2025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Dahua Technology Co. Ltd.2025 Semi-Annual Report
August 16 2025
This document is a translated version of the Chinese version 2025 Semi-Annual Report (“2025年半年度报告全文”) and the published annual report in the Chinese version shall prevail.The complete published Chinese 2025 Semi-Annual Report may be obtained at http://www.cninfo.com.cn.
12025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section I Important Notes Table of Contents and Definitions
The Board of Directors Board of Supervisors Directors Supervisors and
Senior Management hereby guarantee that the information presented in this report
are true accurate and complete without 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 (Accounting Officer)
hereby declare and warrant that the financial statements in the semi-annual report
are authentic accurate and complete.All directors attended the meeting of the Board of Directors for deliberation of
this semiannual 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 counter-measures 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 development trends of industrial
technologies to pay full attention to customers' diversified needs and to devote
sufficient R&D investments it may still face the risk of losing market
competitiveness due to discontinuous innovation. By increasing R & D investment
the Company continues to strengthen research on such core technologies as
22025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
multi-dimensional perception large model in AI video cloud big data network
communication network security and 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 transformation: With the development of
technologies such as artificial intelligence big data cloud computing network
communication and IoT as well as the upgrading of intelligent terminal
application methods the business models in the era of artificial intelligence may
impact the development of traditional industries. If enterprises fail to timely grasp
the opportunities brought by the transformation of business models they may
face the risk of their original market patterns being disrupted. The company
continuously monitors and studies significant changes in the global economy
industry and technology sectors analyzes industry development logic assesses
the evolution of the AIoT industry the integration of video technology with digital
technologies including artificial intelligence and the potential diversified needs of
customers. It consolidates its existing advantageous markets actively explores
and pilots new businesses and new commercial models and carries out business
and technology deployments.
(3) Risks of International Operations: The Company's products and solutions
cover more than 100 countries and regions overseas and international business
operations face uncertainties 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
32025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 increasingly complex compliance requirements in the international
business environment intensified regional trade protectionism and controls and
tariff policy volatility have heightened pressures on overseas market expansion.Additionally local manufacturing rules imposed by certain countries and regions
have escalated supply chain challenges leading to continuously rising demands
for compliance capacity building and corresponding cost investments. To this end
the Company actively prevents and responds to risks in international operations
continuously improves the overall overseas compliance and risk control system
enhances proactive risk anticipation and systematic response capabilities for
various risks and continuously strengthens the Company's reserves and
development of local production and manufacturing capabilities. At the same time
the company continuously strengthens its understanding of and adaptability to
the laws regulations and political and economic environments of the regions
involved in its business. It formulates differentiated national business operation
strategies based on the changes in political economic financial and compliance
environments in different regions applying a one country one policy approach to
respond quickly to challenges and reduce business operation pressure.
(4) Exchange Rate Risk: The Company's export sales settlement currency is
mainly in USD and EUR and with overseas business continuously growing
fluctuations in exchange rates may have a certain impact on the Company's
profitability. The Company has progressively increased the proportion of
42025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
transactions in local currencies of non-US dollar countries with USD-denominated
contracts showing a declining trend.
(5) Risks associated with uncertain local fiscal payment capacity: Amid the
current moderate economic recovery elevated debt levels in some regional
governments have yet to yield significant improvements in payment capabilities.This has resulted in delayed project tenders extended timelines and heightened
selectivity in clients and projects. To mitigate these risks the Company
continuously refines credit management policies and optimizes project vetting.Comprehensive risk assessments—covering client creditworthiness project
budgets and delivery viability—are conducted to navigate market fluctuations.The Company actively monitors national debt restructuring policies intensifies
accounts receivable collection and safeguards cash flow to reduce operational
exposure.
(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.
52025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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 overall supply market is stable. The
Company builds a sustainable supply ecosystem through multiple measures
including early supplier design involvement universal selection of new materials
development of secondary suppliers for exclusive materials and flexible inventory
strategies ensuring supply delivery. At the same time the Company focuses on
supplier operational risks by using a procurement supply security management
platform to monitor suppliers' operational status in real time preventing potential
risks.The Company plans not to pay cash dividend give bonus shares or convert
capital reserve into share capital.
62025 Semi-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.. 13
Section III Management Discussion and Analysis ......16
Section IV Company Governance Environment and Soci...37
Section V Significant Events ....................... 39
Section VI Changes in Shares and Information about.. 54
Section VII Bond-Related Information ................62
Section VIII Financial Report ...................... 63
Section IX Other Submitted Data ................... 212
72025 Semi-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 of all the Company's documents publicly disclosed during the reporting period and the original of the
announcement.(III) The reference documents are available at the company's Securities Investment Department for investors to review.
82025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Definitions
Item of Definition Refers To Definitions
Reporting Period Refers To January 1 2025 to June 30 2025
Dahua Company The Company Refers To Zhejiang Dahua Technology Co. Ltd.Dahua System Engineering System
Refers To Zhejiang Dahua System Engineering Co. Ltd.Engineering Company
Dahua Vision Technology Refers To Zhejiang Dahua Vision Technology Co. Ltd.Dahua Security Network Operation
Refers To Zhejiang Dahua Security Network Operation Service Co. Ltd.Company
Dahua Ju'an Refers To Zhejiang Dahua Ju'an Technology Co. Ltd.Guangxi Dahua Information Refers To Guangxi Dahua Information Technology Co. Ltd.Guangxi Yunlian Refers To Guangxi Dahua Yunlian Information Technology Co. Ltd.Xiaohua Technology Hangzhou
Refers To Hangzhou Xiaohua Technology CO. LTD.Xiaohua
Dahua Zhilian Refers To Zhejiang Dahua Zhilian Co. Ltd.Dahua Investment Dahua
Refers To Zhejiang Dahua Investment Management Co. Ltd.Investment Management
Guangxi Zhicheng Dahua Zhicheng Refers To Guangxi Dahua Zhicheng Co. Ltd.Hangzhou Huacheng Huacheng
Refers To Hangzhou Huacheng Network Technology Co. Ltd.Network
HuaRay Technology Refers To Zhejiang HuaRay Technology Co. Ltd.Fuyang Hua'ao Refers To Hangzhou Fuyang Hua'ao Technology Co. Ltd.Huafei Intelligent Refers To Zhejiang Huafei Intelligent Technology CO. LTD.Huachuang Vision Refers To Zhejiang Huachuang Vision Technology Co. Ltd.Guizhou Huayi Refers To Guizhou Huayi Shixin Technology Co. Ltd.Guangxi Huacheng Refers To Guangxi Huacheng Technology Co. Ltd.Meitan Dahua Technology Refers To Guizhou Meitan Dahua Information Technology Co. Ltd.Inner Mongolia Zhimeng Refers To Inner Mongolia Dahua Zhimeng Information Technology Co. Ltd.Tianjin Dahua Information Tianjin
Refers To Tianjin Dahua Information Technology Co. Ltd.Dahua
Hunan Dahua Zhilong Dahua
Refers To Hunan Dahua Zhilong Information Technology Co. Ltd.Zhilong
Huaxiao Technology Refers To Zhejiang Huaxiao Technology Co. Ltd.Vision Technology Refers To Zhejiang Fengshi Technology Co. Ltd.Xi'an Dahua Zhilian Xi'an Dahua Refers To Xi'an Dahua Zhilian Technology Co. Ltd.Huaruipin Refers To Jiangsu Huaruipin Technology Co. Ltd.Beijing Huayue Shangcheng Information Technology Service
Beijing Huayue Refers To
Co. Ltd.Shanghai Huashang Chengyue Information Technology Service
Shanghai Huashang Refers To
Co. Ltd.Dahua Jinzhi Refers To Zhejiang Dahua Jinzhi Technology Co. Ltd.Dahua Hong Kong Dahua (HK)
Refers To Dahua Technology (HK) Limited
Limited
Zhoushan Operation Refers To Zhejiang Zhoushan Digital Development Operation Co. Ltd.Guangxi Dahua Technology Refers To Guangxi Dahua Technology Co. Ltd.Huayixin Refers To Zhejiang Huayixin Technology Co. Ltd.
92025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Huaruijie Refers To Zhejiang Huaruijie Technology Co. Ltd.Chengdu Zhilian Refers To Chengdu Dahua Zhilian Information Technology Co. Ltd.Chengdu Zhian Refers To Chengdu Dahua Zhian Information Technology Service Co. Ltd.Chengdu Dahua Zhishu Information Technology Service Co.Chengdu Zhishu Refers To
Ltd.Chengdu Zhichuang Refers To Chengdu Zhichuang Yunshu Technology Co. Ltd.Chengdu Smart Network Refers To Chengdu Huishan Smart Network Technology Co. Ltd.Huakong Software Refers To Zhejiang Huakong Software Co. Ltd.Henan Dahua Refers To Henan Dahua Zhilian Information Technology Co. Ltd.Huajian Refers To Zhejiang Huajian Technology Co. Ltd.Zhengzhou Dahua Zhian Refers To Zhengzhou Dahua Zhian Information Technology Co. Ltd.Dahua International Refers To Dahua Technology International Co. Ltd.Anhui Zhilian Refers To Anhui Dahua Zhilian Information Technology Co. Ltd.Anhui Zhishu Refers To Anhui Dahua Zhishu Information Technology Co. Ltd.Changsha Dahua Refers To Changsha Dahua Technology Co. Ltd.Tianjin Huajian Refers To Tianjin Huajian Technology Co. Ltd.Zhejiang Pixfra Refers To Zhejiang Pixfra Technology Co. Ltd.Yiwu Huaxi Refers To Yiwu Huaxi Technology Co. Ltd.Dahua Operation Refers To Zhejiang Dahua Intelligent IoT Operation Service Co. Ltd.Nanyang Intelligent Refers To Nanyang Dahua Intelligent Information Technology Co. Ltd.Yibin Huahui Refers To Yibin Huahui Information Technology Co. Ltd.Chengdu Huazhiwei Refers To Chengdu Huazhiwei Technology Co. Ltd.Luoyang Zhiyu Refers To Luoyang Dahua Zhiyu Information Technology Co. Ltd.Huaqi Intelligence Refers To Zhejiang Huaqi Intelligent Technology Co. Ltd.Chengdu Information Refers To Chengdu Dahua Wisdom Information Technology Co. Ltd.HJ Technology Refers To Zhejiang HJ Technology Co. Ltd.Huaxiyue Refers To Guangdong Huaxiyue Intelligent Technology Co. Ltd.Huajie Operation Refers To Zhejiang Huajie New Energy Operation Service Co. Ltd.Shuhang Intelligent Refers To Zhejiang Shuhang Intelligent Technology Co. Ltd.Qingdao Dahua Ruifa Intelligent Internet of Things Technology
Qingdao Ruifa Refers To
Co. Ltd.Shandong Digital Intelligence Refers To Shandong Dahua Digital Intelligence Technology Co. Ltd.Fujian Qingchuang Refers To Fujian Dahua Qingchuang Digital Technology Co. Ltd.Jilin Zhilian Refers To Jilin Dahua Zhilian Technology Co. Ltd.Zhengzhou Huaao Refers To Zhengzhou Airport Economy Zone Huaao Technology Co. Ltd.Hainan Huizhi Refers To Hainan Dahua Huizhi Technology Co. Ltd.Dahua Europe Refers To Dahua Europe B.V.Dahua Middle East Refers To Dahua Technology Middle East FZE
Dahua Mexico Refers To Dahua Technology Mexico S.A. DE C.V
Dahua Chile Refers To Dahua Technology Chile SpA
Dahua Malaysia Refers To Dahua Security Malaysia SDN. BHD.Dahua Korea Refers To Dahua Technology Korea Company Limited
Dahua Indonesia Refers To PT. Dahua Vision Technology Indonesia
102025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua Colombia Refers To Dahua Technology Colombia S.A.S
Dahua Australia Refers To Dahua Technology Australia PTY LTD
Dahua Singapore Refers To Dahua Technology Singapore Pte. Ltd.Dahua South Africa Refers To Dahua Technology South Africa Proprietary Limited
Dahua Peru Refers To Dahua Technology Perú S.A.C
Dahua Russia Refers To Dahua Technology Rus Limited Liability Company
DAHUA TECHNOLOGY BRASIL COMéRCIO E SERVI?OS EM
Dahua Brazil Refers To
SEGURAN?A ELETR?NICA LTDA
Dahua Canada Refers To Dahua Technology Canada INC.Dahua Panama Refers To Dahua Technology Panama S.A.Dahua Hungary Refers To Dahua Technology Hungary Kft
Dahua Poland Refers To Dahua Technology Poland Sp. z o.o.Dahua Italy Refers To Dahua Technology Italy S.R.L.Dahua Tunisia Refers To Dahua Technology Tunisia Limited Liability Company
Dahua Kenya Refers To Dahua Technology Kenya Limited
Dahua UK Refers To Dahua Technology UK Limited
Dahua Germany Refers To Dahua Technology GmbH
Dahua Serbia Refers To Dahua Technology SRB d.o.o.Dahua India Refers To Dahua Technology India Private Limited
Dahua Turkey Refers To Dahua Guvenlik Teknolojileri Sanayive Ticaret A.S.Dahua Czech Refers To Dahua Technology Czech s.r.o.Dahua Argentina Refers To Dahua Argentina S.A.Dahua Spain Refers To Dahua Iberia S.L.Dahua Kazakhstan Refers To Dahua Technology Kazakhstan LLP
Dahua Denmark Refers To Dahua Technology Denmark ApS
Dahua France Refers To Dahua Technology France SAS
Dahua Technology Holdings Refers To Dahua Technology Holdings Limited
Dahua New Zealand Refers To Dahua Technology New Zealand Limited
Dahua Netherlands Refers To Dahua Technology Netherlands B.V.Dahua Morocco Refers To Dahua Technology Morocco SARL
Dahua Romania Refers To Dahua Technology S.R.L
Dahua Uzbekistan Refers To Dahua Vision LLc
Dahua Bulgaria Refers To Dahua Technology Bulgaria EOOD
Dahua Sri Lanka Refers To Dahua Technology China (Pvt) LTD
Dahua Pakistan Refers To Dahua Technology Pakistan (private) Limited
Dahua Thailand Refers To Dahua Technology (Thailand) Co.LTD.Dahua Nigeria Refers To Dahua Technology Nigeria Representative Ltd
Dahua Israel Refers To Dahua Technology Israel Ltd.Dahua Mexico Service Refers To VISMEXTECH DHM SERVICIOS S.A. DEC.V.Dahua Japan Refers To Dahua Technology Japan LLC
Dahua Qatar Refers To Dahua Technology QFZ LLC
Dahua Pacific Refers To Dahua Technology Pacific S.A
Intelbras S.A. Refers To INTELBRAS S.A. INDúSTRIA DE TELECOMUNICA??O
112025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
ELETR?NICA BRASILEIRA
Dahua Technology Middle East for Maintenance Single Person
Dahua Saudi Arabia Refers To
Company
Dahua Bengal Refers To Dahua Technology Bangladesh Private Limited
HuaRay Singapore Refers To HUARAY TECHNOLOGY SINGAPORE PTE. LTD.Dahua Belgium Co. Refers To Dahua Technology Belgium BV
Dahua Saudi Arabia Co. Refers To Dahua Technology Regional Headquarters
Dahua Argentina Co. Refers To Dahua Technology Azerbaijan LLC
Dahua Vietnam Co. Ltd. Refers To Dahua Technology Vietnam Company Limited
HuaRay Korea Refers To HUARAY TECHNOLOGY KOREA COMPANY LIMITED
HuaRay Germany Refers To Huaray Technology GmbH
Dahua Angola Refers To DAHUA EUROPE B.V - SUCURSAL EM ANGOLA(SU) LDA
Hirige MaLaysia Refers To Hirige Technology MaLaysia Sdn.Bhd.Dahua Egypt Refers To Dahua Technology Egypt LLC
DAHUA TECHNOLOGYAUH FOR SECURITY &
DAHUAAbu Dhabi Refers To
SURVEILLANCE – SOLE PROPRIETORSHIP L.L.C.
122025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section II Company Profile and Key Financial Indicators
I. Company Overview
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 (If any)
Company Name in Foreign
ZHEJIANG DAHUA TECHNOLOGY CO.LTD.Language (If any)
Legal Representative Fu Liquan
II. Contact Person and Contact Information
Secretary of the Board Representative of Securities Affairs
Name Wu Jian Li Sirui
No. 1399 Binxing Road Binjiang No. 1399 Binxing 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. Other Information
1. Company Contact Information
Whether the Company's registered address the Company's office address and its postal code the Company's website
e-mail address etc. have changed during the reporting period
□ Applicable □Not applicable
The company's registered address office address postal code website and email have not changed during the
reporting period; for details please refer to the 2024 annual report.
2. Information Disclosure and Location
Whether the information disclosure and location have changed during the reporting period
□ Applicable □Not applicable
The stock exchange website and media names and URLs where the company's semi-annual report is disclosed have
not changed during the reporting period. For details please refer to the 2024 annual report.
3. Other Related Information
Whether there is any change in other related information
□Applicable □ Not applicable
132025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Guosen Securities Co. Ltd. (hereinafter referred to as "Guosen Securities" or the "Sponsor") acting as the sponsor for
the Company's private share placement and listing conducted ongoing supervision in accordance with regulations
with the supervision period spanning from April 14 2023 to December 31 2024. On March 31 2025 Guosen
Securities issued the "Summary Report on Ongoing Supervision and Sponsorship by Guosen Securities Co. Ltd.Regarding Zhejiang Dahua Technology Co. Ltd.'s Private Share Placement." This confirmed that the ongoing
supervision period for the private share placement and listing had concluded and the ongoing supervision duties will
no longer be performed.IV. Key Accounting Data and Financial Indexes
Whether the Company needs retroactive adjustment or restatement of accounting data in prior years or not
□ Yes □No
Increase/decrease ratio
Current reporting Same period of last
compared with the same
period year
period of last year
Operating revenue (RMB) 15181329651.13 14866622569.81 2.12%
Net profit attributable to
shareholders of the listed Company 2475566750.61 1809589445.46 36.80%
(RMB)
Net profit attributable to
shareholders of the listed company
1795933411.701762237469.531.91%
after deducting non-recurring gains
and losses (RMB)
Net cash flow generated by
639122979.11-507185620.71226.01%
operational activities (RMB)
Basic earnings per share
0.760.5635.71%
(RMB/Share)
Diluted earnings per share
0.760.5635.71%
(RMB/Share)
Weighted average ROE 6.72% 5.10% 1.62%
Increase/decrease at the
End of this reporting At the end of the end of the current reporting
period previous year period compared with the
end of the previous year
Total assets (RMB) 50021031055.64 52735912081.82 -5.15%
Net assets attributable to
shareholders of the listed company 37095215232.19 36028046171.08 2.96%
(RMB)
V. Differences in accounting data Under 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
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.
142025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.
3. Explanation of the Differences in Accounting Data under Domestic and Overseas
Accounting Standards
□ Applicable □Not applicable
VI. Non-recurring Gains and Losses Items and Their Amounts
□Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profits or losses from disposal of non-current assets (including the write-off
485365113.48
for 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 line with national policies entitled to according to the 194290442.32
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
416914.56
disposal of 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 management entrusted to others 189343772.69
Reversal of the receivables depreciation reserves for separate impairment
3036913.33
test
Profits and losses on debt restructuring -7664077.54
Non-Operating Revenue and expenses other than the above 1405059.67
Other gains and losses items that fit the definition of non-recurring gains
-7787446.32
and losses
Less: Impact of income tax 170642154.85
Impact of minority equity (after tax) 8131198.43
Total 679633338.91
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.
152025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section III Management Discussion and Analysis
I. Main Businesses of the Company during the Reporting Period
There is no major change in the Company's main businesses during the reporting period. Refer to the
2024 Annual Report for details.
II. Core Competitiveness Analysis
There is no major change in areas of core competitiveness during the reporting period. Refer to the
2024 Annual Report for details.
III. Main Business Analysis
In the first half of 2025 global geopolitical conflicts continued and trade protectionism
reemerged affecting the process of global economic recovery. Leveraging advantages such as its
vast market scale extensive application scenarios and comprehensive industrial depth China
fostered robust growth in its digital economy injecting critical momentum into high-quality economic
development. Concurrently breakthroughs in foundational technologies like large-scale AI models
unlocked new frontiers for advanced productive forces. The integration of science and technology
with real-world industries has accelerated continuously expanding the depth and breadth of the AIoT
sector.Amidst this era of digitalization and intelligence the Company remained resolutely determined
and steadfastly acted to propel high-quality development. In our Research and Development efforts
we aim to accelerate the deep integration of technological innovation with industrial implementation.Our strategy includes positioning ourselves in key areas such as multi-dimensional perception
artificial intelligence intelligent computing data communications and graph-digit fusion. We will
advance the large-scale deployment of large models across various industries. Additionally we will
continuously launch competitive new products including the chat data and Tian Series all-in-one
large model devices the WizSeek NVR and Glowlight 2.0. Our goal is to develop hardware and
software products that demonstrate exceptional competitiveness. In the Domestic Market: For the
urban business segment we focus on enhancing refined operations for existing clients particularly in
fiscally supported sectors such as macro-transportation water conservancy and emergency
162025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
management. Our goal is to capture systematic opportunities while strengthening client engagement
capabilities and improving the efficiency of converting sales opportunities. In the enterprise business
segment we center our efforts on the digital and intelligent transformation of enterprises. This
involves penetrating core production workflows accelerating the research and development of next-
generation digital intelligence products and enhancing scenario-based solutions to boost productivity
and operational efficiency. In the distribution business segment we are implementing the "Local
Operations & County Market Penetration" strategy. This includes expanding our coverage in county-
level markets strengthening the development and activation of service providers continuously
improving the sustainable operations and profitability of our agents and achieving genuine win-win
outcomes. In the Overseas Market: Build a healthy and sustainable business ecosystem scale key
accounts optimize the stability of the client portfolio and focus on dedicated initiatives in high-
potential countries. In terms of industry maintain a strong focus on specific sectors replicate
successful strategies across targeted industries revitalize the grand video strategy and deliver high-
value cost-competitive products and solutions. For new business products ensure optimal resource
allocation while steadily expanding the business volume of leading products. In the Innovation
Business Segment: Focus on core strategic areas further strengthen the integration and mutual
reinforcement between innovative ventures and the Group's core operations sustain technological
innovation and drive stronger growth across all business segments.During the reporting period despite the influence of various domestic and international factors
the company adhered to the business philosophy of refined management and high-quality
development achieving operating revenue of RMB 15.18 billion an increase of 2.12% year-over-year;
net profit attributable to shareholders of the listed company excluding non-recurring gains or losses
reached RMB 1.796 billion an increase of 1.91% compared to the same period last year.
1. Prudent and Solid Growth Strategic Transformation Commitment to 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
172025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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. Keeping Precision Investment in Research and Development and Deepening "Five Full"
Capabilities
Centering on technological innovation and customer needs the Company persists in large-scale
R&D investment to continuously strengthen its foundational "five full" capabilities: Full Sensing Full
Intelligence Full Connection Full Computing and Full Ecosystem. In addition to maintaining
investment in traditional video technology the company continuously strengthens research
development and productization in the fields of multi-dimensional perception AI large models data
intelligence intelligent computing cloud computing software platforms network communication
cyber security and innovative businesses focusing on value-driven business scenarios to build
industry-leading solutions products and technology systems.
3. Build Full-stack Capabilities for Large Models and Promote AI industrialization
The company regards artificial intelligence as one of its core strategies and is always committed
to core technology research and innovation focusing on vision-centered main channels continuously
enhancing artificial intelligence research and engineering capabilities. Focusing on scenario-based
applications across diverse industries the Company leverages technologies such as multimodal large
models and Agents. By integrating industry expertise it builds full-stack large model capabilities
further consolidates its AI engineering foundation and actively promotes the industrialization and
commercial success of new AI technologies.
4. 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. Proceeding from multi-dimensional perception multi-faceted connectivity view
intelligence and open platforms the Company achieves deep integration between its Dahua large
182025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
model and multi-dimensional data. This enables a closed loop from perceptual intelligence to data
intelligence and then to operational intelligence comprehensively empowering efficient urban
governance and enterprise digital and intelligent transformation.
5. Deepen engagement with the core businesses of urban and enterprise customers to
support digital and intelligent transformation
The Company deeply cultivates urban digital innovation and enterprise digital and intelligent
transformation. Continuously discerning industry evolution trends it deeply integrates advanced
technologies like AI big data and intelligent computing with industry scenarios. By continuously
enhancing hardware diversity and full-stack AI capabilities it deepens the application of multi-
dimensional perception products and industry algorithm models in scenario-based services.Progressively moving from peripheral system integration into core operational systems like
governance and production it strives to become a trusted partner for customers' digital and intelligent
transformation.
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 unprecedented opportunities in the digital economy the Company upholds an altruistic
philosophy. Through continuous exploration and practice with ecosystem partners it builds
comprehensive open capabilities spanning technology business and services. By fully opening
hardware software algorithms services and business ecosystems to industry clients and
developers it empowers partners' continuous innovation and development. We work with 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.
192025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
YoY rates in key financial indicators
Unit: RMB
Same period of last Year-on-year
Current reporting year Increase Or Reasons for changes
period
(Restated Note) Decrease
Operating revenue 15181329651.13 14866622569.81 2.12% No major changes
Operating cost 8864525518.69 8782722018.67 0.93% No major changes
Sales expenses 2163482109.43 2216940115.97 -2.41% No major changes
Administration
554682203.57 511481522.31 8.45% No major changes
expenses
Mainly due to exchange rate
fluctuations exchange
Financial expenses -408285432.92 -249811638.73 -63.44% earnings increased
compared with the same
period last year.Mainly due to higher tax
Income tax expense 270570745.94 -33838461.10 899.60% rebates received in the same
period of last year.R&D investment 1984405423.10 1901330160.90 4.37% No major changes
Mainly due to increase of
Net cash flow
sales proceeds compared
generated by 639122979.11 -507185620.71 226.01%
with the same period of last
operating activities
year.The main reason is that the
Net amount of cash large-denomination
flow generated by -1252180226.45 -3738735276.02 66.51% certificates of deposit
investment activities expenses were higher in the
same period last year.Net cash flow
generated by -2227681253.87 -2231053114.28 0.15% No major changes
financing activities
Mainly due to increased cash
inflows from operating
Net increase in cash activities and decreased
-2737708517.17-6386639986.4457.13%
and cash equivalents cash outflows from investing
activities during the current
period.Note: Pursuant to the "Accounting Standard for Business Enterprises No. 18" issued by the Ministry of Finance the
Company has retrospectively adjusted warranty costs not meeting the criteria of single performance obligations for the
year 2024 reclassifying them from selling expenses to operating costs. The same treatment applies below.There are major changes in the composition or sources of profit of the Company in the current period
□ Applicable □Not applicable
There is no major change in the composition or sources of profit of the Company in the current period
202025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Composition of operating revenue
Unit: RMB
Current reporting period Same period of last year
Year-on-year
Proportion in Proportion in Increase Or
Amount Operating Amount Operating Decrease
Revenue Revenue
Total revenue 15181329651.13 100.00% 14866622569.81 100.00% 2.12%
By industry
Smart IoT
15181329651.13100.00%14866622569.81100.00%2.12%
industry
By product
Smart IoT
products and 11740932998.53 77.34% 12028870893.80 80.92% -2.39%
solutions
Including: 758033553.36 5.10%
software 767210890.41 5.05% 1.21%
business
Innovative 2461115617.88 16.55%
3022964624.8719.91%22.83%
business (Note)
Others 417432027.73 2.75% 376636058.13 2.53% 10.83%
By region
Domestic 7553259609.99 49.75% 7381482622.15 49.65% 2.33%
Overseas 7628070041.14 50.25% 7485139947.66 50.35% 1.91%
Domestic sub-business segment
Unit: RMB
Current reporting period Same period of last year
Proportion in Proportion in Year-on-year
Amount Domestic Operating Amount Domestic Operating Increase Or
Revenue Revenue Decrease
To G 1850842299.81 24.50% 1768114465.94 23.95% 4.68%
To B 4219444435.31 55.87% 3900695525.76 52.85% 8.17%
Others 1482972874.87 19.63% 1712672630.45 23.20% -13.41%
Total 7553259609.99 100.00% 7381482622.15 100.00% 2.33%
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.Industry product or region accounting for more than 10% of the Company's operating revenue or profit
212025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
□Applicable □ Not applicable
Unit: RMB
Increase or Increase or
decrease of Increase and decrease of
operating decrease of gross profit
Gross revenue operating cost compared
Operating revenue Operating cost
Margin compared with over the same with the
the same period of last same period
period of last year (restated) of last year
year (restated)
By industry
Smart IoT
15181329651.138864525518.6941.61%2.12%0.93%0.69%
industry
By product
Smart IoT
products and 11740932998.53 6589674115.39 43.87% -2.39% -3.75% 0.79%
solutions
Including: 252290758.12 67.12%
software 767210890.41 1.21% -0.50% 0.57%
business
Innovated
3022964624.871919520426.7636.50%22.83%19.21%1.92%
businesses
By region
Domestic 7553259609.99 4866160607.15 35.58% 2.33% 2.72% -0.24%
Overseas 7628070041.14 3998364911.54 47.58% 1.91% -1.17% 1.63%
Domestic
sub-
business
segment
To G 1850842299.81 1089576316.95 41.13% 4.68% 9.07% -2.37%
To B 4219444435.31 2696793918.93 36.09% 8.17% 11.65% -1.99%
Others 1482972874.87 1079790371.27 27.19% -13.41% -18.37% 4.42%
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 reporting period.□ Applicable □Not applicable
IV. Non-Main Business Analysis
□ Applicable □Not applicable
222025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
V. Analysis of Assets and Liabilities
1. Significant Changes in Assets Composition
Unit: RMB
End of this reporting period End of the Previous Year
Proportion
Proporti Statement on
Proportion Increase
on To Significant
Amount To Total Amount and
Total Changes
Assets Decrease
Assets
Mainly due to
dividend
Cash and
8445984587.70 16.88% 11181803423.83 21.20% -4.32% distributions and
bank balances
year-end bonus
payments.Accounts
15790636239.17 31.57% 17046094518.79 32.32% -0.75% No major changes
receivable
Contract
83105021.95 0.17% 87397517.09 0.17% 0.00% No major changes
assets
Inventory 5549837470.93 11.10% 5203560771.25 9.87% 1.23% No major changes
Investment
145023330.44 0.29% 139280586.26 0.26% 0.03% No major changes
property
Long-term
Equity 749403415.83 1.50% 722241568.57 1.37% 0.13% No major changes
Investment
Mainly due to the
conversion of
Fixed Assets 5331558518.85 10.66% 4973953628.05 9.43% 1.23% construction in
progress to fixed
assets.Mainly due to the
conversion of
Projects under
850146152.40 1.70% 1254554187.36 2.38% -0.68% construction in
Construction
progress to fixed
assets.Right-of-use
226161696.36 0.45% 232124277.86 0.44% 0.01% No major changes
assets
Short-term
501579505.58 1.00% 995000000.00 1.89% -0.89% No major changes
loan
Contract
806391542.30 1.61% 1282204348.75 2.43% -0.82% No major changes
liabilities
Lease
128641582.44 0.26% 114313807.41 0.22% 0.04% No major changes
liabilities
Mainly due to the
purchase of large-
Other non-
5619083954.76 11.23% 4327776909.06 8.21% 3.02% denomination
current assets
certificates of
deposit
2. Major Overseas Assets
□ Applicable □Not applicable
232025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
3. Assets and Liabilities Measured at Fair Value
□Applicable □ Not applicable
Unit: RMB
Changes in Fair Cumulative Impairment
At the Beginning of Purchase Sales Amount
Value Gains and Fair Value Loss of the At the End of the
Item the Reporting Amount of The of the Reporting Other Variations
Losses in the Changes in Reporting Reporting Period
Period Reporting Period Period
Current Period Equity Period
Financial assets
1. Trading
financial assets
(derivative 229927529.28 -106293552.37 25039155.90 40650829.79 108022303.02
financial assets
excluded)
2. Other non-
current financial 1274697490.87 185399363.64 -1039608.18 1459057246.33
assets
3. Receivables
841815267.43-67795311.55774019955.88
financing
Financial assets
2346440287.5879105811.2725039155.9040650829.79-68834919.732341099505.23
subtotal
Total of above
2346440287.5879105811.2725039155.9040650829.79-68834919.732341099505.23
items
Financial liabilities 4268603.52 -471146.84 -13309.61 3784147.07
Are there any significant changes in the measurement attributes of the company's main assets during the reporting
period
□ Yes □No
4. Restrictions on Asset Rights as of the End Of the Reporting Period
As of June 30 2025 the company's restricted asset situation is as follows:
Item Book Value at the End of thePerion (RMB) Cause of Restrictions
Cash and bank balances 107943051.28 Guarantee letter security deposit and otherrestricted funds
Pledged notes used for issuing banker's
Notes receivable and receivables 898323101.98 acceptance endorsed or discounted butfinancing not yet matured or terminated and
recognized
Accounts receivable 1461555.02 Financial discount and factoring notderecognised in the supply chain
Fixed Assets 904506973.80 Fixed assets rented out under operatingleases
Total 1912234682.08
242025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
VI. Investment Analysis
1. Overview
□Applicable □ Not applicable
Investment in the Reporting Period Investment for the same Period of
Rate of Change
(RMB) Last Year
2965513.8593948173.50-96.84%
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"
4. Financial Assets Investment
(1) Securities Investment
□Applicable □ Not applicable
Unit: RMB
Changes
in Fair Purchase Sales Profits
Variety of Code of Abbreviati Initial Accounting
Opening Value Cumulative Amount of Amount of and Book
Securities Securities on of Investment Measurement
Balance Gains and Fair Value The the Losses in Value at Accounting Capital
Securities Cost Model on Book Losses in Changes in Reporting Reporting the the End of Accounts SourceValue the Equity Period Period Reporting the PeriodCurrent Period
Period
Domestic
and 688213 SMARTS 29548786. Fair value 1497265
- Trading
Overseas ENS 48 measurement 69.64 1075376
2503915 4065082 9721065 2657720 Equity
95.755.909.79.510.00
financial fund
Stocks assets
-
Total 29548786. -- 1497265 1075376 2503915 4065082 9721065 265772048 69.64 95.75 5.90 9.79 .51 0.00
----
(2) Derivatives Investment
□Applicable □ Not applicable
252025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
1) Derivatives Investments for Hedging Purposes During the Reporting Period
□Applicable □ Not applicable
Unit: ten thousand RMB
Proportion
Changes of
in Fair Cumul Investment
Value ative Amount Amount Amount in
Types of Initial Gains Fair Purchased Sold the
Opening Closing
Derivatives Investment and Value During the During the Company's
Balance Balance
Investment Amount Losses in Chang Reporting Reporting Net Assets
the es in Period Period at End of
Current Equity the
Period Reporting
Period
Foreign
14600.0
exchange 47.11 322940.03 324742.53 12797.50 0.34%
0
contract
14600.0
Total 47.11 322940.03 324742.53 12797.50 0.34%
0
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 Standards for Business Enterprises No. 37 - Presentation of
Explanation of whether the
Financial Instruments and other relevant provisions. Held-for-trading financial
Company's hedging business
assets/held-for-trading financial liabilities were adopted for initial and
accounting policies and specific
subsequent measurements of the foreign exchange contracts. The fair values
accounting principles have changed
of the foreign exchange contracts were basically determined by referencing the
significantly during the reporting
different parameters of the financial institutions based on the then market
period compared with the previous
conditions as well as the remaining term and duration of transaction so as to
reporting period
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 loss
During the reporting period the actual loss amount was RMB 7270400.during the reporting period
The Company carried out foreign exchange hedging business appropriately as
Descriptions of the effect of hedging the case may be which could effectively reduce the risks in foreign exchange
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 detailed information on risk analysis and control measures please refer to
positions during the reporting period
the company's Announcement on Conducting Foreign Exchange Hedging
(including but not limited to market
Transactions disclosed on March 29 2025 (Announcement No.: 2025-017).risk liquidity risk credit risk
operational risk legal risk etc.)
The Company recognized and measured its foreign exchange hedging
Changes in market prices or product
business in accordance with Accounting Standards for Business Enterprises
fair value of invested derivatives
No. 22 - Recognition and Measurement of Financial Instruments Accounting
during the reporting period and the
Standards for Business Enterprises No. 37 - Presentation of Financial
analysis of the fair value of derivatives
Instruments and other relevant provisions. The fair values of foreign exchange
should disclose the specific methods
forward contracts were basically measured and recognized by referencing the
used and the setting of related
different parameters of the financial institutions based on the then market
assumptions and parameters.conditions as well as the remaining term and duration of the transaction.
262025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
During the reporting period the fair value change gain of foreign exchange
contracts was RMB 471100.Litigation involved (if applicable) None
Disclosure date of board of directors'
announcement on the approval of March 29 2025
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
(1) Utilization of Raised Funds
□Applicable □ Not applicable
Unit: ten thousand RMB
Percentage
The Proportion
Aggregate of the
Accumulated of Raised Amount of Amount of AggregateAmount of Funds Funds Amount of Purpose Amount of
Year of Total Aggregate Funds Amount of Funds
Fund- Way of Fund- Listing Amount of Net Funds
Funds Amount of Used at the Raised in Raised as Funds Funds and use of Raised Put
raising raising Date Funds Raised (1)
Raised
Used in the Funds End of the
the Current of the Raised as Raised Not the Funds Aside for
Raised Current Raised Used Reporting
Period That Current of the Raised Not
(2) Period (3) Were Period That Current
Yet Used Yet Used More Than
Period = (2) / (1) Repurposed Were Period That
Two Years
Repurposed Were
Repurposed
Issuance of
2023 shares to April 142023 509999.92 508983.26 38880.73 471157.33 92.57% 30191.75 5.93% 44610.38
Deposited
specific objects in banks
Total -- -- 509999.92 508983.26 38880.73 471157.33 92.57% 30191.75 5.93% 44610.38 --
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 has cumulatively used RMB 4711573300 of raised funds with net interest income from the special fundraising account amounting to RMB 85586900. As of June
30 2025 the balance of unused raised funds was RMB 446103800.
272025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Projects with Pledged Investments Using Raised Funds
□Applicable □ Not applicable
Unit: ten thousand RMB
Projects with Whether
pledged the Amount Cumulative Investment The Date the Cumulative Whether
Financing investments and Projects Total Pledged
Whether
Listing investment Project Have Been Investments Total Adjusted Invested in the Investments as
Progress as Benefits Income As Of There Are
Project Investments Current of the End of of the End of
Project Expected
Date directions of Nature Changed Using Raised Reporting Reaches Its
Realized During The End Of Benefits Major
Name (1) Reporting Reporting Intended Usable the Reporting The Changes inexcess funds (Including Funds Have BeenPeriod Period (2) Period Status Period Reporting Achieved Projectdue to Partial (3)=(2)/(1) Period Feasibility
oversubscription Changes)
Projects with pledged investments
Project of Smart
IoT Solution Operation
R&D and management No 92990.00 92990.00 0.00 92990.00 100.00% 2023 4957.69 9660.97
Not
project applicable
No
Industrialization
The phase II
construction
project of the Production
smart andconstruction No 77580.00 77580.00 0.00 77859.38
100.36%
(Note 1) 2024 4368.60 10649.71
Not
manufacturing applicable
No
base in project
Hangzhou
Issuance Artificial
of shares April intelligenceto 14 technology
Research
specific 2023 research and
and
development Yes 88960.00 119151.75 19928.06 95878.67 80.47% 2026 Not applicable
Not Not No
objects in development applicable applicable
2023 and application project
research project
5G IoT and
multi-
dimensional Research
perception anddevelopment Yes 100470.00 70278.25 18952.67 54317.29 77.29% 2026 Not applicable
Not Not
products and applicable applicable
No
solutions R&D project
project
Replenishment Flow
of working Supplement No 148983.26 148983.26 0.00 150111.99 100.76%(Note 1) Not applicable Not applicable
Not Not
capital Project applicable applicable
No
Subtotals for projects with pledged investments -- 508983.26 508983.26 38880.73 471157.33 -- -- 9326.29 20310.68 -- --
Investment directions of excess funds due to oversubscription
Not applicable
Total -- 508983.26 508983.26 38880.73 471157.33 -- -- 9326.29 20310.68 -- --
Explain the circumstances and reasons for failing to achieve the planned progress and
expected benefits for each project (including the reasons for selecting "Not applicable" for Due to the uneven benefits of smart IoT solution R&D and industrialization projects as well as the phase II construction project of the smart manufacturing base in
"Whether expected benefits have been achieved") Hangzhou around the year whether the expected benefits can be achieved will be measured after an entire year.Notes on major changes in project feasibility Not applicable
The amount purpose and progress of the use of the excess funds due to oversubscription Not applicable
Involved unauthorized changes to the use of raised funds and improper occupation of raised
funds. Not applicable
Changes of the implementation location of the projects using raised funds Applicable
282025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Occurred in prior years
See (3) Change of Projects That Use Raised Funds.Applicable
Changes of the implementation method of the projects using raised funds Occurred in prior years
See (3) Change of Projects That Use Raised Funds.Advance investments and replacements of raised funds in projects Not applicable
Temporary replenishment of working capital with idle raised funds Not applicable
The amount and reasons for the balance of funds raised in the implementation of the project Not applicable
The intended use and disposal of the unused funds raised The unused funds raised (including interest income from the account of the funds raised) are deposited in the Company's special account for the funds raised.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 etc. to Pay Funds for Investment Projects and Replace them with Equal Amounts of Fundraised Funds"
Problems or other circumstances in the use and disclosure of the funds raised agreeing that during the implementation of the investment projects with raised funds the Company would use acceptance bills (including endorsement transfers) ownforeign 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 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.
292025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Change of Projects That Use Raised Funds
□Applicable □ Not applicable
Unit: ten thousand RMB
Total amount Actual Actual total Investment The Date the Benefits Whether Are there any
Financing Way of Corresponding of funds amount amount progress as ProjectChanged original raised to be invested in invested as of of the end of Reaches Its Realized Expected
major
Project Fund- changes in
Name raising projects commitment invested in the current the end of reporting Intended
During the Benefits
projects the changed reporting reporting period Usable Reporting Have Been
feasibility of
the changed
projects (1) period period (2) (3)=(2)/(1) Status Period Achieved projects
Artificial
intelligence
technology Construction
research and Project of Not Not
development and Xi'an R&D
119151.75 19928.06 95878.67 80.47% 2026 applicable applicable No
Issuance of
shares to Issuance of application
Center
specific shares to research project
objects in specific 5G IoT and
2023 objects multi- New project ofdimensional Southwest
perception R&D Center of 70278.25 18952.67 54317.29 77.29% 2026 Not Not No
products and Dahua Co. applicable applicable
solutions R&D Ltd.project
Total -- -- -- 189430.00 38880.73 150195.96 -- -- -- --
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 opportunities in the fields of 5G and multi-
Explanation of reasons for changes dimensional perception by using the existing technology precipitation successively released more than ten integrated 5G products and
decision-making procedures and more than 30 5G smart application solutions and released the 6D omni-domain perception technology in full-time domain full-space
information disclosure (by project) 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 implementation locations and project
name.Situations and reasons for failure to achieve
planned progress or expected benefits (by Not applicable
project)
Notes on major changes in project
feasibility after change Not applicable
VII. Major Assets and Equity Sales
1. Major Assets Sales
□ Applicable □Not applicable
No major assets were sold during the reporting period of the Company.
302025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. Major Equity Sales
□Applicable □ Not applicable
Net profit
contributed Whether it
by this Proportion proceeded
equity to of net profit as
the listed contributed Whether scheduled.Transaction company Impact of by the Pricing Whether it Relationship the equity
If not the
reasons
Counterparty Equity sold Sale price (in from the the sale on equity sale principles involved Date ofdate RMB beginning the to the for the is a related with thetransaction counterparty has been
and
measures Disclosure
Disclosure Index
10000) of the Company listed equity sale fully
period to company's transferred taken by
the date of total net the
sale (in profit Company
RMB should be
10000) explained
This
transaction
is not
32.7321% expected Determined
Shanghai equity of to have a through
Zhicheng Hangzhou June material negotiation Not Proceeded March 04 Juchao Information
Technology Huacheng 20 71683.29 4838.85 adverse 15.38% based on No Yes as Network
Co. Ltd. Network 2025 impact on the asset
applicable scheduled. 2025 http://cninfo.com.cn
Technology the appraisal
Co. Ltd. Company's value.financial or
operational
condition.VIII. Analysis of Major Subsidiaries and Associates
□Applicable □ Not applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.Unit: ten thousand RMB
Company Company
Name Type Main businesses Registered Capital Total Assets Net Assets Operating revenue Operating Profit Net Profit
Technology development
services consultation and
transfer; manufacturing sales
and system services of
Zhejiang computer hardware and
Dahua software; manufacturing and
Vision Subsidiary sales of security devicesCompany mechanical and electrical 130681.00 2276570.00 263427.69 1064397.45 8477.42 7132.45Technology
Co. Ltd. devices and photovoltaicdevices; sales and technical
services of IoT devices;
charging pile sales;
warehousing services bonded
warehouse operation.Technology development
services consultation and
transfer; manufacturing and
marketing of computer hardware
Zhejiang and software; development
Dahua Subsidiary manufacturing and marketing of
Zhilian Co. Company electronic products and 188580.00 630361.98 167709.61 257552.36 5958.42 4491.54
Ltd. electronic components safetyequipment 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
Impact on overall production
Company Name of subsidiaries during the reporting
management and performance
period
Hangzhou Huacheng Network No significant impact on overall
Technology Co. Ltd. and its controlled Equity transfer production operation and
subsidiaries performance
No significant impact on overall
IMOU NETWORK TECHNOLOGY
Cancellation production operation and
AUSTRALIA PTY LTD
performance
312025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
IX. Structured Entity Controlled by the Company
□ Applicable □Not applicable
X. Risks and Countermeasures
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 counter-measures 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 development trends of industrial technologies to pay full attention to customers'
diversified needs and to devote sufficient R&D investments it may still face the risk of losing market
competitiveness due to discontinuous 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 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 transformation: With the development of technologies such as
artificial intelligence big data cloud computing network communication and IoT as well as the
upgrading of intelligent terminal application methods the business models in the era of artificial
intelligence may impact the development of traditional industries. If enterprises fail to timely grasp the
opportunities brought by the transformation of business models they may face the risk of their
original market patterns being disrupted. The company continuously monitors and studies significant
changes in the global economy industry and technology sectors analyzes industry development
logic assesses the evolution of the AIoT industry the integration of video technology with digital
technologies including artificial intelligence and the potential diversified needs of customers. It
consolidates its existing advantageous markets actively explores and pilots new businesses and new
commercial models and carries out business and technology deployments.
(3) Risks of International Operations: The Company's products and solutions cover more than
100 countries and regions overseas and international business operations face uncertainties and
new challenges. On the one hand the global economic growth rate continues to slow down
322025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
increasingly complex compliance requirements in the international business environment intensified
regional trade protectionism and controls and tariff policy volatility have heightened pressures on
overseas market expansion. Additionally local manufacturing rules imposed by certain countries and
regions have escalated supply chain challenges leading to continuously rising demands for
compliance capacity building and corresponding cost investments. To this end the Company actively
prevents and responds to risks in international operations continuously improves the overall
overseas compliance and risk control system enhances proactive risk anticipation and systematic
response capabilities for various risks and continuously strengthens the Company's reserves and
development of local production and manufacturing capabilities. At the same time the company
continuously strengthens its understanding of and adaptability to the laws regulations and political
and economic environments of the regions involved in its business. It formulates differentiated
national business operation strategies based on the changes in political economic financial and
compliance environments in different regions applying a one country one policy approach to respond
quickly to challenges and reduce business operation pressure.
(4) Exchange Rate Risk: The Company's export sales settlement currency is mainly in USD and
EUR and with overseas business continuously growing fluctuations in exchange rates may have a
certain impact on the Company's profitability. The Company has progressively increased the
proportion of transactions in local currencies of non-US dollar countries with USD-denominated
contracts showing a declining trend.
(5) Risks associated with uncertain local fiscal payment capacity: Amid the current moderate
economic recovery elevated debt levels in some regional governments have yet to yield significant
improvements in payment capabilities. This has resulted in delayed project tenders extended
timelines and heightened selectivity in clients and projects. To mitigate these risks the Company
continuously refines credit management policies and optimizes project vetting. Comprehensive risk
assessments—covering client creditworthiness project budgets and delivery viability—are conducted
to navigate market fluctuations. The Company actively monitors national debt restructuring policies
intensifies accounts receivable collection and safeguards cash flow to reduce operational exposure.
332025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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 overall supply market is stable. The Company builds a
sustainable supply ecosystem through multiple measures including early supplier design involvement
universal selection of new materials development of secondary suppliers for exclusive materials and
flexible inventory strategies ensuring supply delivery. At the same time the Company focuses on
supplier operational risks by using a procurement supply security management platform to monitor
suppliers' operational status in real time preventing potential risks.XI. Development and implementation of market value management system and
valuation enhancement plan
Whether the Company has established a market value management system.□Yes □No
Whether the Company has disclosed its valuation enhancement plan.□ Yes □No
342025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 will focus on its main business improve operational efficiency
and profitability and based on its own circumstances comprehensively utilize mergers and
acquisitions equity incentives employee stock ownership plans cash dividends investor relations
management enhancement of information disclosure quality share repurchases and other lawful
and compliant methods to increase the company's investment value.XII. Implementation status 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 □No
To safeguard the interests of all shareholders the Company has formulated the "Increase in Both
Quality and Returns" Action Plan based on its confidence in the future development prospects and
recognition of its stock value. For details see the Announcement on "Increase in Both Quality and
Returns" 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 standardizes the rights and obligations of the company and shareholders and
prevents the abuse of shareholder rights and the management's dominant position from harming the
interests of minority investors. Strengthen the management of investor relations broaden the
channels for institutional investors to participate in corporate governance guide small and medium-
sized investors to actively participate in general meeting of shareholders and create convenience for
352025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
all kinds of investors to participate in major decision-making to enhance their right to speak and sense
of gain.While solidifying its own development foundation the company firmly establishes a shareholder
return awareness and has consistently implemented cash dividends every year since its listing with a
cumulative cash dividend amount of RMB 9.098 billion. During the reporting period the company
formulated and implemented the 2024 annual profit distribution plan distributing a cash dividend of
RMB 4.58 (including tax) per 10 shares to all shareholders with a total cash dividend of
approximately RMB 1.502 billion. At the same time upon approval by the Board of Directors and the
general meeting of shareholders the company will use equity funds to repurchase part of its shares
through centralized competitive bidding transactions for the purpose of legally canceling and
reducing the registered capital. The total amount of repurchase funds will be no less than RMB 300
million (inclusive) and no more than RMB 500 million (inclusive).
362025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section IV Company Governance Environment and Society
I. Changes of Directors Supervisors and Senior Management of the Company
□ Applicable □Not applicable
There were no changes in the company's directors supervisors and senior management during the reporting period.For details please refer to the 2024 annual report.II. Profit Distribution and Capital Reserve Converted to Share Capital in the
Reporting Period
□ Applicable □Not applicable
The Company plans to pay no cash dividends no bonus shares and no capital increase by way of capitalization of
provident fund for the half-year
III. 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 March 28 2025 the company held the 11th meeting of the 8th Board of Directors and the 8th meeting of the 8th
Board of Supervisors. On April 21 2025 the 2024 annual general meeting was held during which the "Proposal on
Cancellation of Some Restricted Shares of 2022 Stock Options and Restricted Stock Incentive Plan" was reviewed
and approved. In view of the Company's performance not meeting the conditions for releasing from restricted sale and
the departure of incentive recipients the Company resolved to repurchase and cancel a total of 20544960 restricted
shares already granted but not yet released. The repurchase price is RMB 8.16 per share. During the reporting period
the company completed the repurchase and cancellation of the aforementioned restricted shares.
2. On March 28 2025 the company held the 11th meeting of the 8th Board of Directors and the 8th meeting of the 8th
Board of Supervisors during which the "Proposal on Adjustment of the Exercise Price of the 2022 Stock Option and
Restricted Stock Incentive Plan" was reviewed and approved. Due to the implementation of the 2024 annual profit
distribution plan in accordance with the provisions of the Stock Option and Restricted Share Incentive Plan (Draft
Revised) for 2022 and the authorization granted by the 2021 annual general meeting the exercise price of the stock
options was adjusted from RMB 15.473 per share to RMB 15.015 per share.
3. 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 June 30 2025 a total of 11052904 stock options have been exercised in
the second exercise period of which 4309703 stock options were exercised in the second quarter of 2025.
372025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.IV. Environmental Information Disclosure
Whether the listed company and its principal subsidiaries are included in the list of enterprises required to disclose
environmental information according to law.□ Yes □No
V. Social Responsibilities
Report published on the Juchao Information Network (For details see the Company's 2024 Environmental Social and
Governancewww.cninfo.com.cn).
382025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section V Significant Events
I. Commitments that have been fulfilled by the Company's actual controller(s)
shareholders related parties acquirers the Company and the relevant parties
during the reporting period and those that have not been fulfilled by the end of the
reporting period
□ Applicable □Not applicable
There are no commitments that have been fulfilled by the Company's actual controller(s) shareholders related parties
acquirers the Company and the relevant parties during the reporting period or those that have not been fulfilled by the
end of the reporting period.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. Appointment and Dismissal of Accounting Firms
Whether the semi-annual financial report has been audited
□ Yes □No
The semi-annual financial report has not been audited.V. Explanations made by the board of directors and the board of supervisors on
the "non-standard audit report" from the accounting firm during the reporting
period
□ Applicable □Not applicable
VI. Statement by the Board of Directors on the "Non-standard Audit Report" of the
Previous Year
□ Applicable □Not applicable
VII. Bankruptcy and Restructuring
□ Applicable □Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.
392025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
VIII. Lawsuits
Major lawsuits and arbitrations
□ Applicable □Not applicable
There is no major lawsuit or arbitration during this reporting period.Other lawsuits
□ Applicable □Not applicable
IX. Penalties and Rectification
□ Applicable □Not applicable
No such cases as punishment or rectification during the reporting period.X. Integrity of the Company Its Controlling Shareholders and Actual Controllers
□ Applicable □Not applicable
XI. 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.
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.
402025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
1. On March 28 2025 the company held the 11th meeting of the 8th Board of Directors and approved the "Proposal
on the Estimated Amount of Routine Related-Party Transactions for 2025." According to business development and
daily operational needs the company and its subsidiaries estimate that the total amount of routine related-party
transactions with various related parties in 2025 will be RMB 1927.52 million (excluding tax).
2. On April 18 2025 the Company convened the 13th Meeting of the Eighth Board of Directors which reviewed and
approved the "Proposal on the Waiver of the Priority Right to Acquire Partial Equity Pan of the Controlling Subsidiary
and Related Transactions." Other shareholders of the Company's controlling subsidiaries—Zhejiang Huayixin
Technology Co. Ltd. Zhejiang Huaruijie Technology Co. Ltd. and Zhejiang Huajian Technology Co. Ltd.—intend to
transfer their equity interests in said companies within the same controlling entity. Specifically Ningbo Huaying
Venture Capital Partnership (Limited Partnership) will transfer its equity stakes in the three controlling subsidiaries to
Ms. Chen Ailing the Executive Partner. The Company has waived its priority to accept transfer regarding this equity
transfer arrangement. Following the aforementioned equity transfer the Company's proportional ownership interest in
these controlling subsidiaries will not decrease and there will be no change to the scope of consolidated statements.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 Juchao Information Network
March 29 2025
related-party transactions for 2025 http://www.cninfo.com.cn
Announcement on the Waiver of the
Priority Right to Acquire Partial Equity Juchao Information Network
April 19 2025
Pan of the Controlling Subsidiary and http://www.cninfo.com.cn
Related Transactions
XII. Significant Contracts and 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.
412025 Semi-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)
Announcement
date of
Guaranteed party disclosure of Guarantee Actual occurrence
Actual
guarantee Type of
Guarantee for
amount date guarantee Term of guarantee Due or not related partiesthe guarantee amount or not
cap
Total amount of external
Total amount of guarantees approved during the guarantees actually
reporting period (A1) occurred during the
reporting period (A2)
Total amount of external guarantees approved Total balance of external
by the end of the reporting period (A3) guarantees at the end of thereporting period (A4)
Company's guarantees to subsidiaries
Announcement
date of Actual Guarantee for
Guaranteed party disclosure of Guarantee Actual occurrenceamount date guarantee
Type of Term of guarantee Due or not related parties
the guarantee amount guarantee or not
cap
Two years after the
2017.10.13 22000.00 Joint liability maturity of the debtsguarantee in the master No No
contract
28634.40 Two years after the
2018.09.21 (USD 40 Joint liability maturity of the debtsguarantee in the master No Nomillion) contract
Five years upon
2020.09.01 30000.00 Joint liability expiration of debtguarantee period of master No No
contract
Three years after
Zhejiang Dahua Vision March 29 839200.00 2022.07.22 20000.00 Joint liability the maturity of theTechnology Co. Ltd. 2025 guarantee debts in the master No No
contract
From the date of
expiration of the
performance period
of each debt in the
master contract until
2023.07.24 40000.00 Joint liability three years after theguarantee date of expiration of No No
the performance
period of the last
due master debt
under all master
contracts
422025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
From the date of
signing the master
contract for a single
credit transaction
2023.09.26 90000.00 Joint liability until three yearsguarantee after the debtor's No No
debt performance
period under the
master contract
expires
Three years from
the expiration date
of the debtor's
2023.09.26 33000.00 Joint liabilityguarantee performance period No Noas agreed in the
master claim
contract
Three years from
the next day after
2024.03.01 100000.00 Joint liability
the expiry date of
guarantee each type of No Nofinancing business
under the master
contract
Two years from the
expiration date of
2024.04.01 53000.00 Joint liability the debtor'sguarantee performance period No No
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 Agreement or
2024.06.07 40000.00 Joint liability of the accountsguarantee receivable claims Yes No
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
of the debtor's
2024.07.25 49500.00 Joint liabilityguarantee performance period No Noas agreed in each
specific financing
contract
The guarantee
period is three years
from the effective
date of the
Maximum Amount
2024.08.16 50000.00 Joint liability Guarantee Contractguarantee until the expiration No No
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 years after the
2024.09.19 68000.00 Joint liability expiration of theguarantee debt performance No No
period stipulated in
the specific
business credit
contract (including
early maturity of the
debt).Three years from
the expiration date
2024.12.13 20000.00 Joint liabilityguarantee of the debtor's No Noperformance period
as agreed in the
432025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 Agreement or
2025.06.10 40000.00 Joint liability of the accountsguarantee receivable claims No No
granted by the
Hangzhou Branch of
China Merchants
Bank or the
advance date of
each advance within
the credit extension
period
2024.09.28 20000.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
Two years from the
expiration date of
2024.03.29 30000.00 Joint liability the debtor'sguarantee performance period No No
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 Agreement or
2024.06.07 16000.00 Joint liability of the accountsguarantee receivable claims Yes No
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
Zhejiang Dahua Zhilian Co. March 29 principal debt under
Ltd. 2025 260000.00 the master contract2024.07.25 60000.00 Joint liabilityguarantee and ends three No Noyears after the
expiration date of
the performance
period of the last
due principal debt
under all master
contracts.Three years from
the expiration date
of the debtor's
2024.07.25 16500.00 Joint liabilityguarantee performance period No Noas agreed in each
specific financing
contract
The guarantee
period is from the
effective date of the
specific business
credit contract to
three years after the
2024.09.19 15000.00 Joint liability expiration of theguarantee debt performance No No
period stipulated in
the specific
business credit
contract (including
early maturity of the
debt).
2024.09.26 10000.00 Joint liability
Three years from
guarantee the expiration date No Noof the debtor's
442025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
performance 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
Joint liability financing under the2025.06.10 16000.00 guarantee Credit Agreement or No Noof the creditor's
rights granted by the
Hangzhou Branch of
China Merchants
Bank or the
advance date of
each advance.One year
commencing upon
2025.01.02 1000.00 Joint liabilityguarantee the expiration of No NoDahua Zhilian's debt
performance period.
2025.05.09 20000.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
2024.09.28 500.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
From the effective
date of the
Commitment Letter
to three years after
the maturity date of
each loan or other
financing under the
Credit Agreement or
2024.06.10 4000.00 Joint liability of the accountsguarantee receivable claims Yes No
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 Amount
2024.08.16 5000.00 Joint liability Guarantee Contractguarantee until the expiration No No
Zhejiang Dahua System March 29 38000.00 date of theEngineering Co. Ltd. 2025 performance period
of each debt under
the Credit Business
Agreement.The guarantee
period is two years
Joint liability from the expiration2024.09.03 1000.00 guarantee date of the debtor's No Nodebt performance
period stipulated in
the master contract.From the effective
date of the
commitment letter to
three years after the
maturity date of
each loan or other
2025.06.10 4000.00 Joint liability
financing under the
guarantee Credit Agreement or No Noof the creditor's
rights granted by the
Hangzhou Branch of
China Merchants
Bank or the
advance date of
each advance.
2025.05.09 500.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
March 29 2024.04.22
2147.58 Joint liability 2024.4.22-
Dahua Technology (HK) Limited 69907.77 (USD 3 million) guarantee 2025.4.22
Yes No
2025 2025.04.22 2147.58 Joint liability 2025.4.22-(USD 3 million) guarantee 2026.4.21 No No
452025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
14317.2
2025.01.15 (USD 20 Joint liability 2025.01.15- No No
million) guarantee 2026.01.14
2024.10.18 715.86 (USD Joint liability 2024.10.18-1 million) guarantee 2025.10.17 No No
Three years
DAHUA TECHNOLOGY March 29
MEXICO S.A. DE C.V 2025 3000.00
commencing from
2025.01.15 1431.72 Joint liability the day following the(USD 2 million) guarantee expiration of the No No
loan term under the
main agreement.
2020.08.12 1140.28 (1.16 Joint liability
August 12 2020 -
million pounds) guarantee Signature of notice No Noof termination
Dahua Technology UK Limited March 292025 3300.00 2024.03.04 715.86 (USD Joint liability1 million) guarantee 2024.3.4-2025.3.3 Yes No
2025.03.04 715.86 (USD Joint liability1 million) guarantee 2025.3.4-2026.3.3 No No
Three years after
2022.04.29 1000.00 Joint liability the maturity of theguarantee debts in the master Yes No
contract
2024.09.28 200.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
From the effective
date of the
commitment letter to
three years after the
maturity date of
each loan or other
financing under the
2024.09.26 1000.00 Joint liabilityguarantee Credit Agreement or No Noof the creditor's
Zhejiang Huayixin Technology March 29 rights granted by the
Co. Ltd. 2025 4500.00 Hangzhou Branch ofChina Merchants
Bank or the
advance date of
each advance.The guarantee
period shall be three
years starting from
the day after the
2025.05.09 1000.00 Joint liability expiration of theguarantee debtor's No No
performance period
as stipulated in each
specific financing
contract.
2025.05.09 200.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
2024.09.28 10000.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
From the effective
date of the
commitment letter to
three years after the
maturity date of
each loan or other
2024.09.03 3000.00 Joint liability
financing under the
guarantee Credit Agreement or No Noof the creditor's
rights granted by the
Hangzhou Branch of
China Merchants
Bank or the
Zhejiang Fengshi Technology March 29 advances date of
Co. Ltd. 2025 16000.00 each advance;The guarantee
period is from the
effective date of the
specific business
credit contract to
three years after the
2024.09.19 1500.00 Joint liability expiration of theguarantee debt performance No No
period stipulated in
the specific
business credit
contract (including
early maturity of the
debt).
2025.05.09 10000.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
462025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2024.09.28 800.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
The guarantee
period is from the
effective date of the
specific business
credit contract to
three years after the
Jiangsu Huaruipin Technology March 29 2800.00 2024.09.19 1500.00 Joint liability expiration of theCo. Ltd. 2025 guarantee debt performance No No
period stipulated in
the specific
business credit
contract (including
early maturity of the
debt).
2025.05.09 800.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
2024.09.28 200.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
The debtor's debt
performance period
Zhejiang Huaxiao Technology March 29 stipulated in the
Co. Ltd. 2025 2200.00 2025.06.27 2000.00
Joint liability
guarantee master contract No Noshall expire two
years from the due
date.
2025.05.09 200.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
The guarantee
period is from the
effective date of the
specific business
credit contract to
three years after the
2024.09.19 2000.00 Joint liability expiration of theguarantee debt performance No No
period stipulated in
the specific
business credit
contract (including
early maturity of the
debt).
2024.09.28 10000.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
Xi'an Dahua Zhilian Technology March 29 From the effective
Co. Ltd. 2025 20000.00 date of thecommitment letter to
three years after the
maturity date of
each loan or other
financing under the
Joint liability Credit Agreement or2024.12.06 3000.00 guarantee of the creditor's No Norights granted by the
Xi'an Branch of
China Merchants
Bank or the
advance date of
each advance within
the credit extension
period;
2025.05.09 10000.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
2024.09.28 3000.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
2024.07.16 5000.00 Joint liability 2024.07.16-
Zhengzhou Dahua Zhian guarantee 2025.06.09
Yes No
Information Technology Co. March 29 10000.00 2025.05.09 3000.00 Joint liability2025 guarantee 2025.5.9-2025.8.24 No NoLtd.
2025.02.20 5000.00 Joint liability 2025.02.20-guarantee 2025.06.09 Yes No
2025.06.10 5000.00 Joint liability 2025.06.10-guarantee 2026.06.09 No No
2024.07.16 8000.00 Joint liability 2024.07.16- Yes No
Chengdu Dahua Zhian guarantee 2025.06.09
Information Technology Service March 292025 15000.00 2025.02.20 10000.00
Joint liability 2025.02.20-
guarantee 2025.06.09 Yes NoCo. Ltd.
2025.06.09 10000.00 Joint liability 2025.06.10-guarantee 2026.06.09 No No
Changsha Dahua Technology March 29
Co. Ltd. 2025 8000.00 2024.09.28 5000.00
Joint liability 2024.09.28-
guarantee 2025.05.08 Yes No
472025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The guarantee
period is from the
effective date of the
specific business
credit contract to
three years after the
2024.09.19 2000.00 Joint liability expiration of theguarantee debt performance No No
period stipulated in
the specific
business credit
contract (including
early maturity of the
debt).
2025.05.09 5000.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
2024.09.28 500.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
The warranty period
shall commence
from the effective
date of this contract
and continue until
Zhejiang Pixfra Technology Co. March 29
Ltd. 2025 3000.00 2025.02.21 2000.00
Joint liability three years after the
guarantee expiration date of No No
the debt
performance period
under the specific
credit granted in the
master contract.
2025.05.09 500.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
2024.09.28 200.00 Joint liability 2024.09.28-guarantee 2025.05.08 Yes No
2025.05.09 1000.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
Zhejiang Huafei Intelligent March 29 The debtor's debt
Technology CO. LTD. 2025 2500.00 performance period
2025.06.27 1500.00 Joint liability
stipulated in the
guarantee master contract No Noshall expire two
years from the due
date.
2024.09.28 200.00 Joint liability 2024.09.28-Zhejiang Huajian Technology March 29 1000.00 guarantee 2025.05.08
Yes No
Co. Ltd. 2025 2025.05.09 200.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
2024.09.28 200.00 Joint liability 2024.09.28-Hangzhou Xiaohua Technology March 29 200.00 guarantee 2025.05.08
Yes No
CO. LTD. 2025 2025.05.09 200.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
Zhejiang Dahua Security Joint liability 2024.09.28-
Network Operation Service Co. March 29
2024.09.28500.00
500.00 guarantee 2025.05.08
Yes No
Ltd. 2025 2025.05.09 500.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
Dahua Technology France SAS March 29 700.00 2023.12.07 122.42 (EUR Joint liability 2023.12.07-2025 145700) guarantee 2029.08.31 No No
1073.79
2024.03.04 (USD 1.5 Joint liability
March 29 million) guarantee
2024.3.4-2025.3.3 Yes No
DAHUA EUROPE B.V. 2025 16000.00 1789.65
2025.03.04 (USD 2.5 Joint liabilityguarantee 2025.3.4-2026.3.3 No Nomillion)
2024.03.04 357.93 (USD Joint liability500000) guarantee 2024.3.4-2025.3.3 Yes No
Dahua Technology Italy S.R.L. March 292025 2000.00 2025.03.04 357.93 (USD Joint liability500000) guarantee 2025.3.4-2026.3.3 No No
2025.05.09 200.00 Joint liabilityguarantee 2025.5.9-2025.8.24 No No
The debtor's debt
performance period
Joint liability stipulated in the2025.06.27 1500.00 guarantee master contract No Noshall expire two
Zhejiang Huaruijie Technology March 29 years from the due
Co. Ltd. 2025 5000.00 date.From the effective
date of the
commitment letter
2025.06.27 1000.00 Joint liability until the maturityguarantee date of each loan or No No
other financing
under the Credit
Agreement or the
482025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
maturity date of the
accounts receivable
creditor's right
assigned to China
Merchants Bank
Hangzhou Branch
or three years after
the date of each
advance.Yibin Huahui Information March 29 Joint liability 2025.1.2-
Technology Co. Ltd. 2025 500.00 2025.01.02 475.42 guarantee 2025.12.31 No No
Dahua Technology Singapore March 29 92.23 Joint liability 2025.4.30-
Pte.Ltd. 2025 192.23 2025.04.30 (164177.83SGD) guarantee 2028.1.30
No No
Guangxi Dahua Information March 29
Technology Co. Ltd. 2025 100.00 No such case during the reporting period
Guangxi Dahua Technology March 29
Co. Ltd. 2025 100.00 No such case during the reporting period
Anhui Dahua Zhilian
Information Technology Co. March 292025 300.00 No such case during the reporting periodLtd.Chengdu Dahua Zhilian
Information Technology Co. March 292025 500.00 No such case during the reporting periodLtd.Chengdu Dahua Zhishu
Information Technology Service March 292025 300.00 No such case during the reporting periodCo. Ltd.Chengdu Zhichuang Yunshu March 29
Technology Co. Ltd. 2025 300.00 No such case during the reporting period
Hangzhou Fuyang Hua'ao March 29
Technology Co. Ltd. 2025 100.00 No such case during the reporting period
Henan Dahua Zhilian
Information Technology Co. March 292025 300.00 No such case during the reporting periodLtd.Zhejiang Huaqi Intelligent March 29
Technology Co. Ltd. 2025 500.00 No such case during the reporting period
Tianjin Dahua Information March 29
Technology Co. Ltd. 2025 100.00 No such case during the reporting period
Yiwu Huaxi Technology Co. March 29
Ltd. 2025 100.00 No such case during the reporting period
Zhejiang Dahua Intelligent IoT March 29
Operation Service Co. Ltd. 2025 300.00 No such case during the reporting period
Zhejiang Huakong Software March 29
Co. Ltd. 2025 100.00 No such case during the reporting period
Dahua Technology Japan LLC March 292025 100.00 No such case during the reporting period
Dahua Technology Poland March 29
Sp.Zo.O. 2025 800.00 No such case during the reporting period
Dahua Technology Hungary Kft March 292025 100.00 No such case during the reporting period
Dahua Technology India Private March 29
Limited 2025 4000.00 No such case during the reporting period
DAHUA TECHNOLOGY
BRASIL COMéRCIO E March 29
SERVI?OS EM SEGURAN?A 2025 1000.00 No such case during the reporting period
ELETR?NICA LTDA
Dahua Technology Middle East March 29
FZE 2025 1000.00 No such case during the reporting period
Dahua Technology Perú S.A.C March 292025 100.00 No such case during the reporting period
Dahua Technology Australia March 29
PTY LTD 2025 100.00 No such case during the reporting period
Dahua Technology South Africa March 29
Proprietary Limited 2025 100.00 No such case during the reporting period
Dahua Technology Canada March 29
INC. 2025 100.00 No such case during the reporting period
Dahua Guvenlik Teknolojileri March 29
Sanayi ve Ticaret A.S. 2025 200.00 No such case during the reporting period
Dahua Technology SRB d.o.o. March 292025 100.00 No such case during the reporting period
Dahua Technology Bulgaria March 29
EOOD 2025 100.00 No such case during the reporting period
Dahua Iberia S.L. March 292025 100.00 No such case during the reporting period
492025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua Security Malaysia SDN. March 29
BHD. 2025 100.00 No such case during the reporting period
Dahua Technology Kazakhstan March 29
LLP 2025 100.00 No such case during the reporting period
PT. Dahua Vision Technology March 29
Indonesia 2025 100.00 No such case during the reporting period
Dahua Technology Korea March 29
Company Limited 2025 100.00 No such case during the reporting period
Dahua Technology S.R.L. March 292025 100.00 No such case during the reporting period
Dahua Vision LLc March 292025 100.00 No such case during the reporting period
Dahua Technology New March 29
Zealand Limited 2025 100.00 No such case during the reporting period
Dahua Technology GmbH March 292025 300.00 No such case during the reporting period
Dahua Technology Colombia March 29
S.A.S. 2025 100.00 No such case during the reporting period
Dahua Technology Panama March 29
S.A. 2025 100.00 No such case during the reporting period
Dahua Technology Chile SpA March 292025 100.00 No such case during the reporting period
Dahua Technology Tunisia March 29
Limited Liability Company 2025 100.00 No such case during the reporting period
Dahua Technology Kenya March 29
Limited 2025 100.00 No such case during the reporting period
Dahua Technology Pakistan March 29
(private) Limited 2025 100.00 No such case during the reporting period
Dahua Technology Morocco March 29
SARL 2025 100.00 No such case during the reporting period
Dahua Argentina S.A. March 292025 100.00 No such case during the reporting period
Dahua Technology Czech s.r.o. March 292025 100.00 No such case during the reporting period
Dahua Technology Denmark March 29
ApS 2025 100.00 No such case during the reporting period
Dahua Technology (Thailand) March 29
Co.LTD. 2025 100.00 No such case during the reporting period
Luoyang Dahua Zhiyu
Information Technology Co. March 292025 300.00 No such case during the reporting periodLtd.Dahua Technology Belgium B.V. March 292025 100.00 No such case during the reporting period
VISMEXTECH DHM March 29
SERVICIOS S.A. DEC.V. 2025 100.00 No such case during the reporting period
DAHUA TECHNOLOGY March 29
INTERNATIONAL PTE. LTD. 2025 1500.00 No such case during the reporting period
Dahua Technology Regional March 29
Headquarters 2025 1000.00 No such case during the reporting period
Nanyang Dahua Intelligent
Information Technology Co. March 29
Ltd. 2025
100.00 No such case during the reporting period
Total amount of guarantees
Total amount of guarantees to subsidiaries
approved during the reporting period (B1) 1339700.00
to subsidiaries actually
occurred during the 173627.60
reporting period (B2)
Total balance of guarantees
Total amount of guarantees to subsidiaries actually paid to subsidiaries
approved by the end of the reporting period (B3) 1339700.00 at the end of the reporting 916240.55
period (B4)
Subsidiaries' guarantees to subsidiaries
Announcement
date of Actual Guarantee for
Guaranteed party disclosure of Guarantee Actual occurrence guarantee Type ofamount date guarantee Term of guarantee Due or not related partiesthe guarantee amount or not
cap
502025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The guarantee
period is until
HuaRay Korea has
fulfilled its
responsibilities and
180.75 (KRW Joint andseveral obligations under2024.12.09 343.432 liability each business
No (partially No
million) guarantee agreement. The
completed)
specific guarantee
period under each
business contract is
calculated
separately.The guarantee
period is until
HuaRay Korea has
fulfilled its
Joint and responsibilities and
77.37 (KRW several obligations under2024.12.13 No (partially147 million) liability each businessagreement. The completed)
No
guarantee specific guarantee
period under each
business contract is
calculated
separately.The guarantee
period is until
HuaRay Korea has
fulfilled its
Joint and responsibilities and
Huaray Technology Korea March 29 obligations under
Company Limited 2025 4000.00 2025.04.11
65.27 (KRW several each business No (partially124.02 million) liability completed) No
guarantee agreement. Thespecific guarantee
period under each
business contract is
calculated
separately.The guarantee
period is until
HuaRay Korea has
fulfilled its
99.15 (KRW Joint and
responsibilities and
obligations under
2025.05.07 188.3864 severalliability each business No Nomillion) guarantee agreement. Thespecific guarantee
period under each
business contract is
calculated
separately.The guarantee
period is until
HuaRay Korea has
fulfilled its
responsibilities and
223.12 (KRW Joint andseveral obligations under2025.06.27 423.926 each business No No
million) liabilityguarantee agreement. Thespecific guarantee
period under each
business contract is
calculated
separately.Huaray technology GmbH March 292025 1000.00 No such case during the reporting period
Huaray Technology Singapore March 29
Pte.Ltd 2025 3000.00 No such case during the reporting period
Total amount of guarantees
Total amount of guarantees to subsidiaries 8000.00 to subsidiaries actuallyapproved during the reporting period (C1) occurred during the 387.54
reporting period (C2)
Total amount of guarantees to subsidiaries Total balance of guarantees
approved by the end of the reporting period 8000.00 actually paid to subsidiaries
(C3) at the end of the reporting
402.88
period (C4)
Total amount of company guarantees (namely sum of the previous three major items)
Total amount of guarantees
Total amount of guarantees approved during the 1347700.00 actually occurred during thereporting period (A1+B1+C1) reporting period 174015.14
(A2+B2+C2)
512025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Total balance of guarantees
Total amount of guarantees approved by the actually paid at the end of
end of the reporting period (A3+B3+C3) 1347700.00 the reporting period 916643.43
(A4+B4+C4)
Total amount of actual guarantees (A4+B4+C4) as a percentage of the
Company's net assets 24.71%
Among them:
Balance of guarantees provided to the shareholders actual controllers and their
related parties (D)
Balance of debt guarantees directly or indirectly offered to guaranteed objects
with asset-liability ratio exceeding 70% (E) 863792.98
Amount of the portion of the total guarantee amount exceeding 50% of net
assets (F)
Total amount of the above three guarantees (D+E+F) 863792.98
Notes on unexpired guarantees with guarantee responsibilities occurred or
possible joint liabilities within the reporting period (if any)
Notes on providing external guarantees in violation of specified procedures (if
any)
3. Entrusted Financing
□Applicable □ Not applicable
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
companies
Financial
products of
Equity fund 8000.00
securities
companies
Total 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
522025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: ten thousand RMB
Actual Amount Whethe
Actual recovery of
Referenc profit of profits provision
r there
Type of Capit for Whether will be
Item
Trustee overvie
organizati trustee Product Amount al Starting Terminati
Investme Payment e for Expecte and loss and it passed entruste
organizati type Sourc date on date nt determinati annualize d during losses
impairme the legal d w and
on name on e direction on method d rate of revenue the during
nt
accrued procedur financial
related
return reporting the es plan in query
period reporting in the the index
period currentyear future
Private
equity
fund
products
fixed
Guosen Asset income Payment of
Securities Securities Manageme 100000.0 Equity February February assets principal 18809.9 Unexpire Yes
co. Ltd. Company nt Plan 0 fund 10 2021 09 2031 equity and income 6 d
assets at maturity
public
equity
hybrid
funds
Guosen Novemb Principal-
Securities Securities Earnings 8000.00 Equity er 06 Novembe Others Protected 124.41 Unexpire Yes
co. Ltd. Company certificate fund 2024 r 06 2025 Floating dIncome
Total 108000.0 -- -- -- -- -- -- 18934.30 7 -- -- -- --
Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment
□ Applicable □Not applicable
4. Other Significant Contracts
□ Applicable □Not applicable
No such case as other significant contract during the reporting period.XIII. Explanations on Other Significant Matters
□Applicable □ Not applicable
Based on confidence in the Company's future development prospects and strong recognition of its value and to
safeguard the legitimate rights and interests of investors while enhancing their confidence the Board of Directors and
general meeting of shareholders approved the Company's repurchase of a portion of its domestically issued common
stocks (A-shares) through centralized bidding transactions. The repurchased shares will be canceled to reduce
registered capital following comprehensive consideration of operational conditions business development prospects
financial status and future profitability. The total repurchase amount shall be no less than RMB 300 million (inclusive)
and no more than RMB 500 million (inclusive) with implementation to be completed within 12 months from the date
the repurchase plan is approved by the general meeting of shareholders. For details please refer to the "Share
Repurchase Report" published by the Company on the Juchao Information Network (http://www.cninfo.com.cn).XIV. Significant Events of the Company's Subsidiaries
□ Applicable □Not applicable
532025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VI 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 converted
Quantity Proportion newly Bonusshares from Others Subtotal Quantity Proportionissued capital
reserves
I. Shares with
Limited Sales 1191426894 36.15% -20633370 -20633370 1170793524 35.66%
Condition
1. Shares Held
by State 0 0.00% 0 0 0.00%
2. Shares Held
by State-owned 293103400 8.89% 0 293103400 8.93%
Legal Persons
3. Other
Domestic Shares 898323494 27.26% -20633370 -20633370 877690124 26.74%
Shares held
by domestic legal 0 0.00% 0 0 0.00%
persons
Shares held
by domestic 898323494 27.26% -20633370 -20633370 877690124 26.74%
natural persons
4. Foreign
Shares 0 0.00% 0 0 0.00%
Including:
Shares held by
overseas legal 0 0.00% 0 0 0.00%
persons
Shares held
by foreign natural 0 0.00% 0 0 0.00%
persons
II. Shares Without
Restrictions 2104202839 63.85% 7845891 7845891 2112048730 64.34%
1. RMB
Ordinary Shares 2104202839 63.85% 7845891 7845891 2112048730 64.34%
2. Foreign
Shares Listed in 0 0.00% 0 0 0.00%
China
3. Foreign
Shares Listed in 0 0.00% 0 0 0.00%
Foreign Countries
4. Other 0 0.00% 0 0 0.00%
III. Total 3295629733 100.00% -12787479 -12787479 3282842254 100.00%
Reasons for changes in shares
□Applicable □ Not applicable
542025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
1. During the reporting period pursuant to the provisions of the Stock Option and Restricted Share Incentive Plan in
2022 the Company repurchased and canceled 20544960 restricted shares held by 3837 incentive recipients that
had been granted but remained unlocked.
2. During the reporting period a total of 7757481 shares were voluntarily exercised by the incentive recipients under
the 2022 stock option and restricted share incentive plan;
3. According to relevant regulations at the beginning of each year the locked shares will be re-determined based on
the shares held by directors supervisors and senior management. At the same time for directors supervisors and
senior management who have left their positions their held shares will be locked at different stages and in varying
proportions according to their departure time and the originally stipulated term of office.Approval for changes in shares
□Applicable □ Not applicable
1. The company's repurchase and cancellation of restricted shares have been approved by the 11th meeting of the 8th
Board of Directors the 8th meeting of the 8th Board of Supervisors and the 2024 annual general meeting.
2. On June 19 2024 the company held the sixth meeting of the eighth Board of Directors and the fifth meeting of the
eighth Board of Supervisors during which the "Proposal on Meeting the Conditions for Exercising the Second Exercise
Period of 2022 Stock Options and Restricted Stock Incentive Plan" was reviewed and approved. According to the
authorization of the general meeting of shareholders and the Board of Directors the company completed the
registration and declaration work related to the voluntary exercise in 2024.Transfer for changes in shares
□ Applicable □Not applicable
The progress on share repurchases
□Applicable □ Not applicable
The Company convened the 12th Meeting of the Eighth Board of Directors on April 8 2025 and the 2024 Annual
General Meeting on April 21 2025. Both meetings reviewed and approved the "Proposal on the Scheme for the
Repurchase of Shares" authorizing the Company to use equity funds to repurchase a portion of its shares through
centralized bidding transactions. The repurchased shares will be canceled to reduce registered capital in accordance
with the law. The total repurchase amount shall be no less than RMB 300 million (inclusive) and no more than RMB
500 million (inclusive) with a repurchase price not exceeding RMB 27.26 per share (inclusive). The share repurchase
implementation period shall be within 12 months from the date the general meeting of shareholders approves this
repurchase plan. For details please refer to the "Announcement on the Scheme for the Repurchase of Shares"
disclosed by the Company on the Juchao Information Network (http://www.cninfo.com.cn) on April 9 2025.As of June 30 2025 the company repurchased 6652200 shares through the special securities account for share
repurchase via competitive bidding with the highest transaction price at RMB 15.71 per share the lowest transaction
price at RMB 15.16 per share and a total transaction amount of RMB 103.41 million (excluding transaction fees).The progress in reduction of re-purchase shares by means of centralized competitive bidding
□ 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 changes in share capital occurred due to the company's repurchase and cancellation of
restricted shares and the voluntary exercise of incentive recipients. The impact on the company's basic earnings per
share diluted earnings per share and net asset per share attributable to common shareholders for the most recent
year and the most recent period is detailed in "Section II IV. Key Accounting Data and Financial Indexes."
552025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
increased
Shares With unlocked shares with
shares with
Name of Limited Sales shares with limited sales Reasons for
limited sales Date of unlocking
Shareholder Condition At limited sales condition at limited sales
condition in
The Beginning condition in the end of the
current
Of The Period current period period
period
According to the
relevant provisions
Lock-up shares
of shares
for directors
management of
Fu Liquan 767901735 767901735 supervisors and
directors
senior
supervisors and
management
senior
management
Issuance of
China Mobile
restricted
Communications 293103400 293103400 April 13 2026
shares to
Group Co. Ltd.specific objects
According to the
relevant provisions
Lock-up shares
of shares
for directors
management of
Chen Ailing 53447110 53447110 supervisors and
directors
senior
supervisors and
management
senior
management
According to the
relevant provisions
Lock-up shares
of shares
for directors
management of
Wu Jun 51879664 51879664 supervisors and
directors
senior
supervisors and
management
senior
management
According to the
relevant provisions
Lock-up shares
of shares
for directors
management of
Wu Jian 1218701 190800 1027901 supervisors and
directors
senior
supervisors and
management
senior
management
Lock-up shares According to the
for directors relevant provisions
Zhao Yuning 984450 244800 739650
supervisors and of shares
senior management of
562025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
management directors
supervisors and
senior
management
According to the
relevant provisions
Lock-up shares
of shares
for directors
management of
Zhu Jiantang 806869 190800 616069 supervisors and
directors
senior
supervisors and
management
senior
management
According to the
relevant provisions
Lock-up shares
of shares
for directors
management of
Li Zhijie 705450 190800 514650 supervisors and
directors
senior
supervisors and
management
senior
management
According to the
relevant provisions
Lock-up shares
of shares
for directors
management of
Xu Zhicheng 661950 190800 471150 supervisors and
directors
senior
supervisors and
management
senior
management
According to the
relevant provisions
Lock-up shares
of shares
for directors
management of
Xu Qiaofen 621450 163800 457650 supervisors and
directors
senior
supervisors and
management
senior
management
According to the
relevant provisions
Lock-up shares
Other senior of shares
for directors
executives and management of
20096115 19461570 634545 supervisors and
equity incentive directors
senior
objects supervisors and
management
senior
management
Total 1191426894 20633370 1170793524 -- --
II. Issuance and Listing of Securities
□ Applicable □Not applicable
572025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total Number of Preferred Shareholders
Total Number Of Common
(If Any) (Refer to Note 8) Whose Voting
Shareholders At The End Of 187566 0
Rights have been Recovered at the End
The Reporting Period
of the Reporting Period
Shareholding situation of shareholders holding over 5% of shares or the top 10 shareholders (excluding shares lent through
refinancing)
Number of Number of Number of Pledges markings or
Changes in
shares held at shares held shares held freezing
Name of Nature of Shareholding the
the end of the with limited without
Shareholder Shareholder Percentage reporting
reporting sales limited sales State Of
period Quantity
period conditions condition Shares
Domestic
Fu Liquan Natural 31.19% 1023868980 0 767901735 255967245 Pledged 28200000
Person
State-
China Mobile
owned Not
Communications 8.93% 293103400 0 293103400 0 0
Legal applicable
Group Co. Ltd.Person
Domestic
Not
Zhu Jiangming Natural 4.66% 153140260 -3087300 0 153140260 0
applicable
Person
Domestic
Not
Chen Ailing Natural 2.17% 71262813 0 53447110 17815703 0
applicable
Person
Domestic
Not
Wu Jun Natural 2.11% 69172886 0 51879664 17293222 0
applicable
Person
Hong Kong Overseas
Not
Securities Legal 2.04% 67006597 1872365 0 67006597 0
applicable
Clearing Co. Ltd. Person
Industrial Bank
Co. Ltd. - Huaxia
CSI Robotic Not
Others 1.35% 44336975 29778900 0 44336975 0
Trading Open applicable
Index Securities
Investment Fund
Domestic
Non-state-
China Securities Not
owned 1.21% 39611241 0 0 39611241 0
Finance Co. Ltd. applicable
Legal
Person
Industrial and
Commercial Bank
of China Limited -
Huatai-PineBridge
Not
CSI 300 Others 1.08% 35316830 1136800 0 35316830 0
applicable
Exchange-traded
Open-end Index
Securities
Investment Fund
China Not
Others 0.77% 25153943 1617500 0 25153943 0
Construction Bank applicable
582025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Stock Corporation
- E Fund CSI 300
Exchange Traded
Open-End Index-
Initiated Securities
Investment Fund
Strategic investors or general legal persons
becoming shareholders of the top 10
Not applicable
common shares as a result of the placement
of new shares (if any) (see Note 3)
Description of the association relationship or Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company Is
concerted action of above-mentioned Unaware Of Whether Other Shareholders Have Associated Relationship Or Are
shareholders Persons Acting In Concert
Explanation of the above shareholders
involved in proxy/trustee voting rights and Not applicable
abstention from voting rights
As of June 30 2025 the company's dedicated securities repurchase account
Special note on the existence of repurchase
holds 26471801 shares of the company's common stock A shares which
special accounts among the top 10
according to requirements are not included in the company's top 10
shareholders (if any) (see Note 11)
shareholders or top 10 unrestricted shareholders listings.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 without Type of shares
Name of Shareholder limited sales condition at the end
of the reporting period Type of shares Quantity
RMB common
Fu Liquan 255967245 255967245
stock
RMB common
Zhu Jiangming 153140260 153140260
stock
RMB common
Hong Kong Securities Clearing Co. Ltd. 67006597 67006597
stock
Industrial Bank Co. Ltd. - Huaxia CSI Robotic Trading Open RMB common
4433697544336975
Index Securities Investment Fund stock
RMB common
China Securities Finance Co. Ltd. 39611241 39611241
stock
Industrial and Commercial Bank of China Limited - Huatai-
RMB common
PineBridge CSI 300 Exchange-traded Open-end Index 35316830 35316830
stock
Securities Investment Fund
China Construction Bank Stock Corporation - E Fund CSI
RMB common
300 Exchange Traded Open-End Index-Initiated Securities 25153943 25153943
stock
Investment Fund
New China Life Insurance Company Limited - dividend- RMB common
2414663624146636
personal dividend - 018L-FH002 Shen stock
New China Life Insurance Company Limited - Traditional - RMB common
2327514823275148
general insurance - 018L-CT001 Shen stock
PICC Life Insurance Company Limited - dividend - individual RMB common
2289094722890947
insurance dividend stock
Explanation of the relationships or concerted actions
Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The
between the top 10 unrestricted shareholders as well as
Company Is Unaware Of Whether Other Shareholders Have
between the top 10 unrestricted shareholders and the top 10
Associated Relationship Or Are Persons Acting In Concert
shareholders.Explanation on Top 10 common stock shareholders'
None
participation in securities margin trading (If any) (see Note 4)
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
592025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
□ Applicable □Not applicable
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.IV. Shareholding Changes of Directors Supervisors and Senior Management
□Applicable □ Not applicable
Number
Number Number
Number of
of of
Number of shares Restricted
Number of Restricted Restricted
of shares reduced Number of Stocks
shares held at Stocks Stocks
Position increased during shares held at Granted
Name Title the beginning Granted Granted
status in the this the end of the at the
of the period During the at the End
period period period Beginning
(share) Reporting of the
(share) (shares of the
Period Period
note) Period
(share) (share)
(share)
Fu Chairman
Incumbent 1023868980 0 0 1023868980 0 0 0
Liquan President
Vice
Wu Jun Incumbent 69172886 0 0 69172886 0 0 0
Chairman
Chen
Director Incumbent 71262813 0 0 71262813 0 0 0
Ailing
Director
Zhao
Executive Incumbent 1312600 0 244800 1067800 244800 0 0
Yuning
President
Yuan
Director Incumbent 0 0 0 0 0 0 0
Lihua
Zhang
Director Incumbent 0 0 0 0 0 0 0
Xiaoming
Liu Independent
Incumbent 0 0 0 0 0 0 0
Hanlin Director
Zhang Independent
Incumbent 0 0 0 0 0 0 0
Yuli Director
Cao Independent
Incumbent 0 0 0 0 0 0 0
Yanlong Director
Song Employee
Incumbent 0 0 0 0 0 0 0
Maoyuan Supervisor
Zheng Employee
Incumbent 50200 0 0 50200 0 0 0
Jieping Supervisor
Jia Qi Supervisor Incumbent 0 0 0 0 0 0 0
Senior Vice
Liu Ming Incumbent 805500 0 190800 614700 190800 0 0
President
Senior Vice
Li Zhijie Incumbent 940600 0 190800 749800 190800 0 0
President
Senior Vice
Song Ke Incumbent 327600 0 163800 163800 163800 0 0
President
Wu Jian Secretary of Incumbent 1624935 0 190800 1434135 190800 0 0
602025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
the Board of
Directors
Senior Vice
President
Senior Vice
President
Xu
Chief Incumbent 828600 0 163800 664800 163800 0 0
Qiaofen
Financial
Officer
Xu Senior Vice
Incumbent 882600 0 190800 691800 190800 0 0
Zhicheng President
Zhu Senior Vice
Incumbent 1075825 0 190800 885025 190800 0 0
Jiantang President
Chen Senior Vice
Incumbent 53040 0 26520 26520 26520 0 0
Qiang President
Total -- -- 1172206179 0 1552920 1170653259 1552920 0 0
Note: "Number of Shares Decreased in the Period" refers to the Company's repurchase and cancellation of restricted
shares that had been granted to directors and senior management but remained unlocked.V. Particulars about the Change to the Controlling Shareholders and Actual
Controllers
Change of the controlling shareholders in the reporting period
□ Applicable □Not applicable
No change has happened to the controlling shareholder in the reporting period of the Company
Change of the actual controller in the reporting period
□ Applicable □Not applicable
No change has happened to the actual controller in the reporting period
VI. Preferred Stock Related Information
□ Applicable □Not applicable
There are no preferred shares in the reporting period.
612025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VII Bond-Related Information
□ Applicable □Not applicable
622025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VIII Financial Report
I. Audit Reports
Whether the semi-annual report has been audited
□ Yes □No
The semi-annual report has not been audited.II. Financial Statements
Units of financial reports in the notes: RMB
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co. Ltd.June 30 2025
Unit: RMB
Item Closing Balance Opening Balance
Current Assets:
Cash and bank balances 8445984587.70 11181803423.83
Deposit reservation for balance
Loans to Banks and Other
Financial Institutions
Trading financial assets 108022303.02 229927529.28
Derivative Financial Assets
Notes receivable 679431194.94 777750260.09
Accounts receivable 15790636239.17 17046094518.79
Receivables Financing 774019955.88 841815267.43
Prepayments 324080823.13 310574867.09
Premium receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 579165629.07 293728850.42
Including: interest receivable 669535.47
Dividends receivable
Buying Back the Sale of Financial
Assets
Inventory 5549837470.93 5203560771.25
Among them: Data resources
Contract assets 83105021.95 87397517.09
Holding for-sale assets
Non-current Assets Due within 1 363369234.97 237608641.30
632025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Year
Other current assets 593995732.10 1035802016.58
Total current assets 33291648192.86 37246063663.15
Non-current asset:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables 686714849.69 744412552.00
Long-term Equity Investment 749403415.83 722241568.57
Investment in Other Equity
Instruments
Other Non-current Financial Assets 1459057246.33 1274697490.87
Investment property 145023330.44 139280586.26
Fixed Assets 5331558518.85 4973953628.05
Projects under Construction 850146152.40 1254554187.36
Productive biological asset
Oil and gas assets
Right-of-use assets 226161696.36 232124277.86
Intangible asset 565682245.01 578035438.59
Among them: Data resources
Development Expenditure
Among them: Data resources
Goodwill 6615294.18 6615294.18
Long-term Deferred Expenses 81231852.70 99410405.42
Deferred income tax assets 1008704306.23 1136746080.45
Other non-current assets 5619083954.76 4327776909.06
Total non-current assets 16729382862.78 15489848418.67
Total assets 50021031055.64 52735912081.82
Current liability:
Short-term loan 501579505.58 995000000.00
Borrowing from the central bank
Borrowings from Banks and Other
Financial Institutions
Transactional financial liabilities 3784147.07 4268603.52
Derivative financial liability
Notes Payable 2851016916.85 3599974242.02
Accounts Payable 5318829779.51 5877976861.13
Advance payments
Contract liabilities 806391542.30 1282204348.75
Proceeds from the sale and
repurchase of financial assets
Deposit Taking and Interbank
Deposit
642025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Receiving from Vicariously Traded
Securities
Receiving from Vicariously Sold
Securities
Payroll payable 895053643.66 1811053208.92
Taxes Payable 398474375.43 405860321.63
Other payables 440276175.28 637013560.05
Including: interest payable
Dividends Payable 22951560.23
Payable service charges and
commissions
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due within 1 93778798.09 117227812.08
Year
Other current liabilities 139826674.38 160151530.23
Total current liabilities 11449011558.15 14890730488.33
Non-current liability:
Insurance Contract Reserves
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease liabilities 128641582.44 114313807.41
Long-term payables
Long-term payroll payable
Expected Liabilities 293714394.83 268194691.24
Deferred income 174950192.93 186181012.99
Deferred income tax liabilities 19162.22
Other non-current liabilities 94386053.89 102264089.02
Total non-current liabilities 691692224.09 670972762.88
Total liabilities 12140703782.24 15561703251.21
Owner's equity:
Share Capital 3282842254.00 3295629733.00
Other equity instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 7162106446.57 7156767235.86
Less: treasury share 523372315.27 564654524.63
Other comprehensive income 131704549.95 104358460.57
Special reserve
Surplus Reserves 1647814866.50 1647814866.50
General risk reserve
Undistributed Profits 25394119430.44 24388130399.78
Total equity attributable to the parent
37095215232.1936028046171.08
company's shareholders
Minority shareholders' equity 785112041.21 1146162659.53
652025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Total owners' equity 37880327273.40 37174208830.61
Total liabilities and shareholders'
50021031055.6452735912081.82
equity
Legal representative: Fu Liquan Person in charge of accounting work: Xu Qiaofen
Head of accounting department: Zhu Zhuling
2. Balance Sheet of the Parent Company
Unit: RMB
Item Closing Balance Opening Balance
Current Assets:
Cash and bank balances 4053386145.77 5897243923.06
Trading financial assets 108022303.02 229927529.28
Derivative Financial Assets
Notes receivable 24705897.07 46362406.21
Accounts receivable 4756787785.43 4139497263.56
Receivables Financing 1135261945.74 719599879.51
Prepayments 7815861.85 16906692.15
Other Receivables 13499248390.13 13384626871.41
Including: interest receivable 669535.47
Dividends receivable
Inventory 232370568.78 284771384.52
Among them: Data resources
Contract assets 10057836.21 11494282.17
Holding for-sale assets
Non-current Assets Due within 1
174851210.063807555.80
Year
Other current assets 78859552.98 538541006.72
Total current assets 24081367497.04 25272778794.39
Non-current asset:
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables 1927043.58 1954398.82
Long-term Equity Investment 8118833805.77 8162278853.75
Investment in Other Equity
Instruments
Other Non-current Financial Assets 1434117246.33 1249757490.87
Investment property 18600074.27 19105162.49
Fixed Assets 1681461472.34 1727649143.59
Projects under Construction 3814816.27 3656082.30
Productive biological asset
Oil and gas assets
Right-of-use assets 53326329.55 65543667.49
662025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Intangible asset 125546534.95 128466583.90
Among them: Data resources
Development Expenditure
Among them: Data resources
Goodwill
Long-term Deferred Expenses 41863984.78 51808153.67
Deferred income tax assets 20743191.15 193183542.15
Other non-current assets 4242014937.07 3122186359.68
Total non-current assets 15742249436.06 14725589438.71
Total assets 39823616933.10 39998368233.10
Current liability:
Short-term loan
Transactional financial liabilities 776841.98
Derivative financial liability
Notes Payable 554428922.56 654898101.96
Accounts Payable 784278878.34 998713006.78
Advance payments
Contract liabilities 107296799.48 127382878.88
Payroll payable 554722001.22 1115800008.44
Taxes Payable 167079972.04 170444725.36
Other payables 1404584526.79 1350481637.98
Including: interest payable
Dividends Payable 22951560.23
Holding for-sale liabilities
Non-current Liabilities Due within 1 29701405.77 35716560.18
Year
Other current liabilities 18140306.36 25720588.07
Total current liabilities 3620232812.56 4479934349.63
Non-current liability:
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease liabilities 17828877.83 23992169.41
Long-term payables
Long-term payroll payable
Expected Liabilities 40191780.06 39764161.76
Deferred income 29235794.79 30091476.57
Deferred income tax liabilities
Other non-current liabilities 28471.58 44307.49
Total non-current liabilities 87284924.26 93892115.23
Total liabilities 3707517736.82 4573826464.86
Owner's equity:
672025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Share Capital 3282842254.00 3295629733.00
Other equity instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 6881044295.12 6888762462.22
Less: treasury share 523372315.27 564654524.63
Other comprehensive income
Special reserve
Surplus Reserves 1647814866.50 1647814866.50
Undistributed Profits 24827770095.93 24156989231.15
Total owners' equity 36116099196.28 35424541768.24
Total liabilities and shareholders'
39823616933.1039998368233.10
equity
3. Consolidated Income Statement
Unit: RMB
Item 2025 Semi-Annual Report 2024 Semi-Annual Report (restated)
I. Total Operating Revenue 15181329651.13 14866622569.81
Among them: operating revenue 15181329651.13 14866622569.81
Interest income
Earned Premiums
Service Charge and
Commission Income
II. Total Operating Cost 13272648542.15 13262791211.99
Including: Operating Cost 8864525518.69 8782722018.67
Interest expense
Service Charge and
Commission Expenses
Surrender Value
Net Claims Paid
Extract net reserve for
insurance liabilities
Policyholder Dividend
Expense
Reinsurance Cost
Taxes and Surcharges 113838720.28 100129032.87
Sales expenses 2163482109.43 2216940115.97
Administration expenses 554682203.57 511481522.31
Research and development
1984405423.101901330160.90
expense
Financial expenses -408285432.92 -249811638.73
Including: interest
-15628113.4428989823.89
expenses
Interest income 153226904.60 236240691.12
Add: Other income 518903075.93 510212853.42
Investment Income (Mark "-"
597805651.04140115897.54
for Loss)
682025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Including: investment
income from joint ventures and joint 10798379.54 16910626.79
ventures
Profits from
recognition Termination of Financial -8048848.07 -755702.55
Assets at Amortized Cost
Exchange Gains (Mark "-" for
Loss)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair
79576958.11-159981988.74
value (Mark "-" for loss)
Credit Impairment Losses
-194543132.31-214225008.79
(Mark "-" for Loss)
Asset Impairment Losses
-43153204.66-54847036.23
(Mark "-" for Loss)
Asset Disposal Income (Mark
581021.391086545.09
"-" for Loss)
III. Operating Profit (Mark "-" for
2867851478.481826192620.11
Loss)
Add: non-operating revenue 6414632.11 6403965.47
Less: non-operating expense 5010225.72 3057915.50
IV. Total Profit (Mark "-" for total Loss) 2869255884.87 1829538670.08
Less: Income Tax Expense 270570745.94 -33838461.10
V. Net Profit (Mark "-" for Net Loss) 2598685138.93 1863377131.18
(I) Classified by operation
continuity
1. Net Profit as a Going Concern
2598685138.931863377131.18
(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
Shareholders of Parent Company 2475566750.61 1809589445.46
(Mark "-" for Net Loss)
2. Minority Shareholders' Profit
123118388.3253787685.72
and Loss (Mark "-" for Net Loss)
VI. Other Comprehensive Income
28285767.167219753.97
Net of Tax
Other comprehensive income net
of tax attributable to the parent 27346089.38 7222390.91
company owners
(I) Other comprehensive income
that cannot be reclassified to 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
692025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
instruments
4. Changes in the fair value of
the credit risk of the enterprise
5. Others
(II) Other comprehensive income
27346089.387222390.91
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
other creditor's right investments
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. Foreign Currency Financial
27346089.387222390.91
Statement Conversion Difference
7. Others
Net Amount of Other
Comprehensive Incomes After Tax 939677.78 -2636.94
Attributable to Minority Shareholders
VII. Total Comprehensive Income 2626970906.09 1870596885.15
Total comprehensive income
attributable to the parent company's 2502912839.99 1816811836.37
owners
Comprehensive income
124058066.1053785048.78
attributable to minority shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.76 0.56
(II) Diluted Earnings per Share 0.76 0.56
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 2025 Semi-Annual Report 2024 Semi-Annual Report (restated)
I. Operating Revenue 4269391151.91 3332618836.58
Less: Operating Cost 649206598.17 579771987.54
Taxes and Surcharges 64148103.97 52833473.57
Sales expenses 921125546.36 993463683.18
Administration expenses 288423327.35 288777899.34
Research and development
1375243343.501386263752.68
expense
Financial expenses -92690029.77 -159912332.30
Including: interest expenses 1114149.99 18783651.94
Interest income 98803243.31 139821641.18
Add: Other income 406482206.25 430065275.63
Investment Income (Mark "-"
787748139.447008809.30
for Loss)
702025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Including: investment
income from joint ventures and joint -8941186.68 -11449222.10
ventures
Profits from
Derecognition of Financial Assets at -1014593.28 -2345573.99
Amortized Cost (Mark "-" for Loss)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair
79882653.25-162212141.92
value (Mark "-" for loss)
Credit Impairment Losses
-23757046.57-19022388.30
(Mark "-" for Loss)
Asset Impairment Losses
-1263528.38-2567600.12
(Mark "-" for Loss)
Asset Disposal Income (Mark
151171.60227007.77
"-" for Loss)
II. Operating Profit (Mark "-" for Loss) 2313177857.92 444919334.93
Add: non-operating revenue 1206726.23 2832286.45
Less: non-operating expense 1583168.48 670408.53
III. Total Profit (Mark "-" for Total
2312801415.67447081212.85
Loss)
Less: Income Tax Expense 172442830.94 -330729679.05
IV. Net Profit (Mark "-" for Net Loss) 2140358584.73 777810891.90
(I) Net Profit as a Going Concern
2140358584.73777810891.90
(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 to 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
other creditor's right investments
3. Financial assets reclassified
into other comprehensive income
4. Provisions for the credit
712025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Foreign Currency Financial
Statement Conversion Difference
7. Others
VI. Total Comprehensive Income 2140358584.73 777810891.90
VII. Earnings per Share:
(I) Basic Earnings per Share 0.66 0.24
(II) Diluted Earnings per Share 0.66 0.24
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2025 Semi-Annual Report 2024 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
17413245510.5715999801747.36
and Provision of Services
Net increase in customer 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 507911753.41 487693658.24
Cash received from other
766327743.24768065566.02
operating activities
Subtotal of cash inflow from
18687485007.2217255560971.62
operating activities
Cash paid for goods and services 11466540352.42 10837561772.87
Net increase in customer loans
and advances
Net Increase in Deposits with
Central Bank and Other Financial
Institutions
722025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 4403786062.60 4320315534.52
Taxes and fees paid 1021650225.82 1493582479.14
Pay cash for other operating
1156385387.271111286805.80
activities
Total cash outflow from operating
18048362028.1117762746592.33
activities
Net cash flow generated by operating
639122979.11-507185620.71
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
8171035464.96481137746.89
Investments
Cash received from investment
8808463.0212084508.88
income
Net cash recovered from disposal
of fixed assets intangible assets and 1203271.90 334216.87
other long-term assets
Net cash received from disposal of
11700743.1673178296.48
subsidiaries and other business units
Cash received from other activities
4715470.2823793990.04
related to investing
Total cash inflow from investing
8197463413.32590528759.16
activities
Cash paid for the acquisition and
construction of fixed assets
338555957.22478507303.15
intangible assets and other long-
term assets
Cash paid for investment activities 9068102084.24 3845358576.51
Net increase in pledge loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
Cash paid for other investment
42985598.315398155.52
activities
Total cash outflow from investing
9449643639.774329264035.18
activities
Net amount of cash flow generated
-1252180226.45-3738735276.02
by investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
118096409.17
Investments
Among them: cash received by
subsidiaries from minority
shareholder investments
Cash Arising from Borrowings 701579505.58 1119437200.00
Cash received from other financing
activities
Subtotal of cash inflow from financing
819675914.751119437200.00
activities
732025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Cash paid for debt repayment 1195000000.00 1960841548.08
Cash paid for distribution of
dividends profits or interest 1495537757.94 1256629266.40
payments
Among them: dividends and profits
paid by subsidiaries to minority
shareholders
Cash paid for other financing
356819410.68133019499.80
activities
Total cash outflow from financing
3047357168.623350490314.28
activities
Net cash flow generated by financing
-2227681253.87-2231053114.28
activities
IV. Impact of Exchange Rate
Fluctuations on Cash and Cash 103029984.04 90334024.57
Equivalents
V. Net Increase in Cash and Cash
-2737708517.17-6386639986.44
Equivalents
Add: Beginning balance of cash
11061530816.2815880659594.95
and cash equivalents
VI. Ending Balance of Cash and
8323822299.119494019608.51
Cash Equivalents
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2025 Semi-Annual Report 2024 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
3329909556.666400564483.19
and Provision of Services
Tax Refund
Cash received from other
494557156.96596191681.83
operating activities
Subtotal of cash inflow from
3824466713.626996756165.02
operating activities
Cash paid for goods and services 785693404.04 333875102.97
Cash Paid to and for Employees 2281520569.72 2560097319.34
Taxes and fees paid 483430857.73 1029098229.23
Pay cash for other operating
540659886.74629025957.64
activities
Total cash outflow from operating
4091304718.234552096609.18
activities
Net cash flow generated by operating
-266838004.612444659555.84
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
8486620259.96484317242.81
Investments
Cash received from investment
105126.2539647.97
income
Net cash recovered from disposal
of fixed assets intangible assets and 2626116.67 13312131.73
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
742025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Cash received from other activities
7828500.00
related to investing
Total cash inflow from investing
8489351502.88505497522.51
activities
Cash paid for the acquisition and
construction of fixed assets
66633826.9987357677.25
intangible assets and other long-
term assets
Cash paid for investment activities 8756686741.78 2833198571.53
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
Cash paid for other investment
activities
Total cash outflow from investing
8823320568.772920556248.78
activities
Net amount of cash flow generated
-333969065.89-2415058726.27
by investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
118096409.17
Investments
Cash Arising from Borrowings 100000000.00
Cash received from other financing
926336823.82518392829.86
activities
Subtotal of cash inflow from financing
1144433232.99518392829.86
activities
Cash paid for debt repayment 100000000.00 1250000000.00
Cash paid for distribution of
dividends profits or interest 1493095774.05 1244407410.64
payments
Cash paid for other financing
788250094.462898655199.47
activities
Total cash outflow from financing
2381345868.515393062610.11
activities
Net cash flow generated by financing
-1236912635.52-4874669780.25
activities
IV. Impact of Exchange Rate
Fluctuations on Cash and Cash -4416908.93 39318887.23
Equivalents
V. Net Increase in Cash and Cash
-1842136614.95-4805750063.45
Equivalents
Add: Beginning balance of cash
5843167456.419581289905.32
and cash equivalents
VI. Ending Balance of Cash and
4001030841.464775539841.87
Cash Equivalents
752025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
2025 Semi-Annual Report
Equity attributable to the parent company owners
Item Other equity instruments MinorityOther General shareholders' Total owners'
Share Capital Less: treasury Special Surplus UndistributedPreferred Perpetual Capital Reserves comprehensive risk Others Subtotal equity
Stocks Bonds Others
share equityincome reserve Reserves reserve Profits
I. Balance at the End of
Last Year 3295629733.00 7156767235.86 564654524.63 104358460.57 1647814866.50 24388130399.78 36028046171.08 1146162659.53 37174208830.61
Add: Change in
accounting policies
Correction of
Errors in the Previous
Period
Others
II. Balance at the Start
of This Year 3295629733.00 7156767235.86 564654524.63 104358460.57 1647814866.50 24388130399.78 36028046171.08 1146162659.53 37174208830.61
III. Increases or
Decreases in This
Period (Mark "-" for -12787479.00 5339210.71 -41282209.36 27346089.38 1005989030.66 1067169061.11 -361050618.32 706118442.79
Decreases)
(I) Total comprehensive
income 27346089.38 2475566750.61 2502912839.99 124058066.10 2626970906.09
(II) Owner
Contributions and -12787479.00 3745032.37 -41282209.36 32239762.73 15736440.75 47976203.48
Capital Reductions
1. Common stock
invested by the owner -12787479.00 -36781785.77 -41282209.36 -8287055.41 -8287055.41
2. Capital Invested by
Holders of Other Equity
Instruments
3. Amount of Share-
based Payments
Recorded into 40526818.14 40526818.14 15736440.75 56263258.89
Shareholders' Equity
4. Others
(III) Profit Distribution -1469577719.95 -1469577719.95 -1469577719.95
1. Appropriation of
Surplus Reserves
2. Appropriation of
General Risk Reserves
762025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
3. Distribution to
Owners (or -1469577719.95 -1469577719.95 -1469577719.95
Shareholders)
4. Others
(IV) Internal Carry-
forward of
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-forward
Retained Earnings of
the Comprehensive
Income
6. Others
(V) Special Reserves
1. Withdrawal in this
period
2. Used in This Period
(VI) Others 1594178.34 1594178.34 -500845125.17 -499250946.83
IV. Balance at the End
of This Period 3282842254.00 7162106446.57 523372315.27 131704549.95 1647814866.50 25394119430.44 37095215232.19 785112041.21 37880327273.40
Amount of the previous year
Unit: RMB
2024 Semi-Annual
Equity attributable to the parent company owners
Item Other equity instruments MinorityOther General shareholders' Total owners'
Share Capital Preferred Perpetual Capital Reserves
Less: treasury Special Surplus Undistributed equity
Others share
comprehensive
income reserve Reserves
risk Profits Others Subtotal equity
Stocks Bonds reserve
I. Balance at the End of
Last Year 3294468990.00 7124125996.49 746699863.45 65993020.83 1647234495.00 23334051186.55 34719173825.42 1164920573.58 35884094399.00
Add: Change in
accounting policies
Correction of
Errors in the Previous
Period
772025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Others
II. Balance at the Start
of This Year 3294468990.00 7124125996.49 746699863.45 65993020.83 1647234495.00 23334051186.55 34719173825.42 1164920573.58 35884094399.00
III. Increases or
Decreases in This
Period (Mark "-" for -2134680.00 89926808.57 -31830926.97 7222390.91 560665330.54 687510776.99 27886351.97 715397128.96
Decreases)
(I) Total comprehensive
income 7222390.91 1809589445.46 1816811836.37 53785048.78 1870596885.15
(II) Owner
Contributions and -2134680.00 89723701.68 -31830926.97 119419948.65 23724480.56 143144429.21
Capital Reductions
1. Common stock
invested by the owner -2134680.00 -15284308.80 -31830926.97 14411938.17 14411938.17
2. Capital Invested by
Holders of Other Equity
Instruments
3. Amount of Share-
based Payments
Recorded into 105008010.48 105008010.48 23724480.56 128732491.04
Shareholders' Equity
4. Others
(III) Profit Distribution -1248924114.92 -1248924114.92 -1248924114.92
1. Appropriation of
Surplus Reserves
2. Appropriation of
General Risk Reserves
3. Distribution to
Owners (or -1248924114.92 -1248924114.92 -1248924114.92
Shareholders)
4. Others
(IV) Internal Carry-
forward of
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-forward
Retained Earnings of
the Comprehensive
782025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Income
6. Others
(V) Special Reserves
1. Withdrawal in this
period
2. Used in This Period
(VI) Others 203106.89 203106.89 -49623177.37 -49420070.48
IV. Balance at the End
of This Period 3292334310.00 7214052805.06 714868936.48 73215411.74 1647234495.00 23894716517.09 35406684602.41 1192806925.55 36599491527.96
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2025 Semi-Annual Report
Item Other equity instruments Other
Share Capital Preferred Perpetual Capital Reserves Less: treasury share comprehensive
Special
reserve Surplus Reserves Undistributed Profits Others Total owners' equity
Stocks Bonds Others income
I. Balance at the End of
Last Year 3295629733.00 6888762462.22 564654524.63 1647814866.50 24156989231.15 35424541768.24
Add: Change in
accounting policies
Correction of
Errors in the Previous
Period
Others
II. Balance at the Start
of This Year 3295629733.00 6888762462.22 564654524.63 1647814866.50 24156989231.15 35424541768.24
III. Increases or
Decreases in This
Period (Mark "-" for -12787479.00 -7718167.10 -41282209.36 670780864.78 691557428.04
Decreases)
(I) Total comprehensive
income 2140358584.73 2140358584.73
(II) Owner
Contributions and -12787479.00 -9256636.82 -41282209.36 19238093.54
Capital Reductions
1. Common stock
invested by the owner -12787479.00 -36781785.77 -41282209.36 -8287055.41
2. Capital Invested by
Holders of Other Equity
Instruments
3. Amount of Share- 27525148.95 27525148.95
792025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
based Payments
Recorded into
Shareholders' Equity
4. Others
(III) Profit Distribution -1469577719.95 -1469577719.95
1. Appropriation of
Surplus Reserves
2. Distribution to
Owners (or -1469577719.95 -1469577719.95
Shareholders)
3. Others
(IV) Internal Carry-
forward of
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-forward
Retained Earnings of
the Comprehensive
Income
6. Others
(V) Special Reserves
1. Withdrawal in this
period
2. Used in This Period
(VI) Others 1538469.72 1538469.72
IV. Balance at the End
of This Period 3282842254.00 6881044295.12 523372315.27 1647814866.50 24827770095.93 36116099196.28
Amount of the previous year
Unit: RMB
2024 Semi-Annual
Item Other equity instruments Other
Share Capital Preferred Perpetual Capital Reserves Less: treasury share comprehensive
Special
reserve Surplus Reserves Undistributed Profits Others Total owners' equity
Stocks Bonds Others income
802025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
I. Balance at the End of
Last Year 3294468990.00 6881563679.88 746699863.45 1647234495.00 24448835337.15 35525402638.58
Add: Change in
accounting policies
Correction of
Errors in the Previous
Period
Others
II. Balance at the Start
of This Year 3294468990.00 6881563679.88 746699863.45 1647234495.00 24448835337.15 35525402638.58
III. Increases or
Decreases in This
Period (Mark "-" for -2134680.00 86422226.31 -31830926.97 -471113223.02 -354994749.74
Decreases)
(I) Total comprehensive
income 777810891.90 777810891.90
(II) Owner
Contributions and -2134680.00 84717803.29 -31830926.97 114414050.26
Capital Reductions
1. Common stock
invested by the owner -2134680.00 -15284308.80 -31830926.97 14411938.17
2. Capital Invested by
Holders of Other Equity
Instruments
3. Amount of Share-
based Payments
Recorded into 100002112.09 100002112.09
Shareholders' Equity
4. Others
(III) Profit Distribution -1248924114.92 -1248924114.92
1. Appropriation of
Surplus Reserves
2. Distribution to
Owners (or -1248924114.92 -1248924114.92
Shareholders)
3. Others
(IV) Internal Carry-
forward of
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
812025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
retained earnings of the
variation of the defined
benefit plan
5. Other Carry-forward
Retained Earnings of
the Comprehensive
Income
6. Others
(V) Special Reserves
1. Withdrawal in this
period
2. Used in This Period
(VI) Others 1704423.02 1704423.02
IV. Balance at the End
of This Period 3292334310.00 6967985906.19 714868936.48 1647234495.00 23977722114.13 35170407888.84
822025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
III. Basic Information about the Company
Zhejiang Dahua Technology Co. Ltd. (hereinafter referred to as the "Company" or "this Company") was established as
a joint-stock company in June 2002 with the approval of the Zhejiang Provincial People's Government Work Leading
Group for Enterprise Listing under document Zhe Listing [2002] No. 18. It was formed through the overall restructuring
of the original Hangzhou Dahua Information Technology Co. Ltd. jointly initiated by five natural persons: 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 June 30 2025 the company has issued a total share capital of 3282842254 shares with registered capital of
RMB 3282842254.00. The registered address is No. 1187 Bin'an Road Binjiang District Hangzhou and the
headquarters address is No. 1399 Bixing 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 and issued by the Board of Directors of the company on August 15 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.
832025 Semi-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 complies with the Accounting Standards for Business Enterprises issued by the Ministry of
Finance and truthfully and completely reflects the consolidated and parent company financial position of the company
as of June 30 2025 as well as the consolidated and parent company operating result and cash flow for the first half of
2025.
2. Accounting Period
The fiscal year is from January 1 to December 31 of the Gregorian calendar.
3. Operating Cycle
The Company's operating cycle is 12 months.
4. Functional Currency
The company's domestic operating units and overseas unit Dahua Technology (HK) Limited use RMB as the functional
currency. 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 Individual accruals of 0.5% of total assets at the end of the
provision for bad debt reserves period
Bad debts recovered or reversed of the individual receivables in
Significant amount of recovered or reversed bad
the period in excess of 0.5% of the total assets at the end of the
debt provision of accounts receivable in this period
period
Write-off of individual receivables in excess of 0.5 per cent of
Write-off of important accounts receivable
total assets at the end of the period
Important Projects under Construction Project investment budget in excess of 0.5% of total assets
Significant prepayments aged over 1 year Prepayments over 1 year in excess of 0.1% of total assets
Significant accounts payable aged over 1 year Payables over 1 year in excess of 0.5% of total assets
842025 Semi-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 total
Significant contractual liabilities over 1 year
assets
Cash Flow from Significant Investment Activities Projects with cash flow exceeding 5% of total assets
Overseas operating entities with one of their total assets/total
Significant overseas operating entities
revenues/total profits exceeding 15% of the Group's
Non-wholly owned subsidiaries with one of their total assets/total
Important non-wholly owned subsidiaries
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 shall
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) Criteria for Control Judgment
The scope of consolidation of the consolidated financial statement is determined based on control and the
consolidation scope includes the company and all its 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) Method of Preparing the Consolidated Financial Statement
852025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The company regards the entire corporate group as a single accounting entity and prepares the consolidated financial
statement in accordance with uniform accounting policies to reflect the overall financial position operating result and
cash flow of the corporate group. 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.
1 Addition of Subsidiaries or Businesses
During the reporting period if subsidiaries or businesses are added through business combinations under common
control the operating results and cash flows of the subsidiaries or businesses from the beginning of the current period
to the end of the reporting period shall be included in the consolidated financial statement. At the same time
adjustments shall be made to the opening balances of the consolidated financial statement and the related items in the
comparative statements treating the combined reporting entity as having existed continuously from the time point
when the ultimate controlling party began to exercise control.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 Businesses
a. General Handling Method
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When control over the investee is lost due to disposal of part of the equity investment or other reasons the remaining
equity investment after disposal shall be remeasured at its fair value on the date 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. Stepwise Disposal of Subsidiaries
When equity investment in a subsidiary is disposed of step by step through multiple transactions until control is lost
and the terms conditions and economic effects of each transaction disposing of the equity investment in the
subsidiary meet one or more of the following situations it generally indicates that these multiple transactions constitute
a package deal:
* 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.
2 Purchase of minority equity in subsidiaries
The difference between the newly acquired long-term equity investment from the purchase of minority equity and the
share of net assets of the subsidiary continuously calculated from the purchase date or consolidation date based on
the increased shareholding ratio shall be adjusted in the stock premium under the capital reserve in the consolidated
balance sheet. If the stock premium under the capital reserve is insufficient to offset retained earnings shall be
adjusted.* Partial disposal of equity investment in a subsidiary without loss of control
The difference between the disposal proceeds and the net asset share of the subsidiary continuously calculated from
the purchase date or the merger date corresponding to the disposed long-term equity investment shall be used to
872025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
adjust the stock premium in the capital reserve of the consolidated balance sheet. If the stock premium in the capital
reserve is insufficient for offset retained earnings shall be adjusted.
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 Business
Foreign currency business uses the spot exchange rate on the transaction date or a rate determined by a reasonable
system method that approximates the spot exchange rate on the transaction date (hereinafter referred to as the
approximate spot exchange rate) as the conversion rate to translate foreign currency amounts into functional currency
amounts.The balances of foreign currency monetary items on the balance sheet date are translated at the spot exchange rate
on that date. The resulting exchange differences except for those arising from foreign currency-specific borrowings
882025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
related to the acquisition and construction of assets meeting capitalization criteria—which are treated according to the
borrowing cost capitalization principle—are all recognized in the current profit or loss.
(2) Translation of foreign currency financial statements
Assets and liabilities in the balance sheet are translated using the spot exchange rate on the balance sheet date;
equity items except for the "undistributed profit" item are translated using the spot exchange rate at the time of
occurrence. 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 Financial Instruments
According to the company's business model for managing financial assets and the contractual cash flow
characteristics of the financial assets financial assets are classified at initial recognition as: financial assets measured
at amortized cost financial assets (debt instruments) measured at fair value with changes recognized in other
comprehensive income and financial assets measured at fair value with changes recognized in profit or loss for the
current period.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 aims to collect contractual cash flow;
* Contractual cash flow refers only to payments of principal and interest based on the outstanding principal amount.The company shall classify financial assets (debt instruments) measured at fair value with changes recognized in other
comprehensive income if they simultaneously meet the following conditions and are not designated as financial assets
measured at fair value with changes recognized in profit or loss for the current period:
* The business model is both to collect contractual cash flow and to sell the financial asset;
* The contractual cash flows are solely payments of principal and interest on the principal amount outstanding.
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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
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:
* This designation can eliminate or significantly reduce accounting mismatch;
* The management and performance evaluation of the financial liability portfolio or the financial asset and financial
liability portfolio are based on fair value according to the formally documented enterprise risk management or
investment strategy and reports are made internally to key management personnel on this basis;
* The financial liability contains embedded derivatives that need to be separately separated.
(2) Recognition Basis and Measurement Methods of Financial Instruments
* Financial Assets Measured at Amortized Cost
Financial assets measured at amortized cost include notes receivable accounts receivable other receivables long-
term receivables creditor's rights investments etc. They are initially measured at fair value with related transaction
costs included in the initial recognition amount; accounts receivable without significant financing components and
accounts receivable for which the company decides not to consider financing components not exceeding one year are
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 (debt instruments) measured at fair value with changes included in other comprehensive income
Financial assets (debt instruments) measured at fair value with changes included in other comprehensive income
include receivables financing other creditor's right investments etc. initially measured at fair value with related
902025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
transaction costs included in the initial recognition amount. 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 (equity instruments) measured at fair value with changes included in other comprehensive income
Financial assets (equity instruments) measured at fair value with changes included in other comprehensive income
include other equity instrument investments and are initially measured at fair value with related transaction costs
included in the initial recognition amount. 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 with changes recognized in current profit or loss
Financial assets measured at fair value with changes recognized in current profit or loss include trading financial
assets derivative financial assets and other non-current financial assets. They are initially measured at fair value and
related transaction costs are recognized in 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 measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include transactional financial liabilities derivative
financial liabilities etc. They are initially measured at fair value and related transaction costs are recognized in profit
or loss for the current 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 measured at amortized cost
Financial liabilities measured at amortized cost include short-term loans notes payable accounts payable other
payables long-term debt bonds payable and long-term payables. They are initially measured at fair value and
related transaction costs are included in the initial recognition amount.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.
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(3) Derecognition and Transfer of Financial Assets
The company shall derecognize a financial asset when one of the following conditions is met:
* Termination of the contractual right to receive the cash flow of the financial asset;
* The financial asset has been transferred and almost all the risks and rewards of ownership of the financial asset
have been transferred to the transferee;
* The financial asset has been transferred although the company has neither transferred nor retained almost all the
risks and rewards of ownership of the financial asset control over the financial asset has not been retained.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 transferred financial asset;
* The sum of the consideration received due to the transfer and the cumulative amount of fair value changes directly
recognized in owners' equity (in cases where the transferred financial asset is a debt instrument measured at fair value
with changes recognized in other comprehensive income).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 derecognized portion;
* The consideration of the derecognized portion plus the amount corresponding to the derecognized portion in the
cumulative fair value changes originally directly recorded in owners' equity (involving transferred financial assets
measured at fair value with changes included in other comprehensive income for financial assets (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.
922025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(4) Derecognition of financial liabilities
If the present obligation of a financial liability is fully or partially discharged the financial liability or the relevant part
shall be derecognized; if the company enters into an agreement with the creditor to replace the existing financial
liability by assuming a new financial liability and the contractual terms of the new financial liability are substantially
different from those of the existing financial liability the existing financial liability shall be derecognized and the new
financial liability shall be recognized simultaneously.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 for Determining the Fair Value of Financial Assets and Financial Liabilities
For financial instruments with active markets their fair value is determined based on quotations 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) Methods for Testing Impairment of Financial Assets and Accounting Treatment
The company applies impairment accounting based on expected credit loss for financial assets measured at amortized
cost financial assets (debt instruments) measured at fair value with changes recognized in other comprehensive
income and financial guarantee contracts.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.
932025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.For the lease receivables resulting from transactions governed by "Accounting Standard for Business Enterprises
No.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:
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Item Combination
Determination Basis
Categories
Notes receivable The expected credit loss is calculated by default riskexposure 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 exposure and the expected credit loss rate for theAccounts receivable other receivables combination entire extension based on historical credit lossexperience in combination with current conditions
and predictions of future economic conditions.The expected credit loss is calculated by default risk
Affiliated exposure and the expected credit loss rate for theAccounts receivable other receivables combined entire extension based on historical credit lossexperience in combination with current conditions
and predictions of future economic conditions.The expected credit loss is calculated by default risk
Contract assets (including contract Nature of the exposure and the expected credit loss rate for theassets presented in other non-current funds entire extension based on historical credit lossassets) experience in combination with current conditions
and predictions of future economic conditions.Long-term receivables (including long- The expected credit loss is calculated by default risk
term receivables due within one year Nature of the exposure and the expected credit loss rate for the
presented in non-current assets due funds entire extension based on historical credit loss
within one year) experience in combination with current conditionsand 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 Methods and Criteria for Contract Assets
952025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The company presents contract assets or contractual liabilities in the balance sheet based on the relationship between
the fulfillment of 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.
(2) Determination Method and Accounting Treatment of Expected Credit Loss on Contract Assets
For details please refer to this section of the financial report - V. Significant Accounting Policies and Accounting
Estimates - 11. Financial Instruments.
17. Inventory
(1) Classification of Inventory
Inventory is classified as: raw materials work-in-progress finished goods contract performance cost entrusted
processing materials etc.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) Valuation method for issued inventory
Inventory is valued using the weighted average method when issued.
(3) Basis for Determining the Net Realizable Value of Inventories in Different Categories
On the balance sheet date inventories shall be 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:
962025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
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 Counting System
The perpetual inventory system is adopted.
(5) Amortization Method 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 Methods
Assets classified as held for sale are primarily non-current assets or disposal groups whose book value is recovered
mainly through sale (including non-monetary asset exchanges with commercial substance) rather than through
continued use.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:
* According to the practice of selling such assets or disposal groups in similar transactions they can be sold
immediately under the current conditions;
* The sale is highly likely to occur meaning the company has already made a resolution on a sale plan and obtained
a definite purchase commitment with the sale expected to be completed within one 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.
972025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Criteria for the Recognition and Reporting Method of Discontinued Operation
A discontinued operation is a separately identifiable component that meets one of the following conditions and has
been disposed of by the company or classified by the company as held for sale:
* This component represents an independent major business or a separate main place of business;
* This component is part of a related plan to dispose of an independent major business or a separate main place of
business;
* This component is a subsidiary acquired specifically 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) Criteria for Joint Control and Significant Influence
Joint control refers to shared control over an arrangement according to relevant agreements where decisions on the
arrangement's related activities require the unanimous consent of all parties sharing control. 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 investment formed by enterprise mergers
For long-term equity investments in subsidiaries formed by enterprise mergers under common control the initial
investment cost of the long-term equity investment on the merger date shall be based on the share of the book value
of the acquired party's owners' equity in the consolidated financial statement of the ultimate controlling party. 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
982025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 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 means other than business combinations
Long-term equity investments acquired by cash payment shall be recognized at the actual purchase price paid as the
initial investment cost.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 Profit and Loss Recognition Methods
* Long-term equity investments accounted for using the cost method
The company's long-term equity investments in subsidiaries are accounted for using the cost method unless the
investments meet the criteria for held-for-sale classification. 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 investments accounted for using the equity method
Long-term equity investments in joint ventures and joint ventures are accounted for using the 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
992025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.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
The difference between the book value of the disposed long-term equity investment and the actual consideration
received is recognized in the current period 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
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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.When disposing of equity investments in a subsidiary step by step through multiple transactions until control is lost if
these constitute a package deal all transactions shall be accounted for as a single disposal of the equity investment in
the subsidiary resulting in loss of control; before the loss of control the difference between the disposal proceeds of
each transaction and the book value of the corresponding long-term equity investment shall in the individual financial
statement first be recognized as other comprehensive income and then transferred in full to the current profit or loss
upon loss of control. 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.
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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) Principles for the Capitalization of Borrowing Cost
Borrowing costs incurred by the company that can be directly attributed to the acquisition construction or production
of qualifying assets shall be capitalized and included in the cost of the related assets; other borrowing costs shall be
recognized as expenses when incurred and charged to the current profit or loss.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 Cost
The capitalization period refers to the time point from when the borrowing cost begins to be capitalized to when the
capitalization stops. Periods during which the borrowing cost capitalization is suspended are not included.
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Borrowing costs begin to be capitalized when the following conditions are met simultaneously:
* Asset expenditures have already occurred. Asset expenditures include payments made in cash transfers of non-
cash assets or the assumption of borrowing costs incurred for the purchase construction or production of assets that
meet capitalization criteria;
* Borrowing costs have already been incurred;
* The purchase construction or production activities necessary to bring the asset to its intended use or saleable
condition have already 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 Period of Capitalization
If a qualifying asset experiences an abnormal interruption during its acquisition or production process and the
interruption lasts continuously for more than 3 months borrowing cost capitalization shall be suspended; if the
interruption is due to necessary procedures for the acquired or produced qualifying asset to reach the predetermined
usable or saleable status borrowing cost capitalization 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 Method for Capitalization Rate and Capitalized Amount of Borrowing Cost
For specific borrowings incurred to purchase or produce assets that meet capitalization criteria the capitalized amount
of borrowing cost is determined by taking the actual borrowing cost incurred during the current period for the specific
borrowings minus the interest income earned from depositing the unused borrowed funds in banks or the investment
income obtained from temporary investments.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
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a. The company initially measures intangible assets at cost upon acquisition
The cost of purchased intangible assets includes the purchase price related taxes and other expenditures directly
attributable to bringing the asset to its intended use.B. Subsequent measurement
Analyze and determine the service life when acquiring intangible assets.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 5–10 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
At the end of each fiscal year review the service life and amortization method of intangible assets with limited service
life.Upon review service life and amortization method for the intangible assets are the same with the previous estimate at
the end of this period.* Judgment basis for intangible assets with uncertain service life and procedures for reviewing their service life
As of 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
* Scope of R&D Expenditure Collection
The expenses incurred by the company during the research and development process include related employee
compensation for personnel engaged in R&D activities consumed materials related depreciation and amortization
expenses and other related costs.* Specific criteria for dividing the research phase and the development phase
The company's internal research and development project expenditures are divided into research phase expenditures
and development phase expenditures.
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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 conditions for capitalization of development stage expenditures
Expenditures during the research stage are recognized in the current period profit or loss as incurred. 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 the intangible asset to make it technically feasible for use or sale;
b. Have the intention to complete the intangible asset and use or sell it;
c. The way the intangible asset generates economic benefits including the ability to demonstrate the existence of a
market for products produced using the intangible asset or a market for the intangible asset itself; for intangible assets
intended for internal use the ability to demonstrate their usefulness;
d. Have sufficient technical financial and other resources to support the completion of the intangible asset's
development and the capability to use or sell the intangible asset;
e. Expenditures attributable to the development phase of the intangible asset can be reliably measured.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.
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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 method Amortization period
Improvement expenditure of fixed assets Straight-line method By period of benefit
leased by operating lease
Renovation Cost Straight-line method By period of benefit
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.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
1062025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
* Set the contribution plan
The company pays basic pension insurance and unemployment insurance for employees in accordance with the
relevant local government regulations. During the accounting period in which employees provide services to the
company the payable amount is calculated based on the local prescribed contribution base and rate recognized as a
liability and included in the current period's profit or loss or related asset costs.* Defined benefit plan
The company allocates the benefit obligations arising from defined benefit plans to the periods of employee service
based on the formula determined by the projected unit credit method and recognizes them in the current profit or loss
or the cost of related 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 current 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.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.
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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 contingent matters involving a single item determine based on the most likely amount;
(2) For contingent matters involving multiple items determine based on the calculation of various possible outcomes
and their related probabilities.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
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
1082025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Accounting Policies for Revenue Recognition and Measurement
The company recognizes revenue upon fulfilling the performance obligations in the contract that is when the
customer obtains control of the related goods 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 obtains and consumes the economic benefit brought by the company's performance simultaneously
with the company's fulfillment of the contract;
* The customer is able to control the goods under construction during the company's performance process;
* The goods produced during the company's performance process have irreplaceable uses and the company has the
right to collect payment for the cumulative completed performance portion throughout 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
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.
1092025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 right to receive payment for the goods or services meaning the customer has an
existing payment obligation for the goods or services;
* The company has transferred the legal title of the goods to the customer meaning the customer has obtained the
legal title of the goods;
* The company has physically transferred the goods to the customer meaning the customer has physical possession
of the goods;
* The company has transferred the major risks and rewards of ownership of the goods to the customer meaning the
customer has obtained the major risks and rewards of ownership of the goods;
* The customer has accepted the goods 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) Disclosure of specific revenue recognition methods and measurement approaches by business type
* Principles for recognizing sales revenue of standard products for domestic sales: The company sells standard
products to contractors distributors and other customers through a combination of direct selling and distributors. That
is the company signs sales contracts with customers and delivers goods to customers according to the delivery terms
stipulated in the sales contracts or customers pick up the goods themselves. The company recognizes sales revenue
after the customer receives the goods;
* Principles for recognizing revenue from overseas sales of standard products: For direct exports by domestic
companies sales revenue is mainly recognized under FOB and CIF terms after the work-in-progress is declared for
customs export. For overseas subsidiaries' sales abroad revenue is recognized after the goods are delivered to the
customer according to the agreed delivery method or after the customer picks up the goods and receives them;
* Principles for recognizing sales revenue from system integration: sales of the company's system integration
products include providing customers with solution design supporting products installation commissioning and pilot
run services with sales revenue recognized after acceptance and qualification;
* Principles for recognizing revenue from labor services: revenue is recognized at the time the labor service is
provided.
33. Contract Costs
1102025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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) The remaining consideration expected to be obtained from the transfer of goods or services related to the asset;
(2) The estimated costs to be incurred for transferring the related goods 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 obtained by the company from the government
without compensation. 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) Recognition time point
Government grants are recognized when the company meets the attached conditions and is able to receive them.
1112025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Accounting treatment
Government grants related to assets are used to offset the book value of the related assets or recognized as deferred
income. Deferred income is recognized and amortized into current profit or loss over the service life of the related
assets using a reasonable and systematic method (if related to the company's daily activities it is included in other
income; if unrelated to the company's daily activities it is included in non-operating revenue);
Government grants related to income that are used to compensate for relevant costs expenses or losses in future
periods are recognized as deferred income and included in current profit or loss during the periods when the related
costs expenses or losses are recognized (if related to the company's daily activities included in other income; if
unrelated to the company's daily activities included in non-operating revenue) or offset against the related costs
expenses or losses; government grants used to compensate for relevant costs expenses or losses already incurred
by the company are directly included in current profit or loss (if related to the company's daily activities included in
other income; if unrelated to the company's daily activities included in non-operating revenue) or offset against the
related costs 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:
* When the finance department allocates discount interest funds to the lending bank and the lending bank provides
loans to the company at a preferential interest rate under policy the company shall use the actual loan amount
received as the entry value of the borrowing and calculate the related borrowing cost based on the principal and the
preferential interest rate;
* When the finance department allocates discount interest funds directly to the company the company shall offset the
corresponding discount interest against the related borrowing cost.
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.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:
1122025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Initial recognition of goodwill;
(2) Transactions or events that are neither business combinations nor affect accounting profit and taxable income (or
deductible losses) at the time of occurrence.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 has the legal right to net settlement of current income tax assets and current income tax liabilities;
(2) Deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax
authority on the same taxpayer or related to different taxpayers but during each future period in which the deferred
income tax assets and liabilities of material significance are reversed the involved taxpayers intend to net settle the
current income tax assets and liabilities or simultaneously realize the assets and settle the liabilities.
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
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.
1132025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 consideration of the lease after the concession is reduced or remains basically unchanged compared to before
the concession where the lease consideration may be undiscounted or discounted using the discount rate before the
concession;
(2) After comprehensively considering qualitative and quantitative factors it is determined that there are no significant
changes in other terms and conditions of the lease.
(1) Accounting Treatment of Leases as a Lessee
* Right-of-use asset
On the lease term commencement date the company recognizes right-of-use assets for leases other than short-term
leases and low-value asset leases. The right-to-use assets are initially measured at cost. which includes:
A. The initial measurement amount of the lease liability;
b. Lease payments made on or before the lease term commencement date less any lease incentives received;
c. Initial direct costs incurred by the company;
d. Costs expected to be 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 condition required by the lease terms excluding
costs incurred for producing inventory.The company subsequently uses the straight-line method to accrue depreciation on the right-of-use asset. 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 liability
On the lease term commencement date the company recognizes lease liabilities for leases other than short-term
leases and low-value asset leases. 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;
1142025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.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 results of the purchase option renewal option or termination option change or when the
actual exercise of the aforementioned options is inconsistent with the original assessment results the company shall
remeasure the lease liability at the present value calculated using the changed lease payment and the revised
discount rate;
b. When the substantive fixed payment changes the expected payable amount of the guaranteed residual value
changes or the index or rate used to determine the lease payment changes the company shall remeasure the lease
liability at the present value calculated using 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 leases and low-value asset leases
The company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and low-value
asset leases and the related lease payments are recognized on a straight-line basis over the lease term in the current
period's profit or loss or the cost of the related assets. 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 Modification
If a lease modification occurs and simultaneously meets the following conditions the company will account for the
lease modification as a separate lease:
a. The lease modification expands the lease scope by adding the right to use one or more leased assets;
1152025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
b. The increased consideration is equivalent to the standalone price of the expanded lease scope portion adjusted
according to the contract conditions.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
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.* Operating Lease Accounting Treatment
Rental income from operating leases is recognized on a straight-line basis over 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.* Finance Lease Accounting Treatment
On the lease commencement date the company recognizes the finance lease receivable and derecognizes the leased
asset. 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.
1162025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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. This change expands the lease scope by adding the right to use one or more leased assets;
b. The increased consideration is equivalent to the adjusted amount of the standalone price for the expanded lease
scope under the contract conditions.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;
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.
1 As the lessee
If the asset transfer in a sale and leaseback transaction qualifies as a sale the company as the lessee measures the
right-of-use asset arising from the sale and leaseback based on the portion of the original asset's book value related to
the right obtained through the leaseback and recognizes only the gain or loss related to the rights transferred to the
lessor; if the asset transfer in the sale and leaseback transaction does not qualify as a sale the company as the
lessee continues to recognize the transferred asset and simultaneously recognizes a financial liability equal to the
transfer proceeds. For accounting treatment of the financial liabilities refer to this section Financial Report - V.Significant Accounting Polices and Accounting Estimates - 11. Financial Instruments.* As the lessor
If the asset transfer in a sale and leaseback transaction qualifies as a sale the company as the lessor accounts for
the asset purchase and applies the accounting treatment for asset leasing in accordance with the aforementioned
policy under "(2) Accounting treatment for leasing as the lessor." If the asset transfer in a sale and leaseback
transaction does not qualify as a sale the company as the lessor does not recognize the transferred asset but
1172025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
recognizes a financial asset equal to the transfer proceeds. 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
When the company repurchases its shares for reasons such as reducing registered capital or rewarding employees
the actual amount paid shall be treated as treasury shares and the repurchase shall be registered for record. If the
repurchased shares are canceled the difference between the total nominal value calculated by the nominal value of
the canceled shares and the number of canceled shares and the actual amount paid for the repurchase shall be offset
against the capital reserve. If the capital reserve is insufficient to offset the retained earnings shall be offset; if the
repurchased shares are granted to the company's employees as share-based payment settled in equity when
employees exercise the right to purchase the company's shares and pay the consideration the cost of treasury shares
delivered to employees and the accumulated amount of capital reserve (other capital reserve) during the waiting
period shall be written off and at the same time the capital reserve (stock premium) shall be adjusted according to
their difference.
(2) Debt Restructuring
* The Company as a Creditor
The Company terminates the recognition of the creditor's rights when the contractual right to receive the creditor's
cash flow is terminated. 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.
1182025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.* As the debtor
the company derecognizes the debt when the present obligation of the debt 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.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
(2) Changes in Significant Accounting Estimates
□ Applicable □Not applicable
1192025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Adjustment of relevant items in the financial statement at the beginning of the year for the first-time
adoption of new accounting standards starting in 2025
□ 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 13% 9% 6% simple collection
VAT services. After deducting the input tax that is rate of 5% simple collection rate
allowed to be deducted from the sales tax in of 3% 0% and tax-free
the current 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 Surcharges Actually paid turnover tax 2%
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. 20%
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.
1202025 Semi-Annual Report of Zhejiang Dahua Technology Co. 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%
Yiwu Huaxi Technology Co. Ltd. 20%
Fujian Dahua Qingchuang Digital Technology Co. Ltd. 20%
Zhejiang HJ Technology Co. Ltd. 20%
Zhejiang Shuhang Intelligent Technology Co. Ltd. 20%
Jilin Dahua Zhilian Technology Co. Ltd. 20%
Zhengzhou Airport Economy Zone Huaao Technology
20%
Co. Ltd.Hainan Dahua Huizhi 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
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 High-tech Enterprises Recognized by Certification Agencies in
Zhejiang Province in 2024" issued by the Office for the Administration of the Certification of National High-tech
Enterprises on December 26 2024 the 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. have been recognized as high-tech enterprises. The validity period of the certification is 3 years and the
corporate income tax for this year is calculated and 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 of High-tech Enterprises Recognized in Zhejiang Province in 2022" issued by
the Office for the Administration of the Certification of National High-tech Enterprises on December 24 2022 the
1212025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
subsidiaries Zhejiang Huaruijie Technology Co. Ltd. Zhejiang Huajian Technology Co. Ltd. Hangzhou Huacheng
Software Co. Ltd. and Zhejiang Dahua System Engineering Co. Ltd. have been recognized as high-tech enterprises.The validity period of the certification is three years and the corporate income tax for this year is calculated and paid
at a reduced tax 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 Ministry of Finance and the State Taxation Administration's "Announcement on Further Supporting
Tax and Fee Policies for the Development of Small Low-Profit Enterprises and Individual Industrial and Commercial
Households" (Ministry of Finance and State Taxation Administration Announcement No. 12 2023) and the
"Announcement on Preferential Income Tax Policies for Small Low-Profit Enterprises and Individual Industrial and
Commercial Households" (Ministry of Finance and State Taxation Administration Announcement [2023] No. 6) the
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 Wisdom 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. Guizhou Meitan Dahua Information Technology Co. Ltd. Yiwu Huaxi
Technology Co. Ltd. Fujian Dahua Qingchuang Digital Technology Co. Ltd. Zhejiang HJ Technology Co. Ltd.Zhejiang Shuhang Intelligent Technology Co. Ltd. Jilin Dahua Zhilian Technology Co. Ltd. Zhengzhou Aviation Port
Area Hua'ao Technology Co. Ltd. and Hainan Dahua Huizhi Technology Co. Ltd. shall apply a 25% reduction to the
portion of their annual taxable income not exceeding RMB 3 million and pay corporate income tax at a tax rate of 20%.
(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 Administration of
Taxation and the National Development and Reform Commission on the Continuation of the Western China
Development Corporate Income Tax Policy (Announcement of the Ministry of Finance the State Administration of
Taxation and the National Development and Reform Commission [2020] No. 23) the subsidiaries Inner Mongolia
Dahua Zhimeng Information Technology Co. Ltd. Guangxi Dahua Zhicheng Co. Ltd. and Guangxi Huacheng
Technology Co. Ltd. are eligible for Western China Development tax preferential policies from 2011 to 2030.Therefore the corporate income tax for this year is calculated and paid at a reduced tax rate of 15%.
(8) According to the Notice on Value-added Tax Policies for Software Products (C.S.H.G. [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
1222025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 2772.70 2584.78
Bank Balance 8222322901.12 10946929688.16
Other Cash and Bank Balances 223658913.88 234871150.89
Total 8445984587.70 11181803423.83
Including: Total Amount
1035601799.311423057560.40
Deposited in Overseas Banks
The details of monetary fund subject to usage restrictions due to mortgage pledge or freeze as well as those
restricted due to centralized management of funds and monetary fund held overseas with repatriation limitations are as
follows:
Unit: RMB
Item Closing Balance Balance at the end of theprevious year
Bid/performance bond 74154820.50 75635853.99
Frozen funds 33722034.78 31940849.28
Security deposit for bills 66196.00
Total 107943051.28 107576703.27
1232025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. Trading Financial Assets
Unit: RMB
Item Closing Balance Opening Balance
Financial assets at fair value through
108022303.02229927529.28
profit or loss in this period
Among them:
Financial products 81445103.02 80200959.64
Stock 26577200.00 149726569.64
Total 108022303.02 229927529.28
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
Item Closing Balance Opening Balance
Bank Acceptance Notes 531219747.79 636567044.09
Commercial Acceptance Notes 148211447.15 141183216.00
Total 679431194.94 777750260.09
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Amount Proportio
Accrued Book value Accrued Book value
n Amount proportio Amount
Proportio
n Amount proportion n
Notes
Receivable
with the Bad
Debt
Provision 719176146.0 100.00% 39744951.1 5.53% 679431194.9 797002021.68 4 4 9 100.00%
19251761.62.42%777750260.0
Accrued 0 9
Based on
Combination
s
Among them:
Bank
Acceptance 537298206.0 531219747.7 643969978.3 636567044.0
Notes 1
74.71%6078458.221.13%9080.80%7402934.211.15%9
Commercial
Acceptance 181877940.0 25.29% 33666492.9 18.51% 148211447.15 153032043.3 19.20% 11848827.39 7.74% 141183216.0
Notes 7 2 9 0
Total 719176146.0 100.00% 39744951.1 679431194.9 797002021.6 100.00% 19251761.6 777750260.08 4 4 9 0 9
Accrual of bad debt provisions by category name: bank and commercial acceptance notes
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Bank Acceptance Notes 537298206.01 6078458.22 1.13%
Commercial Acceptance
181877940.0733666492.9218.51%
Notes
Total 719176146.08 39744951.14
1242025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
Closing
Category Opening Balance Recovered or Written
Accrued Others Balance
Reversed Off
Bank
Acceptance 7402934.21 1318106.79 -6369.20 6078458.22
Notes
Commercial
Acceptance 11848827.39 21817665.53 33666492.92
Notes
Total 19251761.60 21817665.53 1318106.79 -6369.20 39744951.14
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 364241496.31
Total 364241496.31
(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
Derecognised amount at the end of Not derecognised amount at the end
Item
period of period
Bank Acceptance Notes 37489800.91
Total 37489800.91
4. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 13807187837.02 15089860120.54
1 to 2 years 1791968271.42 1830327585.83
2 to 3 years 933582848.30 934561606.86
1252025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
3 years or above 2613342051.58 2452808503.88
3 to 4 years 658408299.69 646840898.86
4 to 5 years 585061445.73 507603962.50
5 years or above 1369872306.16 1298363642.52
Total 19146081008.32 20307557817.11
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Category Book balance Bad debt provision Book balance Bad debt provision
Accrued Book value Book valueAmount Proportion Amount proportion Amount Proportion Amount
Accrued
proportion
Accounts
receivables
with the bad
debt
provision 279902616.07 1.46% 253571714.05 90.59% 26330902.02 180133348.24 0.89% 169137414.11 93.90% 10995934.13
accrued
based on
single item
Among them:
Accounts
receivable
with
insignificant
single
amount but 279902616.07 1.46% 253571714.05 90.59% 26330902.02 180133348.24 0.89% 169137414.11 93.90% 10995934.13
accrued for
separate
provision of
bad debt
Accounts
receivables
with the bad
debt
provision 18866178392.25 98.54% 3101873055.10 16.44% 15764305337.15 20127424468.87 99.11% 3092325884.21 15.36% 17035098584.66
accrued
based on
combinations
Among them:
Aging
Analysis 18866178392.25 98.54% 3101873055.10 16.44% 15764305337.15 20127424468.87 99.11% 3092325884.21 15.36% 17035098584.66
Portfolio
Total 19146081008.32 100.00% 3355444769.15 15790636239.17 20307557817.11 100.00% 3261463298.32 17046094518.79
By category of accrual for bad debt provision on individual items: accounts receivable with individually accrued bad
debt provisions where the individual amount is not material
Unit: RMB
Opening Balance Closing Balance
Name Reason forBad debt Bad debt Accrued
Book balance Book balance making bad
provision provision proportion
debt provision
Expected to be
Customer 1 20596426.50 20596426.50 20596426.50 20596426.50 100.00% unable to
recover
Expected to be
Customer 2 24805633.21 15805633.21 63.72% partially
unrecoverable
Expected to be
Customer 3 36676477.42 36676477.42 36676477.42 36676477.42 100.00% unable to
recover
Expected to be
Customer 4 49001963.55 49001963.55 48810663.55 48810663.55 100.00% unable to
recover
Other sporadic 73858480.77 62862546.64 149013415.39 131682513.37 88.37% Expected to be
1262025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
customers partially
unrecoverable
Total 180133348.24 169137414.11 279902616.07 253571714.05
Provision for bad debts by category name based on combination: aging analysis method combination
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
13805872855.75690415751.375.00%
year)
1 to 2 years 1773109024.87 177310902.49 10.00%
2 to 3 years 895267685.64 268580305.69 30.00%
3 to 4 years 643412506.87 321706253.43 50.00%
4 to 5 years 523282385.00 418625908.00 80.00%
5 years or above 1225233934.12 1225233934.12 100.00%
Total 18866178392.25 3101873055.10
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
Category Opening Balance Recovered or Closing Balance
Accrued Written Off Others
Reversed
Bad debt
3261463298.32158178036.296589549.256190747.01-51416269.203355444769.15
provision
Total 3261463298.32 158178036.29 6589549.25 6190747.01 -51416269.20 3355444769.15
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 6190747.01
Write-off of important accounts receivable:
None
1272025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(5) Accounts Receivable and Contract Assets of the Top Five Closing Balances Collected by
Debtors
Unit: RMB
Closing balance
As a
of provision for
Closing balance of percentage of
Accounts Closing balance bad debts on
accounts accounts
Name of Unit receivable closing of contract accounts
receivable and receivables and
balance assets receivable and
contract assets total ending
impairment of
balance
contract assets
Customer 1 582467307.95 582467307.95 3.02% 29123365.40
Customer 2 428390316.39 428390316.39 2.22% 21419515.82
Customer 3 409176173.26 3675609.05 412851782.31 2.14% 97938675.49
Customer 4 358063590.33 358063590.33 1.85% 17903179.52
Customer 5 307189195.82 307189195.82 1.59% 18468890.96
Total 2085286583.75 3675609.05 2088962192.80 10.82% 184853627.19
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 15846349.38 162528.83 15683820.55 25290931.34 361398.92 24929532.42
assets
O&M service 22118960.32 224569.61 21894390.71 7456278.33 75407.79 7380870.54
Quality
guarantee 53906246.72 8379436.03 45526810.69 66497257.70 11410143.57 55087114.13
deposit
Total 91871556.42 8766534.47 83105021.95 99244467.37 11846950.28 87397517.09
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Amount Proportion Amount Accrued Accruedproportion Amount Proportion Amount proportion
Provision of
bad debts
based on 91871556.42 100.00% 8766534.47 9.54% 83105021.95 99244467.37 100.00% 11846950.28 11.94% 87397517.09
combination
Among them:
Combination
of nature of 91871556.42 100.00% 8766534.47 9.54% 83105021.95 99244467.37 100.00% 11846950.28 11.94% 87397517.09
the funds
Total 91871556.42 100.00% 8766534.47 9.54% 83105021.95 99244467.37 100.00% 11846950.28 11.94% 87397517.09
1282025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Provision for Bad Debt by Category Name of Accrual Combination: Nature of Fund Combination
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Combination of nature of
91871556.428766534.479.54%
the funds
Total 91871556.42 8766534.47
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
Provisions of this Recovered or reversed Write-off in this Others
Item Reason
period during the period period
Completed but
unsettled assets 198870.09
O&M service 149161.82
Quality guarantee
deposit 3024676.16 -6031.38
Total 149161.82 3223546.25 -6031.38
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 774019955.88 841815267.43
Total 774019955.88 841815267.43
(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 501166960.99
Total 501166960.99
(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 165783795.40
Total 165783795.40
1292025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
7. Other Receivables
Unit: RMB
Item Closing Balance Opening Balance
Interest Receivable 669535.47
Other Receivables 578496093.60 293728850.42
Total 579165629.07 293728850.42
(1) Interest Receivable
1) Classification of Interest Receivable
Unit: RMB
Item Closing Balance Opening Balance
Demand deposit 669535.47
Total 669535.47
(2) Other Receivables
1) Other Receivables Categorized by the Nature of the Funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Equity Transfer Fund 372227799.10 31149666.32
Deposits 137886865.97 151154514.69
Prepaid or advance expense 108957765.47 122639225.03
Employee home loan 71663993.00 78949911.00
Others 348334.66 6034131.37
Export tax rebate 106247.36
Total 691084758.20 390033695.77
2) Disclosure by Aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 512049512.27 191651180.73
1 to 2 years 45042779.72 41084974.35
2 to 3 years 46678108.32 72462850.86
3 years or above 87314357.89 84834689.83
3 to 4 years 26915461.92 39666543.22
4 to 5 years 26890742.07 20632422.94
5 years or above 33508153.90 24535723.67
Total 691084758.20 390033695.77
3) Disclosure by Bad Debt Accrual Method
□Applicable □ Not applicable
1302025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB
Closing Balance Opening Balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book value
Amount Proportion Amount Accrued Amount Proportion Amount Accrued
Book value
proportion proportion
Provision of
bad debts
based on 691084758.20 100.00% 112588664.60 16.29% 578496093.60 390033695.77 100.00% 96304845.35 24.69% 293728850.42
combination
Among them:
Aging
Analysis 691084758.20 100.00% 112588664.60 16.29% 578496093.60 390033695.77 100.00% 96304845.35 24.69% 293728850.42
Portfolio
Total 691084758.20 100.00% 112588664.60 16.29% 578496093.60 390033695.77 100.00% 96304845.35 24.69% 293728850.42
Provision for bad debts by category name based on combination: aging analysis method combination
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
512049512.2725602475.615.00%
year)
1 to 2 years 45042779.72 4504277.97 10.00%
2 to 3 years 46678108.32 14003432.50 30.00%
3 to 4 years 26915461.92 13457730.96 50.00%
4 to 5 years 26890742.07 21512593.66 80.00%
5 years or above 33508153.90 33508153.90 100.00%
Total 691084758.20 112588664.60
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
44105647.9549487990.462711206.9496304845.35
January 1 2025
Balance as of
January 1 2025 in
this period
--Transfer to phase
-649729.79649729.79
two
--Transfer to phase
-71746.85-54910.17126657.02
three
Provisions of this
12277800.767764259.15138582.1020180642.01
period
Write off in this
55505.83251760.7995158.43402425.05
period
Other Variations -1827446.16 -1623951.55 -43000.00 -3494397.71
Balance as of June
53779020.0855971356.892838287.63112588664.60
302025
Book balance changes with significant changes in loss provision in the current period
□ Applicable □Not applicable
1312025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 orAccrued Others Balance
Reversed write-off
Bad debt 112588664.6
96304845.3520180642.01402425.05-3494397.71
provision 0
112588664.6
Total 96304845.35 20180642.01 402425.05 -3494397.71
0
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 402425.05
Write-off of other important receivables:
None
6) Other Receivables of the Top Five Closing Balances Collected by Debtors
Unit: RMB
As a percentage
of total other Bad debt
Nature of the
Name of Unit Closing Balance Aging receivables at provision at the
funds
the end of the end of the period
period
Equity Transfer
Company 1 351248137.00 Within 1 year 50.83% 17562406.85
Fund
Equity Transfer
Company 2 16149662.10 2-3 years 2.34% 4844898.63
Fund
Company 3 Deposits 11832000.00 4 to 5 years 1.71% 9465600.00
4–5 years RMB
Prepaid or
500000.00 over
Company 4 advance 5500000.00 0.80% 5400000.00
5 years RMB
expense
5000000.00
Equity Transfer
Company 5 4830000.00 1–2 years 0.70% 483000.00
Fund
Total 389559799.10 56.38% 37755905.48
1322025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
8. Prepayments
(1) Aging Analysis of Prepayments is as Follows
Unit: RMB
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 297706244.09 91.86% 276949733.43 89.17%
1 to 2 years 9188764.81 2.84% 15277764.29 4.92%
2 to 3 years 7655246.33 2.36% 9380618.43 3.02%
3 years or above 9530567.90 2.94% 8966750.94 2.89%
Total 324080823.13 310574867.09
(2) Advance Payment of the Top Five Closing Balances by Prepayment Parties
The total closing balance of the top five prepaid items aggregated by concentration of prepaid objects is RMB
197197914.73 accounting for 60.85% of the total closing balance of prepaid items.
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 Provision for Book value Book balance Provision for Book value
Impairment of Impairment of
Performance Performance
Cost Cost
Raw
2052529674.0680699375.081971830298.981775556159.2275056394.191700499765.03
materials
Work-in-
565954851.8711580657.14554374194.73460827771.3111280157.80449547613.51
progress
Finished
2334013140.4892369724.002241643416.482309288663.5978001025.542231287638.05
goods
Contract
Performance 612420503.34 18049049.88 594371453.46 623434238.29 19687088.95 603747149.34
Costs
Outsourced
work-in- 187618107.28 187618107.28 218478605.32 218478605.32
progress
Total 5752536277.03 202698806.10 5549837470.93 5387585437.73 184024666.48 5203560771.25
1332025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Provision for Impairment of Inventories and Provision for Impairment of Contract
Performance Cost
Unit: RMB
Increase amount for this
Decreased in the Current Period
period
Item Opening Balance Closing Balance
Reversals or
Accrued Others Others
write-offs
Raw materials 75056394.19 15779788.21 7076137.41 3060669.91 80699375.08
Work-in-
11280157.803719018.022132166.321286352.3611580657.14
progress
Finished
78001025.5426018257.295926739.395722819.4492369724.00
goods
Contract
Performance 19687088.95 312588.82 1950627.89 18049049.88
Costs
Total 184024666.48 45829652.34 17085671.01 10069841.71 202698806.10
10. Non-current Assets Due within 1 Year
Unit: RMB
Item Closing Balance Opening Balance
Long-term accounts receivables due
191608698.44237608641.30
within 1 year
Large-denomination certificates of
171760536.53
deposit maturing within one year
Total 363369234.97 237608641.30
11. Other Current Assets
Unit: RMB
Item Closing Balance Opening Balance
Input tax pending deduction 484651575.89 404856368.72
Prepaid enterprise income tax 28469981.11 36722593.44
Return cost receivable 17201538.38 12991543.19
National debt reverse repurchase 63672636.72 530974219.56
Large-denomination certificates of
deposit from banks (maturing within 50257291.67
one year)
Total 593995732.10 1035802016.58
1342025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
12. Long-term Receivables
(1) Long-term Receivables
Unit: RMB
Closing Balance Opening Balance Range
Item of
Book balance Bad debt provision Book value Book balance Bad debt discountprovision Book value rate
Installment
Payment for
Selling 694364970.00 7650120.31 686714849.69 752811851.80 8399299.80 744412552.00
Products
Including:
Unrealized
Financing 70647060.52 70647060.52 87118128.29 87118128.29
3.69%-
5.88%
Income
Total 694364970.00 7650120.31 686714849.69 752811851.80 8399299.80 744412552.00
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Category Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Accrued
Book value
Amount Proportion Amount Accrued
Book value
proportion proportion
Provision of
bad debts
based on 765012030.52 100.00% 7650120.31 1.00% 757361910.21 839929980.09 100.00% 8399299.80 1.00% 831530680.29
combination
Among them:
Combination
of nature of 765012030.52 100.00% 7650120.31 1.00% 757361910.21 839929980.09 100.00% 8399299.80 1.00% 831530680.29
the funds
Total 765012030.52 100.00% 7650120.31 1.00% 757361910.21 839929980.09 100.00% 8399299.80 1.00% 831530680.29
Provision for Bad Debt by Category Name of Accrual Combination: Nature of Fund Combination
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Combination of nature of
765012030.527650120.311.00%
the funds
Total 765012030.52 7650120.31
(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 orAccrued Others Balance
Reversed write-off
Bad debt
8399299.80749179.497650120.31
provision
Total 8399299.80 749179.49 7650120.31
Significant amount of recovered or reversed bad debt provision in this period:
None
1352025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
13. Long-term Equity Investments
Unit: RMB
Decrease/Increase in the current period
Opening Closing
Investment Cash
The invested Opening balance of Adjustment on Provision Closing balance of
entity balance (book provision Investments Investment
profit and loss other Other dividends or for balance (book provision
value) for increased decreased recognized comprehensive changes in profit impairment Others value) for decline
impairment under the income equity declared to accrued in valueequity method distribute
Ⅰ. Joint Ventures
II. Joint Venture
Intelbras S.A. 506921406.57 20781664.38 8215836.77 21639388.06 541126622.24
Ruicity Digital
Technology Co. 52803494.38 -5188896.11 47614598.27
Ltd.Guangdong
Zhishi Digital
Technology Co. -270680.40 270680.40
Ltd.Ningbo Huayan
Chuangxi Venture
Capital
Investment 67626764.60 663296.52 68290061.12
Partnership
(Limited
Partnership)
Dezhou Shuzhi
Information
Technology Co. 3598959.67 22114.93 3621074.60
Ltd.Sichuan Hengji
Anhua Internet of
Things 960255.07 -147032.33 813222.74
Technology Co.Ltd.Guangxi FTZ
Huaqin Wisdom
Park Technology 689082.81 -68455.55 620627.26
Research Institute
Co. Ltd.Ningbo Cida
Yongshun
Intelligent 1139404.79 -477468.00 661936.79
Technology Co.Ltd.Zhejiang
Huachuang
Vision Technology 88502200.68 -4290669.69 1538469.72 85750000.71
Co. Ltd.Shenzhen Aohua
Urban Operation
and Development -33590.18 33590.18
Co. Ltd.Rudong
Jintianhua
Security 900000.00 5272.10 905272.10
Technology Co.Ltd.Huahongchang
Intelligent
Technology -197176.13 197176.13
(Jiangsu) Co.Ltd.Subtotal 722241568.57 900000.00 10798379.54 1538469.72 8215836.77 22140834.77 749403415.83
Total 722241568.57 900000.00 10798379.54 1538469.72 8215836.77 22140834.77 749403415.83
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 38563656.86 42303530.71
Investment in financial products 1420493589.47 1232393960.16
Total 1459057246.33 1274697490.87
1362025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
15. Investment Properties
(1) Investment Properties Measured by Cost Method
□Applicable □ Not applicable
Unit: RMB
Item Buildings and constructions Total
Ⅰ. Original Book Value
1. Opening Balance 193163818.23 193163818.23
2. Increased in the Current Period 10376916.54 10376916.54
(1) Purchase 10316916.54 10316916.54
(2) Transfer of Fixed Assets\Intangible
60000.0060000.00
Assets
3. Decreased in the Current Period
(1) Disposal
(2) Other Transfer-out
4. Closing Balance 203540734.77 203540734.77
II. Accumulated Depreciation and Accumulated
Amortization
1. Opening Balance 53883231.97 53883231.97
2. Increased in the Current Period 4634172.36 4634172.36
(1) Accrual or Amortization 4629422.36 4629422.36
(2) Transfer of Fixed Assets\Intangible
4750.004750.00
Assets
3. Decreased in the Current Period
(1) Disposal
(2) Other Transfer-out
4. Closing Balance 58517404.33 58517404.33
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 Value 145023330.44 145023330.44
2. Opening Balance on Book Value 139280586.26 139280586.26
(2) Investment Properties Measured at Fair Value
□ Applicable □Not applicable
1372025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Investment Property With Certificate of Title Not Yet Completed
Unit: RMB
Reasons for Certificates of Title not
Item Book value
Granted
In the process of obtaining the real
Donghe Xingcheng Commercial 10276078.74
estate certificates
16. Fixed Assets
Unit: RMB
Item Closing Balance Opening Balance
Fixed Assets 5331558518.85 4973953628.05
Total 5331558518.85 4973953628.05
(1) Fixed Assets
Unit: RMB
Housing and Machinery and Electronic and other
Item Means of transport Total
building equipment equipment
Ⅰ. Original Book
Value:
1. Opening
4803607377.19642845153.1330163801.912363589952.657840206284.88
Balance
2. Increased in
589445930.7285515543.291390122.9570491692.34746843289.30
the Current Period
(1) Purchase 4705862.83 66949171.61 1390122.95 70491692.34 143536849.73
(2)
Transferred From
584740067.8918566371.68603306439.57
Construction in
Progress
(3) Acquisition
(4) Transfer of
Investment
Properties
3. Decreased
in the Current 56967202.75 22307403.13 1274953.87 61760851.36 142310411.11
Period
(1) Disposal or
56243.404892687.291182409.0527355220.6633486560.40
Scrapping
(2) Transfer to
Investment Real 60000.00 60000.00
Estate
(3) Disposal of
56850959.3517414715.8492544.8234405630.70108763850.71
Subsidiaries
4. Currency
Translation 419816.56 213876.88 432229.30 3886903.98 4952826.72
Difference
5. Closing
5336505921.72706267170.1730711200.292376207697.618449691989.79
Balance
1382025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
II. Accumulated
Depreciation
1. Opening
968032057.78262293553.7723251818.411612675226.872866252656.83
Balance
2. Increased in
124316006.2932305205.851533091.99145461944.81303616248.94
the Current Period
(1) Accrual 124316006.29 32305205.85 1533091.99 145461944.81 303616248.94
(2) Transfer of
Investment
Properties
3. Decreased
in the Current 3734439.14 6228753.49 1143436.37 44181910.56 55288539.56
Period
(1) Disposal or
57.814787623.641123288.5524285647.1330196617.13
Scrapping
(2) Transfer to
Investment Real 4750.00 4750.00
Estate
(3) Disposal of
3729631.331441129.8520147.8219896263.4325087172.43
Subsidiaries
4. Currency
Translation 125829.63 213905.63 365312.87 2848056.60 3553104.73
Difference
5. Closing
1088739454.56288583911.7624006786.901716803317.723118133470.94
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
Balance on Book 4247766467.16 417683258.41 6704413.39 659404379.89 5331558518.85
Value
2. Opening
Balance on Book 3835575319.41 380551599.36 6911983.50 750914725.78 4973953628.05
Value
1392025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Fixed assets Rent Out Under Operating Leases
Unit: RMB
Item Book Value at the End of the Period
Buildings and constructions 871055677.66
Electronic and other equipment 33451296.14
(3) Fixed Assets with Certificates of Title Not Granted
Unit: RMB
Reasons for certificates of title not
Item Book value
granted
In the process of obtaining the real
Chengdu R&D center 351218402.58
estate certificates
In the process of obtaining the real
Zhengzhou Park 194045126.84
estate certificates
In the process of obtaining the real
Wuzhou Building in Guangxi 36373361.04
estate certificates
(4) Impairment Test of Fixed Assets
□ Applicable □Not applicable
17. Construction in Progress
Unit: RMB
Item Closing Balance Opening Balance
Projects under Construction 850146152.40 1254554187.36
Total 850146152.40 1254554187.36
(1) Construction in Progress
Unit: RMB
Closing Balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
New project of
Southwest R&D
322402380.64322402380.64
Center of Dahua
Co. Ltd.New projects of
Southwestern
389174412.74389174412.74386439622.10386439622.10
China Operation
Center of Dahua
Henan Smart
IoT base of 168946600.69 168946600.69
Dahua
Construction
project of Dahua 443624987.89 443624987.89 341740284.37 341740284.37
intelligent
1402025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
products
manufacturing
base
Others 17346751.77 17346751.77 35025299.56 35025299.56
Total 850146152.40 850146152.40 1254554187.36 1254554187.36
(2) Changes in Significant Construction in Progress
Unit: RMB
Amount of fixed Other Project
Including:
Increase assets amounts accumulative Accumulated
capitalized Capitalization
Item Name Budget Opening Balance amount for this transferred in decreased Closing Balance investment Project capitalized
interest rate of the
as a Progress interest amount in interest in the
Capital
period the current in current the current Source
period period percentage amountof the budget current periodperiod
New project
of Southwest RMB Equity
R&D Center 417 322402380.64 35907573.09 358309953.73 93.59% 100.00% funds/raisedof Dahua Co. million funds
Ltd.New projects
of
Southwestern RMB
China 396 386439622.10 2734790.64 389174412.74 107.01% 99.00% Equity fund
Operation million
Center of
Dahua
Construction
project of
Dahua RMB
intelligent 600 341740284.37 443624987.89 80.59% 80.59% Equity fund
products million 101884703.52
manufacturing
base
Total 1050582287.11 140527067.25 358309953.73 832799400.63
(3) Impairment Test of Construction in Progress
□ Applicable □Not applicable
18. Right-of-use Assets
(1) Right-of-use Assets
Unit: RMB
Item Buildings and Machinery andconstructions equipment Total
Ⅰ. Original Book Value
1. Opening Balance 515887254.07 8996601.81 524883855.88
2. Increased in the Current Period 77853660.22 77853660.22
(1) Leased During this Period 77853660.22 77853660.22
3. Decreased in the Current Period 149700808.51 149700808.51
(1) Expiration or Early Termination of 138836058.97 138836058.97
Lease Contracts
(2) Disposal of Subsidiaries 10864749.54 10864749.54
4. Currency Translation Difference 12588190.42 12588190.42
5. Closing Balance 456628296.20 8996601.81 465624898.01
1412025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
II. Accumulated Depreciation
1. Opening Balance 289890128.13 2869449.89 292759578.02
2. Increased in the Current Period 74353866.96 472222.32 74826089.28
(1) Accrual 74353866.96 472222.32 74826089.28
3. Decreased in the Current Period 133355293.06 133355293.06
(1) Expiration or Early Termination of 125307264.54 125307264.54
Lease Contracts
(2) Disposal of Subsidiaries 8048028.52 8048028.52
4. Currency Translation Difference 5232827.41 5232827.41
5. Closing Balance 236121529.44 3341672.21 239463201.65
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 Value 220506766.76 5654929.60 226161696.36
2. Opening Balance on Book Value 225997125.94 6127151.92 232124277.86
(2) Impairment Test of Right-to-use Assets
□ Applicable □Not applicable
19. Intangible Assets
(1) Details of Intangible Assets
Unit: RMB
Non-patented Software
Item Land use rights Software Total
technology copyright
Ⅰ. Original Book Value
1. Opening Balance 629977655.56 68560225.68 191930081.04 4000000.00 894467962.28
2. Increased in the 96503.06 2075305.20 8367132.58 10538940.84
Current Period
(1) Purchase 96503.06 2075305.20 5682019.38 7853827.64
(2) Internal Research
And Development
(3) Acquisition
(4) Construction in 2685113.20 2685113.20
Progress Transferred in
(5) Transfer of
Investment Properties
3. Decreased in the 240000.00 25921250.57 26161250.57
Current Period
1422025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Disposal 240000.00 19933908.11 20173908.11
(2) Transfer to
Investment Real Estate
(3) Disposal of 5987342.46 5987342.46
Subsidiaries
4. Currency Translation 43835.00 71577.87 115412.87
Difference
5. Closing Balance 630117993.62 70395530.88 174447540.92 4000000.00 878961065.42
II. Cumulative Amortization
1. Opening Balance 84725147.08 62737857.37 164969519.24 4000000.00 316432523.69
2. Increased in the 7034364.36 575785.71 11381645.94 18991796.01
Current Period
(1) Accrual 7034364.36 575785.71 11381645.94 18991796.01
(2) Transfer of
Investment Properties
3. Decreased in the 89461.56 22130088.68 22219550.24
Current Period
(1) Disposal 89461.56 19930061.96 20019523.52
(2) Transfer to
Investment Real Estate
(3) Disposal of 2200026.72 2200026.72
Subsidiaries
4. Currency Translation 74050.95 74050.95
Difference
5. Closing Balance 91759511.44 63224181.52 154295127.45 4000000.00 313278820.41
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 538358482.18 7171349.36 20152413.47 565682245.01
Book Value
2. Opening Balance on 545252508.48 5822368.31 26960561.80 578035438.59
Book Value
Intangible assets formed through in-house research and development at the end of the period are 0.00% of 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
1432025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
20. Goodwill
(1) Original Book Value of Goodwill
Unit: RMB
Increased in the current Decreased in the current
The invested entity period period
Opening Closing
or matters which
Balance Generated from Balance
formed goodwill business Disposal
combination
Dahua Technology
6615294.186615294.18
Italy S.R.L.Total 6615294.18 6615294.18
(2) Impairment Provision for Goodwill
Unit: RMB
The invested Increased in the current period Decreased in the current period
entity or matters Opening Closing
which formed Balance Accrued Disposal Balance
goodwill
Dahua
Technology Italy 0.00 0.00
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 Operational subsection and
Name with the
group or its combination basis
previous year
The asset group related to the goodwill
Recognition is based on
arising from the acquisition of Dahua
whether the main cash
Technology Italy S.R.L. refers to the
Dahua Technology Italy inflow generated is
various long-term asset groups of Yes
S.R.L. independent of other asset
Dahua Technology Italy S.R.L. as of
groups or their
June 30 2025 including fixed assets
combinations.intangible assets and others.
(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
1442025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB
Number of Determination
Key
years of Key parameters basis of key
Recoverable Impairment parameters of
Item Book value the of the forecast parameters in
amount amount the steady
forecast period the steady
period
period period
Predict
Revenue growth Revenue
cautiously as
rate of 8%-10% growth rate of
Dahua the income
over the 0% over the
Technology 142189100.94 201508685.05 2025-2029 will not
forecast period; steady period;
Italy S.R.L. increase in
discount rate of discount rate
the steady
15.60% of 15.60%
period.Total 142189100.94 201508685.05
21. Long-term Deferred Expenses
Unit: RMB
Prepaid
Increase amount Other Amounts
Item Opening Balance Expenses in This Closing Balance
for this period Decreased
Period
Improvement
expenditure of
fixed assets 45238803.07 9931226.40 21757442.56 -1413103.47 34825690.38
leased by
operating lease
Renovation Cost 54171602.35 4106734.74 11849276.41 22898.36 46406162.32
Total 99410405.42 14037961.14 33606718.97 -1390205.11 81231852.70
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
3104870769.92577036831.563025825450.60562296401.85
Impairment of Assets
Unrealized Profit
from Internal 652284056.29 137896324.84 541607785.16 111639987.98
Transactions
Deductible Losses 849507760.38 133063159.89 1920226766.23 291618935.89
Expected Liabilities 231032170.83 41128183.10 213777948.61 36535893.26
Payroll payable 249012406.78 40783261.04 252223316.91 41492918.94
Costs from Tax
Increase Due to 517465330.77 100890776.92 583649029.08 112966247.86
Absence of Invoice
Changes in fair value
3733125.73559968.863733125.73559968.86
gains and losses
Book-tax difference
95660116.9116794412.70144796421.8827085343.71
of lease liabilities
1452025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Investments in non-
439655489.4565948323.42466573172.4869985975.87
monetary assets
Others 97913946.20 15394993.71 113506566.35 18209927.86
Total 6241135173.26 1129496236.04 7265919583.03 1272391602.08
(2) Non-offset Deferred Income Tax Liabilities
Unit: RMB
Closing Balance Opening Balance
Item Taxable temporary Deferred income Taxable temporary Deferred income tax
difference tax liabilities difference liabilities
The gross profit of sales
49594199.378572770.9152101542.998882673.02
by installments
Changes in fair value
415032006.0062254800.90335149352.8050272402.92
gains and losses
Book-tax difference of
89762227.7115740865.36139677335.2326194630.77
right-of-use assets
Investments in non-
215410998.7832311649.82323116498.2048467474.73
monetary assets
Others 12745618.82 1911842.82 12316682.73 1847502.41
Total 782545050.68 120791929.81 862361411.95 135664683.85
(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
120791929.811008704306.23135645521.631136746080.45
assets
Deferred income tax
120791929.81135645521.6319162.22
liabilities
(4) Deferred Income Tax Assets Or Liabilities Listed by Net Amount After Offset
Unit: RMB
Item Closing Balance Opening Balance
Deductible temporary difference 686680439.64 601482814.06
Deductible Losses 2003705230.52 2023883256.99
Total 2690385670.16 2625366071.05
(5) Details of Unrecognized Deferred Income Tax Assets
Unit: RMB
Year Closing Balance Opening Balance Notes
2025186067751.77213836146.31
2026342703663.91348424975.65
2027383914759.08498989378.85
1462025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2028408341579.04449525076.81
202995737908.59116634608.22
The year 2030 and beyond 586939568.13 396473071.15
Total 2003705230.52 2023883256.99
23. Other Non-current Assets
Unit: RMB
Closing Balance Opening Balance
Item
Book balance Impairmentprovision Book value Book balance
Impairment
provision Book value
Large-
denomination
certificates of 5508581233.05 5508581233.05 4203178761.72 4203178761.72
deposit from
banks
Contract
assets 66745616.06 5878746.96 60866869.10 83145926.80 5446542.16 77699384.64
Prepayments
for purchase
of 28344288.53 28344288.53 37521356.48 37521356.48
engineering
equipments
Contract
Acquisition 7137938.66 7137938.66 7585925.51 7585925.51
Costs
Prepayments
for 14034559.00 14034559.00 1791480.71 1791480.71
acquisition of
real estate
Others 119066.42 119066.42
Total 5624962701.72 5878746.96 5619083954.76 4333223451.22 5446542.16 4327776909.06
24. Assets whose Ownership or Rights to Use is Restricted
Unit: RMB
Item Book Value at the Opening Balance Type of Restriction Restrictions
End of the Period on Book Value
Guarantee letter security
Cash and bank 107943051.28 107576703.27 deposit and other restricted Restricted use
balances
funds
Pledged notes used for
Notes receivable issuing banker's acceptance
and receivables 898323101.98 987102426.21 endorsed or discounted but Restricted use
financing not yet matured or
terminated and recognized
Financial discount and
Accounts
1461555.02 factoring not derecognised in Restricted use
receivable
the supply chain
Fixed assets rented out
Fixed Assets 904506973.80 787890801.32 Restricted use
under operating leases
Total 1912234682.08 1882569930.80
1472025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
25. Short-term Loans
(1) Categories of Short-term Loan
Unit: RMB
Item Closing Balance Opening Balance
Pledged loans 500000000.00 995000000.00
Factoring loans in the supply chain
1579505.58
finance
Total 501579505.58 995000000.00
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) At the end of this period the Group had no overdue short-term loans.
26. Trading Financial Liabilities
Unit: RMB
Item Closing Balance Opening Balance
Transactional financial liabilities 3784147.07 4268603.52
Among them:
Derivative financial liability 586892.89 1058039.73
Contingent consideration 3197254.18 3210563.79
Total 3784147.07 4268603.52
27. Notes Payable
Unit: RMB
Types Closing Balance Opening Balance
Commercial acceptance bill 1695629406.26 2189843859.93
Bank acceptance bill 1155387510.59 1410130382.09
Total 2851016916.85 3599974242.02
28. Accounts Payable
(1) Details of Accounts Payable
Unit: RMB
Item Closing Balance Opening Balance
Payment for purchase of materials 5015650461.52 5514821691.83
Payment for engineering equipments 303179317.99 363155169.30
Total 5318829779.51 5877976861.13
1482025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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
Other payables 440276175.28 614061999.82
Total 440276175.28 637013560.05
(1) Dividends Payable
Unit: RMB
Item Closing Balance Opening Balance
Equity Incentive Restricted Stock
22951560.23
Dividend
Total 22951560.23
(2) Other Payables
1) Other Payables Listed by Nature Of Funds
Unit: RMB
Item Closing Balance Opening Balance
Temporarily borrowed and advance
275282051.88316774319.18
payments
Deposits 120832454.75 130208683.89
Others 44161668.65 22383683.39
Restricted share repurchase
144695313.36
obligations
Total 440276175.28 614061999.82
2) Other Significant Accounts Payable with Aging Over 1 Year Or Overdue
No significant other payables with aging over 1 year or overdue
30. Contract Liabilities
Unit: RMB
Item Closing Balance Opening Balance
Payments for sales of goods 280179657.35 367888058.92
Pre-payments from construction
504104282.56512577027.01
projects
Sales of points 22044936.16 29975336.23
Service expense collected in
62666.23371763926.59
advance
Total 806391542.30 1282204348.75
1492025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
1801465071.643160299424.834075807698.31885956798.16
Remuneration
II. Post-Employment
Benefits –
7193487.63283741056.68281857236.539077307.78
Establishment of
Contribution Plan
III. Dismissal Welfare 2394649.65 43746015.83 46121127.76 19537.72
Total 1811053208.92 3487786497.34 4403786062.60 895053643.66
(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 1504317660.94 2680038171.40 3615775292.61 568580539.73
and Subsidies
2. Staff Welfare 56184693.83 56184693.83
3. Social Insurance
2268494.56158431527.04157731925.452968096.15
Contributions
Including: medical
2144762.22150653773.47150233890.072564645.62
insurance
Work injury
111462.727069394.176780887.86399969.03
insurance premium
Maternity
12269.62708359.40717147.523481.50
insurance fee
4. Housing Funds 1681808.82 221907972.94 223441769.69 148012.07
5. Labor Union and
293197107.3243737059.6222674016.73314260150.21
Education Funds
Total 1801465071.64 3160299424.83 4075807698.31 885956798.16
(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
6511573.90271457250.91269792206.868176617.95
Insurance
2. Unemployment
681913.7312283805.7712065029.67900689.83
Insurance
Total 7193487.63 283741056.68 281857236.53 9077307.78
1502025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
32. Taxes and Fees Payable
Unit: RMB
Item Closing Balance Opening Balance
VAT 197677558.13 196774063.10
Enterprise Income Tax 121899263.93 108441794.06
Personal income tax 19960619.49 37096806.99
Urban Maintenance and Construction
10860896.5712215258.91
Tax
Education surcharges (including local
7712368.938733186.86
education surcharges)
Property tax 17944062.77 30548302.26
Stamp duty 5985264.72 6307924.45
Others 16434340.89 5742985.00
Total 398474375.43 405860321.63
33. Non-current Liabilities Due Within One Year
Unit: RMB
Item Closing Balance Opening Balance
Lease liabilities due within 1 year 93778798.09 117227812.08
Total 93778798.09 117227812.08
34. Other Current Liabilities
Unit: RMB
Item Closing Balance Opening Balance
To-be-transferred sales taxes in
22852831.2628016863.95
installments
To-be-transferred sales taxes of
79484042.2190175362.12
contract liabilities
Notes not derecognised 37489800.91 41959304.16
Total 139826674.38 160151530.23
35. Lease Liabilities
Unit: RMB
Item Closing Balance Opening Balance
Lease payments 238780346.78 245019254.27
Deduct: Unrecognized financing
16359966.2513477634.78
costs
Lease liabilities due within 1 year 93778798.09 117227812.08
Total 128641582.44 114313807.41
1512025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
36. Estimated Liabilities
Unit: RMB
Item Closing Balance Opening Balance Causes
Pending litigation 68097548.13 64828324.97 Pending litigation
Others 1871191.06 2674923.66 Loss-making contract
Expected after-sales 197836134.63 180635396.82
After-sales maintenance
maintenance cost
Expected return amount 25909521.01 20056045.79
Expected sales return
after the period
Total 293714394.83 268194691.24
37. Deferred Income
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance Causes
current period current period
Received
Government government
181225246.292360166.008635219.36174950192.93
subsidies subsidies related
to assets
Received
Government government
4955766.701371100.006326866.70
subsidies subsidies related
to income
Total 186181012.99 3731266.00 14962086.06 174950192.93
38. Other Non-current Liabilities
Unit: RMB
Item Closing Balance Opening Balance
To-be-transferred sales taxes in
81013656.3088891691.43
installments
Others 13372397.59 13372397.59
Total 94386053.89 102264089.02
39. Share Capital
Unit: RMB
Increased or decreased amount in this period (+/-)
Shares
Opening Balance Shares newly Bonus converted Closing Balance
Others Subtotal
issued shares from capital
reserves
Total - -
3295629733.007757481.003282842254.00
shares 20544960.00 12787479.00
1522025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Other notes:
(1) Pursuant to the resolution of the 11th Meeting of the Eighth Board of Directors held on March 28 2025 and the
amended Articles of Association as approved by the 2024 Annual General Meeting the Company repurchased
20544960 restricted shares previously granted to ineligible incentive recipients (due to unmet performance-based
conditions for releasing from restricted sale and the departure of incentive recipients). This resulted in a reduction of
registered capital by RMB 20544960.00. The registered capital after the change is RMB 3271789350.00. The
above capital reduction has been verified by Verification Report Lixin Accounting Report [2025] No. ZF11079 issued
by BDO China Shu Lun Pan CPAs (special general partnership). The registration filed with Administration for Industry
and Commerce was completed in June 2025 by the Company.
(2) According to the resolution on the "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 2022 Stock Option and Restricted Share Incentive Plan
have been met. As of June 30 2025 employees have voluntarily exercised a total of 11052904 shares including
7757481 shares exercised from January to June 2025 resulting in an increase in registered capital of RMB
11052904.00. The revised registered capital is RMB 3282842254.00. Among these shares 2250192 underwent
industrial and commercial registration changes in June 2025 while the remaining 8802712 shares are pending such
registration.
40. Capital Reserve
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
Capital premium
6929139615.49133753550.17153644857.046909248308.62
(capital share premium)
Other capital reserves 227627620.37 57801728.61 32571211.03 252858137.95
Total 7156767235.86 191555278.78 186216068.07 7162106446.57
Other notes including increases or decreases in this period and their reasons:
(1) The company recognized employee service amounts of RMB 56149578.87 in this period through share-based
payment increasing capital reserve (other capital reserve) by RMB 56149578.87; the portion of share-based
payment settled in equity attributable to minority shareholders was RMB 15736440.75 which decreased capital
reserve (other capital reserve) by RMB 9212297.65 and decreased capital reserve (stock premium) by RMB
6524143.10.
(2) Share-based payments of RMB 23358913.38 arising from employees of the Company and subsidiaries acquiring
equity in Huacheng Network via capital increases or direct/indirect share transfers. Following the Company's disposal
of its equity interest in Huacheng Network during the period this amount was reclassified from capital reserve (other
capital reserves) to capital reserve (stock premium).
(3) During this period the company repurchased and canceled 20544960 restricted shares held by equity incentive
recipients that had been granted but not yet unlocked reducing the share capital by RMB 20544960.00 and
decreasing the capital reserve (stock premium) by RMB 147101913.60.
1532025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(4) The company's stock option and restricted share incentive plan for 2022 reached the exercise conditions for the
second exercise period. From January to June 2025 employees voluntarily exercised a total of 7757481 shares
increasing the capital reserve (stock premium) by RMB 110338928.17.
(5) During this period under the equity method the company's share of changes in other owners' equity of joint
ventures increased other capital reserve by RMB 1538469.72.
(6) Transaction costs of RMB 18800.34 related to the Company's share repurchases and employee option exercises
during the period decreasing capital reserve (stock premium) by RMB 18800.34.
(7) Some employees of the company indirectly acquired part of the equity of Zhejiang Huanuokang Technology Co.
Ltd. which is controlled by the actual controller involving share-based payment. The related share-based payment
expenses are recorded as capital investment and included in the capital reserve (other capital reserve) in the amount
of RMB 113680.02.
(8) During this period the minority shareholders of subsidiaries reduced capital and withdrew shares resulting in a
total increase of capital reserve (stock premium) of RMB 55708.62.
41. Treasury Share
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
Restricted shares 144695313.36 22951560.24 167646873.60
Share repurchase 419959211.27 103413104.00 523372315.27
Total 564654524.63 126364664.24 167646873.60 523372315.27
Other notes including increases or decreases in this period and their reasons:
(1) During this period the company repurchased 20544960 granted but unvested restricted shares reducing share
capital by RMB 20544960.00 reducing capital reserve (stock premium) by RMB 147101913.60 and simultaneously
reducing the corresponding treasury share amount by RMB 167646873.60.
(2) During this period the company repurchased granted but unlocked restricted shares. The escrowed cash dividends
corresponding to the unlocked portion were recovered increasing the treasury share balance by RMB 22951560.24.
(3) The company repurchased 6652200 shares during this period with a total repurchase cost of RMB
103424006.73 (including transaction fees of RMB 10902.73) increasing treasury shares by RMB 103413104.00.
1542025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
42. Other Comprehensive Incomes
Unit: RMB
Amount Occurred in the Current Period
Less: recorded Less: Recorded
into other into other
Opening Before tax comprehensive comprehensive Less:Item incomes in incomes in Income Attributable to
Attributable to
Balance Closing Balancebalance in this previous period previous period Tax the Company
the minority
period shareholdersand transferred to and transferred to Expense after tax after tax
P/L in current retained income in
period current period
Other
Comprehensive
Income That
Will Be 104358460.57 26714704.30 -1571062.86 27346089.38 939677.78 131704549.95
Reclassified
into P/L
Including:
Foreign
currency
financial 104358460.57 26714704.30 -1571062.86 27346089.38 939677.78 131704549.95
statement
translation
difference
Other
comprehensive 104358460.57 26714704.30 -1571062.86 27346089.38 939677.78 131704549.95
income total
43. Surplus Reserves
Unit: RMB
Increased in the Decreased in the
Item Opening Balance Closing Balance
current period current period
Statutory surplus
1647814866.501647814866.50
reserve
Total 1647814866.50 1647814866.50
44. Undistributed Profits
Unit: RMB
Item Current Period Previous Period
Undistributed Profit before
Adjustment at the End of Previous 24388130399.78 23334051186.55
Period
Undistributed Profit after Adjustment
24388130399.7823334051186.55
at the Start of the Period
Add: net profit attributable to parent
2475566750.611809589445.46
company's owner in current period
Less: Payable Dividends on Ordinary
1492529280.191250916066.59
Shares
Add: Common stock dividends
corresponding to repurchase and 22951560.24 1991951.67
cancellation of restricted stocks
Undistributed Profit at the End of the
25394119430.4423894716517.09
Period
1552025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
45. Operating Revenue and Operating Cost
(1) Operating Revenue and Operating Cost
Unit: RMB
Amount Occurred in the Current Period Amount for the previous period (restated)
Item
Income Cost Income Cost
Main Business 14968260816.53 8715558661.71 14675102571.72 8651658032.03
Other businesses 213068834.60 148966856.98 191519998.09 131063986.64
Total 15181329651.13 8864525518.69 14866622569.81 8782722018.67
(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 11740932998.53 6589674115.39
Including: software business 767210890.41 252290758.12
Innovated businesses 3022964624.87 1919520426.76
Others 417432027.73 355330976.54
Total 15181329651.13 8864525518.69
(3) Information Related to Operating Revenue and Operating Cost (by Region)
Unit: RMB
Amount Occurred in the Current Period
Item
Income Cost
Domestic 7553259609.99 4866160607.15
Overseas 7628070041.14 3998364911.54
Total 15181329651.13 8864525518.69
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
1562025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 41025980.71 34216090.98
Tax
Education surcharges (including local 29259041.46 24448111.04
education surcharges)
Property tax 26572371.68 24162703.22
Land usage tax 4019420.15 3996864.82
Vehicle and vessel use tax 17981.42 15824.33
Stamp duty 10981169.68 10090486.54
Others 1962755.18 3198951.94
Total 113838720.28 100129032.87
47. Administrative Expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 361296116.54 310623600.96
Depreciation cost and asset
72114240.9075634078.38
amortization
Administrative expenses 38716283.75 41738913.30
Consumables and service fees 16280910.24 14240718.82
Knowledge resource fee 33019620.16 35685104.17
Transportation and vehicle expenses 1806573.99 1794847.11
Traveling expense 5974900.96 7459433.57
Business entertainment 8020335.93 8780555.32
Others 17453221.10 15524270.68
Total 554682203.57 511481522.31
48. Sales Expenses
Unit: RMB
Amount Occurred in the Current Amount for the previous period
Item
Period (restated)
Labor cost 1377377320.10 1383654857.01
Consumables and service fees 113720833.10 137607948.55
Transportation and vehicle expenses 23888020.91 24464085.01
Marketing expense 194071106.82 182436171.43
Administrative expenses 86075868.80 79562552.00
Traveling expense 122407779.64 124821718.90
Business entertainment 84748855.54 113613780.43
Taxation and insurance expense 19954025.51 27288783.48
Communication expense 14296073.07 11837005.99
1572025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Knowledge resource fee 21281671.69 23119819.74
Depreciation cost and asset
86258462.4889988383.91
amortization
Others 19402091.77 18545009.52
Total 2163482109.43 2216940115.97
49. R&D Expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 1733489686.05 1678439697.04
Research consumables and service
86978618.7080309482.62
fees
Depreciation cost and asset
82602799.0672770371.24
amortization
Traveling expense 23404093.89 24015489.48
Administrative expenses 20292959.24 18949458.84
Communication expense 29202308.18 16874102.17
Others 8434957.98 9971559.51
Total 1984405423.10 1901330160.90
50. Financial Expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Interest expense -15628113.44 28989823.89
Including: Interest expenses on lease
5334929.026617980.91
liability
Less: interest income 153226904.60 236240691.12
Exchange gains and losses -251654553.85 -53117693.40
Others 12224138.97 10556921.90
Total -408285432.92 -249811638.73
51. Other Incomes
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Sources of other incomes
Period Period
Government subsidies 506967550.43 498234879.66
Input tax credits 1175207.66 5067660.66
Handling fee for withholding tax of
8875210.606894163.10
personal income
Others 1885107.24 16150.00
Total 518903075.93 510212853.42
1582025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 -106293552.37 -61522549.01
Including: gains from changes at
fair value of derivative financial 384471.06
instruments
Transactional financial liabilities 471146.84 1845682.12
Other Non-current Financial Assets 185399363.64 -100305121.85
Total 79576958.11 -159981988.74
53. Investment Income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Long-term equity investment income
10798379.5416910626.79
measured by equity method
Investment income from disposal of
484487619.90104164254.70
long-term equity investment
Investment income from trading
financial assets during the holding 45000.00 1243275.00
period
Investment income from disposal of
109943346.5418218788.90
trading financial assets
Gain on debt restructuring -7664077.54 -70000.00
Investment income of other non-
current financial assets during the -49372.45 26592.41
holding period
Investment income from national
1203179.63308062.29
debt reverse repurchase
Profits from recognition termination of
-958424.58-685702.55
financial assets
Total 597805651.04 140115897.54
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 -20499558.74 7372316.14
Bad debt losses of accounts
-155091122.96-217728284.41
receivable
Bad debt losses of other receivables -20180642.01 -5651673.92
Bad debt losses of long-term
1228191.401782633.40
receivables
Total -194543132.31 -214225008.79
1592025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 -45787863.18 -56827215.84
performance cost
II. Impairment Losses on Contract
2634658.521980179.61
Assets
Total -43153204.66 -54847036.23
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 -188828.42 647996.83
Income from the disposal of right-of-
769849.81438548.26
use assets
Total 581021.39 1086545.09
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-
1218663.351393292.311218663.35
current asset retirement
Others 5195968.76 5010673.16 5195968.76
Total 6414632.11 6403965.47 6414632.11
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
Gains and losses of non- 922191.16 1754193.37 922191.16
current asset retirement
Donations 1617531.25 478287.26 1617531.25
Water conservancy fund 297125.47 286144.98
Others 2173377.84 539289.89 2173377.84
Total 5010225.72 3057915.50 4713100.25
1602025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 156792890.96 -121751030.82
Deferred income tax expense 113777854.98 87912569.72
Total 270570745.94 -33838461.10
(2) Adjustment Process of Accounting Profit and Income Tax Expenses
Unit: RMB
Item Amount Occurred in the Current Period
Total Profit 2869255884.87
Income tax expense calculated at statutory/applicable tax
430388382.73
rate
Impact by applying different tax rates to subsidiaries 15085748.15
Impact of income tax before adjustment in this period 5348364.62
Impact of Non-taxable Revenue 2495589.41
Impact of the non-deductible costs expenses and losses 16501064.88
Impact of Deductible Losses from Unrecognized Deferred
-4808491.46
Income Tax Assets in the Previous Period
Impact of Deductible Temporary Difference or Deductible
Losses from Unrecognized Deferred Income Tax Assets 53962436.16
in the Current Period
Impact of additional deduction of the research and
-261950073.93
development expenses
Others 13547725.38
Income tax expense 270570745.94
60. Other Comprehensive Incomes
See Note 42 for details
1612025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
61. 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 69481743.35 199590797.33
Government subsidies 522070630.37 496784769.49
Deposits 92407811.47 17649724.47
Incomings and outgoings and
33070002.00
advances
House rent 34020762.37 43724182.75
Others 15276793.68 10316091.98
Total 766327743.24 768065566.02
Other cash payments relating to operating activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Administrative expenses 185056377.42 178852211.19
Communication expense 46116351.64 39942196.27
Business entertainment 91177331.88 118487887.89
Traveling expense 154481450.46 164300108.89
Marketing expense 208035252.34 209186545.09
Transportation and vehicle expenses 38393909.71 32067105.82
Knowledge resource fee 72023450.87 77707893.01
Research and development
consumption and external inspection 45306759.18 40064926.81
fee
Taxation and insurance expense 23432241.72 26894680.80
Deposits 103892122.95 22640806.33
Incomings and outgoings and
9496891.7734343604.95
advances
Consumables and service fees 155159472.69 142226682.97
Others 23813774.64 24572155.78
Total 1156385387.27 1111286805.80
(2) Cash Relating to Investing Activities
Other cash receipts relating to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Receipts of cash from forward
4715470.2810722864.17
exchange contracts
Recovered frozen funds relating to
5307995.26
the investment
Net cash paid for acquisition of
7763130.61
subsidiaries
Total 4715470.28 23793990.04
1622025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Significant cash received related to investing activities:
None
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
11985885.00429000.00
contracts
Paid frozen funds relating to the
4969155.52
investment
Net cash paid for disposal of
30999713.31
subsidiaries
Total 42985598.31 5398155.52
Significant cash payments related to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Investment income from national
7466430095.9211318040.40
debt reverse repurchase.Purchase of large-denomination
1575729577.193813937125.38
certificates of deposit
Total 9042159673.11 3825255165.78
(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
Leasing fees paid 85662950.34 75803609.32
Listing fees 79829.52 400000.00
Cash paid for purchasing minority
39396901.68
equity
Repurchase of restricted shares 167646873.60 17418988.80
Repurchase of outstanding shares 103424006.73
Others 5750.49
Total 356819410.68 133019499.80
Changes in liabilities arising from financing activities
□Applicable □ Not applicable
1632025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB
Increased in the current period Decreased in the current period
Closing
Item Opening Balance Changes in Non-cash Non-cash
Changes in cash Balance
cash changes changes
Short-term
995000000.00701579505.581195000000.00501579505.58
loan
Dividends
22951560.231492529280.191492529280.1922951560.23
Payable
Lease liability
(including
lease liabilities 231541619.49 72797968.24 81919207.20 222420380.53
due within one
year)
Other
payables
(restricted
144695313.3622951560.24167646873.60
share
repurchase
obligations)
Total 1394188493.08 701579505.58 1588278808.67 2937095360.99 22951560.23 723999886.11
62. Supplementary Information on 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 2598685138.93 1863377131.18
Add: provision for impairment of
237696336.97269072045.02
assets
Depreciation of fixed assets
oil and gas assets productive 308245671.30 302933957.40
biological assets
Depreciation of Right-of-use
74826089.2874358048.95
Assets
Amortization of Intangible
18991796.0122159273.95
Assets
Long-term deferred expense
33606718.9733099276.14
amortization
Losses on disposal of fixed
assets intangible assets and other
-581021.39-1086545.09
long-term assets (mark "-" for
incomes)
Losses on scrapping of fixed
-296472.19360901.06
assets (mark "-" for incomes)
Losses on fair value changes
-79576958.11159981988.74
(mark "-" for incomes)
Financial expenses (mark "-" -240948767.29 -24127869.51
1642025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
for incomes)
Losses on investment (mark "-
-606428153.16-140871600.09
" for incomes)
Decrease on deferred income
128041774.2296812204.14
tax assets (mark "-" for increases)
Increase on deferred income
-19162.22-70924.28
tax liabilities (mark "-" for decreases)
Decrease on inventories (mark
-364950839.30-400532393.69
"-" for increases)
Decrease on operational
1225697765.19-281980571.10
receivables (mark "-" for increases)
Increase on operational
-2750130196.99-2616509787.99
payables (mark "-" for decreases)
Others 56263258.89 135839244.46
Net cash flow generated by
639122979.11-507185620.71
operating activities
2. Major investing and financing
activities not involving cash receipts
and payment:
Conversion of Debt into Capital
Convertible corporate bonds
maturing within one year
Fixed Assets under Finance Lease
3. Net changes in cash and cash
equivalents:
Closing balance of cash 8323822299.11 9494019608.51
Less: opening balance of cash 11061530816.28 15880659594.95
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net increase in cash and cash
-2737708517.17-6386639986.44
equivalents
(2) Net Cash Paid for Disposal of Subsidiaries in the Current Period
Unit: RMB
Amount
Cash or cash equivalents paid for disposal of subsidiaries
365584795.00
in the current period
Among them:
Hangzhou Huacheng Network Technology Co. Ltd. and
365584795.00
its controlled subsidiaries
Deduct: Cash and cash equivalents held by subsidiaries
396584508.31
on the day of loss of control
Among them:
Hangzhou Huacheng Network Technology Co. Ltd. and
396584508.31
its controlled subsidiaries
1652025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Add: Cash or cash equivalents received from disposal of
11700743.16
subsidiaries in previous periods in this period
Among them:
Lorex corporation LorexTechnology UK Limited Lorex
11700743.16
Technology Inc.Net cash paid for disposal of subsidiaries -19298970.15
Other notes:
The consideration received from the disposal of Hangzhou Huacheng Network Technology Co. Ltd. and its controlled
subsidiaries net of the cash and cash equivalents held by the subsidiaries as of the date of deconsolidation (-RMB
30999713.31) is presented under "Other cash payments related to investing activities". The cash and cash
equivalents of RMB 11700743.16 received from previously disposed subsidiaries are presented under "Net cash paid
for disposal of subsidiaries."
(3) Composition of Cash and Cash Equivalents
Unit: RMB
Item Closing Balance Opening Balance
Ⅰ. Cash 8323822299.11 11061530816.28
Including: cash on hand 2772.70 2584.78
Bank deposit for payment at
8174381629.0310902292934.60
any time
Other monetary funds
149437897.38159235296.90
available for payment at any time
II. Balance of Cash and Cash
8323822299.1111061530816.28
Equivalents at the End of the Period
(4) 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
Letter of guarantee/bill
Other Cash and Bank
74221016.50 75635853.99 security deposit usage
Balances
restricted
Frozen funds restricted
Bank Balance 33722034.78 31940849.28
use
Unexpired bank deposit
Bank Balance 14219237.31 12695904.28 interest is shown in
monetary funds
Total 122162288.59 120272607.55
1662025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
63. 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 333470925.36 7.1586 2387184966.28
EUR 39299985.71 8.4024 330214199.93
HKD 143016682.68 0.9120 130424223.87
INR 1639178305.36 0.0838 137314631.20
THB 194031895.71 0.2197 42625636.14
PLN 20537013.74 1.9826 40717299.55
Total amount of
274817366.02
other currencies
Accounts receivable
Including: USD 416434883.11 7.1586 2981090754.23
EUR 108429729.64 8.4024 911069960.33
HKD 7293599.46 0.9120 6651406.19
INR 6294197172.13 0.0838 527267448.93
AED 138416543.09 1.9509 270034065.58
PLN 102961686.91 1.9826 204134929.32
Total amount of
610726228.33
other currencies
Long-term loan
Including: USD
EUR
HKD
Accounts Payable
Including: USD 110724882.88 7.1586 792635146.58
INR 1041678898.29 0.0838 87261863.63
EUR 1930903.71 8.4024 16224225.33
HUF 310900182.93 0.0211 6548561.97
MXN 6391612.80 0.3809 2434436.41
BRL 1744969.29 1.3067 2280221.17
Total amount of
16001988.01
other currencies
(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
Among the company's overseas operating entities Dahua Technology (HK) Limited does not have autonomy over its
activities; the activities conducted by this overseas operation are an extension of the company's operating activities
and constitute a component of the enterprise's business operations with RMB as the functional currency. HuaRay
1672025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Singapore primarily settles transactions with counterparties in USD. To more objectively and fairly reflect the relevant
financial position and operating result and in consideration of HuaRay Singapore's actual business conditions and
future development plans the functional currency has been changed to USD. This change in functional currency is
accounted for using the prospective application method requiring no retrospective adjustment. 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.
64. 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
Unit: RMB
Item Amount of this period Amount of Previous Period
Interest expenses on lease liabilities 5334929.02 6617980.91
Simplified rental expenses for short-term leases or
low-value asset leases included in the cost of related 37252067.33 35631536.76
assets or current profit or loss
Total cash outflows relating to leases 122915017.67 110875543.12
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 47966979.18
Equipment leasing 28181829.02
Total 76148808.20
As the lessor in financial leases
□ Applicable □Not applicable
Undiscounted lease receipts for each of the next five years
□ Applicable □Not applicable
Reconciliation of undiscounted lease receipts to net lease investment
1682025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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 1733489686.05 1678439697.04
Research consumables and service
86978618.7080309482.62
fees
Depreciation cost and asset
82602799.0672770371.24
amortization
Traveling expense 23404093.89 24015489.48
Administrative expenses 20292959.24 18949458.84
Communication expense 29202308.18 16874102.17
Others 8434957.98 9971559.51
Total 1984405423.10 1901330160.90
Including: Expenses for R&D
1984405423.101901330160.90
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 difference
between the Determination The amount of
disposal price method and other
and the share The book value The fair value main comprehensiveof the income related
Proportion of Disposal Basis for
of the net
assets of the The proportion remaining
of remaining Gain or loss assumptions of to equity
Name of Disposal price disposals at method at time Time point of determining subsidiary of remaining equity at the
equity at the from re- the fair value of investments in
Subsidiaries at time point of time point of point of loss of loss of control the time point enjoyed at the equity on the consolidated
consolidated measurement remaining
loss of control of loss of day control is financial financial of residual equity at the
subsidiary
loss of control control control consolidated lost statement level statement level equity at fair consolidated
companies and
financial on the day of on the day of value financial
transferred to
statement level loss of control statement level investment
corresponding loss of control on the day of profit or loss or
to the disposal loss of control retained
of investment earnings
Hangzhou Signed the
Huacheng equity transfer
Network
Technology 716832932.00 32.7321% Equity transfer June 20 2025
agreement and
completed the 485120623.52 0.00% 0.00 0.00 0.00 -575032.31
Co. Ltd. and property rights
its subsidiaries delivery
Is there a situation where control over a subsidiary was lost during this period due to multiple transactions involving
step-by-step disposal of the investment in the subsidiary
□ Yes □No
1692025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
4. OthersChanges in the Scope of Consolidation Due to Reasons
The Company's subsidiary IMOU NETWORK TECHNOLOGY AUSTRALIA PTY LTD was dissolved during the
current period and has been excluded from the consolidation scope effective from the dissolution date.X. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the Enterprise Group
Name of Registered Main Place of Registered Business Shareholding Percentage Acquisition
Subsidiaries Capital Business Address Nature Direct Indirect Method
Dahua System RMB 500 Binjiang Binjiang Electronics
Engineering million District District and 100.00% EstablishmentHangzhou Hangzhou information
Dahua Vision RMB Binjiang Binjiang Electronics
Technology 1306.81 District District and 100.00% Establishmentmillion Hangzhou Hangzhou information
Dahua Security RMB 100 Binjiang Binjiang Electronics
Network million District District and 100.00% EstablishmentHangzhou Hangzhou information
Binjiang Binjiang Electronics
Dahua Ju'an RMB 10million District District and 51.00% EstablishmentHangzhou Hangzhou information
Guangxi Dahua RMB 66.80 Youjiang Youjiang Electronics
Information million District Baise District Baise and 100.00% Establishmentinformation
Guangxi RMB 20 Qingxiu Qingxiu
Yunlian million District District Service 100.00% EstablishmentNanning Nanning
Hangzhou RMB 10 Binjiang Binjiang Electronics
Xiaohua million District District and 78.00% EstablishmentHangzhou Hangzhou information
RMB Fuyang Fuyang Electronics
Dahua Zhilian 1885.80 District District and 100.00% Establishment
million Hangzhou Hangzhou information
Dahua Fuyang Fuyang Investment &
investment RMB 300
management million
District District investment 100.00% Establishment
Hangzhou Hangzhou management
Guangxi RMB109.5429 Youjiang Youjiang
Electronics
Zhicheng million District Baise District Baise
and 65.00% Establishment
information
Sci-tech
RMB Binjiang Binjiang popularizationHuaRay
Technology 78.264756 District District
and
application 32.58% Establishmentmillion Hangzhou Hangzhou services
industry
RMB 10 Fuyang Fuyang ElectronicsFuyang Hua'ao million District District and 51.00% EstablishmentHangzhou Hangzhou information
Huafei RMB 50 Binjiang Binjiang Electronics
Intelligent million District District and 100.00% EstablishmentHangzhou Hangzhou information
RMB 22.5 Guanshanhu Guanshanhu ElectronicsGuizhou Huayi million District District and 100.00% EstablishmentGuiyang Guiyang information
Guangxi RMB 35.80 Wuzhou Wuzhou Electronics
Huacheng million Guangxi Guangxi and 90.00% Establishment
1702025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
information
Meitan Dahua RMB 10 Zunyi Zunyi Electronics
Technology million Guizhou Guizhou and 100.00% Establishmentinformation
New District New District
Inner Mongolia RMB 20 Bai County Bai County Electronics
Zhimeng million Chahar Right Chahar Right and 95.00% EstablishmentWing Back Wing Back information
Banner Banner
Tianjin Dahua RMB 36 Hexi District Hexi District
Electronics
million Tianjin Tianjin and 100.00% Establishmentinformation
Dahua Zhilong RMB 39.48
Shuangpai Shuangpai Electronics
million County County and 90.00% EstablishmentYongzhou City Yongzhou City information
Fuyang Fuyang
Vision RMB 10 District District Electronics
Technology million Hangzhou Hangzhou and 100.00% EstablishmentCity Zhejiang City Zhejiang information
Province Province
Fuyang Fuyang
Huaxiao RMB 70 District District Electronics
Technology million Hangzhou Hangzhou and 51.00% EstablishmentCity Zhejiang City Zhejiang information
Province Province
Xi'an City Xi'an City Electronics
Xi'an Dahua RMB 989.60million Shaanxi Shaanxi and 100.00% EstablishmentProvince Province information
25.5 million Wuxi City Wuxi City ElectronicsHuaruipin RMB Jiangsu Jiangsu and 100.00% EstablishmentProvince Province information
Fengtai Fengtai Electronics
Beijing Huayue RMB 10million District District and 100.00% EstablishmentBeijing Beijing information
Shanghai RMB 1 Putuo District Putuo District Electronics
Huashang million Shanghai Shanghai and 100.00% Establishmentinformation
Wucheng Wucheng
Dahua Jinzhi RMB 60 District Jinhua District Jinhua
Electronics
million City Zhejiang City Zhejiang and 100.00% Establishment
Province Province information
Zhoushan RMB 100 Zhoushan Zhoushan Electronics
Operation million City Zhejiang City Zhejiang and 62.40% EstablishmentProvince Province information
Liuzhou City Liuzhou City
Guangxi Dahua RMB 100 Guangxi Guangxi Electronics
Technology million Zhuang Zhuang and 100.00% EstablishmentAutonomous Autonomous information
Region Region
Huayixin RMB 80
Binjiang Binjiang Electronics
million District District and 51.00% EstablishmentHangzhou Hangzhou information
Binjiang Binjiang
Huaruijie RMB 150million District District
Automotive
electronics 51.00% EstablishmentHangzhou Hangzhou
Chengdu RMB 600 Longquanyi Longquanyi Electronics
Zhilian million District District and 100.00% EstablishmentChengdu Chengdu information
RMB 554.70 Longquanyi Longquanyi ElectronicsChengdu Zhian million District District and 100.00% EstablishmentChengdu Chengdu information
Chengdu RMB 50 Longquanyi Longquanyi Electronics
Zhishu million District District and 100.00% EstablishmentChengdu Chengdu information
1712025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Chengdu RMB 15 Longquanyi Longquanyi Electronics
Zhichuang million District District and 100.00% EstablishmentChengdu Chengdu information
Chengdu Smart RMB 50 Dayi County Dayi County Electronics
Network million Chengdu Chengdu and 90.00% Establishmentinformation
Huakong RMB 50 Wuyi County Wuyi County Electronics
Software million Jinhua City Jinhua City and 100.00% Establishmentinformation
RMB 30 Zhengzhou Zhengzhou ElectronicsHenan Dahua million Henan Henan and 100.00% Establishmentinformation
RMB 50 Binjiang Binjiang ElectronicsHuajian million District District and
45.00% Establishment
Hangzhou Hangzhou information (Note 1)
Zhengzhou RMB 30 Zhengzhou Zhengzhou Electronics
Dahua Zhian million Henan Henan and 100.00% Establishmentinformation
Dahua RMB 1 Electronics
International million Singapore Singapore and 100.00% Establishmentinformation
Anhui Zhilian RMB 30
Electronics
million Hefei Anhui Hefei Anhui and 100.00% Establishmentinformation
Electronics
Anhui Zhishu RMB 30million Hefei Anhui Hefei Anhui and 100.00% Establishmentinformation
Changsha RMB 100 Changsha Changsha Electronics
Dahua million Hunan Hunan and 100.00% Establishmentinformation
Electronics
Tianjin Huajian RMB 30 Hexi District Hexi Districtmillion Tianjin Tianjin and 100.00% Establishmentinformation
RMB Xiaoshan Xiaoshan Electronics
Zhejiang Pixfra 442.140448 District District and 75.11% Establishment
million Hangzhou Hangzhou information
Yiwu City Yiwu City Electronics
Yiwu Huaxi RMB 10million Zhejiang Zhejiang and 100.00% EstablishmentProvince Province information
Dahua RMB 100 Xiaoshan Xiaoshan Electronics
Operation million District District and 100.00% EstablishmentHangzhou Hangzhou information
Nanyang RMB 10 Nanyang City Nanyang City Electronics
Intelligent million Henan Henan and 100.00% EstablishmentProvince Province information
Yibin City Yibin City Electronics
Yibin Huahui RMB 20million Sichuan Sichuan and 100.00% EstablishmentProvince Province information
Chengdu RMB 10 Chengdu City Chengdu City Electronics
Huazhiwei million Sichuan Sichuan and 100.00% EstablishmentProvince Province information
RMB 10 Luoyang City Luoyang City ElectronicsLuoyang Zhiyu million Henan Henan and 100.00% EstablishmentProvince Province information
Huaqi RMB 100 Binjiang Binjiang Electronics
Intelligence million District District and 100.00% EstablishmentHangzhou Hangzhou information
Chengdu RMB 20 Chongzhou Chongzhou Electronics
Information million City Chengdu City Chengdu and 100.00% EstablishmentCity City information
Business
RMB 20 Binjiang Binjiang Electronics combinationHJ Technology million District District and 100.00% not underHangzhou Hangzhou information common
control
1722025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Shuhang RMB 10 Xiaoshan Xiaoshan Electronics
Intelligent million District District and 100.00% EstablishmentHangzhou Hangzhou information
Haizhu Haizhu Electronics
Huaxiyue RMB 10million District District and 100.00% EstablishmentGuangzhou Guangzhou information
Huajie RMB 50 Xiaoshan Xiaoshan New energy
Operation million District District operations 100.00% EstablishmentHangzhou Hangzhou
Qingdao Ruifa RMB 7 Qingdao Qingdao
Electronics
million Shandong Shandong and 100.00% Establishmentinformation
Shandong Electronics
Digital RMB 10 Jinan Jinan
Intelligence million Shandong Shandong
and 100.00% Establishment
information
Fujian RMB 10 Qingliu Qingliu Electronics
Qingchuang million County Fujian County Fujian and 100.00% Establishmentinformation
Jilin Zhilian RMB 10 Changchun Changchun
Electronics
million Jilin Province Jilin Province and 100.00% Establishmentinformation
Zhengzhou RMB 10 Zhengzhou Zhengzhou Electronics
Huaao million Henan Henan and 100.00% Establishmentinformation
Hainan Huizhi RMB 10 Hainan Hainan
Electronics
million Province Province and 100.00% Establishmentinformation
Dahua Hong RMB Electronics
Kong 669.687347 Hong Kong Hong Kong and 100.00% Establishmentmillion information
Electronics
Dahua Europe EUR200000 Netherlands Netherlands and 100.00% Establishmentinformation
Dahua Middle AED 1 United Arab United Arab Electronics
East million Emirates Emirates and 100.00% Establishmentinformation
Electronics
Dahua Mexico MXN 90million Mexico Mexico and 100.00% Establishmentinformation
Electronics
Dahua Chile CLP 360million Chile Chile and 100.00% Establishmentinformation
Dahua COP Electronics
Colombia 4616.709016 Columbia Columbia and 100.00% Establishmentmillion information
AUD ElectronicsDahua Australia 150000 Australia Australia and 100.00% Establishmentinformation
Dahua USD Electronics
Singapore 220000 Singapore Singapore and 100.00% Establishmentinformation
Dahua South Electronics
Africa ZAR 5 million South Africa South Africa and 100.00% Establishmentinformation
Dahua Peru PEN 2.2
Electronics
million Peru Peru and 100.00% Establishmentinformation
BRL Electronics
Dahua Brazil 41.334811 Brazil Brazil and 100.00% Establishment
million information
Electronics
Dahua Russia RUB 30million Russia Russia and 100.00% Establishmentinformation
Dahua Canada CAD
Electronics
250000 Canada Canada and 100.00% Establishmentinformation
1732025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Electronics
Dahua Panama USD 10000 Panama Panama and 100.00% Establishment
information
HUF 303 ElectronicsDahua Hungary million Hungary Hungary and 100.00% Establishmentinformation
Dahua Poland PLN 2.2
Electronics
million Poland Poland and 100.00% Establishmentinformation
Electronics
Dahua Tunisia USD 89000 Tunisia Tunisia and 100.00% Establishment
information
Electronics
Dahua Kenya KES 15million Kenya Kenya and 100.00% Establishmentinformation
Dahua UK GBP
Electronics
100000 UK UK and 100.00% Establishmentinformation
Electronics
Dahua Bulgaria BGN350000 Bulgaria Bulgaria and 100.00% Establishmentinformation
Dahua Serbia RSD 23
Electronics
million Serbia Serbia and 100.00% Establishmentinformation
Dahua EUR Electronics
Germany 150000 Germany Germany and 100.00% Establishmentinformation
Dahua 1000000 Electronics
Malaysia Malaysian Malaysia Malaysia and 100.00% EstablishmentRinggit information
Electronics
Dahua Korea KRW 1500million South Korea South Korea and 100.00% Establishmentinformation
Dahua IDR 2600 Electronics
Indonesia million Indonesia Indonesia and 100.00% Establishmentinformation
Dahua India INR 234
Electronics
million India India and 100.00% Establishmentinformation
Electronics
Dahua Turkey TRY 840000 Turkey Turkey and 100.00% Establishment
information
Dahua Czech CZK 5.4 Czech Czech
Electronics
million Republic Republic and 100.00% Establishmentinformation
Dahua ARS Electronics
Argentina 49.686361 Argentina Argentina and 100.00% Establishmentmillion information
Electronics
Dahua Spain EUR150000 Spain Spain and 100.00% Establishmentinformation
Dahua KZT 23 Electronics
Kazakhstan million Kazakhstan Kazakhstan and 100.00% Establishmentinformation
Dahua DKK 1.5 Electronics
Denmark million Denmark Denmark and 100.00% Establishmentinformation
Electronics
Dahua France EUR100000 France France and 100.00% Establishmentinformation
Dahua HKD ElectronicsTechnology 500000 Hong Kong Hong Kong and 100.00% EstablishmentHoldings information
Dahua Morocco AED 500000 Morocco Morocco Electronicsand 100.00% Establishment
1742025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
information
Business
Electronics combination
Dahua Italy EUR 12000 Italy Italy and 100.00% not under
information common
control
Dahua UZS 3.2 Electronics
Uzbekistan billion Uzbekistan Uzbekistan and 100.00% Establishmentinformation
Dahua Electronics
Netherlands EUR 10000 Netherlands Netherlands and 100.00% Establishmentinformation
Dahua Sri LKR 48 Electronics
Lanka million Sri Lanka Sri Lanka and 100.00% Establishmentinformation
Electronics
Dahua Pakistan PKR 20million Pakistan Pakistan and 100.00% Establishmentinformation
Dahua New Electronics
Zealand NZD 300000 New Zealand New Zealand and 100.00% Establishmentinformation
Electronics
Dahua Thailand THB 25million Thailand Thailand and 99.98% Establishmentinformation
Dahua RON 1 Electronics
Romania million Romania Romania and 100.00% Establishmentinformation
Electronics
Dahua Nigeria NGN 100million Nigeria Nigeria and 100.00% Establishmentinformation
Electronics
Dahua Israel USD300000 Israel Israel and 100.00% Establishmentinformation
Dahua Mexico 1000.00 Electronics
Service Mexican Mexico Mexico and 100.00% Establishmentpesos information
Electronics
Dahua Japan JPY 6 million Japan Japan and 100.00% Establishment
information
Electronics
Dahua Qatar QAR 2.184million Qatar Qatar and 100.00% Establishmentinformation
Electronics
Dahua Pacific USD 10000 Panama Panama and 100.00% Establishment
information
Dahua Saudi Electronics
Arabia SAR 500000 Saudi Arabia Saudi Arabia and 100.00% Establishmentinformation
Electronics
Dahua Bengal BDT 5 million Bangladesh Bangladesh and 100.00% Establishment
information
HuaRay USD Electronics
Singapore 100000 Singapore Singapore and 100.00% Establishmentinformation
KRW 100 ElectronicsHuaRay Korea million South Korea South Korea and 100.00% Establishmentinformation
HuaRay Electronics
Germany EUR 25000 Germany Germany and 100.00% Establishmentinformation
Dahua Belgium EUR Electronics
Co. 100000 Belgium Belgium and 100.00% Establishmentinformation
Dahua Saudi
Arabia Co. SAR 750000 Saudi Arabia Saudi Arabia
Electronics
and 100.00% Establishment
1752025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
information
Dahua USD Electronics
Argentina Co. 200000 Azerbaijan Azerbaijan and 100.00% Establishmentinformation
Dahua Vietnam VND 2363.6 Electronics
Co. Ltd. million Vietnam Vietnam and 100.00% Establishmentinformation
Electronics
Dahua Angola AOA 176.303million Angola Angola and 100.00% Establishmentinformation
Hirige 2000.00 Electronics
MaLaysia Malaysian Malaysia Malaysia and 100.00% EstablishmentRinggit information
Electronics
Dahua Egypt USD100000 Egypt Egypt and 100.00% Establishmentinformation
DAHUAAbu Electronics
Dhabi AED 100000 Abu Dhabi Abu Dhabi and 100.00% Establishmentinformation
Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:
In May 2025 Ningbo Huaying Venture Capital Partnership (Limited Partnership) transferred its entire 35% equity stake
in Zhejiang Huajian Technology Co. Ltd. to Ms. Chen Ailing. The company directly holds a 45% equity interest in
Huajian Technology and according to the agreement Chen Ailing has granted the company the right to exercise 35%
of the voting right she holds. The company actually holds 80% of the voting right of Huajian Technology constituting
actual control and including it within the consolidation scope.Basis for holding half or fewer voting rights but still controlling the investee as well as holding more than half of the
voting rights but not controlling the investee:
As of June 30 2025 the company holds a 32.58% shareholding ratio in Zhejiang HuaRay Technology Co. Ltd. The
company is the largest shareholder of HuaRay Technology while the shareholding ratios of other shareholders are
relatively low and dispersed. Therefore HuaRay Technology remains the company's controlled subsidiary and is
included within the company's consolidated scope.
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
Pursuant to the April 2025 resolution of the shareholders meeting of the Company's subsidiary Jiangsu Huaruipin
Technology Co. Ltd. Huaruipin's registered capital was reduced from RMB 50 million to RMB 25.5 million. The
Company originally held a 51.00% stake in Huaruipin and did not reduce its shareholding in this capital reduction.Post-reduction the Company's ownership in Huaruipin passively increased to 100.00% making Huaruipin a wholly-
owned subsidiary of the Company.
1762025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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
Jiangsu Huaruipin Technology Co. Ltd.Purchase cost/Disposal consideration 25750435.51
-- Cash 25750435.51
-- Fair value of non-cash assets
Purchase cost/ Total disposal consideration 25750435.51
Less: the share of net assets of the subsidiary calculated
25806144.13
based on the ratio of equity obtained/disposed
Difference -55708.62
Among them: adjust the capital reserve 55708.62
Adjusted surplus reserve
Adjusted undistributed profits
3. Equity in Joint Ventures or Joint Ventures
(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 749403415.83 722241568.57
The total count of the following items
based on the shareholding ratios
--Net profit 10798379.54 16910626.79
--Other comprehensive income 21639388.06 -4166343.69
--Total comprehensive income 32437767.60 12744283.10
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
1772025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. Projects Related to Government Subsidies
□Applicable □ Not applicable
Unit: RMB
Amount
Amounts
recorded Other
The amount of transferred to
Accounting Opening as non- changes in Closing Related to
new subsidies other gains in
Accounts Balance operating the current Balance assets/earnings
in this period the current
revenue in period
period
this period
Deferred Related to
181225246.292360166.008635219.36174950192.93
income assets
Deferred Related to
4955766.701371100.006326866.70
income 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
Subsidy items
Period Period
Value-added tax refund upon 339011008.11 416765198.95
collection
Special grants 194290442.32 81469680.71
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
Credit risk refers to the risk of financial loss to the company resulting from a counterparty's failure to fulfill 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
1782025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.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 that an enterprise will experience a shortage of funds when fulfilling obligations settled
by delivering 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:
Unit: RMB
June 30 2025
Item
Within 1 year 1 years or above Total
Short-term loan 501579505.58 501579505.58
Notes Payable 2851016916.85 2851016916.85
Accounts Payable 5318829779.51 5318829779.51
Other payables 440276175.28 440276175.28
Non-current Liabilities Due within 1
Year 101055003.41 101055003.41
Lease liabilities 137725343.37 137725343.37
Total 9212757380.63 137725343.37 9350482724.00
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 124348757.02 124348757.02
Year
Lease liabilities 120670497.25 120670497.25
Total 11234313420.22 120670497.25 11354983917.47
1792025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(III) Market Risk
Market risk of financial instruments refers to the risk that the fair value or future cash flow of financial instruments
fluctuates due to changes in market prices including exchange rate risk interest rate risk and other price risks.
1. Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flow of a financial instrument will fluctuate due to
changes in market interest rates. 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
Exchange rate risk refers to the risk that the fair value of a financial instrument or its future cash flow will fluctuate due
to changes in foreign exchange rates. 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
USD Other foreign Total USD Other foreigncurrencies currencies Total
Cash and
bank 2387184966.28 956113356.71 3343298322.99 2177690323.36 1222643014.06 3400333337.42
balances
Accounts
receivable 2981090754.23 2529884038.68 5510974792.91 4082571616.81 2667735918.53 6750307535.34
Accounts
Payable 792635146.58 130751296.52 923386443.10 831712779.40 276142582.65 1107855362.05
Total 6160910867.09 3616748691.91 9777659559.00 7091974719.57 4166521515.24 11258496234.81
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 Second level Third levelLevel 1 fair value
measurement at fair measurement at fair Total
measurement
value value
I. Constant
Measurement at Fair -- -- -- --
Value
(I) Trading Financial 26577200.00 81445103.02 108022303.02
Assets
1. Financial assets at
fair value through 26577200.00 81445103.02 108022303.02
profit or loss in this
1802025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
period
(1) Investment in 26577200.00 26577200.00
Equity Instruments
(2) Others 81445103.02 81445103.02
(II) Receivables
Financing 774019955.88 774019955.88
(III) Other Non-
current Financial 1420493589.47 38563656.86 1459057246.33
Assets
1. Financial assets
at fair value through
profit or loss in this 1420493589.47 38563656.86 1459057246.33
period
(1) Investment in
Equity Instruments 38563656.86 38563656.86
(2) Others 1420493589.47 1420493589.47
Total assets
constantly measured 26577200.00 2275958648.37 38563656.86 2341099505.23
at fair value
(IV) Transactional 586892.89 3197254.18 3784147.07
Financial Liabilities
Derivative Financial 586892.89 586892.89
Liabilities
Others 3197254.18 3197254.18
Total amount of
liabilities constantly 586892.89 3197254.18 3784147.07
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
Derivative financial assets/derivative financial liabilities are basically measured and recognized at fair value with
reference to different parameters based on market conditions at the time as well as the remaining term and duration
of the 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.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.
1812025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 shareholder
Fu Liquan 31.19% 31.44%
actual controller
Chen Ailing Actual controller 2.17% 2.19%
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. Equity 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. Equity 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
Rudong Jintianhua Security Technology Co. Ltd. Affiliate
Zhejiang Huachuang Vision Technology Co. Ltd. Affiliate
Ningbo Cida Yongshun Intelligent Technology Co. Ltd. Affiliate
Huahongchang Intelligent Technology (Jiangsu) Co. Ltd. Affiliate
Guangxi FTZ Huaqin Wisdom Park Technology Research
Affiliate
Institute Co. Ltd.Ningbo Huayan Chuangxi Venture Capital Investment
Affiliate
Partnership (Limited Partnership)
1822025 Semi-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)
Hangzhou Ruipin Enterprise Management Partnership
Enterprise controlled by the actual controller
(Limited Partnership)
Zhejiang Huashi Investment Management Co. Ltd. Enterprise controlled by the actual controller
Hangzhou Xianmai Technology Co. Ltd. Enterprises controlled by relatives of 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 where the Company's directors and senior
Hangzhou Huacheng Network Technology Co. Ltd. and
management served as directors within the preceding 12
its subsidiaries
months (Note 2)
Other instructions
Note 1: "Zhejiang Leapmotor Technology Co. Ltd. and its affiliated companies" include twelve companies involved in
related-party transactions with the Company: Zhejiang Leapmotor Technology Co. Ltd. Zhejiang Leapmotor New
Energy Automotive Parts Technology Co. Ltd. Leapmotor Automobile Co. Ltd. Leapmotor Automobile Co. Ltd.Hangzhou Branch Zhejiang Leapmotor Automobile Sales Service Co. Ltd. Jinhua Leapmotor New Energy
Automotive Parts Technology Co. Ltd. Zhejiang Lingsheng Technology Co. Ltd. Jinhua Lingsheng Technology Co.Ltd. Tianjin Lingzhi Automobile Sales Service Co. Ltd. Zhejiang Lingxiao Energy Technology Co. Ltd. Lingxiao
Energy Technology (Wuyi) Co. Ltd. and Zhejiang Youchong New Energy Technology Co. Ltd.Note 2: The Company's former subsidiary Hangzhou Huacheng Network Technology Co. Ltd. was transferred during
the current period. Consequently Hangzhou Huacheng Network Technology Co. Ltd. and its controlled subsidiaries
have been excluded from the consolidation scope effective from the transfer date.
1832025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 117414040.94 No 165464165.81
materials
under its control
China Mobile Material
Communications procurement
44743923.39 No 29810955.52
Group Co. Ltd. acceptance of
and its affiliates services
Zhejiang
Huachuang
Purchase of
Vision 19463649.53 No 19013656.35
materials
Technology Co.Ltd.Zhejiang
Material
Leapmotor
procurement
Technology Co. 8328138.03 No 2849413.00
acceptance of
Ltd. and its
services
affiliates
Zhejiang
Material
Huanuokang
procurement
Technology Co. 540088.56 No 639822.86
acceptance of
Ltd. and its
services
subsidiaries
Zhejiang
Lancable Purchase of
15938.19 No 1061.95
Technology Co. materials
Ltd.Ruicity Digital
Technology Co. Purchase of
No 8517077.21
Ltd. And its materials
subsidiaries
Beijing Haitian
Ruisheng Acceptance of
No 80371.70
Science services
Technology 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 434956295.51 143079215.80
Zhejiang Leapmotor
Sales of goods and
Technology Co. Ltd. and its 251054040.14 126434708.54
provision of services
affiliates
China Mobile Communications Sales of goods and 135432781.93 86084408.42
1842025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Group Co. Ltd. and its provision of services
affiliates
Rudong Jintianhua Security
Sales of merchandise 2633161.97
Technology Co. Ltd.Ningbo Cida Yongshun Sales of goods and
2048545.542167340.82
Intelligent Technology Co. Ltd. provision of services
Dezhou Shuzhi Information Sales of goods and
1998783.615488111.52
Technology Co. Ltd. provision of services
Zhejiang Hyxi Technology Co. Sales of goods and
1754519.6447478.63
Ltd. provision of services
Zhejiang Huanuokang
Technology Co. Ltd. and its Sales of merchandise 1641592.68 400278.51
subsidiaries
Guangdong Zhishi Digital
Sales of merchandise 1005860.55 891772.36
Technology Co. Ltd.Zhejiang Huachuang Vision Sales of goods and
304646.93380435.50
Technology Co. Ltd. provision of services
Huahongchang Intelligent
Sales of merchandise 10442.48
Technology (Jiangsu) Co. Ltd.Hangzhou Xianmai
Sales of merchandise 4335.40
Technology Co. Ltd.Guangxi FTZ Huaqin Wisdom
Park Technology Research Sales of merchandise 26.55 386548.68
Institute Co. Ltd.Ruicity Digital Technology Co.Sales of merchandise -101145.95 5920590.17
Ltd. And its subsidiaries
Zhejiang Lancable Technology
Sales of merchandise -10619.47
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 1486256.16 818706.26
Co. Ltd.Zhejiang Huanuokang
Technology Co. Ltd. and Buildings and constructions 896278.64 876922.77
its subsidiaries
Zhejiang Leapmotor
Technology Co. Ltd. and Buildings and constructions 70716.55 134487.97
its affiliates
Huayan Capital
(Hangzhou) Private Equity
Buildings and constructions 46744.80 46467.27
Fund Management Co.Ltd.Zhejiang Huachuang
Buildings and constructions 10045.86 10045.86
Vision Technology Co. Ltd.Zhejiang Leapmotor
Technology Co. Ltd. and Device 61373.45
its affiliates
1852025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company being the lessee:
Unit: RMB
Simplified rental Variable lease
expenses for short-term payments not included
leases and low-value in the measurement of Rent paid Interest expense on Increased right-of-use
asset leases (if lease liabilities (if lease liabilities borne assets
Name of Type of the applicable) applicable)
the lessor leasedassets Amount Amount Amount Amount Amount Amount Amount Amount Amount
Occurred in Occurred in Occurred in Occurred in Occurred in Occurred in Occurred in Occurred in
Amount
Occurred in Occurred in
the Current the thePrevious the Current Previous the Current the Previous the Current
the the Current the
Period Period Period Period Period Period Period
Previous Period PreviousPeriod Period
Zhejiang
Leapmotor
Technology Machinery
Co. Ltd. and 1034915.00 1034915.00 95943.04 109364.41
and its equipment
affiliates
(3) Related Guarantee
The Company being the guarantor:
Unit: RMB
Guarantee
Secured parties Guarantee fulfilledamount Starting date Maturity date completely
or not
Zhejiang Dahua Vision Two years after the maturity of the
Technology Co. Ltd. 220000000.00 October 13 2017 debts in the master contract No
Zhejiang Dahua Vision
Technology Co. Ltd.(guaranteed currency: 40000000.00
September 21 Two years after the maturity of the
2018 debts in the master contract No
USD)
Zhejiang Dahua Vision 300000000.00 September 01 Five years upon expiration of debtTechnology Co. Ltd. 2020 period of master contract No
Zhejiang Dahua Vision 200000000.00 July 22 2022 Three years after the maturity of theTechnology Co. Ltd. debts in the master contract No
From the date of expiration of the
performance period of each debt in
Zhejiang Dahua Vision the master contract until three years
Technology Co. Ltd. 400000000.00 July 24 2023 after the date of expiration of the Noperformance period of the last due
master debt under all master
contracts
From the date of signing the master
contract for a single credit
Zhejiang Dahua Vision
Technology Co. Ltd. 900000000.00
September 26 transaction until three years after
2023 the debtor's debt performance No
period under the master contract
expires
Three years from the expiration date
Zhejiang Dahua Vision 330000000.00 September 26 of the debtor's performance periodTechnology Co. Ltd. 2023 as agreed in the master claim No
contract
Three years from the next day after
Zhejiang Dahua Vision
Technology Co. Ltd. 1000000000.00 March 01 2024
the expiry date of each type of
financing business under the master No
contract
Zhejiang Dahua Vision Two years from the expiration date
Technology Co. Ltd. 530000000.00 April 01 2024 of the debtor's performance period Noas agreed in the master contract
1862025 Semi-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
Zhejiang Dahua Vision 400000000.00 June 07 2024 Agreement or of the accountsTechnology Co. Ltd. receivable claims granted by the Yes
Hangzhou Branch of China
Merchants Bank or the advance
date of each advance within the
credit extension period
Three years from the expiration date
Zhejiang Dahua Vision 495000000.00 July 25 2024 of the debtor's performance periodTechnology Co. Ltd. as agreed in each specific financing No
contract
The guarantee period is three years
from the effective date of the
Zhejiang Dahua Vision Maximum Amount Guarantee
Technology Co. Ltd. 500000000.00 August 16 2024 Contract until the expiration date of Nothe 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 680000000.00 September 19 years after the expiration of the debtTechnology Co. Ltd. 2024 performance period stipulated in the No
specific business credit contract
(including early maturity of the
debt).Zhejiang Dahua Vision Three years from the expiration date
Technology Co. Ltd. 200000000.00 December 13 2024 of the debtor's performance period Noas 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 400000000.00 June 10 2025 Agreement or of the accountsTechnology Co. Ltd. receivable claims granted by the No
Hangzhou Branch of China
Merchants Bank or the advance
date of each advance within the
credit extension period
Zhejiang Dahua Zhilian 200000000.00 September 28Co. Ltd. 2024 May 8 2025 Yes
Zhejiang Dahua Zhilian Two years from the expiration date
Co. Ltd. 300000000.00 March 29 2024 of the debtor's performance period Noas 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
Co. Ltd. 160000000.00 June 07 2024
Agreement or of the accounts
receivable claims granted by the Yes
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
Zhejiang Dahua Zhilian principal debt under the master
Co. Ltd. 600000000.00 July 25 2024 contract and ends three years after Nothe expiration date of the
performance period of the last due
principal debt under all master
contracts.
1872025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Three years from the expiration date
Zhejiang Dahua Zhilian 165000000.00 July 25 2024 of the debtor's performance periodCo. Ltd. as agreed in each specific financing No
contract
The guarantee period is from the
effective date of the specific
business credit contract to three
Zhejiang Dahua Zhilian 150000000.00 September 19 years after the expiration of the debtCo. Ltd. 2024 performance period stipulated in the No
specific business credit contract
(including early maturity of the
debt).Zhejiang Dahua Zhilian September 26 Three years from the expiration date
Co. Ltd. 100000000.00 2024 of the debtor's performance period Noas agreed in the master contract.From the effective date of the
commitment letter to three years
after the maturity date of each loan
Zhejiang Dahua Zhilian 160000000.00 June 10 2025 or other financing under the CreditCo. Ltd. Agreement or of the creditor's rights No
granted by the Hangzhou Branch of
China Merchants Bank or the
advance date of each advance.Zhejiang Dahua Zhilian One year commencing upon the
Co. Ltd. 10000000.00 January 02 2025 expiration of Zhejiang Dahua Zhilian NoCo. Ltd.'s debt performance period.Zhejiang Dahua Zhilian
Co. Ltd. 200000000.00 May 09 2025 August 24 2025 No
Zhejiang Dahua
System Engineering 5000000.00 September 282024 May 8 2025 YesCo. Ltd.From the effective date of the
Commitment Letter to three years
after the maturity date of each loan
Zhejiang Dahua or other financing under the Credit
System Engineering 40000000.00 June 10 2024 Agreement or of the accounts
Co. Ltd. receivable claims granted by the
Yes
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 The guarantee period is two years
System Engineering 10000000.00 September 03 from the expiration date of the
Co. Ltd. 2024 debtor's debt performance period
No
stipulated in the master contract.From the effective date of the
commitment letter to three years
Zhejiang Dahua after the maturity date of each loan
System Engineering 40000000.00 June 10 2025 or other financing under the Credit
Co. Ltd. Agreement or of the creditor's rights
No
granted by the Hangzhou Branch of
China Merchants Bank or the
advance date of each advance.Zhejiang Dahua
System Engineering 5000000.00 May 09 2025 August 24 2025 No
Co. Ltd.Dahua Technology (HK)
Limited (guaranteed 3000000.00 April 22 2024 April 22 2025 Yes
currency: USD)
1882025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua Technology (HK)
Limited (guaranteed 3000000.00 April 22 2025 April 21 2026 No
currency: USD)
Dahua Technology (HK)
Limited (guaranteed 20000000.00 January 15 2025 January 14 2026 No
currency: USD)
DAHUA
TECHNOLOGY
MEXICO S.A. DE C.V 1000000.00 October 18 2024 October 17 2025 No
(guaranteed currency:
USD)
DAHUA
TECHNOLOGY Three years commencing from the
MEXICO S.A. DE C.V 2000000.00 January 15 2025 day following the expiration of the
(guaranteed currency: loan term under the main
No
USD) agreement.Dahua Technology UK
Limited (guaranteed 1160000.00 August 12 2020 Sign the Termination Notice Letter No
currency: GBP)
Dahua Technology UK
Limited (guarantee 1000000.00 March 04 2024 March 03 2025 Yes
currency: USD)
Dahua Technology UK
Limited (guarantee 1000000.00 March 04 2025 March 3 2026 No
currency: USD)
Zhejiang Huayixin 10000000.00 April 29 2022 Three years after the maturity of theTechnology Co. Ltd. debts in the master contract Yes
Zhejiang Huayixin 2000000.00 September 28Technology Co. Ltd. 2024 May 8 2025 Yes
From the effective date of the
commitment letter to three years
after the maturity date of each loan
Zhejiang Huayixin September 26 or other financing under the Credit
Technology Co. Ltd. 10000000.00 2024 Agreement or of the creditor's rights No
granted by the Hangzhou Branch of
China Merchants Bank or the
advance date of each advance.The guarantee period shall be three
Zhejiang Huayixin years starting from the day after the
Technology Co. Ltd. 10000000.00 May 09 2025 expiration of the debtor's Noperformance period as stipulated in
each specific financing contract.Zhejiang Huayixin
Technology Co. Ltd. 2000000.00 May 09 2025 August 24 2025 No
Zhejiang Fengshi
Technology Co. Ltd. 100000000.00
September 28
2024 May 8 2025 Yes
From the effective date of the
commitment letter to three years
after the maturity date of each loan
Zhejiang Fengshi 30000000.00 September 03 or other financing under the CreditTechnology Co. Ltd. 2024 Agreement or of the creditor's rights No
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 15000000.00 September 19 years after the expiration of the debtTechnology Co. Ltd. 2024 performance period stipulated in the No
specific business credit contract
(including early maturity of the
debt).Zhejiang Fengshi
Technology Co. Ltd. 100000000.00 May 09 2025 August 24 2025 No
Jiangsu Huaruipin September 28
Technology Co. Ltd. 8000000.00 2024 May 8 2025 Yes
1892025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The guarantee period is from the
effective date of the specific
business credit contract to three
Jiangsu Huaruipin 15000000.00 September 19 years after the expiration of the debtTechnology Co. Ltd. 2024 performance period stipulated in the No
specific business credit contract
(including early maturity of the
debt).Jiangsu Huaruipin
Technology Co. Ltd. 8000000.00 May 09 2025 August 24 2025 No
Zhejiang Huaxiao 2000000.00 September 28Technology Co. Ltd. 2024 May 8 2025 Yes
The debtor's debt performance
Zhejiang Huaxiao
Technology Co. Ltd. 20000000.00 June 27 2025
period stipulated in the master
contract shall expire two years from No
the due date.Zhejiang Huaxiao
Technology Co. Ltd. 2000000.00 May 09 2025 August 24 2025 No
The guarantee period is from the
effective date of the specific
business credit contract to three
Xi'an Dahua Zhilian 20000000.00 September 19 years after the expiration of the debtTechnology Co. Ltd. 2024 performance period stipulated in the No
specific business credit contract
(including early maturity of the
debt).Xi'an Dahua Zhilian
Technology Co. Ltd. 100000000.00
September 28
2024 May 8 2025 Yes
From the effective date of the
commitment letter to three years
after the maturity date of each loan
Xi'an Dahua Zhilian or other financing under the Credit
Technology Co. Ltd. 30000000.00 December 06 2024 Agreement or of the creditor's rights Nogranted by the Xi'an Branch of
China Merchants Bank or the
advance date of each advance
within the credit extension period;
Xi'an Dahua Zhilian
Technology Co. Ltd. 100000000.00 May 09 2025 August 24 2025 No
Zhengzhou Dahua
Zhian Information 30000000.00 September 28 May 8 2025 Yes
Technology Co. Ltd. 2024
Zhengzhou Dahua
Zhian Information 50000000.00 July 16 2024 June 09 2025 Yes
Technology Co. Ltd.Zhengzhou Dahua
Zhian Information 30000000.00 May 09 2025 August 24 2025 No
Technology Co. Ltd.Zhengzhou Dahua
Zhian Information 50000000.00 February 20 2025 June 09 2025 Yes
Technology Co. Ltd.Zhengzhou Dahua
Zhian Information 50000000.00 June 10 2025 June 9 2026 No
Technology Co. Ltd.Chengdu Dahua Zhian
Information Technology 80000000.00 July 16 2024 February 20 2025 Yes
Service Co. Ltd.Chengdu Dahua Zhian
Information Technology 100000000.00 February 20 2025 June 09 2025 Yes
Service Co. Ltd.Chengdu Dahua Zhian
Information Technology 100000000.00 June 09 2025 June 9 2026 No
Service Co. Ltd.Changsha Dahua
Technology Co. Ltd. 50000000.00
September 28
2024 May 8 2025 Yes
1902025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The guarantee period is from the
effective date of the specific
business credit contract to three
Changsha Dahua 20000000.00 September 19 years after the expiration of the debtTechnology Co. Ltd. 2024 performance period stipulated in the No
specific business credit contract
(including early maturity of the
debt).Changsha Dahua
Technology Co. Ltd. 50000000.00 May 09 2025 August 24 2025 No
Zhejiang Pixfra September 28
Technology Co. Ltd. 5000000.00 2024 May 8 2025 Yes
The warranty period shall
commence from the effective date of
Zhejiang Pixfra this contract and continue until three
Technology Co. Ltd. 20000000.00 February 21 2025 years after the expiration date of the Nodebt performance period under the
specific credit granted in the master
contract.Zhejiang Pixfra
Technology Co. Ltd. 5000000.00 May 09 2025 August 24 2025 No
Zhejiang Huafei
Intelligent Technology 2000000.00 September 28
CO. LTD. 2024
May 8 2025 Yes
Zhejiang Huafei
Intelligent Technology 10000000.00 May 09 2025 August 24 2025 No
CO. LTD.Zhejiang Huafei The debtor's debt performance
Intelligent Technology 15000000.00 June 27 2025 period stipulated in the master
CO. LTD. contract shall expire two years from
No
the due date.Zhejiang Huajian September 28
Technology Co. Ltd. 2000000.00 2024 May 8 2025 Yes
Zhejiang Huajian
Technology Co. Ltd. 2000000.00 May 09 2025 August 24 2025 No
Hangzhou Xiaohua 2000000.00 September 28Technology CO. LTD. 2024 May 8 2025 Yes
Hangzhou Xiaohua
Technology CO. LTD. 2000000.00 May 09 2025 August 24 2025 No
Zhejiang Dahua
Security Network September 28
Operation Service Co. 5000000.00 2024 May 8 2025 Yes
Ltd.Zhejiang Dahua
Security Network
Operation Service Co. 5000000.00 May 09 2025 August 24 2025 No
Ltd.Dahua Technology
France SAS (guarantee 145700.00 December 07 2023 August 31 2029 No
currency: EUR)
DAHUA EUROPE B.V.(guarantee currency: 1500000.00 March 04 2024 March 03 2025 Yes
USD)
DAHUA EUROPE B.V.(guarantee currency: 2500000.00 March 04 2025 March 3 2026 No
USD)
Dahua Technology Italy
S.R.L. (guarantee 500000.00 March 04 2024 March 03 2025 Yes
currency: USD)
Dahua Technology Italy
S.R.L. (guarantee 500000.00 March 04 2025 March 3 2026 No
currency: USD)
Zhejiang Huaruijie
Technology Co. Ltd. 2000000.00 May 09 2025 August 24 2025 No
1912025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The debtor's debt performance
Zhejiang Huaruijie 15000000.00 June 27 2025 period stipulated in the masterTechnology Co. Ltd. contract shall expire two years from No
the due date.From the effective date of this
commitment letter until the maturity
date of each loan or other financing
Zhejiang Huaruijie under the Credit Agreement or the
Technology Co. Ltd. 10000000.00 June 27 2025 maturity date of the accounts Noreceivable creditor's right assigned
to China Merchants Bank Hangzhou
Branch or three years after the date
of each advance whichever is later.Yibin Huahui
Information Technology 4754237.19 January 02 2025 December 31 2025 No
Co. Ltd.Dahua Technology
Singapore Pte. Ltd.(guarantee currency: 164177.83 April 30 2025 January 30 2028 No
SGD)
(4) Asset Transfer and Debt Restructuring of Related Parties
Unit: RMB
Amount
Content of the related - Amount Occurred in the
Related parties Occurred in the
party transaction Previous Period
Current Period
China Mobile Communications Group Procurement of fixed
149912.39
Co. Ltd. and its affiliates assets
Zhejiang Huachuang Vision Technology Procurement of fixed
22212.392654.86
Co. Ltd. assets
(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 8260691.89 8958819.43
(6) Other Related-party Transactions
During the reporting period pursuant to a resolution of the shareholders meeting of the Company's subsidiary Jiangsu
Huaruipin Technology Co. Ltd. Huaruipin's registered capital was reduced from RMB 50 million to RMB 25.5 million.Related parties Zhejiang Huashi Investment Management Co. Ltd. and Hangzhou Ruipin Enterprise Management
Partnership (Limited Partnership) exited their shareholdings in this capital reduction and no longer hold equity in
Huaruipin.
6. Receivables and Payables of the Related Parties
(1) Receivables
Unit: RMB
Closing Balance Opening Balance
Item Name Related parties
Book balance Bad debt Book balance Bad debt
1922025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
provision provision
Accounts
Intelbras S.A. 358063590.33 17903179.52 591354065.58 29567703.28
receivable
Zhejiang
Leapmotor
Accounts
Technology Co. 246348583.12 12445803.60 264675710.56 13357368.51
receivable
Ltd. and its
affiliates
China Mobile
Accounts Communications
165378398.7422333129.49153789928.6821308153.74
receivable Group Co. Ltd.and its affiliates
Ruicity Digital
Accounts Technology Co.
17586693.642987576.4217669453.041408576.57
receivable Ltd. And its
subsidiaries
Guangdong
Accounts Zhishi Digital
5316685.81265834.297550832.132958999.91
receivable Technology Co.Ltd.Zhejiang Hyxi
Accounts
Technology Co. 4035347.39 201767.37 2049201.90 102460.10
receivable
Ltd.Ningbo Cida
Yongshun
Accounts
Intelligent 3650710.01 206557.10 2642556.01 132127.80
receivable
Technology Co.Ltd.Hangzhou
Huacheng
Accounts Network
3566436.02178322.42
receivable Technology Co.Ltd. and its
subsidiaries
Dezhou Shuzhi
Accounts Information
2591724.80145187.496231962.01311598.10
receivable Technology Co.Ltd.Zhejiang
Huachuang
Accounts
Vision 2055084.77 319558.57 2602776.37 201453.69
receivable
Technology Co.Ltd.Rudong
Jintianhua
Accounts
Security 1854982.60 92749.13
receivable
Technology Co.Ltd.Zhejiang
Huanuokang
Accounts
Technology Co. 486665.79 24333.29 291210.78 14560.54
receivable
Ltd. and its
subsidiaries
Company A and
Accounts
other companies 315750.18 315506.97 315750.18 252847.40
receivable
under its control
Accounts Guangxi FTZ 31170.00 1558.50
1932025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
receivable Huaqin Wisdom
Park Technology
Research
Institute Co. Ltd.Hangzhou
Huacheng
Network
Prepayments 599970.36
Technology Co.Ltd. and its
subsidiaries
Company A and
Prepayments other companies 294536.66 747840.52
under its control
China Mobile
Communications
Prepayments 52527.59 376505.05
Group Co. Ltd.and its affiliates
China Mobile
Communications
Contract assets 4974576.83 876942.44 5745492.32 747625.61
Group Co. Ltd.and its affiliates
Ruicity Digital
Technology Co.Contract assets 157708.00 44920.20 155050.00 44122.80
Ltd. And its
subsidiaries
Zhejiang
Leapmotor
Contract assets Technology Co. 57000.00 2850.00
Ltd. and its
affiliates
Zhejiang Hyxi
Contract assets Technology Co. 90160.20 4508.01 90160.20 4508.01
Ltd.China Mobile
Other Communications
5207268.69523088.563199859.09573371.54
Receivables Group Co. Ltd.and its affiliates
Zhejiang
Leapmotor
Other
Technology Co. 44850.00 4485.00 244850.00 14485.00
Receivables
Ltd. and its
affiliates
1942025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening balance
Accounts Hangzhou Huacheng Network Technology
95434744.57
Payable Co. Ltd. and its subsidiaries
Accounts China Mobile Communications Group Co.
36541772.3736039551.28
Payable Ltd. and its affiliates
Accounts Zhejiang Huachuang Vision Technology Co.
5470181.819010272.07
Payable Ltd.Accounts Zhejiang Leapmotor Technology Co. Ltd.
3825665.361735191.79
Payable and its affiliates
Accounts Ruicity Digital Technology Co. Ltd. And its
2324793.292324793.29
Payable subsidiaries
Accounts Zhejiang Huanuokang Technology Co. Ltd.
51600.00107500.00
Payable and its subsidiaries
Contract China Mobile Communications Group Co.
12987661.219457312.09
liabilities Ltd. and its affiliates
Contract Zhejiang Leapmotor Technology Co. Ltd.
1129417.362375139.56
liabilities and its affiliates
Contract
Intelbras S.A. 591311.56 3033496.96
liabilities
Contract Hangzhou Huacheng Network Technology
448389.32
liabilities Co. Ltd. and its subsidiaries
Contract Huayan Capital (Hangzhou) Private Equity
107.10107.09
liabilities Fund Management Co. Ltd.China Mobile Communications Group Co.Other payables 18453361.89 10647937.20
Ltd. and its affiliates
Zhejiang Huashi Investment Management
Other payables 17867649.13
Co. Ltd.Ningbo Hualing Venture Capital Investment
Other payables 13727591.82 13727591.82
Partnership (Limited Partnership)
Hangzhou Ruipin Enterprise Management
Other payables 6043469.56
Partnership (Limited Partnership)
Ningbo Huayan Chuangxi Venture Capital
Other payables 4683641.32 4683641.32
Investment Partnership (Limited Partnership)
Zhejiang Leapmotor Technology Co. Ltd.Other payables 300000.00 300000.00
and its affiliates
Zhejiang Huachuang Vision Technology Co.Other payables 200816.89
Ltd.Zhejiang Huanuokang Technology Co. Ltd.Other payables 63070.00
and its subsidiaries
Zhejiang Leapmotor Technology Co. Ltd.Lease liabilities 5611414.10 6550386.06
and its affiliates
1952025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
XV. Share-based Payment
1. Overview of Share-based Payment
□Applicable □ Not applicable
Unit: RMB
Granted in the Unlocked in the
Category of Exercising in the current period Lapsed in the current periodcurrent period current period
granted recipients
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Senior
management
other
7757481.0015127087.9541022267.00224914368.45
management and
key business
personnel
Total 7757481.00 15127087.95 41022267.00 224914368.45
Stock options or other equity instruments outstanding at the end of the period
□Applicable □ Not applicable
The stock options outstanding at the end Other equity instruments outstanding at the
Category of granted of 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 15.015
10 days
and key business /share
personnel
Other instructions
(1) The company and its subsidiaries' employees hold equity in the subsidiary HuaRay Technology through capital
increase or direct or indirect equity transfer. Based on the fair value of HuaRay Technology's recently introduced
investors on the grant date share-based payment expenses of RMB 35942155.72 were recognized in this period.
(2) The company and its subsidiaries' employees hold equity in the subsidiary Huacheng Network through capital
increase or direct or indirect equity transfer. Based on the fair value of Huacheng Network recently introduced
investors on the grant date share-based payment expenses of RMB 10838268.39 were recognized in this period.
(3) The company and its subsidiaries' employees hold equity in the subsidiary Pixfra Technology through capital
increase or direct or indirect equity transfer. Based on the fair value of Pixfra Technology recently introduced investors
on the grant date share-based payment expenses of RMB 9369154.76 were recognized in this period.
1962025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
The accumulated amount of equity-settled share-based
212027209.86
payment counted into the capital reserve
Amount of equity-settled share-based payment confirmed
56149578.87
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 56149578.87
personnel
Total 56149578.87
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 June 30 2025 the company's pledge matters are as follows:
(1) On May 30 2025 the company renewed the Guarantee Contract for Pledge of Asset Pool numbered (33100000)
Zheshang Asset Pool Pledge (2025) No. 06877 with Zheshang Bank Co. Ltd. Hangzhou Branch (contract term from
May 30 2025 to May 30 2026). This contract provides a guarantee for the Asset Pool Business Cooperation
1972025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Agreement jointly signed by the company and its subsidiaries Zhejiang Dahua Vision Technology Co. Ltd. Zhejiang
Dahua System Engineering Co. Ltd. Zhejiang Fengshi Technology Co. Ltd. Zhejiang Dahua Zhilian Co. Ltd. and
Zheshang Bank Co. Ltd. Hangzhou Branch. The maximum financing quota of the pledged asset pool shall not exceed
RMB 2.5 billion.Under this notes receivable pool business as of June 30 2025 the company has RMB 5210123.71 of notes
receivable not yet due; the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. has RMB 675245252.98 of notes
receivable not yet due (of which RMB 200206003.81 are notes receivable from related parties within the consolidated
scope); the subsidiary Zhejiang Dahua System Engineering Co. Ltd. has RMB 950222.20 of notes receivable not yet
due; and the subsidiary Zhejiang Dahua Zhilian Co. Ltd. has RMB 455611407.66 of notes receivable not yet due (of
which RMB 250293856.42 are notes receivable from related parties within the consolidated scope).Under this pledge matter the company issued banker's acceptance notes totaling RMB 9213178.57; the subsidiary
Zhejiang Dahua Vision Technology Co. Ltd. issued banker's acceptance notes totaling RMB 130316943.14; the
subsidiary Zhejiang Dahua Zhilian Co. Ltd. issued banker's acceptance notes totaling RMB 215789222.35; and the
subsidiary Zhejiang Fengshi Technology Co. Ltd. issued banker's acceptance notes totaling RMB 149396619.69.
(2) On March 18 2025 the company signed the Credit Agreement for Notes Pool Business with China Merchants
Bank Co. Ltd. Hangzhou Branch contract number 571XY250318T000009 (contract term from March 19 2025 to
March 18 2028) agreeing on a special notes pool quota of RMB 1.5 billion. The quota is simultaneously allocated to
the subsidiaries Zhejiang Dahua Vision Technology Co. Ltd. Zhejiang Dahua System Engineering Co. Ltd. Zhejiang
Fengshi Technology Co. Ltd. Zhejiang Huafei Intelligent Technology Co. Ltd. Zhejiang Huayixin Technology Co.Ltd. Zhejiang Huaxiao Technology Co. Ltd. Zhejiang Huajian Technology Co. Ltd. Xi'an Dahua Zhilian Technology
Co. Ltd. Zhejiang Dahua Intelligent IoT Operation Service Co. Ltd. and Zhejiang Dahua Zhilian Co. Ltd.Under this notes receivable pool business as of June 30 2025 the company has RMB 209452863.80 of notes
receivable not yet due (of which RMB 200000000.00 are notes receivable from related parties within the consolidated
scope). The subsidiary Zhejiang Dahua Vision Technology Co. Ltd. has RMB 162437882.30 of notes receivable not
yet due (of which RMB 128000000.00 are notes receivable from related parties within the consolidated scope) and
the subsidiary Zhejiang Dahua System Engineering Co. Ltd. has RMB 1732973.00 of notes receivable not yet due.Under this pledge matter the banker's acceptance issued by the subsidiary Zhejiang Dahua System Engineering Co.Ltd. amounts to RMB 220192.49; the banker's acceptance issued by the subsidiary Zhejiang Fengshi Technology Co.Ltd. amounts to RMB 110369954.71; the banker's acceptance issued by the subsidiary Zhejiang Huajian Technology
Co. Ltd. amounts to RMB 467649.77; and the banker's acceptance issued by the subsidiary Zhejiang Huaxiao
Technology Co. Ltd. amounts to RMB 175522.90.
(3) 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.
1982025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Under this notes pool business as of June 30 2025 the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. has
RMB 36853836.94 of unexpired notes receivable pledged for issuing acceptance bills.Under the pledge the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. issued the bank acceptance bills in the
amount of RMB 0.
(4) 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 this notes receivable pool business as of June 30 2025 the company has RMB 413611700.86 of notes
receivable not yet matured (of which RMB 400000000.00 are notes from related parties within the consolidated
scope). The subsidiary Zhejiang Dahua Vision Technology Co. Ltd. has RMB 205386822.39 of notes receivable not
yet matured (of which RMB 162000000.00 are notes from related parties within the consolidated scope). The
subsidiary Changsha Dahua Technology Co. Ltd. has RMB 13634252.74 of notes receivable not yet matured and
the subsidiary Zhejiang PixFra Technology Co. Ltd. has RMB 1529767.50 of notes receivable not yet matured
pledged for issuing banker's acceptance.Under this pledge matter the company issued banker's acceptance drafts totaling RMB 2886755.49; the subsidiary
Zhejiang Dahua Vision Technology Co. Ltd. issued banker's acceptance drafts totaling RMB 420426404.52; the
subsidiary Jiangsu Huaruipin Technology Co. Ltd. issued banker's acceptance drafts totaling RMB 3313918.22; the
subsidiary Zhejiang PixFra Technology Co. Ltd. issued banker's acceptance drafts totaling RMB 320417.17; and the
subsidiary Changsha Dahua Technology Co. Ltd. issued banker's acceptance drafts totaling RMB 5917854.07.
(5) The subsidiary Zhejiang HuaRay Technology Co. Ltd. signed the Credit Agreement for Notes Pool Business with
the Hangzhou Branch of China Merchants Bank Co. Ltd. agreeing on a quota of 200 million RMB for the notes pool
business credit line. Under this notes pool business as of June 30 2025 the subsidiary Zhejiang HuaRay Technology
Co. Ltd. has RMB 21287711.65 of notes receivable not yet matured pledged for issuing acceptance bills. Under this
pledge matter the subsidiary Zhejiang HuaRay Technology Co. Ltd. issued a banker's acceptance in the amount of
RMB 19381124.81.
(6) The subsidiary Zhejiang HuaRay Technology Co. Ltd. signed the "Maximum Pledge Contract for Asset Pool
Business" with the Hangzhou Branch of CITIC Bank agreeing on a quota of RMB 290 million for the bill pool business.Under this notes pool business as of June 30 2025 the subsidiary Zhejiang HuaRay Technology Co. Ltd. has RMB
2963499.80 of notes receivable not yet matured pledged for issuing acceptance bills. Under this pledge matter the
subsidiary Zhejiang HuaRay Technology Co. Ltd. issued a banker's acceptance in the amount of RMB 2963499.80.
2. Contingencies
(1) The company has no significant contingent matters that need to be disclosed and should
also state this.No important contingent matter to be disclosed by the Company.
1992025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
XVII. Events after the Balance Sheet Date
1. Other Events after the Balance Sheet Date
The company held the 14th meeting of the 8th Board of Directors and the 10th meeting of the 8th Board of Supervisors
on July 15 2025 and reviewed and approved the "Proposal on Adjusting the Listing of the Controlling Subsidiary to
Overseas Markets." Approved the adjustment of the proposed listing venue for the controlling subsidiary Zhejiang
HuaRay Technology Co. Ltd. (hereinafter "HuaRay Technology") from a domestic stock exchange to The Stock
Exchange of Hong Kong Limited (hereinafter "SEHK").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 revenue Operating cost
Domestic 7553259609.99 4866160607.15
Overseas 7628070041.14 3998364911.54
Total 15181329651.13 8864525518.69
Product subsection
Unit: RMB
Item Operating revenue Operating cost
Smart IoT products and
solutions 11740932998.53 6589674115.39
Including: software business 767210890.41 252290758.12
Innovated businesses 3022964624.87 1919520426.76
Others 417432027.73 355330976.54
Total 15181329651.13 8864525518.69
2002025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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) 4239930965.68 3626113282.05
1 to 2 years 264216289.02 278227149.44
2 to 3 years 142671410.95 118907668.74
3 years or above 327178630.02 327790735.16
3 to 4 years 136828678.77 156150890.29
4 to 5 years 119820566.09 104733137.94
5 years or above 70529385.16 66906706.93
Total 4973997295.67 4351038835.39
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Amount Proportion Amount Accrued Amount Proportion Amount Accruedproportion proportion
Accounts
receivables
with the bad
debt
provision 39617555.25 0.80% 39617555.25 100.00% 37472879.25 0.86% 37472879.25 100.00%
accrued
based on
single item
Among
them:
Accounts
receivable
with
insignificant
single
amount but 39617555.25 0.80% 39617555.25 100.00% 37472879.25 0.86% 37472879.25 100.00%
accrued for
separate
provision of
bad debt
Accounts
receivables
with the bad
debt
provision 4934379740.42 99.20% 177591954.99 3.60% 4756787785.43 4313565956.14 99.14% 174068692.58 4.04% 4139497263.56
accrued
based on
combinations
Among
them:
Portfolio
1:
Consolidated 3673604574.17 73.86% 3673604574.17 3137038601.58 72.10% 3137038601.58
related party
portfolio
Portfolio 2:
Aging
Analysis 1260775166.25 25.35% 177591954.99 14.09% 1083183211.26 1176527354.56 27.04% 174068692.58 14.80% 1002458661.98
Method
Portfolio
Total 4973997295.67 100.00% 217209510.24 4756787785.43 4351038835.39 100.00% 211541571.83 4139497263.56
2012025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
By category of accrual for bad debt provision on individual items: accounts receivable with individually accrued bad
debt provisions where the individual amount is not material
Unit: RMB
Opening Balance Closing Balance
Name Reason forBad debt Bad debt Accrued
Book balance Book balance making bad
provision provision proportion
debt provision
Expected to
Customer 1 36675477.42 36675477.42 36675477.42 36675477.42 100.00% be unable to
recover
Other Expected to
sporadic 797401.83 797401.83 2942077.83 2942077.83 100.00% be unable to
customers recover
Total 37472879.25 37472879.25 39617555.25 39617555.25
Provision for bad debts by category name based on combination: aging analysis method combination
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 Year 850248898.02 42512444.89 5.00%
1 to 2 years 166598705.67 16659870.57 10.00%
2 to 3 years 115151822.12 34545546.63 30.00%
3 to 4 years 73710191.93 36855095.97 50.00%
4 to 5 years 40232757.92 32186206.34 80.00%
5 years or above 14832790.59 14832790.59 100.00%
Total 1260775166.25 177591954.99
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
Category Recovered or Closing BalanceBalance Accrued Written Off Others
Reversed
Bad debt
211541571.835869807.10201868.69217209510.24
provision
Total 211541571.83 5869807.10 201868.69 217209510.24
Significant amount of recovered or reversed bad debt provision in this period:
None
2022025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(4) Accounts Receivable Actually Written Off in This Period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 201868.69
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 of
As a percentage of
Closing balance of provision for bad
Accounts accounts
Closing balance of accounts debts on accounts
Name of Unit receivable closing receivables and
contract assets receivable and receivable and
balance total ending
contract assets impairment of
balance
contract assets
Customer 1 2973101560.83 2973101560.83 59.27%
Customer 2 249054234.45 249054234.45 4.97%
Customer 3 178990016.40 3675609.05 182665625.45 3.64% 28342422.26
Customer 4 123687013.39 123687013.39 2.47%
Customer 5 117566297.60 3498608.75 121064906.35 2.41% 12334616.61
Total 3642399122.67 7174217.80 3649573340.47 72.76% 40677038.87
2. Other Accounts Receivable
Unit: RMB
Item Closing Balance Opening Balance
Interest Receivable 669535.47
Other Receivables 13498578854.66 13384626871.41
Total 13499248390.13 13384626871.41
(1) Interest Receivable
1) Classification of Interest Receivable
Unit: RMB
Item Closing Balance Opening Balance
Demand deposit 669535.47
Total 669535.47
2032025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Other Receivables
1) Other Receivables Categorized by the Nature of the Funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Incomings and outgoings 13059281403.40 13273651357.52
Equity Transfer Fund 356078137.00
Employee home loan 47593739.00 50462191.00
Prepaid or advance expense 47400892.20 47488662.92
Deposits 44204646.37 45415624.12
Others 346005.46 5892194.26
Total 13554904823.43 13422910029.82
2) Disclosure by Aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 12856068351.88 12984563624.75
1 to 2 years 337653566.75 97135520.98
2 to 3 years 64263088.65 57731188.49
3 years or above 296919816.15 283479695.60
3 to 4 years 52246096.31 40037678.96
4 to 5 years 21772461.66 63092431.82
5 years or above 222901258.18 180349584.82
Total 13554904823.43 13422910029.82
3) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Amount Proportion Amount Accrued Amount Proportion Amount Accruedproportion proportion
Provision of
bad debts
based on 13554904823.43 100.00% 56325968.77 0.42% 13498578854.66 13422910029.82 100.00% 38283158.41 0.29% 13384626871.41
combination
Among
them:
Portfolio 1:
Related
Parties 13059281403.40 96.34% 13059281403.40 13273651357.52 98.89% 13273651357.52
Portfolio
Portfolio 2:
Aging
Analysis 495623420.03 3.66% 56325968.77 11.36% 439297451.26 149258672.30 1.11% 38283158.41 25.65% 110975513.89
Portfolio
Total 13554904823.43 100.00% 56325968.77 13498578854.66 13422910029.82 100.00% 38283158.41 13384626871.41
Provision for bad debts by category name based on combination: aging analysis method combination
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
418958791.0520947939.555.00%
year)
2042025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
1 to 2 years 24621725.36 2462172.54 10.00%
2 to 3 years 15639577.24 4691873.17 30.00%
3 to 4 years 13691760.63 6845880.32 50.00%
4 to 5 years 6667312.78 5333850.22 80.00%
5 years or above 16044252.97 16044252.97 100.00%
Total 495623420.03 56325968.77
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
20520608.0315465394.992297155.3938283158.41
January 1 2025
Balance as of
January 1 2025 in
this period
--Transfer to phase
-372794.22372794.22
two
--Transfer to phase
-24456.39-9683.0034139.39
three
Provisions of this
16549657.191190792.27322352.0018062801.46
period
Write off in this
12601.107390.0019991.10
period
Balance as of June
36673014.6117006697.382646256.7856325968.77
302025
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 orAccrued Others Balance
Reversed write-off
Bad debt
38283158.4118062801.4619991.1056325968.77
provision
Total 38283158.41 18062801.46 19991.10 56325968.77
Significant amount of recovered or reversed bad debt provision in this period:
None
2052025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
5) Accounts Receivable Actually Written Off in This Period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 19991.10
Write-off of other important receivables:
None
6) Other Receivables of the Top Five Closing Balances Collected by Debtors
Unit: RMB
As a percentage of Bad debt
Nature of the total other provision at
Name of Unit Closing Balance Aging
funds receivables at the the end of the
end of the period period
Within 1 year: RMB
8869636800.15;1–2
years: RMB 8473.50; 2–3
Incomings
Company 1 8870027742.54 years: RMB 219.61; 3–4 65.44%
and outgoings
years: RMB 381077.49;
Over 5 years: RMB
1171.79
Incomings
Company 2 2310822551.22 Within 1 year 17.05%
and outgoings
Within 1 year: RMB
606839706.88 1–2 years:
RMB 34681653.77 2–3
Incomings years: RMB 2900000.00
Company 3 688970175.25 5.08%
and outgoings 3–4 years: RMB
4700400.00 4–5 years:
RMB 5901013.50 over 5
years: RMB 33947401.10
Equity
Company 4 351248137.00 Within 1 year 2.59% 17562406.85
Transfer Fund
Incomings
Company 5 326607203.77 Within 1 year 2.41%
and outgoings
Total 12547675809.78 92.57% 17562406.85
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
7970195949.267970195949.268006238280.288006238280.28
subsidiaries
Investment in
affiliates and 148637856.51 148637856.51 156040573.47 156040573.47
joint ventures
Total 8118833805.77 8118833805.77 8162278853.75 8162278853.75
2062025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Investment in Subsidiaries
Unit: RMB
Opening Decrease/Increase in the current period Closing
The invested entity Opening balance (book balance of
balance of
Provision for Closing balance
value) provision for Investments Investment (book value) provision for
impairment increased decreased
impairment Others decline in
accrued value
Zhejiang Dahua System
Engineering Co. Ltd. 540661946.58 540661946.58
Zhejiang Dahua Security
Network Operation 102204947.57 102204947.57
Service Co. Ltd.Zhejiang Dahua Ju'an
Technology Co. Ltd. 5100000.00 5100000.00
Guangxi Dahua
Information Technology 6202355.68 6202355.68
Co. Ltd.Dahua Technology (HK)
Limited 669687347.00 669687347.00
Zhejiang Dahua Vision
Technology Co. Ltd. 1300743888.63 1300743888.63
Guangxi Dahua Yunlian
Information Technology 20002580.76 20002580.76
Co. Ltd.Hangzhou Xiaohua
Technology CO. LTD. 9318750.13 9318750.13
Zhejiang Dahua Zhilian
Co. Ltd. 1888395709.21 1888395709.21
Zhejiang Dahua
Investment Management 85284000.00 85284000.00
Co. Ltd.Guangxi Dahua
Zhicheng Co. Ltd. 71316248.90 71316248.90
Hangzhou Huacheng
Network Technology Co. 32361160.53 32361160.53
Ltd.Zhejiang HuaRay
Technology Co. Ltd. 40849216.39 40849216.39
Hangzhou Fuyang
Hua'ao Technology Co. 5124669.78 5124669.78
Ltd.Zhejiang Huafei
Intelligent Technology 2731123.94 2731123.94
CO. LTD.Guizhou Huayi Shixin
Technology Co. Ltd. 1800000.00 1800000.00
Zhejiang Fengshi
Technology Co. Ltd. 9060723.93 9060723.93
Dahua Technology
Holdings Limited 405100.00 405100.00
Zhejiang Huaxiao
Technology Co. Ltd. 39108952.26 39108952.26
Xi'an Dahua Zhilian
Technology Co. Ltd. 991047555.55 991047555.55
Jiangsu Huaruipin
Technology Co. Ltd. 18020674.13 18020674.13
Beijing Huayue
Shangcheng Information
Technology Service Co. 10874903.02 10874903.02
Ltd.Zhejiang Dahua Jinzhi
Technology Co. Ltd. 60000000.00 60000000.00
Shanghai Huashang
Chengyue Information
Technology Service Co. 2381088.27 2381088.27
Ltd.Zhejiang Zhoushan
Digital Development 18679176.00 18679176.00
Operation Co. Ltd.Guangxi Dahua
Technology Co. Ltd. 30000000.00 30000000.00
Zhejiang Huayixin
Technology Co. Ltd. 41052281.89 41052281.89
Zhejiang Huaruijie
Technology Co. Ltd. 53826622.38 53826622.38
Chengdu Dahua Zhilian
Information Technology 600690562.51 600690562.51
Co. Ltd.Chengdu Dahua Zhian
Information Technology 554700000.00 554700000.00
Service Co. Ltd.
2072025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Chengdu Huishan Smart
Network Technology Co. 5800000.00 5800000.00
Ltd.Zhejiang Huajian
Technology Co. Ltd. 24718313.82 24718313.82
Guangxi Huacheng
Technology Co. Ltd. 162313.73 162313.73
Hangzhou Huacheng
Software Co. Ltd. 3643145.79 3643145.79
Dahua Technology
Canada Inc. 72864.00 72864.00
Chengdu Dahua Zhishu
Information Technology 10000000.00 10000000.00
Service Co. Ltd.Zhengzhou Dahua Zhian
Information Technology 30000000.00 30000000.00
Co. Ltd.Dahua Technology
International Pte. Ltd. 1000000.00 1000000.00
Changsha Dahua
Technology Co. Ltd. 100023115.80 100023115.80
Zhejiang Pixfra
Technology Co. Ltd. 592904907.42 592904907.42
Zhejiang Dahua
Intelligent IoT Operation 15869118.53 15869118.53
Service Co. Ltd.Henan Dahua Zhilian
Information Technology 127933.88 127933.88
Co. Ltd.Yibin Huahui Information
Technology Co. Ltd. 23018.81 23018.81
Luoyang Dahua Zhiyu
Information Technology 10000000.00 10000000.00
Co. Ltd.Xi'an IMOU Zhilian
Technology Co. Ltd. 38024.70 38024.70
Guangdong Huaxiyue
Intelligent Technology 221883.68 221883.68
Co. Ltd.Total amount of other
companies 2055.08 2055.08
Total 8006238280.28 36042331.02 7970195949.26
(2) Investment in Affiliates and Joint Ventures
Unit: RMB
Decrease/Increase in the current period
Opening Cash Closing
balance Investment dividend balance
Opening of Investme profit and Adjustment s or ProvisionName of Closing of
Investees balance (book provision
Investment nt loss on other Other for balance (book provisio
value) for s decrease recognized comprehensiv changes in
profit
declared impairme
Other
value) n for
impairme increased d under the equity nt
s
decline
nt equity
e income to
method distribut
accrued in value
e
Ⅰ. Joint Ventures
II. Joint Venture
Ruicity
Digital -
Technolog 52803494.38 5188896.1 47614598.27
y Co. Ltd. 1
Ningbo
Huayan
Chuangxi
Venture
Capital
Investment 67626764.60 663296.52 68290061.12
Partnershi
p (Limited
Partnershi
p)
Dezhou
Shuzhi
Information 3598959.67 22114.93 3621074.60
Technolog
y Co. Ltd.Sichuan
Hengji
Anhua 960255.07 -147032.33 813222.74
Internet of
2082025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Things
Technolog
y Co. Ltd.Zhejiang
Huachuan -
g Vision 31051099.75 4290669.6 1538469.7
Technolog 9 2
28298899.78
y Co. Ltd.-
Subtotal 156040573.47 8941186.6
1538469.7148637856.5
821
Total 156040573.4
-
8941186.61538469.7148637856.57821
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 for the previous period (restated)
Item
Income Cost Income Cost
Main Business 4231497910.03 630547896.06 3299871504.63 562701515.21
Other businesses 37893241.88 18658702.11 32747331.95 17070472.33
Total 4269391151.91 649206598.17 3332618836.58 579771987.54
5. Investment Income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Long-term equity investment income
-8941186.68-11449222.10
measured by equity method
Investment income from disposal of
680790600.986812806.50
long-term equity investment
Investment income from trading
financial assets during the holding 45000.00 1243275.00
period
Investment income from disposal of
117213761.2615753424.73
trading financial assets
Investment income on other non-
current financial assets -49372.45 26592.41
during the holding period
Investment income from national
1203179.63308062.29
debt reverse repurchase
Profits from recognition termination of
-2513843.30-5686129.53
financial assets
Total 787748139.44 7008809.30
XX. Supplementary Information
1. Breakdown of Non-recurring Gains and Losses for This Period
2092025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
□Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains and losses on disposal of non-current assets 485365113.48
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 policies 194290442.32
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 liabilities 416914.56
excluding the effective hedging businesses related to the regular
business operation of the Company
Gains or losses from investment or asset management entrusted
189343772.69
to others
Reversal of the receivables depreciation reserves for separate
3036913.33
impairment test
Profits and losses on debt restructuring -7664077.54
Non-Operating Revenue and expenses other than the above 1405059.67
Other gains and losses items that fit the definition of non-
-7787446.32
recurring gains and losses
Less: Impact of income tax 170642154.85
Impact of minority equity (after tax) 8131198.43
Total 679633338.91 --
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 6.72% 0.76 0.76
the Company
Net profit attributable to
common shareholders of
the Company after 4.88% 0.55 0.55
deducting non-recurring
gains and losses
2102025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
2112025 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section IX Other Submitted Data
I. Other Major Social Security Issues
Whether the listed company or its subsidiaries are involved in other material social stability risks
□ Yes □ No □ Not applicable
Whether subjected to administrative penalties during the reporting period
□ Yes □ No □ Not applicable
II. Registration Form for Research Communication and Interview Activities During
the Reporting Period
□Applicable □ Not applicable
Main content of the Index of the basic
Reception Reception Reception
Reception Time Reception objects discussion and the information of
location Method target type
information provided research
Juchao
13 institutions Held discussions
Information
including Zhong Ou centered on the
February 28 Field Network "Investor
Company Institution Asset Management Company's large
2025 Investigation Relations Activity
and Minsheng models and cloud
Record Form from
Securities services
March 05 2025"
Juchao
109 institutions
Information
(including Bosera
Telephone 2024 performance Network "Investor
March 29 2025 Company Others Topsperity
communication briefing session Relations Activity
Securities) and 5
Record Form from
individual investors
March 29 2025"
Juchao
5 institutions
Q1 2025 Information
(including
Field performance Network "Investor
April 21 2025 Company Others Guosheng
Investigation communication Relations Activity
Securities) and 6
session Record Form from
individual investors
April 22 2025"
III. Capital Transactions Between the Listed Company and Controlling
Shareholders/Other Related Parties
□Applicable □ Not applicable
For details please refer to the "Summary of Non-operational Capital Occupancy and Other Related Fund Transactions
for the Interim Period" disclosed on the same date.Zhejiang Dahua Technology Co. Ltd.Legal representative: Fu Liquan
August 16 2025
212
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