1 year Payables over 1 year in excess of 0.5% of total assets
2552024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Other significant payable aged over 1 year Receivables over 1 year in excess of 0.5% of total assets
Contractual liabilities over 1 year in excess of 0.5% of
Significant contractual liabilities over 1 year
total assets
Cash Flow from Significant Investment Activities Projects with cash flow exceeding 5% of total assets
Overseas operating entities with one of their total
Significant overseas operating entities assets/total revenues/total profits exceeding 15% of the
Group's
Non-wholly owned subsidiaries with one of their total
Important non-wholly owned subsidiaries assets/total revenues/total profits exceeding 15% of the
Group's
Income from investments in joint ventures or associates
Important joint ventures or associates exceeding 10% of the latest audited net profit of the listed
company
6. The accounting treatment of business combinations involving enterprises under common
control and business combinations not involving enterprises under common control
Business combinations under the same control: The assets and liabilities acquired by the merging party in a business
combination (including goodwill incurred in the acquisition of the merged party by the ultimate controlling party) shall
be measured at the book value of the assets and liabilities of the merged party in the consolidated financial statement
of the ultimate controlling party on the date of combination. The difference between the book value of the net assets
obtained and the book value of the consideration paid for the combination (or total nominal value of the issued shares)
is adjusted to capital premium in capital reserve. Adjustments shall be made to retained earnings in the event that the
share premiums in the capital reserves are not sufficient for write-down.Business combinations not involving enterprises under common control: The cost of combination is the fair value of the
assets paid the liabilities incurred or assumed and the equity securities issued by the acquirer to acquire the control
of the acquiree on the acquisition date. Where the cost of combination is higher than the fair value of the identifiable
net assets acquired from the merging party in business combination such difference shall be recognized as goodwill;
where the cost of combination is less than the fair value of the identifiable net assets acquired from the merging party
in business combination such difference shall be charged to the profit or loss for the period. The identifiable assets
liabilities and contingent liabilities of the acquiree obtained in the combination that satisfy the recognition criteria shal l
be measured by the fair value on the date of acquisition.The fees which are directly related to the business combination shall be recognized as the profit or loss in the period
when the costs are incurred; the transaction expenses of issuing equity securities or debt securities for business
merger shall be initially capitalized for equity securities or debt securities.
7. Judgment Criteria for Control Preparation Method of Consolidated Financial Statements
(1) Judgment criteria for control
The scope of consolidation of the consolidated financial statements is based on controlling interests and includes the
Company and all the subsidiaries. Control means that the Company has the power with respect to the investee to
obtain variable returns by engaging in relevant activities of the investee and has the ability to influence the amount of
its returns by applying its power with respect to the investee.
(2) Preparation method of consolidated financial statements
2562024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company treats the enterprise group as a single accounting entity and prepares the consolidated financial
statements in accordance with the unified accounting policy to reflect the Group's overall financial position operating
results and cash flow. The influence from the internal transactions between the Company and the subsidiaries or
between different subsidiaries shall be eliminated. Internal transactions show that impairment loss of relevant assets
shall be recognized as such loss in full. In preparing the consolidated financial statements where the accounting
policies and the accounting periods are inconsistent between the Company and subsidiaries the financial statements
of subsidiaries are adjusted in accordance with the accounting policies and accounting period of the Company.The shares belonging to minority shareholders in owner's equity the net profit or loss and the comprehensive income
of the subsidiary of the current period are presented separately under the owners' equity in the consolidated balance
sheet the net profits and the total comprehensive income in the consolidated income statement respectively. Where
losses attributable to the minority shareholders of a subsidiary of the current period exceed the minority shareholders'
interest entitled in the shareholders' equity of the subsidiary at the beginning of the period the excess shall be offset
against the equity of minority shareholders.* Acquisition of Subsidiaries or Business
For acquisition of subsidiaries or business due to business combination involving entities under common control during
the reporting period the operating results and cash flow of such subsidiaries or business from the beginning to the end
of the reporting period when the merger occurs are included in the consolidated income statement; and the opening
balance and comparative figures of the consolidated financial statements should be adjusted simultaneously as if the
consolidated reporting entity has been in existence since the beginning of the control by the ultimate controlling party.In connection with imposing control over the investee under common control due to additional investment and other
reasons the equity investment held before gaining the control of the combined party is recognized as relevant profit or
loss other comprehensive income and changes in other net assets at the later of the date of acquisition of the original
equity and the date when the combining and the merged parties are under common control and shall be written down
to the opening balance retained earnings or current profit or loss in the comparative reporting period.Additional subsidiaries or business due to business combination involving entities not under common control during
the reporting period will be included in the consolidated financial statements as of the date of acquisition on the basis
of the fair value of the identifiable assets liabilities or contingent liabilities determined on the date of acquisition.In connection with imposing control over the investee not under common control due to additional investment and
other reasons the equity of acquiree held before acquisition date shall be remeasured at the fair value of such equity
on the acquisition date and the difference between fair value and book value shall be recognized as investment
income in current period. Other comprehensive income that may later be reclassified into profit or loss and changes in
other owner's equity accounted by equity method contained in the acquiree's equity held before the acquisition date
shall be transferred to current investment gains on the date of acquisition.* Disposal of Subsidiaries or Business
a. General Treatment
2572024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
When losing control of the investee due to partial disposal of the equity investment or any other reasons the
remaining equity investment is remeasured at fair value at the date in which control is lost. The sum of consideration
received from disposal of equity investment and the fair value of the remaining equity investment net of the difference
between the sum of the Company's previous share of the subsidiary's net assets recorded from the acquisition date or
combination date and the sum of goodwill is recognized in investment income in the period in which control is lost.Other comprehensive income that may later be reclassified into profit or loss and changes in other owner's equity
accounted by equity method in connection with the equity investment of the original subsidiaries shall be transferred to
the current investment gains when the control is lost.b. Disposal of Subsidiary Achieved by Stages
When the equity investment of subsidiaries is disposed of through multiple transactions until the control is lost such
multiple transactions are generally treated as a package deal if the terms conditions and economic impact of the
transactions to dispose of the subsidiary's equity investment satisfy one or more of the following conditions:
*These transactions are achieved at the same time or the mutual effects on each other are considered;
*A complete set of commercial results can be achieved with reference to the series of transactions as a whole;
*Occurrence of a transaction depends on the occurrence of at least one of the other transactions;
*One transaction recognized separately is not economical but it is economical when considered together with other
transactions.If multiple transactions are recognized as a package deal these transactions shall be subject to accounting treatment
as a transaction to dispose of the subsidiaries and lose control. The differences between the price on each disposal
and disposal of investment on the subsidiary's net assets shall be recognized in other comprehensive income in the
consolidated financial statements and included in profit or loss for the period when the control is lost.If the transactions are not a package deal accounting treatment for partial disposal of equity investments of the
subsidiary without losing control shall be applied before control is lost. When the control is lost general accounting
treatment for disposal of a subsidiary shall be used.* Acquisition of Minority Equity of Subsidiaries
The Company shall adjust the share premium in the capital reserve of the consolidated balance sheet with respect to
any difference between the long-term equity investment arising from the purchase of minority interest and the net
assets attributing to the parent company continuously calculated on the basis of the newly increased share proportion
as of the acquisition date or date of combination or adjust the retained earnings if the share premium in the capital
reserve is insufficient for write-down.* Partial Disposal of Equity Investment in Subsidiaries without Losing Control
The difference between the disposal consideration and the share of net assets in the subsidiaries calculated from
disposal of long-term equity investment as of the date of acquisition or combination date shall be adjusted to share
2582024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
premium in the capital reserve in the consolidated balance sheet. Adjustments shall be made to retained earnings in
the event that the share premiums in the capital reserves are not sufficient for write-down.
8. Classification of joint venture arrangement and accounting treatment methods for joint
operation
Joint venture arrangement is classified into joint operation and joint venture.Joint operation means the joint venture arrangement in which the joint venture parties have the assets and assume the
liabilities related to such arrangement.The Company recognizes the following items related to the share of interests in the joint operation:
(1) The assets separately held by the Company and assets jointly held as recognized by the share of the Company;
(2) The liabilities separately assumed by the Company and liabilities jointly assumed as recognized by the share of the
Company;
(3) Income from selling the share of the Company in the output of the joint operation;
(4) Income from joint operation of the sold output as recognized by the share of the Company;
(5) The expenses separately incurred and expenses jointly incurred as recognized by the share of the Company;
The Company adopts the equity method for the investment of the joint venture. For details refer to this section
Financial Report - V. Significant Accounting Polices and Accounting Estimates - 20. Long-term equity investment.
9. Recognition criteria of cash and cash equivalents
Cash means the cash on hand and deposits that are available for payment at any time of the Company.Cash equivalents mean the investments held by the Company which are short-term highly liquid easy to be converted
into known amounts of cash and have little risk of value change.
10. Conversion of transactions and financial statements denominated in foreign currencies
(1) Foreign currency transactions
Foreign currency transactions are translated into function currency at the spot exchange rate on the day when the
transactions occurred or the exchange rate determined by a systematic and reasonable method that is similar to the
spot exchange rate (hereinafter referred to as the approximate exchange rate of the spot exchange rate).The Balance of foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet
date. The resulting exchange differences are recognized in profit or loss for the current period except for those
differences related to the principal and interest on a specific-purpose borrowing denominated in foreign currency for
acquisitions construction or production of the qualified assets which should be included in current profit and loss.
2592024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. Translation of foreign currency financial statements
All assets and liabilities items in balance sheet are translated based on spot exchange rate on the balance sheet date;
owners' equity items other than "undistributed profit" are translated at a spot exchange rate when accrued. Revenue
and expense items in the income statement are translated at a spot exchange rate at the transaction occurrence date
or the appropriate exchange rate of the spot exchange rate.Cash flows in foreign currencies as well as cash flows from foreign subsidiaries are translated at the spot exchange
rate on the day when the cash flows occur or the appropriate exchange rate of the spot exchange.For disposal of overseas operation the translation difference as stated in the foreign currency financial statements
relating to overseas operation is accounted for in the profit and loss account in the current period from owners' equity
items.
11. Financial instruments
A financial asset financial liability or equity instrument is recognized when the Company becomes a party to the
financial instrument contract.
(1) Classification of the financial instruments
According to the Company's business model for management of the financial assets and the contractual cash flow
features of the financial assets the financial assets when initially recognized are classified as: financial assets at
amortized cost financial assets at fair value through other comprehensive income (debt instruments) and financial
assets at fair value through profit or loss.The financial assets which satisfy the following conditions and are not designated as financial assets at fair value
through profit or loss will be classified by the Company as financial assets at amortized cost:
* The business model is designed to collect the contractual cash flow;
* The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal
amount.The financial assets which satisfy the following conditions and are not designated as financial assets at fair value
through profit or loss will be classified by the Company as the financial assets (equity instruments) at fair value through
other comprehensive income:
* The business model is designed to both collect the contractual cash flow and sell the financial assets;
* The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal
amount.For non-trading investments in equity instruments the Company may at the time of initial recognition irrevocably
designate them as financial assets (equity instruments) at fair value through other comprehensive income. Such
2602024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
designation is based on the individual investments and relevant investments fall within the definition of the equity
instrument from the perspective of the issuer.Except for the financial assets at amortized cost and financial assets at fair value through other comprehensive
income all the remaining financial assets are classified as the financial assets at fair value through profit or loss. At the
time of initial recognition the financial assets which should have been classified as financial assets at amortized cost
or financial assets at fair value through other comprehensive income can be irrevocably designated by the Company
as financial assets at fair value through profit or loss if the accounting mismatch can be eliminated or significantly
reduced.The financial liabilities when initially recognized are classified as: financial liabilities at fair value through profit or loss
and financial liabilities at amortized cost.Financial liabilities which meet one of the following conditions will be when initially measured designated as financial
liabilities at fair value through profit or loss:
* Such designation may be able to eliminate or significantly reduce the accounting mismatch;
* The portfolio of financial liabilities or the portfolio of financial assets and financial liabilities shall be subject to
management and performance evaluation on the basis of fair value according to the enterprise risk management or
investment strategy contained in the formal documentations and a report shall be made to the key management
personnel within the enterprise on this basis;
* Such financial liabilities shall contain embedded derivatives to be split separately.
(2) Recognition and measurement of financial instruments
* Financial assets at amortized cost
Financial assets at amortized cost include notes receivable accounts receivable other receivables long-term
receivables and creditors investment which shall be initially measured at fair value and the relevant transaction
expenses should be initially capitalized; The accounts receivable that do not contain material financing compositions
and those for which the Company decides to not take into account the financing compositions of no more than one
year shall be initially measured at the contract transaction price.The interest calculated by effective interest method during the holding period is recorded into the current profit and
loss.At the time of recovery or disposal the difference between the price obtained and the book value shall be included in
the current profit or loss.* Financial assets measured at fair value and whose changes are included in other comprehensive income (debt
instruments)
Financial assets measured at fair value and its changes are included in other comprehensive income (debt
instruments) include receivables financing and investments in other creditor's rights. They are initially measured at fair
2612024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
value and the relevant transaction expenses should be initially capitalized. These financial assets are subsequently
measured at fair value and the change in fair value other than the interest the impairment loss or profit and the profit
or loss on foreign exchange shall be included in other comprehensive income.Upon derecognition the cumulative profits or losses previously included in other comprehensive income shall be
removed from other comprehensive income and included in the profit or loss for the period.* Financial assets measured at fair value and whose changes are included in other comprehensive income (equity
instruments)
Financial assets at fair value through other comprehensive income (equity instruments) include investment in other
equity instruments. They are initially measured at fair value and the transaction expenses shall be initially capitalized.These financial assets are subsequently measured at fair value and the change in fair value shall be included in other
comprehensive income. The dividends obtained shall be included in the profit or loss for the period.Upon derecognition the cumulative profits or losses previously included in other comprehensive income shall be
removed from other comprehensive income and included in the carry-forward retained earnings.* Financial assets measured at fair value through profit or loss in this period
Financial assets at fair value through profit or loss include trading financial assets derivative financial assets and
other non-current financial assets. They are initially measured at fair value and the transaction expenses related to
them are included in the current profit or loss. These financial assets are subsequently measured at fair value and the
change in fair value shall be included in the profit or loss for the period.* Financial liabilities at fair value through profit or loss in this period
Financial liabilities at fair value through profit or loss include trading financial liabilities and derivative financial liabilities.They are initially measured at fair value and the transaction expenses related to them are included in the profit or loss
for the period. These financial liabilities are subsequently measured at fair value and the change in fair value shall be
included in the profit or loss for the period.Upon derecognition the difference between their book value and the consideration paid is included in the profit or loss
for the period.* Financial liabilities at amortized cost
Financial liabilities at amortized cost include short-term loans notes payable accounts payable other payables long-
term loans bonds payable and long-term payables. They are initially measured at fair value and the transaction
expenses shall be initially capitalized.The interest calculated by effective interest method during the holding period is recorded into the current profit and
loss.Upon derecognition the difference between the consideration paid and the book value of these financial liabilities is
included in the current profit or loss.
2622024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Derecognition and transfer of financial assets
When one of the following conditions is met financial assets are derecognized by the Company:
* The contractual right to receive cash flows from financial assets is terminated;
* The financial assets have been transferred and nearly all the risks and rewards related to the ownership of the
financial assets have been transferred to the transferee;
* The financial assets have been transferred and although the Company neither transfers or retains all the risks and
rewards related to the ownership of the financial assets the Company retains no control of the financial assets;
If the Company modifies or renegotiates the contract with the counterparty which constitutes a substantial modification
the original financial assets will be derecognised and a new financial asset will be recognized according to the
modified terms.The financial assets when transferred will not be derecognized if the Company has retained nearly all the risks and
rewards related to the ownership of the financial assets.The substance-over-form principle shall be adopted while making judgment on whether the transfer of financial assets
satisfies the above conditions for termination of recognition.The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of an entire
financial asset satisfies the conditions for termination of recognition the difference between the two amounts below
shall be recorded into profit or loss for the period:
* The book value of the financial asset transferred;
* The consideration received as a result of the transfer plus the accumulative amount of the change in fair value
previously recorded into the owners' equity (in cases where the transferred financial assets are financial assets
measured at fair value and whose changes are included in other comprehensive income (debt instruments)).If the partial transfer of financial assets satisfies the conditions for termination of recognition the overall book value of
the transferred financial asset shall be apportioned according to their respective relative fair value between the
recognition terminated part and the remaining part and the difference between the two amounts below shall be
recorded into profit or loss for the current period:
* The book value of the recognition terminated portion;
* The sum of consideration of the derecognised portion and the corresponding portion of accumulated change in fair
value previously recorded into owners' equity (in cases where the transferred financial assets are financial assets
measured at fair value and whose changes are included in other comprehensive income (debt instruments)).Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition with the
consideration received recognized as a financial liability.
2632024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(4) Derecognition of financial liabilities
When the current obligation under a financial liability is completely or partially discharged the recognition of the whole
or relevant portion of the liability is terminated; an agreement is entered between the Company and a creditor to
replace the original financial liabilities with new financial liabilities with substantially different terms terminate the
recognition of the original financial liabilities as well as recognize the new financial liabilities.If all or part of the contract terms of the original financial liabilities are substantially amended the recognition of the
original financial liabilities will be terminated in full or in part and the financial liabilities whose terms have been
amended shall be recognized as a new financial liability.When recognition of financial liabilities is terminated in full or in part the difference between the book value of the
financial liabilities terminated and the consideration paid (including transferred non-cash assets or new financial liability)
is recognized in profit or loss for the current period.Where the Company repurchases part of its financial liabilities the book value of such financial liabilities will be
allocated according to the relative fair value between the continued recognized part and terminated part on the
repurchase date. The difference between the book value of the financial liabilities terminated and the consideration
paid (including transferred non-cash assets or new financial liability) is recognized in profit or loss for the current period.
(5) Method of determining the fair values of financial assets and liabilities
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active
market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation
technique. The Company uses the valuation technique when it is applicable under current conditions and there are
enough available data and other information to support and the technique should maximize the use of relevant
observable. It chooses the inputs which are consistent with the asset or liability's characteristics considered by market
participants in the transaction of the relevant asset or liability and makes the maximum use of relevant observable
inputs. Unobservable inputs are used under the circumstance that the relevant observable inputs cannot be obtained
or not feasible.
(6) Test method and accounting treatment for impairment of financial assets
The Company uses impairment accounting for the financial assets at amortized cost the financial assets at fair value
through other comprehensive income (debt instruments) and the financial guarantee contracts on the basis of the
expected credit loss.Taking into the reasonable and well-grounded information including past matters current situation and prediction of
future economic conditions the Company calculates the possibly weighted amount of the present value of the
difference between the cash flows receivable under the contract and the cash flows expected to be received taking
the risk of default as the weight and recognizes the expected credit loss.The Company will always measure the loss provision for the accounts receivable and contract assets arising from the
transactions regulated by “Accounting Standard for Business Enterprises No.14 — Revenue” whether they contain
material financing compositions or not by the amount of the expected credit loss throughout the duration.
2642024 Annual Report of Zhejiang Dahua Technology Co. Ltd.For the lease receivables resulting from transactions governed by “Accounting Standard for Business EnterprisesNo.21 — Leasing” the Company will always measure the loss provision for the accounts receivable by the amount of
the expected credit loss throughout the duration.The Company assesses the changes in credit risk of other relevant financial instruments since initial recognition at
each balance sheet date.By comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial
recognition date the Company determines the relative change in the risk of default over the expected life of financial
instruments to assess whether the credit risk of financial instruments has increased significantly since initial
recognition. If the financial instrument becomes overdue for more than 30 days the Company believes that the credit
risk of this financial instrument has been significantly increased unless there are concrete evidence that the credit risk
of this financial instrument has not been significantly increased upon initial recognition.If the financial instrument carries low credit risk at the balance sheet date the Company believes that the credit risk of
this financial instrument is not significantly increased upon initial recognition.If the credit risk of this financial instrument has been significantly increased upon initial recognition the Company
measures its loss provision in accordance with the amount equivalent to the expected credit loss of the financial
instrument throughout the duration; if the credit risk of this financial instrument is not significantly increased upon initial
recognition the Company will measure the loss provision of this financial instrument by the amount of its expected
credit loss in the 12 months to come. The increased or reversed amount of the loss provision resulting therefrom is
included in the current profit or loss as the impairment loss or profit. For financial assets (debt instruments) at fair value
through other comprehensive income the loss provision is recognized in other comprehensive income and the
impairment loss or gain is included in current profits or losses without reduction in the book value of the financial asset
as stated in the balance sheet.If there are objective evidences showing that a certain receivable has been subject to credit impairment the Company
will accrue impairment provision for the receivable on the individual asset basis.Except for the above-mentioned accounts receivable for which an individual provision for bad debts has been made
the Company divides other financial instruments into several combinations based on their credit risk characteristics
and determines expected credit losses on the basis of the combinations. The Company's combination categories and
determination basis of expected credit losses for notes receivable accounts receivable accounts receivable financing
other receivables contract assets (including contract assets presented in other non-current assets) and long-term
receivables (including long-term receivables due within one year presented in non-current assets due within one year)
are as follows:
Item Combination
Determination Basis
Categories
The expected credit loss is calculated by default risk Notes receivable
exposure and the expected credit loss rate for the
Type of Notes entire extension based on historical credit loss
Receivables Financing experience in combination with current conditions
and predictions of future economic conditions.The expected credit loss is calculated by default risk
Aging
Accounts receivable other receivables exposure and the expected credit loss rate for the combination
entire extension based on historical credit loss
2652024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
experience in combination with current conditions
and predictions of future economic conditions.The expected credit loss is calculated by default risk
exposure and the expected credit loss rate for the
Affiliated
Accounts receivable other receivables entire extension based on historical credit loss combined
experience in combination with current conditions
and predictions of future economic conditions.The expected credit loss is calculated by default risk
Contract assets (including contract exposure and the expected credit loss rate for the
Nature of the
assets presented in other non-current entire extension based on historical credit loss fundsassets) experience in combination with current conditions
and predictions of future economic conditions.The expected credit loss is calculated by default risk
Long-term receivables (including long-
exposure and the expected credit loss rate for the
term receivables due within one year Nature of the
entire extension based on historical credit loss presented in non-current assets due funds
experience in combination with current conditions within one year)
and predictions of future economic conditions.If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered as a
whole or in part the book balance of such financial assets will be directly reduced.
12. Notes Receivable
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial
instruments
13. Accounts Receivable
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial
instruments
14. Receivables Financing
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial
instruments
15. Other Receivables
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial
instruments
16. Contract Assets
(1) Recognition method and criteria of contract assets
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between
performance obligations and customer payments. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (and such right depends on other factors than passing of
time) are presented as contract assets. The contract assets and contract liabilities under the same contract are
presented in net amount. The Company separately presents the right possessed to collect consideration from
customers unconditionally (only depending on the passing of time) as accounts receivable.
2662024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Determination method and accounting treatment method for the expected credit loss of contract assets
For details refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial instruments
17. Inventory
(1) Category of inventory
Inventories are classified as raw materials work-in-progress commodity stocks contract performance cost and
materials commissioned for processing.The inventories are initially measured at cost which comprises the cost of purchase cost of conversion and other
expenditure incurred in bringing the inventories to their present location and condition.
(2) Determination of cost
Cost of inventories is determined using the weighted average method.
(3) Basis for the determination of net realizable value and different type of inventories
At the balance sheet date inventories are measured at the lower of cost and net realizable value. When the cost of
inventories is higher than their net realizable value reserve for stock depreciation shall be accrued. The net realizable
value means the amount after deducting the estimated cost of completion estimated selling expenses and relevant
taxes from the estimated selling price of inventories in the daily activities.Net realizable value of held-for-sale commodity stocks such as finished goods goods-in-stock and held-for-sale raw
materials during the normal course of production and operation shall be determined by their estimated sales less the
related selling expenses and taxes; the net realizable value of material inventories which need to be processed
during the normal course of production and operation shall be determined by the amount after deducting the
estimated cost of completion estimated selling expenses and relevant taxes from the estimated selling price of
finished goods; the net realizable value of inventories held for execution of sales contracts or labor contracts shall be
calculated on the ground of the contracted price. If an enterprise holds more inventories than the quantity stipulated in
the sales contract the net realizable value of the exceeding part shall be calculated on the ground of general selling
price.If the Company accrues the provision for impairment of inventories on a combination basis the combination categories
and determination basis as well as the basis for determination of the net realizable value of different types of inventory
are as follows:
Combination Categories of Determination Basis for Combination Basis for the Determination of Net
Inventories Realizable Value
Raw materials Categories of Inventories
Estimated selling price of inventories -
Work-in-progress Categories of Inventories Estimated costs until completion -
Finished goods Categories of Inventories Estimated selling expenses - Related
Contract Performance Costs Categories of Inventories taxes
2672024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
If the factors influencing the write-down of the inventory value have disappeared resulting in higher net realizable
value of inventories than their book value after the reserve for stock depreciation is accrued a reversal shall apply in
the amount of reserve for stock depreciation previously accrued and the reserved amount shall be included in the
current profit or loss.
(4) Inventory system
The perpetual inventory system is adopted.
(5) Amortization of low-value consumables and packaging materials
* Low-value consumables are amortized using the immediate write-off method;
* Packaging materials are amortized using the immediate write-off method.
18. Holding assets for sale
(1) Recognition criteria and accounting treatment
An asset of which the book value is recovered mainly through sale (including exchange of non-monetary asset of a
commercial nature) rather than non-continuous use of a non-current asset or disposal group is classified as a holding
asset for sale.A non-current asset or disposed group is classified by the Company as holding for sale if it meets the following criteria
at the same time:
* Immediate sale could be made under the current circumstances in accordance with the convention of selling such
kind of assets or disposal groups in similar transactions;
* Selling is highly likely to occur i.e. the Company has made a resolution on a sales plan and obtained confirmed
purchase commitments and the sales is predicted to be completed within 1 year. If required by relevant provisions that
selling shall only be made after approved by the relevant competent authority or supervision department of the
Company such approval should have been obtained.If the book value of the non-current assets (excluding financial assets deferred income tax assets and assets to
constitute payroll payable) or disposal groups classified as holding for-sale assets is higher than the net amount after
deducting the selling expenses from the book value the book value will be written down to the net amount after
deducting the selling expenses from the fair value and the amount written down will be recognized as the impairment
loss of assets and included in the current profit or loss. At the same time the impairment provision for holding for-sale
assets will be accrued.
(2) Recognition criteria and presentation of discontinued operations
2682024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Termination of business is a separately distinguishable constituent part that satisfies one of the following conditions
and that has been disposed of or classified by the Company as held for sale:
* This constituent part represents an independent primary business or a separate principal operating area;
* This constituent part is part of an associated plan to dispose an independent primary business or a separate
principal operating area;
* This constituent part is a subsidiary acquired for resale.The profit or loss from going concern and the profit or loss from discontinued operation will be separately presented in
the income statement. The operating profit or loss and the profit or loss from disposal including impairment loss and
reversed amount from discontinued operation will be presented as the profit or loss from discontinued operation. For
the discontinued operation presented in the current period the Company will present the information previously
presented as the profit or loss from going concern as the profit or loss from discontinued operation during the
comparable accounting period.
19. Long-term Receivables
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial
instruments
20. Long-term Equity Investments
(1) Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement and exists only when requiring the
unanimous consent of the parties sharing control before making decisions about the relevant activities of the
arrangement. The Company together with the other joint venture parties can jointly control over the investee and are
entitled to the right of the net assets of the investee as the investee is joint venture of the Company.Significant influence refers to the power to participate in making decisions on the financial and operating policies of an
enterprise but not the power to control or jointly control the formulation of such policies with other parties. Where the
Company can exercise significant influence over the investee the investee is an associate of the Company.
(2) Determination of initial investment cost
* Long-term equity investments formed through business combination
For the long-term equity investment in the subsidiaries arising from business combination involving entities under
common control the initial investment cost of the long-term equity investment is the share with reference to the book
value of the shareholders' equity of the merged party in the consolidated financial statements of the ultimate controlling
party on the date of combination. The share premium in the capital reserve shall be adjusted according to the
difference between the initial investment cost of the long-term equity investment and the carrying amount of the
consideration paid; if the share premium in the capital reserve is insufficient to offset the retained earnings shall be
adjusted. In connection with imposing control over the investee under common control as a result of additional
2692024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
investment and other reasons the share premium shall be adjusted according to the difference between the initial
investment cost of the long-term equity investment as recognized by the above principle and the carrying value of the
long-term equity investment before combination and the sum of carrying value of newly paid consideration for
additional shares acquired on the date of combination. If the share premium is insufficient for write-down the retained
earnings shall be offset.For the long-term equity investment in the subsidiaries arising from business combinations involving entities not under
common control the cost of the combination ascertained on the date of acquisition shall be taken as the initial
investment cost of the long-term equity investment. In connection with imposing control over the investee not under
common control as a result of additional investment and other reasons the initial investment cost shall be the sum of
the book value of the equity investment originally held and the newly increased initial investment cost.* Long-term equity investments acquired by the means other than business combination
The initial cost of a long-term equity investment obtained by cash payment shall be the purchase costs actually paid.The initial cost of investment of a long-term equity investment obtained by means of issuance of equity securities shall
be the fair value of the equity securities issued.
(3) Subsequent measurement and recognition of profit or loss
* Long-term equity investment calculated by cost method
Long-term equity investment in subsidiaries of the Company is calculated by cost method unless the investment
meets the conditions for holding for sale. except for the actual consideration paid for the acquisition of investment or
the declared but not yet distributed cash dividends or profits which are included in the consideration investment gains
are recognized as the Company' shares of the cash dividends or profits declared by the investee.* Long-term equity investment accounted for by equity method
Long-term equity investments of associates and jointly controlled entities are calculated using equity method. Where
the initial investment cost of the long-term equity investment exceeds the investor's interest in the fair value of the
investee's identifiable net assets at the acquisition date no adjustment shall be made to the initial investment cost;
where the initial investment cost is less than the investor's interest in the fair value of the investee's identifiable net
assets at the acquisition date the difference shall be charged to the profit or loss for the current period. At the same
time the cost of the long-term equity investment shall be adjusted.The Company recognizes the investment income and other comprehensive income according to the shares of net
profit or loss and other comprehensive income realized by the investee which it shall be entitled or shared respectively
and simultaneously makes adjustment to the book value of long-term equity investment; The book value of long-term
equity investment shall be reduced by attributable share of the profit or cash dividends for distribution declared by the
investee. In relation to other changes in the owner's equity except for net profits and losses other comprehensive
income and profit distributions of the investee (hereinafter referred to as “Changes in Other Owner's Equity”) the book
value of the long-term equity investment shall be adjusted and included in owner's equity.
2702024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
When determining the amount of proportion of net profit or loss other comprehensive income and other changes in the
owner's equity in the investee which it entitles the fair value of each identifiable net assets of the investee at the time
when the investment is obtained shall be used as basis and according to the accounting policies and accounting
period of the Company adjustment shall be made to the net profit and other comprehensive income of the investee.The unrealized profit or loss resulting from transactions between the Company and its associates or joint venture shall
be eliminated in proportion to the investor's equity interest of investee based on which investment income or loss shall
be recognized except for those assets invested or sold constituting a business. Any losses resulting from transactions
which are attributable to impairment of assets shall be fully recognized.The net loss incurred by the Company to the joint ventures or affiliates is capped when the carrying amount of long-
term equity investment and the long-term equity that substantially constitutes the net investment in the joint ventures or
affiliates have been written down to zero except to the extent that the Company has an additional loss obligation. If
the joint ventures or affiliates later realize net profit the Company will resume recognition of the income share after the
income share makes up the unrecognized loss share.* Disposal of long-term equity investments
For disposal of long-term equity investment the difference between the book value and the consideration actually
received shall be included in the current profit or loss.If the remaining equity is still subject to the equity method in partial disposal of the long-term equity investment under
the equity method other comprehensive income recognized in the original equity investment shall be carried forward
at the appropriate proportion on the same basis used by the investee for direct disposal of relevant assets or liabilities
and other changes in the owner's equity shall be carried forward into the current profit or loss at the appropriate
proportion.When losing the control or material influence over the investee due to disposal of the equity investment and other
reasons other comprehensive income recognized in the original equity investment due to adoption of the equity
method shall be subject to accounting treatment on the same basis used by the investee for direct disposal of relevant
assets or liabilities when ceasing to use the equity method and other changes in the owner's equity shall be carried
forward into the current profit or loss in full when ceasing to use the equity method.If the control over the investee is lost due to partial disposal of the equity investment and other reasons and if the
remaining equities can exercise common control or material influence over the investee in preparing the individual
financial statements the remaining equities shall be accounted by the equity method and shall be adjusted as if such
remaining equities have been accounted for under the equity method since they are obtained. Other comprehensive
income recognized before the control over the investee is obtained shall be carried forward pro rata on the same basis
used by the investee for direct disposal of relevant assets or liabilities and other changes in the owner's equity
recognized under the equity method shall be carried forward into the current profit or loss pro rata. The remaining
equities which cannot exercise common control or material influence over the investee shall be recognized as financial
assets and the difference between their fair value and book value on the date when the control is lost shall be
included in the current profit or loss.
2712024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Other comprehensive income recognized and other changes in the owner's equity recognized before the control over
the investee is obtained shall be carried forward in full. If the disposal of the equity investment in the subsidiaries
through multiple transactions until loss of the control is a package deal each transaction shall be subject to accounting
treatment as a transaction to dispose of the equity investment in the subsidiaries and to lose the control; the difference
between the price for each disposal before loss of the control and the book value of the long-term equity investment of
the equity disposed of shall be first recognized as other comprehensive income in the individual financial statements
and shall then be carried forward to the profit or loss for the very period when the control is lost. If it is not a package
deal each transaction shall be subject to accounting treatment.
21. Investment Properties
Investment property refers to the real estate held to generate rental income or capital appreciation or both including
leased land use rights land use rights held for transfer after appreciation and leased buildings (including buildings that
are leased after completion of self-construction or development activities and buildings in construction or development
that are used for rental in the future).The Company adopts the cost mode to measure the existing investment property. The subsequent expenditure related
to the investment property will be included in the cost of the investment property when relevant economic benefits are
likely to flow in and costs can be measured reliably or otherwise be included in the current profit or loss when
occurred. Investment property measured at cost - buildings held for leasing shall adopt the same depreciation policy
for fixed assets of the company land use rights held for leasing shall adopt the same amortization policy for the
intangible assets.
22. Fixed Assets
(1) Conditions of Recognition
Fixed assets are tangible assets that are held for use in the production or supply of goods or services for rental to
others or for administrative purposes; and have a service life of more than one fiscal year. Fixed asset is recognized
when it meets the following conditions: * It is probable that the economic benefits associated with the fixed asset will
flow to the enterprise; * Its cost can be reliably measured.The fixed assets are initially measured at cost (with the impact of predicted discard expense taken into account).The subsequent expenditure related to the fixed assets will be included in the cost of the fixed assets when the
economic benefits in connection therewith are likely to flow in and costs can be measured reliably; the book value of
the replaced part will be derecognized; all other subsequent expenditure will be included in the current profit or loss
when occurred.
(2) Methods for depreciation
Fixed assets are depreciated by categories using the straight-line method and the annual depreciation rates are
determined by categories based upon their estimated useful lives and their estimated residual values. Where the parts
of a fixed asset have different useful lives or cause economic benefits for the enterprise in different ways different
depreciation rates or depreciation methods shall apply and each part is depreciated separately.
2722024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
The depreciation methods depreciation periods residual ratios and annual depreciation rates of various types of fixed
assets are as follows:
Useful lives of Annual depreciation
Category Depreciation method Residual Ratio
depreciation rate
Housing and building Straight-line method 20 5% 4.75%
Machinery and
Straight-line method 5-10 5% 19.00%-9.50%
equipment
Means of transport Straight-line method 4-8 5% 23.75%-11.88%
Electronic and other
Straight-line method 3-5 5% 31.67%-19.00%
equipment
(3) Disposal of Fixed Assets
When fixed assets are disposed of or when no economic benefits can be expected through use or disposal thereof
such fixed assets will be derecognized. The income from disposal of the fixed assets through sale transfer scrapping
or damage with the book value thereof and relevant taxes deducted is included in the current profit or loss.
23. Construction in Progress
The projects under construction are measured at the actual cost. The actual cost comprises the building cost
installation cost borrowing cost qualified for capitalization and other necessary expenditures incurred to bring the
projects under construction to the conditions before they are made ready for the intended use. The projects under
construction will be converted into fixed assets when they are ready for intended use and will be depreciated from the
next month on. The standards and time points for conversing the Company’s projects under construction into fixed
assets are as follows:
Category The standards and time points for conversing into fixed assets
Housing and building The completion and fire inspection and water and electricity supply are
completed as well as the conditions for occupancy are met.Machinery and equipment The equipment installation and debugging is completed and is ready for use.Electronic and other equipment The equipment installation and debugging is completed and is ready for use.
24. Borrowing costs
(1) Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition construction or production
of assets qualified for capitalization the costs will be capitalized and included in the costs of the related assets. Other
borrowing costs shall be recognized as expense in the period in which they are incurred and included in profit or loss
for the current period.Assets qualified for capitalization are assets (fixed assets investment property inventories etc.) that necessarily take
a substantial period of time for acquisition construction or production to get ready for their intended use or sale.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation of capitalization of
borrowing costs excluding the period in which capitalization of borrowing costs is temporarily suspended.
2732024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Capitalization of borrowing costs begins when the following conditions are satisfied simultaneously:
* Asset expenditures (including cash paid transferred non-currency assets or expenditure for holding debt liability for
the acquisition construction or production of assets qualified for capitalization) have been occurred;
* Borrowing costs have been incurred;
* Acquisition construction or production necessary to enable the asset to reach its intended state of serviceability or
marketability have commenced.Capitalization of borrowing costs shall be suspended during periods in which the qualifying asset under acquisition and
construction or production ready for the intended use or sale.
(3) Suspension of capitalization period
Capitalization of borrowing costs shall be suspended during periods in which the acquisition construction or
production of a qualifying asset is interrupted abnormally when the interruption is for a continuous period of more than
3 months; if the interruption is a necessary step for making the qualifying asset under acquisition and construction or
production ready for the intended use or sale the capitalization of the borrowing costs shall continue. The borrowing
costs incurred during such period shall be recognized as profits and losses of the current period. When the acquisition
and construction or production of the asset resumes the capitalization of borrowing costs commences.
(4) Calculation of capitalization rate and amount of borrowing costs
Specific borrowings for the acquisition construction or production of assets qualified for capitalization borrowing costs
of the specific borrowings actually incurred in the current period minus the interest income earned on the unused
borrowing loans as a deposit in the bank or as investment income earned from temporary investment will be used to
determine the amount of borrowing costs for capitalization.General borrowings for the acquisition construction or production of assets qualified for capitalization the to-be-
capitalized amount of interests on the general borrowing shall be calculated and determined by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the specifically
borrowed loans by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated and
determined according to the weighted average interest rate of the general borrowing.During the capitalization the difference between the principal and interest of special borrowings in foreign currency
shall be capitalized and included in the cost of assets qualified for capitalization. The difference between the principal
and interest of the borrowings in foreign currency other than the special borrowings in foreign currency shall be
included in the current profit or loss.
25. Intangible Assets
(1) Service life determination basis estimation amortization method or review procedures
* Valuation method of intangible assets
2742024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
a. Intangible assets are initially measured at cost upon acquisition
The costs of an externally purchased intangible asset include the purchase price relevant taxes and expenses paid
and other expenditures directly attributable to putting the asset into condition for its intended use.b. Subsequent measurement
The service life of intangible assets shall be analyzed and judged upon acquisition.As for intangible assets with a finite service life they are amortized using the straight-line method over the term in
which economic benefits are brought to the firm; If the term in which economic benefits are brought to the firm by an
intangible asset cannot be estimated the intangible asset shall be taken as an intangible asset with indefinite service
life and shall not be amortized.* Estimation of service life of the intangible assets with limited service life
Item Estimated useful lives Basis
Land use rights 40 or 50 years Land use certificate
Non-patented technology 5 to 10 years Expected benefited period
Software 2 to 5 years Expected benefited period
Trademark rights 6 years Expected benefited period
Software copyright 10 years Expected benefited period
For an intangible asset with a finite service life review on its service life and amortization method is performed at the
end of each year.Upon review service life and amortization method for the intangible assets are the same with the previous estimate at
the end of this period.* The basis for the judgment of intangible assets with uncertain service life and the procedure for reviewing their
service life
As at the balance sheet date the Company has no intangible assets with uncertain service life.
(2) The scope of R&D expenditure collection and related accounting treatment methods.
* The scope of R&D expenditure collection
Expenditures incurred by the Company in research and development include the compensation of the employees
engaged in research and development activities consumable materials depreciation and amortization expenses and
other related expenditures.* Specific criteria for the division of research phase and development phase
The expenses for internal research and development projects of the Company are divided into expenses in the
research phase and expenses in the development phase.
2752024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Research phase: Scheduled innovative investigations and research activities to obtain and understand scientific or
technological knowledge.Development phase: Apply the research outcomes or other knowledge to a plan or design prior to a commercial
production or use in order to produce new or essentially-improved materials devices products etc.* Specific condition for capitalizing expenditure during the development phase
Expenses in the research phase are recorded into the profits and losses for the current period when they occur. The
expenses in the development phase are recognized as intangible assets if the following conditions are fulfilled and are
included in the current profit or loss if following conditions are not fulfilled:
a. Complete such intangible asset to make it technically feasible for use or for sale;
b. There is intention to complete the intangible asset for use or sale;
c. The ways in which intangible asset generates economic benefits including there is evidence that the products
produced using the intangible asset has a market or the intangible asset itself has a market; if the intangible asset is
for internal use there is evidence that there exists usage for the intangible asset;
d. There is sufficient support in terms of technology financial resources and other resources in order to complete the
development of the intangible asset and there is capability to use or sell the intangible asset;
e. The expenses attributable to the development stage of the intangible asset can be measured reliably.If the expenses in the research phase and expenses in the development phase cannot be distinguished all the
expenses incurred for R&D are included in the current profit or loss.
26. Impairment of long-term assets
Long-term assets such as long-term equity investment investment properties that are measured at cost fixed assets
construction in progress intangible assets with limited service life and oil and gas assets are tested for impairment if
there is any indication that an asset may be impaired at the balance sheet date. If the result of the impairment test
indicates that the recoverable amount of the asset is less than its book value a provision for impairment and an
impairment loss are recognized for the amount by which the asset's book value exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less costs to sell and the present value of the future cash
flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on the
individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset the recoverable
amount of a group of assets to which the asset belongs to is determined. A group of assets is the smallest group of
assets that is able to generate cash inflows independently.For the goodwill arising from business combination intangible assets with uncertain service life and intangible assets
which are not ready for intended use impairment test shall be conducted at least at the end of each year regardless
of whether there are signs of impairment or not.
2762024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
When the Company carry out impairment test to goodwill the Company shall as of the purchasing day allocate on a
reasonable basis the book value of the goodwill formed by merger of enterprises to the relevant asset groups or if
there is a difficulty in allocation to allocate it to the sets of asset groups. Relevant asset groups or the sets of asset
groups mean those can benefit from the synergy of business combination.For the purpose of impairment test on the relevant asset groups or the sets of asset groups containing goodwill if any
evidence shows that the impairment of asset groups or sets of asset groups related to goodwill is possible an
impairment test will be made first on the asset groups or sets of asset groups not containing goodwill thus calculating
the recoverable amount and comparing it with the relevant book value so as to recognize the corresponding
impairment loss. An impairment test will be made on the asset groups or sets of asset groups containing goodwill to
compare the book value of these asset groups or sets of asset groups with the recoverable amount. Where the
recoverable amount is lower than the book value the amount of impairment loss shall set off and be apportioned to the
book value of the goodwill in the asset groups or sets of asset groups and then set off the book value of other assets
pro rata according to the proportion of the book value of other assets other than the goodwill in the asset groups or
sets of asset groups.Once the above asset impairment loss is recognized it will not be reversed in the subsequent accounting periods.
27. Long-term Deferred Expenses
Long-term deferred expenses are expenses which have occurred but will benefit over 1 year and shall be amortized
over the current period and subsequent periods.The amortization period and amortization method of various expenses are:
Item Amortization Amortization period
method
Improvement expenditure of fixed assets leased by operating Straight-line By period of benefit
lease method
Renovation Cost Straight-line By period of benefit
method
28. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between
performance obligations and customer payments. The Company lists the obligation to transfer commodities or offer
services to customers for the consideration received or receivable from customers as contract liabilities. The contract
assets and contract liabilities under the same contract are presented in net amount.
29. Employee compensation
(1) Accountant treatment of short-term remuneration
During the accounting period when the staff provides service the Company will recognize the short-term remuneration
actually incurred as liabilities and the liabilities would be charged into current profits and loss or costs of assets.
2772024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company will pay social insurance and housing funds and will make provision of trade union funds and staff
education costs in accordance with the requirements. During the accounting period when the staff provides service
the Company will determine the relevant amount of employee benefits in accordance with the required provision basis
and provision ratios.Employee compensation actually incurred by the Company will be included in the current profit or loss or relevant
asset costs when actually incurred in which non-monetary benefits will be measured at the fair value.
(2) Accountant treatment of retirement benefit plan
* Defined contribution plan
The Company will pay basic pension insurance and unemployment insurance in accordance with the relevant
provisions of the local government for the staff. During the accounting period when the staff provides service the
Company will calculate the amount payable in accordance with the local stipulated basis and proportions which will be
recognized as liabilities and the liabilities would be charged into current profits and loss or costs of assets.* Defined benefit scheme
The welfare responsibilities generated from defined benefit scheme based on the formula determined by projected unit
credit method would be vested to the service period of the staff and charged into current profits and loss or costs of
assets.
(3) Accountant treatment of termination benefits
For the dismissal welfare provided to employees the employee compensation liabilities arising from the dismissal
welfare shall be determined at the earliest of the following two and included in the current profits and losses: (1) When
the Company cannot unilaterally withdraw the dismissal welfare provided due to the termination of labor relations plan
or layoff proposal; (2) When the Company determines the costs or expenses associated with the restructuring
involving the payment of dismissal welfare.
30. Estimated Liabilities
The Company shall recognize the obligations related to contingencies as estimated liabilities when all of the following
conditions are satisfied:
(1) The obligation is a present obligation of the Company;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the related
present obligation.
2782024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Factors pertaining to a contingency such as risk uncertainties and time value of money shall be taken into account as
a whole in reaching the best estimate. Where the effect of the time value of money is material the best estimate shall
be determined by discounting the related future cash outflow.The expenses required have a successive range in which the possibilities of occurrence of each result are the same
and the best estimate should be determined as the middle value for the range; in other circumstances the best
estimate will be handled as follows respectively:
(1) For the contingencies involving a single item it will be determined according to the amount most likely to occur;
(2) For the contingencies involving several items it will be determined according to the possible results and the
relevant possibilities.Where some or all of the expenditure required to settle an estimated liability is expected to be reimbursed by a third
party the reimbursement is separately recognized as an asset when it is virtually certain that the reimbursement will
be received. The amount recognized for the reimbursement is limited to the book value of the estimated liability.The Company will review the book value of the estimated liabilities on the balance sheet date and if there are
concrete evidences that such book value cannot reflect the current best estimate the book value will be adjusted
according to the current best estimate.
31. Share-based payment
The Company's share-based payment refers to a transaction in which an enterprise determines the liabilities on the
basis of equity instruments granting or bearing for the acquisition of service from its employees or other parties. The
Company's share-based payment is equity-settled.As to an equity-settled share-based payment in return for services of employees calculation will be based on the fair
value of the equity instrument granted to the employees. The share-based payment transactions vested immediately
after the date of grant will be included in the relevant cost or expense based on the fair value of the equity instrument
on the date of grant and the capital reserve will be increased accordingly. For the services within the waiting period or
the share-based payment transactions that may only be vested when the specified performance conditions are met
after the date of grant the Company will include the services obtained in the current period in relevant cost or expense
and increase the capital reserve at the fair value on the date of grant according to the best estimate of the number of
the exercisable equity instruments on each balance sheet date in the waiting period.If the terms of the equity-settled share-based payment are amended the Company shall recognize the services
received at least based on the situation before the amendment was made. In addition any amendment resulting in the
increase of the fair value of the equity instrument granted or changes that are beneficial to the staff on the amendment
date will be recognized as an increase in the service received.If the equity instruments vested are canceled during the waiting period the Company will take the vested equity
instruments canceled as accelerated exercise and immediately include the amount to be recognized during the
waiting period in the current profit or loss. At the same time the capital reserve will be recognized. However if new
equity instruments are vested and they are verified at the vesting date of new equity instrument as alternatives vested
2792024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
to canceled equity instruments the treatment on the new equity instrument is in conformity with the modified treatment
on disposal of equity instrument.
32. Income
(1) Accounting policies for revenue recognition and measurement
If the Company performed the obligations in the contract revenue shall be recognized when the customer acquires the
right of control over relevant commodities or services. Acquisition of control over relevant commodities or services
means gaining the ability to direct the use of such commodities or services and obtain nearly all the economic benefits
therefrom.If the contract contains two or more performance obligations the Company shall apportion the transaction price to
each individual performance obligation on the contract commencement date according to the relative proportion of the
individual selling price of the commodities or services promised by each individual performance obligation. The
Company measures the revenue according to the transaction price apportioned to each individual performance
obligation.The transaction price refers to the amount of consideration that the Company is expected to be entitled to collect due
to the transfer of commodities or services to customers excluding the payments collected on behalf of third parties
and the payments expected to be returned to customers. The Company will determine the transaction price according
to the contract provisions and its past practices and may take into account the impact from the variable consideration
the major financing components in the contract the non-cash consideration the payable customer consideration and
other factors when determining the transaction price. The Company shall determine the transaction price containing
the variable consideration according to the amount not exceeding the amount by which the accumulative recognized
revenue is much more unlikely to be significantly reversed when relevant uncertainties are eliminated. If there are
major financing components in the contract the Company shall determine the transaction price according to the
amount due assumed to be paid in cash when the customer acquires the control over the commodities or services
and shall amortize the difference between such transaction price and the contract consideration using the effective
interest rate method during the contract period.When one of the following conditions is met it belongs to the performance obligation within a certain period of time or
otherwise it belongs to the performance obligation at a certain point of time:
* The customer acquires and consumes the economic benefits arising from the Company's performance while the
company performs the contract;
* The customer can control the commodities in progress during the Company's performance;
* The commodities produced by the Company during the performance possess have irreplaceable usage and the
company has the right to collect payment for the performance part accumulated so far during the entire contract period.For the performance obligations performed within a certain period of time the Company shall recognize the revenue
according to the performance progress within that period of time except that the performance progress cannot be
reasonably determined. The Company will determine the performance progress through the output or input method by
2802024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
taking into account the nature of commodities or services. If the performance progress cannot be reasonably
recognized and the costs incurred are expected to be compensated the Company will recognize the revenue
according to the amount of costs incurred until the performance progress can be reasonably recognized.For the performance obligations performed at a certain point of time the Company will recognize the revenue when
the customer acquires the right of control over relevant commodities or services. While determining whether the
customer has acquired the control over the commodities or services the Company shall take the following into
consideration:
* The Company has the current collection right for the such commodities or services that is the customer has the
current payment obligation for such commodities or services;
* The Company has transferred the legal title of such commodities to the customer that is the customer already has
the legal title of such commodities;
* The Company has transferred the physical commodities to the customer that is the customer has possessed the
physical commodities.* The Company has transferred the major risks and rewards of the commodity title to the customer that is the
customer has acquired the major risks and rewards of the commodity title.* The customer has accepted such commodities or services.The Company determines whether it is a principal or agent when engaging in transactions based on its control over
the goods or services before transferring them to the customer. The Company is a principal and recognizes its
revenue based on the total amount of consideration received or receivable if it can control the goods or services before
transferring them to the customer; otherwise the Company is an agent and recognizes its revenue based on the
amount of commissions or fees it expects to be entitled to.
(2) Recognition and measurement methods of specific revenue disclosure by type of business
* The principle for revenue recognition of standard product domestic sales: The Company's standard products are
sold to contractors distributors and other customers through a combination of direct selling and distribution. That is
the Company signs a sales contract with the customer and according to the delivery method specified in the sales
contract the Company will deliver the goods to the customer or the customer will pick up the goods. The Company
recognizes revenue after the customer receives the goods;
* The principles for confirming revenue from overseas sales of standard products: For domestic companies that
export directly the main terms used are FOB and CIF and sales revenue is recognized after the products have
cleared customs for export. If a foreign subsidiary sells the goods abroad the goods will be sent to the customer or the
customer will collect the goods according to the delivery method agreed with the customer and the Company will
recognize revenue after the customers receive the goods;
* Principle for recognizing system-integrated sales revenue: The sales of the system-integrated products of the
Company include providing the supporting services such as plan design supporting products installation debugging
and system trial operation. The sales income will be recognized upon acceptance;
* Principle for recognizing the income from labor services: The income is recognized when the labor service is
provided.
2812024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
33. Contract costs
The contract costs comprise the contract performance cost and the cost to obtain a contract.The costs incurred by the Company for contract performance which fall outside the scope of the enterprise accounting
standards such as inventories fixed assets or intangible assets will be identified as an asset of the contract
performance costs upon satisfying all of the following conditions:
1. The costs are directly related to one existing contract or one contract that is expected to be obtained;
(2) The costs enrich the Company's resources for future contract performance;
(3) The costs are estimated to be recovered.
The incremental costs which are incurred by the Company to obtain the contract and are expected to be recovered will
be identified as an asset of the costs to obtain a contract.The assets related to the contract costs will be amortized on the same basis for recognition of the income from
commodities or services related to the assets; but if the amortization period of the costs to obtain the contract is no
more than 1 year the Company will include such costs in the current profit or loss once occurred.In case that the book value of assets related to contract costs is higher than the difference between the two items
below the Company will accrue the impairment provision for the extra part and recognize that part as impairment loss:
(1) Estimated residual consideration to be obtained from transfer of commodities or services related to the assets;
(2) Estimated costs incurred from transfer of relevant commodities or services.
If the factors for impairment in the previous periods are subsequently changed making the aforesaid difference higher
than the book value of the assets the Company will reverse the accrued impairment provision and include it in the
current profit or loss provided that the book value of the reversed assets does not exceed the book value of the assets
without impairment provision accrued on such date of reversal.
34. Government subsidies
(1) Type
Government grants are monetary assets and non-monetary assets acquired by the Company from the government
free of charge. Government grants are classified into government grants related to assets and government grants
related to revenue.Government grants related to assets refer to government grants acquired by the Company for the purpose of
purchasing or constructing or otherwise forming long-term assets. Government grants related to revenue refer to the
government grants other than those related to assets.
(2) Confirmation of time point
2822024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Government subsidies are recognized when the Company is able to meet the conditions attached to them and is able
to receive them.
(3) Accounting treatment
Government grants related to assets shall write off the book value of relevant assets or be recognized as deferred
income. When recognized as deferred income the government grant related to assets will be period by period credited
to the profits and losses of the current period in a reasonable and systematic manner within the service life of relevant
assets (those related to the Company's daily activities shall be recognized as other income; those unrelated to the
Company's daily activities shall be recognized as non-operating revenue).The revenue-related government grants shall be recognized as deferred income if they are used to compensate
relevant expenses or losses in subsequent periods and they shall be included in profit and loss of the current period
(those related to Company's routine activities shall be included in other income; those unrelated to the Company's
routine activities shall be included in non-operating revenue) or used to offset relevant expenses or losses during the
recognition of related expenses or losses; the grants used to compensate related expenses or losses incurred shall be
included in profit and loss of the current period (those related to Company's routine activities shall be included in other
income; those unrelated to the Company's routine activities shall be included in non-operating revenue) or used to
offset relevant expenses or losses.The policy-oriented concessional loan discount interests obtained by the Company will be subject to accounting
treatment in the following two circumstances:
* Where the finance allocates the discount interest funds to the lending bank and the lending bank provides loans to
the Company at the policy preferential interest rate the Company will take the actually received loan amount as the
entry value of the loan and the relevant borrowing costs shall be calculated according to the loan principal and the
policy preferential interest rate;
* If the finance directly allocates the discount interest funds to the Company the Company shall set off the
corresponding discount interest against the relevant borrowing costs.
35. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Income tax comprises current income tax and deferred income tax. Except for the income taxes arising from the
business combination and the transactions or matters that are directly included in the owner's equity (including other
comprehensive income) the Company will include the current income tax and deferred income tax into the current
profit or loss.Deferred income tax assets and deferred income tax liabilities will be calculated and recognized according to the
difference (temporary difference) between the tax basis and the book value of assets and liabilities.Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be available
against which deductible temporary differences can be utilized. For deductible losses and tax credits that can be
reversed in the future period deferred income tax assets shall be recognized to the extent that it is probable that
taxable income will be available in the future to offset the deductible losses and tax credits.
2832024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Save as the exceptions deferred income tax liabilities shall be recognized for the taxable temporary difference.The exceptions where deferred income tax assets and liabilities are not recognized include:
(1) Initial recognition of the goodwill;
(2) Transactions or events that are neither business combinations nor affect profit and taxable income (or deductible
loss) when occurring.Taxable temporary difference related to investment in the subsidiaries affiliates and joint ventures will be recognized
as deferred income tax liabilities unless the Company can control the time to reverse such temporary difference and
such temporary difference is much more unlikely to be reversed in the predictable future. Deductible temporary
difference related to investment in the subsidiaries affiliates and joint ventures will be recognized as deferred income
tax assets when such temporary difference is much more likely to be reversed in the predictable future and is much
more likely to be obtained to deduct the taxable income of the deductible temporary difference.On the balance sheet date the deferred income tax assets and the deferred income tax liabilities will be measured at
the tax rate applicable during the recovery of relevant assets or payment of relevant liabilities as expected according to
the provisions of the tax law.On the balance sheet date the Company will review the book value of the deferred income tax assets. If no sufficient
taxable income is likely to be obtained to offset the benefits of deferred income tax assets in the future the book value
of deferred income tax assets shall be written down. The amount written down shall be reversed when it is likely to
obtain sufficient taxable income.After granted the legal rights of net settlement and with the intention to use net settlement or obtain assets and repay
debt at the same time the net amount after offsetting its current income tax assets and current income tax liabilities
shall be recorded.On the balance sheet date the deferred income tax assets and the deferred income tax liabilities will be presented by
the net amount after offsetting when the following conditions are fulfilled:
(1) The taxpayer is granted the legal rights to settle current income tax assets and current income tax liabilities on a
net basis;
(2) Deferred income tax assets and deferred income tax liabilities are related to income tax to be paid by the same
entity liable for paying tax to the same tax collection and management authority or related to different entities liable for
paying tax but the relevant entity liable for paying tax is intended to apply net settlement of current income tax assets
and liabilities or at the same time obtain assets repay debt whenever every deferred income tax assets and liabilities
with importance would be reversed in the future.
36. Lease
Lease means the contract by which the lessor transfers the right to use the assets to the lessee for a given period to
obtain the consideration. On the commencement of the contract the Company will assess whether the contract is a
2842024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
lease or contains the lease. If a party to the contract conveys the right to control the use of one or more identified
assets for a given period to obtain a consideration this contract is a lease or contains the lease.If a contract contains several individual leases the Company will split the contract and conduct accounting treatment
of each individual lease separately. If a contact contains both lease and non-lease the lessee and the lessor will split
the lease and non-lease parts.If all the following conditions are met the Company will simplify all the lease options without assessing whether the
lease is changed or reassessing the lease classification:
(1) The lease consideration after reduction is less or remains substantially the same compared with the lease
consideration before reduction and the lease consideration may either be undiscounted or discounted by the discount
rate before reduction;
(2) Other terms and conditions of lease are identified without significant change after taking the qualitative and
quantitative factors into full account.
(1) Accounting treatment of leases as a lessee
* Right-of-use assets
The Company recognizes the right-to-use assets for the lease other than short-term lease and low-value asset lease
on the commencement of the lease term. The right-to-use assets are initially measured at cost. which includes:
a. Initial measurement amount of lease liabilities;
b. The lease payment paid on or before the commencement of the lease term; if there are lease incentives the
relevant amount of lease incentives enjoyed shall be deducted;
c. Initial direct cost incurred by the Company;
d. The estimated costs incurred by the Company for dismantling and removing the leased asset restoring the site
where the leased asset is located or restoring the leased asset to the state agreed in the lease terms but excluding
the cost incurred to produce the inventory.The Company will depreciate the right-to-use assets through the straight-line method. If it can be reasonably
recognized that the title of the leased asset is acquired at the expiration of the lease term the Company shall accrue
depreciation within the remaining service life of the leased asset; or otherwise the leased asset shall be depreciated
within the shorter of the lease term and the remaining service life of the leased asset.The Company will determine whether the right-of-use assets are impaired and conduct accounting treatment over the
identified impairment loss according to the principles set out in this section Financial Report - V. Significant Accounting
Polices and Accounting Estimates - 26. Impairment of long-term assets.* Lease liabilities
The Company recognizes the lease liabilities for the lease other than short-term lease and low-value asset lease on
the commencement of the lease term. Lease liabilities shall be initially measured at the present value of the unpaid
lease payments. Lease payments include:
a. Fixed payment (including actual fixed payment) and if there are lease incentives the relevant amount of lease
incentives shall be deducted;
b. Variable lease payment depending on the index or ratio;
c. Predicted payment on the basis of the guaranteed residual value provided by the Company;
d. Exercise price of the call option provided that the Company will exercise such option as reasonably determined;
e. Payment for exercise of the lease termination option provided that the lease term reflects the Company’s future
exercise of the lease termination option.
2852024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
The interest rate implicit in lease is applied by the Company as the discount rate. If the interest rate implicit in lease
cannot be reasonably determined the Company's interest rate on incremental borrowings is applied as the discount
rate.The Company shall calculate the interest expense of the lease liabilities during each period of the lease term at a fixed
periodic interest rate and include it in the current profit or loss or relevant asset cost.The variable lease payment which is not included in the measurement of lease liabilities shall be included in the
current profit or loss or relevant asset cost when actually incurred.If any of the following circumstances happens on commencement of the lease term the Company will remeasure the
lease liabilities and adjust the corresponding right-of-use assets and if the book value of the right-of-use assets has
been reduced to zero but the lease liabilities still need to be further reduced the difference shall be included in the
current profit or loss:
a. When the assessment result of the call option renewal option or termination option is changed or the actual
exercise of the aforesaid option is inconsistent with the original assessment result and the Company remeasures the
lease liabilities at the present value worked out according to the changed lease payment and the revised discount rate;
b. When there are changes in the actual fixed payment the estimated payable amount of guaranteed residual value
or the index or ratio applied to determine the amount of lease payments the Company remeasures the lease liabilities
at the present value worked out according to the changed lease payment and the original discount rate. If the change
in the lease payment originates from the change in the floating interest rate the present value will be calculated using
the revised discount rate.* Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for the short-term lease and low-
value asset lease and records relevant lease payment into the current profit or loss or relevant asset cost according to
the straight-line method in each period of the lease term. Short-term lease means the lease of no more than 12
months and excluding the call option on the commencement of the lease term. Low-value asset lease means a lease
of lower value when the single leased asset is brand-new. If the Company sublets or is expected to sublet the leased
assets the original lease is not a low-value asset lease.* Lease change
If the lease is changed and meets all of the following conditions the Company will conduct accounting treatment with
respect to such lease change as a single lease:
a. Such lease change has expanded the scope of lease by adding the right to use one or more leased assets;
b. The increased consideration and the separate consideration for the expanded part of the scope of lease shall be
equivalent to the amount adjusted according to this contract.If the lease change is not taken as a separate lease for accounting treatment on the effective date of the lease change
the Company will re-apportion the consideration of the changed contract re-determine the lease term and remeasure
the lease liabilities at the present value worked out according to the changed lease payment and the revised discount
rate.If the lease change results in narrower scope of lease or shorter lease term the Company will reduce the book value
of the right-of-use assets accordingly and will include relevant gain or loss from partial or full termination of the lease
in the current profit or loss. If other lease changes result in re-measurement of the lease liabilities the Company will
adjust the book value of the right-to-use assets accordingly.
(2) Accounting treatment of leases as a lessor
On commencement of the lease term the Company will divide the lease into financial lease and operating lease.Financial lease means the lease that has substantially transferred almost all the risks and rewards related to the title of
2862024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
the leased assets whether or not the title will be finally transferred. Operating lease means any lease other than
financial lease. When the Company serves as a lessor of the sublease the sublease will be classified on the basis of
the right-to-use assets resulting from the original lease.* Accountant treatment of operating lease
The lease receipts for the operating lease will be recognized as the rental income according to the straight-line method
during each period of the lease term. The initial direct fee related to the operating lease to be incurred by the Company
will be capitalized and will be apportioned and included in the current profit or loss on the same basis as that for
recognition of the rental income in the lease term. The variable lease payments that are not included in the lease
receipts shall be included in the current profit or loss when they actually occur. In case of a change to the operating
lease the Company will conduct accounting treatment with respect to the changed operating lease as a new lease as
of the effective date of the change and the lease payments received in advance or receivable with respect to the lease
before the change will be taken as the lease receipts for the new lease.* Accounting treatment of financial lease
On the commencement of the lease term the Company will recognize the financial lease receivables for the financial
lease and derecognize the financial lease assets. The Company will take the net lease investment as the entry value
of the financial lease receivables when initially measuring the financial lease receivables. The net lease investment is
the sum of the unguaranteed residual value and the present value of the unreceived lease receipts discounted
according to the interest rate implicit in lease on the commencement of the lease term.The Company will calculate and recognize the interest income during each period of the lease term at a fixed periodic
interest rate. The derecognition and impairment of the financial lease receivables will be subject to accounting
treatment according to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial instruments.The variable lease payments that are not included in the measurement of the net lease investment shall be included in
the current profit or loss when they actually occur.If the financial lease is changed and meets all of the following conditions the Company will conduct accounting
treatment with respect to such change as a single lease:
a. Such change has expanded the scope of lease by increasing the right to use one or more leased assets;
b. The increased consideration and the separate consideration for the expanded part of the scope of lease shall be
equivalent to the amount adjusted according to this contract.If the change in the financial lease is not subject to accounting treatment as a single lease the Company will treat the
changed lease in the following circumstances:
a. If the change takes effect on commencement of the lease term and the lease is classified as operating lease the
Company will conduct accounting treatment with respect to such lease as a new lease as of the effective date of the
lease change and will take the net lease investment before the effective date of the lease change as the book value of
the leased asset;
2872024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
b. If the change takes effect on the commencement date of the lease and such lease is classified as the financial
lease the Company will conduct accounting treatment according to the policy regarding modification or re-negotiation
of the contract in this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial instruments.
(3) Sale and leaseback transaction
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a
sale in accordance with the provisions of this section Financial Report - V. Significant Accounting Polices and
Accounting Estimates - 32. Income.* Acting as a lessee
If the asset transfer in the sale and leaseback transaction is a sale the Company as the lessee shall measure the
right-of-use asset arising from the sale and leaseback according to the part related to the right of use acquired from
the leaseback in the original book value of the asset and only recognize relevant gain or loss on the rights transferred
to the lessor; if the asset transfer in the sale and leaseback transaction is not a sale the Company as the lessee shall
continue to recognize the transferred asset and recognize a financial liability equal to the transfer income. For
accounting treatment of the financial liabilities refer to this section Financial Report - V. Significant Accounting Polices
and Accounting Estimates - 11. Financial instruments.* Acting as a lessor
If the asset transfer in the sale and leaseback transaction is a sale the Company as the lessee shall conduct
accounting treatment with respect to the asset purchase and conduct accounting treatment with respect to the asset
lease according to the policy in the foregoing "(2) Accounting treatment of leases as a lessor"; if the asset transfer in
the sale and leaseback transaction is not a sale the Company as the lessor shall derecognize the transferred asset
but recognize a financial asset equal to the transfer income. For accounting treatment of the financial assets refer to
this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments.
37. Other significant accounting policies and accounting estimates
(1) Repurchase of the Company's shares
The Company's shares repurchased by the Company for reducing the registered capital or rewarding employees shall
be treated as the treasury shares based on the actual amount paid and shall be checked and registered at the same
time. If the repurchased shares are canceled the difference between the actual amount paid for the repurchase and
the total par value of shares calculated based on the par value of the canceled shares and the number of canceled
shares will be set off against the capital reserve. If the capital reserve is insufficient the retained earnings will be
written off; if the repurchased shares are awarded to the employees of the Company it shall be categorized as equity-
settled share-based payment. When the Company receives the payment made by employees who exercise their rights
to purchase such shares the amount shall be used to write off the cost of treasury shares delivered to employees and
the capital reserve in the waiting period and meanwhile the capital reserve (stock premium) shall be adjusted
according to the difference.
2882024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Debt restructuring
* The Company being the creditor
The Company derecognizes creditor’s rights when the contractual right to receive cash flows terminates. In case of
debt restructuring by paying off the debt with assets or converting into equity instruments the Company will recognize
relevant assets when they meet their definition and conditions of recognition.In case of debt restructuring by paying off the debt with assets the Company initially recognizes the transferred non-
financial asset at cost. The cost of inventory includes the fair value of the relinquished claim as well as taxes
transportation fees handling fees and insurance fees and other costs directly attributed to the asset that occur to bring
the asset to its current location and condition. The cost of investment in an associate or joint venture includes the fair
value of relinquished claim and taxes and other costs directly attributed to the asset. The cost of investment property
includes the fair value of relinquished claim and other costs directly attributed to the asset. The cost of fixed assets
includes the fair value of relinquished claim as well as taxes transportation fees handling fees installation fees
service fees for professionals and other costs directly attributed to the asset that occur to bring the asset to its
intended usable condition. The cost of biological assets includes the fair value of relinquished claim as well as taxes
transportation fees insurance fees and other costs directly attributed to the asset. The cost of intangible assets
includes the fair value of relinquished rights and taxes and other costs that are incurred to bring the asset to its
intended use. In case that the debt restructuring by converting debt into equity instruments results in the creditor
converting its creditor’s rights into an equity investment in an associate or joint venture the Company shall measure its
initial investment cost based on the fair value of the relinquished claim and taxes and other costs directly attributable to
the asset. The difference between the fair value of relinquished claim and the book value shall be included in the
current profit or loss.In case of debt restructuring by modifying other clauses the Company recognizes and measures the restructured
creditor's rights according to the Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial Instruments
In case of debt restructuring by paying off debts with multiple assets or combining them the Company first recognizes
and measures the transferred financial assets and restructured creditor's rights according to Financial Report - V.Significant Accounting Polices and Accounting Estimates - 11. Financial instruments in this section and then allocates
the fair value of the relinquished claims to the net amount after deducting the recognized amounts of the transferred
financial assets and the restructured claims in proportion to the fair value of each of the assets other than the
transferred financial assets and based on that determines the costs of the assets separately by the method described
in the preceding paragraph. The difference between the fair value of relinquished claim and the book value shall be
included in the current profit or loss.* The Company as a debtor
The Company derecognizes debts when the present obligation for the liability is discharged.In the case of debt restructuring by paying off debts with assets the Company derecognizes the relevant assets and
the debts when they meet the conditions for derecognition and the difference between the book value of the debts
paid off and that of the transferred assets is included in the current profits and losses.
2892024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
In case of debt restructuring by transferring the debt into equity instruments the Company will derecognize the debt
paid off when it meets the conditions of recognition. The Company initially recognizes equity instruments at their fair
value and at the fair value of the debt paid off if it is not reliable to measure at the fair value of the equity instrument.The difference between the book value of the debt paid off and the amount recognized for the equity instrument shall
be included in current profits and losses.In case of debt restructuring by modifying other clauses the Company recognizes and measures the restructured
creditor's rights according to the Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial Instruments.In case of debt restructuring by paying off debts with multiple assets or combining them the Company recognizes and
measures equity instruments and restructured debts according to the above methods and the difference between the
book value of the debt paid off and the book value of the transferred assets as well as the difference between the
equity instruments and the amount recognized of the restructured debts shall be included in current profits and losses.
38. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□Applicable □ Not applicable
Unit: RMB
Name of
statement item
Contents and causes of changes in accounting policies Impact amount
influence
significantly
On October 25 2023 the Treasury Department ("MOF") issued the
"Interpretation No. 17 of Accounting Standards for Business Enterprises 17"
providing for the "classification of current liabilities and non-current liabilities"
None
the "disclosure of vendor financing arrangements" and the "accounting
treatment for sale and leaseback transactions" effective from January 1
2024.
On August 1 2023 the Ministry of Finance issued the "Interim Provisions on
Accounting Treatment of Enterprise Data Resources" (Cai Kuai [2023] No.
11) which applies to data resources that are recognized as intangible assets
or inventory and other assets in accordance with the relevant provisions of
the Accounting Standards for Business Enterprises as well as data
resources that are legally owned or controlled by the enterprise and are
expected to bring economic benefits to the enterprise but are not recognized
None
because they do not meet the asset recognition conditions. The relevant
accounting treatment also puts forward specific requirements for the
disclosure of data resources. This provision shall come into effect on January
1 2024. Enterprises shall implement this provision using the prospective
application method and data resource-related expenditures that have been
expensed and included in profit and loss before the implementation of this
provision shall no longer be adjusted.On December 6 2024 the Ministry of Finance issued "Interpretation No. 18
of Accounting Standards for Business Enterprises" (Cai Kuai [2024] No. 24
hereinafter referred to as "Interpretation No. 18"). The interpretation shall
come into effect on the date of issuance and enterprises are allowed to See Note
implement it in advance from the year of issuance. Interpretation No. 18
stipulates that when accounting for the estimated liabilities arising from
quality assurance of guarantee types that do not belong to single
2902024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
performance obligations the relevant provisions of "Accounting Standards for
Business Enterprises No. 13 - Contingencies" should be followed. According
to the determined amount of estimated liabilities the "Cost of Main Business"
and "Cost of Other Business" accounts should be debited and the
"Estimated Liability" account should be credited. It should also be listed in the
"Operating Costs" in the income statement and the "Other Current Liabilities"
"Non-current Liabilities Due within One Year" "Estimated Liabilities" and
other items in the balance sheet. When an enterprise implements this
interpretation for the first time if it originally included guarantee-type quality
assurance in "sales expenses" it should make retroactive adjustments in
accordance with the change in accounting policy regarding accruals.Since 2024 the Company has implemented the provisions of "Interpretation No. 18 of the Accounting Standards for
Business Enterprises on the Accounting Treatment of Guarantee-type Quality Assurances that Do Not Belong to
Single Performance Obligations". The main impacts are as follows:
Contents and causes Affected Consolidated Subsidiaries Parent company
of changes in Statement
accounting policies Items 2024 2023 2024 2023
Guarantee-type quality Operating 128232351.85 129050807.84 519020.99 484861.08
assurance is included Cost
in the adjustment of
Sales
"sales expenses". -128232351.85 -129050807.84 -519020.99 -484861.08
Expenses
(2) Changes in significant accounting estimates
□ Applicable □Not applicable
(3) Adjustments to relevant items of financial statements as of the beginning of the year of first
implementation of new accounting standards since 2024
□ Applicable □Not applicable
VI. Taxes
1. Major categories of taxes and tax rates
Tax Type Taxation basis Tax rate
According to the provisions of the tax law the
sales tax shall be calculated on the basis of the
income by selling goods and taxable services. 13% 9% 6% simple collection rate
VAT After deducting the input tax that is allowed to of 5% simple collection rate of 3%
be deducted from the sales tax in the current 0% and tax-free
period the difference shall be the value added
tax
Urban Maintenance and
Actually paid turnover tax 7% 5%
Construction Tax
Enterprise Income Tax Taxable income 15%、16.5%、20%、25%
Education surcharges Actually paid turnover tax 3%
Local Education
Actually paid turnover tax 2%
Surcharges
2912024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
If there are multiple taxpayers with different enterprise income tax rates specify the situation
Name of taxpayer Income tax rate
Zhejiang Dahua Technology Co. Ltd. 15%
Zhejiang Dahua System Engineering Co. Ltd. 15%
Zhejiang HuaRay Technology Co. Ltd. 15%
Zhejiang Huaxiao Technology Co. Ltd. 15%
Zhejiang Huafei Intelligent Technology CO. LTD. 15%
Zhejiang Huaruijie Technology Co. Ltd. 15%
Zhejiang Huayixin Technology Co. Ltd. 15%
Zhejiang Dahua Intelligent IoT Operation Service Co.
15%
Ltd.Zhejiang Huajian Technology Co. Ltd. 15%
Hangzhou Huacheng Software Co. Ltd. 15%
Zhejiang Pixfra Technology Co. Ltd. 15%
Jiangsu Huaruipin Technology Co. Ltd. 15%
Inner Mongolia Dahua Zhimeng Information Technology
15%
Co. Ltd.Guangxi Dahua Zhicheng Co. Ltd. 15%
Guangxi Huacheng Technology Co. Ltd. 15%
Guizhou Meitan Dahua Information Technology Co. Ltd. 15%
Zhejiang Dahua Ju'an Technology Co. Ltd. 20%
Guangxi Dahua Technology Co. Ltd. 20%
Zhejiang Huakong Software Co. Ltd. 20%
Dahua Technology (HK) Limited 16.50%
Hangzhou Xiaohua Technology CO. LTD. 20%
Chengdu Zhichuang Yunshu Technology Co. Ltd. 20%
Chengdu Huishan Smart Network Technology Co. Ltd. 20%
Guizhou Huayi Shixin Technology Co. Ltd. 20%
Zhejiang Zhoushan Digital Development Operation Co.
20%
Ltd.Tianjin Dahua Information Technology Co. Ltd. 20%
Chengdu Huazhiwei Technology Co. Ltd. 20%
Chengdu Dahua Wisdom Information Technology Co.
20%
Ltd.Nanyang Dahua Intelligent Information Technology Co.
20%
Ltd.Xi'an IMOU Zhilian Technology Co. Ltd. 20%
Guangdong Huaxiyue Intelligent Technology Co. Ltd. 20%
Guangxi Dahua Yunlian Information Technology Co. Ltd. 20%
Zhejiang Huajie New Energy Operation Service Co. Ltd. 20%
Shanghai Huashang Chengyue Information Technology
20%
Service Co. Ltd.Tianjin Huajian Technology Co. Ltd. 20%
Qingdao Dahua Ruifa Intelligent Internet of Things
20%
Technology Co. Ltd.Shandong Dahua Digital Intelligence Technology Co. Ltd. 20%
Other domestic companies 25%
Other overseas companies Applicable to local tax rate
2. Preferential tax rate
(1) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body of
Zhejiang Province in 2023 issued by the Office for the Administration of the Certification of National High-tech
Enterprises on December 28 2023 our subsidiaries Zhejiang Huaruijie Technology Co. Ltd. Zhejiang Huajian
2922024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Technology Co. Ltd. Hangzhou Huacheng Software Co. Ltd. and Zhejiang Dahua System Engineering Co. Ltd. were
certified as high-tech enterprises with validity for 3 years. The corporate income tax for this year was paid at a
reduced rate of 15%.
(2) According to the Announcement on the Filing of the High-tech Enterprises Certified and Filed by the Recognized
Institutions of Zhejiang Province in 2024 issued by the Office for the Administration of the Certification of National
High-tech Enterprises on Thursday December 26 2024 our subsidiaries Zhejiang HuaRay Technology Co. Ltd.Zhejiang Huaxiao Technology Co. Ltd. Zhejiang Huayixin Technology Co. Ltd. and Zhejiang Dahua Intelligent IoT
Operation Service Co. Ltd. were certified as high-tech enterprises with a validity period of 3 years. The corporate
income tax for this year was paid at a reduced tax rate of 15%.
(3) According to the Announcement on the Filing of the First Batch of High-tech Enterprises of Zhejiang Province
Certified and Filed in 2023 issued by the Office for the Administration of the Certification of National High-tech
Enterprises on Thursday December 28 2023 our subsidiaries Zhejiang Huafei Intelligent Technology Co. Ltd. and
Zhejiang Pixfra Technology Co. Ltd. were certified as high-tech enterprises validity for 3 years. The corporate income
tax for this year was paid at a reduced rate of 15%.
(4) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body of
Zhejiang Province in 2022 issued by the Office for the Administration of the Certification of National High-tech
Enterprises on December 24 2022 our subsidiaries Zhejiang Huaruijie Technology Co. Ltd. Zhejiang Huajian
Technology Co. Ltd. Hangzhou Huacheng Software Co. Ltd. and Zhejiang Dahua System Engineering Co. Ltd. were
certified as high-tech enterprises with validity for 3 years. The corporate income tax for this year was paid at a
reduced rate of 15%.
(5) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body of
Jiangsu Province in 2023 issued by the Office for the Administration of the Certification of National High-tech
Enterprises on Thursday January 4 2024 our subsidiaries Jiangsu Huaruipin Technology Co. Ltd. was certified as
high-tech enterprises with validity for 3 years. The corporate income tax for this year was paid at a reduced rate of
15%.
(6) According to the Announcement on Tax and Fee Policies to Further Support the Development of Small Low-Profit
Enterprises and Individual Industrial and Commercial Households (Announcement No. 12 of the Ministry of Finance
and the State Administration of Taxation in 2023) and the Announcement on Preferential Income Tax Policies for
Small Low-Profit Enterprises and Individual Industrial and Commercial Households (Announcement No. 12 of the
Ministry of Finance and the State Administration of Taxation in 2023) issued by the Ministry of Finance and the State
Administration of Taxation Announcement of the State Administration of Taxation [2023] No. 6) our subsidiaries -
Zhejiang Dahua Ju'an Technology Co. Ltd. Guangxi Dahua Technology Co. Ltd. Zhejiang Huakong Software Co.Ltd. Hangzhou Xiaohua Technology Co. Ltd. Chengdu Zhichuang Yunshu Technology Co. Ltd. Chengdu Huishan
Smart Network Technology Co. Ltd. Guizhou Huayi Shixin Technology Co. Ltd. Zhejiang Zhoushan Digital
Development Operation Co. Ltd. Tianjin Dahua Information Technology Co. Ltd. Chengdu Huazhiwei Technology
Co. Ltd. Chengdu Dahua Intelligent Information Technology Co. Ltd. Nanyang Dahua Intelligent Information
Technology Co. Ltd. Xi'an IMOU Zhilian Technology Co. Ltd. Guangdong Huaxiyue Intelligent Technology Co. Ltd.Guangxi Dahua Yunlian Information Technology Co. Ltd. Zhejiang Huajie New Energy Operation Service Co. Ltd.Shanghai Huashang Chengyue Information Technology Service Co. Ltd. Tianjin Huajian Technology Co. Ltd.Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co. Ltd. Shandong Dahua Digital Intelligence
Technology Co. Ltd. The part of the annual taxable income that does not exceed 1 million yuan shall be reduced by
25% and included in the taxable income and the corporate income tax shall be paid at a tax rate of 20%; for the part
of the annual taxable income that exceeds 1 million yuan but does not exceed 3 million yuan it shall be reduced by 25%
and included in the taxable income and the corporate income tax shall be paid at a tax rate of 20%.
2932024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(7) According to the Notice of the Ministry of Finance the General Administration of Customs and the State
Administration of Taxation on Tax Policy Issues concerning Further Implementing the Western China Development
Strategy (C.S.H.G. [2011] No. 58) and the Announcement of the Ministry of Finance the State Taxation
Administration and the National Development and Reform Commission on Continuing the Corporate Income Tax
Policies for the Large-Scale Development of Western China (C.S.H.G. [2020] No. 23) the following subsidiaries can
enjoy preferential tax policies related to the Development of the West Regions Program from 2011 to 2030: Inner
Mongolia Dahua Zhimeng Information Technology Co. Ltd. Guangxi Dahua Zhicheng Co. Ltd. Guangxi Huacheng
Technology Co. Ltd. and Guizhou Meitan Dahua Information Technology Co. Ltd. The corporate income tax for this
year was paid at a reduced tax rate of 15%.
(8) According to the Notice on Value-added Tax Policies for Software Products (Cai Shui [2011] No.100) by the
Ministry of Finance and the State Administration of Taxation the sales of software products independently developed
by Zhejiang Dahua Technology Co. Ltd. Zhejiang Dahua System Engineering Co. Ltd. Hangzhou Xiaohua
Technology Co. Ltd. Zhejiang Huafei Intelligent Technology Co. Ltd. (Huafei Intelligent) Jiangsu Huaruipin
Technology Co. Ltd. Zhejiang Huaruijie Technology Co. Ltd. Zhejiang Huaxiao Technology Co. Ltd. (Wisualarm
Technology) Zhejiang PixFra Technology Co. Ltd. Hangzhou Huacheng Software Co. Ltd. and Zhejiang HuaRay
Technology Co. Ltd. shall be subject to a value-added tax at the rate of 13% first and the actual tax burden of more
than 3% will be refunded after being reviewed and approved by the competent tax authorities.
(9) According to the Ministry of Finance and the State Administration of Taxation’s Announcement on the Additional
Value-Added Tax ("VAT") Credit Policy for Advanced Manufacturing Enterprises (Announcement No. 43 [2023]) from
January 1 2023 to December 31 2027 advanced manufacturing enterprises are allowed to deduct an additional 5%
of the value-added tax payable based on the deductible input tax in the current period. Zhejiang Huajian Technology
Co. Ltd. Jiangsu Huaruipin Technology Co. Ltd. Zhejiang Huaruijie Technology Co. Ltd. Zhejiang PixFra
Technology Co. Ltd. and Zhejiang HuaRay Technology Co. Ltd. are entitled to the preferential tax policy for
advanced manufacturing industries during the period in compliance with the provisions of the additional VAT credit
policy for advanced manufacturing industries.VII. Notes to the Items in the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB
Item Closing Balance Opening Balance
Cash on Hand 2584.78 2642.58
Digital Currency 160820.00
Bank Balance 10946929688.16 15827819644.89
Other Cash and Bank Balances 234871150.89 143022007.00
Total 11181803423.83 15971005114.47
Including: Total Amount
1423057560.40930951357.54
Deposited in Overseas Banks
Other notes: Details of monetary funds that are restricted in use due to mortgage pledge or freeze are restricted in
withdrawal due to centralized management of funds and are deposited overseas but restricted in repatriation are as
follows:
Unit: RMB
Item Closing Balance Opening Balance
Bid/performance bond 75635853.99 68981082.99
2942024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Frozen funds 31940849.28 6862600.24
Total 107576703.27 75843683.23
2. Trading Financial Assets
Unit: RMB
Item Closing Balance Opening Balance
Financial assets at fair value through
229927529.281470000.00
profit or loss in this period
Including:
Financial products 80200959.64 1470000.00
Stock 149726569.64
Total 229927529.28 1470000.00
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
Item Closing Balance Opening Balance
Bank Acceptance Notes 636567044.09 665341998.76
Commercial Acceptance Notes 141183216.00 147697193.99
Total 777750260.09 813039192.75
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti Proporti
Amount Amount proporti value Amount Amount proporti value
on on
on on
Notes
Receiva
ble with
the Bad
Debt
Provisio
797002100.0019251777750834798100.0021758813039
n 2.42% 2.61%
021.69%761.60260.09129.64%936.89192.75
Accrue
d
Based
on
Combin
ations
Includin
g:
Bank
6439697402963656767230069586665341
Accepta 80.80% 1.15% 80.53% 1.04%
978.3034.21044.09691.4692.70998.76
nce
2952024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Notes
Comme
rcial
1530321184814118316249714800147697
Accepta 19.20% 7.74% 19.47% 9.11%
043.39827.39216.00438.18244.19193.99
nce
Notes
797002100.0019251777750834798100.0021758813039
Total
021.69%761.60260.09129.64%936.89192.75
Bad debt accrual by portfolio: RMB 19251761.60
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Bank Acceptance Notes 643969978.30 7402934.21 1.15%
Commercial Acceptance
153032043.3911848827.397.74%
Notes
Total 797002021.69 19251761.60
If the bad debt provisions of notes receivable are made according to the general model of expected credit losses:
□ Applicable □Not applicable
(3) Provision for bad debts accrued recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category
Balance Recovered or Accrued Written Off Others Balance
Reversed
Bank
Acceptance 6958692.70 444241.51 7402934.21
Notes
Commercial
Acceptance 14800244.19 2951416.80 11848827.39
Notes
Total 21758936.89 444241.51 2951416.80 19251761.60
Significant amount of recovered or reversed bad debt provision in this period:
□ Applicable □Not applicable
(4) Notes receivable that the Company has pledged at the end of the period
Unit: RMB
Item Pledged amount by the end of period
Bank Acceptance Notes 400606519.20
Total 400606519.20
(5) Notes receivable that the Company has endorsed or discounted at the end of the period
and that have not yet expired on the balance sheet date
Unit: RMB
Item Derecognised amount at the end of Not derecognised amount at the end
2962024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
period of period
Bank Acceptance Notes 41959304.16
Total 41959304.16
4. Accounts Receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 15089860120.54 14458581851.85
1 to 2 years 1830327585.83 1675541614.13
2 to 3 years 934561606.86 914682001.04
3 years or above 2452808503.88 2359337149.65
3 to 4 years 646840898.86 627873130.02
4 to 5 years 507603962.50 605039214.61
5 years or above 1298363642.52 1126424805.02
Total 20307557817.11 19408142616.67
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti Proporti
Amount Amount proporti value Amount Amount proporti value
on on
on on
Account
s
receiva
bles
with the
bad
debt 180133 169137 10995 467182 433667 33515
0.89%93.90%2.41%92.83%
provisio 348.24 414.11 934.13 946.91 151.15 795.76
n
accrued
based
on
single
item
Includin
g:
Account
s
receiva 180133 169137 10995 467182 433667 33515
0.89%93.90%2.41%92.83%
ble with 348.24 414.11 934.13 946.91 151.15 795.76
insignifi
cant
2972024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
single
amount
but
accrued
for
separat
e
provisio
n of bad
debt
Account
s
receiva
bles
with the
bad
201273092317035189402697616243
debt
42446899.11%25884.15.36%09858495966997.59%71511.14.24%288158
provisio.8721.66.7649.27
n
accrued
based
on
combin
ations
Includin
g:
Aging
Analysi 20127 30923 17035 18940 26976 16243
s 424468 99.11% 25884. 15.36% 098584 959669 97.59% 71511. 14.24% 288158
Portfoli .87 21 .66 .76 49 .27
o
203073261417046194083131316276
100.00100.00
Total 557817 63298. 094518 142616 38662. 803954
%%.1132.79.6764.03
Provision for bad debt accrued by single item: RMB 169137414.11
Unit: RMB
Opening Balance Closing Balance
Name Reason for Bad debt Bad debt Accrued
Book balance Book balance making bad
provision provision proportion
debt provision
Expected to
225140645.3225140645.3
Customer 1 be unable to
66
recover
Expected to
Customer 2 49001963.55 49001963.55 49001963.55 49001963.55 100.00% be unable to
recover
Expected to
Customer 3 38612198.42 38612198.42 36676477.42 36676477.42 100.00% be unable to
recover
Expected to
Customer 4 20596426.50 20596426.50 20596426.50 20596426.50 100.00% be unable to
recover
Expected to
Customer 5 18790253.00 18790253.00 be unable to
recover
2982024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Expected to
115041460.0
Miscellaneous 81525664.32 73858480.77 62862546.64 85.11% be partially
8
unrecoverable
467182946.9433667151.1180133348.2169137414.1
Total
1541
Provision for bad debt accrued by portfolio: RMB 3092325884.21
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
15089019027.54754445296.925.00%
year)
1 to 2 years 1818402686.73 181840268.67 10.00%
2 to 3 years 934536140.25 280360842.08 30.00%
3 to 4 years 629957206.67 314978603.33 50.00%
4 to 5 years 474042672.38 379234137.91 80.00%
5 years or above 1181466735.30 1181466735.30 100.00%
Total 20127424468.87 3092325884.21
If the bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable □Not applicable
(3) Provision for bad debts accrued recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category
Balance Recovered or Accrued Written Off Others Balance
Reversed
Bad debt 3131338662 481580998.6 335015838.4 - 3261463298
4768300.26
provision .64 4 8 11672224.22 .32
3131338662481580998.6335015838.4-3261463298
Total 4768300.26.644811672224.22.32
Significant amount of recovered or reversed bad debt provision in this period:
None
(4) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 335015838.48
Write-off of important accounts receivable:
None
(5) Accounts receivable and contract assets of the top five closing balances collected by
debtors
Unit: RMB
Ending balance Closing balance Closing balance As a percentage Closing balance
Name of Unit
of accounts of contract of accounts of accounts of provision for
2992024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
receivable assets receivable and receivables and bad debts on
contract assets total ending accounts
balance receivable and
impairment of
contract assets
Customer 1 753975451.78 753975451.78 3.68% 37698772.59
Customer 2 591354065.58 591354065.58 2.89% 29567703.28
Customer 3 434897934.38 434897934.38 2.12% 21769092.87
Customer 4 378158742.23 3943041.50 382101783.73 1.86% 88597379.44
Customer 5 329193231.58 329193231.58 1.61% 16459661.58
2487579425.52491522467.0
Total 3943041.50 12.16% 194092609.76
55
5. Contract Assets
(1) Contract Assets
Unit: RMB
Closing Balance Opening Balance
Item Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Completed
but unsettled 25290931.34 361398.92 24929532.42 33413988.93 421118.95 32992869.98
assets
O&M service 7456278.33 75407.79 7380870.54 6198950.93 66600.03 6132350.90
Quality
guarantee 66497257.70 11410143.57 55087114.13 62344437.16 14755441.70 47588995.46
deposit
101957377.0
Total 99244467.37 11846950.28 87397517.09 15243160.68 86714216.34
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti Proporti
Amount Amount proporti value Amount Amount proporti value
on on
on on
Provisio
n of bad
debts
99244100.001184687397101957100.001524386714
based 11.94% 14.95%
467.37%950.28517.09377.02%160.68216.34
on
combin
ation
Includin
g:
Combin
ation of 99244 100.00 11846 87397 101957 100.00 15243 86714
11.94%14.95%
nature 467.37 % 950.28 517.09 377.02 % 160.68 216.34
of the
3002024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
funds
99244100.001184687397101957100.001524386714
Total 11.94% 14.95%
467.37%950.28517.09377.02%160.68216.34
Provision for bad debt accrued by portfolio: RMB 11846950.28
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Combination of nature of
99244467.3711846950.2811.94%
the funds
Total 99244467.37 11846950.28
Provision for bad debts based on general model of expected credit losses
□ Applicable □Not applicable
(3) Provision for bad debts accrued recovered or reversed in this period
Unit: RMB
Foreign
Recovered or
Provisions of Write-off in this Currency
Item reversed during Reasons
this period period Translation
the period
Difference
Completed but
59720.03
unsettled assets
O&M service 8807.76
Quality guarantee -4.78
3345293.35
deposit
Total 8807.76 3405013.38 -4.78 ——
Significant amount of recovered or reversed bad debt provision in this period:
None
6. Receivables Financing
(1) Disclosure of receivables financing
Unit: RMB
Item Closing Balance Opening Balance
Bank Acceptance Notes 841815267.43 810713267.86
Total 841815267.43 810713267.86
(2) Financing of accounts receivable pledged by the Company at the end of the period
Unit: RMB
Item Pledged amount by the end of period
Bank Acceptance Notes 549669895.67
Total 549669895.67
3012024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Financing of accounts receivable that the Company has endorsed or discounted at the end
of the period and that have not yet expired on the balance sheet date
Unit: RMB
Derecognised amount at the end of Not derecognised amount at the end
Item
period of period
Bank Acceptance Notes 40556558.09
Total 40556558.09
7. Other Receivables
Unit: RMB
Item Closing Balance Opening Balance
Dividends Receivable 5784225.02
Other Receivables 293728850.42 331740463.34
Total 293728850.42 337524688.36
(1) Dividends Receivable
1) Classification of Dividends Receivable
Unit: RMB
Project (or Invested Unit) Closing Balance Opening Balance
Intelbras S.A. 5784225.02
Total 5784225.02
(2) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Deposits 151154514.69 148419383.42
Prepaid or advance expense 122639225.03 129465778.21
Equity Transfer Fund 31149666.32 44693899.47
Export tax rebate 106247.36 26923.43
Employee home loan 78949911.00 89695884.00
Others 6034131.37 402441.33
Total 390033695.77 412704309.86
2) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 191651180.73 175351662.59
1 to 2 years 41084974.35 117075815.72
2 to 3 years 72462850.86 57728030.61
3022024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
3 years or above 84834689.83 62548800.94
3 to 4 years 39666543.22 31838007.64
4 to 5 years 20632422.94 17297622.38
5 years or above 24535723.67 13413170.92
Total 390033695.77 412704309.86
3) Disclosure by bad debt accrual method
□Applicable □ Not applicable
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti Proporti
Amount Amount proporti value Amount Amount proporti value
on on
on on
Provisio
n of bad
debts
390033100.0096304293728412704100.0080963331740
based 24.69% 19.62%
695.77%845.35850.42309.86%846.52463.34
on
combin
ation
Includin
g:
Aging
Analysi
390033100.0096304293728412704100.0080963331740
s 24.69% 19.62%
695.77%845.35850.42309.86%846.52463.34
Portfoli
o
390033100.0096304293728412704100.0080963331740
Total 24.69% 19.62%
695.77%845.35850.42309.86%846.52463.34
Bad debt accrual by portfolio: RMB 96304845.35
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
191651180.739582559.045.00%
year)
1 to 2 years 41084974.35 4108497.44 10.00%
2 to 3 years 72462850.86 21738855.24 30.00%
3 to 4 years 39666543.22 19833271.61 50.00%
4 to 5 years 20632422.94 16505938.35 80.00%
5 years or above 24535723.67 24535723.67 100.00%
Total 390033695.77 96304845.35
Provision for bad debts based on general model of expected credit losses:
Unit: RMB
Phase One Phase Two Phase Three
Bad debt provision Expected credit Expected credit Expected credit Total
losses in the next 12 losses for the entire losses for the entire
months extension (without extension (with credit
3032024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
credit impairment) impairment)
Balance as of
40311666.8138930999.371721180.3480963846.52
January 1 2024
Balance in the
current period as of
January 1 2024
--Transfer to phase
-1830768.921830768.92
two
--Transfer to phase
-221743.78-62368.20284111.98
three
Provisions of this
6497605.854709525.405450501.5116657632.76
period
Write off in this
71478.67153186.5355642.11280307.31
period
Other variations -579633.34 -456693.28 -1036326.62
Balance as of
44105647.9544799045.687400151.7296304845.35
December 31 2024
Book balance changes with significant changes in loss provision in the current period
□ Applicable □Not applicable
4) Provision for bad debts accrued recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category
Balance Recovered or Resale or Accrued Others Balance
Reversed write-off
Bad debt
80963846.5216657632.76280307.31-1036326.6296304845.35
provision
Total 80963846.52 16657632.76 280307.31 -1036326.62 96304845.35
Significant amount of recovered or reversed bad debt provision in this period:
None
5) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 280307.31
Write-off of other important receivables:
None
6) Other receivables of the top five closing balances collected by debtors
Unit: RMB
Nature of the As a percentage Bad debt
Name of Unit Closing Balance Aging
funds of total other provision at the
3042024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
receivables at end of the period
the end of the
period
Equity Transfer
Company 1 26319666.32 2-3 years 6.75% 7895899.90
Fund
Company 2 Deposits 11832000.00 3 to 4 years 3.03% 5916000.00
Prepaid or
Company 3 advance 6047181.17 Within 1 year 1.55% 302359.06
expense
Prepaid or
Company 4 advance 5500000.00 4 to 5 years 1.41% 4400000.00
expense
Equity Transfer
Company 5 4830000.00 Within 1 year 1.24% 241500.00
Fund
Total 54528847.49 13.98% 18755758.96
8. Prepayments
(1) Aging analysis of prepayments is as follows
Unit: RMB
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 276949733.43 89.17% 168576768.97 89.01%
1 to 2 years 15277764.29 4.92% 11544945.31 6.10%
2 to 3 years 9380618.43 3.02% 5759402.22 3.04%
3 years or above 8966750.94 2.89% 3507600.49 1.85%
Total 310574867.09 189388716.99
(2) Advance payment of the top five closing balances by prepayment parties
The advance payment of the top five closing balances by the concentration of prepayment parties was summed up to
RMB 188434438.83 accounting for 60.67% of the total closing balance of the advance payment.
9. Inventory
Does the company need to comply with disclosure requirements in the real estate industry
No
(1) Categories of inventories
Unit: RMB
Closing Balance Opening Balance
Provision for Provision for
Impairment of Impairment of
Item Inventories or Inventories or
Book balance Book value Book balance Book value
Provision for Provision for
Impairment of Impairment of
Performance Performance
3052024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Cost Cost
1775556159170049976518174655271752715827
Raw materials 75056394.19 64749700.02.22.03.90.88
Work-in- 460827771.3 449547613.5 419964218.0 411490347.1
11280157.808473870.92
progress 1 1 5 3
Finished 2309288663 2231287638 2305873410 2219257430
78001025.5486615979.53
goods .59 .05 .13 .60
Contract
623434238.2603747149.3727101492.7704704992.0
Performance 19687088.95 22396500.68
9468
Costs
Outsourced
218478605.3218478605.3244439946.3244439946.3
work-in-
2233
progress
5387585437184024666.452035607715514844595182236051.15332608544
Total.738.25.175.02
(2) Provision for impairment of inventories and provision for impairment of contract
performance cost
Unit: RMB
Increased Amount in the Decreased Amount in the
Opening Current Period Current Period Closing
Item
Balance Reversals or Balance
Accrued Others Others
write-offs
Raw materials 64749700.02 73554690.20 59032727.14 4215268.89 75056394.19
Work-in-
8473870.9217607514.4016518887.66-1717660.1411280157.80
progress
Finished
86615979.5328882483.5436931074.43566363.1078001025.54
goods
Contract
Performance 22396500.68 12534138.51 15243550.24 19687088.95
Costs
182236051.1132578826.6127726239.4184024666.4
Total 3063971.85
5578
10. Non-current Assets Due within 1 Year
Unit: RMB
Item Closing Balance Opening Balance
Long-term accounts receivables due
237608641.30303454116.40
within 1 year
Total 237608641.30 303454116.40
11. Other Current Assets
Unit: RMB
Item Closing Balance Opening Balance
Return cost receivable 12991543.19 11228032.04
Not deducted input tax 404856368.72 555798264.68
3062024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Prepaid enterprise income tax 36722593.44 34017571.59
National debt reverse repurchase 530974219.56 338331000.00
Large-denomination certificates of
deposit from banks (maturing within 50257291.67
one year)
Total 1035802016.58 939374868.31
12. Long-term Receivables
(1) Long-term receivables
Unit: RMB
Closing Balance Opening Balance Rang
e of
Item Bad debt Bad debt disco
Book balance Book value Book balance Book value
provision provision unt
rate
Installment
Payment for 752811851.8 8399299 744412552.0 957523390.9 1086408 946659309.7
Selling 0 .80 0 7 1.27 0
Products
Including: 3.69
Unrealized 128884735.8 128884735.8 %-
87118128.2987118128.29
Financing 6 6 5.88
Income %
752811851.88399299744412552.0957523390.91086408946659309.7
Total
0.80071.270
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti Proporti
Amount Amount proporti value Amount Amount proporti value
on on
on on
Provisio
n of bad
debts 10864 10755
839929100.0083992831530100.0010864
based 1.00% 08126. 1.00% 44045.
980.09%99.80680.29%081.27
on 83 56
combin
ation
Includin
g:
Combin
ation of 10864 10755
839929100.0083992831530100.0010864
nature 1.00% 08126. 1.00% 44045.
980.09%99.80680.29%081.27
of the 83 56
funds
1086410755
839929100.0083992831530100.0010864
Total 1.00% 08126. 1.00% 44045.
980.09%99.80680.29%081.27
8356
Provision for bad debt accrued by portfolio: RMB 8399299.80
3072024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Combination of nature of
839929980.098399299.801.00%
the funds
Total 839929980.09 8399299.80
(3) Provision for bad debts accrued recovered or reversed in this period
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category
Balance Recovered or Resale or Accrued Others Balance
Reversed write-off
Bad debt
10864081.272464781.478399299.80
provision
Total 10864081.27 2464781.47 8399299.80
Significant amount of recovered or reversed bad debt provision in this period:
None
13. Long-term Equity Investments
Unit: RMB
Decrease/Increase in the current period
Invest
Closin
Openi ment Adjust
Openi ng profit Cash
g
ment Closin
The ng balan and divide Provis
balan
on g ce of
invest balan ce of Invest Invest loss Other nds or ion for other balan
ed ce provisi ments ment recog chang profit impair Other
provisi
compr ce on for
entity (book on for increa decre nized es in declar ment s ehens (book
value) impair sed ased under equity ed to accru
declin
ive value)
ment the distrib ed
e in
incom
equity ute value
e
metho
d
Ⅰ. Joint ventures
II. Affiliate
-
Intelbr 4800 5107 1672 5069
7514
as 7990 5836. 0071. 2140
266.4
S.A. 8.08 31 38 6.57
4
Ruicit
y
-
Digital 7823 5280
2542
Techn 1566. 3494.
8071.
ology 10 38
72
Co.Ltd.Hangz
7234
hou
96.39
Juhua
3082024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
nyan
Inform
ation
Techn
ology
Co.Ltd.Guan
gdong
Zhishi
-
Digital 5771
5771
Techn 3.57
3.57
ology
Co.Ltd.Ningb
o
Huaya
n
Chua
ngxi
Ventur
e
Capita 6743 6762
74735531
l 2554. 6764.
44.3534.55
Invest 80 60
ment
Partn
ership
(Limit
ed
Partn
ership
)
Dezho
u
Shuzh
i
34443598
Inform 1542
758.2959.6
ation 01.41
67
Techn
ology
Co.Ltd.Sichu
an
Hengji
Anhua
Intern
1121-
et of 9602
844.51615
Thing 55.07
689.49
s
Techn
ology
Co.Ltd.Guan 5982 9079 6890
gxi 87.37 5.44 82.81
3092024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
FTZ
Huaqi
n
Wisdo
m
Park
Techn
ology
Resea
rch
Institu
te
Co.Ltd.Ningb
o Cida
Yongs
hun -
116311101139
Intellig 1134
912.7000.0404.7
ent 507.9
309
Techn 4
ology
Co.Ltd.Zhejia
ng
Huach
-
uang 9538 3341 8850
1022
Vision 0797. 640.7 2200.
0237.
Techn 85 3 68
90
ology
Co.Ltd.Shenz
hen
Aohua
Urban
Opera
tion
-82.1882.18
and
Devel
opme
nt
Co.Ltd.Huah
ongch
ang
Intellig
ent -
1075
Techn 1075
40.25
ology 40.25
(Jiang
su)
Co.Ltd.
727472341110149533411727-7222
Subtot
536296.39000.08434.640.73205.73484156
3102024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
al 9.75 0 46 3 93 930.4 8.57
4
-
727411101495334117277222
72347348
Total 5362 000.0 8434. 640.7 3205. 4156
96.39930.4
9.750463938.57
4
The recoverable amount is determined as the net of fair value less costs of disposal.□ Applicable □Not applicable
The recoverable amount is determined as the present value of the expected future cash flows.□ Applicable □Not applicable
14. Other Non-current Financial Assets
Unit: RMB
Item Closing Balance Opening Balance
Investment in equity instruments 42303530.71 478782601.67
Investment in financial products 1232393960.16 1056959784.04
Total 1274697490.87 1535742385.71
15. Investment Properties
(1) Investment properties measured by cost method
□Applicable □ Not applicable
Unit: RMB
Buildings and Projects under
Item Land use rights Total
constructions Construction
Ⅰ. Original book
value
1. Opening
174113990.28174113990.28
Balance
2. Increased in
19049827.9519049827.95
the Current Period
(1)
Purchase
(2) Transfer
of fixed
19049827.9519049827.95
assets\intangible
assets
(3)
Acquisition
3. Decreased in
the Current Period
(1) Disposal
(2) Transfer
of fixed
assets/intangible
assets
(3) Other
3112024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Transfer-out
4. Closing
193163818.23193163818.23
Balance
II. Accumulated
Depreciation and
Amortization
1. Opening
44476986.2844476986.28
Balance
2. Increased in
9406245.699406245.69
the Current Period
(1) Accrual
8781127.888781127.88
or Amortization
(2) Transfer
of fixed
625117.81625117.81
assets\intangible
assets
(3)
Acquisition
3. Decreased in
the Current Period
(1) Disposal
(2) Transfer
of fixed
assets/intangible
assets
(3) Other
Transfer-out
4. Closing
53883231.9753883231.97
Balance
III. Impairment
Provision
1. Opening
Balance
2. Increased in
the Current Period
(1) Accrual
3. Decreased in
the Current Period
(1) Disposal
(2) Other
Transfer-out
4. Closing
Balance
IV. Book Value
1. Closing
Balance on Book 139280586.26 139280586.26
Value
2. Opening
Balance on Book 129637004.00 129637004.00
Value
3122024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Investment properties measured at fair value
□ Applicable □Not applicable
(3) Investment properties with certificates of title not granted
No investment properties with certificates of title not granted at the end of the period.
16. Fixed Assets
Unit: RMB
Item Closing Balance Opening Balance
Fixed Assets 4973953628.05 4937180876.88
Fixed assets cleanup
Total 4973953628.05 4937180876.88
(1) Fixed assets
Unit: RMB
Housing and Machinery and Means of Electronic and
Item Total
building equipment transport other equipment
Ⅰ. Original book
value:
1. Opening
4700211205.93618035677.3428747880.431908687345.087255682108.78
Balance
2. Increased
in the Current 122578398.71 51118348.14 4068148.28 508299227.38 686064122.51
Period
(1)
35915848.7851118348.144068148.28438476218.53529578563.73
Purchase
(2)
Transferred
From 86662549.93 69823008.85 156485558.78
Construction in
Progress
(3)
Acquisition
(4) Transfer
of investment
properties
3.
Decreased in the 19049827.95 26228059.60 2488709.51 50976856.21 98743453.27
Current Period
(1) Disposal
26228059.602274103.7047583473.4576085636.75
or Scrapping
(2) Transfer
to investment 19049827.95 19049827.95
real estate
(3) Disposal
214605.813393382.763607988.57
of subsidiaries
3132024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
4. Currency
Translation -132399.50 -80812.75 -163517.29 -2419763.60 -2796493.14
Difference
5. Closing 4803607377.1
642845153.1330163801.912363589952.657840206284.88
Balance 9
II. Accumulated
depreciation
1. Opening
743791548.93216453185.6321774098.021336482399.322318501231.90
Balance
2. Increased
in the Current 224899388.53 57081604.86 2789888.87 318243974.15 603014856.41
Period
(1) Accrual 224899388.53 57081604.86 2789888.87 318243974.15 603014856.41
(2) Transfer
of investment
properties
3.
Decreased in the 625117.81 11162414.30 1173673.87 40313515.77 53274721.75
Current Period
(1) Disposal
11162414.30969798.3538024730.8650156943.51
or Scrapping
(2) Transfer
to investment 625117.81 625117.81
real estate
(3) Disposal
203875.522288784.912492660.43
of subsidiaries
4. Currency
Translation -33761.87 -78822.42 -138494.61 -1737630.83 -1988709.73
Difference
5. Closing
968032057.78262293553.7723251818.411612675226.872866252656.83
Balance
III. Impairment
Provision
1. Opening
Balance
2. Increased
in the Current
Period
(1) Accrual
3.
Decreased in the
Current Period
(1) Disposal
or Scrapping
4. Closing
Balance
IV. Book Value
1. Closing
3835575319.4
Balance on Book 380551599.36 6911983.50 750914725.78 4973953628.05
1
Value
3956419657.0
2. Opening 401582491.71 6973782.41 572204945.76 4937180876.88 0
3142024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Balance on Book
Value
(2) Fixed assets rent out under operating leases
Unit: RMB
Item Book Value at the End of the Period
Buildings and constructions 736902314.48
Electronic and other equipment 50988486.84
(3) Fixed assets with certificates of title not granted
Unit: RMB
Reasons for certificates of title not
Item Book value
granted
Commercial housing in Cisco In the process of obtaining the real
21946289.11
Intelligent Technology Park estate certificates
In the process of obtaining the real
Wuzhou Building in Guangxi 37183163.71
estate certificates
Shandong Rizhao Commercial The real estate certificates were
1644844.32
Housing obtained in January 2025.
(4) Impairment test of fixed assets
□ Applicable □Not applicable
17. Construction in Progress
Unit: RMB
Item Closing Balance Opening Balance
Projects under Construction 1254554187.36 1008612408.49
Total 1254554187.36 1008612408.49
(1) Construction in progress
Unit: RMB
Closing Balance Opening Balance
Item Impairme Impairme
Book balance nt Book value Book balance nt Book value
provision provision
Phase I
Urban
Intelligent
Information 37183163.71 37183163.71
Industry
Construction
Project
New project of
Southwest
322402380.64322402380.64263076398.23263076398.23
R&D Center
of Dahua Co.
3152024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Ltd.New projects
of
Southwestern
China 386439622.10 386439622.10 335849207.03 335849207.03
Operation
Center of
Dahua
Henan Smart
IoT base of 168946600.69 168946600.69 111780241.11 111780241.11
Dahua
Construction
project of
Dahua
intelligent 341740284.37 341740284.37 101525907.86 101525907.86
products
manufacturing
base
Others 35025299.56 35025299.56 159197490.55 159197490.55
1254554187.31254554187.31008612408.41008612408.4
Total
6699
(2) Changes in significant construction in progress
Unit: RMB
Proje Inclu
Capit
ct ding:
Accu alizati
Other accu capit
Amount mula on
amou mulat alized
Increas of fixed ted rate
nts ive intere
Openi ed assets Proje capit of the Capit
decre inves st
Item Bud ng Amount transfer Closing ct alize intere al
ased tment amou
Name get Balan in the red in Balance Progr d st in Sourc
in as a nt in
ce Current the ess inter the e
curre perce the
Period current est curre
nt ntage curre
period amo nt
period of the nt
unt perio
budg perio
d
et d
New
project
of
Southw RM Equit
est B 2630 y
59325322402384.2184.21
R&D 417 7639 funds/
982.4180.64%%
Center milli 8.23 raised
of on funds
Dahua
Co.Ltd.New
project
s of
Southw RM
estern B 3358 Equit
505903864396106.298.00
China 396 4920 y
415.0722.105%%
Operati milli 7.03 Fund
on on
Center
of
Dahua
3162024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Constr
uction
project
of
RM
Dahua
B 1015 24021 Equit
intellig 3417402 62.08 62.08
600 2590 4376.5 y
ent 84.37 % %
milli 7.86 1 Fund
product
on
s
manufa
cturing
base
700435013
1050582
Total 5151 0773.9
287.11
3.129
(3) Impairment test of construction in progress
□ Applicable □Not applicable
18. Right-of-use Assets
(1) Right-of-use assets
Unit: RMB
Buildings and Machinery and
Item Total
constructions equipment
Ⅰ. Original book value
1. Opening Balance 518737508.83 8884640.73 527622149.56
2. Increased in the Current
98781284.58111961.0898893245.66
Period
(1) Leased this year 97300907.97 111961.08 97412869.05
(2) Acquisition 1480376.61 1480376.61
3. Decreased in the Current
96091296.8396091296.83
Period
(1) Expiration or early
82192135.8182192135.81
termination of lease contracts
(2) Disposal of subsidiaries 13899161.02 13899161.02
4. Currency Translation
-5540242.51-5540242.51
Difference
5. Closing Balance 515887254.07 8996601.81 524883855.88
II. Accumulated depreciation
1. Opening Balance 226494557.71 1925005.29 228419563.00
2. Increased in the Current
143224851.16944444.60144169295.76
Period
(1) Accrual 143101486.45 944444.60 144045931.05
(2) Acquisition 123364.71 123364.71
3. Decreased in the Current
79595721.9179595721.91
Period
(1) Expiration or early
72568417.4872568417.48
termination of lease contracts
(2) Disposal of subsidiaries 7027304.43 7027304.43
3172024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
4. Currency Translation
-233558.83-233558.83
Difference
5. Closing Balance 289890128.13 2869449.89 292759578.02
III. Impairment Provision
1. Opening Balance
2. Increased in the Current
Period
(1) Accrual
3. Decreased in the Current
Period
(1) Disposal
4. Closing Balance
IV. Book Value
1. Closing Balance on Book
225997125.946127151.92232124277.86
Value
2. Opening Balance on Book
292242951.126959635.44299202586.56
Value
(2) Impairment test of right-to-use assets
□ Applicable □Not applicable
19. Intangible Assets
(1) Details of intangible assets
Unit: RMB
Land use Paten Non-patented Software
Item Software Trademark Total
rights t right technology copyright
Ⅰ. Original
book value
1.
626404053.868530508.7173816614.22077241.64000000.0874828418.4
Opening
703000
Balance
2.
Increased in
3590276.6929716.9818939459.6122559453.28
the Current
Period
(1)
3590276.6929716.986972719.1610592712.83
Purchase
(2) Internal
research
and
developmen
t
(3)
Acquisition
(4)
11966740.4511966740.45
Constructio
3182024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
n in
progress
transferred
(5) Transfer
of
investment
properties
3.
Decreased
2077241.6
in the 796156.12 2873397.72
0
Current
Period
2077241.6
(1) Disposal 774640.58 2851882.18
0
(2) Transfer
to
investment
real estate
(3) Disposal
of 21515.54 21515.54
subsidiaries
4. Currency
Translation -16675.00 -29836.68 -46511.68
Difference
5.
629977655.568560225.6191930081.04000000.0894467962.2
Closing
68408
Balance
II.Accumulate
d
amortization
1.
58529703.1144836253.12077241.64000000.0280149400.2
Opening 70706202.43
24009
Balance
2.
Increased in
14018944.654208154.2520958201.5639185300.46
the Current
Period
(1) Accrual 14018944.65 4208154.25 20958201.56 39185300.46
(2) Transfer
of
investment
properties
3.
Decreased
2077241.6
in the 795369.92 2872611.52
0
Current
Period
2077241.6
(1) Disposal 773854.38 2851095.98
0
(2) Transfer
to
investment
real estate
(3) Disposal
21515.5421515.54
of
3192024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
subsidiaries
4.
Currency
-29565.54-29565.54
Translation
Difference
5.
62737857.3164969519.24000000.0316432523.6
Closing 84725147.08
7409
Balance
III.Impairment
Provision
1.
Opening
Balance
2.
Increased in
the Current
Period
(1)
Accrual
3.
Decreased
in the
Current
Period
(1)
Disposal
4.
Closing
Balance
IV. Book
Value
1.
Closing 545252508.4 578035438.5
5822368.3126960561.80
Balance on 8 9
Book Value
2.
Opening 555697851.4 10000805.5 594679018.1
28980361.09
Balance on 4 8 1
Book Value
The intangible assets from internal research and development of the Company at the end of this period account for
0.00% of the intangible assets balance.
(2) No land use right without the certificate of title at the end of the period
(3) Impairment test of intangible assets
□ Applicable □Not applicable
3202024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
20. Goodwill
(1) Original book value of goodwill
Unit: RMB
Increased in the
Decreased in the current period
The invested entity or current period
Opening Closing
matters which formed
Balance Generated Balance
goodwill from business Disposal
combination
Dahua Technology
6615294.186615294.18
Italy S.R.L.Total 6615294.18 6615294.18
(2) Impairment provision for goodwill
Unit: RMB
Openi Increased in the current period Decreased in the current period
The invested entity or
ng Closing
matters which formed
Balanc Accrued Disposal Balance goodwill
e
Dahua Technology
0.000.00
Italy S.R.L.Total 0.00 0.00
(3) Information about the asset group or asset group combination where the goodwill is
located
Is it consistent
Composition and basis of the asset group or Operational
Name with the
its combination subsection and basis
previous year
The asset group relating to the goodwill Recognition is based
formed by acquisition of Dahua Technology on whether the main
Dahua Technology Italy Italy S.R.L. that is the long-term asset cash inflow generated
Yes
S.R.L. group including fixed assets and intangible is independent of
assets formed for Dahua Technology Italy other asset groups or
S.R.L. on December 31 2024. their combinations.
(4) Determination method of recoverable amount
The recoverable amount is determined as the net of fair value less costs of disposal.□ Applicable □Not applicable
The recoverable amount is determined as the present value of the expected future cash flows.□Applicable □ Not applicable
Unit: RMB
Determinati
Number of Key Key
on basis of
Recoverabl Impairment years of the parameters parameters
Item Book value key
e amount amount forecast of the of the
parameters
period forecast steady
in the
3212024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
period period steady
period
Revenue
Revenue Predict
growth rate
growth rate cautiously
of 8%-10%
of 0% over as the
Dahua over the
12296262 20150868 the steady income will
Technology 0.00 2025-2029 forecast
4.86 5.05 period; not increase
Italy S.R.L. period;
discount in the
discount
rate of steady
rate of
15.60% period.
15.60%
1229626220150868
Total 0.00
4.865.05
(5) Completion of performance commitment and goodwill impairment situation
There is a performance commitment when goodwill is formed and the reporting period or the previous reporting period
falls within the performance commitment period.□ Applicable □Not applicable
21. Long-term Deferred Expenses
Unit: RMB
Increased Prepaid
Other Amounts
Item Opening Balance Amount in the Expenses in This Closing Balance
Decreased
Current Period Period
Improvement
expenditure of
fixed assets 69962883.75 18884954.55 42809033.90 800001.33 45238803.07
leased by
operating lease
Renovation Cost 65372390.20 12974310.25 24175098.10 54171602.35
Total 135335273.95 31859264.80 66984132.00 800001.33 99410405.42
22. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred income tax assets not written off
Unit: RMB
Closing Balance Opening Balance
Item Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Provision for
3025825450.60562296401.852945448093.79561492926.21
Impairment of Assets
Unrealized Profit
from Internal 541607785.16 111639987.98 1849888966.76 436702186.90
Transactions
Deductible Losses 1920226766.23 291618935.89 615050031.87 101761861.84
Equity incentive
291671905.3145689152.55
expense
Expected Liabilities 213777948.61 36535893.26 170920678.13 26157016.58
Payroll payable 252223316.91 41492918.94 253599826.64 41664283.10
3222024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Costs from Tax
Increase Due to 583649029.08 112966247.86 557868000.15 107970125.57
Absence of Invoice
Changes in fair value
3733125.73559968.861458799.36364699.84
gains and losses
Book-tax difference 144796421.88 27085343.71
188753783.7335399648.53
of lease liabilities
Investments in non-
466573172.4869985975.87520408538.5378061280.78
monetary assets
Others 113506566.35 18209927.86 111452227.57 17921647.45
Total 7265919583.03 1272391602.08 7506520851.84 1453184829.35
(2) Non-offset deferred income tax liabilities
Unit: RMB
Closing Balance Opening Balance
Item Taxable temporary Deferred Income Tax Taxable temporary Deferred Income Tax
difference Liabilities difference Liabilities
The gross profit of
52101542.998882673.0258360423.8710150707.92
sales by installments
Changes in fair value
335149352.8050272402.92378324828.7956893999.27
gains and losses
Book-tax difference
139677335.2326194630.77182618578.9834371567.43
of right-of-use assets
Investments in non-
323116498.2048467474.73430682928.4764602439.27
monetary assets
Others 12316682.73 1847502.41
Total 862361411.95 135664683.85 1049986760.11 166018713.89
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset
Unit: RMB
Amount of Deferred Balance of Deferred Amount of Deferred Balance of Deferred
Income Tax Assets Income Tax Assets or Income Tax Assets Income Tax Assets or
Item Offset against Liabilities after Offset Offset against Liabilities after Offset
Liabilities at the End at the End of the Liabilities at the Start at the Start of the
of the Period Period of the Period Period
Deferred Income Tax
135645521.631136746080.45165281346.701287903482.65
Assets
Deferred Income Tax
135645521.6319162.22165281346.70737367.19
Liabilities
(4) Deferred income tax assets or liabilities listed by net amount after offset
Unit: RMB
Item Closing Balance Opening Balance
Deductible temporary difference 601482814.06 562186328.66
Deductible Losses 2023883256.99 1660894695.64
Total 2625366071.05 2223081024.30
3232024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(5) Details of unrecognized deferred income tax assets
Unit: RMB
Year Closing balance Opening balance Notes
2024123399991.24
2025213836146.31260522250.84
2026348424975.65331413381.74
2027498989378.85476126194.63
2028449525076.81469432877.19
2029 and later 513107679.37
Total 2023883256.99 1660894695.64
23. Other Non-current Assets
Unit: RMB
Closing Balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Contract
Acquisition 7585925.51 7585925.51
Costs
Large-
denomination
42031787614203178761
certificates of.72.72
deposit from
banks
Contract
83145926.805446542.1677699384.6480729279.525837202.8874892076.64
Assets
Prepayments
for purchase 129167069.1 129167069.1
37521356.4837521356.48
of engineering 9 9
equipments
Prepayments
for acquisition 1791480.71 1791480.71 5893664.25 5893664.25
of real estate
Others 856454.41 856454.41
43332234514327776909216646467.3210809264.4
Total 5446542.16 5837202.88.22.0679
24. Assets whose Ownership or Rights to Use is Restricted
Unit: RMB
Book Value at the Opening Balance
Type of Restriction Restrictions
End of the Period on Book Value
Guarantee letter security
Cash and Bank
107576703.27 75843683.23 deposit and other restricted Restricted use
Balances
funds
Pledge used to issue bank
Notes receivable
acceptance bills and
and receivables 987102426.21 947438573.74 Restricted use
endorsed or discounted
financing
notes not derecognised
Accounts Financial discount and
6633164.97 Restricted use
receivable factoring not derecognised in
3242024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
the supply chain
Fixed assets rented out
Fixed Assets 787890801.32 443212364.35 Restricted use
under operating leases
Total 1882569930.80 1473127786.29
25. Short-term Loans
(1) Categories of short-term loan
Unit: RMB
Item Closing Balance Opening Balance
Pledged loans 995000000.00 400000000.00
Fiduciary loans 549800000.00
Factoring loans in the supply chain
7238385.64
finance
Interest payable for short-term loan 387944.54
Total 995000000.00 957426330.18
Description of the categories of short-term loan:
The secured borrowings refer to the acceptance bill and letters of credit issued between the affiliates within the scope
of consolidation and are discounted and listed as a short-term loan at the level of the consolidated statement.
(2) Short-term loans that have been overdue and unpaid
At the end of this period the Group has no short-term loans that are overdue and unpaid.
26. Trading financial liabilities
Unit: RMB
Item Closing Balance Opening Balance
Transactional financial liabilities 4268603.52 61400.12
Including:
Derivative Financial Liabilities 1058039.73 61400.12
Contingent consideration 3210563.79
Total 4268603.52 61400.12
27. Notes payable
Unit: RMB
Types Closing Balance Opening Balance
Commercial acceptance bill 2189843859.93 2050859385.48
Bank acceptance bill 1410130382.09 1245435560.78
Total 3599974242.02 3296294946.26
3252024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
28. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item Closing Balance Opening Balance
Payment for purchase of materials 5514821691.83 5295784509.14
Payment for engineering equipments 363155169.30 519338686.41
Total 5877976861.13 5815123195.55
(2) Significant accounts payable aged over 1 year or overdue
No significant accounts payable aged over 1 year or overdue.
29. Other payables
Unit: RMB
Item Closing Balance Opening Balance
Dividends Payable 22951560.23 23667047.02
Other Payables 614061999.82 788757099.50
Total 637013560.05 812424146.52
(1) Dividends payable
Unit: RMB
Item Closing Balance Opening Balance
Equity Incentive Restricted Stock
22951560.2323667047.02
Dividend
Total 22951560.23 23667047.02
(2) Other payables
1) Other payables listed by nature of funds
Unit: RMB
Item Closing Balance Opening Balance
Deposits 130208683.89 119727924.44
Temporarily borrowed and advance
316774319.18325491021.42
payments
Restricted share repurchase
144695313.36326740652.18
obligations
Others 22383683.39 16797501.46
Total 614061999.82 788757099.50
2) Other significant accounts payable aged over 1 year or overdue
No other significant accounts payable aged over 1 year or overdue.
3262024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
30. Contract liabilities
Unit: RMB
Item Closing Balance Opening Balance
Payments for sales of goods 367888058.92 248523384.39
Pre-payments from construction
512577027.01606995011.21
projects
Sales of points 29975336.23 40987601.52
Service expense collected in
371763926.59298028309.92
advance
Total 1282204348.75 1194534307.04
31. Payroll payable
(1) Details of payroll payable
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
Ⅰ. Short-term
1927465906.517237991001.557363991836.421801465071.64
remuneration
II. Dimission benefits
- defined contribution 4356958.15 479337723.65 476501194.17 7193487.63
plan
III. Dismissal welfare 2132766.46 51434479.48 51172596.29 2394649.65
Total 1933955631.12 7768763204.68 7891665626.88 1811053208.92
(2) Details of short-term remuneration
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
1. Wages or salaries
bonuses allowances 1630694501.69 6289929754.55 6416306595.30 1504317660.94
and subsidies
2. Staff welfare 125993611.43 125993611.43
3. Social insurance
1774953.96271484685.24270991144.642268494.56
contributions
Including: medical
1551779.16257998699.05257405715.992144762.22
insurance
Work injury
222341.6812285381.7812396260.74111462.72
insurance premium
Maternity
833.121200604.411189167.9112269.62
insurance premium
4. Housing funds 121261.43 437554444.53 435993897.14 1681808.82
5. Labor union and
294875189.43113028505.80114706587.91293197107.32
education funds
Total 1927465906.51 7237991001.55 7363991836.42 1801465071.64
3272024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Details of defined contribution plans
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
1. Basic pension
3951325.98458681143.43456120895.516511573.90
insurance
2. Unemployment
405632.1720656580.2220380298.66681913.73
insurance
Total 4356958.15 479337723.65 476501194.17 7193487.63
32. Taxes and fees payable
Unit: RMB
Item Closing Balance Opening Balance
VAT 196774063.10 363245736.32
Enterprise Income Tax 108441794.06 762303704.91
Individual income tax 37096806.99 34441288.75
Urban Maintenance and Construction
12215258.9121936677.77
Tax
Education surcharges (including local
8733186.8615669021.79
education surcharges)
House property tax 30548302.26 30701891.59
Stamp duty 6307924.45 10066368.59
Others 5742985.00 5117671.36
Total 405860321.63 1243482361.08
33. Non-current liabilities due within one year
Unit: RMB
Item Closing Balance Opening Balance
Long-term debt due within one year 750000000.00
Lease liabilities due within 1 year 117227812.08 116027750.99
Interest payable due within 1 year 694277.76
Other loans due within 1 year 35000000.00
Total 117227812.08 901722028.75
34. Other current liabilities
Unit: RMB
Item Closing Balance Opening Balance
To-be-transferred sales taxes in
28016863.9534104924.61
installments
To-be-transferred sales taxes of
90175362.1281757348.46
contract liabilities
Notes not derecognised 41959304.16 39320431.95
Total 160151530.23 155182705.02
3282024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
35. Lease liabilities
Unit: RMB
Item Closing Balance Opening Balance
Lease payments 245019254.27 313410607.81
Deduct: Unrecognized financing
13477634.7820802807.25
costs
Lease liabilities due within 1 year 117227812.08 116027750.99
Total 114313807.41 176580049.57
36. Estimated Liabilities
Unit: RMB
Item Closing Balance Opening Balance Causes
Pending litigation 64828324.97 27829629.48 Pending litigation
Others 2674923.66 469642.57 Loss-making contract
Expected after-sales
180635396.82 178727096.75 After-sales maintenance
maintenance cost
Expected return amount
20056045.79 17516258.10 Expected sales return
after the period
Total 268194691.24 224542626.90
37. Deferred income
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance Causes
current period current period
Received
Government government
151844373.0240829317.4611448444.19181225246.29
subsidies subsidies related
to assets
Received
Government government
14867300.029911533.324955766.70
subsidies subsidies related
to income
Total 166711673.04 40829317.46 21359977.51 186181012.99 --
38. Other non-current liabilities
Unit: RMB
Item Closing Balance Opening Balance
To-be-transferred sales taxes in
88891691.43119054046.66
installments
Others 13372397.59
Total 102264089.02 119054046.66
39. Share capital
Unit: RMB
Opening Increased or decreased amount in this period (+/-) Closing
3292024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Balance Shares Balance
Shares
Bonus converted
newly Others Subtotal
shares from capital
issued
reserves
-
329446893295423.01160743.032956297
Total shares 2134680.0
90.000033.00
0
Other notes:
1. According to the decision of the 5th Meeting of the 8th Board of Directors of the Company held on April 15 2024
and the amended Articles of Association and the resolution of the 2023 annual general meeting of shareholders of the
Company the Company applied to repurchase and cancel 2134680 Restricted RMB ordinary shares (A Shares) that
had been granted but not unlocked to 204 equity incentive objects reduced the registered capital by RMB
2134680.00 and the registered capital after the change was RMB 3292334310.00. The above capital reduction has
been verified by Verification Report Xin Kuai Shi Bao Zi [2024] No. ZF11011 issued by BDO China Shu Lun Pan CPAs
(special general partnership). The registration filed with Administration for Industry and Commerce was completed in
August 2024 by the Company.
2. According to the "Proposal on the Company's Stock Option and Restricted Share Incentive Plan (Draft Revised) for
2022" and its Summary approved at the 44th Meeting of the Seventh Board of Directors on June 16 2023 the
exercise conditions for the second exercise period of the Company's Stock Option and Restricted Share Incentive Plan
have been met. As of December 31 2024 employees have exercised a total of 3295423 shares through voluntary
exercise increasing the registered capital by RMB 3295423.00. The registered capital after the change is RMB
3295629733.00. The above matters have not yet completed the business registration change procedures.
40. Capital reserve
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
Capital premium
(capital share 6702611107.02 259276830.92 32748322.45 6929139615.49
premium)
Other capital
421514889.4734128515.98228015785.08227627620.37
reserves
Total 7124125996.49 293405346.90 260764107.53 7156767235.86
Other notes including increases or decreases in this period and their reasons:
1. In this period the Company repurchased 2134680 restricted shares that had been granted but had not been
unlocked by cancellation of the share incentive subject reducing the share capital by RMB 2134680.00 and reducing
the capital reserves (share premium) by RMB 15284308.80.
2. The exercise conditions for the second exercise period of the Company's 2022 Stock Option and Restricted Share
Incentive Plan have been met. As of December 31 2024 employees have exercised a total of 3295423 shares
through voluntary exercise increasing capital reserve (stock premium) by RMB 47696935.19. Among other capital
reserves the related expenses recognized for restricted shares and stock options unlocked in this period totaling
RMB 209746056.13 were transferred to capital reserve (stock premium).
3302024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
3. The total capital reserve (stock premium) decreased by RMB 1833401.78 in this period due to the purchase and
disposal of minority shareholders' equity in subsidiaries.
4. The amount of employee service that the Company received in exchange by share-based payments in this period
was RMB 31919688.06 increasing capital reserve (other capital reserve) by RMB 30085848.46 and (stock
premium) by RMB 1833839.60; the portion of equity-settled share-based payments entitled to minority shareholders
was RMB 26793587.40 decreasing capital reserve (other capital reserve) by RMB 11162975.53 and decreasing
capital reserve (stock premium) by RMB 15630611.87. The income tax impact amount RMB 7106753.42 for the
deductible amount before income tax which exceeds the costs and expenses related to share-based payments
recognized under accounting standards is recognized to decrease other capital reserves.
5. The impact of changes in other owners' equity of the affiliates that the Company should enjoy under the equity
method increased capital reserves (other capital reserves) by RMB 3341640.73.
6. Some employees of the Company indirectly acquired part of the equity of Zhejiang Huanuokang Technology Co.
Ltd. controlled by the actual controller involving share-based payment and the related share-based payment
expenses were included in the capital reserve (other capital reserve) of RMB 701026.79 as capital investment.
41. Treasury share
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
Restricted shares 326740652.18 182045338.82 144695313.36
Share buyback 419959211.27 419959211.27
Total 746699863.45 182045338.82 564654524.63
Other notes including increases or decreases in this period and their reasons:
1. In this period the Company repurchased 2134680 shares of the granted but unlocked restricted shares reducing
the share capital by RMB 2134680.00 reducing the capital reserves (share premium) by RMB 15284308.80 and
reducing the corresponding treasury stock amount by RMB 17418988.80 at the same time.
2. Due to the reduction in treasury shares and related liabilities as a result of cash dividends distributed to restricted
shareholders and the recovery of cash dividends distributed to departing personnel the treasury shares decreased by
an aggregate amount of RMB 715486.78.
3. The exercise conditions for the second exercise period of the company's 2022 stock option and restricted share
incentive plan have been met and 20262480 restricted shares have been unlocked correspondingly reducing
treasury shares and related liabilities by RMB 165341836.80.
42. Other Comprehensive Incomes
Unit: RMB
Amount Occurred in the Current Period
Opening Closing
Item
Balance Before tax Less: Less: Less: Attributabl Attributabl Balance
balance in recorded Recorded Income e to the e to the
3312024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
this period into other into other Tax Company minority
comprehe comprehe Expense after tax sharehold
nsive nsive ers after
incomes incomes tax
in in
previous previous
period and period and
transferre transferre
d to P/L in d to
current retained
period income in
current
period
Other
Comprehe
nsive
Income - -
6599302258186738365431043584
That Will 1186065 686113.7
0.831.309.7460.57
Be 4.65 9
Reclassifi
ed into
P/L
Including:
Foreign
currency - -
6599302258186738365431043584
financial 1186065 686113.7
0.831.309.7460.57
statement 4.65 9
translation
difference
Other
comprehe - -
6599302258186738365431043584
nsive 1186065 686113.7
0.831.309.7460.57
income in 4.65 9
total
43. Surplus reserves
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
Statutory surplus
1647234495.00580371.501647814866.50
reserve
Total 1647234495.00 580371.50 1647814866.50
Notes on the surplus reserve including increases or decreases in this period and their reasons:
According to the Company Law and the Articles of Association the statutory surplus reserve fund shall be drawn at 10%
of the parent company's net profit limited to 50% of the parent company's share capital.
44. Undistributed profits
Unit: RMB
Item Current Period Previous Period
3322024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Undistributed Profit before
Adjustment at the End of the 23334051186.55 17872654791.67
Previous Period
Undistributed Profit after Adjustment
23334051186.5517872654791.67
at the Start of the Period
Add: net profit attributable to parent
2905728684.037361892404.52
company's owner in current period
Less: withdrawal for statutory surplus
580371.5093543489.08
reserve
Payable Dividends on Ordinary
1853061050.971817223955.97
Shares
Add: Common stock dividends
corresponding to repurchase and 1991951.67 7662734.78
cancellation of restricted stocks
Others 2608700.63
Undistributed Profit at the End of the
24388130399.7823334051186.55
Period
45. Operating revenue and operating cost
(1) Operating revenue and operating cost
Unit: RMB
Amount Occurred in the Current Period Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 31733745338.87 19369796361.49 31843580629.17 18525996369.58
Other businesses 447186488.30 311890243.02 374737007.60 278025361.72
Total 32180931827.17 19681686604.51 32218317636.77 18804021731.30
The net profit before and after deducting non-recurring profits and losses whichever is lower is negative.□ Yes □No
(2) Information related to operating revenue and operating cost (by product)
Unit: RMB
Amount Occurred in the Current Period
Item
Income Cost
Smart IoT Products and Solutions 25775422871.14 15187851740.07
Including: Software Business 1685487112.56 590089111.30
Innovative Businesses 5566291857.39 3765335736.52
Others 839217098.64 728499127.92
Total 32180931827.17 19681686604.51
(3) Information related to operating revenue and operating cost (by region)
Unit: RMB
Item Amount Occurred in the Current Period
3332024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Income Cost
Domestic 15886994088.01 10584111985.06
Overseas 16293937739.16 9097574619.45
Total 32180931827.17 19681686604.51
Information about performance of obligations:
The Company fulfills its performance obligations in a timely manner as agreed in the contract and recognizes the
related income when the customer obtains control of the relevant goods which is mainly divided into fulfilling the
performance obligations at a certain point in time and fulfilling the performance obligations within a certain period of
time.The Company recognizes income from the sales of goods when control of the goods passes i.e. when the goods are
delivered to the counterparty's designated location or to the counterparty's designated carrier or when they are
delivered to the counterparty for acceptance.The Company identifies part of the business as a performance obligation to be fulfilled within a certain period of time
according to the nature of the business. The Company shall recognize the income according to the performance
progress within that period of time except where the performance progress cannot be reasonably recognized. The
Company employs the output method or input method to determine the performance progress. If the performance
progress cannot be reasonably recognized and the costs incurred are expected to be compensated the income shall
be recognized according to the amount of costs incurred until the performance progress can be reasonably recognized.
46. Taxes and surcharges
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Urban Maintenance and Construction
80739976.26106501298.77
Tax
Education surcharges (including local
57688592.3576094343.54
education surcharges)
House property tax 48344533.53 59855960.89
Land usage tax 8011191.78 7903136.79
Vehicle and vessel use tax 41456.25 56476.48
Stamp duty 21492876.32 22285309.84
Others 4998144.98 3089670.74
Total 221316771.47 275786197.05
47. Administrative expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
3342024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Labor cost 695667184.18 742212609.53
Depreciation cost and asset
143209091.42159254353.46
amortization
Administrative expenses 92194684.99 90685611.32
Consumables and service fees 52025654.53 39845264.04
Knowledge resource fee 82606146.49 147815551.33
Transportation and vehicle expenses 4121637.41 3451347.31
Traveling expense 11840135.09 11774618.38
Business entertainment 15791767.91 11246490.69
Others 43951884.61 51143668.21
Total 1141408186.63 1257429514.27
48. Sales expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 3201553137.07 3226863820.05
After-sales service expense 317453694.36 321017615.54
Transportation and vehicle expenses 52881241.84 49041851.21
Marketing expense 527292675.53 457846542.52
Administrative expenses 172778528.19 150970949.50
Traveling expense 295323610.34 284949589.16
Business entertainment 250886259.63 250873194.98
Taxation and insurance expense 51716229.07 112356918.50
Communication expense 24597267.10 25008755.46
Knowledge resource fee 49818336.36 55724443.18
Depreciation cost and asset
173793863.72175742287.43
amortization
Others 48638494.74 53123450.32
Total 5166733337.95 5163519417.85
Other notes:
Since 2024 the Company has implemented the provisions of "Interpretation No. 18 of the Accounting Standards for
Business Enterprises" on "Accounting Treatment of Guarantee-Type Quality Assurances that Do Not Belong to Single
Performance Obligations" and adjusted the amount of sales expenses in the previous period by RMB 129050807.84.
49. R&D expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 3679962388.01 3543375607.63
Research consumables and service
223156633.45172532981.67
fees
Depreciation cost and asset
155396412.58117315005.47
amortization
Traveling expense 57484535.70 57860404.79
Administrative expenses 42126496.50 34045660.92
Communication expense 36042384.98 28994641.13
Others 19086714.51 13124493.61
Total 4213255565.73 3967248795.22
3352024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
50. Financial expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Interest expense 45574086.20 95985194.10
Including: Interest expenses on lease
12307800.5714312541.58
liability
Less: interest income 420512502.16 345537378.77
The profit or loss on foreign
-36740087.01-180137872.79
exchange
Others 21787522.36 20382067.84
Total -389890980.61 -409307989.62
51. Other incomes
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Sources of other incomes
Period Period
Government subsidies 987842683.73 932636785.62
Input tax credits 8314696.17 134932.81
Handling fee for withholding tax of
6894163.109920044.98
personal income
Others 4059150.00 75409.42
Total 1007110693.00 942767172.83
52. Income from changes in fair value
Unit: RMB
Source of the income from changes Amount Occurred in the Current Amount Occurred in the Previous
in fair value Period Period
Trading Financial Assets -206254198.57
Transactional financial liabilities -1194709.59 26590919.13
Other Non-current Financial Assets 164033503.88 101037455.74
Total -43415404.28 127628374.87
53. Investment income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Long-term equity investment income
14958434.46-242631295.52
measured by equity method
Investment income from disposal of
106248112.694777818657.97
long-term equity investment
Investment income from trading
financial assets during the holding 1243275.00
period
3362024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Investment income from disposal of
335321351.24-44929416.02
trading financial assets
Gain on debt restructuring -394660.00 -16242445.24
Investment income of other non-
current financial assets during the 6235327.82 11870549.61
holding period
Investment income from disposal of
10370120.76
other non-current financial assets
Investment income from national
2275761.531256871.91
debt reverse repurchase
Profits from recognition termination of
-1068904.15-1539231.44
financial assets
Total 464818698.59 4495973812.03
54. Credit impairment loss
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Bad debt losses of notes receivable 2507175.29 17555335.92
Bad debt losses of accounts
-476978994.38-415017021.55
receivable
Bad debt losses of other receivables -16657632.76 -997713.81
Bad debt losses of long-term
3144266.49-13997717.99
receivables
Total -487985185.36 -412457117.43
55. Asset impairment losses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
I. Loss from impairment of
inventories and impairment of -111546305.16 -176434382.90
performance cost
II. Impairment losses on contract
3786866.341920067.16
assets
Total -107759438.82 -174514315.74
56. Asset disposal income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Sources of the asset disposal income
Period Period
Income from disposal of fixed assets 750706.46 1679018.49
Income from the disposal of right-of-
54978.20328779.90
use assets
Total 805684.66 2007798.39
3372024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
57. Non-operating revenue
Unit: RMB
Amount recorded into non-
Amount Occurred in the Amount Occurred in the
Item recurring profit and loss in
Current Period Previous Period
current period
Gains and losses of non-
1909799.811229426.371909799.81
current asset retirement
Others 17119047.45 12299567.88 17119047.45
Total 19028847.26 13528994.25 19028847.26
58. Non-operating expenditures
Unit: RMB
Amount recorded into non-
Amount Occurred in the Amount Occurred in the
Item recurring profit and loss in
Current Period Previous Period
current period
Donations 602799.95 1103243.16 602799.95
Gains and losses of non-
4615137.702072054.174615137.70
current asset retirement
Water conservancy fund 643752.02 441570.13
Others 3694992.23 29232164.80 3694992.23
Total 9556681.90 32849032.26 8912929.88
59. Income tax expense
(1) Income tax expense statement
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Current income tax expense -63939616.18 895325041.21
Deferred income tax expense 134236898.79 -248886869.12
Total 70297282.61 646438172.09
(2) Adjustment process of accounting profit and income tax expenses
Unit: RMB
Item Amount Occurred in the Current Period
Total Profit 2989469554.64
Income tax expense calculated at statutory/applicable tax
448420433.20
rate
Impact by applying different tax rates to subsidiaries 190317754.16
Impact of income tax before adjustment in this period -225786901.71
Impact of Non-taxable Revenue 4991178.82
Impact of the non-deductible costs expenses and losses 88362116.88
Impact of Deductible Losses from Unrecognized Deferred -1258087.22
3382024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Income Tax Assets in the Previous Period
Impact of Deductible Temporary Difference or Deductible
Losses from Unrecognized Deferred Income Tax Assets 44203547.34
in the Current Period
Impact of additional deduction of the research and
-551837631.46
development expenses
Others 72884872.60
Income tax expense 70297282.61
60. Items of Cash Flow Statement
(1) Cash relating to operating activities
Other cash receipts relating to operating activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Interest Income 311169510.84 273381345.10
Government subsidies 1007312023.68 994760820.70
Tender and performance guarantee
38622713.36123948827.72
deposit
Incomings and outgoings and
32317680.727613025.25
advances
House rent 84103431.19 35110365.69
Others 20250244.29 24118990.28
Total 1493775604.08 1458933374.74
Other cash payments relating to operating activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Administrative expenses 387304151.79 336994816.98
Communication expense 93408717.03 79071144.89
Business entertainment 254060537.50 262962826.23
Traveling expense 378225110.07 360761388.26
Marketing expense 497681768.61 446017073.08
Transportation and vehicle expenses 65262630.58 78953292.07
Knowledge resource fee 156764703.37 204781766.16
Research and development
consumption and external inspection 123900001.82 102571135.69
fee
Taxation and insurance expense 45882692.80 65040612.10
Tender and performance guarantee
83206276.3976473405.90
deposit
Incomings and outgoings and
38804513.8517324949.79
advanced payments
Consumables and service fees 341769894.49 275055483.06
Others 43952068.98 38668797.11
Total 2510223067.28 2344676691.32
(2) Cash relating to investing activities
Other cash receipts relating to investing activities
3392024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Receipts of cash from forward
22337798.2240049759.39
exchange contracts
Recovered frozen funds relating to
10407241.349762136.70
the investment
Net cash paid for acquisition of
7763130.61
subsidiaries
Receipts of loans from non-financial
4683641.32
institutions
Total 45191811.49 49811896.09
Significant cash receipts relating to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Cash received from the transfer of
509194753.993518796019.54
equity/stock.Recovery of national debt reverse
14884041418.301221761539.51
repurchase investment
Total 15393236172.29 4740557559.05
Other cash payments related to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Cash paid for forward exchange
1451036.6084979175.41
contracts
Paid frozen funds relating to the
5167105.341058404.69
investment
Total 6618141.94 86037580.10
Significant cash payments related to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Purchase of large-denomination
4330850703.38
certificates of deposit
Investment income from national
15154408876.401038336000.00
debt reverse repurchase.Total 19485259579.78 1038336000.00
(3) Cash relating to financing activities
Other cash receipts related to financing activities
None
Other cash payments related to financing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
3402024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Leasing fees paid 158146419.17 171319524.76
Listing fees 3312739.06
Cash paid for purchasing minority
40436077.6814647000.00
equity
Equity repurchase cash paid 17418988.80 679455441.73
Others 2620.98
Total 216004106.63 868734705.55
Changes in liabilities arising from financing activities
□Applicable □ Not applicable
Unit: RMB
Increased in the current period Decreased in the current period
Opening Closing
Item
Balance Changes in Non-cash Changes in Non-cash Balance
cash changes cash changes
Short-term 957426330.1 2314437200 2277202698 995000000.0
343668.004500.00
loan 8 .00 .18 0
Long-term
loan
Dividends 1853061050 1851784586
23667047.021991951.6722951560.23
Payable .97 .09
Lease 176580049.5 117227812.0 114313807.4
89602750.2534641180.33
liabilities 7 8 1
Non-current
901722028.7117227812.0901722028.7117227812.0
Liabilities Due
5858
within 1 Year
Other
payables
(restricted 326740652.1 164626350.0 144695313.3
17418988.80
share 8 2 6
repurchase
obligations)
2386136107231443720020602352815082769482283850613.71394188493
Total.70.00.30.157.08
61. Supplementary information about the cash flow statement
(1) Supplementary information about the Cash Flow Statement
Unit: RMB
Supplementary information Amount of this period Amount of Previous Period
1． Reconciliation of net profit to
cash flows from operational activities
Net Profit 2919172272.03 7475267485.55
Add: provision for impairment of
595744624.18586971433.17
assets
Depreciation of fixed assets
oil and gas assets productive 611795984.29 564909376.16
biological assets
Depreciation of Right-of-use
144045931.05140445508.21
Assets
Amortization of Intangible
39185300.4644713796.99
Assets
3412024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Amortization of long-term
66984132.0059882170.69
deferred expenses
Losses on disposal of fixed
assets intangible assets and other
-805684.66-2007798.39
long-term assets (mark "-" for
incomes)
Losses on scrapping of fixed
2705337.89842627.80
assets (mark "-" for incomes)
Losses on fair value changes
43415404.28-127628374.87
(mark "-" for incomes)
Financial expenses (mark "-"
8833999.19-84152678.69
for incomes)
Losses on investment (mark "-
-466282262.74-4513755488.71
" for incomes)
Decrease on deferred income
166676397.92-188315504.30
tax assets (mark "-" for increases)
Increase on deferred income
-31911987.74-65033545.41
tax liabilities (mark "-" for decreases)
Decrease on inventories (mark
-24264745.211804686410.40
"-" for increases)
Decrease on operational
-889965851.98-650869567.85
receivables (mark "-" for increases)
Increase on operational
-507711956.51-747867775.81
payables (mark "-" for decreases)
Others 32620714.85 300690579.53
Net cash flow generated by
2710237609.304598778654.47
operating activities
2． Major investing and financing
activities that do not involve cash
receipts and payment
Conversion of Debt into Capital
Convertible corporate bond within
1 year
Fixed Assets under Finance Lease
3． Net changes in cash and cash
equivalents:
Closing balance of cash 11061530816.28 15880659594.95
Less: opening balance of cash 15880659594.95 7878465052.63
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net Increase in Cash and Cash
-4819128778.678002194542.32
Equivalents
(2) Net cash acquired from the acquisition of subsidiaries in this period
Unit: RMB
3422024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Amount
Cash or cash equivalents used for the acquisition that
12269004.98
occurred in this period and paid in this period.Including:
Dahua Technology Italy S.R.L. 12269004.98
Net cash paid for acquisition of subsidiaries 12269004.98
(3) Net cash from disposal of subsidiaries in this period
Unit: RMB
Amount
Cash or cash equivalents paid for disposal of subsidiaries
85260000.00
in the current period
Including:
Dahua Technology USA Inc. 85260000.00
Deduct: Cash and cash equivalents held by subsidiaries
12081703.52
on the day of loss of control
Including:
Dahua Technology USA Inc. 12081703.52
Add: Cash or cash equivalents received from disposal of
17034505.40
subsidiaries in previous periods in this period
Including:
Lorex corporation Lorex Technology UK Limited Lorex
17034505.40
Technology Inc.Net cash paid for disposal of subsidiaries 90212801.88
(4) Composition of cash and cash equivalents
Unit: RMB
Item Closing Balance Opening Balance
Ⅰ. Cash 11061530816.28 15880659594.95
Including: cash on hand 2584.78 2642.58
Bank deposit for payment at
10902292934.6015806616028.36
any time
Other monetary funds for
159235296.9074040924.01
payment at any time
II. Balance of Cash and Cash
11061530816.2815880659594.95
Equivalents at the End of the Period
(5) Monetary funds that are not cash and cash equivalents
Unit: RMB
Reasons for not being cash
Item Amount of this period Amount of Previous Period
and cash equivalents
Other Cash and Bank Guarantee letter security
75635853.9968981082.99
Balances deposit restricted use
Bank Balance 31940849.28 6862600.24 Frozen funds restricted
3432024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
use
Unexpired bank deposit
Bank Balance 12695904.28 14501836.29 interest is shown in
monetary funds
Total 120272607.55 90345519.52
62. Monetary Items in Foreign Currencies
(1) Monetary items in foreign currencies
Unit: RMB
Closing balance in foreign Exchange rate for Closing Balance Converted
Item
currencies conversion into RMB
Cash and Bank Balances
Including: USD 302945067.52 7.1884 2177690323.36
EUR 72596198.90 7.5257 546337214.06
HKD 141601452.69 0.9260 131128240.15
AED 39432308.16 1.9711 77726599.91
PLN 28100554.52 1.7597 49449388.81
BRL 39111415.22 1.1635 45507304.95
Total amount of other
372494266.18
currencies
Accounts receivable
Including: USD 567938848.26 7.1884 4082571616.81
EUR 122045359.28 7.5257 918476760.36
HKD 1498766.22 0.9260 1387913.56
INR 8227047886.96 0.0840 691376449.38
AED 146274028.26 1.9711 288326588.06
AUD 27890635.91 4.5070 125703096.05
Total amount of other
642465111.12
currencies
Long-term loan
Including: USD
EUR
HKD
Accounts Payable
Including: USD 115702072.70 7.1884 831712779.40
INR 2632777282.93 0.0840 221250712.88
EUR 2644940.08 7.5257 19905025.56
AED 2885997.32 1.9711 5688704.76
IDR 12289595439.28 0.0005 5544745.38
HUF 248255889.11 0.0183 4542767.59
Total amount of other
19210626.48
currencies
3442024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Notes on overseas business entities including that for the important overseas business
entities the overseas main premises functional currency and selection basis shall be
disclosed. If there are changes on its functional currency the causes for the changes shall be
disclosed as well.□Applicable □ Not applicable
Since the overseas business entity of the Company Dahua Technology (HK) Limited does not have autonomy over
its business activities which are the extension of the business activities of the Company constituting the business
activities of the Company RMB shall be used as its functional currency; for the rest of the overseas business entities
the currencies corresponding to the main economic environment in which they operate shall determine their respective
functional currencies.
63. Lease
(1) The Company as a lessee
□Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable □Not applicable
Simplified rental expenses for short-term leases or low-value asset leases
□Applicable □ Not applicable
Item Amount of this period Amount of Previous Period
Interest expenses on lease liabilities 12307800.57 14312541.58
Simplified rental expenses for short-term leases or
low-value asset leases included in the cost of related 73151916.01 59174978.85
assets or current profit or loss
Total cash outflows relating to leases 231298335.18 230494503.61
Sale and leaseback transaction
None
(2) The Company as the lessor
As the lessor in operating leases
□Applicable □ Not applicable
Unit: RMB
Income from the variable lease
Item Rental income payments that are not included in the
lease receivables.House leasing 83688686.98
Equipment leasing 66066283.15
Total 149754970.13
As the lessor in financial leases
□ Applicable □Not applicable
Undiscounted lease receipts for each of the next five years
3452024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
□ Applicable □Not applicable
(3) Recognition of profits and losses on sales under finance leases as a manufacturer or
distributor
□ Applicable □Not applicable
VIII. R&D expenditures
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 3679962388.01 3543375607.63
Research consumables and service
223156633.45172532981.67
fees
Depreciation cost and asset
155396412.58117315005.47
amortization
Traveling expense 57484535.70 57860404.79
Administrative expenses 42126496.50 34045660.92
Communication expense 36042384.98 28994641.13
Others 19086714.51 13124493.61
Total 4213255565.73 3967248795.22
Including: Expenses for R&D
4213255565.733967248795.22
expenditures
IX. Changes in the Scope of Consolidation
1. No business consolidation not under common control in the current period
2. No business consolidation under common control during this period
3. Disposal of subsidiaries
Are there any transactions or events that lose control of subsidiaries in the current period
□Yes □No
Unit: RMB
The The The Deter The
differe book fair Gain minati amou
Propo Basis nce Propo value value or on nt of
Dispo Dispo
rtion for betwe rtion of the of loss metho other
sal sal
of deter en the of remai remai from d and compr
price metho Time
Name dispos minin dispos remai ning ning re- main ehens
at d at point
of als at g the al ning equity equity meas assu ive
time time of loss
Subsi time time price equity at the at the ureme mptio incom
point point of
diarie point point and on the consol consol nt of ns of e
of loss of loss contro
s of loss of loss the day of idated idated residu the relate
of of l
of of share loss of financi financi al fair d to
contro contro
contro contro of the contro al al equity value equity
l l
l l net l state state at fair of invest
assets ment ment value remai ments
of the level level ning in
3462024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
subsid on the on the equity subsid
iary day of day of at the iary
enjoy loss of loss of consol comp
ed at contro contro idated anies
the l l financi and
consol al transf
idated state erred
financi ment to
al level invest
state on the ment
ment day of profit
level loss of or
corres contro loss
pondi l or
ng to retain
the ed
dispos earnin
al of gs
invest
ment
Signin
g of
equity
transf
er
Dahu agree
a ment -
$150 Equity Janua 1181
Techn 100.0 and 1186
0000 transf ry 12 0876
ology 0% compl 0654.
0.00 er 2024 7.34
USA etion 65
Inc. of
proper
ty
rights
delive
ry
Is the investment in subsidiaries disposed of step by step through multiple transactions or losing the right of control in
the current period
□ Yes □No
4. Changes in the Scope of Consolidation for Other Reasons
Explanations on the changes in the scope of consolidation caused by other reasons (for example newly established
subsidiaries subsidiaries clearing etc.) and relevant information:
(1) In the current period the Company founded a total of 14 domestic and overseas subsidiaries through investment
establishment and other means including Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co. Ltd.Shandong Dahua Digital Intelligence Technology Co. Ltd. Fujian Dahua Qingchuang Digital Technology Co. Ltd.Jilin Dahua Zhilian Technology Co. Ltd. Zhengzhou Airport Economy Zone Huaao Technology Co. Ltd. Hainan
Dahua Huizhi Technology Co. Ltd. PT IMOU TEKNOLOGI INDONESIA PT IMOU INDONESIA SENANTIASA Hirige
Technology Malaysia Sdn. Bhd. Dahua Technology Egypt LLC DAHUA TECHNOLOGY AUH FOR SECURITY &
SURVEILLANCE - SOLE PROPRIETORSHIP L.L.C. DaHua Ideal Tech and the enterprises it controls. The above
subsidiaries were included in the scope of consolidation in the current period.
3472024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) The Company's subsidiaries Yunnan Zhili Technology Co. Ltd. and Wuhu Huajian Technology Co. Ltd. were
written off in the current period and they will be no longer included in the scope of consolidation as of the date of write-
off.X. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the enterprise group
Acquisiti
Name of Registered Main Place Registered Business Shareholding Percentage
on
Subsidiaries Capital of Business Address Nature Direct Indirect Method
Dahua Binjiang Binjiang Electronics
RMB 500 Establish
System District District and 100.00%
million ment
Engineering Hangzhou Hangzhou information
RMB Binjiang Binjiang Electronics
Dahua Vision Establish
1306.81 District District and 100.00%
Technology ment
million Hangzhou Hangzhou information
Dahua Binjiang Binjiang Electronics
RMB 100 Establish
Security District District and 100.00%
million ment
Network Hangzhou Hangzhou information
Binjiang Binjiang Electronics
RMB 10 Establish
Dahua Ju'an District District and 51.00%
million ment
Hangzhou Hangzhou information
Guangxi Youjiang Youjiang Electronics
RMB 66.80 Establish
Dahua District District and 100.00%
million ment
Information Baise Baise information
Qingxiu Qingxiu
Guangxi RMB 20 Establish
District District Service 100.00%
Yunlian million ment
Nanning Nanning
Binjiang Binjiang Electronics
Hangzhou RMB 10 Establish
District District and 78.00%
Xiaohua million ment
Hangzhou Hangzhou information
RMB Fuyang Fuyang Electronics
Establish
Dahua Zhilian 1885.80 District District and 100.00%
ment
million Hangzhou Hangzhou information
Investment
Dahua Fuyang Fuyang &
RMB 300 Establish
investment District District investment 100.00%
million ment
management Hangzhou Hangzhou manageme
nt
RMB Youjiang Youjiang Electronics
Guangxi Establish
109.5429 District District and 65.00%
Zhicheng ment
million Baise Baise information
RMB Binjiang Binjiang Electronics
Hangzhou 32.73% Establish
77.905182 District District and
Huacheng (Note 1) ment
million Hangzhou Hangzhou information
Sci-tech
popularizati
RMB Binjiang Binjiang
HuaRay on and Establish
78.264756 District District 32.58%
Technology application ment
million Hangzhou Hangzhou
services
industry
Fuyang Fuyang Electronics
Fuyang RMB 10 Establish
District District and 51.00%
Hua'ao million ment
Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Huafei RMB 50 Establish
District District and 100.00%
Intelligent million ment
Hangzhou Hangzhou information
3482024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Guanshanhu Guanshanhu Electronics
Guizhou RMB 22.5 Establish
District District and 100.00%
Huayi million ment
Guiyang Guiyang information
Electronics
Guangxi RMB 35.80 Wuzhou Wuzhou Establish
and 90.00%
Huacheng million Guangxi Guangxi ment
information
Electronics
Meitan Dahua RMB 10 Zunyi Zunyi Establish
and 100.00%
Technology million Guizhou Guizhou ment
information
New District New District
Inner Bai County Bai County Electronics
RMB 20 Establish
Mongolia Chahar Chahar and 95.00%
million ment
Zhimeng Right Wing Right Wing information
Back Banner Back Banner
Electronics
RMB 36 Hexi District Hexi District Establish
Tianjin Dahua and 100.00%
million Tianjin Tianjin ment
information
Shuangpai Shuangpai
Electronics
Dahua RMB 39.48 County County Establish
and 90.00%
Zhilong million Yongzhou Yongzhou ment
information
City City
Fuyang Fuyang
District District
Electronics
Vision RMB 10 Hangzhou Hangzhou Establish
and 100.00%
Technology million City City ment
information
Zhejiang Zhejiang
Province Province
Fuyang Fuyang
District District
Electronics
Huaxiao RMB 70 Hangzhou Hangzhou Establish
and 51.00%
Technology million City City ment
information
Zhejiang Zhejiang
Province Province
RMB Xi'an City Xi'an City Electronics
Establish
Xi'an Dahua 989.60 Shaanxi Shaanxi and 100.00%
ment
million Province Province information
Wuxi City Wuxi City Electronics
RMB 50 Establish
Huaruipin Jiangsu Jiangsu and 51.00%
million ment
Province Province information
Fengtai Fengtai Electronics
Beijing RMB 10 Establish
District District and 100.00%
Huayue million ment
Beijing Beijing information
Putuo Putuo Electronics
Shanghai RMB 1 Establish
District District and 100.00%
Huashang million ment
Shanghai Shanghai information
Wucheng Wucheng
District District Electronics
RMB 60 Establish
Dahua Jinzhi Jinhua City Jinhua City and 100.00%
million ment
Zhejiang Zhejiang information
Province Province
Zhoushan Zhoushan
Electronics
Zhoushan RMB 100 City City Establish
and 62.40%
Operation million Zhejiang Zhejiang ment
information
Province Province
Liuzhou City Liuzhou City
Guangxi Guangxi Guangxi Electronics
RMB 100 Establish
Dahua Zhuang Zhuang and 100.00%
million ment
Technology Autonomous Autonomous information
Region Region
Binjiang Binjiang Electronics
RMB 80 Establish
Huayixin District District and 51.00%
million ment
Hangzhou Hangzhou information
Binjiang Binjiang
RMB 150 Automotive Establish
Huaruijie District District 51.00%
million Electronics ment
Hangzhou Hangzhou
3492024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Longquanyi Longquanyi Electronics
Chengdu RMB 600 Establish
District District and 100.00%
Zhilian million ment
Chengdu Chengdu information
RMB Longquanyi Longquanyi Electronics
Chengdu Establish
554.70 District District and 100.00%
Zhian ment
million Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu RMB 50 Establish
District District and 100.00%
Zhishu million ment
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu RMB 15 Establish
District District and 100.00%
Zhichuang million ment
Chengdu Chengdu information
Chengdu Electronics
RMB 50 Dayi County Dayi County Establish
Smart and 90.00%
million Chengdu Chengdu ment
Network information
Electronics
Huakong RMB 50 Wuyi County Wuyi County Establish
and 100.00%
Software million Jinhua City Jinhua City ment
information
Binjiang Binjiang Electronics
Huacheng RMB 30 Establish
District District and 100.00%
Software million ment
Hangzhou Hangzhou information
Electronics
RMB 30 Zhengzhou Zhengzhou Establish
Henan Dahua and 100.00%
million Henan Henan ment
information
Binjiang Binjiang Electronics
RMB 50 45% (Note Establish
Huajian District District and
million 2) ment
Hangzhou Hangzhou information
Electronics
Zhengzhou RMB 30 Zhengzhou Zhengzhou Establish
and 100.00%
Dahua Zhian million Henan Henan ment
information
Electronics
Dahua RMB 1 Establish
Singapore Singapore and 100.00%
International million ment
information
Electronics
RMB 30 Establish
Anhui Zhilian Hefei Anhui Hefei Anhui and 100.00%
million ment
information
Electronics
RMB 30 Establish
Anhui Zhishu Hefei Anhui Hefei Anhui and 100.00%
million ment
information
Electronics
Changsha RMB 100 Changsha Changsha Establish
and 100.00%
Dahua million Hunan Hunan ment
information
Electronics
Tianjin RMB 30 Hexi District Hexi District Establish
and 100.00%
Huajian million Tianjin Tianjin ment
information
RMB Xiaoshan Xiaoshan Electronics
Zhejiang Establish
442.14044 District District and 75.11%
Pixfra ment
8 million Hangzhou Hangzhou information
Yiwu City Yiwu City Electronics
RMB 10 Establish
Yiwu Huaxi Zhejiang Zhejiang and 100.00%
million ment
Province Province information
Xiaoshan Xiaoshan Electronics
Dahua RMB 100 Establish
District District and 100.00%
Operation million ment
Hangzhou Hangzhou information
Nanyang Nanyang Electronics
Nanyang RMB 10 Establish
City Henan City Henan and 100.00%
Intelligent million ment
Province Province information
Yibin City Yibin City Electronics
RMB 20 Establish
Yibin Huahui Sichuan Sichuan and 100.00%
million ment
Province Province information
Chengdu Chengdu Electronics
Chengdu RMB 10 Establish
City Sichuan City Sichuan and 100.00%
Huazhiwei million ment
Province Province information
Xi'an City Xi'an City Electronics
RMB 20 Establish
IMOU Xi'an Shaanxi Shaanxi and 100.00%
million ment
Province Province information
3502024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Luoyang Luoyang Electronics
Luoyang RMB 10 Establish
City Henan City Henan and 100.00%
Zhiyu million ment
Province Province information
Binjiang Binjiang Electronics
Huaqi RMB 100 Establish
District District and 100.00%
Intelligence million ment
Hangzhou Hangzhou information
Chongzhou Chongzhou
Electronics
Chengdu RMB 20 City City Establish
and 100.00%
Information million Chengdu Chengdu ment
information
City City
Business
combinat
Binjiang Binjiang Electronics
HJ RMB 20 ion not
District District and 100.00%
Technology million under
Hangzhou Hangzhou information
common
control
Xiaoshan Xiaoshan Electronics
Shuhang RMB 10 Establish
District District and 100.00%
Intelligent million ment
Hangzhou Hangzhou information
Haizhu Haizhu Electronics
RMB 10 Establish
Huaxiyue District District and 100.00%
million ment
Guangzhou Guangzhou information
Xiaoshan Xiaoshan New
Huajie RMB 50 Establish
District District energy 100.00%
Operation million ment
Hangzhou Hangzhou operations
Electronics
RMB 7 Qingdao Qingdao Establish
Qingdao Ruifa and 100.00%
million Shandong Shandong ment
information
Shandong Electronics
RMB 10 Jinan Jinan Establish
Digital and 100.00%
million Shandong Shandong ment
Intelligence information
Qingliu Qingliu Electronics
Fujian RMB 10 Establish
County County and 100.00%
Qingchuang million ment
Fujian Fujian information
Changchun Changchun Electronics
RMB 10 Establish
Jilin Zhilian Jilin Jilin and 100.00%
million ment
Province Province information
Electronics
Zhengzhou RMB 10 Zhengzhou Zhengzhou Establish
and 100.00%
Huaao million Henan Henan ment
information
Electronics
RMB 10 Hainan Hainan Establish
Hainan Huizhi and 100.00%
million Province Province ment
information
RMB Electronics
Dahua Hong Establish
669.68734 Hong Kong Hong Kong and 100.00%
Kong ment
7 million information
Electronics
EUR Establish
Dahua Europe Netherlands Netherlands and 100.00%
200000 ment
information
Electronics
Dahua Middle AED 1 United Arab United Arab Establish
and 100.00%
East million Emirates Emirates ment
information
Electronics
MXN 90 Establish
Dahua Mexico Mexico Mexico and 100.00%
million ment
information
Electronics
CLP 360 Establish
Dahua Chile Chile Chile and 100.00%
million ment
information
COP Electronics
Dahua Establish
4616.7090 Columbia Columbia and 100.00%
Colombia ment
16 million information
Electronics
Dahua AUD Establish
Australia Australia and 100.00%
Australia 150000 ment
information
3512024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Electronics
Dahua USD Establish
Singapore Singapore and 100.00%
Singapore 220000 ment
information
Electronics
Dahua South ZAR 5 Establish
South Africa South Africa and 100.00%
Africa million ment
information
Electronics
PEN 2.2 Establish
Dahua Peru Peru Peru and 100.00%
million ment
information
BRL Electronics
Establish
Dahua Brazil 41.334811 Brazil Brazil and 100.00%
ment
million information
Electronics
RUB 30 Establish
Dahua Russia Russia Russia and 100.00%
million ment
information
Electronics
Dahua CAD Establish
Canada Canada and 100.00%
Canada 250000 ment
information
Electronics
Dahua USD Establish
Panama Panama and 100.00%
Panama 10000 ment
information
Electronics
Dahua HUF 303 Establish
Hungary Hungary and 100.00%
Hungary million ment
information
Electronics
PLN 2.2 Establish
Dahua Poland Poland Poland and 100.00%
million ment
information
Electronics
USD Establish
Dahua Tunisia Tunisia Tunisia and 100.00%
89000 ment
information
Electronics
KES 15 Establish
Dahua Kenya Kenya Kenya and 100.00%
million ment
information
Electronics
GBP Establish
Dahua UK UK UK and 100.00%
100000 ment
information
Electronics
Dahua BGN Establish
Bulgaria Bulgaria and 100.00%
Bulgaria 350000 ment
information
Electronics
RSD 23 Establish
Dahua Serbia Serbia Serbia and 100.00%
million ment
information
Electronics
Dahua EUR Establish
Germany Germany and 100.00%
Germany 150000 ment
information
1000000 Electronics
Dahua Establish
Malaysian Malaysia Malaysia and 100.00%
Malaysia ment
Ringgit information
KRW Electronics
Establish
Dahua Korea 1500 South Korea South Korea and 100.00%
ment
million information
Electronics
Dahua IDR 2600 Establish
Indonesia Indonesia and 100.00%
Indonesia million ment
information
Electronics
INR 234 Establish
Dahua India India India and 100.00%
million ment
information
Electronics
TRY Establish
Dahua Turkey Turkey Turkey and 100.00%
840000 ment
information
Electronics
CZK 5.4 Czech Czech Establish
Dahua Czech and 100.00%
million Republic Republic ment
information
Dahua ARS Electronics Establish
Argentina Argentina 100.00%
Argentina 49686361 and ment
3522024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
information
Electronics
EUR Establish
Dahua Spain Spain Spain and 100.00%
150000 ment
information
Electronics
Dahua KZT 23 Establish
Kazakhstan Kazakhstan and 100.00%
Kazakhstan million ment
information
Electronics
Dahua DKK 1.5 Establish
Denmark Denmark and 100.00%
Denmark million ment
information
Electronics
EUR Establish
Dahua France France France and 100.00%
100000 ment
information
Dahua Electronics
HKD Establish
Technology Hong Kong Hong Kong and 100.00%
500000 ment
Holdings information
Electronics
Dahua AED Establish
Morocco Morocco and 100.00%
Morocco 500000 ment
information
Business
combinat
Electronics
EUR ion not
Dahua Italy Italy Italy and 100.00%
12000 under
information
common
control
Electronics
Dahua Establish
UZS 3200 Uzbekistan Uzbekistan and 100.00%
Uzbekistan ment
information
Electronics
Dahua EUR Establish
Netherlands Netherlands and 100.00%
Netherlands 10000 ment
information
Electronics
Dahua Sri LKR 48 Establish
Sri Lanka Sri Lanka and 100.00%
Lanka million ment
information
Electronics
Dahua PKR 20 Establish
Pakistan Pakistan and 100.00%
Pakistan million ment
information
Electronics
Dahua New NZD New New Establish
and 100.00%
Zealand 300000 Zealand Zealand ment
information
Electronics
Dahua THB 25 Establish
Thailand Thailand and 99.98%
Thailand million ment
information
Electronics
Dahua RON 1 Establish
Romania Romania and 100.00%
Romania million ment
information
Electronics
NGN 100 Establish
Dahua Nigeria Nigeria Nigeria and 100.00%
million ment
information
Electronics
USD Establish
Dahua Israel Israel Israel and 100.00%
300000 ment
information
Electronics
Dahua Mexico MXN Establish
Mexico Mexico and 100.00%
Service 50000 ment
information
Electronics
Huacheng EUR Establish
Netherlands Netherlands and 100.00%
Netherlands 900000 ment
information
Electronics
JPY 6 Establish
Dahua Japan Japan Japan and 100.00%
million ment
information
Electronics
QAR 2.184 Establish
Dahua Qatar Qatar Qatar and 100.00%
million ment
information
3532024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
HKD Electronics
Huacheng Establish
12.023 Hong Kong Hong Kong and 100.00%
Hong Kong ment
million information
Electronics
USD Establish
Dahua Pacific Panama Panama and 100.00%
10000 ment
information
Electronics
Dahua Saudi SAR Establish
Saudi Arabia Saudi Arabia and 100.00%
Arabia 500000 ment
information
Electronics
BDT 5 Establish
Dahua Bengal Bangladesh Bangladesh and 100.00%
million ment
information
Electronics
IMOU AUD Establish
Australia Australia and 100.00%
Australia 147606 ment
information
VND
18569.6 Electronics
IMOU Establish
million Vietnam Vietnam and 100.00%
Vietnam ment
(USD information
800000)
Electronics
HuaRay USD Establish
Singapore Singapore and 100.00%
Singapore 100000 ment
information
Electronics
HuaRay KRW 100 Establish
South Korea South Korea and 100.00%
Korea million ment
information
Electronics
HuaRay EUR Establish
Germany Germany and 100.00%
Germany 25000 ment
information
Electronics
Dahua EUR Establish
Belgium Belgium and 100.00%
Belgium Co. 100000 ment
information
Electronics
Dahua Saudi SAR Establish
Saudi Arabia Saudi Arabia and 100.00%
Arabia Co. 750000 ment
information
Electronics
Dahua USD Establish
Azerbaijan Azerbaijan and 100.00%
Argentina Co. 200000 ment
information
Dahua VND Electronics
Establish
Vietnam Co. 2363.6 Vietnam Vietnam and 100.00%
ment
Ltd. million information
AOA Electronics
Establish
Dahua Angola 176.303 Angola Angola and 100.00%
ment
million information
IMOU Electronics
IDR 10 Establish
Teknologi Indonesia Indonesia and 100.00%
billion ment
Indonesia information
IMOU Electronics
IDR 10 Establish
Indonesia Indonesia Indonesia and 100.00%
billion ment
Senantiasa information
2000.00 Electronics
Hirige Establish
Malaysian Malaysia Malaysia and 100.00%
MaLaysia ment
Ringgit information
Electronics
USD Establish
Dahua Egypt Egypt Egypt and 100.00%
100000 ment
information
Electronics
DAHUA Abu AED Establish
Abu Dhabi Abu Dhabi and 100.00%
Dhabi 100000 ment
information
Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:
3542024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) The Company directly holds 32.7321% equity in Hangzhou Huacheng Network Technology Co. Ltd. and as
agreed upon Ningbo Huayu Investment Management Partnership (Limited Partnership) grants 31.0505% of its voting
rights to the Company. The Company effectively holds 63.7826% of the voting rights in Hangzhou Huacheng Network
Technology Co. Ltd. which constitutes working control so as to incorporate it into the scope of consolidation.
(2) The Company directly holds 45% equity in Zhejiang Huajian Technology Co. Ltd. and as agreed upon Ningbo
Hualing Venture Capital Investment Partnership (Limited Partnership) grants 35% of its voting rights to the Company.The Company effectively holds 80% of the voting rights in Zhejiang Huajian Technology Co. Ltd. which constitutes
working control so as to incorporate it into the scope of consolidation.Basis for holding half or less of the voting rights but still controlling the investee and holding more than half of the
voting rights but not controlling the investee:
As of December 31 2024 the Company held 32.58% equity in Zhejiang HuaRay Technology Co. Ltd. and the
Company was the largest shareholder of HuaRay Technology. The remaining shareholders had a low and dispersed
shareholding ratio therefore was incorporated into the scope of consolidation.
2. The transactions that lead to changes in the shareholder's equity in the subsidiaries while
still has working control over the subsidiary
(1) Explanation of the changes in the shareholder's equity in the subsidiaries
1) In January 2024 the Company acquired 25% equity in Zhejiang Dahua Investment Management Co. Ltd. held by
Zhejiang Huashi Investment Management Co. Ltd. for a consideration of RMB 23.109 million and the Company's
shareholding in Dahua Investment Management Co. increased from 75% to 100% after the acquisition and Dahua
Investment Management Co. became a wholly-owned subsidiary of the Company.
2) In February 2024 the Company transferred 60.50% equity in Huafei Intelligence to its subsidiary Zhejiang Huajian
Technology Co. Ltd. for a consideration of RMB 42.9098 million and at the same time Huafei Intelligence’s original
minority shareholder Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership) transferred 39.5%
equity in Huafei Intelligence to Zhejiang Huajian for a consideration of RMB 28.0155 million. After that Huafei
Intelligence became a wholly-owned subsidiary of Zhejiang Huajian. The Company holds 45% equity in Zhejiang
Huajian with the voting right of 80% so Company's shareholding in Huafei Intelligence has changed from 60.50% to
45% and Huafei Intelligence remains a subsidiary of the Company and is incorporated into the scope of consolidation.
3) In December 2024 the Company acquired 3.60% of the equity of Phone World Communications Group Co. Ltd. a
shareholder of its subsidiary Zhoushan Operation for a consideration of RMB 1039176.00. After the equity transfer
the Company's shareholding ratio in Zhoushan Operation increased from 58.80% to 62.40%. Zhoushan Operation is
still a subsidiary of the Company and is included in the scope of consolidation.
(2) The effect of the transactions on the equity of the minority shareholders and the shareholder's equity
attributable to the parent company
Unit: RMB
Investment Management
Huafei Intelligent Zhoushan Operation
Company
Purchase cost/Disposal 23109000.00 28015493.50 1039176.00
3552024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
consideration
-- Cash 23109000.00 28015493.50 1039176.00
-- Fair value of non-cash
assets
Purchase cost/ Total
23109000.0028015493.501039176.00
disposal consideration
Less: the share of net
assets of the subsidiary
calculated based on the 22887421.83 26396990.00 1045855.89
ratio of equity
obtained/disposed
Difference 221578.17 1618503.50 -6679.89
Among them: adjust the
-221578.17-1618503.506679.89
capital reserve
Adjusted surplus
reserve
Adjusted
undistributed profits
3. Equity in joint venture arrangements or affiliates
(1) Financial Summary of Non-essential Joint Ventures and Affiliates
Unit: RMB
Closing balance / current period Opening balance / amount occurred
amount in the previous period
Joint ventures:
The total count of the following items
based on the shareholding ratios
Affiliates:
Total book value of investments 722241568.57 727453629.75
The total count of the following items
based on the shareholding ratios
--Net profit 14958434.46 -242631295.52
--Other comprehensive income -7514266.44 9013070.41
--Total comprehensive income 7444168.02 -233618225.11
XI. Government Subsidies
1. Government grants recognized as accounts receivable at the end of the reporting period
□ Applicable □Not applicable
Reasons for failure to receive the estimated amount of government subsidy at the estimated time point
□ Applicable □Not applicable
3562024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. Projects related to government subsidies
□Applicable □ Not applicable
Unit: RMB
Amount Amounts
The amount recorded as transferred Other
Related to
Accounting Opening of new non- to other changes in Closing
assets/earni
Accounts Balance subsidies in operating gains in the the current Balance
ngs
this period revenue in current period
this period period
Deferred 15184437 40829317. 11448444. 18122524 Related to
Income 3.02 46 19 6.29 assets
Deferred 14867300. 9911533.3 4955766.7 Related to
Income 02 2 0 income
3. Government subsidies recorded into current profits and losses
□Applicable □ Not applicable
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Accounting Accounts
Period Period
Other Incomes 987842683.73 932636785.62
XII. Risks Relating to Financial Instruments
1. Various risks arising from financial instruments
The company faces various financial risks in its operations: credit risk liquidity risk and market risk (including
exchange rate risk interest rate risk and other price risks).The overall objective of the Company's risk management is to formulate risk management policies that can minimize
risks without affecting the Company's competitiveness and adaptability to changes too much.(I) Credit Risk
The credit risk refers to the risk of financial loss to the Company as a result of a counterparty's failure to fulfill its
contractual obligations. The Company is mainly facing with the customer credit risk arising from sales on account.Before signing a new contract the Company will assess the new customer's credit risk including external credit rating
and the credibility letter from a bank under some circumstances (if such information is available). The Company has
set a credit limit for sales on account for each customer. Such limit shall be the maximum amount with no additional
approval needed.The Company ensures that the overall credit risk is within the controllable range through quarterly monitoring of credit
ratings of existing customers and monthly review of aging analysis on accounts receivable. When monitoring
customers' credit risk the Company groups them according to their credit characteristics. Customers rated as "high
risk" will be placed on the restricted customer list. The Company can provide them with O/A in the future period only
when additional approval is obtained. Otherwise they must make relevant payment in advance.
3572024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
For overseas customers the Company mainly uses wire transfer as a payment method. According to the credit
evaluation of each customer the Company gives different credit lines and credit account periods and agrees on the
payment method and account period in the commodity procurement contract between the two parties. After the sales
of products the Company has a dedicated person responsible for tracking reconciliation and payment reminding. In
addition the Company introduced export credit insurance to ensure that the return risk from overseas customers is
within controllable range.(II) Liquidity Risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement by cash or
other financial assets.The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. The liquidity risk is under the
concentrated control of the Company's Financial Department. Through monitoring the balance of cash and securities
cashable at any time and rolling forecasting the cash flow in the next 12 months the Financial Department ensures
that the Company has sufficient funds to repay its debts under all reasonable predictions.The financial liabilities of the Company are listed as follows based on the undiscounted contractual cash flow:
December 31 2024
Item
Within 1 year 1 years or above Total
Short-term loan 995000000.00 995000000.00
Notes Payable 3599974242.02 3599974242.02
Accounts Payable 5877976861.13 5877976861.13
Other Payables 637013560.05 637013560.05
Non-current Liabilities Due within 1
124348757.02124348757.02
Year
Lease liabilities 120670497.25 120670497.25
Total 11234313420.22 120670497.25 11354983917.47
December 31 2023
Item
Within 1 year 1 years or above Total
Short-term loan 961559707.96 961559707.96
Notes Payable 3296294946.26 3296294946.26
Accounts Payable 5815123195.55 5815123195.55
Other Payables 812424146.52 812424146.52
Non-current Liabilities Due within 1
924321195.99924321195.99
Year
Lease liabilities 187049189.60 187049189.60
Total 11809723192.28 187049189.60 11996772381.88
(III) Market Risk
The market risk of financial instruments refers to the risk of fluctuation at fair value of financial instruments or future
cash flows with the change of market prices including exchange rate risks interest rate risks and other price risks.
3582024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
1. Interest rate risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due
to the change of market interest rate. The interest rate risk faced with by the Company is mainly from bank loans. The
Company's assets and liabilities relating to interest rate are respectively bank deposits and short-term loans whose
interest rate risk is low.
2. Exchange rate risk
The exchange rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due
to the change of foreign exchange rate. The Company will try its best to match the revenues with the expenses in
foreign currency to lower the exchange rate risk. In addition the Company may also sign forward foreign exchange
contracts or currency swap contracts to avoid exchange rate risks.The exchange rate risk faced with by the Company is mainly from financial assets and liabilities in USD. The amounts
of assets and liabilities in foreign currencies and converted into RMB are listed as below:
Closing Balance Opening Balance
Item Other foreign Other foreign
USD Total USD Total
currencies currencies
Cash
and
2177690323.1222643014.3400333337.41211603667.3821528161.5033131828.7
Bank
3606227463
Balance
s
Account
s 4082571616. 2667735918. 6750307535.3 3780152844. 2615801053. 6395953897.4
receivabl 81 53 4 06 40 6
e
Account
831712779.4276142582.61107855362.0734434093.9242813777.1
s 977247871.11
05592
Payable
7091974719.4166521515.11258496234.5726190605.6680142991.12406333597.
Total
572481329830
XIII. Disclosure of Fair Value
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Fair values at period-end
Item First level Second level Third level
measurement at fair measurement at fair measurement at fair Total
value value value
I. Constant
measurement at fair -- -- -- --
value
(I) Trading Financial
149726569.6480200959.64229927529.28
Assets
1. Financial assets at
149726569.6480200959.64229927529.28
fair value through
3592024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
profit or loss in this
period
(1) Investment in
149726569.64149726569.64
equity instruments
(2) Others 80200959.64 80200959.64
(II) Receivables
841815267.43841815267.43
Financing
(III) Other Non-
current Financial 1232393960.16 42303530.71 1274697490.87
Assets
1. Financial assets at
fair value through
1232393960.1642303530.711274697490.87
profit or loss in this
period
(1) Investment in
debt instrument
(2) Investment in
42303530.7142303530.71
equity instrument
(3) Derivative
Financial Assets
(4) Others 1232393960.16 1232393960.16
Total assets
constantly measured 149726569.64 2154410187.23 42303530.71 2346440287.58
at fair value
(IV) Transactional
1058039.733210563.794268603.52
Financial Liabilities
Derivative
1058039.731058039.73
Financial Liabilities
Others 3210563.79 3210563.79
Total amount of
liabilities constantly
1058039.733210563.794268603.52
measured at their fair
values
2. Basis for determining the market value of continuous and non-continuous third-level fair
value measurement items
The company determines the fair value based on the unadjusted quoted prices of the same assets or liabilities that are
available at the measurement date in the active market.
3. For the continuous and non-continuous second-level fair value measurement items the
valuation techniques adopted and the qualitative and quantitative information of important
parameters
The fair value of the derivative financial assets/derivative financial liabilities is measured and recognized with reference
to different parameters determined by the financial institutions on the basis of the market conditions then existing as
well as the remaining term and transaction term of such transaction.Due to the short remaining term of the receivables financing the book value is close to the fair value and the nominal
amount is used as the fair value.
3602024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Other non-current financial assets are valued on the basis of quotations provided by financial institutions.The valuation of trading financial assets is indirectly measured according to the product description.
4. For the continuous and non-continuous third-level fair value measurement items the
valuation techniques adopted and the qualitative and quantitative information of important
parameters
Evaluate the value and net book assets based on the income method and asset-based method.
5. The fair value of financial assets and financial liabilities not measured at fair value
The fair value of financial assets and financial liabilities measured by the Company at amortized cost is equivalent to
the book value.XIV. Related Parties and Related-party Transactions
1. The Company's Parent Company
Proportion of
Shareholding
Name of parent Registered Registered voting rights of
Business Nature ratio of the
company Address Capital the parent
parent company
company
Controlling shareholders
Fu Liquan 31.07% 31.26%
and actual controller
Chen Ailing Actual controller 2.16% 2.18%
The final controllers of the Company are Mr. Fu Liquan and Ms. Chen Ailing.
2. Information about the Company's subsidiaries
For details of subsidiaries of the Company see Note "X. Equities in other entities".
3. Information about the Company's joint ventures and affiliates
For details of important associates or joint ventures of the Company see Note "X. Equities in other entities".Here is the information about other joint ventures and affiliates that have related-party transactions with the Company
in the current period or have balance from related-party transactions with the Company in the previous period:
Names of joint ventures and affiliates Relationship with the Company
Intelbras S.A. Affiliate
Guangdong Zhishi Digital Technology Co. Ltd. Affiliate
Ruicity Digital Technology Co. Ltd. And its subsidiaries Affiliate
Dezhou Shuzhi Information Technology Co. Ltd. Affiliate
Zhejiang Huachuang Vision Technology Co. Ltd. Affiliate
Ningbo Cida Yongshun Intelligent Technology Co. Ltd. Affiliate
Guangxi FTZ Huaqin Wisdom Park Technology Research
Affiliate
Institute Co. Ltd.Ningbo Huayan Chuangxi Venture Capital Investment
Affiliate
Partnership (Limited Partnership)
3612024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
4. Information about other related parties
Relationship between the Company and other related
Names of other related parties
parties
Zhejiang Huanuokang Technology Co. Ltd. and its
Enterprise controlled by the actual controller
subsidiaries
Huayan Capital (Hangzhou) Private Equity Fund
Enterprise controlled by the actual controller
Management Co. Ltd.Zhejiang Hyxi Technology Co. Ltd. Enterprise controlled by the actual controller
Ningbo Hualing Venture Capital Investment Partnership
Enterprise controlled by the actual controller
(Limited Partnership)
Zhejiang Huashi Investment Management Co. Ltd. Enterprise controlled by the actual controller
Enterprises where the actual controller has significant
Zhejiang Lancable Technology Co. Ltd.influence
Zhejiang Leapmotor Technology Co. Ltd. and its affiliates Enterprises where the actual controller has significant
(Note 1) influence
China Mobile Communications Group Co. Ltd. and its
Shareholders holding more than 5% of the shares
affiliates
Enterprises where the Company’s supervisors serve as
Beijing Haitian Ruisheng Science Technology Ltd.directors
Company A and other companies under its control Related parties
Enterprises with significant influence from shareholders
Hangzhou Vision Robot Technology Co. Ltd. (Note 2)
holding more than 5% of the Company's shares
Enterprises controlled by shareholders holding more than
Hangzhou Xintu Technology Co. Ltd. (Note 2)
5% of the company's shares.
Other notes:
Note 1: "Zhejiang Leapmotor Technology Co. Ltd. and its affiliates" includes a total of eight companies that have
related transactions with the Company namely Zhejiang Leapmotor Technology Co. Ltd. Leapmotor Automobile Co.Ltd. Zhejiang Leapmotor Automobile Sales Service Co. Ltd. Jinhua Leapmotor New Energy Automotive Parts
Technology Co. Ltd. Chongqing Lingdi Automobile Sales Service Co. Ltd. Jinhua Lingsheng Technology Co.Ltd.Zhejiang Lingsheng Technology Co. Ltd. and Lingxiao Energy Technology (Wuyi) Co. Ltd.Note 2: Hangzhou Vision Robot Technology Co. Ltd. and Hangzhou Xintu Technology Co. Ltd. ended the affiliated
relationship in April 2024.
5. Information about related-party transactions
(1) Related-party transactions involving purchase and selling of merchandise and provision
and acceptance of labor services
Merchandise purchase and acceptance of labor services
Unit: RMB
Content of the Amount Over the Amount
Approved
Related parties related - party Occurred in the transaction limit Occurred in the
transaction limit
transaction Current Period or not Previous Period
Company A and
Purchase of
other companies 251120672.03 No 220043806.51
materials
under its control
China Mobile Material
69439293.57 No 65645012.10
Communications procurement
3622024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Group Co. Ltd. acceptance of
and its affiliates services
Zhejiang
Huachuang
Purchase of
Vision 41355588.69 No 86413751.62
materials
Technology Co.Ltd.Ruicity Digital
Technology Co. Purchase of
8517077.21 No 8967655.86
Ltd. And its materials
subsidiaries
Zhejiang
Material
Leapmotor
procurement
Technology Co. 5890244.00 No 1228401.43
acceptance of
Ltd. and its
services
affiliates
Zhejiang
Material
Huanuokang
procurement
Technology Co. 1753437.75 No 157371.67
acceptance of
Ltd. and its
services
subsidiaries
Purchase of
Intelbras S.A. 135122.60 No
materials
Beijing Haitian
Ruisheng Acceptance of
130230.19 No
Science services
Technology Ltd.Hangzhou Vision Material
Robot procurement
13301.89 No 174659.74
Technology Co. acceptance of
Ltd. services
Zhejiang
Lancable Purchase of
2548.68 No
Technology Co. materials
Ltd.Sales of merchandise and provision of services
Unit: RMB
Content of the related - Amount Occurred in the Amount Occurred in the
Related parties
party transaction Current Period Previous Period
Intelbras S.A. Sales of merchandise 1272280696.42 865178578.92
Zhejiang Leapmotor
Sales of goods and
Technology Co. Ltd. and 405417599.67 311398339.87
provision of services
its affiliates
China Mobile
Sales of goods and
Communications Group 189924499.42 196450005.15
provision of services
Co. Ltd. and its affiliates
Dezhou Shuzhi Information Sales of goods and
9665438.582199876.09
Technology Co. Ltd. provision of services
Ruicity Digital Technology
Co. Ltd. And its Sales of merchandise 6370044.11 12502503.49
subsidiaries
Guangdong Zhishi Digital
Sales of merchandise 5696670.05 3635895.54
Technology Co. Ltd.Ningbo Cida Yongshun
Sales of goods and
Intelligent Technology Co. 2786571.83 8905782.27
provision of services
Ltd.
3632024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Hyxi Technology Sales of goods and
2383310.22
Co. Ltd. provision of services
Zhejiang Huanuokang
Technology Co. Ltd. and Sales of merchandise 1628266.86 1100912.16
its subsidiaries
Zhejiang Huachuang Sales of goods and
996525.684227590.71
Vision Technology Co. Ltd. provision of services
Guangxi FTZ Huaqin
Wisdom Park Technology Sales of merchandise 414132.75 145836.73
Research Institute Co. Ltd.Hangzhou Xintu Sales of goods and
1362.745424.92
Technology Co. Ltd. provision of services
Zhejiang Lancable
Sales of merchandise -9204.38 22761.06
Technology Co. Ltd.Company A and other
companies under its Sales of merchandise 30913.16
control
Hangzhou Vision Robot
Sales of merchandise 13761.08
Technology Co. Ltd.
(2) Related leasing
The Company being the lessor:
Unit: RMB
Rental income confirmed in Rental income confirmed in
Name of the lessee Type of the leased assets
this period the previous period
Zhejiang Hyxi Technology
Buildings and constructions 2231731.00 738194.50
Co. Ltd.Zhejiang Huanuokang
Technology Co. Ltd. and Buildings and constructions 1773201.45 1875248.10
its subsidiaries
Zhejiang Leapmotor
Technology Co. Ltd. and Buildings and constructions 268976.15 268975.94
its affiliates
Huayan Capital
(Hangzhou) Private Equity
Buildings and constructions 93212.07 93489.58
Fund Management Co.Ltd.Huayan Capital
(Hangzhou) Private Equity
Transport device 14115.04
Fund Management Co.Ltd.Zhejiang Huachuang
Buildings and constructions 20091.72 20091.73
Vision Technology Co. Ltd.The Company being the lessee:
Unit: RMB
Simplified rental Variable lease
expenses for payments not
Interest expense
Type short-term leases included in the Increased right-
Name Rent paid on lease
of the and low-value measurement of of-use assets
of the liabilities borne
leased asset leases (if lease liabilities (if
lessor
assets applicable) applicable)
Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
t t t t t t t t t t
3642024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr
ed in ed in ed in ed in ed in ed in ed in ed in ed in ed in
the the the the the the the the the the
Curren Previo Curren Previo Curren Previo Curren Previo Curren Previo
t us t us t us t us t us
Period Period Period Period Period Period Period Period Period Period
Zhejia
ng
Leapm
otor Machin
Techno ery
103410342148424104
logy and
915.00915.002.270.11
Co. equip
Ltd. ment
and its
affiliate
s
(3) Related guarantee
The Company being the guarantor:
Unit: RMB
Guarantee
Amount fulfilled
Secured parties Starting date Maturity date
guaranteed completely
or not
Zhejiang Dahua Vision
530000000.00 April 07 2020 March 31 2024 Yes Technology Co. Ltd.
Zhejiang Dahua Vision Three years after the maturity of the
1000000000.00 February 04 2021 Yes
Technology Co. Ltd. debts in the master contract
From the effective date of the
Commitment Letter to three years
after the maturity date of each loan
or other financing under the Credit
Zhejiang Dahua Vision Agreement or of the accounts
400000000.00 June 09 2023 Yes
Technology Co. Ltd. receivable claims granted by the
Hangzhou Branch of China
Merchants Bank or the advance
date of each advance within the
credit extension period
From the start of the guarantee
period to three years after the
Zhejiang Dahua Vision maturity date of each note
200000000.00 June 25 2023 Yes
Technology Co. Ltd. discounted by the Hangzhou
Branch of China Merchants Bank
within the credit extension period
Three years from the next day of
Zhejiang Dahua Vision
200000000.00 November 20 2023 ICBC Qingchun Sub-branch's Yes
Technology Co. Ltd.external payment commitment
Zhejiang Dahua Vision Two years after the maturity of the
220000000.00 October 13 2017 No
Technology Co. Ltd. debts in the master contract
Zhejiang Dahua Vision
Technology Co. Ltd. Two years after the maturity of the
40000000.00 September 21 2018 No
(guarantee currency is debts in the master contract
US dollar)
Zhejiang Dahua Vision Five years upon expiration of debt
300000000.00 September 01 2020 No
Technology Co. Ltd. period of master contract
Zhejiang Dahua Vision Three years after the maturity of the
440000000.00 July 26 2021 Yes
Technology Co. Ltd. debts in the master contract
Zhejiang Dahua Vision Three years after the maturity of the
200000000.00 October 20 2021 Yes
Technology Co. Ltd. debts in the master contract
3652024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Dahua Vision Three years after the maturity of the
200000000.00 July 22 2022 No
Technology Co. Ltd. debts in the master contract
Zhejiang Dahua Vision
600000000.00 September 19 2022 September 18 2024 Yes
Technology Co. Ltd.From the date of expiration of the
performance period of each debt in
the master contract until three years
Zhejiang Dahua Vision
400000000.00 July 24 2023 after the date of expiration of the No
Technology Co. Ltd.performance period of the last due
master debt under all master
contracts
Three years from the effective date
of the Maximum Amount Guarantee
Zhejiang Dahua Vision Contract to the expiration date of
500000000.00 July 25 2023 Yes
Technology Co. Ltd. the performance period of each
debt under the Credit Business
Agreement
Calculated separately on the basis
of a single credit business handled
by Dahua Vision Technology for the
debtor i.e. from the date of signing
Zhejiang Dahua Vision
900000000.00 September 26 2023 of the master contract for a single No
Technology Co. Ltd.credit business to three years after
the expiration date of the debtor's
debt performance period under
such master contract
Three years from the expiration
Zhejiang Dahua Vision date of the debtor's performance
330000000.00 September 26 2023 No
Technology Co. Ltd. period as agreed in the master
claim contract
Three years from the next day after
Zhejiang Dahua Vision the expiry date of each type of
1000000000.00 March 01 2024 No
Technology Co. Ltd. financing business under the master
contract
Two years from the expiration date
Zhejiang Dahua Vision
530000000.00 April 01 2024 of the debtor's performance period No
Technology Co. Ltd.as agreed in the master contract
From the effective date of the
Commitment Letter to three years
after the maturity date of each loan
or other financing under the Credit
Zhejiang Dahua Vision Agreement or of the accounts
400000000.00 June 07 2024 No
Technology Co. Ltd. receivable claims granted by the
Hangzhou Branch of China
Merchants Bank or the advance
date of each advance within the
credit extension period
Three years from the expiration
Zhejiang Dahua Vision date of the debtor's performance
495000000.00 July 25 2024 No
Technology Co. Ltd. period as agreed in each specific
financing contract
The guarantee period is three years
from the effective date of the
Maximum Amount Guarantee
Zhejiang Dahua Vision
500000000.00 August 16 2024 Contract until the expiration date of No
Technology Co. Ltd.the performance period of each
debt under the Credit Business
Agreement.The guarantee period is from the
effective date of the specific
business credit contract to three
Zhejiang Dahua Vision years after the expiration of the debt
680000000.00 September 19 2024 No
Technology Co. Ltd. performance period stipulated in the
specific business credit contract
(including early maturity of the
debt).
3662024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Three years from the expiration
Zhejiang Dahua Vision date of the debtor's performance
200000000.00 December 13 2024 No
Technology Co. Ltd. period as agreed in the master
contract.From the effective date of the
Commitment Letter to three years
after the maturity date of each loan
or other financing under the Credit
Zhejiang Dahua Zhilian Agreement or of the accounts
160000000.00 June 09 2023 Yes
Co. Ltd. receivable claims granted by the
Hangzhou Branch of China
Merchants Bank or the advance
date of each advance within the
credit extension period
Zhejiang Dahua Zhilian Two years after the maturity of the
300000000.00 September 24 2020 Yes
Co. Ltd. debts in the master contract
Zhejiang Dahua Zhilian
120000000.00 June 19 2023 June 18 2024 Yes
Co. Ltd.Zhejiang Dahua Zhilian
350000000.00 June 19 2023 June 18 2024 Yes
Co. Ltd.Zhejiang Dahua Zhilian Three years after the maturity of the
165000000.00 July 26 2021 Yes
Co. Ltd. debts in the master contract
Zhejiang Dahua Zhilian
Co. Ltd. (guarantee 5000000.00 December 03 2021 December 02 2024 Yes
currency is US dollar)
Zhejiang Dahua Zhilian
200000000.00 August 25 2022 September 27 2024 Yes
Co. Ltd.Zhejiang Dahua Zhilian
200000000.00 September 28 2024 August 25 2025 No
Co. Ltd.Zhejiang Dahua Zhilian
150000000.00 September 19 2022 September 18 2024 Yes
Co. Ltd.Zhejiang Dahua Zhilian
Co. Ltd. (guarantee 12500000.00 July 13 2023 July 12 2024 Yes
currency is US dollar)
From the date of expiration of the
performance period of each debt in
the master contract until three years
Zhejiang Dahua Zhilian
500000000.00 July 24 2023 after the date of expiration of the Yes
Co. Ltd.performance period of the last due
master debt under all master
contracts
One year from the expiration date of
Zhejiang Dahua Zhilian
10000000.00 January 02 2024 the debtor's performance period as Yes
Co. Ltd.agreed in the master contract
Two years from the expiration date
Zhejiang Dahua Zhilian
300000000.00 March 29 2024 of the debtor's performance period No
Co. Ltd.as agreed in the master contract
From the effective date of the
Commitment Letter to three years
after the maturity date of each loan
or other financing under the Credit
Zhejiang Dahua Zhilian Agreement or of the accounts
160000000.00 June 07 2024 No
Co. Ltd. receivable claims granted by the
Hangzhou Branch of China
Merchants Bank or the advance
date of each advance within the
credit extension period
The guarantee period starts from
the expiration date of the
performance period of each
principal debt under the master
Zhejiang Dahua Zhilian
600000000.00 July 25 2024 contract and ends three years after No
Co. Ltd.the expiration date of the
performance period of the last due
principal debt under all master
contracts.
3672024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Three years from the expiration
Zhejiang Dahua Zhilian date of the debtor's performance
165000000.00 July 25 2024 No
Co. Ltd. period as agreed in each specific
financing contract
The guarantee period is from the
effective date of the specific
business credit contract to three
Zhejiang Dahua Zhilian years after the expiration of the debt
150000000.00 September 19 2024 No
Co. Ltd. performance period stipulated in the
specific business credit contract
(including early maturity of the
debt).Three years from the expiration
Zhejiang Dahua Zhilian date of the debtor's performance
100000000.00 September 26 2024 No
Co. Ltd. period as agreed in the master
contract.From the effective date of the
Commitment Letter to three years
after the maturity date of each loan
or other financing under the Credit
Zhejiang Dahua
Agreement or of the accounts
System Engineering 40000000.00 June 09 2023 Yes
receivable claims granted by the
Co. Ltd.Hangzhou Branch of China
Merchants Bank or the advance
date of each advance within the
credit extension period
Zhejiang Dahua
Two years after the maturity of the
System Engineering 10000000.00 August 30 2019 Yes
debts in the master contract
Co. Ltd.Zhejiang Dahua
System Engineering 5000000.00 August 25 2022 September 27 2024 Yes
Co. Ltd.Zhejiang Dahua
System Engineering 5000000.00 September 28 2024 August 25 2025 No
Co. Ltd.Three years from the effective date
of the Maximum Amount Guarantee
Zhejiang Dahua
Contract to the expiration date of
System Engineering 50000000.00 July 25 2023 Yes
the performance period of each
Co. Ltd.debt under the Credit Business
Agreement
One year from the signing of the
Zhejiang Dahua
project contract or 6 months of
System Engineering 1602100.00 September 11 2023 Yes
stable operation of the system on
Co. Ltd.line (whichever is later)
From the effective date of the
Commitment Letter to three years
after the maturity date of each loan
or other financing under the Credit
Zhejiang Dahua
Agreement or of the accounts
System Engineering 40000000.00 June 10 2024 No
receivable claims granted by the
Co. Ltd.Hangzhou Branch of China
Merchants Bank or the advance
date of each advance within the
credit extension period
The guarantee period is three years
from the effective date of the
Zhejiang Dahua Maximum Amount Guarantee
System Engineering 50000000.00 August 16 2024 Contract until the expiration date of No
Co. Ltd. the performance period of each
debt under the Credit Business
Agreement.Zhejiang Dahua Two years from the expiration date
System Engineering 10000000.00 September 3 2024 of the debtor's performance period No
Co. Ltd. as agreed in the master contract
Dahua Technology 2000000.00 April 21 2023 April 21 2024 Yes
3682024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(HK) Limited
(guarantee currency is
US dollar)
Dahua Technology
(HK) Limited
3000000.00 April 22 2024 April 22 2025 No
(guarantee currency is
US dollar)
DAHUA
TECHNOLOGY
MEXICO S.A. DE C.V 1000000.00 October 18 2023 October 20 2024 Yes
(guaranteed currency
is US dollar)
DAHUA
TECHNOLOGY
MEXICO S.A. DE C.V 1000000.00 October 18 2024 October 17 2025 No
(guaranteed currency
is US dollar)
Hangzhou Huacheng
Two years after the maturity of the
Network Technology 50000000.00 August 30 2019 Yes
debts in the master contract
Co. Ltd.Hangzhou Huacheng
Three years after the maturity of the
Network Technology 55000000.00 July 26 2021 Yes
debts in the master contract
Co. Ltd.Hangzhou Huacheng
Network Technology 65000000.00 August 25 2022 September 27 2024 Yes
Co. Ltd.Dahua Technology UK
Limited (guaranteed 1160000.00 August 12 2020 Sign the Termination Notice Letter No
currency is GBP)
Dahua Technology UK
Limited (guarantee 1000000.00 March 04 2024 March 03 2025 No
currency is US dollar)
Zhejiang Huayixin
Technology Co. Ltd. Three years after the maturity of the
2000000.00 May 16 2022 Yes
(guarantee currency: debts in the master contract
US dollar)
Zhejiang Huayixin Three years after the maturity of the
10000000.00 April 29 2022 No
Technology Co. Ltd. debts in the master contract
Zhejiang Huayixin
2000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Zhejiang Huayixin
2000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.Zhejiang Huayixin
8000000.00 October 21 2022 September 18 2024 Yes
Technology Co. Ltd.From the effective date of the
commitment letter to three years
after the maturity date of each loan
Zhejiang Huayixin or other financing under the Credit
10000000.00 September 26 2024 No
Technology Co. Ltd. Agreement or of the creditor's rights
granted by the Hangzhou Branch of
China Merchants Bank or the
advance date of each advance.From the start of the guarantee
period to three years after the
Zhejiang Fengshi maturity date of each note
20000000.00 June 25 2023 Yes
Technology Co. Ltd. discounted by the Hangzhou
Branch of China Merchants Bank
within the credit extension period
Zhejiang Fengshi
100000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Zhejiang Fengshi
100000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.Zhejiang Fengshi
20000000.00 October 21 2022 September 18 2024 Yes
Technology Co. Ltd.Zhejiang Fengshi From the effective date of the
30000000.00 September 3 2024 No
Technology Co. Ltd. commitment letter to three years
3692024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
after the maturity date of each loan
or other financing under the Credit
Agreement or of the creditor's rights
granted by the Hangzhou Branch of
China Merchants Bank or the
advances date of each advance;
The guarantee period is from the
effective date of the specific
business credit contract to three
Zhejiang Fengshi years after the expiration of the debt
15000000.00 September 19 2024 No
Technology Co. Ltd. performance period stipulated in the
specific business credit contract
(including early maturity of the
debt).Jiangsu Huaruipin
8000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Jiangsu Huaruipin
8000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.Jiangsu Huaruipin
15000000.00 October 21 2022 September 18 2024 Yes
Technology Co. Ltd.The guarantee period is from the
effective date of the specific
business credit contract to three
Jiangsu Huaruipin years after the expiration of the debt
15000000.00 September 19 2024 No
Technology Co. Ltd. performance period stipulated in the
specific business credit contract
(including early maturity of the
debt).Zhejiang Huaxiao
2000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Zhejiang Huaxiao
2000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.Zhejiang Huaxiao
8000000.00 October 21 2022 September 18 2024 Yes
Technology Co. Ltd.From the start of the guarantee
period to three years after the
Xi'an Dahua Zhilian maturity date of each note
50000000.00 June 25 2023 Yes
Technology Co. Ltd. discounted by the Hangzhou
Branch of China Merchants Bank
within the credit extension period
Xi'an Dahua Zhilian
100000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Xi'an Dahua Zhilian
25000000.00 October 21 2022 September 18 2024 Yes
Technology Co. Ltd.The guarantee period is from the
effective date of the specific
business credit contract to three
Xi'an Dahua Zhilian years after the expiration of the debt
20000000.00 September 19 2024 No
Technology Co. Ltd. performance period stipulated in the
specific business credit contract
(including early maturity of the
debt).Xi'an Dahua Zhilian
100000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.From the effective date of the
commitment letter to three years
after the maturity date of each loan
or other financing under the Credit
Xi'an Dahua Zhilian
30000000.00 December 06 2024 Agreement or of the creditor's rights No
Technology Co. Ltd.granted by the Xi'an Branch of
China Merchants Bank or the
advance date of each advance
within the credit extension period;
Zhengzhou Dahua From the start of the guarantee
Zhian Information 50000000.00 June 25 2023 period to three years after the Yes
Technology Co. Ltd. maturity date of each note
3702024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
discounted by the Hangzhou
Branch of China Merchants Bank
within the credit extension period
Zhengzhou Dahua
Zhian Information 30000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Zhengzhou Dahua
Zhian Information 30000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.Zhengzhou Dahua
Zhian Information 50000000.00 July 16 2024 June 09 2025 No
Technology Co. Ltd.From the start of the guarantee
Chengdu Dahua Zhian period to three years after the
Information maturity date of each note
80000000.00 June 25 2023 Yes
Technology Service discounted by the Hangzhou
Co. Ltd. Branch of China Merchants Bank
within the credit extension period
Chengdu Dahua Zhian
Information
80000000.00 July 16 2024 June 09 2025 No
Technology Service
Co. Ltd.From the start of the guarantee
period to three years after the
Changsha Dahua maturity date of each note
10000000.00 June 25 2023 Yes
Technology Co. Ltd. discounted by the Hangzhou
Branch of China Merchants Bank
within the credit extension period
Changsha Dahua
30000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Changsha Dahua
50000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.Changsha Dahua
20000000.00 October 21 2022 September 18 2024 Yes
Technology Co. Ltd.The guarantee period is from the
effective date of the specific
business credit contract to three
Changsha Dahua years after the expiration of the debt
20000000.00 September 19 2024 No
Technology Co. Ltd. performance period stipulated in the
specific business credit contract
(including early maturity of the
debt).Zhejiang Pixfra
5000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Zhejiang Pixfra
5000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.Zhejiang Huafei
Intelligent Technology 2000000.00 August 25 2022 September 27 2024 Yes
CO. LTD.Zhejiang Huafei
Intelligent Technology 2000000.00 September 28 2024 August 25 2025 No
CO. LTD.Zhejiang Huajian
2000000.00 August 25 2022 September 27 2024 Yes
Technology Co. Ltd.Zhejiang Huajian
2000000.00 September 28 2024 August 25 2025 No
Technology Co. Ltd.Hangzhou Xiaohua
2000000.00 August 25 2022 September 27 2024 Yes
Technology CO. LTD.Hangzhou Xiaohua
2000000.00 September 28 2024 August 25 2025 No
Technology CO. LTD.Zhejiang Dahua
Security Network
5000000.00 August 25 2022 September 27 2024 Yes
Operation Service Co.Ltd.Zhejiang Dahua
5000000.00 September 28 2024 August 25 2025 No
Security Network
3712024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Operation Service Co.Ltd.Dahua Technology
France SAS
145700.00 December 07 2023 August 31 2029 No
(guarantee currency is
EUR)
DAHUA EUROPE B.V.(guaranteed currency 1500000.00 March 04 2024 March 03 2025 No
is US dollar)
Dahua Technology
Italy S.R.L.
500000.00 March 04 2024 March 03 2025 No
(guaranteed currency
is US dollar)
(4) Asset transfer and debt restructuring of related parties
Unit: RMB
Content of the related - Amount Occurred in the Amount Occurred in the
Related parties
party transaction Current Period Previous Period
Zhejiang Huachuang Procurement of fixed
33671.8440630.42
Vision Technology Co. Ltd. assets
China Mobile
Procurement of fixed
Communications Group 1767786.05
assets
Co. Ltd. and its affiliates
Zhejiang Huachuang
Selling of fixed assets 612608.16
Vision Technology Co. Ltd.Zhejiang Huanuokang
Technology Co. Ltd. and Selling of fixed assets 2792.34
its subsidiaries
(5) Remuneration to key management personnel
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Salary of key management personnel 32004911.06 22009460.55
(6) Other related-party transactions
1) In January 2024 the Company acquired 25% equity in Zhejiang Dahua Investment Management Co. Ltd. held by
its affiliate Zhejiang Huashi Investment Management Co. Ltd. for a consideration of RMB 23.109 million and the
Company's shareholding in Dahua Investment Management Co. increased from 75% to 100% after the acquisition
and Dahua Investment Management Co. became a wholly-owned subsidiary of the Company.
2) In February 2024 the controlling subsidiary Zhejiang Huajian purchased 39.5% equity in Huafei Intelligence from
an affiliate Ningbo Huaying Venture Capital Partnership (Limited Partnership) at a consideration of RMB 28.0155
million.
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
3722024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Closing Balance Opening Balance
Item Name Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Accounts
Intelbras S.A. 591354065.58 29567703.28 399216383.81 19960819.19
receivable
Zhejiang
Leapmotor
Accounts
Technology Co. 264675710.56 13357368.51 158504082.59 7998998.48
receivable
Ltd. and its
affiliates
China Mobile
Accounts Communications
153789928.6821308153.74140286722.7715390276.69
receivable Group Co. Ltd.and its affiliates
Ruicity Digital
Accounts Technology Co.
17669453.041408576.5718610308.671161880.61
receivable Ltd. And its
subsidiaries
Guangdong
Accounts Zhishi Digital
7550832.132958999.914757349.37267081.04
receivable Technology Co.Ltd.Dezhou Shuzhi
Accounts Information
6231962.01311598.10
receivable Technology Co.Ltd.Ningbo Cida
Yongshun
Accounts
Intelligent 2642556.01 132127.80 4955930.01 247796.50
receivable
Technology Co.Ltd.Zhejiang
Huachuang
Accounts
Vision 2602776.37 201453.69 1503214.40 75211.10
receivable
Technology Co.Ltd.Zhejiang Hyxi
Accounts
Technology Co. 2049201.90 102460.10
receivable
Ltd.Company A and
Accounts
other companies 315750.18 252847.40 2708124.52 1194095.64
receivable
under its control
Zhejiang
Huanuokang
Accounts
Technology Co. 291210.78 14560.54 5512687.07 766592.10
receivable
Ltd. and its
subsidiaries
Guangxi FTZ
Huaqin Wisdom
Accounts
Park Technology 31170.00 1558.50 31200.00 1560.00
receivable
Research
Institute Co. Ltd.Zhejiang
Accounts Lancable
15000.00750.00
receivable Technology Co.Ltd.Accounts Hangzhou Xintu N/A (Note 1) N/A (Note 1) 81.60 4.08
3732024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
receivable Technology Co.Ltd.Huayan Capital
(Hangzhou)
Accounts Private Equity
181.509.08
receivable Fund
Management
Co. Ltd.Company A and
Prepayments other companies 747840.52 685807.08
under its control
China Mobile
Communications
Prepayments 376505.05 473044.59
Group Co. Ltd.and its affiliates
China Mobile
Communications
Contract Assets 5745492.32 747625.61 7708740.44 1807246.75
Group Co. Ltd.and its affiliates
Ruicity Digital
Technology Co.Contract Assets 155050.00 44122.80 206733.38 20141.74
Ltd. And its
subsidiaries
Zhejiang Hyxi
Contract Assets Technology Co. 90160.20 4508.01
Ltd.China Mobile
Other Communications
3199859.09573371.541965652.24265848.14
Receivables Group Co. Ltd.and its affiliates
Zhejiang
Leapmotor
Other
Technology Co. 244850.00 14485.00 64850.00 3242.50
Receivables
Ltd. and its
affiliates
Note 1: The affiliated relationship ended in April 2024.
(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening balance
China Mobile
Accounts Payable Communications Group 36039551.28 38418336.92
Co. Ltd. and its affiliates
Zhejiang Huachuang
Accounts Payable 9010272.07 12132312.24
Vision Technology Co. Ltd.Ruicity Digital Technology
Accounts Payable Co. Ltd. And its 2324793.29 9167655.86
subsidiaries
Zhejiang Leapmotor
Accounts Payable Technology Co. Ltd. and 1735191.79 730299.40
its affiliates
Zhejiang Huanuokang
Accounts Payable Technology Co. Ltd. and 107500.00 61513.26
its subsidiaries
Accounts Payable Zhejiang Lancable 3970.00
3742024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Technology Co. Ltd.China Mobile
Contract liabilities Communications Group 9457312.09 12139953.98
Co. Ltd. and its affiliates
Contract liabilities Intelbras S.A. 3033496.96
Zhejiang Leapmotor
Contract liabilities Technology Co. Ltd. and 2375139.56 1648066.02
its affiliates
Huayan Capital
(Hangzhou) Private Equity
Contract liabilities 107.09
Fund Management Co.Ltd.Zhejiang Huanuokang
Contract liabilities Technology Co. Ltd. and 340855.09
its subsidiaries
Hangzhou Xintu
Contract liabilities N/A (Note 1) 1362.58
Technology Co. Ltd.Zhejiang Hyxi Technology
Contract liabilities 0.02
Co. Ltd.Ningbo Hualing Venture
Capital Investment
Other Payables 13727591.82
Partnership (Limited
Partnership)
Ningbo Huayan Chuangxi
Venture Capital Investment
Other Payables 4683641.32
Partnership (Limited
Partnership)
China Mobile
Other Payables Communications Group 10647937.20 5363787.00
Co. Ltd. and its affiliates
Zhejiang Leapmotor
Other Payables Technology Co. Ltd. and 300000.00 173520.00
its affiliates
Zhejiang Huachuang
Other Payables 200816.89
Vision Technology Co. Ltd.Zhejiang Huanuokang
Other Payables Technology Co. Ltd. and 63070.00 63070.00
its subsidiaries
Zhejiang Leapmotor
Lease liabilities Technology Co. Ltd. and 6550386.06 7370458.79
its affiliates
Note 1: The affiliated relationship ended in April 2024.XV. Share-based Payment
1. Overview of share-based payment
□Applicable □ Not applicable
Unit: RMB
Category Granted in the current Exercising in the Unlocked in the current Lapsed in the current
of granted period current period period period
recipients Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Senior 3295423. 6424880. 2026248 1703927 2134680. 1309048
managem 00 91 0.00 61.52 00 0.38
3752024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
ent other
managem
ent and
key
business
personnel
3295423.6424880.202624817039272134680.1309048
Total
00910.0061.52000.38
Stock options or other equity instruments outstanding at the end of the period
□Applicable □ Not applicable
The stock options outstanding at the end of Other equity instruments outstanding at the
Category of granted the period end of the period
recipients Range of exercise Remaining term of Range of exercise Remaining term of
prices contract prices contract
Senior management
other management
RMB 15.473/share 6 months RMB 8.16/share 0 months
and key business
personnel
Other notes:
(1) The employees of the Company and its subsidiaries hold the equity of HuaRay Technology through capital
increase direct or indirect equity transfers. According to the fair value of the investors recently introduced by HuaRay
Technology the confirmed share-based payment fee is RMB 67761179.01.
(2) The employees of the Company and its subsidiaries hold the equity of Huacheng Network through capital increase
direct or indirect equity transfers. According to the fair value of the investors recently introduced by Huacheng Network
the confirmed share-based payment fee is RMB 7165137.03.
(3) The employees of the Company and its subsidiaries hold the equity of Pixfra Technology through capital increase
direct or indirect equity transfers. According to the fair value of the investors recently introduced by Pixfra Technology
the confirmed share-based payment fee is RMB 21062879.23.
(4) The amount of employee services paid in equity under the Company's 2022 Stock Option and Restricted Share
Incentive Plan was RMB 126418531.55. The amount of share-based payments transferred back to equity settlement
due to repurchase cancellation and the failure of the third batch to meet the unlocking conditions was RMB
190488038.76.
2. Situation of equity-settled share-based payment
□Applicable □ Not applicable
Unit: RMB
The fair value of the restricted stocks shall be determined
based on the stock price and the grant cost of the stocks
The method for determining the fair value of equity or stock price of the most recent external investor entry
instruments on the day of granting as at the grant date while the fair value of the stock
options shall be determined under the Black-Scholes
Model
The basis for determining the amount of exercisable Estimated according to equity instruments held by the
equity instruments employees
Reason for the significant difference between the
None
estimation of current period and the previous period
3762024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
The accumulated amount of equity-settled share-based
366862718.17
payment counted into the capital reserve
Amount of equity-settled share-based payment confirmed
31919688.06
in current period
3. Situation of cash-settled share-based payment
□ Applicable □Not applicable
4. Share-based payments in the current period
□Applicable □ Not applicable
Unit: RMB
Category of granted recipients Equity-settled share-based payments Cash-settled share-based payments
Senior management other
management and key business 31919688.06
personnel
Total 31919688.06
5. Modification and termination of share-based payment
None
XVI. Commitments and Contingencies
1. Significant commitments
Important commitments on the balance sheet day
As of December 31 2024 the pledge information of the Company was as follows:
(1) On May 30 2024 the Company and Hangzhou Branch of Zheshang Bank Co. Ltd. entered into the "Guarantee
Contract for Pledge of Asset Pool" with the number (33100000) Zheshang Asset Pool Quality (2024) No. 09915 (the
contract term is from May 30 2024 to May 30 2025) to provide a guarantee for the "Asset Pool Business Cooperation
Agreement" signed by the Company together with the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. the
subsidiary Zhejiang Dahua System Engineering Co. Ltd. the subsidiary Zhejiang Fengshi Technology Co. Ltd. the
subsidiary Zhejiang Xiaohua Technology Co. Ltd. and Hangzhou Branch of Zheshang Bank Co. Ltd. The financing
amount for the fund's pledge pool cannot be more than RMB 2.5 billion.Under the notes pool business as of December 31 2024 the Company had undue notes receivable of RMB
111858771.13 (where RMB 100000000.00 was related party notes receivable that should be included in the scope
of consolidation) the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. had undue notes receivable of RMB
703589691.91 (where RMB 196000000.00 was related party notes receivable that should be included in the scope
of consolidation) the subsidiary Zhejiang Dahua System Engineering Co. Ltd. had undue notes receivable of RMB
1017285.77.
3772024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Under the pledge the Company issued the banker’s acceptance in the amount of RMB 2822420.81 the subsidiary
Zhejiang Dahua Vision Technology Co. Ltd. issued the banker’s acceptance in the amount of RMB 493227085.61
and the subsidiary Zhejiang Dahua System Engineering Co. Ltd. issued the banker’s acceptance in the amount of
RMB 316800.00.
(2) On May 30 2024 the subsidiary Zhejiang Dahua Zhilian Co. Ltd. and Hangzhou Branch of Zheshang Bank Co.
Ltd. entered into the "Guarantee Contract for Pledge of Asset Pool" with the number (33100000) Zheshang Asset
Pool Quality (2024) No. 09483 (the contract term is from May 30 2024 to May 30 2025) to provide a guarantee for
the "Asset Pool Business Cooperation Agreement" signed by Zhejiang Dahua Zhilian Co. Ltd. together with Hangzhou
Branch of Zheshang Bank Co. Ltd. The financing amount for the fund pledge pool cannot be more than RMB 0.5
billion.Under the notes pool business as of December 31 2024 RMB 339436060.45 of undue notes receivable (of which
RMB 201288024.00 was related party notes that should be included in the scope of the consolidated financial
statements) of the subsidiary Zhejiang Dahua Zhilian Co. Ltd. were pledged for the issuance of acceptance bills.Under the pledge the subsidiary Zhejiang Dahua Zhilian Co. Ltd. issued the banker’s acceptance in the amount of
RMB 194168524.09.
(3) On June 1 2022 the Company and Hangzhou Branch of China Merchants Bank Co. Ltd. signed the "Credit
Agreement for Notes Pool Business" (No.: 571XY2022013930) which promised a special credit limit of RMB 1.5 billion
for the notes pool and allocated the same limit to the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. the
subsidiary Zhejiang Dahua System Engineering Co. Ltd. the subsidiary Hangzhou Huacheng Network Technology
Co. Ltd. the subsidiary Zhejiang Fengshi Technology Co. Ltd. the subsidiary Zhejiang Huafei Intelligent Technology
Co. Ltd. the subsidiary Zhejiang Huayixin Technology Co. Ltd. the subsidiary Zhejiang Huaxiao Technology Co.Ltd. the subsidiary Zhejiang Huajian Technology Co. Ltd. the subsidiary Xi'an Dahua Zhilian Technology Co. Ltd.the subsidiary Zhejiang Dahua Intelligent IoT Operation Service Co. Ltd. and the subsidiary Zhejiang Dahua Zhilian
Co. Ltd.Under the notes pool business as of December 31 2024 the Company had undue notes receivable of RMB
309288766.63 (where RMB 300000000.00 was related party notes receivable that should be included in the scope
of consolidation) the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. had undue notes receivable of RMB
264622431.02 (where RMB 100000000.00 was related party notes receivable that should be included in the scope
of consolidation) the subsidiary Zhejiang Dahua System Engineering Co. Ltd. had undue notes receivable of RMB
5222730.00 the subsidiary Zhejiang Huajian Technology Co. Ltd. had undue notes receivable of RMB 4704401.62.
Under this pledge the Company issued the banker’s acceptance in the amount of RMB 413782.35 its subsidiary
Hangzhou Huacheng Network Technology Co. Ltd. issued the banker’s acceptance in the amount of RMB
146780702.18 the subsidiary Zhejiang Dahua System Engineering Co. Ltd. issued the banker’s acceptance in the
amount of RMB 100000.01 the subsidiary Zhejiang Dahua Zhilian Co. Ltd. issued the banker’s acceptance in the
amount of RMB 43622576.39 and the subsidiary Zhejiang Fengshi Technology Co. Ltd. issued the banker’s
acceptance in the amount of RMB 298673883.20. The subsidiary Zhejiang Huajian Technology Co. Ltd. issued the
banker’s acceptance in the amount of RMB 714892.09 the subsidiary Zhejiang Huaxiao Technology Co. Ltd. issued
the banker’s acceptance in the amount of RMB 82581.53 the subsidiary Zhejiang Huayixin Technology Co. Ltd.
3782024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
issued the banker’s acceptance in the amount of RMB 159583.12 and the subsidiary Xi'an Dahua Zhilian Technology
Co. Ltd. issued the banker’s acceptance in the amount of RMB 273352.30.
(4) On May 17 2024 the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. and Bank of Hangzhou Co. Ltd.
entered into the “Supplemental Agreement to the Asset Steward Pledge Contract” (No. E-C-B-18-2) and extended the
term of “Pledge Contract for Maximum Amount of Individual Asset Management” to May 16 2027 agreeing on
providing a guarantee for the “Asset Management Service Agreement” signed by the subsidiary Zhejiang Dahua Vision
Technology Co. Ltd. and Hangzhou Bank Co. Ltd. The credit limit of the notes pool cannot be more than RMB 0.2
billion.Under the notes pool business as of December 31 2024 RMB 42659381.96 of undue notes receivable of the
subsidiary Zhejiang Dahua Vision Technology Co. Ltd. were pledged for the issuance of acceptance bills.Under the pledge the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. issued the bank acceptance bills in the
amount of RMB 0.
(5) Under the Asset Pool Charge-off Agreement No. PPHJQZCZ 20240726-001 (the contract term is from August 20
2024 to August 19 2025) made by and between the Company and Ping An Bank Co. Ltd. Hangzhou Branch on
August 20 2024 a special credit quota of RMB 1 billion in note pool was granted and was also allocated to the
subsidiary Zhejiang Dahua Vision Technology Co. Ltd. the subsidiary Jiangsu Huaruipin Technology Co. Ltd. the
subsidiary Zhejiang PixFra Technology Co. Ltd. and the subsidiary Changsha Dahua Technology Co. Ltd.Under the notes pool business as of December 31 2024 the Company had undue notes receivable of RMB
200000000.00 (where RMB 200000000.00 was related party notes receivable that should be included in the scope
of consolidation) the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. had undue notes receivable of RMB
114938425.25 (where RMB 94000000.00 was related party notes receivable that should be included in the scope of
consolidation) the subsidiary Jiangsu Huaruipin Technology Co. Ltd. had undue notes receivable of RMB
1054366.00 the subsidiary Changsha Dahua Technology Co. Ltd. had undue notes receivable of RMB 3962257.09
and the subsidiary Zhejiang PixFra Technology Co. Ltd. had undue notes receivable of RMB 1066011.00 pledged for
issuing banker’s acceptance bills.Under the pledge the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. issued the banker’s acceptance in the
amount of RMB 117525482.80 the subsidiary Jiangsu Huaruipin Technology Co. Ltd. issued the banker’s
acceptance in the amount of RMB 9651054.45 the subsidiary Zhejiang PixFra Technology Co. Ltd. issued the
banker’s acceptance in the amount of RMB 646120.68 and the subsidiary Changsha Dahua Technology Co. Ltd.issued the banker’s acceptance in the amount of RMB 7855237.13.
(6) The subsidiary Zhejiang HuaRay Technology Co. Ltd. and Hangzhou Branch of China Merchants Bank Co. Ltd.
entered into the "Credit Agreement for Notes Pool Business" agreeing on a credit limit of RMB 0.2 billion for notes
pool business.Under the asset pool business as of December 31 2024 RMB 38143859.04 of undue notes receivable of the
subsidiary Zhejiang HuaRay Technology Co. Ltd. were pledged for the issuance of acceptance bills.
3792024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Under the pledge the subsidiary Zhejiang HuaRay Technology Co. Ltd. issued the banker’s acceptance in the
amount of RMB 34917760.19.
2. Contingencies
(1) Important contingent matters on the balance sheet day
None
(2) If no important contingent matter to be disclosed by the Company it should also be noted
accordingly
No important contingent matter needs to be disclosed by the Company.XVII. Events after the Balance Sheet Date
1. Important non-adjusting items
None
2. Profit distribution
Proposed dividend per 10 shares (RMB) 4.58
Based on 3279257910 shares after deducting the
repurchased shares (19819601 shares) the Company
will distribute a cash dividend of RMB 4.58 (tax inclusive)
for every 10 shares to all shareholders and the total
Profit distribution plan amount of this cash dividend will be RMB
1501900122.78 (tax inclusive). It will not convert capital
reserve into share capital or distribute bonus shares and
the remaining undistributed profit will be retained for
future distribution.
3. Other events after the balance sheet date
Under the "Proposal on the Sale of Equity in a Controlling Subsidiary" approved at the Tenth Meeting of the Eighth
Board of Directors on March 3 2025 the Company transferred its 32.7321% equity interest in Hangzhou Huacheng
Network Technology Co. Ltd. (hereinafter referred to as "Huacheng Network") (corresponding to a capital contribution
of RMB 25.5 million) to Shanghai Zhicheng Enterprise Management Partnership (Limited Partnership) at a price of
RMB 716.8329 million. After the completion of this transaction the Company no longer holds shares in its controlling
subsidiary Huacheng Network and Huacheng Network and its subsidiaries are no longer included in the Company's
consolidated financial statements.
3802024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
XVIII. Other Significant Events
1. Subsection information
(1) Basis for determining the reporting subsection and the accounting policy
The Company determines the operation subsection based on internal organization structure management
requirements internal reporting system etc. The Company has only one operational subsection namely the R&D
production and sales of intelligent IoT products. The accounting policy of the reporting subsection is consistent with
that of the Company.
(2) Financial information of the reporting subsection
Regional subsection
Unit: RMB
Item Operating income Operating Cost
Domestic 15886994088.01 10584111985.06
Overseas 16293937739.16 9097574619.45
Total 32180931827.17 19681686604.51
Product subsection
Unit: RMB
Item Operating income Operating Cost
Smart IoT Products and
25775422871.1415187851740.07
Solutions
Including: Software Business 1685487112.56 590089111.30
Innovative Businesses 5566291857.39 3765335736.52
Others 839217098.64 728499127.92
Total 32180931827.17 19681686604.51
XIX. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 3626113282.05 6181011320.94
1 to 2 years 278227149.44 220370669.05
2 to 3 years 118907668.74 205500322.81
3 years or above 327790735.16 209345603.19
3 to 4 years 156150890.29 139992165.49
4 to 5 years 104733137.94 48597714.50
5 years or above 66906706.93 20755723.20
Total 4351038835.39 6816227915.99
3812024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book Proporti Proporti
Amount Amount proporti value Amount Amount proporti value
on on
on on
Account
s
receiva
bles
with the
bad
debt 37472 37472 100.00 39711 39711 100.00
0.86%0.58%
provisio 879.25 879.25 % 390.05 390.05 %
n
accrued
based
on
single
item
Includin
g:
Account
s
receiva
ble with
insignifi
cant
single
amount 37472 37472 100.00 39711 39711 100.00
0.86%0.58%
but 879.25 879.25 % 390.05 390.05 %
accrued
for
separat
e
provisio
n of bad
debt
Account
s
receiva
bles
with the
bad
43135413946776566409
debt 174068 135569
65956.99.14%4.04%97263.16525.99.42%2.00%46970.
provisio 692.58 555.41
14569453
n
accrued
based
on
combin
ations
Includin
3822024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
g:
Portfoli
o 1:
31370313705668856688
Related
38601.72.10%38601.00812.83.17%00812.
Parties
58583535
Portfoli
o
Portfoli
o 2:
Aging 11765 10024 11077
174068135569972146
Analysi 27354. 27.04% 14.80% 58661. 15713. 16.25% 12.24%
692.58555.41158.18
s 56 98 59
Portfoli
o
43510413946816266409
100.00211541100.00175280
Total 38835. 97263. 27915. 46970.%571.83%945.46
39569953
Provision for bad debt accrued by single item: RMB 37472879.25
Unit: RMB
Opening Balance Closing Balance
Name Reason for Bad debt Bad debt Accrued
Book balance Book balance making bad
provision provision proportion
debt provision
Expected to
Customer 1 38612198.42 38612198.42 36675477.42 36675477.42 100.00% be unable to
recover
Other Expected to
sporadic 1099191.63 1099191.63 797401.83 797401.83 100.00% be unable to
customers recover
Total 39711390.05 39711390.05 37472879.25 37472879.25
Bad debt accrual by portfolio: RMB 174068692.58
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year 741593923.13 37079696.14 5.00%
1 to 2 years 194550469.95 19455047.00 10.00%
2 to 3 years 106858536.64 32057560.99 30.00%
3 to 4 years 83391550.19 41695775.10 50.00%
4 to 5 years 31761306.50 25409045.20 80.00%
5 years or above 18371568.15 18371568.15 100.00%
Total 1176527354.56 174068692.58
If the bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable □Not applicable
(3) Provision for bad debts accrued recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category
Balance Recovered or Accrued Written Off Others Balance
Reversed
Bad debt 175280945.4 43519705.19 7259078.82 211541571.8
3832024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
provision 6 3
175280945.4211541571.8
Total 43519705.19 7259078.82
63
Significant amount of recovered or reversed bad debt provision in this period:
None
(4) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 7259078.82
Write-off of important accounts receivable:
None
(5) Accounts receivable and contract assets of the top five closing balances collected by
debtors
Unit: RMB
Closing balance
As a percentage of provision for
Closing balance
Ending balance Closing balance of accounts bad debts on
of accounts
Name of Unit of accounts of contract receivables and accounts
receivable and
receivable assets total ending receivable and
contract assets
balance impairment of
contract assets
2620757789.72620757789.7
Customer 1 59.67%
77
Customer 2 167012007.88 3943041.50 170955049.38 3.89% 33871554.22
Customer 3 95296222.66 95296222.66 2.17%
Customer 4 93316133.94 93316133.94 2.13%
Customer 5 69567760.14 69567760.14 1.58%
3045949914.33049892955.8
Total 3943041.50 69.44% 33871554.22
99
2. Other Accounts Receivable
Unit: RMB
Item Closing Balance Opening Balance
Other Receivables 13384626871.41 11736609900.41
Total 13384626871.41 11736609900.41
(1). Other Accounts Receivable
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Deposits 45415624.12 42885100.54
Prepaid or advance expense 47488662.92 55413467.31
3842024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Employee home loan 50462191.00 70683455.00
Incomings and outgoings 13273651357.52 11602342723.04
Others 5892194.26 401773.49
Total 13422910029.82 11771726519.38
2) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 12984563624.75 11151113722.07
1 to 2 years 97135520.98 152050338.67
2 to 3 years 57731188.49 103271253.97
3 years or above 283479695.60 365291204.67
3 to 4 years 40037678.96 156024115.87
4 to 5 years 63092431.82 38468597.33
5 years or above 180349584.82 170798491.47
Total 13422910029.82 11771726519.38
3) Disclosure by bad debt accrual method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti Proporti
Amount Amount proporti value Amount Amount proporti value
on on
on on
Provisio
n of bad
debts 13422 13384 11771 11736
100.0038283100.0035116
based 910029 0.29% 626871 726519 0.30% 609900
%158.41%618.97
on .82 .41 .38 .41
combin
ation
Inclu
ding:
Portfoli
o 1:
13273132731160211602
Related
65135798.89%65135734272398.56%342723
Parties.52.52.04.04
Portfoli
o
Portfoli
o 2:
Aging
1492583828311097516938335116134267
Analysi 1.11% 25.65% 1.44% 20.73%
672.30158.41513.89796.34618.97177.37
s
Portfoli
o
13422133841177111736
100.0038283100.0035116
Total 910029 626871 726519 609900
%158.41%618.97.82.41.38.41
3852024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Bad debt accrual by portfolio: RMB 38283158.41
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
71540357.593577017.885.00%
year)
1 to 2 years 20965616.88 2096561.69 10.00%
2 to 3 years 21935101.15 6580530.34 30.00%
3 to 4 years 11939763.56 5969881.78 50.00%
4 to 5 years 14093331.99 11274665.59 80.00%
5 years or above 8784501.13 8784501.13 100.00%
Total 149258672.30 38283158.41
Provision for bad debts based on general model of expected credit losses:
Unit: RMB
Phase One Phase Two Phase Three
Expected credit Expected credit
Bad debt provision Expected credit losses for the entire losses for the entire Total
losses in the next 12
extension (without extension (with credit
months
credit impairment) impairment)
Balance as of
22429894.6211227684.561459039.7935116618.97
January 1 2024
Balance in the
current period as of
January 1 2024
--Transfer to phase
-630851.57630851.57
two
--Transfer to phase
-106833.00-45300.00152133.00
three
Provisions of this
-1160971.022746481.761696459.703281970.44
period
Write off in this
10631.00100000.004800.00115431.00
period
Balance as of
20520608.0314459717.893302832.4938283158.41
December 31 2024
Book balance changes with significant changes in loss provision in the current period
□ Applicable □Not applicable
4) Provision for bad debts accrued recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category
Balance Recovered or Resale or Accrued Others Balance
Reversed write-off
Bad debt
35116618.973281970.44115431.0038283158.41
provision
Total 35116618.97 3281970.44 115431.00 38283158.41
Significant amount of recovered or reversed bad debt provision in this period:
3862024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
None
5) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 115431.00
Write-off of other important receivables:
None
6) Other receivables of the top five closing balances collected by debtors
Unit: RMB
As a Bad debt
percentage provision
Nature of the of total other at the
Name of Unit Closing Balance Aging
funds receivables end of
at the end of the
the period period
RMB 9145703015.13
within 1 year RMB 8240.86
Incomings and 9146100418.6 for 1-2 years RMB
Company 1 68.14%
outgoings 1 387990.83 for 2-3 years
and RMB 1171.79 for more
than 5 years.Incomings and 2099557154.8
Company 2 Within 1 year 15.64%
outgoings 1
804014726.91 yuan within
1 year 1293307.72 yuan in
1-2 years 4400100.00
Incomings and
Company 3 852103334.62 yuan in 2-3 years 6.35%
outgoings
5100400.00 yuan in 3-4
years 37294799.99 yuan in
4-5 years.
Incomings and
Company 4 300973666.25 Within 1 year 2.24%
outgoings
Incomings and
Company 5 247386630.06 Within 1 year 1.84%
outgoings
12646121204.
Total 94.21%
35
3. Long-term Equity Investment
Unit: RMB
Closing Balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in 8006238280 8006238280 8003642515 8003642515
subsidiaries .28 .28 .21 .21
Investment in 156040573.4 156040573.4 188883917.0 188160420.6
723496.39
affiliates and 7 7 3 4
3872024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
joint ventures
8162278853816227885381925264328191802935
Total 723496.39.75.75.24.85
(1) Investment in subsidiaries
Unit: RMB
Opening Decrease/Increase in the current period
Closing
Opening balance of Closing
The Provision balance of balance provision Investmen Investmen balance invested provision
(book for for (book
entity ts t Others
value) impairmen impairmen
for decline
increased decreased value)
t accrued in value t
Zhejiang
Dahua
System 5447178 4055934. 5406619
Engineeri 80.88 30 46.58
ng Co.Ltd.Zhejiang
Dahua
Security
10223591022049
Network 31048.61
96.1847.57
Operation
Service
Co. Ltd.Zhejiang
Dahua
5100000.5100000.
Ju'an
0000
Technolog
y Co. Ltd.Guangxi
Dahua
Informatio 6221853. 6202355.
19497.97
n 65 68
Technolog
y Co. Ltd.Dahua
Technolog 6696873 6696873
y (HK) 47.00 47.00
Limited
Zhejiang
Dahua
1301496752285.41300743
Vision
174.074888.63
Technolog
y Co. Ltd.Guangxi
Dahua
Yunlian
20002582000258
Informatio
0.760.76
n
Technolog
y Co. Ltd.Hangzhou
9463819.145069.69318750.
Xiaohua
79613
Technolog
3882024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
y CO.LTD.Zhejiang
Dahua 1853882 3500000 486878.7 1888395
Zhilian 587.98 0.00 7 709.21
Co. Ltd.Zhejiang
Dahua
Investmen
621750023109008528400
t
0.000.000.00
Managem
ent Co.Ltd.Guangxi
Dahua 7134256 7131624
26315.99
Zhicheng 4.89 8.90
Co. Ltd.Hangzhou
Huacheng
33452821091662.3236116
Network
3.33800.53
Technolog
y Co. Ltd.Zhejiang
HuaRay 4304252 2193308. 4084921
Technolog 5.36 97 6.39
y Co. Ltd.Hangzhou
Fuyang
5131561.5124669.
Hua'ao 6892.13
9178
Technolog
y Co. Ltd.Zhejiang
Huafei
Intelligent 3902080 3628968 2731123.Technolog 9.23 5.29 94
y CO.LTD.Guizhou
Huayi
1800000.1800000.
Shixin
0000
Technolog
y Co. Ltd.Zhejiang
Fengshi 9076201. 9060723.
15477.69
Technolog 62 93
y Co. Ltd.Dahua
Technolog
8102000.7696900.405100.0
y
00000
Holdings
Limited
Zhejiang
Huaxiao 3950319 394243.2 3910895
Technolog 5.53 7 2.26
y Co. Ltd.Xi'an 9914036 356137.5 9910475
Dahua 93.10 5 55.55
3892024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhilian
Technolog
y Co. Ltd.Jiangsu
Huaruipin 1806624 1802067
45566.60
Technolog 0.73 4.13
y Co. Ltd.Beijing
Huayue
Shangche
ng
1098625111354.21087490
Informatio
7.2203.02
n
Technolog
y Service
Co. Ltd.Zhejiang
Dahua
60000006000000
Jinzhi
0.000.00
Technolog
y Co. Ltd.Shanghai
Huashang
Chengyue
Informatio 2624687. 243599.3 2381088.n 57 0 27
Technolog
y Service
Co. Ltd.Zhejiang
Zhoushan
Digital
17640001039176.1867917
Developm
0.00006.00
ent
Operation
Co. Ltd.Guangxi
Dahua 3000000 3000000
Technolog 0.00 0.00
y Co. Ltd.Zhejiang
Huayixin 4105790 4105228
5623.56
Technolog 5.45 1.89
y Co. Ltd.Zhejiang
Huaruijie 5475936 932746.6 5382662
Technolog 9.02 4 2.38
y Co. Ltd.Chengdu
Dahua
Zhilian
6009677277148.66006905
Informatio
11.17662.51
n
Technolog
y Co. Ltd.Chengdu 5547000 5547000
Dahua 00.00 00.00
3902024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhian
Informatio
n
Technolog
y Service
Co. Ltd.Chengdu
Huishan
Smart 5800000. 5800000.Network 00 00
Technolog
y Co. Ltd.Zhejiang
Huajian 2543859 720280.4 2471831
Technolog 4.24 2 3.82
y Co. Ltd.Guangxi
Huacheng 181131.0 162313.7
18817.34
Technolog 7 3
y Co. Ltd.Hangzhou
Huacheng 4537212. 894066.8 3643145.Software 61 2 79
Co. Ltd.Dahua
Technolog
y 72864.00 72864.00
Canada
Inc.Chengdu
Dahua
Zhishu
Informatio 1000000 1000000
n 0.00 0.00
Technolog
y Service
Co. Ltd.Zhengzho
u Dahua
Zhian
30000003000000
Informatio
0.000.00
n
Technolog
y Co. Ltd.Dahua
Technolog
y 1000000. 1000000.Internation 00 00
al Pte.Ltd.Changsha
Dahua 1000295 1000231
6458.92
Technolog 74.72 15.80
y Co. Ltd.Zhejiang
5925107394142.25929049
Pixfra
65.20207.42
Technolog
3912024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
y Co. Ltd.Zhejiang
Dahua
Intelligent
1605020181084.91586911
IoT
3.5298.53
Operation
Service
Co. Ltd.Henan
Dahua
Zhilian
163701.9127933.8
Informatio 35768.02
08
n
Technolog
y Co. Ltd.Yibin
Huahui
Informatio
26184.843166.0323018.81
n
Technolog
y Co. Ltd.Luoyang
Dahua
Zhiyu
10000001000000
Informatio
0.000.00
n
Technolog
y Co. Ltd.Xi'an
IMOU
Zhilian 43251.72 5227.02 38024.70
Technolog
y Co. Ltd.Guangdon
g
Huaxiyue 126189.8 221883.6
95693.81
Intelligent 7 8
Technolog
y Co. Ltd.Total 2055.08 2055.08
amount of
other
companie
s
8003642596380157042248006238
Total
515.212.036.96280.28
(2) Investment in affiliates and joint ventures
Unit: RMB
Openi Openi Decrease/Increase in the current period Closin Closin
The ng ng Invest Adjust Cash Provis g g
invest balan Invest Invest Other balan ment ment divide ion for balan balan
ed ce ments ment chang Otherce of profit on nds or impair ce ce of
entity (book increa decre es in s provisi and other profit ment (book provisi
value) sed ased equity on for loss compr declar accru value) on for
3922024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
impair recog ehens ed to ed declin
ment nized ive distrib e in
under incom ute value
the e
equity
metho
d
Ⅰ. Joint ventures
II. Affiliate
Ruicit
y
-
Digital 7823 5280
2542
Techn 1566. 3494.
8071.
ology 10 38
72
Co.Ltd.Hangz
hou
Juhua
nyan
Inform 7234
ation 96.39
Techn
ology
Co.Ltd.Ningb
o
Huaya
n
Chua
ngxi
Ventur
e
Capita 6743 6762
74735531
l 2554. 6764.
44.3534.55
Invest 80 60
ment
Partn
ership
(Limit
ed
Partn
ership
)
Dezho
u
Shuzh
i
34443598
Inform 1542
758.2959.6
ation 01.41
67
Techn
ology
Co.Ltd.Sichu 1121 - 9602
an 844.5 1615 55.07
3932024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Hengji 6 89.49
Anhua
Intern
et of
Thing
s
Techn
ology
Co.Ltd.Zhejia
ng
Huach
-
uang 3792 3341 3105
1022
Vision 9696. 640.7 1099.
0237.
Techn 92 3 75
90
ology
Co.Ltd.-
188133411560
Subtot 7234 3490 5531
6042640.74057
al 96.39 8353. 34.55
0.6433.47
35
-
188133411560
723434905531
Total 6042 640.7 4057
96.398353.34.55
0.6433.47
35
The recoverable amount is determined as the net of fair value less costs of disposal.□ Applicable □Not applicable
The recoverable amount is determined as the present value of the expected future cash flows.□ Applicable □Not applicable
4. Operating revenue and operating cost
Unit: RMB
Amount Occurred in the Current Period Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 7449795751.08 1430946858.40 10606267041.51 1654449450.35
Other businesses 68395291.00 34191111.71 69647278.51 37059643.16
Total 7518191042.08 1465137970.11 10675914320.02 1691509093.51
5. Investment income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Long-term equity investment income
8304369.491149863.64
calculated by cost method
Long-term equity investment income
-34908353.35-309247666.73
measured by equity method
Investment income from disposal of 6812806.50 4603860940.85
3942024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
long-term equity investment
Investment income from trading
financial assets during the holding 1243275.00
period
Investment income from disposal of
322743089.62
trading financial assets
Investment income of other non-
current financial assets during the 6235327.82 11870549.61
holding period
Investment income from disposal of
10370120.76
other non-current financial assets
Investment income from national
2275761.531256871.91
debt reverse repurchase
Profits from recognition termination of
-10557467.86-4294983.66
financial assets
Total 302148808.75 4314965696.38
XX. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
□Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains and losses on disposal of non-
104348459.46
current assets
The government subsidies included
in the current profits and losses
(excluding the government subsidies
closely related to regular businesses
of the Company in line with national 249665678.30
policies entitled to according to the
established standard and
continuously impacting the
Company’s profits and losses)
Profits and losses resulting from the
changes in fair value for financial
assets and financial liabilities held by
non-financial enterprises and from
disposal of financial assets and 124956271.40
liabilities excluding the effective
hedging businesses related to the
regular business operation of the
Company
Gains or losses from investment or
asset management entrusted to 175635135.76
others
Reversal of the receivables
depreciation reserves for separate 4602004.26
impairment test
Profits and losses on debt
-394660.00
restructuring
3952024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Non-Operating Revenue and
12821255.27
expenses other than the above
Other gains and losses items that fit
the definition of non-recurring gains -1833839.60
and losses
Less: Impact of income tax 85954207.29
Impact of minority equity (after
25516480.20
tax)
Total 558329617.36 --
Other gains or losses that fit the definition of non-recurring gains or losses:
□ Applicable □Not applicable
The Company has no other gains or losses that fit the definition of non-recurring gains or losses.Note for the definition of non-recurring gains and losses listed in the No. 1 Explanatory Announcement on Information
Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses as recurring gains
and losses.□ Applicable □Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit for the reporting
Weighted Average ROE
period Basic Earnings per Share Diluted Earnings per Share
(RMB/Share) (RMB/Share)
Net profit attributable to
common shareholders of 8.19% 0.90 0.90
the Company
Net profit attributable to
common shareholders of
the Company after 6.62% 0.72 0.72
deducting non-recurring
gains and losses
3. Differences in accounting data between domestic and overseas accounting standards
(1) Differences of net profits and net assets in the financial reports disclosed according to the
international accounting standards and Chinese accounting standards
□ Applicable □Not applicable
(2) Differences of net profits and net assets in the financial reports disclosed according to the
overseas accounting standards and Chinese accounting standards
□ Applicable □Not applicable
(3) For explanation of differences in accounting data between domestic and overseas
accounting standards the name of the overseas accounting firm shall be indicated if the
audited data by an overseas accounting firm has been adjusted for difference.□ Applicable □Not applicable
3962024 Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Dahua Technology Co. Ltd.Legal representative: Fu Liquan
March 29 2025
397
沪公网安备31011802005267号
